Skype: The Picture Keeps Looking Worse

| About: eBay Inc. (EBAY)

eBay's Skype's growth in Q1 was solid, but nothing to crow about. Year-over-year revenue growth slowed from 166% in Q4 to 123% in Q1. User growth was also solid-but-decelerating, up 107% year over year.

All in all, the picture looks worse than it did last quarter. Skype now appears to be on track to do just under $400 million in revenue this year, down from about a $435 million trajectory last quarter.

No surprise, therefore, that Skype announced two mostly unrelated and unimpressive new-product initiatives last quarter: Skype Find and Skype Prime.

See my financial model for Skype.

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