Content provided in partnership with

Business Services Industry

eBay Inc. Announces First Quarter 2006 Financial Results

Business Wire, April 19, 2006

SAN JOSE, Calif. -- eBay Inc. (Nasdaq:EBAY)

--Company Reports Record Q1 Net Revenues of $1.390 Billion

--Delivers Q1 GAAP Diluted EPS of $0.17 and Non-GAAP (pro forma) Diluted EPS of $0.24

eBay Inc. (Nasdaq:EBAY)(www.ebay.com) reported financial results for its first quarter ended March 31, 2006.

eBay reported record consolidated Q1-06 net revenues of $1.390 billion, representing a growth rate of 35% year over year and GAAP operating income of $322.6 million representing a 23% operating margin. Non-GAAP operating income in Q1-06 was $460.7 million representing a 33% operating margin. Certain financial measures previously referred to as "pro forma" are now referred to as non-GAAP.

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

GAAP net income in Q1-06 was $248.3 million, or $0.17 earnings per diluted share. Non-GAAP net income in Q1-06 was $342.9 million, or $0.24 earnings per diluted share.

These results exceeded the high end of the company's guidance of $1.380 billion for net revenues, $0.15 for GAAP earnings per diluted share, and $0.23 for non-GAAP earnings per diluted share.

"Q1 was an excellent quarter for the company, with strong growth across our portfolio of businesses," said Meg Whitman, President and CEO of eBay Inc. "eBay, PayPal and Skype are successful businesses on their own, and together they create additional opportunities for innovation and expansion."

Key Q1 Financial and Operating Metrics

Consolidated Net Revenues -- Consolidated net revenues totaled a record $1.390 billion in Q1-06, a growth rate of 35% over the $1.032 billion reported in Q1-05.

--US Marketplaces -- US Marketplaces net revenues, including Shopping.com, totaled $527.2 million in Q1-06, representing 30% year-over-year growth.

--International Marketplaces -- International Marketplaces net revenues totaled $493.0 million in Q1-06, representing 25% year-over-year growth. Excluding the impact of foreign currency translation, Q1-06 International Marketplaces net revenues increased 32% year over year.

--Payments -- Payments net revenues totaled $335.1 million in Q1-06, representing 44% year-over-year growth. Excluding the impact of foreign currency translation, Q1-06 Payments net revenue increased 47% year over year.

--Communications -- Communications net revenues totaled $35.2 million in Q1-06, representing a 42% increase from the $24.8 million reported in Q4-05. The Q4-05 revenue represented the operations of Skype from the acquisition date of October 14, 2005 through the end of Q4-05.

Marketplaces

--Confirmed Registered Users -- eBay cumulative confirmed registered users at the end of Q1-06 totaled 192.9 million, representing a 31% increase over the 147.1 million users reported at the end of Q1-05.

--Active Users -- eBay 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 75.4 million in Q1-06, a 25% increase over the 60.5 million active users reported in Q1-05.

--Listings -- eBay new listings totaled a record 575.4 million in Q1-06, 33% higher than the 431.8 million new listings reported in Q1-05.

--Gross Merchandise Volume (GMV) -- eBay GMV, the total value of all successfully closed items on eBay's trading platforms, was $12.5 billion in Q1-06, representing an 18% year-over-year increase from the $10.6 billion reported in Q1-05. Excluding the impact of foreign currency translation, Q1-06 GMV increased 22% year over year.

--Fixed Price Trading -- eBay's fixed price trading contributed approximately $4.3 billion or 34% of total GMV during Q1-06, primarily from eBay's "Buy It Now" feature.

--eBay Stores -- At the end of Q1-06, eBay hosted approximately 486,000 stores worldwide, with approximately 247,000 stores hosted on the US site.

Payments

--Total Payments Accounts -- PayPal had 105.0 million total accounts at the end of Q1-06, a 47% increase from the 71.6 million reported in Q1-05. Total payments accounts represent the cumulative total of all accounts opened, excluding accounts that have been closed or locked and the payment gateway business accounts, and including users who made payments with PayPal but have not registered.

--Total Payment Volume (TPV) -- TPV, the dollar volume of payments initiated through the PayPal system, excluding the payment gateway business, was a record $8.8 billion in Q1-06, a 41% increase from the $6.2 billion reported in Q1-05.

Communications

--Registered Users -- Communications had 94.6 million total registered users at the end of Q1-06. Communications registered users represent the cumulative total of all users who have completed the Skype registration process.

Consolidated Operating Results

This is the first quarter that eBay's financial results include stock-based compensation expenses from the adoption of the new accounting standard, FAS 123(R). eBay's financial results for prior periods have not been restated for FAS 123(R). In addition, eBay continues to disclose its non-GAAP (previously referred to as "pro forma") financial measures, which in each case exclude the stock-based compensation expense as well as stock option related payroll taxes, amortization of acquired intangible assets and the income taxes related to these items.

Business Services Industry

eBay Inc. Announces First Quarter 2006 Financial Results

Business Wire, April 19, 2006

Find Research Guides for:

Find Featured Titles for: Health

Most Popular Articles in Business

Most Popular Publications in Business