eBay (EBAY) Tops Q3 EPS by 2c; Guides Q4 EPS to Low Side
eBay (NASDAQ: EBAY) reported Q3 EPS of $0.69, $0.02 better than the analyst estimate of $0.67. Revenue for the quarter came in at $4.35 billion versus the consensus estimate of $4.37 billion.
eBay Inc.’s enabled commerce volume (ECV) increased 27% in the third quarter to $63 billion. Mobile ECV advanced 67% to $14 billion representing 21% of volume. eBay Inc. mobile downloads since inception exceeded 282 million, attracting 7.3 million new customers in the quarter. Cross-border trade grew 27%, representing $14 billion, or 22%, of total company ECV.
“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 Inc. President and CEO John Donahoe. “PayPal had another strong quarter, and its mobile payments leadership and momentum continued with mobile volume up 72 percent to $12 billion. PayPal is on track to process 1 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 (TPV) grew 29% with Merchant Services volume up 37% and on-eBay volume up 9%. Revenue grew to $2.0 billion. PayPal gained 4.4 million new active registered accounts to end the quarter at 157 million, up 14%. Global on-eBay penetration increased to 80.5%. Mobile payment volume grew 72% to $12 billion, representing 20% of TPV. Active accounts acquired on mobile were 2.9 million. Newly rebranded PayPal Credit grew 29%. PayPal also rolled out new product innovations like its One Touch offering making it simpler and easier to check-out and pay with PayPal.
eBay Marketplaces gross merchandise volume (GMV) grew 9%, with the U.S. up 7% and international up 11%. Revenue grew to $2.2 billion. Marketplaces gained 3.4 million new buyers to end the quarter with 152 million active buyers, up 13%. The selection of items available on Marketplaces grew to over 800 million listings, including both platform and non-platform offerings, reflecting the success of improved selling initiatives, particularly on mobile. Marketplaces mobile volume grew 41% to $7 billion. Fixed price sales grew 15% and now represent 79% of the total sales on the platform.
eBay Enterprise gross merchandise sales (GMS) grew 14%. Revenue grew to $259 million. Enterprise enabled its clients to grow same-store sales 13%.
eBay sees Q4 2014 EPS of $0.88 - $$0.91, versus the consensus of $0.91. eBay sees Q4 2014 revenue of $4.85 - $4.95 billion, versus the consensus of $5.16 billion.
eBay sees FY2014 revenue of $17.85 - $17.95 billion, versus the consensus of $18.15 billion. The company also expects FY14 EPS to the low-end of its expected $2.95 - $3 range. The Street is looking for FY14 EPS of $2.97.
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