The company announced Wednesday that it earned a net income of $460 million, or 35 cents per share. Profits excluding some items were 43 cents per share.
Revenue increased from $1.83 billion to $2.2 billion, or by 20%, by June 30, beating analysts' forecasts of $2.17 billion, according to eBay's earnings announcement (PDF). About 56% of the company's revenue came from foreign sales.
The average selling price for auctioned goods fell 6% in the second quarter and that news sent shares down by 6.6% in after-hours trading Wednesday. Gross merchandise volume rose by 8% in the quarter, but that's the smallest increase in five quarters, according to eBay. The company saw no increase in used car sales as used car values decreased.
CFO Robert Swan said problems with the economy contributed to a drop in average selling prices in the United States and the United Kingdom, as well as the slower growth rate. Swan predicted that the trend would continue until the economy begins to recover.
PayPal revenue rose to $602 million, or 32%, while Skype revenue rose to $136 million, or 51%, as nearly 30 million new users signed on.
The auction site reported nearly 85 million active users and nearly 670 million listings in the quarter.
Shares fell $1.86 after the earnings announcement to $26.24.
eBay predicted third quarter sales of up to $2.15 billion and profits of 39 cents to 41 cents per share. The company predicted revenue between $8.8 billion and $9 billion and per-share profits, excluding some items, up to $1.77 for the year.
eBay also announced Wednesday that Marketplaces President Rajiv Dutta would retire in the fall and Lorrie Norrington would take his place.