eBay Inc. Reports Fourth Quarter and Full Year 2024 Results
eBay reported strong Q4 2024 financial results with revenue reaching $2.6 billion, up 1% year-over-year. Gross Merchandise Volume (GMV) increased 4% to $19.3 billion. The company achieved GAAP earnings per share of $1.40 and Non-GAAP EPS of $1.25, with operating margins of 21.1% and 27.0% respectively.
For full-year 2024, revenue grew 2% to $10.3 billion, with GMV up 2% to $74.7 billion. The company returned $3.7 billion to stockholders through share repurchases ($3.1 billion) and dividends ($533 million). Q4 advertising revenue reached $445 million, representing 2.3% of GMV, with first-party advertising products growing 18%.
Key business highlights include expanded AI-powered listing tools, new payment options through Klarna partnership across European markets, and achieving 100% renewable energy usage for controlled facilities one year ahead of schedule.
eBay ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con un fatturato che ha raggiunto $2,6 miliardi, in aumento dell'1% rispetto all'anno precedente. Il Volume Lordo di Mercato (GMV) è aumentato del 4% a $19,3 miliardi. L'azienda ha raggiunto un utile per azione GAAP di $1,40 e un EPS Non-GAAP di $1,25, con margini operativi del 21,1% e del 27,0% rispettivamente.
Per l'intero anno 2024, il fatturato è cresciuto del 2% a $10,3 miliardi, con GMV in aumento del 2% a $74,7 miliardi. L'azienda ha restituito $3,7 miliardi agli azionisti tramite riacquisti di azioni ($3,1 miliardi) e dividendi ($533 milioni). Le entrate pubblicitarie del quarto trimestre hanno raggiunto $445 milioni, rappresentando il 2,3% del GMV, con i prodotti pubblicitari di prima parte in crescita del 18%.
Tra i principali punti salienti dell'attività ci sono strumenti di listing potenziati dall'IA, nuove opzioni di pagamento attraverso la partnership con Klarna nei mercati europei e il raggiungimento del 100% di utilizzo di energia rinnovabile per le strutture controllate con un anno di anticipo rispetto al programma.
eBay reportó resultados financieros sólidos para el cuarto trimestre de 2024, con ingresos que alcanzaron $2.6 mil millones, un aumento del 1% en comparación con el año anterior. El Volumen Bruto de Mercancías (GMV) aumentó un 4% a $19.3 mil millones. La compañía logró ganancias por acción GAAP de $1.40 y EPS No-GAAP de $1.25, con márgenes operativos del 21.1% y 27.0% respectivamente.
Para el año completo 2024, los ingresos crecieron un 2% a $10.3 mil millones, con GMV aumentando un 2% a $74.7 mil millones. La compañía devolvió $3.7 mil millones a los accionistas a través de recompras de acciones ($3.1 mil millones) y dividendos ($533 millones). Los ingresos publicitarios del cuarto trimestre alcanzaron los $445 millones, representando el 2.3% del GMV, con los productos publicitarios de primera parte creciendo un 18%.
Los aspectos destacados del negocio incluyen herramientas de listado potenciadas por IA, nuevas opciones de pago a través de la asociación con Klarna en los mercados europeos, y el logro del 100% de uso de energía renovable para las instalaciones controladas un año antes de lo previsto.
이베이는 2024년 4분기 재무 결과가 강력하다고 보고하며, 매출이 $26억에 도달하여 전년 대비 1% 증가했다고 발표했습니다. 총 상품 거래량(GMV)은 4% 증가하여 $193억에 달했습니다. 이 회사는 GAAP 기준 주당 순이익이 $1.40, 비-GAAP EPS가 $1.25에 달하며, 운영 마진은 각각 21.1%와 27.0%에 이릅니다.
