Thursday, February 10, 2011

eBay Sees $13B to $15B Revenue In 2013

eBay (EBAY) this afternoon disclosed, at the conclusion of its analyst day meeting, that it intends to increase annual revenue 63% by 2013, from $9.2 billion last year to a range of $13 billion to $15 billion by 2013, consisting of $6 billion to $7 billion in PayPal revenue and $7 billion to $8 billion in Marketplace revenue that year.

That is above the roughly $13.14 billion in revenue the Street has been projecting for 2013. eBay also said it is targeting compounded annual growth in earnings per share of 10% to 14%.

The company said growth in its core PayPal and Marketplace businesses would be complimented by an acceleration of its “innovation in emerging mobile, local, social and digital commerce trends.” eBay said its mobile gross merchandise volume will double this year to $4 billion.

eBay also said growth would be aided by the creation of “an open commerce platform” around the world for merchants.

The company projects $7.5 billion to $8.5 billion in free cash flow in the period 2011 to 2013, or roughly $2.5 billion to $2.8 billion per year, on average. To put that in context, the company made $2 billion in free cash flow in 2010, down from $2.3 billion in 2009.

eBay shares were up $2.54, or 8%, at $34.49 during the regular session, and are unchanged in late trading.

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