today should be interesting I'm not too concerned should they miss yesterday seemed pretty gloomy after the bear sterns subprime fallout, yahoo report and intel report but market only closed down .5%.
eBay Inc. Announces Second Quarter 2007 Financial Results SAN JOSE, Calif., Jul 18, 2007 (BUSINESS WIRE) -- (BusinessWire) eBay Inc. (Nasdaq:EBAY) (www.ebay.com) reported financial results for its second quarter ended June 30, 2007. eBay reported record consolidated Q2-07 net revenues of $1.83 billion, representing a growth rate of 30% year over year. GAAP operating income was $457 million, an increase of 47% year over year, and represented 24.9% of net revenues. Non-GAAP operating income was $595 million, an increase of 29% year over year, and represented 32.4% of net revenues. GAAP net income in Q2-07 increased 50% year over year to $376 million, or $0.27 earnings per diluted share. Non-GAAP net income increased 34% year over year to $471 million, or $0.34 earnings per diluted share. GAAP and non-GAAP earnings per diluted share increased 57% and 40% year over year, respectively. The company purchased approximately 10 million shares of its common stock at a total cost of approximately $344 million during the quarter out of its authorized stock repurchase program of up to $2 billion by January 2009. "The quarter was a very good one for the company, as our portfolio of businesses continued to deliver value to our global community," said eBay President and CEO, Meg Whitman. "Providing a great user experience has always been critical to our success and will remain part of our ongoing focus as we expand the business further." Q2 Business Unit Discussion Marketplaces Overall, eBay's Marketplaces business posted strong results in the quarter, with solid top-line growth and expanded margins. The company continues to make significant investments to reinvigorate its core auctions business as well as to expand its portfolio of adjacent businesses. Marketplaces net revenues totaled a record $1.29 billion in Q2-07, a growth rate of 26% over the $1.03 billion reported in Q2-06. eBay's users posted a total of 559 million listings in Q2-07, 6% lower than the 596 million listings posted in Q2-06. These listings generated Gross Merchandise Volume (GMV) of $14.46 billion in Q2-07, representing a 12% year-over-year increase from the $12.90 billion reported in Q2-06. Payments PayPal had another exceptional quarter, with accelerating Total Payment Volume (TPV) and revenue growth. PayPal's Merchant Services business recorded outstanding results, as PayPal expanded its global footprint to new geographies and currencies during the quarter. PayPal net revenues totaled a record $454 million in Q2-07, a growth rate of 34% over the $339 million reported in Q2-06. Global TPV was $11.69 billion in Q2-07, a 32% increase from the $8.86 billion reported in Q2-06. PayPal Merchant Services contributed $4.92 billion globally to the $11.69 billion in global TPV in Q2-07, representing a 57% increase from the $3.13 billion reported in Q2-06. Communications Skype continues to grow rapidly, while delivering segment profitability for the second quarter in a row. Skype net revenues totaled a record $90 million in Q2-07, a growth rate of 103% over the $44 million reported in Q2-06. Skype had 220 million registered user accounts at the end of Q2-07, representing a 94% increase from the 113 million registered user accounts at the end of Q2-06. Other selected financial results Operating Margin -- GAAP operating margin increased to 24.9% in Q2-07, up from 22.1% in Q2-06. Non-GAAP operating margin decreased slightly to 32.4% in Q2-07, from 32.6% in Q2-06. The slight decrease in non-GAAP operating margin is the result of the negative gross margin mix impact coming from our lower margin businesses, such as PayPal and Skype, mostly offset by productivity gains. Taxes -- The GAAP effective tax rate for Q2-07 was 23%, which was a decrease from 26% for Q2-06 and 24% in Q1-07. The non-GAAP effective tax rate in Q2-07 was 25%, which was a decrease from 28% for Q2-06 and 26% in Q1-07. The lower tax rates in Q2-07 resulted primarily from increased profits generated through the expansion of our international operations. Cash Flows -- GAAP operating cash flows increased to $655 million in Q2-07. Free cash flow increased to $533 million in Q2-07. Cash, Cash Equivalents, and Investments -- The company's cash, cash equivalents, and investments totaled approximately $3.78 billion at the end of Q2-07. "Overall, we posted great financial results in the second quarter," said Bob Swan, chief financial officer, eBay Inc. "We're now halfway through the year, and we're increasingly confident in our ability to deliver even stronger full year revenue and earnings growth through our portfolio of businesses." Business Outlook Third Quarter 2007 -- eBay expects consolidated net revenues for Q3-07 to be in the range of $1.775 billion to $1.825 billion. Non-GAAP earnings per diluted share for Q3-07 are expected to be in the range of $0.31 to $0.33. These amounts assume a US dollar to Euro exchange rate of $1.30. Full Year 2007 -- eBay now expects consolidated net revenues for 2007 to be in the range of $7.300 billion to $7.450 billion. Non-GAAP operating margin for 2007 is expected to be approximately 33%. Non-GAAP earnings per diluted share for 2007 are now expected to be in the range of $1.34 to $1.38. These amounts assume a US dollar to Euro exchange rate of $1.30.