eBay/PayPal report results ahead of split: today’s the day
eBay Inc. reported its second quarter results for 2015 on Thursday just a day ahead of their divorce. All told in Q2 the company reported revenues of $4.4bn.
As of midnight Friday (New York time), the two companies will be operating as separate firms and will trade independently on the stock exchange as of Monday.
What are the highlights in the quarterly report?
– eBay Enterprise will be sold for shy of $1bn
– PayPal had a strong quarter (as per).
– eBay’s marketplace business didn’t shine quite so much.
Of concern must be the ambivalent growth eBay’s marketplace business saw globally: “eBay Marketplaces GMV declined 2%, with the continuing strength of the dollar significantly impacting results; however, it grew 6% on an FX-neutral basis, a one point acceleration versus the prior quarter. In the U.S., GMV grew 2%; while International GMV was down 5%, it increased 8% on an FX-neutral basis. Total revenue for the quarter was $2.1 billion, down 3%, although growing 5% on an FX-neutral basis, a two point acceleration versus first quarter. eBay Marketplaces active buyers grew 6%. eBay had a strong second quarter and continues to execute against its three key strategic pillars: building a more robust commerce platform, driving a more vibrant marketplace and creating exceptional product and brand experiences.”
Devin Wenig (soon to be head of all eBay) said of the results: “I am encouraged by the state of our business and the progress against our strategy. As eBay celebrates its 20th anniversary this year, we are making rapid changes to position the company for the future. My goal, and that of the entire leadership team, is for eBay to be the best global marketplace and a great enduring Internet business. As we move into our next chapter, we also look forward to continuing our strong partnership with Dan and the PayPal team.”
Wenig is right to be slightly circumspect. These are uncharted waters for eBay. We’ll see in the next few weeks what the split means for both companies.