- Revenue of $2.5 billion, down
6% on an as-reported basis and down 5% on an FX-Neutral
basis
- Gross Merchandise Volume of $19.4 billion, down 20% on an as-reported basis
and down 17% on an FX-Neutral basis
- GAAP and Non-GAAP EPS per diluted share of
$(2.28) and $1.05, respectively, on a continuing operations
basis
- GAAP and Non-GAAP operating margin of 27.9% and
32.4%, respectively
- Returned $1.4 billion
to shareholders in Q1, including $1.25
billion of share repurchases and $129
million paid in cash dividends
SAN
JOSE, Calif., May 4, 2022
/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 first quarter ended
March 31, 2022.
"Our team has delivered another strong quarter, at the high end
of our expectations," said Jamie
Iannone, Chief Executive Officer of eBay. "Despite the
current macro headwinds, we remain confident in the long-term
strategy we laid out during our Investor Day in March. We are
building an eBay for the future with an eye toward delivering
long-term, sustainable growth. Our enthusiast buyers continue to
shop and engage on eBay regularly, and our results to date
demonstrate our focus category playbook is working."
First Quarter Financial Highlights
- Revenue was $2.5 billion, down 6%
on an as-reported basis and down 5% on a foreign exchange (FX)
neutral basis.
- Gross merchandise volume (GMV) was $19.4
billion, down 20% on an as-reported basis and down 17% 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 $625 million, or $1.05 per diluted share.
- GAAP and Non-GAAP operating margin of 27.9% and 32.4%,
respectively.
- Generated $629 million of
operating cash flow and $546 million
of free cash flow from continuing operations.
- Sold a portion of our shares in Adyen for $551 million.
- Returned $1.4 billion to
shareholders, including $1.3 billion
of share repurchases and $129 million
paid in cash dividends.
Business Highlights
Revenue Initiatives
- eBay announced an agreement with Klarna to enable invoice and
installment payment methods to buyers in Germany. The company began testing the new
features with customers during the first quarter and expects to
make it available to all German buyers in the second quarter.
- eBay launched its new digital wallet where customers can use
proceeds from their sales to conveniently purchase their next item
or pay their selling expenses.
- Promoted Listings delivered $222
million of revenue in the first quarter, down 1% on an
as-reported basis and up 2% on an FX-Neutral basis.
- The company's total advertising offerings generated
approximately $267 million in revenue
in the first quarter, representing roughly 1.4% of GMV.
Tech-Led Reimagination of the Platform
- In April, eBay announced the appointment of Eddie Garcia as Chief Product Officer.
- During the quarter, eBay launched its Authenticity Guarantee
service for trading cards sold for $750+ in the U.S. With this
addition, the company now offers authentication in four key
enthusiast collector categories, including sneakers, watches,
handbags and trading cards.
- eBay expanded its authentication of luxury handbags to the U.K.
and Australia. The company also
expanded the number of brands covered by Authenticity Guarantee and
began authenticating men's bags in the U.S.
- eBay continued to see great traction in its luxury watch
category, with high customer satisfaction leading to positive
double-digit growth. Building on its current authentication service
for watches over $2,000, eBay added
the ability for buyers to request, for a fee, expert verification
for watches valued between $1,000 and
$2,000.
- In January, eBay reintroduced final value fees for sneakers
over $100 in the U.S. and growth
momentum and high customer satisfaction continued. In eBay's
international markets, sneaker GMV also grew significantly faster
than the rest of the business.
- The company continued to invest in full-funnel marketing for
Parts & Accessories, including partnerships with leading
influencers and enthusiasts to showcase eBay's vast inventory
selection, and has started to see modest gains in initial
consideration.
- The company expanded its eBay Refurbished program to
smartwatches, tablets, laptops and desktops from vetted sellers
across major markets. eBay also launched the program in
France and Italy.
- The company announced the eBay Vault, a 31-thousand square
foot, secure storage facility and digital marketplace for trading
cards and collectibles, with plans to expand into luxury goods. The
eBay Vault will provide peace of mind and convenience for the
company's millions of buyers and sellers, and within a few years,
eBay expects the Vault will hold up to $3
billion in assets, making it one of the largest stores of
non-governmental assets in the world.
