- Revenue of $2.6 billion, up 2%
on an as-reported basis and up 3% on an FX-Neutral basis
- Gross Merchandise Volume of $18.6 billion, up 2% on an as-reported basis and
nearly flat on an FX-Neutral basis
- GAAP and Non-GAAP earnings per diluted share of
$1.40 and $1.07, respectively, on a continuing operations
basis
- GAAP and Non-GAAP operating margin of 16.0% and
26.7%, respectively
- Returned $379 million to
shareholders in Q4, including $250
million of share repurchases and $129
million paid in cash dividends
- In February 2024, the Board of
Directors declared a cash dividend for the first quarter of 2024 of
$0.27 per share, an 8% increase from
the prior quarterly dividend. The Board also authorized an
additional $2.0 billion stock
repurchase program, increasing the company's remaining stock
repurchase authorization to $3.4
billion
SAN
JOSE, Calif., Feb. 27,
2024 /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 fourth
quarter and full year ended December 31, 2023.
"Last year, we made significant progress toward our vision to
reinvent the future of ecommerce for enthusiasts," said
Jamie Iannone, Chief Executive
Officer at eBay. "Our organic GMV growth improved year-over-year
during each quarter of 2023, while navigating a challenging
macroeconomic environment. Our results demonstrate the strength of
our strategy, and I'm proud of our accelerated pace of innovation
as we work to fundamentally enhance the customer experience on
eBay."
"I'm pleased that we met or exceeded expectations across our key
financial metrics in Q4," said Steve
Priest, Chief Financial Officer at eBay. "Our fortress
balance sheet and durable financial model enabled us to invest in
our strategic pillars while protecting earnings growth and
delivering robust capital returns. I'm proud of the strong
execution throughout 2023 and I'm confident our strategy will drive
long-term shareholder value."
Fourth Quarter Financial Highlights
- Revenue was $2.6 billion, up 2%
on an as-reported basis and up 3% on a foreign exchange (FX)
neutral basis.
- Gross Merchandise Volume (GMV) was $18.6
billion, up 2% on an as-reported basis and nearly flat on an
FX-Neutral basis.
- GAAP net income from continuing operations was $728 million, or $1.40 per diluted share.
- Non-GAAP net income from continuing operations was $560 million, or $1.07 per diluted share.
- GAAP and Non-GAAP operating margin was 16.0% and 26.7%,
respectively.
- Generated $123 million of
operating cash flow and reported $(3)
million of free cash flow.
- Returned $379 million to
shareholders, including $250 million
of share repurchases and $129 million
paid in cash dividends.
Full Year Financial Highlights
- Revenue was $10.1 billion, up 3%
on an as-reported basis and up 4% on an FX-Neutral basis.
- GMV was $73.2 billion, down
1% on an as-reported and FX-Neutral basis.
- GAAP net income from continuing operations was $2.8 billion, or $5.21 per diluted share.
- Non-GAAP net income from continuing operations was $2.3 billion, or $4.24 per diluted share.
- GAAP and Non-GAAP operating margin was 19.2% and 27.4%,
respectively.
- Generated $2.4 billion of
operating cash flow and $2.0 billion
of free cash flow.
- Returned $1.9 billion to
shareholders, including $1.4 billion
of share repurchases and $528 million
paid in cash dividends.
Business Highlights
Revenue Initiatives
- eBay's first-party advertising products delivered $368 million of revenue in the fourth quarter, up
33% on an as-reported basis and up 30% on an FX-Neutral basis.
- The company's total advertising offerings generated
$393 million of revenue in the fourth
quarter, representing 2.1% of GMV.
Strategic Initiatives
- In Q4, eBay opened its newest authentication center in
Japan. The Tokyo-based hub provides an added layer of
trust, enabling the company to authenticate luxury items on a
global scale.
- In the Motors Parts & Accessories category, eBay rolled out
a multi-warehouse shipping optimization API to U.S. sellers,
allowing buyers to see more accurate estimated delivery dates when
purchasing from sellers with multiple warehouses.