2024년 전체 연도에 대해 매출은 2% 증가하여 $103억에 달했으며, GMV는 2% 증가하여 $747억에 이릅니다. 이 회사는 주주에게 $37억을 주식 매입($31억)과 배당금($5.33억)을 통해 반환했습니다. 4분기 광고 수익은 $4.45억에 도달하여 GMV의 2.3%를 차지하며, 자사 광고 제품은 18% 성장했습니다.
주요 비즈니스 하이라이트로는 AI 기반의 목록 도구 확장, 유럽 시장에서 Klarna와의 파트너십을 통한 새로운 결제 옵션, 그리고 관리 시설의 100% 재생 가능 에너지 사용 달성이 예정보다 1년 앞당겨 이루어졌습니다.
eBay a annoncé des résultats financiers solides pour le quatrième trimestre 2024, avec des revenus atteignant $2,6 milliards, en hausse de 1% par rapport à l'année précédente. Le Volume Brut de Marchandises (GMV) a augmenté de 4% pour atteindre $19,3 milliards. L'entreprise a réalisé un bénéfice par action GAAP de $1,40 et un EPS Non-GAAP de $1,25, avec des marges opérationnelles de 21,1% et 27,0% respectivement.
Pour l'année complète 2024, les revenus ont augmenté de 2% pour atteindre $10,3 milliards, avec un GMV en hausse de 2% à $74,7 milliards. L'entreprise a retourné $3,7 milliards aux actionnaires par le biais de rachats d'actions ($3,1 milliards) et de dividendes ($533 millions). Les revenus publicitaires du quatrième trimestre ont atteint $445 millions, représentant 2,3% du GMV, avec des produits publicitaires de première partie en hausse de 18%.
Les points saillants de l'activité comprennent des outils de listing améliorés par l'IA, de nouvelles options de paiement grâce au partenariat avec Klarna sur les marchés européens, et l'atteinte de 100% d'utilisation d'énergie renouvelable pour les installations contrôlées, un an avant le calendrier prévu.
eBay berichtete über starke finanzielle Ergebnisse für das vierte Quartal 2024, mit einem Umsatz von $2,6 Milliarden, was einem Anstieg von 1% im Vergleich zum Vorjahr entspricht. Das Bruttowarenvolumen (GMV) stieg um 4% auf $19,3 Milliarden. Das Unternehmen erzielte einen GAAP-Gewinn pro Aktie von $1,40 und einen Non-GAAP EPS von $1,25, mit operativen Margen von 21,1% und 27,0%.
Für das gesamte Jahr 2024 wuchs der Umsatz um 2% auf $10,3 Milliarden, während das GMV um 2% auf $74,7 Milliarden stieg. Das Unternehmen gab $3,7 Milliarden an die Aktionäre durch Aktienrückkäufe ($3,1 Milliarden) und Dividenden ($533 Millionen) zurück. Die Werbeeinnahmen im vierten Quartal erreichten $445 Millionen, was 2,3% des GMV entspricht, während die Produkte der Erstanbieterwerbung um 18% wuchsen.
Wichtige Geschäftshighlights umfassen erweiterte KI-gestützte Listungswerkzeuge, neue Zahlungsmöglichkeiten durch die Partnerschaft mit Klarna in den europäischen Märkten und die Erreichung einer 100%igen Nutzung erneuerbarer Energien für kontrollierte Einrichtungen ein Jahr früher als geplant.
- Revenue growth of 1% YoY to $2.6B in Q4
- GMV increase of 4% to $19.3B
- Strong advertising revenue growth of 18% YoY
- Significant shareholder returns: $3.7B in 2024
- $7.2B cash and investments position
- Operating margin improvement to 21.1% from 16.0% YoY
- Modest 1% revenue growth rate
- Slight decline in Non-GAAP net income ($607M vs $685M in Q4 2023)
- Advertising revenue at 2.3% of GMV shows penetration
Insights
eBay's Q4 2024 results showcase incremental improvement in a challenging e-commerce landscape, with revenue of $2.6 billion (+1% YoY) and more encouraging GMV growth of 4% at $19.3 billion. This GMV outpacing revenue growth suggests potential pressure on take rates, though it marks the third consecutive quarter of GMV expansion – a positive sign after previous periods of contraction.
