- Revenue of $2.5 billion, down
4% on an as-reported basis and down 1% on an FX-Neutral
basis
- Gross Merchandise Volume of $18.2 billion, down 12% on an as-reported basis
and down 6% on an FX-Neutral basis
- GAAP and Non-GAAP EPS per diluted share of
$1.23 and $1.07, respectively, on a continuing operations
basis
- GAAP and Non-GAAP operating margin of 22.5% and
29.9%, respectively
- Returned over $419
million to shareholders in Q4, including $300 million of share repurchases and
$119 million paid in cash
dividends
- Board of Directors declared a quarterly dividend of
$0.25 per share, a 14% increase from
the prior quarterly dividend
SAN
JOSE, Calif., Feb. 22,
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 fourth
quarter and full year ended December 31, 2022.
"In 2022, we made significant progress on our multi-year
strategic journey," said Jamie
Iannone, Chief Executive Officer at eBay. "Our focus
category playbook continues to drive underlying growth in our
business and the investments we've made in core technology are
enabling us to innovate on behalf of our customers more quickly. We
have a talented team, a strong strategic vision and a persistent
focus on operational excellence that will create long-term value
for our shareholders in the years ahead."
"Our Q4 results demonstrate the continued resilience of our
marketplace amid economic uncertainty," said Steve Priest, Chief Financial Officer at eBay.
"I'm extremely proud of our teams for delivering on their quarterly
financial commitments, maintaining prudent cost discipline, and
executing key deliverables in support of our strategy."
Fourth Quarter Financial Highlights
- Revenue was $2.5 billion, down 4%
on an as-reported basis and down 1% on a foreign exchange (FX)
neutral basis.
- Gross Merchandise Volume (GMV) was $18.2
billion, down 12% on an as-reported basis and down 6% on an
FX-Neutral basis.
- GAAP net income from continuing operations was $671 million, or $1.23 per diluted share, primarily driven by the
change in fair value of our equity investments.
- Non-GAAP net income from continuing operations was $581 million, or $1.07 per diluted share.
- GAAP and Non-GAAP operating margin was 22.5% and 29.9%,
respectively.
- Generated $686 million of
operating cash flow and $533 million
of free cash flow from continuing operations.
- Returned over $419 million to
shareholders, including $300 million
of share repurchases and $119 million
paid in cash dividends.
- Issued $1.15 billion of senior
unsecured notes in November
2022.
Full Year Financial Highlights
- Revenue was $9.8 billion, down 6%
on an as-reported basis and down 4% on an FX-Neutral basis.
- GMV was $73.9 billion, down 15%
on an as-reported basis and down 11% on an FX-Neutral basis.
- GAAP net loss from continuing operations was $1.3 billion, or $(2.28) per diluted share, primarily driven by
the change in fair value of our equity investments.
- Non-GAAP net income from continuing operations was $2.3 billion, or $4.11 per diluted share.
- GAAP and Non-GAAP operating margin was 24.0% and 30.0%,
respectively.
- Generated $2.6 billion of
operating cash flow and $2.2 billion
of free cash flow from continuing operations.
- Sold shares in Adevinta, Adyen and KakaoBank for cash proceeds
of $1.1 billion in the
aggregate.
- Returned over $3.6 billion to
shareholders, including $3.1 billion
of share repurchases and $489 million
paid in cash dividends.
Business Highlights
Revenue Initiatives
- eBay's first party advertising products, primarily driven by
Promoted Listings, delivered $276
million of revenue in the fourth quarter, up 19% on an
as-reported basis and up 27% on an FX-Neutral basis.
- The company's total advertising offerings generated over
$319 million in revenue in the fourth
quarter, representing roughly 1.8% of GMV.
- For sellers who use Promoted Listings Advanced, eBay launched
Quick Setup, a one-click campaign creation solution where eBay
automates and optimizes the campaign structure, ad groups,
targeting and keyword bids. The company also introduced multi-user
account access across the full suite of Promoted Listings, which
enables eBay sellers to delegate campaign management to trusted
third-parties like brands or ad agencies.
- During the quarter, eBay introduced split payments in the U.S.
for transactions over $1,000,
enabling buyers to spread large purchases across two credit
cards.