- During the quarter, eBay Motors introduced predictive
maintenance for users with cars in My Garage. Leveraging eBay's
database of more than 100 million vehicles, this capability offers
AI-driven auto part recommendations based on a specific vehicle's
mileage.
- eBay announced a commercial agreement and investment in sports
trading card company COMC. The deal expands COMC's technology-based
listing and management model and offers collectors a more extensive
selection and improved listing capabilities.
- During the quarter, eBay completed the global rollout of its
enhanced background removal tool, which leverages AI to
effortlessly remove visual background "noise" from product
images.
- eBay launched a new generative AI-powered social caption
generator, making social sharing easier for sellers.
- The company introduced combined shipping with eBay
International Shipping, enabling buyers to purchase multiple items
from one seller and pay reduced shipping costs.
Impact
- eBay published its fourth annual Task Force for Climate Related
Financial Disclosure report, showing eBay's continued commitment to
climate disclosure, assessment and planning.
- eBay was included in the Dow Jones Sustainability World and
North American Indices for the fifth consecutive year, recognizing
the company for its commitment to sustainability and responsible
business.
- eBay for Charity contributed more than $43 million globally in Q4 and nearly
$162 million throughout 2023.
- In Q4, the eBay Foundation hosted its second annual Giving Week
encouraging eBayers around the world to donate, volunteer and
connect with local communities. In a single week, employees donated
more than $660 thousand to more than
a thousand different causes in 25 countries.
- In 2023, the eBay Foundation granted more than $19 million to nonprofit organizations advancing
inclusive entrepreneurship.
Fourth Quarter and Full Year 2023 Financial
Highlights (presented in millions, except per share data and
percentages)
|
Fourth
Quarter
|
|
|
Full
Year
|
|
|
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
eBay
Inc.
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
2,562
|
$
2,510
|
$
52
|
2 %
|
$
10,112
|
$
9,795
|
$ 317
|
3 %
|
GAAP – Continuing
Operations
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
$ 728
|
$ 671
|
$
57
|
8 %
|
$
2,775
|
$
(1,274)
|
$
4,049
|
**
|
Earnings (loss) per
diluted share
|
$ 1.40
|
$ 1.23
|
$ 0.17
|
13 %
|
$ 5.21
|
$
(2.28)
|
$ 7.49
|
**
|
Non-GAAP –
Continuing Operations
|
|
|
|
|
|
|
|
|
Net income
|
$ 560
|
$ 581
|
$
(21)
|
(4) %
|
$
2,260
|
$
2,312
|
$
(52)
|
(2) %
|
Earnings per diluted
share
|
$ 1.07
|
$ 1.07
|
$
—
|
— %
|
$ 4.24
|
$ 4.11
|
$ 0.13
|
3 %
|
** Not
meaningful
|
Other Selected Financial and Operational Results
- Operating margin – GAAP operating margin decreased to 16.0% for
the fourth quarter of 2023, compared to 22.5% for the same period
last year. Non-GAAP operating margin decreased to 26.7% for the
fourth quarter of 2023, compared to 29.9% for the same period last
year.
- Taxes – The GAAP effective tax rate for continuing operations
for the fourth quarter of 2023 was 29.4%, compared to 19.1% for the
fourth quarter of 2022. The non-GAAP effective tax rate for
continuing operations for the fourth quarter of 2023 was
16.5%(1).
- Cash flow – The company generated $123
million of operating cash flow and reported $(3) million of free cash flow from continuing
operations during the fourth quarter of 2023.
- Capital returns – The company repurchased $250 million of its common stock, or 6 million
shares, in the fourth quarter of 2023. The company's total
repurchase authorization remaining as of December 31, 2023 was approximately $1.4 billion. The company also paid cash
dividends of $129 million during the
fourth quarter of 2023.
