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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