- Revenue of $2.5 billion, up 5%
on an as-reported basis and up 5% on an FX-Neutral basis
- Gross Merchandise Volume of $18.0 billion, up 2% on an as-reported basis
and roughly flat on an FX-Neutral basis
- GAAP and Non-GAAP earnings per diluted share of
$2.46 and $1.03, respectively, on a continuing operations
basis
- GAAP and Non-GAAP operating margin of 18.2% and
26.4%, respectively
- Returned $783 million to
shareholders in Q3, including $651
million of share repurchases and $132
million paid in cash dividends
SAN
JOSE, Calif., Nov. 7, 2023
/PRNewswire/ -- eBay Inc. (Nasdaq: EBAY), a global commerce leader
that connects millions of buyers and sellers around the world,
today reported financial results for its third quarter ended
September 30, 2023.
"We delivered another quarter of solid results, and have
accelerated the pace of innovation across eBay," said Jamie Iannone, Chief Executive Officer at eBay.
"The strategic investments in our marketplace and the team's strong
execution are driving increased customer satisfaction, especially
in focus categories. In the face of macroeconomic uncertainty, we
continue to make meaningful progress against our ambitious vision
to reinvent the future of ecommerce for enthusiasts."
"In Q3, we met or exceeded expectations across all of our key
financial metrics," said Steve
Priest, Chief Financial Officer at eBay. "Our strong balance
sheet and operational rigor enable us to adapt to the evolving
changes in this dynamic macro environment. We will continue to be
prudent with cost efficiencies, saving to invest for the future,
while remaining good stewards of capital for our shareholders. I'm
proud of our teams for laying the groundwork for long-term,
sustainable growth."
Third Quarter Financial Highlights
- Revenue was $2.5 billion, up 5%
on an as-reported basis and up 5% on a foreign exchange (FX)
neutral basis.
- Gross Merchandise Volume (GMV) was $18.0
billion, up 2% on an as-reported basis and roughly flat on
an FX-Neutral basis.
- GAAP net income from continuing operations was $1.3 billion, or $2.46 per diluted share.
- Non-GAAP net income from continuing operations was $545 million, or $1.03 per diluted share.
- GAAP and Non-GAAP operating margin was 18.2% and 26.4%,
respectively.
- Generated $862 million of
operating cash flow and $777 million
of free cash flow from continuing operations.
- Returned $783 million to
shareholders, including $651 million
of share repurchases and $132 million
paid in cash dividends.
Business Highlights
Revenue Initiatives
- eBay's first-party advertising products, primarily driven by
Promoted Listings, delivered $345
million of revenue in the third quarter, up 39% on an
as-reported basis and up 36% on an FX-Neutral basis.
- The company's total advertising offerings generated
approximately $366 million in revenue
in the third quarter, representing roughly 2.0% of GMV.
Strategic Initiatives
- Following the success of the eBay Guaranteed Fit program in the
U.S., the company launched similar programs in the U.K. and
Germany, enabling tens of millions
of Motors Parts & Accessories shoppers to buy auto parts with
confidence.
- eBay Motors partnered with several renowned car builders to
produce over 70 pieces of content for @eBay's TikTok channel,
building awareness of eBay Guaranteed Fit and engaging with the
#CarTok community.
- The company introduced a new consignment service, which gives
users direct access to expert sellers who will list and sell their
luxury items on their behalf. Launching initially for designer
handbags, the service is expected to expand next year to include
additional luxury categories, including jewelry and watches.
- eBay expanded Authenticity Guarantee for fine jewelry to the
U.K. and hosted The Authenticity Lab, a first-of-its-kind
multi-sensory experience for sneakerheads in London.
- During the quarter, eBay authenticated its millionth trading
card: a Magic: The Gathering All Hallow's Eve (Legends) card.
- eBay also expanded its vault offering for collectors with a new
submission service for trading cards, which allows collectors to
submit graded trading cards valued at $250+ from their personal
collections directly to the eBay vault, regardless of where they
were purchased.
- eBay launched the first phase of its magical listing
experience to all mobile app users in the U.S., U.K. and
Germany, enabling sellers to use
generative AI (GenAI) to instantly populate item descriptions.
- The company also launched two GenAI features in the eBay Motors
app, providing upgrade recommendations and engine code lookup for a
more personalized shopping experience.
- eBay and self-professed "Air Fryer King" Nathan Anthony opened the U.K.'s first air fryer
restaurant in Shoreditch, offering a 12-plate tasting menu of
dishes cooked using only refurbished air fryers from eBay to
highlight the value and quality of refurbished kitchen
technology.
- The company launched eBay Lokal in Germany, a new buying and selling experience
for purchasing and selling products within local neighborhoods.
Through this initiative, eBay has significantly enhanced the
visibility and discoverability of locally available items in search
and across the entire German platform, including the introduction
of a new central page dedicated to local search and browsing.
- eBay France launched a repair
platform to help customers extend the lifespans of their household
appliances, gardening equipment, tools and high-tech products. The
service includes diagnostics, repair tutorials and access to
experts through chatbot and video assistance.