- Cash and cash equivalents and non-equity investments – The
company's cash and cash equivalents and non-equity investments
portfolio totaled $5.1 billion as of
December 31, 2023.
Business Outlook
eBay is providing the following guidance for the first quarter
2024.
In billions, except
per share data and percentages
|
Q1 2024
Guidance
|
Revenue
|
$2.50 -
$2.54
|
FX-Neutral Y/Y
Growth
|
0% -
2%
|
|
|
Diluted GAAP
EPS
|
$0.86 -
$0.90
|
|
|
Diluted Non-GAAP
EPS
|
$1.19 -
$1.23
|
Dividend Declaration
- eBay's Board of Directors has declared a cash dividend of
$0.27 per share of the company's
common stock. The dividend is payable on March 25, 2024 to stockholders of record as of
March 11, 2024.
(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 fourth quarter
and full year 2023 results at 2:00 p.m. Pacific Time today.
Investors and participants can access the call by dialing (855)
761-5600 in the U.S. and (646) 307-1097 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 2023, eBay enabled
more than $73 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 and margin, 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 first quarter and full year 2024 and the
future growth in our business, the effects and potential of current
and contemplated strategic initiatives and offerings, 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: fluctuations in, and
our ability to predict, our results of operations and cash flows;
our ability to convert visits into sales for our sellers, attract
and retain buyers and execute on our business strategy; our ability
to compete in the markets in which we participate; our ability to
generate revenue from our foreign operations and expand into
international markets; the impact of inflationary pressure,
fluctuations in foreign currency exchange rates, increasing
interest rates and geopolitical events such as the ongoing wars in
Ukraine and in Israel and Gaza, including the related disruptions to
international shipping in the Red Sea; our ability to keep pace
with rapid technological developments or continue to innovate and
create new initiatives to provide new programs, products and
services; our ability to operate and continuously develop our
payments system and financial services offerings; the impact of
evolving domestic and foreign government laws, regulations, rules
and standards that affect our company, our business and/or our
industry; our reliance on third-party providers; our ability to
protect or enforce our intellectual property rights; our ability to
deal effectively with fraudulent activities on our platforms; the
impact of any security breaches, cyberattacks or system failures
and resulting interruptions; our ability to attract, retain and
develop highly skilled employees; our ability to accomplish or
accurately track our disclosures related to our environmental,
social and governance goals; current and potential litigation and
regulatory and government inquiries, investigations and disputes
involving our company or our industry; our ability to generate
sufficient cash flow to service our indebtedness; the impact of
evolving sales and other tax regimes in various jurisdictions and
anticipated tax liabilities; and the success of our pending or
potential acquisitions, dispositions, joint ventures, strategic
partnerships and strategic investments, including the proposed
transactions involving Adevinta.
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
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
(In millions)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
1,985
|
|
$
2,154
|
Short-term
investments
|
2,556
|
|
2,625
|
Equity investment in
Adevinta
|
4,474
|
|
2,692
|
Customer accounts and
funds receivable
|
1,013
|
|
763
|
Other current
assets
|
988
|
|
1,056
|
Total current
assets
|
11,016
|
|
9,290
|
Long-term
investments
|
1,133
|
|
1,797
|
Property and equipment,
net
|
1,243
|
|
1,238
|
Goodwill
|
4,267
|
|
4,262
|
Operating lease
right-of-use assets
|
493
|
|
513
|
Deferred tax
assets
|
3,089
|
|
3,169
|
Other assets
|
379
|
|
581
|
Total
assets
|
$
21,620
|
|
$
20,850
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
750
|
|
$
1,150
|
Accounts
payable
|
267
|
|
261
|
Customer accounts and
funds payable
|
1,054
|
|
768
|
Accrued expenses and
other current liabilities
|
2,196
|
|
1,866
|
Income taxes
payable
|
253
|
|
226
|
Total current
liabilities
|
4,520
|
|
4,271
|
Operating lease
liabilities
|
387
|
|
418
|
Deferred tax
liabilities
|
2,408
|
|
2,245
|
Long-term
debt
|
6,973
|
|
7,721
|
Other
liabilities
|
936
|
|
1,042
|
Total
liabilities
|
15,224
|
|
15,697
|
Total stockholders'
equity
|
6,396
|
|
5,153
|
Total liabilities and
stockholders' equity
|
$
21,620
|
|
$
20,850
|
eBay
Inc.
