eBay has released its third quarter financial report, and despite selling Skype last year, its revenue and net income increased, thanks to the strong growth of its PayPal division.
In Q3 2010, eBay made $2.238 billion in revenue, up 1% from $2.249 billion in Q3 last year. If you exclude the Skype sale, eBay's revenue actually increased by 10%. Overall net income jumped by 23% to $432 million on a GAAP basis. If you exclude GAAP, then net income rose by 6%, from $502 million in Q3 2009 to $531 in this year's Q3.
That's not the real story in these financial numbers, though. What's really eye-popping is the breakdown of the company's revenue. While its long-standing marketplace business generated $1.41 billion in revenue, PayPal's revenue rose by 22% to $838 million. That's 37% of eBay's total revenue Q3, and the amazing thing is that PayPal's on track to become the company's number-one revenue driver in the next few years.
Last quarter, eBay generated $2.215 billion in revenue, up 6% from Q2 2009. Again, that revenue growth can be attributed to PayPal, which also grew by 22% in the last quarter to $817 million in revenue.