- In Australia, eBay launched
ZipPay and ZipMoney as additional Buy Now, Pay Later options for
eligible customers. With the introduction of ZipMoney, eBay buyers
can enjoy up to six months of interest-free payment installments
for items like luxury handbags, smartphones and car parts.
Tech-Led Reimagination of the Platform
- eBay and Nike commemorated 20 years of the Nike SB Dunk with a
general re-release of the "eBay Dunk." The companies auctioned 10
exclusive, limited edition tribute pairs, with proceeds benefiting
the Bodecker Foundation.
- eBay opened a pop-up Luxury Exchange store in New York City, where shoppers were invited to
have their jewelry, handbags and watches appraised and exchanged
for "closet currency" to purchase authentic items from eBay's top
luxury sellers.
- To further improve trust for Motors Parts and Accessories
(P&A) buyers, eBay launched a "Fits Your Vehicle" badge that
clearly indicates if a part fits their vehicle. The badge is
displayed prominently throughout the buyer's journey across search,
merchandising, view item and checkout.
- In Q4, eBay Motors began a major evolution of its tire
installation capabilities, broadening its network of installation
partners to better serve P&A buyers in more locations. The
company is also making installation more visible on the View Item
page and prompting buyers to select installation at checkout on
desktop and mobile web.
- eBay Motors sponsored Sarah and Bridget
Burgess for their October 14
ARCA Menards West Series race, which marks the first time in NASCAR
and ARCA history that a mother and daughter raced each other in the
sport.
- eBay hosted Love Island U.K. Ambassador Tasha Ghouri's Store of Preloved Sparkle,
showcasing a curated collection of party clothes, refurbished tech
and Authenticity Guaranteed handbags and watches to promote non-new
gifting and party wear.
- In February 2023, eBay acquired
3PM Shield, a provider of advanced
AI-based marketplace compliance solutions. This acquisition further
enhances eBay's world-class monitoring solutions with technologies
designed to prevent the sale of counterfeit items, unsafe products
and illegal goods, and is part of eBay's ongoing commitment to
provide sellers and buyers with a safe and trusted platform.
Impact
- In 2022, eBay generated $4.6
billion in positive economic impact through the sale of
pre-loved and refurbished goods. This activity avoided 1.6 million
metric tons of carbon emissions and kept 73,000 metric tons of
waste from going into landfills.
- In recognition of the company's sustainability efforts, eBay
was included in the Dow Jones Sustainability World and North
American Indices as well as CDP's A List for 2022. Additionally,
eBay ranked number one on Cross-Border Commerce Europe's list of
the Top Sustainable Marketplaces Operating in Europe.
- During the quarter, eBay published its inaugural Small Business
Report, which examines how sellers start their businesses on eBay
and the important ways in which the marketplace has fueled their
growth while enabling community and global reach.
- eBay released its U.S. Women-Owned Small Online Business Export
Report, which details how women entrepreneurs on eBay are building
successful business enterprises for the long haul by exporting to
new global markets.
- The company launched the eBay Academy for Japan, which teaches Japanese sellers of all
levels how to take advantage of the tools at their fingertips by
providing them with e-learning materials, online seminars,
workshops and the eBay Talks podcast.
- The eBay Foundation granted nearly $23
million in 2022, primarily to non-profit organizations
advancing inclusive entrepreneurship and through the company's
employee matching gifts program.
- eBay for Charity contributed more than $35 million globally during the quarter and more
than $163 million in 2022.
Fourth Quarter and Full Year 2022
Financial Highlights (presented in millions, except per share data
and percentages)
|
|
Fourth
Quarter
|
|
|
Full
Year
|
|
|
|
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
eBay
Inc.