Unaudited Condensed
Consolidated Statement of Income
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In millions, except
per share amounts)
|
Net revenues
|
$
2,562
|
|
$
2,510
|
|
$
10,112
|
|
$
9,795
|
Cost of net revenues
(1)
|
710
|
|
681
|
|
2,833
|
|
2,680
|
Gross
profit
|
1,852
|
|
1,829
|
|
7,279
|
|
7,115
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and marketing
(1)
|
573
|
|
554
|
|
2,217
|
|
2,136
|
Product development
(1)
|
399
|
|
340
|
|
1,544
|
|
1,330
|
General and
administrative (1)
|
365
|
|
288
|
|
1,196
|
|
963
|
Provision for
transaction losses
|
101
|
|
81
|
|
360
|
|
332
|
Amortization of
acquired intangible assets
|
4
|
|
1
|
|
21
|
|
4
|
Total operating
expenses
|
1,442
|
|
1,264
|
|
5,338
|
|
4,765
|
Income from
operations
|
410
|
|
565
|
|
1,941
|
|
2,350
|
Interest and
other:
|
|
|
|
|
|
|
|
Gain (loss) on equity
investments and warrant, net
|
636
|
|
319
|
|
1,832
|
|
(3,786)
|
Interest
expense
|
(65)
|
|
(62)
|
|
(263)
|
|
(235)
|
Interest income and
other, net
|
50
|
|
7
|
|
197
|
|
70
|
Income (loss) from
continuing operations before income taxes
|
1,031
|
|
829
|
|
3,707
|
|
(1,601)
|
Income tax benefit
(provision)
|
(303)
|
|
(158)
|
|
(932)
|
|
327
|
Income (loss) from
continuing operations
|
728
|
|
671
|
|
2,775
|
|
(1,274)
|
Income (loss) from
discontinued operations, net of income taxes
|
(4)
|
|
1
|
|
(8)
|
|
5
|
Net income
(loss)
|
$
724
|
|
$
672
|
|
$
2,767
|
|
$
(1,269)
|
|
|
|
|
|
|
|
|
Income (loss) per share
– basic:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.41
|
|
$
1.24
|
|
$
5.24
|
|
$
(2.28)
|
Discontinued
operations
|
(0.01)
|
|
0.00
|
|
(0.02)
|
|
0.01
|
Net income (loss) per
share – basic
|
$
1.40
|
|
$
1.24
|
|
$
5.22
|
|
$
(2.27)
|
|
|
|
|
|
|
|
|
Income (loss) per share
– diluted:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.40
|
|
$
1.23
|
|
$
5.21
|
|
$
(2.28)
|
Discontinued
operations
|
(0.01)
|
|
0.00
|
|
(0.02)
|
|
0.01
|
Net income (loss) per
share – diluted
|
$
1.39
|
|
$
1.23
|
|
$
5.19
|
|
$
(2.27)
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
518
|
|
541
|
|
530
|
|
558
|
Diluted
|
521
|
|
544
|
|
533
|
|
558
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation as follows:
|
|
|
|
|
|
|
|
Cost of net
revenues
|
$
13
|
|
$
13
|
|
$
53
|
|
$
51
|
Sales and
marketing
|
24
|
|
16
|
|
92
|
|
73
|
Product
development
|
70
|
|
62
|
|
272
|
|
222
|
General and
administrative
|
42
|
|
37
|
|
158
|
|
148
|
|
$
149
|
|
$
128
|
|
$
575
|
|
$
494
|
eBay
Inc.
