eBay use continues to grow around the world, and eBay's first-quarter financial results exceeded the company's highest expectations, according to eBay President and CEO Meg Whitman. "Our continuing momentum demonstrates yet again the power of eBay's community and reinforces our confidence in the long-term potential of our business," she said.

Yesterday eBay reported financial results for its quarter ended March 31, 2004. Gross profit was a record $621.9 million. Gross profit as a percentage of net revenues was 82%, a percentage point improvement from the 81% level reported in Q1-03, primarily reflecting improved cost leverage and the continuing effects of cost savings from eBay Picture Services, launched in Q4-03.

eBay U.S. net transaction revenues totaled $326.2 million in Q1-04, reflecting 39% year-over-year growth, while eBay international net transaction revenues totaled $257.1 million in Q1-04, representing 87% year-over-year growth. Payments net transaction revenues totaled $155.5 million in Q1-04, representing 67% year-over-year growth.

eBay said the February increase in seller fees contributed $7 million to eBay's revenues for the first quarter.

Gross Merchandise Sales (GMS), the total value of items sold, was a record $8.0 billion, representing a 51% year-over-year increase from the $5.3 billion reported in Q1-03. Listings totaled a record 327.7 million in Q1-04, 49% higher than the 219.7 million listings reported in Q1-03.

eBay said cumulative confirmed registered users at the end of Q1-04 totaled a record 104.8 million, representing a 52% increase over the 68.8 million users reported at the end of Q1-03. Active users, the number of users on the eBay platform who bid, bought or listed over the trailing 12 months, increased to 45.1 million, a 45% increase over the 31.1 million active users reported in the same period a year ago. (Note these numbers represent the number of User IDs, not unique users; many eBay members register multiple IDs.)

Key Category Performance
eBay has twelve categories that deliver $1 billion or more in worldwide annualized GMS based on Q1-04 GMS:
eBay Motors at $8.7 billion;
Computers at $2.6 billion;
Consumer Electronics at $2.5 billion;
Books/Movies/Music at $2.4 billion;
Clothing and Accessories at $2.2 billion;
Sports at $2.0 billion;
Collectibles at $1.6 billion;
Home & Garden at $1.6 billion;
Toys at $1.5 billion;
Jewelry & Gemstones at $1.3 billion;
Cameras & Photo at $1.2 billion;
Business & Industrial at $1.1 billion.

eBay's fixed price trading contributed approximately $2.2 billion or 28% of total GMS during Q1-04, primarily from eBay's "Buy It Now" feature. eBay hosts approximately 146,000 stores worldwide. In Q1-04, the company initiated store fees for the first time for certain of its international Web sites.

eBay's international performance was of great interest to financial analysts participating in eBay's Q1 2004 earnings call Wednesday. While praising the opportunity China represents to eBay's growth, eBay executives were careful to stress it was long-term growth they foresee in Asia.

For the remainder of 2004, eBay plans to invest aggressively in China, product development, site infrastructure, sales and marketing, and the international expansion of PayPal.

The company now expects that consolidated net revenues for 2004 could be as high as $3.15 billion, $150 million higher than the company's most recent guidance. This improved outlook derives from the strength of eBay's U.S., International and Payments businesses.

http://investor.ebay.com/financial.cfm