Auctionbytes-NewsFlash, Number 1068 - July 21, 2005 - ISSN 1539-5065      Previous Story | | Next Story

By Ina Steiner
AuctionBytes.com
July 21, 2005
Reading AuctionBytes: eBay Announces Second Quarter 2005 Financial Results

eBay Inc. reported financial results for its quarter ended June 30, 2005. eBay reported record consolidated Q2-05 net revenues of $1.086 billion, up 40% year over year; record operating income of $379.0 million, up 49% year over year, representing a 35% operating margin; and record pro forma operating income of $406.4 million, up 47% year over year, representing a 37% pro forma operating margin. Consolidated net income in Q2-05 was a record $291.6 million. These results exceeded the high end of the company's guidance of $1.050 billion for net revenues, and exceeded the company's guidance of $0.16 for earnings per diluted share, and $0.18 for pro forma earnings per diluted share.

"eBay achieved remarkable results in Q2," said Meg Whitman, President and CEO of eBay. "Excellent momentum in the US and Germany, as well as at PayPal, all helped deliver an impressive jump in revenues and profit."

Gross profit was $894.5 million, or 82% of net revenues, higher than the 81% reported in Q2-04. The percentage increase was primarily the result of an increase in our Payments segment gross margin.

Key Financial and Operating Metrics

• Consolidated net revenues totaled a record $1.086 billion in Q2-05, which represented an increase of 40% from the $773.4 million reported in Q2-04.
  
  
• U.S. Marketplace net revenues totaled $423.6 million in Q2-05, representing 27% year-over-year growth.
  
  
• International Marketplace net revenues totaled $418.8 million in Q2-05, representing 51% year-over-year growth.
  
  
• Payments net revenues totaled $243.9 million in Q2-05, representing 51% year-over-year growth.
  
  
• Cumulative confirmed registered users at the end of Q2-05 totaled 157.3 million, representing a 38% increase over the 114.0 million users reported at the end of Q2-04.
  
  
• Active users, the number of users on the eBay platform who bid, bought, or listed an item within the previous 12-month period, increased to a record 64.6 million in Q2-05, a 34% increase over the 48.0 million active users reported in the same period a year ago.
  
  
• New listings totaled a record 440.1 million in Q2-05, 32% higher than the 332.3 million new listings reported in Q2-04.
  
  
• Gross Merchandise Volume, the total value of all successfully closed listings on eBay's trading platforms, was a record $10.9 billion, representing a 36% year-over-year increase from the $8.0 billion reported in Q2-04.
  
  
• PayPal's business had 78.9 million total accounts at the end of Q2-05, a 56% increase from the 50.4 million reported in Q2-04. Total payments accounts represents the cumulative total of all accounts opened, excluding accounts that have been closed or locked, and users that made payments with PayPal but have not registered.
  
  
• Total Payment Volume (TPV), the dollar volume of payments initiated through the PayPal system, was a record $6.5 billion in Q2-05, a 49% increase from the $4.4 billion reported in Q2-04.
  
  
• GAAP operating income increased 49% year over year to $379.0 million, or 35% of net revenues.
  
  
• Pro forma operating income increased 47% year over year to $406.4 million, or 37% of net revenues. Pro forma operating income represents GAAP operating income adjusted to exclude certain items, primarily stock based compensation expense and related payroll taxes and amortization of acquired intangible assets.
  
  
• GAAP net income increased 53% year over year to $291.6 million, or $0.21 per diluted share.
  
  
• Pro forma net income increased 55% year over year to $307.2 million, or $0.22 per diluted share. Pro forma net income represents GAAP net income adjusted to exclude certain items, primarily stock based compensation expense and related payroll taxes, amortization of acquired intangible assets and income taxes related to these items.
  
  
• Operating cash flows totaled $496.6 million. Free cash flows, representing operating cash flows less capital expenditures of $90.5 million, totaled $406.1 million.
  
  
• Key Category Performance - Based on Q2-05 GMV, the following categories delivered $1 billion or more in worldwide annualized GMV: eBay Motors at $14.3 billion; Clothing & Accessories at $3.3 billion; Consumer Electronics at $3.2 billion; Computers at $2.9 billion; Home & Garden at $2.5 billion; Books/Movies/Music at $2.4 billion; Sports at $2.1 billion; Collectibles at $2.0 billion; Toys at $1.6 billion; Jewelry & Watches at $1.5 billion; Business & Industrial at $1.5 billion; and Cameras & Photo at $1.3 billion. Note For further detail on the eBay Marketplace's current annualized $1 billion categories, including trended data, please see the metrics section on eBay's Investor Relations website at http://investor.ebay.com/fundamentals.cfm.
  
  
• eBay's fixed price trading contributed approximately $3.2 billion or 29% of total GMV during Q2-05, primarily from eBay's "Buy It Now" feature.
  
  
• At the end of Q2-05, eBay hosted approximately 299,000 stores worldwide, with approximately 173,000 stores hosted on the U.S. site.
  
  

The full press release with more details can be found on eBay's site in the press release section.

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