By Dow Jones Business News,
July 16, 2014, 04:45:00 PM EDT
EBay Inc. grew its revenue and customer roll in the second quarter, amid a massive security breach and a since-
resolved dispute with activist investor Carl Icahn.
The San Jose, Calif., e-commerce giant reported another profitable period Wednesday, driven by payments unit PayPal,
which Mr. Icahn had wanted spun off.
But the company also offered a somewhat cautious outlook.
EBay said it expects revenue of between $4.3 billion and $4.4 billion for the current quarter and adjusted earnings of
between 65 cents and 67 cents. Analysts polled by Thomson Reuters were looking for $4.42 billion and 70 cents a share.
The company also lowered the high end of its revenue forecast for the year by $200 million, now putting the range at $
18 billion to $18.3 billion. It affirmed its earnings view.
Meanwhile, for the three months ended June 30, eBay posted net income of $676 million, up from $640 million in the
same quarter a year earlier.
Excluding certain expenses, eBay reported earnings of 69 cents a share, which compares with analysts' forecasts of 68
cents on that basis. EBay had said it expected earnings between 67 cents and 69 cents a share.
Revenue rose 13% to $4.37 billion from $3.88 billion a year earlier, in line with eBay's own forecast of a range of $
4.33 billion and $4.43 billion. The payments segment posted a 20% revenue increase to $1.95 billion, while the
marketplaces division grew 8.6% to $2.17 billion.
It was an eventful quarter for eBay. The company in May reported a security breach to its namesake marketplace that it
said could have compromised some information for its 145 million customers. EBay said Paypal was unaffected, but the
breach was a knock to the company's reputation for security.
As well, eBay reached a deal with Mr. Icahn to back off his proposal that the company separate its payments unit; Mr.
Icahn agreed to work with eBay as an adviser.
EBay will have to find a new chief for PayPal after David Marcus, who had run the division for two years, left for an
executive job at Facebook Inc.
Write to Greg Bensinger at email@example.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
Copyright (c) 2014 Dow Jones & Company, Inc.