- eBay made significant changes towards modernizing its Stores
experience, including a new storefront that provides sellers the
ability to tell their story, showcase their brand and increase
trust in their business. The company also optimized SEO for Stores
to drive more free traffic, increased the prominence of Store
inventory and made it easier for enthusiasts to find Stores
throughout the buyer journey.
- To further support sellers and help them grow their buyer base,
eBay more frequently encourages buyers to save sellers for future
purchases. To date, this has driven an increase in the number of
saved sellers by four times.
- The company launched a new eBay app messaging experience to
better connect sellers to their buyers, improve the way sellers
communicate and make it easier to manage messages.
- To reduce friction on cross-border transactions, in Q1 eBay
enabled a new feature to give buyers the option to pay in their
local currency in addition to the currency of the listing.
Impact
- In support of Ukraine, eBay is
waiving Ukrainian seller fees, protecting sellers from late
shipment penalties and negative feedback, and matching employee
donations to organizations supporting Ukraine. In the U.S., U.K., Canada and Australia, the company also launched a "Give
at Checkout" campaign where customers can support Ukraine relief organizations.
- The eBay Foundation committed $11
million in grants to nonprofit organizations during the
first quarter, furthering its mission to remove systemic barriers
to entrepreneurship. In addition, over $2.4
million was raised in March from employee contributions and
eBay Foundation matching gifts, many of which went to support
Ukrainian relief efforts.
- eBay for Charity contributed over $36
million globally during the quarter, up 2%
year-over-year.
- In recognition of the company's ESG efforts, eBay was named to
JUST Capital's "The Just 100 List" in January, which evaluates
companies for its efforts to combat climate change, diversity,
equity and inclusion, employee wellness, local job creation and
customer privacy.
- In January, eBay was also honored with a 2022 Employees' Choice
Award by Glassdoor, recognizing it as a best place to work among
U.S. companies with more than 1,000 employees.
First Quarter 2022
Financial Highlights (presented in millions, except per share data
and percentages)
|
|
First Quarter
|
|
|
|
2022
|
2021
|
Change
|
eBay Inc.
|
|
|
|
|
Net
revenues
|
$
2,483
|
$
2,638
|
$ (155)
|
(6)%
|
GAAP – Continuing Operations
|
|
|
|
|
Income (loss) from continuing operations
|
$
(1,339)
|
$ 568
|
$
(1,907)
|
**
|
Earnings (loss) per diluted share from continuing
operations
|
$ (2.28)
|
$ 0.82
|
$ (3.10)
|
**
|
Non-GAAP – Continuing
Operations
|
|
|
|
|
Net
income
|
$ 625
|
$ 748
|
$ (123)
|
(16)%
|
Earnings per diluted share
|
$ 1.05
|
$ 1.08
|
$ (0.03)
|
(2)%
|
** Not
meaningful
|
Other Selected Financial and Operational Results
- Operating margin – GAAP operating margin decreased to 27.9% for
the first quarter of 2022, compared to 31.9% for the same period
last year. Non-GAAP operating margin decreased to 32.4% in the
first quarter of 2022, compared to 37.3% for the same period last
year.
- Taxes – The GAAP effective tax rate for continuing operations
for the first quarter of 2022 was 18.8%, compared to 21.6% for the
first quarter of 2021. The non-GAAP effective tax rate for
continuing operations for the first quarter of 2022 was
16.5%(1).
- Cash flow – The company generated $629
million of operating cash flow and $546 million of free cash flow from continuing
operations during the first quarter of 2022.
- Capital returns – The company repurchased approximately
$1.25 billion of its common
stock, or approximately 22 million shares, in the first
quarter of 2022. The company's total repurchase authorization
remaining as of March 31, 2022 was $4.7
billion. The company also paid cash dividends of
$129 million during the first quarter
of 2022.
- Cash and cash equivalents and non-equity investments – The
company's cash and cash equivalents and non-equity investments
portfolio totaled $6.3 billion as of
March 31, 2022.
