That Meg Whitman sure knows how to make something out of nothing. It could have been a devastating quarter for Motley Fool Stock Advisor pick eBay
Despite all of the spitballs hurled its way, eBay lived up to its new "Shop Victoriously" ad campaign by coming through with better-than-expected earnings. Revenues surged 30% higher to hit $1.89 billion. Non-GAAP earnings, which back out the Skype charge as well as smaller line items like stock-based compensation, soared 53% higher to $0.41 a share.
The results blew past Wall Street expectations of $0.33 a share in earnings on $1.83 billion in revenues, although the bottom line showing isn't as rosy once you factor out a favorable tax benefit. Pre-tax profits on a non-GAAP basis actually rose by just 25% for the quarter.
It's still healthy growth. It's still a relief.
So what's the secret sauce at eBay.com? Despite a 5% decrease in listings, they are converting better and at higher prices -- $14.4 billion in gross merchandise value swapped hands during the quarter, a healthy 14% advance.
PayPal was another workhorse, with related revenues climbing 35% during the third quarter. Revenue growth at PayPal has actually accelerated throughout the year. Even with Google's
Year-over-year revenue growth is decelerating at Skype, but it's hard to get disappointed when that ultimately means that the top line grew by "only" 96% on an 81% spike in users. (Last quarter's revenue growth was 103%.)
Also worth noting is that this is the second quarter in a row in which international revenues clocked in higher than stateside revenues. eBay is truly a global company. Sure, a killer app like Skype is bigger overseas than it is domestically, but Skype is still a small piece of the revenue mix pie here. This is eBay growing -- on all fronts -- throughout the world.
That might be news to you. Clearly there are major players in foreign markets. Whether it's Gmarket
Sure, eBay is human on the world stage. It bowed out of Japan when Yahoo!'s
If chief executive Whitman can make something out nothing like she did this past quarter, just imagine what she can make out of something.
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Longtime Fool contributor Rick Munarriz is a satisfied eBay user with 172 positive feedbacks to show for it. He does not own shares in any of the companies in this story. He is a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance. The Fool's disclosure policy is not for sale.