eBay Inc.’s 2013 earnings report has generated more than 30 original articles in news outlets such as the New York Times, Wall Street Journal and Reuters.
“eBay has successfully transformed itself from a site known as the virtual equivalent of a yard sale or dusty thrift shop to a sophisticated online marketplace,” reported the New York Times.
News outlets covered the company’s double-digit revenue growth: Revenue for the first quarter ended March 31, 2013, increased 14% to $3.7 billion, compared to the same period of 2012. eBay Inc. reported first quarter net income on a GAAP basis of $677 million, or $0.51 per diluted share, and non-GAAP net income of $829 million, or $0.63 per diluted share.
In addition, journalists took note of accelerating user growth at eBay and PayPal, mobile innovations and plans for international expansion. The company’s long-term ambitions, laid out on Analyst Day last month, were also fresh in their minds.
“Overall, investors said the positive first-quarter report positioned the company to hit its ambitious growth targets for 2015, which eBay laid out at an analyst convention last month,” the San Jose Mercury News reported.
In a lengthy interview with CNBC at San Jose’s North campus, eBay Inc. President and CEO John Donahoe discussed the company’s focus on mobile innovation and its recent strategic acquisitions.
“There’s going to be a lot of innovation in mobile payments and in this whole space because there’s so much change,” Donahoe said. “We understand that. We actually respect and like that. We’ve made several acquisitions, but we’re innovating aggressively as well.”
Reporters mentioned that the company’s Q2 outlook was lower than expected, but they also factored in eBay Inc.’s ambitions and innovations, including international expansion, retail partnerships, PayPal’s deal with Discover and mobile products.
“The reason the stock is doing so well is because people are excited about the business possibilities.” Benjamin Schachter, a financial analyst at Macquarie Securities, told the New York Times, referring to innovations such as the digital wallet.
R.J. Hottovy, an equity analyst at Morningstar, pointed out that eBay Inc.’s aggressive three-year growth targets are based on international expansion plans and mobile commerce, initiatives in which it is investing heavily.
“These investments are building for the future so that should be taken positively, even if they come at the expense of short-term profits,” Hottovy told Reuters, while noting that eBay's full-year 2013 forecasts remained unchanged.
Notable quotes from earnings coverage:
“eBay continued its steady rise in the first quarter of 2013, reporting $3.75 billion in revenue Wednesday for the three months ending March 31.” – San Jose Mercury News
“Because the company has seen strong growth in PayPal, mobile sales and marketplace, investors have been bullish on eBay and its stock. During the first quarter, the company reorganized its mobile group and released a number of new apps and expanded its same-day delivery service.” – Techcrunch
“eBay continues its turnaround, from troubled online auction site to a forward-looking, mobile-oriented e-commerce company.” – The New York Times
“In its first quarter financials out this week, eBay slightly beat earnings estimates, with net income up 19% year-over-year to $677 million on revenues of $3.7 billion, led by PayPal's continued rise and the recent turnaround of Marketplaces, which includes the eBay website.” – Fortune
“‘The core business is just doing really well,’ Ron Josey, an analyst at JMP Securities in Washington, said in an interview. ‘They are expanding overseas and taking share in emerging markets where they haven’t really been before.’” – Bloomberg Businessweek