PayPal drives up 1Q revenue at eBay

SAN JOSE, Calif. -- First quarter revenue at eBay rose 16% to $2.5 billion, compared with the same period of 2010. The company recorded first quarter net income on a GAAP basis of $475.9 million, or 36 cents per diluted share, and non-GAAP net income of $619 million, or 47 cents per diluted share, representing a 12% increase for each compared with the same period of 2010. The first quarter increase in non-GAAP earnings per diluted share was due primarily to solid top line growth and a lower effective tax rate.

eBay reported that its Marketplaces business continued to deliver improved performance during the first quarter of 2011. Gross merchandise volume excluding vehicles (GMV), increased by 8% year over year to $14.5 billion, reflecting progress against underlying customer metrics focused on trust, value and selection. GMV in the United States increased 10% year over year, the second consecutive quarter of acceleration. International GMV increased 8% year over year, driven by continued strength in Europe, partially offset by weakness in Korea.

PayPal grew active registered accounts 16% year over year, ending the quarter with 97.7 million and adding approximately one million active accounts per month for the sixth consecutive quarter, eBay reported. PayPal’s net total payment volume grew 28% to $27.4 billion in the first quarter of 2011 compared with the same period of last year, driven primarily by strong 38% year-over-year growth in its Merchant Services business across global markets, increased merchant adoption and greater usage by customers. PayPal continued to deliver solid growth in mobile payments and digital goods, with increased usage of Mobile Express Checkout, PayPal Send Money apps and the newly-launched PayPal for Digital Goods service.

“In the first quarter, PayPal continued to drive strong growth globally, eBay sharply accelerated growth in the U.S. and we announced several acquisitions that we believe will enhance our leadership and innovation in commerce and payments. The year is off to a strong start,” said eBay Inc. president and CEO John Donahoe.

For the second quarter of 2011, eBay said it expects net revenues in the range of $2.6 to $2.7 billion with GAAP earnings per diluted share in the range of 36 cents to 37 cents and non-GAAP earnings per diluted share in the range of 45 cents to 46 cents.

For the full year 2011, eBay said it now expects net revenues in the range of $10.6 to $10.9 billion with GAAP earnings per diluted share in the range of $1.53 to $1.58 and non-GAAP earnings per diluted share in the range of $1.93 to $1.97.