Revenues soar at eBay

San Jose, Calif. — eBay announced that revenue for the fourth quarter ended Dec. 31 increased 35% to $3.4 billion, compared with the same period of 2010. The company reported fourth quarter net income on a GAAP basis of $2 billion, or $1.51 per diluted share, and non-GAAP net income of $788.6 million, or 60 cents per diluted share. The year-over-year increase in the fourth quarter GAAP earnings per diluted share was driven primarily by a gain on the sale of the company's remaining investment in Skype. The year-over-year increase in the fourth quarter non-GAAP earnings per diluted share was driven primarily by strong top-line growth and improved productivity partially offset by a higher tax rate.

For the full year, revenue increased 27% to $11.7 billion, compared to 2010. The company generated net income on a GAAP basis of $3.2 billion, or $2.46 per diluted share, and non-GAAP net income of $2.7 billion, or $2.03 per diluted share.

“We had a strong fourth quarter finish to an excellent year, increasing our confidence in our three-year outlook,” said eBay Inc. president and CEO John Donahoe. “Across eBay, PayPal, GSI and X.commerce, we have a robust portfolio of global commerce platforms and innovative mobile, local and social commerce technology assets. We are well-positioned to compete in the emerging new retail environment, and to help retailers of all sizes grow and engage their customers anytime, anywhere. We are a different eBay today, no longer just an ecommerce leader but a stronger, more diverse global commerce company shaping the future of shopping and payments.”

The company said it expects net revenues for the first quarter of 2012 to be in the range of $3.05 billion to - $3.15 billion with GAAP earnings per diluted share in the range of 37 cents to 38 cents and non-GAAP earnings per diluted share in the range of 50 cents to 51 cents.

Full year 2012, eBay expects net revenues in the range of $13.7 billion to $14 billion with GAAP earnings per diluted share in the range of $1.76 to $1.81 and non-GAAP earnings per diluted share in the range of $2.25 to $2.30.