EBay revenue up 25%, driven by PayPal

Share this content:

EBay's second-quarter revenue increased 25% to $2.8 billion, compared with the second quarter of 2010. The San Jose, Calif.-based company's net income decreased 31% year-over-year to $283.4 million.

Operating expenses increased 36% to $1.47 billion in the quarter, compared with Q2 2010, driven mostly by lingering expenses from the GSI Commerce, Zong and Magento acquisitions. Sales and marketing expenses grew by 27% to $607.9 million, compared with the same quarter of last year.

“Q2 was a strong quarter for eBay,” said John Donahoe, president of the company. “We intend to compete and lead in the new retail global environment…In this new retail world, consumers expect a seamless experience across multiple channels.”

PayPal revenue grew 31% in the quarter to $1.07 billion, compared with last year. The payments business ended the quarter with more than 100.3 million active registered accounts, a 15% increase compared with the same period of last year. PayPal's net total payment volume grew 34% to $28.7 billion in the second quarter of 2011, compared with the prior year.

“PayPal hit two milestones. It recorded its first billion-dollar revenue quarter and 100 million active users,” said Donahoe. “PayPal provides a powerful foundation for attractive sustainable growth. While others talk about the power of mobile payments, PayPal delivers. We expect mobile payments volume to exceed $3 billion this year.”

EBay agreed to acquire mobile payments service provider Zong for about $240 million in cash on July 7. It also agreed to acquire Magento, an e-commerce software platform provider.

The company's GSI Commerce acquisition closed June 17. The new division contributed $23.8 million to eBay's revenue for the period ending June 30. GSI Commerce named Tobias Hartmann CEO of its global operations organization on June 1.

close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above