PayPal Revenues Exceed $1 Billion For 2005

The following highlights regarding PayPal's fourth quarter financial performance were included in eBay's results:

• Payments net revenues grew to $297.7 million, an increase of 48 percent compared to the same quarter last year and up 23 percent compared to the prior calendar quarter.

• PayPal's user accounts grew to 96.2 million accounts, up 51 percent year over year. Active accounts were 28.1 million, up 39 percent year over year.

• Total gross payment volume handled by PayPal grew to $8.1 billion, up 45 percent year over year.

• Total number of PayPal payments grew to 139.7 million, up 40 percent year over year. 69 percent of PayPal's payments were eBay-related compared to 71% last year.

• PayPal revenues represented 3.67% percent of gross payment volume, up 10 basis points from 3.57% last year.

• PayPal expenses included a transaction processing expense rate of 1.09%, down 18 basis points from 1.27% year over year. PayPal's expenses include the funding costs associated with card payments use to make payments via PayPal.

• PayPal losses were 33 basis points, up slightly from 31 basis points last year and 24 basis points in the prior calendar quarter.

PayPal's results don't include the recently acquired (from VeriSign) payment gateway business.