eBay makes 4 billions dollars in revenues for its forth quarter in 2012
The leading online auction site, eBay has released the final report on 2012′s revenues. The report shows that eBay has generated 4 billions dollars in revenues during the last quarter of 2012. That is 18% more than the amount that was generated in the forth quarter of 2011. The net income on the GAAP basis was reported to be of $751 millions while the net income on the non-GAAP basis was of $927 million. So the net income for last years quarter has increased to 22%.
eBay explains these numbers by the fact that the growth in the marketplace was accelerated and there have been strong gains in mobile adoption in addition to the double digit user growth across the portfolio. All this put together has resulted in an increase in the non-GAAP earnings per diluted share.
In comparison to 2011, revenues increased up to 21%, making $14.1 billion. The net income on the GAAP basis was $2.6 billion and on a non-GAAP basis was $3.1 billion. According to eBay, more that $175 billion of commerce volume (ECV) was enabled in 2012 allowing them a growth of 18%.
The eBay CEO and President, John Donahoe, acknowledged that the previous year really ended well for the online auction website to the point where the growth in U.S alone went up 3 points. He added that they are still the leader in online payment and mobile commerce. The fact is the mobile version of eBay finished the year with $13 billion in volume, which is about 2 times more than what was generated in 2011. When it comes to online payment, PayPal handled about $14 billion which in more that 3 times what was handled in 2011. It is eBay’s CEO’s hope that in the year 2013 both the mobile commerce and PayPal bring $20 billion each.
Last year PayPal recorded 123 million newly registered accounts making about 15% of it growth. For the last quarter alone it recorded 2 million newly registered accounts. That has not happened in years. PayPal has undergone a geographic expansion that has allowed it to increase its payment volume to up to 24%. This is also due to the fact that more consumers today used their smartphones and tablets to buy online.
eBay made an important decision when it decided to streamline the mobile version of the website and make the shopping experience much more enjoyable for its users. There have been the creation of mobile apps that can be install on any mobile devices and enable the users to easily access the website whenever they go. It is claimed that 4 million new customers have been acquired with the help of mobile apps.
For this new year, eBay intends to continue improving its mobile services and attract more users on the mobile platform. At the start of this quarter, the reorganization of PayPal continues under the supervision of its CEO, David Marcus. A number of payment pilot are already rolling out in international markets and that includes mobile check-ins. The leading online payment service also intends to facilitate the way money is loaded on the users account. Users should be able to use real cash to load their accounts instead of bank transfers. This year is probably going to be another fruitful one for eBay.