The company reported third quarter net income on a GAAP basis of $597 million, or $0.45 per diluted share, and non-GAAP net income of $718 million, or $0.55 per diluted share. GAAP and non-GAAP net income were up 22% and 14%, respectively, year over year due primarily to strong top-line growth, said the company.
“We had a great third quarter across our company, with Marketplaces and PayPal accelerating customer growth,” said John Donahoe, eBay Inc. President and CEO, in a release. “Mobile continues to be a game changer for us, and we continue to be a clear leader in mobile commerce and payments. With our strong portfolio and global reach, we are consistently demonstrating our capabilities to help consumers shop anytime, anywhere. And we are enabling retailers of all sizes to compete in a rapidly evolving, multichannel commerce environment.”
PayPal ended the quarter with 117.4 million active registered accounts, a 14% increase over the third quarter of 2011. Revenue increased 23% year over year, to $1.4 billion, and net total payment volume (TPV) grew 20% year over year to $35.2 billion.
Marketplaces also saw accelerated user growth. Gross merchandise volume (GMV), excluding vehicles, increased 11% year over year to $16 billion in the third quarter of 2012. Marketplaces revenue increased 9% year over year, driven by strong growth in the United States and Asia Pacific. Active user growth continued to accelerate during the quarter, reaching 10% year over year, the fastest growth since 2007, with 800,000 new users coming from mobile.
GSI revenue increased 12% year over year to $226 million, driven primarily by a 16% year over year increase in global ecommerce merchandise sales. Same store sales grew 19% year over year
This quarter has been a significant one for eBay in terms product strategy and news. The company launched a same-day shipping service called eBay Now, acquired personalized shopping site Svpply, and debuted a new logo. The company also hit some major mobile milestones, with 100 million downloads of its apps. Last week, the company announced a new Pinterest-like redesign.
PayPal is also undergoing a transition. Amidst reports of layoffs, PayPal has been reorganizing its design and product areas as the company battles Square and others. The company has launched a new marketing campaign, with the hope of educating consumers that PayPal is more than just a mobile payments technology. During the past quarter, PayPal acquired Card.io, signed a deal with Discover for processing, and is reportedly in the process of testing a payments pilot at McDonald’s.
For the fourth quarter, eBay expects net revenues in the range of $3.85 billion to $4 billion, with GAAP earnings per diluted share in the range of $0.55 – $0.58 and non-GAAP earnings per diluted share in the range of $0.66 – $0.69. For the full year 2012, eBay expects revenue in the range of $13.95 billion to $14 billion.