Business

eBay says PayPal’s mojo was the force behind its strong second quarter numbers

Image Credit: Illustration by Eric Blattberg / VentureBeat

EBay reported solid revenues in the second quarter, and much of the company’s upward momentum these days is coming from PayPal.

The auction site reported that revenue grew 13 percent to $4.4 billion for the second quarter of 2014, a 13 percent increase over the same quarter last year.

But a big chunk of eBay’s revenue came from PayPal. It alone turned in $1.9 billion in the second quarter.

PayPal’s net total payment volume grew 29 percent, with Merchant Services volume up 35 percent and on-eBay payment volume up 13 percent.

EBay also says PayPal picked up 4 million new active registered accounts to end the quarter at 152 million, up 15 percent. CEO John Donahoe said PayPal showed “strong enabled commerce volume growth of 26 percent” in a statement.

“PayPal generated another strong quarter while eBay’s growth was hampered by its global password reset for all users,” Donahoe said. “We delivered new experiences for PayPal and eBay customers, extended PayPal and eBay into new markets, made it simple and easy for developers to integrate PayPal and offered new ways to help merchants grow.”

Ebay’s non-GAAP earnings increased to $868 million, or 69 cents per diluted share. That beat consensus analyst expectations by a penny.

Ebay stock was up 19 cents (.23 percent) at $50.70 in after hours trading at the time of this report.

More information:

eBay Inc. connects millions of buyers and sellers globally on a daily basis through eBay, the world's largest online marketplace, and PayPal, which enables individuals and businesses to securely, easily and quickly send and receive onl... read more »

PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promot... read more »

Powered by VBProfiles


VentureBeat is studying mobile marketing automation. Chime in, and we’ll share the data.
1 comments
Sun Kim
Sun Kim

PayPal's revenue continue to scale. Last time I checked, their profit margin was around 35%. Imagine all those PayPal balances they are collecting fees on. They are essentially getting paid to host servers that move funny money from one account to another. eBay is still mostly about selling tangible goods. Their web site is still stuck on Web 1.0, ugly as hell, and continues to make a profit despite all issues buyers and sellers have to deal with.