Ebay (ticker symbol EBAY) has reported its’ first quarter financial results. The company said Wednesday that its first-quarter revenue climbed 16% from a year earlier to $2.5 billion, while profit rose 20% to $475.9 million. The company also raised its full-year earnings forecast, projecting revenue of $10.6 billion to $10.9 billion, up from a previous estimate of $10.3 billion to $10.6 billion. Gross merchandise volume, not the growth engine for Ebay it once was, showed improved results over the year ago quarter while its’ PayPal payment unit showed strong growth with a 23% revenue increase.

EBay Inc. is showing signs of progress as the online marketplace nears the completion of Chief Executive John Donahoe’s three-year turnaround plan. According to an item in today’s Wall Street Journal (wsj.com), eBay has taken steps to improve the shopping experience on its website: It revamped its search engine, cleared website clutter and introduced a shopping-cart feature. The company also changed its fee structures to draw more business from heavy sellers and to encourage them to offer free shipping, a common feature for many online retailers. Analyst John Aiken of ITG Investment Research said the marketplace turnaround has taken longer than expected, but “we are starting to see some signs of life.”

Despite the good news, the market seems unimpressed. The shares, up over 40% for the past 12 months, opened slightly higher today but are currently trading below yesterday’s close at $33.75.