Impact
- eBay announced the recipients of its fourth annual Up &
Running Grants program, which annually awards 50 U.S. sellers with
$10,000 each plus customized
mentorship, training and tools to scale and grow their
businesses.
- The eBay Foundation announced its 2023 Global Give grantees,
awarding nearly $3 million to 32
nonprofit grantees across the globe.
- eBay Australia announced the
Circular Fashion Fund, supported by the Australian Fashion Council.
The initiative offers 200,000 AUD in funding for Australian
start-ups specializing in circular fashion solutions.
- During the quarter, eBay for Charity contributed $40 million globally.
- The company was recognized as a Top Corporate Philanthropist by
the Silicon Valley Business Journal and San Francisco Business
Times.
Third Quarter 2023 Financial
Highlights (presented in millions, except per share data and
percentages)
|
|
|
Third
Quarter
|
|
|
|
2023
|
2022
|
Change
|
eBay
Inc.
|
|
|
|
|
Net
revenues
|
$ 2,500
|
$ 2,380
|
$
120
|
5 %
|
GAAP – Continuing
Operations
|
|
|
|
|
Income (loss) from
continuing operations
|
$ 1,306
|
$
(70)
|
$ 1,376
|
**
|
Earnings (loss) per
diluted share from continuing operations
|
$ 2.46
|
$
(0.13)
|
$ 2.59
|
**
|
Non-GAAP –
Continuing Operations
|
|
|
|
|
Net income
|
$
545
|
$
552
|
$
(7)
|
(1) %
|
Earnings per diluted
share
|
$ 1.03
|
$ 1.00
|
$ 0.03
|
3 %
|
Other Selected Financial and Operational Results
- Operating margin – GAAP operating margin decreased to 18.2% for
the third quarter of 2023, compared to 23.9% for the same period
last year. Non-GAAP operating margin decreased to 26.4% for the
third quarter of 2023, compared to 28.9% for the same period last
year.
- Taxes – The GAAP effective tax rate for continuing operations
for the third quarter of 2023 was 21.4%, compared to (29.9)% for
the third quarter of 2022. The non-GAAP effective tax rate for
continuing operations for the third quarter of 2023 was
16.5%(1).
- Cash flow – The company generated $862
million of operating cash flow and $777 million of free cash flow from continuing
operations during the third quarter of 2023.
- Capital returns – The company repurchased $651 million of its common stock, or nearly 15
million shares, in the third quarter of 2023. The company's total
repurchase authorization remaining as of September 30, 2023 was approximately $1.7 billion. The company also paid cash
dividends of $132 million during the
third quarter of 2023.
- Cash and cash equivalents and non-equity investments – The
company's cash and cash equivalents and non-equity investments
portfolio totaled $5.4 billion as of
September 30, 2023.
Business Outlook
eBay is providing the following guidance for continuing
operations for the fourth quarter and full year 2023.
In billions, except
per share data and percentages
|
Q4 2023
Guidance
|
Full Year 2023
Guidance
|
Revenue
|
$2.47 -
$2.53
|
$10.02 -
$10.08
|
FX-Neutral Y/Y
Growth
|
(1)% -
2%
|
3% -
4%
|
|
|
|
Diluted GAAP
EPS
|
$0.70 -
$0.75
|
$4.53 -
$4.58
|
|
|
|
Diluted Non-GAAP
EPS
|
$1.00 -
$1.05
|
$4.17 -
$4.22
|
Dividend Declaration
- eBay's Board of Directors has declared a cash dividend of
$0.25 per share of the company's
common stock. The dividend is payable on December 15, 2023 to stockholders of record as of
December 1, 2023.
(1) We use a non-GAAP effective tax rate for
evaluating our operating results. Based on our current long-term
projections, we are using a non-GAAP tax rate of 16.5%. This
non-GAAP tax rate could change for various reasons including
significant changes in our geographic earnings mix or fundamental
tax law changes in major jurisdictions in which we operate.
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss third quarter
2023 results at 2:00 p.m. Pacific Time today. Investors and
participants can access the call by dialing (888) 655-9638 in the
U.S. and (646) 960-0687 internationally. The passcode for the
conference line is 7435074. A live webcast of the conference call,
together with a slide presentation that includes supplemental
financial information and reconciliations of certain non-GAAP
measures to their nearest comparable GAAP measures, can be accessed
through the company's Investor Relations website at
https://investors.ebayinc.com. In addition, an archive of the
webcast will be accessible for at least three months through the
same link.
eBay Inc. uses its Investor Relations website at
https://investors.ebayinc.com as a means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD. Accordingly, investors should
monitor this website, in addition to following our press releases,
SEC filings, public conference calls and webcasts.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that
connects people and builds communities to create economic
opportunity for all. Our technology empowers millions of buyers and
sellers in more than 190 markets around the world, providing
everyone the opportunity to grow and thrive. Founded in 1995 in
San Jose, California, eBay is one
of the world's largest and most vibrant marketplaces for
discovering great value and unique selection. In 2022, eBay enabled
nearly $74 billion of gross
merchandise volume. For more information about the company and its
global portfolio of online brands, visit www.ebayinc.com.
