The value of merchandise sold on eBay Inc.’s U.S. marketplace, excluding vehicles, increased 7% year over year in the third quarter, the online marketplace operator said today. EBay also said it attracted 7.3 million new mobile customers during the second quarter, compared with 6.6 million gained in the second quarter of 2014.

EBay in September announced plans to spin off PayPal in 2015. Today’s report shows a 20% year-over-year revenue gain for PayPal in the third quarter.

“Rapidly changing competitive environments in commerce and payments underscore the opportunities for eBay and PayPal, and highlight how each business will benefit from the focus and agility of being an independent company,” says eBay Inc. president and CEO John Donahoe. “PayPal had another strong quarter [and] is on track to process 1 billion mobile transactions in 2014. And eBay continues to focus on enhancing its competitive position, improving the experience for buyers and sellers and investing in consumer engagement. As we prepare to separate eBay and PayPal in 2015, our teams are focused on strong execution to ensure each business is set up for long-term success.”

In a conference call today, chief financial officer Bob Swan said eBay still suffers from the aftermath of an attack in May when hackers accessed a database storing 145 million encrypted passwords and other “non-financial data,” Including consumers’ names, home addresses, e-mail addresses and phone numbers. The company informed consumers that their personal information may have been compromised and asked them to reset their passwords. He said the attack dampened marketplace growth in Q3.

“The majority of users have gone through with a password reset, but the reset is causing friction with our users,” he said during the call. “And one of the second order effects has been that some users have had to reset their password multiple times. We are making adjustments to the login process and increasing customer service to address the pain points.”

EBay also appears to be still feeling the impacts of an update earlier this year to Google Inc.’s Panda search algorithm that represented a further effort by Google to reward high-quality web sites with better rankings in organic search results. EBay’s search traffic dropped as much as 33.0% after the Panda 4.0 update, according to an estimate from search engine optimization services provider Searchmetrics GmbH. “SEO is a relatively small portion of our traffic, but it’s a portion that’s important and in particular brought us new users,” Donahoe said during the call. “So what we’re doing is we’re going to try to do everything we can to put our inventory in a form and format that allows more sustainability of SEO results and so in some way mirrors more structured data approaches. And that means it’s going to take a little longer to do, it’s a little more manual to do.”

For the third quarter ended Sept. 30, eBay reported:

• The value of merchandise sold worldwide on eBay, excluding vehicles, was approximately $20.08 billion, up 9.4% from $18.35 billion a year earlier. About 61% of marketplace sales, or approximately $12.25 billion, came from outside the United States, the same rate posted for the same period last year. That leaves about $6.10 billion in value for U.S. purchases.

• Net revenue for eBay marketplaces this quarter reached more than $2.16 billion, up about 6.4% from $2.03 billion last year.

• EBay marketplaces gained 3.4 million buyers in the third quarter, pushing the number of active buyers to 152 million, up from about 149 million in the second quarter of 2014.

• Active users of eBay’s payment services, which include consumers with PayPal and Bill Me Later accounts, totaled 157 million, up 14% from the same period last year. PayPal, which eBay plans to spin off, gained 4.4 million users in the third quarter.

• PayPal revenue increased 20.4% year over year to $1.95 billion from $1.62 billion. PayPal’s payment volume grew 29.1% to $56.58 billion from $43.84 billion for the same period last year.

• Net revenue from the former GSI Commerce Inc., now named eBay Enterprise, totaled $259 million for the third quarter, up 2.7% from $252 million a year earlier.

• EBay’s net revenue increased 11.8% to $4.35 billion in the third quarter compared with $3.89 billion in the same period last year. 

• EBay says it had a net income of $673 million in the quarter. That compares with net income of $689 million in the same period last year, a 2.3% decline.

For the first nine months of the year, eBay reported:

• Net revenue of $12.98 billion, up 12.7% from nearly $11.52 billion for the same period last year.

• A net loss of $977 million compared with net income of $2.006 billion last year.

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