On the Call: EBay CEO John Donahoe

EBay Inc. reported better-than-expected results for the first quarter on Wednesday, helped by strength in its marketplaces division, which includes its namesake website, as well as growth in its PayPal payments service.

In a conference call with analysts following the earnings report, CEO John Donahoe talked about the opportunities he sees in mobile devices.

QUESTION: John, you mentioned from the growth coming from mobile. I was wondering if you could just parse that out a bit more and talk about the differences in consumer behavior on tablets versus smartphones and really how that’s driving.

ANSWER: (Mobile is) fundamentally changing the retail landscape. And, you know, there’s no going back. And it’s sort of stunning to see. And I’m thrilled we’re at the front end of that in sort of two ways: One, having applications and products that allow you to actually close a transaction on a mobile device, and so eBay mobile volume continues to just be on fire. PayPal mobile Payments volume continues to be on fire. And so consumers are using their mobile devices to shop and to pay and our applications are compelling, and I think we will — we will certainly beat some of the goals we set out for the year on those two fronts.

The other story, though, is consumers are using mobile devices as part of their shopping experience even if they don’t actually close the transaction on a mobile device. And some of the innovations that we’re driving and doing I think are quite interesting on that front …

… I think the innovation around mobile is actually just beginning. It’s some of the location-based capabilities that these mobile devices enable are going to have impact on shopping and paying. PayPal Here, that check-in feature, which allows a small retail or small merchant to know you by name and by face when you come in. I think the visual search capabilities and the visual recognition will have an impact on our fashion experience and on shopping. And so we’re doubling down on our mobile investment and feel very good about the innovations that are happening and are finding a growing number of retailers and merchants are coming to us saying “Can you help us in this mobile world?” So it’s fun, and it’s not going away.

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