Unaudited Condensed
Consolidated Statement of Cash Flows
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
724
|
|
$
672
|
|
$
2,767
|
|
$
(1,269)
|
(Income) loss from
discontinued operations, net of income taxes
|
4
|
|
(1)
|
|
8
|
|
(5)
|
Adjustments:
|
|
|
|
|
|
|
|
Provision for
transaction losses
|
101
|
|
81
|
|
360
|
|
332
|
Depreciation and
amortization
|
98
|
|
107
|
|
403
|
|
442
|
Stock-based
compensation
|
149
|
|
128
|
|
575
|
|
494
|
Loss (gain) on
investments and other, net
|
1
|
|
14
|
|
(5)
|
|
21
|
Deferred income
taxes
|
160
|
|
27
|
|
255
|
|
(780)
|
Change in fair value
of warrant
|
(190)
|
|
(16)
|
|
(150)
|
|
230
|
Change in fair value
of equity investment in Adevinta
|
(451)
|
|
(282)
|
|
(1,782)
|
|
2,691
|
Change in fair value
of equity investment in Adyen
|
—
|
|
—
|
|
—
|
|
261
|
Change in fair value
of equity investment in Gmarket
|
13
|
|
(5)
|
|
96
|
|
294
|
Change in fair value
of equity investment in KakaoBank
|
(13)
|
|
(28)
|
|
(2)
|
|
293
|
Changes in assets and
liabilities, net of acquisition effects
|
(473)
|
|
(11)
|
|
(94)
|
|
(377)
|
Net cash provided by
continuing operating activities
|
123
|
|
686
|
|
2,431
|
|
2,627
|
Net cash used in
discontinued operating activities
|
(1)
|
|
(2)
|
|
(5)
|
|
(373)
|
Net cash provided by
operating activities
|
122
|
|
684
|
|
2,426
|
|
2,254
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(126)
|
|
(153)
|
|
(456)
|
|
(449)
|
Purchases of
investments
|
(3,267)
|
|
(3,311)
|
|
(13,874)
|
|
(18,534)
|
Maturities and sales
of investments
|
3,003
|
|
2,379
|
|
14,502
|
|
20,626
|
Proceeds from sale of
shares in Adevinta
|
—
|
|
8
|
|
—
|
|
8
|
Proceeds from sale of
shares in Adyen
|
—
|
|
—
|
|
—
|
|
800
|
Proceeds from sale of
shares in KakaoBank
|
105
|
|
—
|
|
106
|
|
287
|
Acquisition of
TCGplayer, net of cash acquired
|
—
|
|
(208)
|
|
—
|
|
(208)
|
Other
|
5
|
|
(9)
|
|
(38)
|
|
(71)
|
Net cash provided by
(used in) continuing investing activities
|
(280)
|
|
(1,294)
|
|
240
|
|
2,459
|
Net cash provided by
discontinued investing activities
|
—
|
|
—
|
|
—
|
|
2
|
Net cash provided by
(used in) investing activities
|
(280)
|
|
(1,294)
|
|
240
|
|
2,461
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
35
|
|
32
|
|
83
|
|
87
|
Repurchases of common
stock
|
(283)
|
|
(315)
|
|
(1,401)
|
|
(3,143)
|
Payments for taxes
related to net share settlements of restricted stock units and
awards
|
(35)
|
|
(30)
|
|
(171)
|
|
(160)
|
Payments for
dividends
|
(129)
|
|
(119)
|
|
(528)
|
|
(489)
|
Proceeds from issuance
of long-term debt, net
|
—
|
|
1,143
|
|
—
|
|
1,143
|
Repayment of
debt
|
—
|
|
—
|
|
(1,150)
|
|
(1,355)
|
Net funds receivable
and payable activity
|
33
|
|
33
|
|
717
|
|
125
|
Net cash provided by
(used) in financing activities
|
(379)
|
|
744
|
|
(2,450)
|
|
(3,792)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
21
|
|
32
|
|
5
|
|
(57)
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
(516)
|
|
166
|
|
221
|
|
866
|
Cash, cash equivalents
and restricted cash at beginning of period
|
3,009
|
|
2,106
|
|
2,272
|
|
1,406
|
Cash, cash equivalents
and restricted cash at end of period
|
$
2,493
|
|
$
2,272
|
|
$
2,493
|
|
$
2,272
|
eBay
Inc.
