eBay Inc. (NASDAQ: EBAY), a global commerce platform, after-market close on Wednesday, reported that its net income more than doubled in the second quarter. Shares of EBAY rose sharply following the release of strong quarterly results.
EBAY reported second-quarter net income of $692 million, or $0.53 per share, representing an increase of 144% over the same period last year.
Revenue for the second quarter rose 23% to $3.4 billion, beating Street estimates of $3.36 billion.
PayPal revenue stood $1.4 billion in the second quarter, representing an increase of 26% over the same period last year. The increase in revenue was driven mainly by increased penetration on EBAY as well as continued merchant and consumer adoption and strong growth in Bill Me Later. PayPal ended the second quarter with 113.2 million active registered accounts, up 13% over the same period last year.
EBAY’s Marketplaces business, meanwhile, posted its strongest organic growth in gross merchandise volume (GMV), excluding vehicles, since 2006.
John Donahoe, President and CEO of eBay, said that the company delivered a great second quarter, driven by eBay Marketplaces’ best performance in years, strong growth at PayPal and strong same-store sales growth for GSI’s large retail customers. Donahoe said that the entire company is strong but he is particularly pleased with Marketplaces, which delivered its strongest organic growth in GMV, excluding vehicles, since 2006.
Donahoe said that he expects eBay and PayPal mobile to each transact $10 billion in volume this year, which is more than double 2011.
For the third quarter of 2012, eBay expects net revenue to be between $3.3 billion and $3.4 billion. Full year net revenue is expected to be between $13.8 billion and $14.1 billion.
EBAY shares rose 5.22% to $42.57 in after-hours trading on Wednesday. The stock had earlier finished 3.56% higher at $40.46 in regular trading.
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