NEW YORK, July 22, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on eBay Inc. (NASDAQ : EBAY ). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=EBAY
Highlights from our EBAY Report include:
- Accelerated Revenue Growth - On July 16, 2015, eBay Inc. reported that its revenue for the second quarter 2015 increased 7% YoY to $4.4 billion, with strength across both PayPal and eBay. eBay Marketplaces unit revenue for the quarter was $2.1 billion, down 3% YoY, while payment units revenue grew 16% YoY to $2.3 billion. Foreign currency movements negatively affected revenue growth rate of eBay's Marketplaces and PayPal's business units by 8 points and 3 points, respectively. However, currency hedging partially offset the impact for PayPal. The total revenue for the quarter excludes revenue of $0.3 billion from eBay Enterprise, which the Company has agreed to sell to a consortium led by the Permira Funds for $925 million. As per a same day article by Bloomberg, eBay's total revenue, including the enterprise business, was $4.68 billion. The average estimate of analysts was $4.49 billion, according to data compiled by Bloomberg.
- Strong Revenue Growth Drives Income from Continuing Operations - During the quarter, driven by accelerated revenue growth at both businesses, eBay's GAAP income from continuing operations came in at $682 million or $0.56 per diluted share, and Non-GAAP income from continuing operations was $931 million or $0.76 per diluted share. This compares to GAAP income from continuing operations of $720 million or $0.57 per diluted share, and Non-GAAP net income from continuing operations of $883 million or $0.70 per diluted share, in Q2 2014. As per data compiled by Bloomberg, analysts had predicted Non-GAAP income from continuing operations of 72 cents a share for the quarter.
- PayPal Records Higher Payment Volume - In the second quarter of 2015, PayPal's net total payment volume (TPV) grew 20% to $66 billion, with Merchant Services volume growth of 27% while the same on-eBay volume was down 1%. On an FX-neutral basis, PayPal TPV grew 28%, with Merchant Services volume growth of 36% and eBay volume growth of 6%. Payment volume through eBay Marketplaces was $14.5 billion, accounting for 22% of total TPV. PayPal's new active accounts increased 11% to 169 million while it processed 1.1 billion transactions.
- Marketplaces Unit exhibits Subdued Merchandise Volume Performance - eBay Marketplaces gross merchandise volume (GMV) declined 2%, as the continuing strength of the dollar significantly influenced results. However, GMV grew 6% on an FX-neutral basis, a point higher from the prior quarter. In the U.S. GMV grew 2%, while International GMV was down 5%. Active buyers in the eBay Marketplaces business unit grew 6%.
To find out how this influences our rating on eBay Inc. read the full report in its entirely here: http://www.aciassociation.com/?c=EBAY
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