Its stock has been showing strong performances and now eBay is planning to be even more aggressive in earning shares of how you spend your online dollars.
In a company-held meeting for the financial community, eBay outlined its three-year growth plans for the company’s global PayPal and eBay Marketplaces businesses. The company projected double-digit annual revenue and earnings growth for 2011-2013, with revenues expected to reach at least $13 billion in 2013 compared to approximately $9 billion in 2010.
eBay said it expects that the anticipated revenue growth over the next three-year period will be driven by:
- Continued strong global momentum at PayPal
- Sustainable, profitable growth at eBay
- Supporting growth in its two core businesses, the company said it intends to accelerate innovation in emerging mobile, local, social and digital commerce trends. The company is a leader in mobile commerce, with more than 30 million downloads of its mobile applications, and eBay mobile gross merchandise volume is expected to double to $4 billion in 2011.
- The company also plans to use its global commerce and payments capabilities to create an open commerce platform. The company intends to accelerate innovation for merchants – from sole proprietors to large retailers. The company says open commerce platform capabilities enabled by eBay will help merchants of all sizes compete in a “new retail” environment where online and offline shopping is converging into a seamless experience. Consumers increasingly expect to be able to shop anytime, anywhere, for the best deals and selection on whatever they want.
“New rules of retail are being written today,” said eBay Inc. President and CEO John Donahoe. “Online and offline commerce are changing and converging, and technology is dramatically influencing how consumers connect, shop and pay. We are at the forefront of shopping innovation. We believe we have core businesses, platforms and assets that strongly position us to compete, win and lead on a global scale. We are confident that we will lead the next generation of commerce.”
Based on current business trends and expectations, the company provided the following financial outlook for 2011-2013:
- Total company revenues are expected to reach $13 billion to $15 billion in 2013, up from $9.2 billion in 2010
- The company expects compound annual non-GAAP earnings growth of 10-14 percent.
- Free cash flow is anticipated to be between $7.5 billion and $8.5 billion and operating cash flow is expected to be between $10.0 billion and $11.3 billion over the three-year period from 2011-2013.
- PayPal is expected to significantly increase revenue to $6 billion to $7 billion in 2013, driven by consumer preferences, market expansion, and innovation in the areas of mobile, digital, social and local.
- The company’s eBay Marketplaces business is expected to achieve revenues of $7 billion to $8 billion in 2013, driven by technology-led innovation and tailored customer experiences that enable buyers and sellers to connect around the world.