eBay Inc. (NASDAQ: eBAY) proved again in the first quarter that it's far from death's door. The company reported strong first quarter earnings. Here is a rundown of the conference call. All times are in eastern.

5 p.m. Usual disclosures.

Meg Whitman. The first quarter was a very strong one for the company. Great results across the board., net revenue of $1.7 bln. Top line org growth of 27 percent, expanded operating margins.

Marketplaces business. delivered revenus of 1.25 bln. Payment volumen on paypal rose 30 percent. number of accounts incresaed to more than 143 bln. Merchant services also grew. Skype performed very well, first quarter of profitability. "Optimistic" about the potential of business.

Marketplaces..eBay sites are pefroming, This is putting some pressure on listings and GMV gorwth. (fee hikes).eBay is "agressively" taregeting bad guys. Continue to improve user experience on sites. I'm confident that we've identified the areas we need to focus on to reaccelerate growth rates in the U.,S, and Germany.

Pleased with korea, Stub Hub acquisition. Shopping.com. 29 percent y/y growth, traffic is . Our partnerships with Yahoo and Google are performing well. Outside of US., international ad partnership with Google is on track.

PayPAl had another excellent quarter, 31 percent revenue growth more than 11 bln in volume. Pay Pal has 35 mln accounts in Europe, extremely popular in Germany.

Merchant services is doing well. (My wife uses it for her small business). PayPal continues to grow very nicely. incredibly pleased with the direction and trajectory. Skype is doing well. It is quite early in the life cycle of new products. Now can payments via Skype.For the next several qutres, skype will expand user base and enhance call quality. The compelling combination of our three business. EACh of the business units is making progress in achieving objectives.I am enormously excited and confident about our future

5:19 CFO Bob Swann

OVerall. Q1 was an excellent quarter for the company. Organice revenue was up 21 percent. NON Gaap eps was 33 percent, 3 pennies higher than.. Had benefits from non-GMV. 479 mln in free cash flow up 6 percent from last year. eBay's global gmv was $14.3 bln, up 14 percent.

Added 12 mln new users, including 3 mln from Stubhub. New listings were 588 mln, up 2 percent, Core listings rose and stores decilned (as expected). New listings down 2 percent in US. Internationally listings rose 6 percent. US GMV rose 8 percent to 6.8 bln. Motors reduced growth.

GMV growth was dramatically higher than new lisings, driven by higher selling prices, conversion prices. STrong growth from non-GMV revenue like Shopping.com, classified and advertising. not satisifed with U.S. and Germany growth. UK was strong

Skype, first qtr of non-gaap profit. Adoptoin of paid subscription plans is expanding in US. 7.7 bln minute,s Skype out rose 131 percent versus. Operating margins rose 50 basis points. 564 mln of oprating cash flow, had 3.5 bln in cash and cash equivilents.

guidance, we feel god about our plans for 2007. Q.2. WE are raising gudiance by 150 mln on top line and 50 (?) cents on the bottom line. 2007 reve 7.2-7.45 bln. EPS 1.30-1.34. WE feel good about the outlook for the remainder of the year.

5:36. Q &A starts

Whitman. Technology was strong from an AFP point of view. Nice early results from Motors 2.0.

JPM: 1) color on conversion rates compared 2) active user rate decelerating

Bob: Conversion rates in 4th qtr. saw accelerating conversion rates. we continue to make progress during the first qtr. flat on y/

Meg: Seen a decline in growth rate on active user. We think the most impotrtant lever is experience, search. in process of upgrading search technology.

Lehman: Yahoo/PayPal checkout program. economics on top and bottom line. is yahoo sharing fees.

Bob: The Yahoo relatoinship is an extn of what was ann in june of last year. excited about it. we think that an expansion of paypal will improve economics of

??: Fixed price goods going up as a percentage of GMV.

Whitman: The core of eBay has always been the long tail business. We were the orignial social networking site. WE have so much traffic that comes to the site. WE think we can do both and continue the journey.

Bob: Sales and marketing. as pp and skepy, have a negative imipact on gross margins from their rapid growth., That;s off set by better spending. Sales and marketing was a little bit better than we expected.

Anthony Noto: mP growth rates

Whitman: The no.1 prioriety for the marketplaces business in 2007 is to improve the user experience. WE are working all of these different levers, probablhy more aggressively than we have in recent years.

Thomas Weisel: Active users ex china. robustness of userbase under the age of 35.

Bob: Haven't broken out demographics. Revenue in advertising is doign well.

Whitman: NA is looking developing a product for younger people. Skype is too.

??> How close are you to pulling all of the pieces together to revitizlating site?

MEG: The active user base continues to be active. This is going to be an iteratyive and gradual process. WE have to be very careful in how we introduce changes. cAn't do anything dramatic or risking ``alienating"" user base. we are 20 percent ovf where we would like to be.

Scott Devitt: Sellers are getting higher sell-through. How much of . Higher take rate.

Bob: Clearly what our intentions. WE will continue to get benefit from iimproved conversion rates. The combinatio nof the 2 will accelerate gmv.

Peck: Which is driving revenue per listings?

Meg: The revenue per listing has been driven by conversion rate as well as average selling price. AFP

Merill: Talk about how subscirption model minutes.

Bob: TRaction in north america was better than expected.

Whitman: We are seeing a very nice pickup in subscription plans.

Mehany; Long term margins for Skype

Bob: 20-25 percent over time. We're continue to invest quite a bit in Skype. Our plans are to expand margins year over year and we are off to a great start in the first quarter.