Unaudited Summary of
Consolidated Net Revenues
|
|
|
Three Months
Ended
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
(In millions, except
percentages)
|
Total net revenues
(1)(2)
|
$
2,562
|
|
$
2,500
|
|
$
2,540
|
|
$
2,510
|
|
$
2,510
|
Current quarter vs
prior year quarter
|
2 %
|
|
5 %
|
|
5 %
|
|
1 %
|
|
(4) %
|
Percent from
international
|
50 %
|
|
50 %
|
|
50 %
|
|
50 %
|
|
51 %
|
|
|
|
|
|
|
|
|
|
|
(1) Hedge
gain/(loss)
|
$
11
|
|
$
2
|
|
$
14
|
|
$
29
|
|
$
89
|
(2) Foreign currency
impact
|
$
63
|
|
$
43
|
|
$
(9)
|
|
$
(45)
|
|
$
(67)
|
eBay
Inc.
Unaudited
Supplemental Operating Data
|
|
|
Three Months
Ended
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2022
|
|
(In millions, except
percentages)
|
Active Buyers
(1)
|
132
|
|
132
|
|
132
|
|
133
|
|
134
|
Current quarter vs
prior year quarter
|
(2) %
|
|
(3) %
|
|
(4) %
|
|
(7) %
|
|
(9) %
|
Active Buyers
excluding GittiGidiyor and TCGplayer (2)
|
131
|
|
131
|
|
131
|
|
131
|
|
132
|
Current quarter vs
prior year quarter
|
(1) %
|
|
(1) %
|
|
(3) %
|
|
(5) %
|
|
(8) %
|
|
|
|
|
|
|
|
|
|
|
Gross Merchandise
Volume (3)
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
8,891
|
|
$
8,638
|
|
$
8,702
|
|
$
9,010
|
|
$
8,894
|
Current quarter vs
prior year quarter
|
0 %
|
|
(1) %
|
|
(3) %
|
|
(3) %
|
|
(9) %
|
International
|
$
9,700
|
|
$
9,353
|
|
$
9,512
|
|
$
9,400
|
|
$
9,333
|
Current quarter vs
prior year quarter
|
4 %
|
|
4 %
|
|
(1) %
|
|
(7) %
|
|
(15) %
|
Total Gross
Merchandise Volume
|
$
18,591
|
|
$
17,991
|
|
$
18,214
|
|
$
18,410
|
|
$
18,227
|
Current quarter vs
prior year quarter
|
2 %
|
|
2 %
|
|
(2) %
|
|
(5) %
|
|
(12) %
|
|
|
(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
|
|
March 31,
2024
|
(In billions, except
per share amounts)
|
GAAP
|
|
Non-GAAP
(a)
|
Net
revenues
|
$2.50 -
$2.54
|
|
$2.50 -
$2.54
|
Diluted EPS from
continuing operations
|
$0.86 -
$0.90
|
|
$1.19 -
$1.23
|
|
|
|
|
(a) Estimated non-GAAP
amounts above for the three months ending March 31, 2024 reflect
adjustments that exclude the estimated amortization of acquired
intangible assets of approximately $8 million, estimated
stock-based compensation expense and associated employer payroll
tax expense of approximately $145 - $155 million, and estimated
adjustment between our GAAP and non-GAAP tax rate of approximately
$25 - $35 million. The estimated GAAP diluted EPS above does not
assume any 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
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In millions, except
percentages)
|
GAAP operating
income
|
$
410
|
|
$
565
|
|
$
1,941
|
|
$
2,350
|
Stock-based
compensation expense and related employer payroll taxes
|
151
|
|
130
|
|
587
|
|
507
|
Amortization of