|
|
|
|
|
|
|
|
|
Net
revenues
|
$ 2,510
|
$ 2,613
|
$ (103)
|
(4) %
|
$ 9,795
|
$
10,420
|
$ (625)
|
(6) %
|
GAAP – Continuing
Operations
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing
operations
|
$
671
|
$ (893)
|
$ 1,564
|
**
|
$
(1,274)
|
$
252
|
$
(1,526)
|
**
|
Earnings (loss) per
diluted share
from continuing operations
|
$ 1.23
|
$ (1.47)
|
$ 2.70
|
**
|
$ (2.28)
|
$ 0.38
|
$ (2.66)
|
**
|
Non-GAAP –
Continuing
Operations
|
|
|
|
|
|
|
|
|
Net income
|
$
581
|
$
647
|
$
(66)
|
(10) %
|
$ 2,312
|
$ 2,661
|
$ (349)
|
(13) %
|
Earnings per diluted
share
|
$ 1.07
|
$ 1.05
|
$ 0.02
|
2 %
|
$ 4.11
|
$ 4.02
|
$ 0.09
|
2 %
|
Other Selected Financial and Operational Results
- Operating margin – GAAP operating margin decreased to 22.5% for
the fourth quarter of 2022, compared to 26.3% for the same period
last year. Non-GAAP operating margin decreased to 29.9% in the
fourth quarter of 2022, compared to 31.6% for the same period last
year.
- Taxes – The GAAP effective tax rate for continuing operations
for the fourth quarter of 2022 was 19.1%, compared to 23.1% for the
fourth quarter of 2021. The non-GAAP effective tax rate for
continuing operations for the fourth quarter of 2022 was
16.5%(1).
- Cash flow – The company generated $686
million of operating cash flow and $533 million of free cash flow from continuing
operations during the fourth quarter of 2022.
- Capital returns – The company repurchased $300 million of its common stock, or roughly 7
million shares, in the fourth quarter of 2022. The company's total
repurchase authorization remaining as of December 31, 2022 was more than $2.8 billion. The company also paid cash
dividends of $119 million during the
fourth quarter of 2022.
- Cash and cash equivalents and non-equity investments – The
company's cash and cash equivalents and non-equity investments
portfolio totaled $5.9 billion as of
December 31, 2022.
Business Outlook
eBay is providing the following guidance for continuing
operations for Q1 2023.
In billions, except
per share data and percentages
|
Q1 2023
Guidance
|
Revenue
|
$2.46 -
$2.50
|
Organic FX-Neutral
Y/Y Growth
|
0% -
2%
|
|
|
Diluted GAAP
EPS
|
$0.77 -
$0.81
|
|
|
Diluted Non-GAAP
EPS
|
$1.05 -
$1.09
|
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 March 24, 2023 to stockholders of record as of
March 10, 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 fourth quarter
and full year 2022 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 millions of buyers and sellers in more than 190 markets
around the world. We exist to enable economic opportunity for
individuals, entrepreneurs, businesses and organizations of all
sizes. 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 applied to current year
transactional currency amounts. We define Organic FX-Neutral
revenue growth as reported revenue growth, excluding incremental
revenue from acquisitions or dispositions for the twelve-month
period following such acquisitions or dispositions and foreign
exchange rate effects.
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 2023 and the
future growth in our business, the effects of geopolitical events
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 predicted or implied and
reported results should not be considered as an indication of
future performance. Other 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, the
effects of COVID-19 on our business and operations and on the
general economy, including effects on our sellers and customers,
any regional or general economic downturn or crisis and any
conditions that affect e-commerce 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 its 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; 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
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
(In millions)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
2,154
|
|
$
1,379
|
Short-term
investments
|
2,625
|
|
5,944
|
Equity investment in
Adevinta
|
2,692
|
|
—
|
Customer accounts and
funds receivable
|
763
|
|
681
|
Other current
assets
|
1,056
|
|
1,107
|
Total current
assets
|
9,290
|
|
9,111
|
Long-term
investments
|
1,797
|
|
2,575
|
Property and equipment,
net
|
1,238
|
|
1,236
|
Goodwill
|
4,262
|
|
4,178
|
Operating lease
right-of-use assets
|
513
|
|
289
|
Deferred tax
assets
|
3,169
|
|
3,255
|
Equity investment in
Adevinta
|
—
|
|
5,391
|
Other assets
|
581
|
|
591
|
Total
assets
|
$
20,850
|
|
$
26,626
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
1,150
|
|
$
1,355
|
Accounts
payable
|
261
|
|
262
|
Customer accounts and
funds payable
|
768
|
|
707
|
Accrued expenses and
other current liabilities
|
1,866
|
|
1,927
|
Income taxes
payable
|
226
|
|
371
|
Total current
liabilities
|
4,271
|
|
4,622
|
Operating lease
liabilities
|
418
|
|
200
|
Deferred tax
liabilities
|
2,245
|
|
3,116
|
Long-term
debt
|
7,721
|
|
7,727
|
Other
liabilities
|
1,042
|
|
1,183
|
Total
liabilities
|
15,697
|
|
16,848
|
Total stockholders'
equity
|
5,153
|
|
9,778
|
Total liabilities and
stockholders' equity
|
$
20,850
|
|
$
26,626
|
eBay Inc.
