On April 18, eBay (NASDAQ:EBAY) released earnings for the first quarter ended March 31.

  • To dig deeper into eBay's business divisions, including PayPal and Skype, read our earnings take.
  • Revenues increased by 27.2% to $1.8 billion, driven by growth across all sectors. Sales at Skype, which drives the communications division, increased 123% year over year.
  • eBay has a three-star rating in Motley Fool CAPS, our free interactive stock database, beating out other Internet giants Amazon.com (NASDAQ:AMZN) and Yahoo! (NASDAQ:YHOO), which carry CAPS ratings of one star and two stars, respectively.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$1,768.1

$1,390.4

27.2%

Net Profit

$377.2

$248.3

51.9%

EPS

$0.27

$0.17

58.8%

Diluted Shares

1,384.3

1,437.5

(3.7%)

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

77.7%

79.6%

(1.9)

Operating Margin

26.5%

23.2%

3.3

Net Margin

21.3%

17.9%

3.5

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$3,284.3

$2,704.5

21.4%

Accounts Rec.

$380.5

$318.9

19.3%

Inventory

N/A

N/A

N/A

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$122.5

$101.2

21.1%

Long-Term Debt

$0.0

$0.0

N/A

Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$564.5

$584.2

(3.4%)

Capital Expenditures

$85.4

$133.6

(36.1%)

Free Cash Flow

$479.1

$450.6

6.3%

Free cash flow is a Fool's best friend.

Related Foolishness:

eBay, Amazon.com, and Yahoo! are picks of our Stock Advisor newsletter.  To see other recommended Internet companies, try a free 30-day trial of the service. It's only a few clicks away.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.