Business Outlook
eBay is providing the following guidance for continuing
operations for the second quarter and full year 2022.
In billions, except per share data and
percentages
|
Q2 2022 Guidance
|
Full Year 2022 Guidance
|
Revenue
|
$2.35 -
$2.40
|
$9.6 -
$9.9
|
Organic FX-Neutral Y/Y Growth
|
(9)% - (7)%
|
(6)% - (3)%
|
|
|
|
Diluted GAAP EPS
|
$0.61 -
$0.65
|
$(0.25) -
$(0.05)
|
|
|
|
Diluted Non-GAAP EPS
|
$0.87 -
$0.91
|
$3.90 -
$4.10
|
Dividend Declaration
- eBay's Board of Directors has declared a cash dividend of
$0.22 per share of the company's
common stock. The dividend is payable on June 17, 2022 to stockholders of record as of
June 1, 2022.
(1) 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.
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss first quarter
2022 results at 2:30 p.m. Pacific Time today. Investors and
participants can access the call by dialing (833) 350-1438 in the
U.S. and (647) 689-6641 internationally. The passcode for the
conference line is 9580075. 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 2021, eBay enabled over $87
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 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 Margin to Non-GAAP Operating Margin,"
"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 second quarter and full year 2022 and the
future growth in its business, the effects of COVID-19 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, the duration of the COVID-19 pandemic
and 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 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.
|
|
Company
News:
|
https://www.ebayinc.com/stories/news/
|
Investor Relations
website:
|
https://investors.ebayinc.com
|
eBay
Inc.
Unaudited Condensed
Consolidated Balance Sheet
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
(In millions)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
$
1,798
|
|
$
1,379
|
Short-term investments
|
3,771
|
|
5,944
|
Customer accounts and funds receivable
|
626
|
|
681
|
Other current assets
|
1,154
|
|
1,107
|
Total current assets
|
7,349
|
|
9,111
|
Long-term
investments
|
2,213
|
|
2,575
|
Property and equipment,
net
|
1,192
|
|
1,236
|
Goodwill
|
4,141
|
|
4,178
|
Operating lease
right-of-use assets
|
570
|
|
289
|
Deferred tax
assets
|
3,224
|
|
3,255
|
Equity investment in
Adevinta
|
3,748
|
|
5,391
|
Other assets
|
543
|
|
591
|
Total assets
|
$
22,980
|
|
$
26,626
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term debt
|
$
1,755
|
|
$
1,355
|
Accounts payable
|
245
|
|
262
|
Customer accounts and funds payable
|
652
|
|
707
|
Accrued expenses and other current liabilities
|
1,851
|
|
1,927
|
Income taxes payable
|
479
|
|
371
|
Total current
liabilities
|
4,982
|
|
4,622
|
Operating lease
liabilities
|
481
|
|
200
|
Deferred tax
liabilities
|
2,701
|
|
3,116
|
Long-term
debt
|
6,578
|
|
7,727
|
Other
liabilities
|
1,184
|
|
1,183
|
Total liabilities
|
15,926
|
|
16,848
|
Total stockholders'
equity
|
7,054
|
|
9,778
|
Total liabilities and
stockholders' equity
|
$
22,980
|
|
$
26,626
|
eBay
Inc.