Unaudited Condensed Consolidated Statement of
Income
|
|
|
Three Months
Ended December
31,
|
|
Year
Ended December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(In millions, except
per share amounts)
|
Net revenues
|
$
2,510
|
|
$
2,613
|
|
$
9,795
|
|
$
10,420
|
Cost of net revenues
(1)
|
681
|
|
694
|
|
2,680
|
|
2,650
|
Gross
profit
|
1,829
|
|
1,919
|
|
7,115
|
|
7,770
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and marketing
(1)
|
554
|
|
569
|
|
2,136
|
|
2,170
|
Product development
(1)
|
340
|
|
337
|
|
1,330
|
|
1,325
|
General and
administrative (1)
|
288
|
|
206
|
|
963
|
|
921
|
Provision for
transaction losses
|
81
|
|
119
|
|
332
|
|
422
|
Amortization of
acquired intangible assets
|
1
|
|
—
|
|
4
|
|
9
|
Total operating
expenses
|
1,264
|
|
1,231
|
|
4,765
|
|
4,847
|
Income from
operations
|
565
|
|
688
|
|
2,350
|
|
2,923
|
Gain (loss) on equity
investments and warrant, net
|
319
|
|
(1,875)
|
|
(3,786)
|
|
(2,365)
|
Interest and other,
net
|
(55)
|
|
26
|
|
(165)
|
|
(160)
|
Income (loss) from
continuing operations before income
taxes
|
829
|
|
(1,161)
|
|
(1,601)
|
|
398
|
Income tax benefit
(provision)
|
(158)
|
|
268
|
|
327
|
|
(146)
|
Income (loss) from
continuing operations
|
671
|
|
(893)
|
|
(1,274)
|
|
252
|
Income (loss) from
discontinued operations, net of income
taxes
|
1
|
|
2,862
|
|
5
|
|
13,356
|
Net income
(loss)
|
$
672
|
|
$
1,969
|
|
$
(1,269)
|
|
$
13,608
|
|
|
|
|
|
|
|
|
Income (loss) per share
– basic:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.24
|
|
$
(1.47)
|
|
$
(2.28)
|
|
$
0.39
|
Discontinued
operations
|
0.00
|
|
4.72
|
|
0.01
|
|
20.48
|
Net income (loss) per
share – basic
|
$
1.24
|
|
$
3.25
|
|
$
(2.27)
|
|
$
20.87
|
|
|
|
|
|
|
|
|
Income (loss) per share
– diluted:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.23
|
|
$
(1.47)
|
|
$
(2.28)
|
|
$
0.38
|
Discontinued
operations
|
0.00
|
|
4.72
|
|
0.01
|
|
20.16
|
Net income (loss) per
share – diluted
|
$
1.23
|
|
$
3.25
|
|
$
(2.27)
|
|
$
20.54
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
541
|
|
606
|
|
558
|
|
652
|
Diluted
|
544
|
|
606
|
|
558
|
|
663
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation as follows:
|
|
|
|
|
|
|
|
Cost of net
revenues
|
$
13
|
|
$
12
|
|
$
51
|
|
$
47
|
Sales and
marketing
|
16
|
|
13
|
|
73
|
|
83
|
Product
development
|
62
|
|
49
|
|
222
|
|
196
|
General and
administrative
|
37
|
|
38
|
|
148
|
|
151
|
|
$
128
|
|
$
112
|
|
$
494
|
|
$
477
|
eBay Inc.
