Auction site eBay is rolling in riches as its online business continues to boom. Revenue for the second quarter ended June 30, 2012 spiked 23 percent year-over-year to $3.4 billion, eBay said. Second quarter income on a non-GAAP basis reached $730 million, up 16 percent compared to one year ago, while GAAP income hit $692 million. PayPal is a big reason why eBay is doing so well these days.
By acquiring PayPal, eBay is able to double-dip its commissions from auction sales by sellers who accept the online payment service. PayPal now has over 113 million active registered users, which is 13 percent more than it had last year. The end result is that PayPal revenue is skyrocketing, jumping 26 percent compared to last year, "driven primarily by increased penetration on eBay," the auction site stated in its Q2 report .
Going forward, eBay sees big potential in tapping into the mobile market.
"Mobile continues to be a game changer. We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 -- that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few short years ago," eBay said.
For the full year, eBay expects to close out 2012 with anywhere from $13.8 billion to $14.1 billion in net revenue.