Presentation
All growth rates represent year-over-year comparisons, except as
otherwise noted. All amounts in tables are presented in U.S.
dollars, rounded to the nearest million, except as otherwise noted.
As a result, certain amounts may not sum or recalculate using the
rounded dollar amounts provided. References to "revenue" refer to
"net revenues" as reported in the company's consolidated statement
of income.
Non-GAAP Financial Measures
This press release includes the following financial measures
defined as "non-GAAP financial measures" by the Securities and
Exchange Commission (SEC): non-GAAP net income, non-GAAP earnings
per diluted share, non-GAAP operating income, non-GAAP effective
tax rate, free cash flow and FX-Neutral basis. These non-GAAP
financial measures are presented on a continuing operations basis.
These measures may be different from non-GAAP financial measures
used by other companies. The presentation of this financial
information, which is not prepared under any comprehensive set of
accounting rules or principles, is not intended to be considered in
isolation of, or as a substitute for, the financial information
prepared and presented in accordance with generally accepted
accounting principles (GAAP). For a reconciliation of these
non-GAAP financial measures, except for figures in this press
release presented on an "FX-Neutral basis," to the nearest
comparable GAAP measures, see "Business Outlook,"
"Non-GAAP Measures of Financial Performance," "Reconciliation
of GAAP Operating Income to Non-GAAP Operating Income,"
"Reconciliation of GAAP Net Income to Non-GAAP Net Income
and Reconciliation of GAAP Effective Tax Rate to
Non-GAAP Effective Tax Rate" and "Reconciliation of Operating
Cash Flow to Free Cash Flow" included in this press release. For
figures in this press release reported "on an FX-Neutral basis," we
calculate the year-over-year impact of foreign currency movements
using prior period foreign currency rates, excluding hedging
activity, applied to current year transactional currency
amounts.
Forward-Looking Statements
This press release contains forward-looking statements relating
to, among other things, the future performance of eBay Inc. and its
consolidated subsidiaries that are based on the company's current
expectations, forecasts and assumptions and involve risks and
uncertainties. These statements include, but are not limited to,
statements regarding the future performance of eBay Inc. and its
consolidated subsidiaries, including management's vision for the
future of eBay and our ability to accomplish our vision, expected
financial results for the fourth quarter and full year 2023 and the
future growth in our business, the effects of geopolitical events,
foreign currency volatility, and inflationary pressure on our
business and operations and our ability to respond to such effects,
operating efficiency and margins, reinvestments, dividends and
share repurchases. Actual results could differ materially from
those expressed or implied and reported results should not be
considered as an indication of future performance. Factors that
could cause or contribute to such differences include, but are not
limited to: changes in political, business and economic conditions,
including impacts from the ongoing war in Ukraine, rising inflation and interest rates,
decreases in consumer confidence, any regional or general economic
downturn or crisis and any conditions that affect ecommerce growth
or cross-border trade; the company's ability to realize expected
growth opportunities in payments intermediation and advertising;
fluctuations in foreign currency exchange rates; the company's need
to successfully react to the increasing importance of mobile
commerce and the increasing social aspect of commerce; an
increasingly competitive environment for the company's business;
changes to the company's capital allocation, including the timing,
declaration, amount and payment of any future dividends or levels
of the company's share repurchases, or management of operating
cash; the company's ability to increase operating efficiency to
drive margin improvements and enable reinvestments; the company's
ability to manage its indebtedness, including managing exposure to
interest rates and maintaining its credit ratings; the company's
need to manage a large enterprise with a broad range of businesses
of varying degrees of maturity and in many different geographies;
the ability to successfully intermediate payments on our
marketplace platform; the company's need and ability to manage
regulatory, tax, data security and litigation risks, including
those that may result from the company's use of artificial
intelligence; the ultimate resolution of ongoing investigations and
other legal matters involving the company; the company's ability to
timely upgrade and develop its technology systems, infrastructure
and customer service capabilities at reasonable cost while
maintaining site stability and performance and adding new products
and features; and the company's ability to integrate, manage and
grow businesses that have been acquired or may be acquired in the
future.
The forward-looking statements in this release do not include
the potential impact of any acquisitions or divestitures that may
be announced and/or completed after the date hereof.
More information about factors that could affect the company's
operating results is included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the company's most recent Annual Report
on Form 10-K and subsequent Quarterly Reports on
Form 10-Q, copies of which may be obtained by visiting the
company's Investor Relations website at
https://investors.ebayinc.com or the SEC's website at www.sec.gov.
