EBay beats Street on Q3 revenue; lowers full-year forecast

San Jose, Calif. -– EBay Inc. beat Wall Street estimates with its third quarter revenue results but lowered its forecast for full-year sales due to the impact of a May 2014 security breach. Net income fell 2% to $673 million from $689 million in the third quarter of fiscal 2013.



Net revenue climbed 12% to $4.35 billion from $3.89 billion. Mobile activity helped drive revenue, with mobile downloads since inception exceeding 282 million, attracting 7.3 million new customers in the quarter. Mobile payment volume grew 72% to $12 billion, representing 20% of total payment volume.



Active accounts acquired on mobile were 2.9 million.



Revenue in the PayPal division, which will be spun off in 2015, spurred much of the company’s total net revue growth. PayPal revenue grew 20% to $1.95 billion from $1.62 billion. PayPal gained 4.4 million new active registered accounts to end the quarter at 157 million, up 14%.



However, EBay forecast full-year sales of $4.85 billion to $4.95 billion, below Wall Street expectations of $5.16 billion. The company said that holiday sales will be negatively impacted by lingering effects of its data breach, which will affect total performance for the year. One hundred million of EBay Marketplace’s 152 million users have changed their passwords since the breach, and the company is increasing its marketing and advertising budget and also spending more on driving traffic from search in an effort to regain business.