Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Second quarter revenue at PayPal, the online payment service, reached $53.8 million, up 173% from the year-earlier period. The number of registered accounts rose 4% to 17.8 million.
PayPal Inc., the online payment service, reported today a surge in revenue for the second quarter ended June 30, to $53.8 million, up 173% from the year-earlier period. Driving revenue growth was a steady increase in PayPal’s number of registered accounts, which rose 4% to 17.8 million in the second quarter from 15.3 million a year ago.
"We continue to see broad adoption in e-commerce, both auction and fixed-price in the U.S. and internationally," said Peter Thiel, co-founder and CEO of PayPal.
PayPal said it expects growth to continue into the next quarter, estimating third-quarter revenues to range from $56 million to $57 million.
Profits also rose. PayPal reported second-quarter net income of $529,000, compared to a year-ago net loss of $27.7 million. It noted that pro forma after-tax net income, which excludes special charges related to stock-based compensation and non-recurring expenses, amounted to $5.7 million, compared to a pro forma net loss of $7.2 million a year ago.
The company said it expects to continue its growth in the 38 countries in which it operates. It said 23% of payment volume in the second quarter involved at least one party outside the U.S., compared to 10% for the same period last year and 20% for the first quarter of 2002.
San Jose, CA-based eBay Inc. is acquiring PayPal and it expects that acquisition to be completed before year-end. Indeed, PayPal says its presence as an eBay payment service continues to grow. It said about 75% of eBay auctions listed PayPal as a payment option in the second quarter. To support this trend, PayPal has launched new features on eBay, including Auction Finder, which allows winning bidders to pay for multiple purchases at once, and Winning Bidder Notification, which encourages successful bidders to use PayPal.