eBay Inc. (EBAY, Financial) filed Quarterly Report for the period ended 2011-06-30.
Ebay Inc. has a market cap of $43.4 billion; its shares were traded at around $33.435 with a P/E ratio of 21.6 and P/S ratio of 4.6. Ebay Inc. had an annual average earning growth of 27.3% over the past 10 years. GuruFocus rated Ebay Inc. the business predictability rank of 2-star.
For the three months ended June 30, 2011, foreign currency movements relative to the U.S. dollar positively impacted net revenues by approximately $116.7 million (net of a $10.5 million negative impact from hedging activities relating to PayPal's net revenue) compared to the same period of the prior year. On a business segment basis for the three months ended June 30, 2011, foreign currency movements relative to the U.S. dollar positively impacted Marketplaces, Payments and GSI net revenues by approximately $93.5 million, $23.1 million and $0.1 million, respectively, compared to the same period of the prior year (net of the impact of hedging activities, noted above).
For the six months ended June 30, 2011, foreign currency movements relative to the U.S. dollar positively impacted net revenues by approximately $129.2 million (net of a $16.9 million negative impact from hedging activities relating to PayPal's net revenue) compared to the same period of the prior year. On a business segment basis for the six months ended June 30, 2011, foreign currency movements relative to the U.S. dollar positively impacted Marketplaces, Payments and GSI net revenues by approximately $106.7 million, $22.4 million and $0.1 million, respectively, compared to the same period of the prior year (net of the impact of hedging activities, noted above).
Marketplaces net transaction revenues earned internationally totaled $758.8 million and $1.5 billion during the second quarter and first six months of 2011, respectively, representing 56% of total Marketplaces net transaction revenues during both periods. Marketplaces net transaction revenues earned internationally totaled $658.4 million and $1.3 billion during the second quarter and first six months of 2010, respectively, representing 56% and 57% of total Marketplaces net transaction revenues during those respective periods. The increase in international net transaction revenues in dollars was due primarily to growth in our existing international markets and foreign currency movements against the U.S. dollar.
Payments net transaction revenues earned internationally totaled $515.6 million and $991.4 million during the second quarter and first six months of 2011, respectively, representing 52% and 51% of total Payments net transaction revenues during those respective periods. Payments net transaction revenues earned internationally totaled $371.0 million and $730.9 million during the second quarter and first six months of 2010, respectively, representing 48% of total Payments net transaction revenues during both periods. The increase in international net transaction revenues was due primarily to the growth of our Merchant Services business and increased penetration on eBay Marketplaces platforms internationally.
Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payments services projects. Capitalized site and product development costs were $44.1 million and $81.0 million in the second quarter and first six months of 2011, respectively, compared to $33.0 million and $60.1 million in the second quarter and first six months of 2010, respectively, and are primarily reflected as a cost of net revenues when amortized in future periods.
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Ebay Inc. has a market cap of $43.4 billion; its shares were traded at around $33.435 with a P/E ratio of 21.6 and P/S ratio of 4.6. Ebay Inc. had an annual average earning growth of 27.3% over the past 10 years. GuruFocus rated Ebay Inc. the business predictability rank of 2-star.
Highlight of Business Operations:
Net revenues for the three months ended June 30, 2011 increased 25% to $2.8 billion, compared to the same period of the prior year, driven primarily by a 34% increase in PayPal net total payment volume (TPV) and a 17% increase in Marketplaces gross merchandise volume (GMV) excluding vehicles. For the three months ended June 30, 2011, our operating margin decreased to 19% from 22%, compared to the same period of the prior year, driven primarily by the impact of acquisitions. Our Payments segment operating margin for the three months ended June 30, 2011 increased 2 percentage points compared with the same period of the prior year, due to stable transaction margins, solid operating leverage and continued improvement in Bill Me Later performance. Our Marketplaces segment operating margin for the three months ended June 30, 2011 decreased 1.5 percentage points compared to the same period of the prior year driven primarily by the impact of recently completed acquisitions. For the three months ended June 30, 2011, our diluted earnings per share decreased to $0.22, a $0.09 decrease compared to the same period of the prior year, driven primarily by a loss from the divestiture of certain GSI businesses and other transaction-related expenses, partially offset by an increase in operating income. For the three months ended June 30, 2011, we generated cash flow from operations of approximately $782.7 million, compared to $726.4 million for the same period of the prior year.For the three months ended June 30, 2011, foreign currency movements relative to the U.S. dollar positively impacted net revenues by approximately $116.7 million (net of a $10.5 million negative impact from hedging activities relating to PayPal's net revenue) compared to the same period of the prior year. On a business segment basis for the three months ended June 30, 2011, foreign currency movements relative to the U.S. dollar positively impacted Marketplaces, Payments and GSI net revenues by approximately $93.5 million, $23.1 million and $0.1 million, respectively, compared to the same period of the prior year (net of the impact of hedging activities, noted above).
For the six months ended June 30, 2011, foreign currency movements relative to the U.S. dollar positively impacted net revenues by approximately $129.2 million (net of a $16.9 million negative impact from hedging activities relating to PayPal's net revenue) compared to the same period of the prior year. On a business segment basis for the six months ended June 30, 2011, foreign currency movements relative to the U.S. dollar positively impacted Marketplaces, Payments and GSI net revenues by approximately $106.7 million, $22.4 million and $0.1 million, respectively, compared to the same period of the prior year (net of the impact of hedging activities, noted above).
Marketplaces net transaction revenues earned internationally totaled $758.8 million and $1.5 billion during the second quarter and first six months of 2011, respectively, representing 56% of total Marketplaces net transaction revenues during both periods. Marketplaces net transaction revenues earned internationally totaled $658.4 million and $1.3 billion during the second quarter and first six months of 2010, respectively, representing 56% and 57% of total Marketplaces net transaction revenues during those respective periods. The increase in international net transaction revenues in dollars was due primarily to growth in our existing international markets and foreign currency movements against the U.S. dollar.
Payments net transaction revenues earned internationally totaled $515.6 million and $991.4 million during the second quarter and first six months of 2011, respectively, representing 52% and 51% of total Payments net transaction revenues during those respective periods. Payments net transaction revenues earned internationally totaled $371.0 million and $730.9 million during the second quarter and first six months of 2010, respectively, representing 48% of total Payments net transaction revenues during both periods. The increase in international net transaction revenues was due primarily to the growth of our Merchant Services business and increased penetration on eBay Marketplaces platforms internationally.
Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payments services projects. Capitalized site and product development costs were $44.1 million and $81.0 million in the second quarter and first six months of 2011, respectively, compared to $33.0 million and $60.1 million in the second quarter and first six months of 2010, respectively, and are primarily reflected as a cost of net revenues when amortized in future periods.
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