With an eye to more acquisitions, eBay also disclosed it had repatriated funds held abroad, adding $6 billion to its U.S. cash position. Ebay also reports attracting 6.5 million new mobile consumers in the first quarter.
The value of merchandise sold on eBay Inc.’s U.S. marketplace, excluding vehicles, increased about 11% year over year in the first quarter, the online marketplace operator said today. EBay also said it attracted 6.5 million new mobile customers during the first quarter.
The company also announced that it had brought back to the U.S. $9 billion in cash from foreign accounts, leaving $6 billion to invest in the U.S. after putting aside $3 billion for tax obligations.
Chief financial officer Bob Swan told analysts that the cash gives eBay the flexibility to take advantage of any acquisition opportunities that arise. "We're seeing growing opportunities in the U.S.," Swan said, according to a transcript from SeekingAlpha. "We're an acquisitive company and we need to ensure we have the resources available to capitalize on targets that become available both domestically and abroad." He emphasized, however, that the company was not announcing any specific plans for acquisitions.
For the first quarter ended March 31, eBay reported:
CEO John Donahoe told analysts that eBay plans to announce a new promotional campaign for PayPal that will include digital marketing and some TV advertising. The campaign, called "Powering The People Economy" will air this summer and fall in the U.S., the U.K., Germany and Australia. In tandem with the campaign, PayPal also revealed a new logo.
Asked about the rollout of PayPal to offline locations, Donahoe emphasized PayPal's use in restaurants rather than retail stores. "The first places where you're seeing mobile technology used in the physical world are around the sharing economy, where it's providing a real consumer benefit, and around restaurant and other areas that have lines." He said eBay in the past year has enabled consumers to use PayPal to pay for orders in advance and from tables in restaurants, which he described as "experiences that were significant improvements from simply swiping a card."