acquired intangible assets within cost of net revenues and
operating expenses
|
9
|
|
5
|
|
35
|
|
9
|
Restructuring
|
99
|
|
—
|
|
141
|
|
—
|
Legal
matters
|
15
|
|
50
|
|
65
|
|
50
|
Other general and
administrative expenses
|
2
|
|
—
|
|
3
|
|
23
|
Total non-GAAP
operating income adjustments
|
276
|
|
185
|
|
831
|
|
589
|
Non-GAAP operating
income
|
$
686
|
|
$
750
|
|
$
2,772
|
|
$
2,939
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
16.0 %
|
|
22.5 %
|
|
19.2 %
|
|
24.0 %
|
Non-GAAP operating
margin
|
26.7 %
|
|
29.9 %
|
|
27.4 %
|
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In millions, except
per share amounts and percentages)
|
GAAP income (loss) from
continuing operations before income taxes
|
$
1,031
|
|
$
829
|
|
$
3,707
|
|
$ (1,601)
|
GAAP (provision)
benefit for income taxes
|
(303)
|
|
(158)
|
|
(932)
|
|
327
|
GAAP net income (loss)
from continuing operations
|
$
728
|
|
$
671
|
|
$
2,775
|
|
$ (1,274)
|
Non-GAAP adjustments to
net income (loss) from continuing operations:
|
|
|
|
|
|
|
|
Non-GAAP operating
income from continuing operations adjustments (see table
above)
|
$
276
|
|
$
185
|
|
$
831
|
|
$
589
|
Change in fair value
of equity investment in Adevinta
|
(451)
|
|
(282)
|
|
(1,782)
|
|
2,691
|
Change in fair market
value of warrant
|
(190)
|
|
(16)
|
|
(150)
|
|
230
|
Change in fair market
value of other equity investments
|
18
|
|
(18)
|
|
113
|
|
645
|
Realized change in
fair market value of equity investments
|
(13)
|
|
(2)
|
|
(13)
|
|
216
|
Other significant
gains, losses or charges
|
—
|
|
—
|
|
—
|
|
(1)
|
Income tax effects and
adjustments
|
192
|
|
43
|
|
486
|
|
(784)
|
Non-GAAP net income
from continuing operations
|
$
560
|
|
$
581
|
|
$
2,260
|
|
$
2,312
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) from continuing operations per share:
|
|
|
|
|
|
|
|
GAAP
|
$
1.40
|
|
$
1.23
|
|
$
5.21
|
|
$
(2.28)
|
Non-GAAP
|
$
1.07
|
|
$
1.07
|
|
$
4.24
|
|
$
4.11
|
Shares used in GAAP
diluted net income (loss) per share calculation
|
521
|
|
544
|
|
533
|
|
558
|
Shares used in non-GAAP
diluted net income per share calculation
|
521
|
|
544
|
|
533
|
|
562
|
|
|
|
|
|
|
|
|
GAAP effective tax rate
– Continuing operations
|
29.4 %
|
|
19.1 %
|
|
25.1 %
|
|
20.4 %
|
Income tax effects and
adjustments to net income (loss) from continuing
operations
|
(12.9) %
|
|
(2.6) %
|
|
(8.6) %
|
|
(3.9) %
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
millions)
|
Net cash provided by
continuing operating activities
|
$
123
|
|
$
686
|
|
$
2,431
|
|
$
2,627
|
Less: Purchases of
property and equipment
|
(126)
|
|
(153)
|
|
(456)
|
|
(449)
|
Free cash
flow
|
$
(3)
|
|
$
533
|
|
$
1,975
|
|
$
2,178
|
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SOURCE eBay Inc.