Undue reliance should not be placed on the forward-looking
statements in this press release, which are based on information
available to the company on the date hereof. The company assumes no
obligation to update such statements.
eBay
Inc. Unaudited Condensed Consolidated Balance
Sheet
|
|
|
September
30,
2023
|
|
December 31,
2022
|
|
(In millions)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
2,550
|
|
$
2,154
|
Short-term
investments
|
2,144
|
|
2,625
|
Equity investment in
Adevinta
|
4,023
|
|
2,692
|
Customer accounts and
funds receivable
|
908
|
|
763
|
Other current
assets
|
689
|
|
1,056
|
Total current
assets
|
10,314
|
|
9,290
|
Long-term
investments
|
1,352
|
|
1,797
|
Property and equipment,
net
|
1,201
|
|
1,238
|
Goodwill
|
4,238
|
|
4,262
|
Operating lease
right-of-use assets
|
446
|
|
513
|
Deferred tax
assets
|
3,086
|
|
3,169
|
Other assets
|
547
|
|
581
|
Total
assets
|
$
21,184
|
|
$
20,850
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
750
|
|
$
1,150
|
Accounts
payable
|
303
|
|
261
|
Customer accounts and
funds payable
|
986
|
|
768
|
Accrued expenses and
other current liabilities
|
1,967
|
|
1,866
|
Income taxes
payable
|
776
|
|
226
|
Total current
liabilities
|
4,782
|
|
4,271
|
Operating lease
liabilities
|
355
|
|
418
|
Deferred tax
liabilities
|
2,264
|
|
2,245
|
Long-term
debt
|
6,973
|
|
7,721
|
Other
liabilities
|
911
|
|
1,042
|
Total
liabilities
|
15,285
|
|
15,697
|
Total stockholders'
equity
|
5,899
|
|
5,153
|
Total liabilities and
stockholders' equity
|
$
21,184
|
|
$
20,850
|
eBay
Inc. Unaudited Condensed Consolidated Statement of
Income
|
|
|
Three Months
Ended September
30,
|
|
Nine Months
Ended September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In millions, except
per share amounts)
|
Net revenues
|
$
2,500
|
|
$
2,380
|
|
$
7,550
|
|
$
7,285
|
Cost of net revenues
(1)
|
705
|
|
647
|
|
2,123
|
|
1,999
|
Gross
profit
|
1,795
|
|
1,733
|
|
5,427
|
|
5,286
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and marketing
(1)
|
567
|
|
538
|
|
1,644
|
|
1,582
|
Product development
(1)
|
401
|
|
345
|
|
1,145
|
|
990
|
General and
administrative (1)
|
283
|
|
212
|
|
831
|
|
675
|
Provision for
transaction losses
|
85
|
|
69
|
|
259
|
|
251
|
Amortization of
acquired intangible assets
|
4
|
|
1
|
|
17
|
|
3
|
Total operating
expenses
|
1,340
|
|
1,165
|
|
3,896
|
|
3,501
|
Income from
operations
|
455
|
|
568
|
|
1,531
|
|
1,785
|
Gain (loss) on equity
investments and warrant, net
|
1,212
|
|
(593)
|
|
1,196
|
|
(4,105)
|
Interest and other,
net
|
(6)
|
|
(29)
|
|
(51)
|
|
(110)
|
Income (loss) from
continuing operations before income taxes
|
1,661
|
|
(54)
|
|
2,676
|
|
(2,430)
|
Income tax benefit
(provision)
|
(355)
|
|
(16)
|
|
(629)
|
|
485
|
Income (loss) from
continuing operations
|
1,306
|
|
(70)
|
|
2,047
|
|
(1,945)
|
Income (loss) from
discontinued operations, net of income
taxes
|
(1)
|
|
1
|
|
(4)
|
|
4
|
Net income
(loss)
|
$
1,305
|
|
$
(69)
|
|
$
2,043
|
|
$
(1,941)
|
|
|
|
|
|
|
|
|
Income (loss) per share
– basic:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
2.47
|
|
$
(0.13)
|
|
$
3.84
|
|
$
(3.45)
|
Discontinued
operations
|
0.00
|
|
0.00
|
|
(0.01)
|
|
0.01
|
Net income (loss) per
share – basic
|
$
2.47
|
|
$
(0.13)
|
|
$
3.83
|
|
$
(3.44)
|
|
|
|
|
|
|
|
|
Income (loss) per share
– diluted:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
2.46
|
|
$
(0.13)
|
|
$
3.81
|
|
$
(3.45)
|
Discontinued
operations
|
0.00
|
|
0.00
|
|
(0.01)
|
|
0.01
|
Net income (loss) per
share – diluted
|
$
2.46
|
|
$
(0.13)
|
|
$
3.80
|
|
$
(3.44)
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
529
|
|
548
|
|
533
|
|
563
|
Diluted
|
532
|
|
548
|
|
537
|
|
563
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation as follows:
|
|
|
|
|
|
|
|
Cost of net
revenues
|
$
13
|
|
$
13
|
|
$
40
|
|
$
38
|
Sales and
marketing
|
23
|
|
17
|
|
68
|
|
57
|
Product
development
|
69
|
|
53
|
|
202
|
|
160
|
General and
administrative
|
39
|
|
35
|
|
116
|
|
111
|
|
$
144
|
|
$
118
|
|
$
426
|
|
$
366
|
eBay
Inc. Unaudited Condensed Consolidated Statement of Cash
