PayPal and Amazon reported financial results for the second quarter of 2002. PayPal revenue was up 173% for the quarter compared to the same quarter last year. Amazon reported operating profit of $1 million, compared with a loss of $140 million a year ago. Amazon had a net loss of $94 million compared with a second quarter 2001 net loss of $168 million.
PayPal reported that revenues for the second quarter of 2002 totaled $53.8 million, an increase of 173% over the $19.7 million in revenues in the second quarter of 2001. PayPal reported $529,000 of net income for the quarter, compared to a net loss of $27.7 million for the same period last year. For the quarter, PayPal's pro forma after-tax net income, which excludes non-cash expenses related to stock-based compensation and non-recurring charges resulting from PayPal's exiting of leased facilities in Palo Alto, California, amounted to $5.7 million, compared with a pro forma net loss of $7.2 million for the second quarter of 2001.
For the second quarter of 2002, the payment volume sent to business and premier accounts, which PayPal refers to as Gross Merchant Sales (GMS), amounted to 90% of total payment volume. GMS increased to $1.45 billion in the second quarter of 2002, representing 10% growth from $1.31 billion in the first quarter of 2002 and 119% growth from $663 million in the second quarter of 2001.
Account growth continued to drive increased payment volume. In the second quarter of 2002, registered accounts grew by 2.5 million to 17.8 million, an average of 27,000 new accounts per day. This represents a decline of 3% from the average daily account growth of 28,000 in the first quarter of 2002, and is consistent with the company's experience in 2001, when average daily account growth declined 6% from the first to second quarter. In the second quarter of 2002, business and premier accounts grew by 480,000 to a total of 3.7 million, and international accounts grew by 399,000 to a total of 1.8 million.
Amazon.com also announced financial results yesterday for its second quarter ended June 30, 2002. Net sales were $806 million, compared with $668 million in the second quarter 2001, an increase of 21%.
Operating profit was $1 million, compared with a loss of $140 million a year ago. Pro forma operating profit was $26 million, or 3% of net sales, exceeding the Company's guidance of $5 million to $15 million. This compares with
a pro forma operating loss of $28 million in the second quarter 2001, an improvement of $54 million.
Net loss was $94 million, or $0.25 per share, compared with a second quarter 2001 net loss of $168 million, or
$0.47 per share. Pro forma net loss, which includes interest expense, was $4 million, or $0.01 per share, compared
with a pro forma net loss of $58 million, or $0.16 per share, in the second quarter 2001.
"I'm especially pleased with the outstanding job our U.S. Books team is doing - posting another quarter of 20%
year-over-year book unit growth, up from 15% growth this past fourth quarter," said Jeff Bezos, founder and CEO
of Amazon.com.
Books unit growth was 20%. Books, Music and DVD/Video segment sales grew 6% to $412 million. Pro forma
operating profit grew 26% to $49 million, a record 12% of Books, Music and DVD/Video sales.