Unaudited Condensed Consolidated Statement of Cash
Flows
|
|
|
Three Months
Ended December
31,
|
|
Year
Ended December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(In
millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
672
|
|
$
1,969
|
|
$
(1,269)
|
|
$
13,608
|
(Income) from
discontinued operations, net of income taxes
|
(1)
|
|
(2,862)
|
|
(5)
|
|
(13,356)
|
Adjustments:
|
|
|
|
|
|
|
|
Provision for
transaction losses
|
81
|
|
119
|
|
332
|
|
422
|
Depreciation and
amortization
|
107
|
|
122
|
|
442
|
|
502
|
Stock-based
compensation
|
128
|
|
112
|
|
494
|
|
477
|
Loss (gain) on
investments and other, net
|
14
|
|
(120)
|
|
21
|
|
(159)
|
Deferred income
taxes
|
27
|
|
(721)
|
|
(780)
|
|
(680)
|
Change in fair value
of warrant
|
(16)
|
|
29
|
|
230
|
|
(354)
|
Change in fair value
of equity investment in Adevinta
|
(282)
|
|
1,573
|
|
2,691
|
|
3,070
|
Change in fair value
of equity investment in Adyen
|
—
|
|
10
|
|
261
|
|
10
|
Change in fair value
of equity investment in Gmarket
|
(5)
|
|
3
|
|
294
|
|
3
|
Change in fair value
of equity investment in KakaoBank
|
(28)
|
|
109
|
|
293
|
|
(486)
|
Loss on impairment of
equity investment in Paytm Mall
|
—
|
|
160
|
|
—
|
|
160
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
10
|
Changes in assets and
liabilities, net of acquisition effects
|
(11)
|
|
(28)
|
|
(377)
|
|
(134)
|
Net cash provided by
continuing operating activities
|
686
|
|
475
|
|
2,627
|
|
3,093
|
Net cash used in
discontinued operating activities
|
(2)
|
|
(182)
|
|
(373)
|
|
(436)
|
Net cash provided by
operating activities
|
684
|
|
293
|
|
2,254
|
|
2,657
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(153)
|
|
(103)
|
|
(449)
|
|
(444)
|
Purchases of
investments
|
(3,311)
|
|
(7,058)
|
|
(18,534)
|
|
(22,161)
|
Maturities and sales
of investments
|
2,379
|
|
5,018
|
|
20,626
|
|
18,770
|
Proceeds from sale of
shares in Adevinta
|
8
|
|
2,325
|
|
8
|
|
2,325
|
Proceeds from sale of
shares in Adyen
|
—
|
|
—
|
|
800
|
|
—
|
Proceeds from sale of
shares in KakaoBank
|
—
|
|
—
|
|
287
|
|
114
|
Acquisition of
TCGplayer, net of cash acquired
|
(208)
|
|
—
|
|
(208)
|
|
—
|
Settlement of foreign
exchange derivative instruments in equity
investments
|
—
|
|
85
|
|
—
|
|
85
|
Exercise of options
under warrant
|
—
|
|
(110)
|
|
—
|
|
(110)
|
Other
|
(9)
|
|
(9)
|
|
(71)
|
|
4
|
Net cash provided by
(used in) continuing investing activities
|
(1,294)
|
|
148
|
|
2,459
|
|
(1,417)
|
Net cash provided by
discontinued investing activities
|
—
|
|
2,637
|
|
2
|
|
5,080
|
Net cash provided by
(used in) investing activities
|
(1,294)
|
|
2,785
|
|
2,461
|
|
3,663
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock
|
32
|
|
36
|
|
87
|
|
93
|
Repurchases of common
stock
|
(315)
|
|
(3,089)
|
|
(3,143)
|
|
(7,055)
|
Payments for taxes
related to net share settlements of restricted
stock units and awards
|
(30)
|
|
(50)
|
|
(160)
|
|
(236)
|
Payments for
dividends
|
(119)
|
|
(107)
|
|
(489)
|
|
(466)
|
Proceeds from issuance
of long-term debt, net
|
1,143
|
|
—
|
|
1,143
|
|
2,478
|
Repayment of
debt
|
—
|
|
—
|
|
(1,355)
|
|
(1,156)
|
Net funds receivable
and payable activity
|
33
|
|
(99)
|
|
125
|
|
(208)
|
Other
|
—
|
|
(1)
|
|
—
|
|
(7)
|
Net cash provided by
(used in) continuing financing activities
|
744
|
|
(3,310)
|
|
(3,792)
|
|
(6,557)
|
Net cash provided by
discontinued financing activities
|
—
|
|
23
|
|
—
|
|
25
|
Net cash provided by
(used in) financing activities
|
744
|
|
(3,287)
|
|
(3,792)
|
|
(6,532)
