eBay Inc (EBAY) Q3 Results: A Mixed Bag for Investors

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eBay Inc (NASDAQ:EBAY)  is the world’s largest online marketplace (eBay.com) and leading online payment service (PayPal and BillMeLater), the company just announced its third quarter earnings.  Overall September revenue results were in line and EPS was $0.01 better than consensus. December revenue guidance was 1% below the Street. The most important point is US GMV excluding autos was up 16% vs. buyside expectations of 15%, which is an acceleration from 14% in Sep-12. TPV growth was 20% vs. the Street at 21%, unchanged from 20% in Sep-12.

eBay Inc (EBAY) Q3 Results: A Mixed Bag for Investors

eBay Inc (NASDAQ:EBAY)  reported $3.40B Revenue & Non-GAAP EPS of $0.55 came in in-line to just modestly ahead of Street at $3.40B and $0.55. eBay Inc (NASDAQ:EBAY) hit the high end of its Revenue guidance, but this company has exceeded the high-end of its guidance for eight straight quarters.

However, not all was so rosy. Citigroup notes  that merchant Services TPV growth rate (ex-FX) stayed at 26% Y/Y in Q3, in-line with Q2’s 26% growth despite a 4-pt easier comp – a somewhat trend. This remained the slowest Y/Y growth  seen in the past 11 quarters with 9 consecutive quarters of decelerating growth. OneBay

TPV Growth ex-FX growth rate (ex-FX) stayed at 18% Y/Y in Q3, also in-line with Q2’s growth rate, despite a slightly easier comp. However, Payments Global Take Rate was 3.89%, up 10+ bps Y/Y while Transaction margin also increased 300+ bps Y/Y. Payment Segment Margins jumped 310 bps Y/Y to 22.6%. All in, Payments Net Revenue came in about $30MM below Citigroups’ estimates.

Bottom line, the September quarter is another proof point that the eBay Inc (NASDAQ:EBAY)  marketplace is back on track with slight acceleration, which increases our confidence in their  marketplace growth for 2013. Payments were fractionally below the Street, but the theme of payment acceleration late in 2013 and into 2014 remains intact as mobile payments and point of sale begins to gain traction.


Shares of ebay are up 0.25% in after-hours trading.

Disclosure: No position

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