eBay enables more commerce in Q3
Enabled commerce volume at eBay surged 27% in the company’s third quarter with cross border trade showing particular strength, but it wasn’t enough to prevent the company from revising downward its full year outlook.
The global commerce platform and payments company said revenues for the period ended September 30, increased 12% to $4.4 billion while earnings totaled $673 million, or 54 cents a share, compared to profits of $689 million, or 53 cents a share the prior year. EBay said the volume of commerce it enabled during the period increased 27% to $63 billion with cross border trade also growing 27% to now represent nearly a fourth of the total volume the company enables on its platform. Growing even faster was the volume of commerce enabled via mobile devices which advanced 67% to $14 billion.
“Rapidly changing competitive environments in commerce and payments underscore the opportunities for eBay and PayPal, and highlight how each business will benefit from the focus and agility of being an independent company,” said eBay president and CEO John Donahoe. “PayPal had another strong quarter, and its mobile payments leadership and momentum continued with mobile volume up 72% to $12 billion. PayPal is on track to process one billion mobile transactions in 2014. And eBay continues to focus on enhancing its competitive position, improving the experience for buyers and sellers and investing in consumer engagement. As we prepare to separate eBay and PayPal in 2015, our teams are focused on strong execution to ensure each business is set up for long-term success.”
PayPal net total payment volume grew 29% with merchant services volume up 37% and on-eBay volume up 9%. Revenue grew to $2 billion as PayPal gained 4.4 million new active registered accounts to end the quarter at 157 million, up 14%.
In the fourth quarter, eBay said it expects revenues to range between $4.85 billion and $4.95 billion and reduced its full year revenue guidance to a range of $17.85 billion and $17.95 billion.