eBay Inc. reported financial results yesterday for its second quarter ended June 30, 2002. As announced on July 8, eBay reported consolidated net revenues totaling $266.3 million. Consolidated net income for the quarter was a record $54.3 million. eBay's pro forma consolidated net income, excluding certain items, was a record $54.0 million.

Online net transaction revenues in Q2-02 increased 66% year-over-year to a record $235.3 million, driven by 48% year-over-year transaction revenue growth in the U.S. and 152% year-over-year growth internationally. This transaction revenue growth was partially offset by an 11% year-over-year decrease in third party advertising revenues. As a result, consolidated Q2-02 net revenues increased 47% over the $180.9 million generated in Q2-01.

eBay users transacted a record $3.40 billion in gross merchandise sales, or GMS, during the second quarter, representing a 51% year-over-year increase from Q2-01. eBay hosted a record 145.2 million listings during the quarter, representing a 47% year-over-year increase from the 98.7 million reported in Q2-01.

eBay achieved double-digit year-over-year growth rates in gross merchandise sales across virtually all top-level categories. Globally, eBay's ten largest categories in Q2-02 were:

• eBay Motors
• Computers
• Consumer Electronics
• Book/Movies/Music
• Sports
• Collectibles
• Toys
• Clothing & Accessories
• Jewelry & Gemstones
• Photo

In a conference call announcing the results, President and CEO Meg Whitman stated the following:

"Our collectible categories continue to show growth as well. Gross merchandise sales in coins, for example, jumped 47% year-over-year as a result of our efforts to expand the category. In the US, we have taken advantage of our site-wide trading assistants program — made up of experienced users ready to help would-be sellers — to reach out to traditional coin retailers who are unfamiliar with selling online. In addition, we have staged promotions that tap into popular trends, such as the unveiling of the euro and the release of new American quarters, to help bring more mainstream buyers to the category."

eBay's fixed price offerings contributed more than 19% of total gross merchandise sales during Q2-02. More than 29,000 sellers own eBay Stores.

Based on the company's most recent performance, eBay now expects that net revenues for Q3-02 could range between $278 and $281 million, Q3-02 pro forma earnings per diluted share will approximate $0.19, and GAAP earnings per diluted share will also approximate $0.19.

For the full year 2002, eBay continues to expect that net revenues will approximate $1.1 billion. eBay currently believes that 2003 net revenues could range between $1.50 billion and $1.55 billion, including an expected 45% year-over-year growth rate in online transaction revenues from anticipated 2002 levels, as well as the company's current expectations for third party advertising, end-to-end service and offline revenues.