Summary
eBay Inc.'s first quarter 2010 report shows continued growth in net revenues, reaching $2.2 billion, a 9% increase year-over-year, primarily driven by strong performance in its Marketplaces and Payments segments. The company also saw an improvement in its operating margin to 22%, up from 21% in the prior year, attributed to productivity gains and lower amortization costs. Diluted earnings per share increased to $0.30. Key operational highlights include significant growth in Gross Merchandise Volume (GMV) for Marketplaces, up 20%, and a substantial 35% increase in Total Payment Volume (TPV) for the Payments segment. The company continues to manage its operations efficiently, with a focus on reallocating resources to customer-centric initiatives, while also facing headwinds from foreign currency fluctuations, particularly a strengthening U.S. dollar. Despite a decrease in cash flow from operations compared to the prior year, largely due to tax-related payments from a legal entity restructuring, eBay maintains a strong liquidity position.
Financial Highlights
49 data points| Revenue | $2.20B |
| Cost of Revenue | $606.55M |
| Gross Profit | $1.59B |
| R&D Expenses | $210.14M |
| Operating Expenses | $1.10B |
| Operating Income | $488.61M |
| Net Income | $397.65M |
| EPS (Basic) | $0.31 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 1.30B |
| Shares Outstanding (Diluted) | 1.33B |
Key Highlights
- 1Net revenues increased by 9% to $2.2 billion in Q1 2010 compared to Q1 2009.
- 2Operating margin improved to 22% from 21% year-over-year.
- 3Diluted earnings per share rose to $0.30 from $0.28 in the prior year's quarter.
- 4Marketplaces GMV (Gross Merchandise Volume) grew by 20% year-over-year.
- 5Payments segment saw a 35% increase in TPV (Total Payment Volume).
- 6The company generated $418.3 million in cash flow from operating activities.
- 7eBay completed the sale of Skype in November 2009, and its results are no longer consolidated in 2010.