Summary:

Another strong quarter for eBay, which saw revenues grow by 30 percent, to $1.89 billion from $1.45 billion. Net income, excluding the impac…

Another strong quarter for eBay, which saw revenues grow by 30 percent, to $1.89 billion from $1.45 billion. Net income, excluding the impact of its Skype writedown, grew by 53 percent to $564 million or $0.41 per share. Factoring in the Skype charge, it lost $936 million or $0.69 per share. Most of the company’s gains came at its core Marketplaces business, which had a growth rate of 26 percent. PayPal also performed well, with revenue hitting $470 million on growth of 35 percent. And just to give you an idea of how high the bar was set for Skype, this unit grew by 96 percent to $98 million in revenue, but that obviously wasn’t good enough. Registered users for the service hit 246 million, up 81 percent from last year. Release | Webcast | Transcript (via SeekingAlpha)

Conference Call: So how does a unit that grew revenue by 96 percent end up missing expectations? According to CEO Meg Whitman, eBay (NSDQ: EBAY) has been too focused on monetizing Skype, extracting as much revenue as it could, while underinvesting in the product itself. That’s the claim, anyway. Looking ahead, the company still sees a lot of potential there and it plans to invest more in the unit going forward, while deemphasizing financial returns.

You’re subscribed! If you like, you can update your settings

Comments have been disabled for this post