Thaindian News

SAN JOSE, CALIFORNIA (BNO NEWS) — eBay Inc, a California-based online auction and shopping website, on Wednesday reported fourth-quarter revenue of $2.4 billion, up 16 percent from the same period last year.

The multi-billion dollar revenue also includes $112.0 million from Skype for the period it was fully owned by eBay Inc. Skype, a software application that allows users to make voice calls over the internet, was partly sold to a group of investors in September 2009.

The increase was primarily due to excellent growth in PayPal, a business that allows money transfers to be made through the internet, and StubHub, a service which acts as an online marketplace for buys and sellers of tickets for sports, concerts, theaters and other entertainment events. Improvement in growth rates in the core eBay business as well as the positive impact from foreign currency movements made 2009 a profitable year for the company.

eBay Inc. reported a net income on a GAAP basis of $1.4 billion, or $1.02 per diluted share, and non-GAAP net income of $585.8 million, or $0.44 per diluted share, for the fourth quarter of 2009, which ended on December 31, 2009.

For the full year, eBay Inc. posted $8.7 billion in total revenue, net income on a GAAP basis of $2.4 billion or $1.83 per diluted share, and non-GAAP net income of $2.1 billion, or $1.58 per diluted share.

Its GAAP operating margin decreased to 7.6% for the fourth quarter, compared to 22.3% for the same period last year. The year-over-year decrease in GAAP operating margin was due primarily to the impact from a settlement agreement between Skype, Joltid and entities controlled by its founders. Non-GAAP operating margin decreased to 29.3% for the quarter, compared to 32.8% for the same period last year. The decrease in non-GAAP operating margin was caused in part by recent acquisitions and the company’s continuing shift in the mix of its businesses, partially offset by productivity gains.

eBay Inc. said it generated $770.6 million of operating cash flow and $597.7 million of free cash flow during the fourth quarter.

“We delivered a strong fourth quarter with double-digit revenue growth driven by exceptional performance at PayPal and turnaround progress and momentum in our core eBay business,” said John Donahoe, President and CEO of eBay Inc. “Paypal significantly expanded its presence globally and, for the first time, processed more than $20 billion in total payment volume in a quarter. Gross merchandise volume and sold items, accelerated for the third consecutive quarter. We are starting 2010 with significant progress against our three-year growth strategies for PayPal and eBay and a clear focus on our priorities going forward.”