eBay Profits Jump 22% Under New CEO

Site raises projected revenue to $9B, exceeds estimates
By Zach Samalin,  Newser Staff
Posted Apr 16, 2008 6:50 PM CDT
EBay's first quarter profits soared 22%, and revenue rose 24%, marking new CEO John Donahoe's first quarter in the cockpit. The company also raised its 2008 projected earnings to $9 billion.   (AP Photo/Paul Sakuma)
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(Newser) – EBay's revenue soared 24% in the first quarter, the Wall Street Journal reports, with profits up 22%. Fueled by continued success with its online auction business and PayPal, its online-payment component, the company also raised its projected 2008 earnings to $8.7 billion to $9 billion, well beyond Wall Street expectations.

The figures bode well for new CEO John Donahoe, who came aboard in February pushing customer-service improvements and a new fee structure. The auctioneer's 19% revenue growth, however, primarily came from advertising, with active users showing an all-time low 1% increase. All told, the company netted $459.7 million in the first quarter, up from $377.2 million for the same period in 2007.