Flows
|
|
|
Three Months
Ended September
30,
|
|
Nine Months
Ended September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
1,305
|
|
$
(69)
|
|
$
2,043
|
|
$
(1,941)
|
(Income) loss from
discontinued operations, net of income taxes
|
1
|
|
(1)
|
|
4
|
|
(4)
|
Adjustments:
|
|
|
|
|
|
|
|
Provision for
transaction losses
|
85
|
|
69
|
|
259
|
|
251
|
Depreciation and
amortization
|
97
|
|
104
|
|
305
|
|
335
|
Stock-based
compensation
|
144
|
|
118
|
|
426
|
|
366
|
Loss (gain) on
investments and other, net
|
(3)
|
|
—
|
|
(6)
|
|
7
|
Deferred income
taxes
|
173
|
|
(112)
|
|
95
|
|
(807)
|
Change in fair value
of warrant
|
109
|
|
27
|
|
40
|
|
246
|
Change in fair value
of equity investment in Adevinta
|
(1,367)
|
|
501
|
|
(1,331)
|
|
2,973
|
Change in fair value
of equity investment in Adyen
|
—
|
|
(24)
|
|
—
|
|
261
|
Change in fair value
of equity investment in Gmarket
|
43
|
|
40
|
|
83
|
|
299
|
Change in fair value
of equity investment in KakaoBank
|
4
|
|
50
|
|
11
|
|
321
|
Changes in assets and
liabilities, net of acquisition effects
|
271
|
|
32
|
|
379
|
|
(366)
|
Net cash provided by
continuing operating activities
|
862
|
|
735
|
|
2,308
|
|
1,941
|
Net cash used in
discontinued operating activities
|
—
|
|
(6)
|
|
(4)
|
|
(371)
|
Net cash provided by
operating activities
|
862
|
|
729
|
|
2,304
|
|
1,570
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(85)
|
|
(102)
|
|
(330)
|
|
(296)
|
Purchases of
investments
|
(2,920)
|
|
(5,077)
|
|
(10,607)
|
|
(15,223)
|
Maturities and sales
of investments
|
3,117
|
|
5,066
|
|
11,499
|
|
18,247
|
Proceeds from sale of
shares in Adyen
|
—
|
|
120
|
|
—
|
|
800
|
Proceeds from sale of
shares in KakaoBank
|
1
|
|
—
|
|
1
|
|
287
|
Other
|
(17)
|
|
(18)
|
|
(43)
|
|
(62)
|
Net cash provided by
(used in) continuing investing activities
|
96
|
|
(11)
|
|
520
|
|
3,753
|
Net cash provided by
discontinued investing activities
|
—
|
|
2
|
|
—
|
|
2
|
Net cash provided by
(used in) investing activities
|
96
|
|
(9)
|
|
520
|
|
3,755
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
—
|
|
—
|
|
48
|
|
55
|
Repurchases of common
stock
|
(626)
|
|
(286)
|
|
(1,118)
|
|
(2,828)
|
Payments for taxes
related to net share settlements of restricted
stock units and
awards
|
24
|
|
(32)
|
|
(136)
|
|
(130)
|
Payments for
dividends
|
(132)
|
|
(120)
|
|
(399)
|
|
(370)
|
Repayment of
debt
|
—
|
|
—
|
|
(1,150)
|
|
(1,355)
|
Net funds receivable
and payable activity
|
121
|
|
84
|
|
684
|
|
92
|
Net cash used in
financing activities
|
(613)
|
|
(354)
|
|
(2,071)
|
|
(4,536)
|
Effect of exchange rate
changes on cash, cash equivalents and
restricted
cash
|
(10)
|
|
(32)
|
|
(16)
|
|
(89)
|
Net increase in cash,
cash equivalents and restricted cash
|
335
|
|
334
|
|
737
|
|
700
|
Cash, cash equivalents
and restricted cash at beginning of period
|
2,674
|
|
1,772
|
|
2,272
|
|
1,406
|
Cash, cash equivalents
and restricted cash at end of period
|
$
3,009
|
|
$
2,106
|
|
$
3,009
|
|
$
2,106
|
eBay
Inc. Unaudited Summary of Consolidated Net
Revenues
|
|
|
Three Months
Ended
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
(In millions, except
percentages)
|
Total net revenues
(1)(2)(3)
|
$
2,500
|
|
$
2,540
|
|
$
2,510
|
|
$
2,510
|
|
$
2,380
|
Current quarter vs
prior year quarter
|
5 %
|
|
5 %
|
|
1 %
|
|
(4) %
|
|
(5) %
|
Percent from
international
|
50 %
|
|
50 %
|
|
50 %
|
|
51 %
|
|
50 %
|
|
|
|
|
|
|
|
|
|
|
(1) Hedge
gain/(loss)
|
$
2
|
|
$
14
|
|
$
29
|
|
$
89
|
|
$
36
|
(2) Foreign currency
impact
|
$
43
|
|
$
(9)
|
|
$
(45)
|
|
$
(67)
|
|
$
(100)
|
|
|
(3)
|
Beginning in the fourth
quarter of 2022, we present revenues generated from both
Marketplace GMV and non-GMV based businesses as "Net revenues" in
order to more closely align our presentation of net revenues with
how our business is operated. We formerly presented such amounts as
"Net transaction revenues" and "Marketing services and other
(MS&O) revenues," and those line items for such prior periods
have been conformed to current period presentation. Consolidated
net revenues are unchanged.
