EBay Inc. has apparently rediscovered its E-commerce magic. After a rocky six months, it reported record quarterly earnings that helped counter market worries that it's losing its competitive edge.
For the quarter ended June 30, eBay posted a profit of $291.6 million on revenue of $1.1 billion, compared with a profit of $190.4 million on revenue of $773.4 million a year ago. That translates into 53% profit growth and a 40% rise in revenue.
Even though eBay has remained highly profitable, the combination of a below-expectations earnings report in January, complaints about rising merchant fees, and a perception that it's not doing enough to prevent fraudulent sellers from duping unsuspecting buyers has conspired to push the value of eBay stock down 40% this year.
The success of eBay's quarter was evident everywhere. International marketplace revenue was up more than 50%, to $418.8 million, fueled by the company's growth in markets such as China, France, and Italy. Payment revenue via its PayPal unit also rose more than 50%, to $243.9 million.
EBay users are proving that they can sell just about anything on eBay. More than $14 billion worth of autos, $3.3 billion worth of clothing and accessories, $3.2 billion worth of consumer electronics, $2.9 billion worth of computers, $2.5 billion worth of home and garden items, $1.6 billion worth of toys, and $1.3 billion worth of photo equipment were sold during the quarter.
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. We've got a management crisis right now, and we've also got an engagement crisis. Could the two be linked? Tune in for the next installment of IT Life Radio, Wednesday May 20th at 3PM ET to find out.