eBay’s 2Q Results Don’t Meet Reserve Price

eBay is apparently feeling the effects of the slumping economy, as its second-quarter financial results were down across the board.

The online-auction site posted revenue of $2.098 billion, down 4% from $2.196 billion in the second quarter of 2008. Net income on a GAAP basis was $327.3 million, or $0.25 per diluted share, down 29% from the year-ago period, and non-GAAP net income of $478.6 million ($0.37) was down 16%. GAAP operating margin fell to 19.6% from 24.8%, and non-GAAP operating margin slipped from 31.9% to 28.7%.

eBay president and CEO John Donahoe said:

We drove solid second-quarter results, with strong momentum and market-share gains at PayPal and continued stabilization in our core eBay business. We are managing our business with focus and discipline, delivering on our commitments while investing in our growth priorities. I’m pleased with our pace, our progress and our performance.

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