|
Effect of exchange rate
changes on cash, cash equivalents and
restricted cash
|
32
|
|
(6)
|
|
(57)
|
|
24
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
166
|
|
(215)
|
|
866
|
|
(188)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
2,106
|
|
1,621
|
|
1,406
|
|
1,594
|
Cash, cash equivalents
and restricted cash at end of period
|
$
2,272
|
|
$
1,406
|
|
$
2,272
|
|
$
1,406
|
eBay
Inc. Unaudited Summary of Consolidated Net
Revenues
|
|
|
Three Months
Ended
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
(In millions, except
percentages)
|
Total net revenues
(1)(2)(3)
|
$
2,510
|
|
$
2,380
|
|
$
2,422
|
|
$
2,483
|
|
$
2,613
|
Current quarter vs
prior year quarter
|
(4) %
|
|
(5) %
|
|
(9) %
|
|
(6) %
|
|
5 %
|
Percent from
international
|
51 %
|
|
50 %
|
|
51 %
|
|
51 %
|
|
52 %
|
|
|
|
|
|
|
|
|
|
|
(1) Hedge
gain/(loss)
|
$
89
|
|
$
36
|
|
$
9
|
|
$
6
|
|
$
—
|
(2) Foreign
currency impact
|
$
(67)
|
|
$
(100)
|
|
$
(95)
|
|
$
(58)
|
|
$
7
|
|
|
(3)
|
Beginning in the fourth
quarter of 2022, we present revenues generated from our Marketplace
GMV and from 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
|
|
December 31,
2022
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
(In millions, except
percentages)
|
Active Buyers
(1)
|
134
|
|
135
|
|
138
|
|
142
|
|
147
|
Current quarter vs
prior year quarter
|
(9) %
|
|
(11) %
|
|
(12) %
|
|
(13) %
|
|
(9) %
|
Active Buyers
excluding GittiGidiyor
and TCGplayer (2)
|
132
|
|
133
|
|
135
|
|
138
|
|
143
|
Current quarter vs
prior year quarter
|
(8) %
|
|
(10) %
|
|
(11) %
|
|
(12) %
|
|
(8) %
|
|
|
|
|
|
|
|
|
|
|
Gross Merchandise
Volume (3)
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
8,894
|
|
$
8,699
|
|
$
8,982
|
|
$
9,335
|
|
$
9,724
|
Current quarter vs
prior year quarter
|
(9) %
|
|
(7) %
|
|
(13) %
|
|
(14) %
|
|
(2) %
|
International
|
$
9,333
|
|
$
9,016
|
|
$
9,567
|
|
$
10,074
|
|
$
11,002
|
Current quarter vs
prior year quarter
|
(15) %
|
|
(15) %
|
|
(22) %
|
|
(24) %
|
|
(16) %
|
Total Gross
Merchandise Volume
|
$
18,227
|
|
$
17,715
|
|
$
18,549
|
|
$
19,409
|
|
$
20,726
|
Current quarter vs
prior year quarter
|
(12) %
|
|
(11) %
|
|
(18) %
|
|
(20) %
|
|
(10) %
|
|
|
(1)
|
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. Revenue guidance is provided on an FX-Neutral basis and
excludes incremental revenue from acquisitions or dispositions for
the twelve-month period following such acquisitions or
dispositions. 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 its 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,
2023
|
(In billions, except
per share amounts)
|
GAAP
|
|
Non-GAAP
(a)
|
Net
Revenue
|
$2.46 -
$2.50
|
|
$2.46 -
$2.50
|
Diluted EPS from
continuing operations
|
$0.77 -
$0.81
|
|
$1.05 -
$1.09
|
|
|
|
|
(a) Estimated non-GAAP
amounts above for the three months ending March 31, 2023 reflect
adjustments that exclude the
estimated amortization of acquired intangible assets of
approximately $5 - $10 million, estimated stock-based
compensation
expense and associated employer payroll tax expense of
approximately $130 - $140 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.
|
|
|
|
|
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 applied to current year
transactional currency amounts. The company defines organic
FX-Neutral revenue growth as reported revenue growth, excluding
incremental revenue from acquisitions or dispositions for the
twelve-month period following such acquisitions or dispositions and
foreign exchange rate effects.