Unaudited Condensed
Consolidated Statement of Income
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
|
(In millions, except per share
amounts)
|
Net revenues
|
$
2,483
|
|
$
2,638
|
Cost of net revenues
(1)
|
689
|
|
606
|
Gross profit
|
1,794
|
|
2,032
|
Operating
expenses:
|
|
|
|
Sales and marketing (1)
|
478
|
|
546
|
Product development (1)
|
301
|
|
304
|
General and administrative (1)
|
226
|
|
246
|
Provision for transaction losses
|
96
|
|
88
|
Amortization of acquired intangible assets
|
1
|
|
7
|
Total operating
expenses
|
1,102
|
|
1,191
|
Income from
operations
|
692
|
|
841
|
Gain (loss) on equity
investments and warrant, net
|
(2,291)
|
|
(36)
|
Interest and other,
net
|
(50)
|
|
(81)
|
Income (loss) from
continuing operations before income taxes
|
(1,649)
|
|
724
|
Income tax benefit
(provision)
|
310
|
|
(156)
|
Income (loss) from
continuing operations
|
(1,339)
|
|
568
|
Income (loss) from
discontinued operations, net of income taxes
|
(2)
|
|
73
|
Net income
(loss)
|
$
(1,341)
|
|
$
641
|
|
|
|
|
Income (loss) per share
– basic:
|
|
|
|
Continuing
operations
|
$
(2.28)
|
|
$
0.83
|
Discontinued
operations
|
—
|
|
0.11
|
Net income (loss) per
share – basic
|
$
(2.28)
|
|
$
0.94
|
|
|
|
|
Income (loss) per share
– diluted:
|
|
|
|
Continuing
operations
|
$
(2.28)
|
|
$
0.82
|
Discontinued
operations
|
—
|
|
0.10
|
Net income (loss) per
share – diluted
|
$
(2.28)
|
|
$
0.92
|
|
|
|
|
Weighted average
shares:
|
|
|
|
Basic
|
587
|
|
681
|
Diluted
|
587
|
|
693
|
|
|
|
|
(1) Includes
stock-based compensation as follows:
|
|
|
|
Cost of net revenues
|
$
12
|
|
$
10
|
Sales and marketing
|
20
|
|
20
|
Product development
|
45
|
|
42
|
General and administrative
|
34
|
|
31
|
|
$
111
|
|
$
103
|
eBay
Inc.
Unaudited Condensed
Consolidated Statement of Cash Flows
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
|
(In millions)
|
Cash flows from
operating activities:
|
|
|
|
Net
income (loss)
|
$
(1,341)
|
|
$
641
|
(Income) loss from discontinued operations, net of income
taxes
|
2
|
|
(73)
|
Adjustments:
|
|
|
|
Provision for transaction
losses
|
96
|
|
88
|
Depreciation and
amortization
|
118
|
|
134
|
Stock-based
compensation
|
111
|
|
103
|
(Gain) loss on investments,
net
|
14
|
|
(1)
|
Deferred income
taxes
|
(376)
|
|
103
|
Change in fair value of
warrant
|
115
|
|
36
|
Change in fair value of equity
investment in Adevinta
|
1,643
|
|
—
|
Change in fair value of equity
investment in Gmarket
|
182
|
|
—
|
Unrealized change in fair value
of equity investment in KakaoBank
|
91
|
|
—
|
Unrealized change in fair value
of equity investment in Adyen
|
80
|
|
—
|
Realized change in fair value
of shares sold in Adyen
|
166
|
|
—
|
Loss on extinguishment of
debt
|
—
|
|
10
|
Changes in assets and
liabilities, net of acquisition effects
|
(272)
|
|
(93)
|
Net cash provided by
continuing operating activities
|
629
|
|
948
|
Net cash provided by
(used in) discontinued operating activities
|
(16)
|
|
94
|
Net cash provided by
operating activities
|
613
|
|
1,042
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property and equipment
|
(83)
|
|
(83)
|
Purchases of investments
|
(5,475)
|
|
(3,424)
|
Maturities and sales of investments
|
6,827
|
|
3,772
|
Proceeds from the sale of shares in Adyen
|
473
|
|
—
|
Proceeds from the sale of shares in KakaoBank
|
27
|
|
—
|
Other
|
3
|
|
2
|
Net cash provided by
continuing investing activities
|
1,772
|
|
267
|
Net cash provided by
(used in) discontinued investing activities
|
—
|
|
(2)
|
Net cash provided by
investing activities
|
1,772
|
|
265
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from issuance of common stock
|
1
|
|
—
|
Repurchases of common stock
|
(1,069)
|
|
(304)
|
Payments for taxes related to net share settlements of
restricted stock units and awards
|
(61)
|
|
(20)
|
Payments for dividends
|
(129)
|
|
(122)
|
Repayment of debt
|
(750)
|
|
(1,156)
|
Net
borrowings under commercial paper program
|
—
|
|
400
|
Net
funds receivable and payable activity
|
56
|
|
97
|
Other
|
—
|
|
4
|
Net cash used in
continuing financing activities
|
(1,952)
|
|
(1,101)
|
Net cash provided by
(used in) discontinued financing activities
|
—
|
|
(68)
|
Net cash used in
financing activities
|
(1,952)
|
|
(1,169)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(18)
|
|
(11)
|
Net increase in cash,
cash equivalents and restricted cash
|
415
|
|
127
|
Cash, cash equivalents
and restricted cash at beginning of period
|
1,406
|
|
1,594
|
Cash, cash equivalents
and restricted cash at end of period
|
$
1,821
|
|
$
1,721
|
Less: Cash, cash equivalents and restricted cash of
discontinued operations
|
—
|
|
199
|
Cash, cash equivalents
and restricted cash of continuing operations at end of
period
|
$
1,821
|
|
$
1,522
|
eBay
Inc.
