EBay‘s first-quarter revenue increased 16% to $2.5 billion, compared with the first quarter of 2010. Net income grew 12% in the period to $475.9 million year-over-year.
However, the San Jose, Calif.-based company’s Q1 operating expenses grew to $1.25 billion, a 13.6% increase compared with Q1 2010. Sales and marketing expenses in Q1 grew to $533 million, a 19.5% increase year-over-year.
“The lines between online and offline commerce are blurring, requiring merchants to adjust to a new commerce,” said CEO John Donahoe, on an earnings call. “In this new retail environment we’re playing offense. We hit 2011 running.”
The company said its PayPal business grew the number of active registered accounts by 16% year-over-year in Q1, ending the quarter with 97.7 million registered accounts. PayPal’s net total payment volume grew 28% to $27.4 billion in the first quarter of 2011 compared to the first quarter of last year.
“PayPal drove strong growth,” said Donahoe.
US Q1 net revenue grew to $1.14 billion, a 14% increase compared with the same quarter of 2010. International Q1 net revenues increased 18% to $1.4 billion compared with Q1 2010.
Donahoe referenced eBay’s recent acquisition of GSI Commerce, saying it “extends our commerce capabilities and deepens our relationships with large merchants.” The acquisition is expected to close in the third quarter.