Updated from 5:31 p.m. EDT
The online auction house
said Tuesday that second-quarter earnings more than doubled, exceeding Wall Street's expectations, as revenue rose 97%.
For the quarter ended June 30, the San Jose, Calif.-based company posted net income of $13.2 million, or 5 cents a diluted share, excluding some one-time items. Those figures exceed net income of $5.1 million, or 2 cents a diluted share in the second quarter of 1999. Analysts polled by
First Call/Thomson Financial
had forecast earnings of 3 cents a share in the latest quarter. Including noncash and stock related charges, eBay earned $11.2 million, or 4 cents a share, in the second quarter.
Revenue totaled $97.4 million, compared with $49.5 million a year earlier, the company said. Compared to the first quarter, revenue rose 14%, which was higher than analysts had estimated. Sequential revenue growth is becoming a concern as investors focus on the maturation of the Internet sector: Monday,
shares fell even though the company beat second-quarter earnings estimates, in part because of concerns about growth.
In an interview, CEO Meg Whitman said international operations would be a major growth engine going forward. eBay added listings fees to its U.K. site on (appropriately) July 4, and she said a similar pattern followed as in Germany: The number of items on the site went down, but the percentage of things sold went up. eBay's Australian site currently has no listings fees, but those will be added "soon," she said.
In terms of potential international acquisitions, Whitman said there were few existing businesses with traction -- that is, with a lot of sales being done as opposed to simply high page views, suggesting the company may focus more on building from the ground up. Domestically, Whitman said there may be acquisition opportunities (the company completed its purchase of
this month). "There are lot of companies with great concepts and great management teams to be acquired that a year ago wouldn't have been acquired," she said.
Revenue from online activities were $87.9 million, compared with $38.2 million in the second quarter 1999. Revenue from off-line activities fell slightly, the company said.
The company said it hosted 62.5 million auctions, compared to 24.3 million auctions in the year-ago period. Gross margins were 76% compared with 73% in the first quarter of 2000.
In a conference call with analysts, eBay executives said they are "comfortable" with current expectations for full-year earnings -- 17 cents a share, according to
First Call/Thomson Financial
. Whitman added the company is also comfortable with revenue estimates. Analysts also said the company is shifting its focus to emphasize big-ticket items like automobiles. That change, one analyst noted, could affect the usefulness of direct comparisons to the prior year's sales and earnings figures.
eBay shares rose almost 2, to 58 1/16, in after-hours trading, according to
. In regular action, eBay had closed up 1 1/8, or 2%, at 56 1/4.