(Note: All growth rates represent year over year comparisons, except as otherwise noted.)
eBay Inc. reported strong third quarter results Wednesday, as mobile continues to drive a significant portion of the company’s new user growth and transform how consumers shop and pay around the world. Revenue for the third quarter ended September 30, 2013 increased 14% to $3.9 billion, compared to the same period of 2012.
“In the past 12 months we have enabled $200 billion of commerce volume, a 20% increase in a fairly lackluster macro environment,” said John Donahoe, President and CEO, eBay Inc. “That growth demonstrates the strength of our core businesses and our power as a partner, not a competitor, to merchants, brands and retailers.”
Overall, the company reported third quarter net income on a GAAP basis of $689 million, or $0.53 per diluted share, and non-GAAP net income of $837 million, or $0.64 per diluted share. Third quarter non-GAAP earnings per diluted share increased 17% driven primarily by strong top-line growth. GAAP earnings per diluted share increased 16%, driven by revenue growth and the sale of company investments in RueLaLa and ShopRunner.
Total company Enabled Commerce Volume (ECV) grew 21% for the quarter, to $52 billion. Cross-border trade, another competitive strength of the company to enable global commerce anytime, anywhere, was $11 billion, representing 22% of the company’s total ECV. Mobile enabled commerce volume was up 75% in the quarter, with downloads since inception exceeding 200 million and the company’s suite of mobile apps attracting 3.2 million new customers.
At the company’s PayPal unit, revenue increased 19% to $1.6 billion in the third quarter. PayPal also gained 5.0 million active registered accounts and ended the quarter with 137 million, a 17% increase. Key developments in the third quarter included the launch of PayPal’s enhanced mobile app for iOS and Android and a fully localized offering in Russia.
Marketplaces also delivered a strong third quarter performance with revenue increasing 12% to $2.0 billion. Marketplaces gained 3.9 million active users in the period and ended the quarter with 124 million, a 14% increase. The selection of items available on Marketplaces grew to an average of over 500 million listings, reflecting an increase in mobile listings and the success of consumer selling initiatives. Free shipping was provided on more than 50% of U.S. transactions in the quarter and the global shipping program continued to expand.
eBay Enterprise contributed $238 million in revenue for the third quarter, a 5% increase. Its Commerce Technologies generated $787 million in Merchandise Sales, a 13% increase, but revenue was pressured by a reduction in take rate. eBay Enterprise enabled its clients to grow same-store sales 13%, decelerating sequentially, but broadly in line with ecommerce growth rates. The company expects its broad omnichannel product portfolio, including complementary eBay Inc. assets, to be increasingly adopted by merchants seeking opportunities to grow their businesses while seamlessly meeting the needs of the connected consumer. eBay Enterprise launched four brands on its new suite of modular Commerce Technologies during the quarter.