|
eBay
Inc. Unaudited Supplemental Operating Data
|
|
|
Three Months
Ended
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
September
30,
2022
|
|
(In millions, except
percentages)
|
Active Buyers
(1)
|
132
|
|
132
|
|
133
|
|
134
|
|
135
|
Current quarter vs
prior year quarter
|
(3) %
|
|
(4) %
|
|
(7) %
|
|
(9) %
|
|
(11) %
|
Active Buyers
excluding GittiGidiyor
and TCGplayer
(2)
|
131
|
|
131
|
|
131
|
|
132
|
|
133
|
Current quarter vs
prior year quarter
|
(1) %
|
|
(3) %
|
|
(5) %
|
|
(8) %
|
|
(10) %
|
|
|
|
|
|
|
|
|
|
|
Gross Merchandise
Volume (3)
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
8,638
|
|
$
8,702
|
|
$
9,010
|
|
$
8,894
|
|
$
8,699
|
Current quarter vs
prior year quarter
|
(1) %
|
|
(3) %
|
|
(3) %
|
|
(9) %
|
|
(7) %
|
International
|
$
9,353
|
|
$
9,512
|
|
$
9,400
|
|
$
9,333
|
|
$
9,016
|
Current quarter vs
prior year quarter
|
4 %
|
|
(1) %
|
|
(7) %
|
|
(15) %
|
|
(15) %
|
Total Gross
Merchandise Volume
|
$
17,991
|
|
$
18,214
|
|
$
18,410
|
|
$
18,227
|
|
$
17,715
|
Current quarter vs
prior year quarter
|
2 %
|
|
(2) %
|
|
(5) %
|
|
(12) %
|
|
(11) %
|
|
|
(1)
|
Active Buyers consist
of all buyers who paid for a transaction on our platforms within
the previous 12-month period. Buyers may register more than once,
and as a result, may have more than one account.
|
(2)
|
On June 20, 2022 we
announced the closure of our marketplace business in Turkey,
GittiGidiyor. On October 31, 2022, we completed the acquisition of
TCGplayer.
|
(3)
|
Gross Merchandise
Volume consists of the total value of all paid transactions between
users on our platforms during the applicable period inclusive of
shipping fees and taxes.
|
eBay Inc.
Business Outlook
The guidance figures provided below and elsewhere in this
press release are forward-looking statements, reflect a number of
estimates, assumptions and other uncertainties, and are approximate
in nature because the company's future performance is difficult to
predict. Such guidance is based on information available on
the date of this press release, and the company assumes no
obligation to update it.
The company's future performance involves risks and
uncertainties, and the company's actual results could differ
materially from the information below and elsewhere in this press
release. Some of the factors that could affect the company's
operating results are set forth under the caption "Forward-Looking
Statements" above in this press release. More information about
factors that could affect the company's operating results is
included under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in the company's most recent Annual Report on
Form 10-K and subsequent Quarterly Reports on Form 10-Q,
copies of which may be obtained by visiting eBay's investor
relations website at https://investors.ebayinc.com or the SEC's
website at www.sec.gov.
eBay
Inc.
|
|
|
Three Months
Ending
|
|
December 31,
2023
|
(In billions, except
per share amounts)
|
GAAP
|
|
Non-GAAP
(a)
|
Net
revenues
|
$2.47 -
$2.53
|
|
$2.47 -
$2.53
|
Diluted EPS from
continuing operations
|
$0.70 -
$0.75
|
|
$1.00 -
$1.05
|
|
|
|
|
|
Twelve Months
Ending
|
|
December 31,
2023
|
(In billions, except
per share amounts)
|
GAAP
|
|
Non-GAAP
(b)
|
Net
Revenue
|
$10.02 -
$10.08
|
|
$10.02 -
$10.08
|
Diluted EPS from
continuing operations
|
$4.53 -
$4.58
|
|
$4.17 -
$4.22
|
|
|
|
|
(a) Estimated non-GAAP
amounts above for the three months ending December 31, 2023 reflect
adjustments that exclude the
estimated amortization of acquired intangible assets of
approximately $8 - $13 million, estimated stock-based
compensation
expense and associated employer payroll tax expense of
approximately $140 - $150 million and estimated adjustment
between
our GAAP and non-GAAP tax rate of approximately $20 - $30 million.
The estimated GAAP diluted EPS above does not
assume any gains or losses on our equity investments.
|
|
|
|
|
(b) Estimated non-GAAP
amounts above for the twelve months ending December 31, 2023
reflect adjustments that exclude the
estimated amortization of acquired intangible assets of
approximately $35 - $40 million, estimated stock-based
compensation
expense and associated employer payroll tax expense of
approximately $577 - $587 million and estimated adjustment
between
our GAAP and non-GAAP tax rate of approximately $105 - $115
million. The estimated GAAP diluted EPS above does not
assume any future gains or losses on our equity
investments.
|
eBay
Inc.
