eBay Inc.
Jan 18, 2012
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eBay Inc. Reports Strong Fourth Quarter and Full Year 2011 Results

Net Income up Double Digits in 2011 on Record Revenue

eBay Tightens Range on Three-Year Outlook Reflecting Increased Confidence

SAN JOSE, Calif.--(BUSINESS WIRE)-- eBay Inc., a global commerce platform and payments leader (NASDAQ:EBAY), today reported that revenue for the fourth quarter ended December 31, 2011, increased 35% to $3.4 billion, compared to the same period of 2010. The company reported fourth quarter net income on a GAAP basis of $2.0 billion, or $1.51 per diluted share, and non-GAAP net income of $788.6 million, or $0.60 per diluted share. The year-over-year increase in the fourth quarter GAAP earnings per diluted share was driven primarily by a gain on the sale of the company's remaining investment in Skype. The year-over-year increase in the fourth quarter non-GAAP earnings per diluted share was driven primarily by strong top-line growth and improved productivity partially offset by a higher tax rate.

For the full year, revenue increased 27% to $11.7 billion, compared to 2010. The company generated net income on a GAAP basis of $3.2 billion, or $2.46 per diluted share, and non-GAAP net income of $2.7 billion, or $2.03 per diluted share.

"We had a strong fourth quarter finish to an excellent year, increasing our confidence in our three-year outlook," said eBay Inc. President and CEO John Donahoe. "Across eBay, PayPal, GSI and X.commerce, we have a robust portfolio of global commerce platforms and innovative mobile, local and social commerce technology assets. We are well-positioned to compete in the emerging new retail environment, and to help retailers of all sizes grow and engage their customers anytime, anywhere. We are a different eBay today, no longer just an ecommerce leader but a stronger, more diverse global commerce company shaping the future of shopping and payments."

The company's PayPal business continued to expand its leadership position in global payments. PayPal ended the quarter with 106.3 million active registered accounts, a 13% increase year over year. On average, PayPal added a million new accounts every month in 2011. PayPal revenue for the quarter increased 28% year over year driven primarily by continued merchant and consumer adoption as well as increased penetration on eBay. In the fourth quarter, revenue from PayPal's international markets exceeded revenue from the U.S. for the first time, reflecting the company's strong global footprint and growth in emerging markets. PayPal's net total payment volume (TPV) grew 24% to $33.4 billion in the fourth quarter of 2011. The company's mobile payment volume reached $4.0 billion in 2011, more than five times the mobile payment volume in the prior year, as more consumers used their smartphones and tablets to pay online.

The company's Marketplaces business also delivered strong fourth quarter performance. Marketplaces revenue for the quarter was up 16% year over year, due primarily to increased buying and selling on our platforms and growth from acquisitions. Gross merchandise volume (GMV), excluding vehicles, increased 10% to $16.5 billion with sold items up 11% globally year over year. U.S. GMV, excluding vehicles, increased 10% year over year, reflecting the success of eBay's tailored shopping experiences, the strong results delivered by eBay's top-rated sellers and the benefits of site enhancements. International GMV, excluding vehicles, increased 9% year over year, driven primarily by stable growth in Europe and improved performance in Asia. eBay mobile reached a record $5 billion transacted through mobile devices during 2011 as increased adoption of eBay's mobile apps and product innovation drove deeper customer engagement across all platforms.

The company's GSI business, which was acquired in the second quarter of 2011, contributed $363.6 million in revenue for the fourth quarter. GSI generated $1.4 billion in global ecommerce (GeC) merchandise sales during the quarter, driven by strong performance by top merchants, where same store sales grew 26% year over year, outpacing ecommerce growth rates in the fourth quarter.

Fourth Quarter and Full Year 2011 Financial Highlights (presented in millions, except per share data and percentages)

                     
Fourth Quarter Full Year
    2011   2010     Change     2011   2010     Change
GAAP                                                              
Net revenue   $ 3,380     $ 2,495       $ 885   35 %     $ 11,652     $ 9,156       $ 2,496   27 %
Net income   $ 1,980     $ 559       $ 1,421   254 %     $ 3,229     $ 1,801       $ 1,428   79 %
Earnings per diluted share   $ 1.51     $ 0.42       $ 1.09   260 %     $ 2.46     $ 1.36       $ 1.10   81 %
Non-GAAP                                                              
Net income   $ 789     $ 684       $ 105   15 %     $ 2,667     $ 2,299       $ 368   16 %
Earnings per diluted share   $ 0.60     $ 0.52       $ 0.08   15 %     $ 2.03     $ 1.73       $ 0.30   17 %
                     
Fourth Quarter Full Year
    2011   2010     Change     2011   2010     Change
Business Units                                                              
Payments                                                              
Net revenue   $ 1,240     $ 971       $ 269   28 %     $ 4,412     $ 3,436       $ 976   28 %
Net total payment volume   $ 33,372     $ 26,866       $ 6,506   24 %     $ 118,758     $ 91,956       $ 26,802   29 %
Merchant Services   $ 21,959     $ 16,982       $ 4,977   29 %     $ 77,700     $ 57,232       $ 20,468   36 %