Online marketplace eBay has forecast fourth-quarter revenue that may miss some analysts' estimates as sales growth slows heading into the holiday season.
Revenue in the current quarter will be $3.85 billion to $4 billion, eBay said in a statement, below an average analyst projection of $3.94 billion.
The company forecast profit excluding some items of 66 cents to 69 cents a share, versus a 68-cent estimate.
Chief executive John Donahoe has been spending money on mobile technology, marketing campaigns and a website redesign, seeking to take EBay beyond its online auction roots.
The company has added retail partners, improved search and made shipping faster.
ebay said comparable sales rose 21 per cent in September from a year earlier, less than the 24 per cent recorded in August.
eBay forecast an "OK" holiday season in an earnings presentation to analysts yesterday, similar to language it used a year ago.
US online retail sales growth will slow to 12 per cent during the holiday season this year, compared with a 15 per cent jump in 2011, the Washington-based National Retail Federation said.
Shares of eBay were little changed in extended trading after closing at $48.20 in New York yesterday. The stock is up 59 per cent this year.
eBay made changes in the third quarter that targeted convenience and customer service. The company paired up with Geek Squad this month to offer 24-hour technical support for electronics sold on the site, and released an application called eBay Now that offers customers same-day delivery.
Mobile app downloads have reached 100 million globally, and there are more than 2 million items sold a week from mobile devices.
"More and more consumers are trying our products for the first time and they like what they see," Mr Donahoe said in an interview. "Mobile is becoming a central control system in people's lives."
Net income in the third quarter rose to $597 million, or 45 cents a share, from $491 million, or 37 cents, a year earlier, the company said. Third-quarter revenue climbed 15 per cent to $3.4 billion, the company said.
eBay is trading at 21 times projected earnings, compared with 15 for Target Corp. and 16 for Wal-Mart Stores. Amazon.com, which traditionally carries a much higher valuation, is trading at 338 times earnings.
Amazon's sales growth rate also slowed to 37 per cent in September from 41 per cent in the prior month.
Bloomberg