EBay's first quarter revenue increased 15.9 percent, and current quarter forecasts continue to increase

EBay has released its wildly successful first quarter results, and is predicting a favorable second quarter as well. 

For two years, eBay has been revamping its auction and shopping website in an effort to compete with online retailers like Amazon. EBay was popular during the dotcom boom, and as time went on, it gradually lost that popularity. 

But now, things are really turning around for eBay. At an investor meeting earlier this year at eBay's headquarters in San Jose, California, executives reported that shares of eBay increased nearly 8 percent after announcing that PayPal revenue could double in as little as two years. In addition, eBay has stayed relevant by releasing a new mobile app that allows scan technology to compare prices on a mobile device, and users can then checkout securely with PayPal. According to eBay, attempts like this would increase adjusted earnings per eBay share by 10 to 14 percent by 2013 on total revenue of $13 billion to $15 billion.

EBay has also struck a few deals in order to stay in the online shopping ring. For instance, eBay just made a $2 billion purchase of e-commerce services firm GSI Commerce in March in an effort to persuade more businesses to use eBay to sell to customers.  

Now, all of these attempts have proved to be beneficial to eBay. Its first quarter results ending March 31 of this year showed that revenue rose 15.9 percent to $2.55 billion, and the net income was $476 million, or 36 cents per share. One year earlier, the net income was $398 million, or 30 cents per share.  

Also, the number of active users grew 5 percent during the first quarter, and eBay expects to pass 100 million users during this quarter. 

The marketplaces revenue increased 12 percent in the first quarter, and was higher than any other quarter last year. In addition, PayPal revenue increased by 23 percent. 

As far as the current quarter goes, eBay expects adjusted earnings of 45 cents to 46 cents per share on revenue between $2.55 billion and $2.65 billion. EBay predicts $1.93 to $1.97 per share on revenues of $10.6 billion to $10.9 billion for all of 2011.  

"We're focused on redefining retail and leading the next generation of commerce and payments," said John Donahoe, eBay chief executive. 

Wall Street predicted first quarter revenue of $2.48 billion, and predicts 46 cents per share on revenues of $2.52 billion. 

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