NEW YORK (TheStreet) - E-commerce giant eBay (EBAY) said its Marketplace business is continuing to dig itself out of a hole, which may prove more a longer and more expensive effort than previously expected. The popular online auction site, however, said performance at its PayPal payments and eBay Enterprise businesses has stabilized.
"Marketplaces has to dig out of a hole...," eBay said in its second quarter earnings press release, which showed that the company earned $4.37 billion in revenue and 69 cents in adjusted earnings per share (EPS).
The popular online auction marketplace said it is "confident" it can work through challenges at its Marketplace division, which earned $2.17 billion in second quarter revenue, a 9% increase from a year-ago. "[I]t will take longer and cost more" to dig Marketplace out of a hole, eBay added.
The San Jose, Calif.-based company did confirm that performance at PayPal and eBay Enterprise has stabilized. "PayPal has good momentum and eBay Enterprise has stabilized," eBay said.
PayPal saw its revenue grow 20% year-over-year to $1.74 billion, its first quarter of 20% revenue growth in the past 12-months. International payments revenue grew 51% in the quarter.
Sales and marketing expenses rose to 19.9% of revenue, up from 18.8% this time a year ago, as a result of investments the company made to deal with a security breach disclosed earlier in May. "The cyberattack clearly impacted eBay's results," CEO John Donahoe said on an earnings call with analysts.