Unaudited Summary of
Consolidated Net Revenues
|
|
|
Three Months Ended
|
|
March 31,
2022
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
(In millions, except
percentages)
|
Net Revenues by Type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net transaction
revenues (1)
|
$
2,355
|
|
$
2,450
|
|
$
2,350
|
|
$
2,496
|
|
$
2,476
|
Current quarter vs
prior year quarter
|
(5)%
|
|
6%
|
|
12%
|
|
14%
|
|
50%
|
Percent from
international
|
52%
|
|
54%
|
|
54%
|
|
53%
|
|
53%
|
|
|
|
|
|
|
|
|
|
|
Marketing services and
other revenues
|
128
|
|
163
|
|
151
|
|
172
|
|
162
|
Current quarter vs
prior year quarter
|
(21)%
|
|
(4)%
|
|
(6)%
|
|
13%
|
|
(4)%
|
Percent from
international
|
24%
|
|
23%
|
|
24%
|
|
25%
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
Total net revenues
(2)
|
$
2,483
|
|
$
2,613
|
|
$
2,501
|
|
$
2,668
|
|
$
2,638
|
Current quarter vs prior year
quarter
|
(6)%
|
|
5%
|
|
11%
|
|
14%
|
|
45%
|
|
|
|
|
|
|
|
|
|
|
(1) Hedge
gain/(loss)
|
$
6
|
|
$
—
|
|
$
(19)
|
|
$
(18)
|
|
$
(28)
|
(2) Foreign currency
impact
|
$
(58)
|
|
$
7
|
|
$
32
|
|
$
95
|
|
$
54
|
eBay
Inc.
Unaudited
Supplemental Operating Data
|
|
|
Three Months Ended
|
|
March 31,
2022
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
(In millions, except
percentages)
|
Active Buyers (1)
|
142
|
|
147
|
|
152
|
|
156
|
|
163
|
Current quarter vs prior year
quarter
|
(13)%
|
|
(9)%
|
|
(5)%
|
|
(2)%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
Gross Merchandise Volume
(2)
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
9,335
|
|
$
9,724
|
|
$
9,312
|
|
$
10,332
|
|
$
10,813
|
Current quarter vs prior year
quarter
|
(14)%
|
|
(2)%
|
|
(8)%
|
|
(6)%
|
|
36%
|
International
|
$
10,074
|
|
$
11,002
|
|
$
10,613
|
|
$
12,255
|
|
$
13,314
|
Current quarter vs prior year
quarter
|
(24)%
|
|
(16)%
|
|
(11)%
|
|
(7)%
|
|
31%
|
Total GMV
|
$
19,409
|
|
$
20,726
|
|
$
19,925
|
|
$
22,587
|
|
$
24,127
|
Current quarter vs prior year
quarter
|
(20)%
|
|
(10)%
|
|
(10)%
|
|
(7)%
|
|
33%
|
|
(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)
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
|
|
June 30, 2022
|
(In billions, except per share
amounts)
|
GAAP
|
|
Non-GAAP (a)
|
Net Revenue
|
$2.35 -
$2.40
|
|
$2.35 -
$2.40
|
Diluted EPS from continuing
operations
|
$0.61 -
$0.65
|
|
$0.87 -
$0.91
|
|
|
|
|
|
Twelve Months Ending
|
|
December 31, 2022
|
(In billions, except per share
amounts)
|
GAAP
|
|
Non-GAAP (b)
|
Net Revenue
|
$9.6 -
$9.9
|
|
$9.6 -
$9.9
|
Diluted EPS from continuing
operations
|
$(0.25) -
$(0.05)
|
|
$3.90 -
$4.10
|
|
|
|
|
(a) Estimated
non-GAAP amounts above for the three months ending June 30, 2022
reflect adjustments that exclude the estimated amortization of
acquired intangible assets of approximately $1 - $2 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,
2022 reflect adjustments that exclude the estimated amortization of
