eBay Inc Shares Slump After Revenue Guidance Cut

eBay Inc (NASDAQ:EBAY) released the results from its most recently completed quarter after closing bell tonight, posting non-GAAP earnings of 68 cents per share, a 6% growth rate, on $4.4 billion in revenue, a 12% growth rate. Analysts had been expecting the online auction giant to report earnings of 67 cents per share on $4.37 billion in revenue.

GAAP earnings per share rose 2% to 54 cents per share.

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Breaking down eBay’s earnings results

eBay reported a 27% increase in enabled commerce volume, which rose to $63 billion. Mobile enabled ecommerce volume grew by 67% to $14 billion and made up 21% of the volume. The company surpassed 282 million mobile downloads since its app’s inception and attracted 7.3 million new customers during the quarter.

Marketplaces volume grew by 9%, including a 7% growth rate in the U.S. and an 11% growth rate internationally. Revenue for eBay Marketplaces rose to $2.2 billion. The segment added 3.4 million new buyers, ending the September quarter with 152 million active buyers, a 13% increase.

eBay reported that the number of items available on Marketplaces surpassed 800 million listings. Mobile volume for Marketplaces increased 41% to $7 billion, while fixed price sales increased 15% and now make up 79% of the sales on the platform.

Enterprise gross merchandise volume sales rose 14%, while revenue rose $259 million.

PayPal’s results

PayPal saw its payments volume grow by 29%. Merchant Services volume rose 37%, and on-eBay volume increased by 9%. PayPal’s revenue climbed to $2 billion, and the payment services provider added 4.4 million new active registered accounts, ending the quarter with 157 million active accounts, a 14% increase.

Global on-eBay penetration rose to 80.5%, while mobile payment volume increased by 72% to $12 billion, making up 20% of PayPal’s total payment volume. The company reported 2.9 million active accounts acquired on mobile. PayPal Credit saw a 29% growth rate

eBay guides for fourth quarter

For the current quarter, eBay projects net revenues of between $4.85 billion and $4.95 billion. GAAP earnings per share are expected to be between 73 cents and 76 cents, while non-GAAP earnings are expected to be between 88 cents and 91 cents.

For the full year, eBay cut its revenue guidance to between $17.85 billion and $17.95 billion.