Thanks to PayPal, eBay Reports 14 Percent Increase in Q3 Net Income

| About: eBay Inc. (EBAY)

By Leena Rao

eBay (NASDAQ:EBAY) just posted Q3 earnings today; reporting that revenue for the quarter increased 1% to $2.2 billion, or up 10% excluding Skype, compared to the same period of 2009 (eBay sold Skype in Q3 last year). The company’s non-GAAP net income for the quarter was $530.6 million, or $0.40 per diluted share, representing a 14% increase excluding Skype, compared to the same period of 2009.

According to the release, PayPal delivered strong third quarter performance seeing a growth in revenue, total payment volume and active registered accounts. PayPal ended the quarter with 90 million active accounts worldwide adding more than a million new accounts each month during the quarter. And for the fourth consecutive quarter, Merchant Services net total payment volume grew 40% or more year over year. The Marketplaces continues to grow; sold items were up almost 13% year over year and accelerated in the US and UK.

eBay’s president and CEO, John Donahoe stated in the release: “We delivered strong third quarter results, with great performance at PayPal and stable results at eBay…PayPal gained share globally and eBay continued to improve key metrics. Our company is strong and we are managing our global portfolio to balance strengths, challenges and opportunities, invest in growth and deliver consistent performance.”

In July, eBay has forecasted third-quarter profit of 35 cents to 37 cents per share on $2.13 billion to $2.18 billion in revenue. Analysts expected earnings to come in at $2.18 billion in revenue or 37 cents per share.

Original post