acquired intangible assets of approximately $2 - $5 million,
estimated stock-based compensation expense and associated employer
payroll tax expense of approximately $525 - $545 million and
estimated adjustment between our GAAP and non-GAAP tax rate of
approximately $105 - $125 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 margin, 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
margin 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 Margin to Non-GAAP Operating
Margin
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
|
(In millions, except
percentages)
|
GAAP operating
income
|
$
692
|
|
$
841
|
Stock-based compensation expense and related employer payroll
taxes
|
117
|
|
104
|
Amortization of acquired intangible assets within operating
expenses
|
1
|
|
7
|
Other significant gains, losses or charges
|
(5)
|
|
33
|
Total non-GAAP operating income
adjustments
|
113
|
|
144
|
Non-GAAP operating
income
|
$
805
|
|
$
985
|
Non-GAAP operating
margin
|
32.4%
|
|
37.3%
|
|
Reconciliation of
GAAP Net Income to Non-GAAP Net Income and
GAAP Effective Tax
Rate to Non-GAAP Effective Tax Rate*
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
|
(In millions, except per share
amounts and percentages)
|
GAAP income (loss) from
continuing operations before income taxes
|
$
(1,649)
|
|
$
724
|
GAAP (provision)
benefit for income taxes
|
310
|
|
(156)
|
GAAP net income (loss)
from continuing operations
|
$
(1,339)
|
|
$
568
|
Non-GAAP adjustments to
net income (loss) from continuing operations:
|
|
|
|
Non-GAAP operating income from continuing operations
adjustments (see table above)
|
$
113
|
|
$
144
|
Loss on investments
|
527
|
|
—
|
Change in fair market value of warrant
|
115
|
|
36
|
Change in fair value of equity investment in
Adevinta
|
1,643
|
|
—
|
Income tax effects and adjustments
|
(434)
|
|
—
|
Non-GAAP net income
from continuing operations
|
$
625
|
|
$
748
|
|
|
|
|
Diluted net income
(loss) from continuing operations per share:
|
|
|
|
GAAP
|
$
(2.28)
|
|
$
0.82
|
Non-GAAP
|
$
1.05
|
|
$
1.08
|
Shares used in GAAP
diluted net income (loss) per-share calculation
|
587
|
|
693
|
Shares used in non-GAAP
diluted net income per-share calculation
|
593
|
|
693
|
|
|
|
|
GAAP effective tax rate
– Continuing operations
|
18.8%
|
|
21.6%
|
Income tax effects and
adjustments to net income (loss) from continuing
operations
|
(2.3)%
|
|
(4.3)%
|
Non-GAAP effective tax
rate – Continuing operations
|
16.5%
|
|
17.3%
|
|
*Presented on a
continuing operations basis
|
|
Reconciliation of
Operating Cash Flow to Free Cash Flow*
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
|
(In millions)
|
Net cash provided by
continuing operating activities
|
$
629
|
|
$
948
|
Less: Purchases of
property and equipment
|
(83)
|
|
(83)
|
Free cash
flow
|
$
546
|
|
$
865
|
|
*Presented on a
continuing operations basis
|
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SOURCE eBay Inc.