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.
eBay
Inc. Reconciliation of GAAP Operating Income to
Non-GAAP Operating Income*
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(In millions, except
percentages)
|
GAAP operating
income
|
$
565
|
|
$
688
|
|
$
2,350
|
|
$
2,923
|
Stock-based
compensation expense and related employer
payroll taxes
|
130
|
|
115
|
|
507
|
|
489
|
Amortization of
acquired intangible assets within cost of net
revenues and operating expenses
|
5
|
|
—
|
|
9
|
|
9
|
Other significant
gains, losses or charges
|
50
|
|
23
|
|
73
|
|
58
|
Total non-GAAP
operating income adjustments
|
185
|
|
138
|
|
589
|
|
556
|
Non-GAAP operating
income
|
$
750
|
|
$
826
|
|
$
2,939
|
|
$
3,479
|
Non-GAAP operating
margin
|
29.9 %
|
|
31.6 %
|
|
30.0 %
|
|
33.4 %
|
|
*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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(In millions, except
per share amounts and percentages)
|
GAAP income (loss) from
continuing operations before income
taxes
|
$
829
|
|
$ (1,161)
|
|
$ (1,601)
|
|
$
398
|
GAAP (provision)
benefit for income taxes
|
(158)
|
|
268
|
|
327
|
|
(146)
|
GAAP net income (loss)
from continuing operations
|
$
671
|
|
$
(893)
|
|
$ (1,274)
|
|
$
252
|
Non-GAAP adjustments to
net income (loss) from continuing
operations:
|
|
|
|
|
|
|
|
Non-GAAP operating
income from continuing operations
adjustments (see table above)
|
$
185
|
|
$
138
|
|
$
589
|
|
$
556
|
Loss on
investments
|
(20)
|
|
275
|
|
861
|
|
(361)
|
Change in fair market
value of warrant
|
(16)
|
|
29
|
|
230
|
|
(354)
|
Change in fair value
of equity investment in Adevinta
|
(282)
|
|
1,573
|
|
2,691
|
|
3,070
|
Other significant
gains, losses or charges
|
—
|
|
(71)
|
|
(1)
|
|
(85)
|
Income tax effects and
adjustments
|
43
|
|
(404)
|
|
(784)
|
|
(417)
|
Non-GAAP net income
from continuing operations
|
$
581
|
|
$
647
|
|
$
2,312
|
|
$
2,661
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) from continuing operations per share:
|
|
|
|
|
|
|
|
GAAP
|
$
1.23
|
|
$
(1.47)
|
|
$
(2.28)
|
|
$
0.38
|
Non-GAAP
|
$
1.07
|
|
$
1.05
|
|
$
4.11
|
|
$
4.02
|
Shares used in GAAP
diluted net income (loss) per-share
calculation
|
544
|
|
606
|
|
558
|
|
663
|
Shares used in non-GAAP
diluted net income per-share
calculation
|
544
|
|
615
|
|
562
|
|
663
|
|
|
|
|
|
|
|
|
GAAP effective tax rate
– Continuing operations
|
19.1 %
|
|
23.1 %
|
|
20.4 %
|
|
36.6 %
|
Income tax effects and
adjustments to net income (loss) from
continuing operations
|
(2.6) %
|
|
(5.8) %
|
|
(3.9) %
|
|
(19.2) %
|
Non-GAAP effective tax
rate – Continuing operations
|
16.5 %
|
|
17.3 %
|
|
16.5 %
|
|
17.4 %
|
Reconciliation of
Operating Cash Flow to Free Cash Flow
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(In
millions)
|
Net cash provided by
continuing operating activities
|
$
686
|
|
$
475
|
|
$
2,627
|
|
$
3,093
|
Less: Purchases of
property and equipment
|
(153)
|
|
(103)
|
|
(449)
|
|
(444)
|
Free cash
flow
|
$
533
|
|
$
372
|
|
$
2,178
|
|
$
2,649
|
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SOURCE eBay Inc.