Non-GAAP Measures of Financial
Performance
To supplement the company's condensed consolidated financial
statements presented in accordance with generally accepted
accounting principles, or GAAP, the company uses non-GAAP measures
of certain components of financial performance. These non-GAAP
measures include non-GAAP net income, non-GAAP earnings per diluted
share, non-GAAP operating income, non-GAAP effective tax rate, free
cash flow and figures in this press release presented on an
"FX-Neutral basis." These non-GAAP financial measures are presented
on a continuing operations basis.
These non-GAAP measures are not in accordance with, or an
alternative to, measures prepared in accordance with GAAP and may
be different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. Non-GAAP
measures have limitations in that they do not reflect all of the
amounts associated with the company's results of operations as
determined in accordance with GAAP. These measures should only be
used to evaluate the company's results of operations in conjunction
with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP
measures included in this press release, except for figures in this
press release presented on an "FX-Neutral basis," can be found in
the tables included in this press release. For figures in this
press release reported "on an FX-Neutral basis," the company
calculates the year-over-year impact of foreign currency movements
using prior period foreign currency rates, excluding hedging
activity, applied to current year transactional currency
amounts.
These non-GAAP measures are provided to enhance investors'
overall understanding of the company's current financial
performance and its prospects for the future. Specifically, the
company believes the non-GAAP measures provide useful information
to both management and investors by excluding certain expenses,
gains and losses, or net purchases of property and equipment, as
the case may be, that may not be indicative of its core operating
results and business outlook. In addition, because the company has
historically reported certain non-GAAP results to investors, the
company believes that the inclusion of non-GAAP measures provides
consistency in the company's financial reporting.
For its internal budgeting process, and as discussed further
below, the company's management uses financial measures that do not
include stock-based compensation expense, employer payroll taxes on
stock-based compensation, amortization or impairment of acquired
intangible assets, impairment of goodwill, amortization of deferred
tax assets associated with the realignment of its legal structure
and related foreign exchange effects, significant gains or losses
from the disposal/acquisition of a business, certain gains and
losses on investments including changes in fair value, changes in
foreign currency exchange rates and the impact of any related
foreign exchange derivative instruments, gains or losses associated
with a warrant agreement that the company entered into with Adyen,
restructuring-related charges and the income taxes associated with
the foregoing. In addition to the corresponding GAAP measures, the
company's management also uses the foregoing non-GAAP measures in
reviewing the financial results of the company.
The company excludes the following items from non-GAAP net
income, non-GAAP earnings per diluted share, non-GAAP operating
income and non-GAAP effective tax rate:
Stock-based compensation expense and related
employer payroll taxes. This expense consists of expenses
for stock options, restricted stock and employee stock purchases.
The company excludes stock-based compensation expense from its
non-GAAP measures primarily because they are non-cash expenses that
management does not believe are reflective of ongoing operating
results. The related employer payroll taxes are dependent on the
company's stock price and the vesting of restricted stock by
employees and the timing and size of stock option exercises, over
which management has limited to no control, and as such management
does not believe it correlates to the company's operation of the
business.
Amortization or impairment of acquired
intangible assets, impairment of goodwill, certain amortization of
deferred tax assets and related foreign exchange effects,
significant gains or losses and transaction expenses from the
acquisition or disposal of a business and certain gains or losses
on investments. The company incurs amortization or impairment
of acquired intangible assets and goodwill in connection with
acquisitions and may incur significant gains or losses from the
acquisition or disposal of a business and therefore excludes these
amounts from its non-GAAP measures. The company also excludes
certain gains and losses on investments. The company excludes the
non-cash amortization of deferred tax assets associated with the
realignment of its legal structure, which is not reduced by the
effects of the Tax Cuts and Jobs Act, and related foreign exchange
effects. The company excludes these items because management does
not believe they correlate to the ongoing operating results of the
company's business.
Restructuring. These charges consist
of expenses for employee severance and other exit and disposal
costs. The company excludes significant restructuring charges
primarily because management does not believe they are reflective
of ongoing operating results.
Other certain significant gains, losses, or
charges that are not indicative of the company's core operating
results. These are significant gains, losses, or charges during
a period that are the result of isolated events or transactions
which have not occurred frequently in the past and are not expected
to occur regularly or be repeated in the future. The company
excludes these amounts from its results primarily because
management does not believe they are indicative of its current or
ongoing operating results. These amounts include changes in
fair value and the related change in foreign currency exchange
rates of equity securities with readily determinable fair values,
globally.
Change in fair market value of
warrant. These are gains or losses associated with a
warrant agreement that the company entered into with Adyen, which
are attributable to changes in fair value during the period.
Income tax effects and
adjustments. We use a non-GAAP tax rate for evaluating our
operating results. Based on our current long-term projections, we
are using a non-GAAP tax rate of 16.5%. This non-GAAP tax rate
could change for various reasons including significant changes in
our geographic earnings mix or fundamental tax law changes in major
jurisdictions in which we operate.
