In addition, management may make forward-looking statements related to our future performance that are based on our current expectations, forecasts and assumptions, and involve risk and uncertainties. These statements include but are not limited to statements regarding expected financial results for the third quarter and full-year 2010, and future growth in the marketplaces and payments businesses.Our actual results may differ materially from those discussed in this call for a variety of reasons including but not limited to the continuation or worsening of the global economic downturn; changes in political, business, and economic conditions; foreign exchange rate fluctuations; the impact in integration of recent and future acquisitions; our increasing need to grow revenues from existing users in established markets; an increasingly competitive environment for our businesses; the complexity of managing increasingly large enterprise with a broad range of businesses; our need to manage regulatory, tax, IP, and litigation risks, including risks specific to PayPal, Bill Me Later, and the financial industry; and our need to upgrade our technology and customer service infrastructure at reasonable cost while adding new features and maintaining site stability. You can find more information about factors that could affect our operating results in our most recent annual report on our Form 10-K and our subsequent quarterly reports on Form 10-Q available at investor.ebayinc.com. You should not unduly rely on any forward-looking statements and we assume no obligation to update them. All information in the presentation is as of July 21, 2010, and we do not intend and undertake no duty to update this presentation. With that, let me turn the call over to John. John Donahoe Thanks Tracey, and good afternoon everyone and welcome to our Q2 earnings call. Today, I’ll talk about our results for the quarter and our progress toward achieving our growth objectives. Bob will then give more details on the numbers and our guidance and we’ll take questions.
I want to begin by reminding you of our strategic goals. We’re positioning PayPal to be the leader in global online payments and we’re positioning eBay to continue as a leader in e-commerce with competitive strength as the world’s largest online marketplace for secondary or off-price new and pre-owned merchandise.And we’re working toward achieving these goals in three ways. First, we’re becoming a more customer-driven organization. We have three clear customer metrics, net promoter score, velocity and market share, and we’ve tied a portion of management’s compensation to customer satisfaction. Second, we’re becoming a more technology-driven company with an increasing commitment to innovation. Our efforts in mobile, platform and the launch of products such as our fashion vertical illustrate our commitment and increasing pace of innovation. And third, we’re operating more efficiently. We’re taking $2 billion out of our cost structure over a three-year period and reinvesting in our growth priorities. Now our Q2 results, both revenue and earnings exceeded our guidance. Excluding Skype, revenue increased 15% and non-GAAP EPS was up 18% year-over-year. PayPal continued its strong revenue and total payment volume growth and eBay’s turnaround continued with progress in key metrics. We continue to focus on delivering strong financial results, managing a healthy balance sheet and making the necessary investments to satisfy our customers and compete and win. Our Q2 results also demonstrate the global strength and increasing diversity of our company. Almost 60% of the eBay marketplace revenue was generated outside the U.S. and more than 60% of PayPal’s total payment volume comes from our Merchant Services business off of eBay. The diverse nature of our portfolio gives us the ability to balance opportunities and challenges across our businesses and geographies. Now let’s take a look at the results from each business unit. PayPal had another great quarter. We added 1 million new accounts each month during Q2 and PayPal now has 87 million active accounts. Penetration on eBay continued to increase and our merchant services business grew over 40% for the third quarter in a row. Overall, PayPal continues to grow significantly faster than global e-commerce and gain share as the leading online payment method. Read the rest of this transcript for free on seekingalpha.com