First quarter net income earnings for online marketplace eBay (News - Alert) grew by 20 percent. As a result, its stock price increased by 44-cents a share on Wednesday. John Donahoe, CEO of eBay, called it an “excellent start” to 2012.

Revenue grew by 29 percent in the first quarter, exceeding analyst’s expectations. Total first quarter revenues reached $3.28 billion, up from $2.55 billion a year ago. eBay’s total net earnings reached $570 million during the first quarter of 2012, which represents an increase of eight-cents per share compared to last year.

A successful start to 2012 for eBay-owned PayPal (News - Alert), as well as improvements to the eBay shopping experience at its website, have fueled the growth for the company this first quarter. PayPal experienced a 32 percent growth in revenue during this time span, and the number of PayPal accounts grew 12 percent to a total of 109.8 million.

The eBay marketplace grew its business by 11 percent to $1.73 billion last quarter, with ticket purchases at StubHub and products in the fashion category leading the way in terms of sales. Donahue stated in the company’s press release the company has “turned a corner, shifting from defense to offense.” He added, “Our efforts to make the shopping experience on eBay faster and easier are paying off.”

PayPal’s new mobile payment solutions allow brick and mortar stores the ability to accept payments via credit card, PayPal account or personal check using a mobile phone. Donahue stated “We see enormous opportunity for PayPal, online, on mobile devices, and increasingly in the offline environment as well.” PayPal also partnered with Home Depot recently to allow customers to pay for products using their PayPal account at the home improvement store. eBay expects to expand this program.

eBay is expecting adjusted earnings of 53 to 55 cents per share this quarter, while analysts forecast adjusted earnings to reach 55 cents per share.