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Summary:

EBay just reported its earnings, and while rest of the data doesn’t intrigue me as much, the Skype data is pretty telling. In the 78 days eBay has owned Skype, the company did sales of $24.8 million. No mention of profits in the press release, but […]

EBay just reported its earnings, and while rest of the data doesn’t intrigue me as much, the Skype data is pretty telling. In the 78 days eBay has owned Skype, the company did sales of $24.8 million. No mention of profits in the press release, but they do point out that nearly 87% of the total sales are from outside of the US. At $24.8 million over seventy eight days, it works out to about $116 million, a shade ahead of $100 million annual run-rate they hoped for when the SkyeBay deal was announced.

Looks pretty good, unless you start slicing and dicing it differently. That’s about $318,000 a day in sales for Skype. Being snarky for a minute, at that rate, the sales-to-deal-price ($2.6 billion) parity will take about 8176 days. Roughly 22 years! (Of course they will grow their sales, I am just having some fun here ;-) )

  1. [...] Om Malik on Broadband : » Skype Revenues – $318,000 a day , however, there is more than meets the sk(h)ype by Black Rim Glasses | posted in running Trackback URL | Comment RSS Feed Tag at del.icio.us | Incoming links [...]

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  2. ‘We’ in Europe have been Skype fans for a while. I can say that I find more US companies prepared to embrace Skype as a way of communication than at any tome in the past. I’d like to believe this signals a greater acceptance of ‘not made here and we’ll try it.’ Europeans are doing smart things, turn your lens in this direction…

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  3. Om, I wouldn’t annualize that amount for 2005. Skype’s revenues are probably weighted toward the back-end of 2005 as they “ramp-up”. I’m guessing they come in quite short for the year.

    Maybe Ebay can make it up somewhere in the next 22 years. LOL!!

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  4. I looked over their financials in the press release. I wanted a laugh as I read something like “we invested xx billions of cash in a free phone service.”

    Sorry, I’m a financial analyst by trade. I can get myself going on this one.

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  5. Free At Last……….I have a Dream

    MartinLutherSkibare

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  6. [...] The official company line will most likely be that Shopping.com is just a small operating unit, and that eBay does not break out numbers for all its businesses…but eBay did break out the numbers for Skype ($24.8m since the acquisition or a run rate of about $116m) and Shopping.com has stronger revenue than that. [...]

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  7. If incumbents have their way and start charging Skype, the bottomline might not be that great. And with entire countries and corporates start blocking Skype, the growth rate might not be that great either.

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  8. I’ll likely blog on this more extensively as I did a couple months back http://rafer.wirelessink.com/?p=13 , but you are forgetting a lot more than Skype’s quick growth. You are also forgetting that eBay is currently trading at 15.22 times TTM (trailing twelve months) sales. That reduces your number to about 18 months. eBay was trading at around 13 TTM times sales when they acquired Skype. At this accelerating growth rate, the 200M projection for CY2006 is looking ever more reasonable.

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  9. 318K revenues a day for $2.6 Billion investment ? Any Profits ? So where does eBay Stand ?
    $2.6 Billion investment loss.
    At the rate of 5% they are losing $318K in profits/month. Oho, well we are a silicon valley dot com and not Google ;)

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  10. hey scott, care to explain a little but more. i am a tad confused on the point you are making. feeling a little slow today :-) so need a bit of help in understanding your argument.

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