Summary
eBay Inc. reported solid financial results for the second quarter and first half of 2013, demonstrating robust revenue growth driven by its Marketplaces and Payments segments. Net revenues increased by 14% to $3.9 billion for the quarter and by 15% to $7.6 billion for the first half, year-over-year. The company's Payments segment, notably PayPal, showed strong growth with a 20% revenue increase in the quarter, driven by a 24% rise in total net TPV. The Marketplaces segment also saw a healthy 10% revenue increase, supported by a 13% growth in GMV excluding vehicles. Despite strong top-line performance, operating margin saw a slight decrease to 19% in the quarter due to faster growth in the lower-margin Payments segment and a favorable tax dispute resolution in the prior year's quarter. Diluted earnings per share decreased to $0.49 from $0.53, impacted by a gain from a business divestiture in the prior year and higher interest expenses. However, the company generated strong operating cash flow of $1.0 billion for the quarter, an increase from $768 million in the prior year, indicating solid operational cash generation. The company also continued its share repurchase program, buying back approximately $942 million in the first half of the year.
Financial Highlights
50 data points| Revenue | $3.88B |
| Cost of Revenue | $1.21B |
| Gross Profit | $2.67B |
| R&D Expenses | $451.00M |
| Operating Expenses | $1.92B |
| Operating Income | $750.00M |
| Net Income | $640.00M |
| EPS (Basic) | $0.49 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 1.30B |
| Shares Outstanding (Diluted) | 1.31B |
Key Highlights
- 1Total net revenues increased 14% year-over-year to $3.9 billion for the three months ended June 30, 2013, and 15% to $7.6 billion for the six months ended June 30, 2013.
- 2The Payments segment revenue grew 20% year-over-year, driven by a 24% increase in total net TPV.
- 3The Marketplaces segment revenue grew 10% year-over-year, supported by a 13% increase in GMV excluding vehicles.
- 4Operating income for the three months ended June 30, 2013, was $750 million, an increase from $695 million in the prior year.
- 5Diluted earnings per share for the three months ended June 30, 2013, were $0.49, a decrease from $0.53 in the prior year, influenced by a prior year gain on divestiture.
- 6Cash flow from operating activities for the six months ended June 30, 2013, was $1.9 billion, up from $1.3 billion in the prior year.
- 7The company repurchased approximately $942 million of its common stock during the six months ended June 30, 2013.