In addition to the non-GAAP measures discussed above, the
company also uses free cash flow. Free cash flow represents
operating cash flows less purchases of property and equipment. The
company considers free cash flow to be a liquidity measure that
provides useful information to management and investors about the
amount of cash generated by the business after the purchases of
property, buildings, and equipment, which can then be used to,
among other things, invest in the company's business, make
strategic acquisitions, repurchase stock and pay dividends. A
limitation of the utility of free cash flow as a measure of
financial performance is that it does not represent the total
increase or decrease in the company's cash balance for the period
and does not exclude certain non-discretionary expenditures, such
as mandatory debt service requirements.
eBay
Inc. Reconciliation of GAAP Operating Income to
Non-GAAP Operating Income*
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In millions, except
percentages)
|
GAAP operating
income
|
$
455
|
|
$
568
|
|
$
1,531
|
|
$
1,785
|
Stock-based
compensation expense and related employer
payroll taxes
|
146
|
|
120
|
|
436
|
|
377
|
Amortization of
acquired intangible assets within cost of net
revenues and operating expenses
|
8
|
|
2
|
|
26
|
|
4
|
Restructuring
|
(1)
|
|
—
|
|
38
|
|
—
|
Legal
matters
|
50
|
|
—
|
|
50
|
|
—
|
Other general and
administrative expenses
|
—
|
|
—
|
|
5
|
|
23
|
Total non-GAAP
operating income adjustments
|
203
|
|
122
|
|
555
|
|
404
|
Non-GAAP operating
income
|
$
658
|
|
$
690
|
|
$
2,086
|
|
$
2,189
|
Non-GAAP operating
margin
|
26.4 %
|
|
28.9 %
|
|
27.7 %
|
|
30.0 %
|
|
*Presented on a
continuing operations basis
|
Reconciliation of
GAAP Net Income to Non-GAAP Net Income and GAAP
Effective Tax Rate to Non-GAAP Effective Tax Rate
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In millions, except
per share amounts and percentages)
|
GAAP income (loss) from
continuing operations before income
taxes
|
$
1,661
|
|
$
(54)
|
|
$
2,676
|
|
$ (2,430)
|
GAAP (provision)
benefit for income taxes
|
(355)
|
|
(16)
|
|
(629)
|
|
485
|
GAAP net income (loss)
from continuing operations
|
$
1,306
|
|
$
(70)
|
|
$
2,047
|
|
$ (1,945)
|
Non-GAAP adjustments to
net income (loss) from continuing
operations:
|
|
|
|
|
|
|
|
Non-GAAP operating
income from continuing operations
adjustments (see table above)
|
$
203
|
|
$
122
|
|
$
555
|
|
$
404
|
Change in fair value
of equity investment in Adevinta
|
(1,367)
|
|
501
|
|
(1,331)
|
|
2,973
|
Change in fair market
value of warrant
|
109
|
|
27
|
|
40
|
|
246
|
Change in fair market
value of other equity investments
|
46
|
|
90
|
|
95
|
|
663
|
Realized change in
fair market value of equity investments
|
—
|
|
(24)
|
|
—
|
|
218
|
Other significant
gains, losses or charges
|
—
|
|
(1)
|
|
—
|
|
(1)
|
Income tax effects and
adjustments
|
248
|
|
(93)
|
|
294
|
|
(827)
|
Non-GAAP net income
from continuing operations
|
$
545
|
|
$
552
|
|
$
1,700
|
|
$
1,731
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) from continuing operations per share:
|
|
|
|
|
|
|
|
GAAP
|
$
2.46
|
|
$
(0.13)
|
|
$
3.81
|
|
$
(3.45)
|
Non-GAAP
|
$
1.03
|
|
$
1.00
|
|
$
3.17
|
|
$
3.04
|
Shares used in GAAP
diluted net income (loss) per share
calculation
|
532
|
|
548
|
|
537
|
|
563
|
Shares used in non-GAAP
diluted net income per share
calculation
|
532
|
|
551
|
|
537
|
|
568
|
|
|
|
|
|
|
|
|
GAAP effective tax rate
– Continuing operations
|
21.4 %
|
|
(29.9) %
|
|
23.5 %
|
|
20.0 %
|
Income tax effects and
adjustments to net income (loss) from
continuing operations
|
(4.9) %
|
|
46.4 %
|
|
(7.0) %
|
|
(3.5) %
|
Non-GAAP effective tax
rate – Continuing operations
|
16.5 %
|
|
16.5 %
|
|
16.5 %
|
|
16.5 %
|
Reconciliation of
Operating Cash Flow to Free Cash Flow
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
millions)
|
Net cash provided by
continuing operating activities
|
$
862
|
|
$
735
|
|
$
2,308
|
|
$
1,941
|
Less: Purchases of
property and equipment
|
(85)
|
|
(102)
|
|
(330)
|
|
(296)
|
Free cash
flow
|
$
777
|
|
$
633
|
|
$
1,978
|
|
$
1,645
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ebay-inc-reports-third-quarter-2023-results-301980686.html
SOURCE eBay Inc.