The standout performer remains eBay's advertising business, generating
Profitability metrics show material improvement, with GAAP operating margin expanding 510 basis points to
Capital allocation remains shareholder-friendly with
eBay's strategic initiatives – particularly in the UK market, AI-powered listing tools, and expanded payment options through partnerships with Klarna and Riverty – represent attempts to reduce friction in the marketplace and compete more effectively against specialized vertical platforms. The focus on the C2C segment in the UK, including fee elimination, appears defensive against growing competition from platforms like Vinted and Facebook Marketplace.
The consistent GMV growth trajectory, expanding margins, and robust capital return program provide a solid foundation, though eBay's 1-2% topline growth remains modest compared to broader e-commerce growth rates, indicating continued market share challenges despite operational improvements.
- Revenue of
$2.6 billion 1% on an as-reported and FX-Neutral basis - Gross Merchandise Volume ("GMV") of
$19.3 billion 4% on an as-reported basis and up3% on an FX-Neutral basis - GAAP and Non-GAAP earnings per diluted share of
$1.40 $1.25 - GAAP and Non-GAAP operating margins of
21.1% and27.0% , respectively - Returned
$1.0 billion $900 million $128 million
"eBay achieved three consecutive quarters of GMV growth to end 2024, and we took significant steps toward our vision of reinventing the future of ecommerce for enthusiasts," said Jamie Iannone, Chief Executive Officer at eBay. "I'm proud of how the team has innovated for our buyers and sellers, which has driven significant value for shareholders."
"eBay delivered strong results in the fourth quarter, as we met or exceeded expectations across our key financial metrics," said Steve Priest, Chief Financial Officer at eBay. "We created a solid foundation to build upon in 2025, and our outlook reflects our confidence in eBay's ability to drive sustainable, long-term growth."
Fourth Quarter Financial Highlights
- Revenue was
$2.6 billion 1% on an as-reported and foreign exchange ("FX") neutral basis. - GMV was
$19.3 billion 4% on an as-reported basis and up3% on an FX-Neutral basis. - GAAP net income from continuing operations was
$680 million $1.40 - Non-GAAP net income from continuing operations was
$607 million $1.25 - GAAP and Non-GAAP operating margins were
21.1% and27.0% , respectively. - Generated
$677 million of operating cash flow and$560 million - Returned
$1.0 billion $900 million $128 million
Full Year Financial Highlights
- Revenue was
$10 2% on an as-reported and FX-Neutral basis. - GMV was
$74 2% on an as-reported basis and up1% on an FX-Neutral basis. - GAAP net income from continuing operations was
$2 $3.95 - Non-GAAP net income from continuing operations was
$2 $4.88 - GAAP and Non-GAAP operating margins were
22.5% and28.1% , respectively. - Generated
$2.4 billion $2.0 billion - Returned
$3.7 billion $3.1 billion $533 million
Business Highlights
- eBay made a significant investment in the
U.K. market to improve the customer experience for consumer-to-consumer (C2C) sellers, including introducing a simplified listing flow on mobile, launching eBay Balance and Managed Shipping, and revamping local pickup and discovery capabilities. eBay also eliminated final value fees and regulatory operating fees forU.K. C2C sellers across all categories, excluding motor vehicles. - eBay expanded its artificial intelligence (AI)-powered magical bulk listing tool from Sports Trading Cards to all categories in the
U.S. , making it faster and easier for sellers to create detailed, eye-catching listings and get more inventory in front of buyers. - eBay's total advertising offerings generated
$445 million 2.3% of GMV. The company's first-party advertising products delivered$434 million 18% on an as-reported basis and up16% on an FX-Neutral basis. - After a successful launch in
Germany , eBay introduced Klarna's 'buy now, pay later' payment options to millions of shoppers in theU.K. ,Austria ,France ,Italy ,the Netherlands andSpain . Additionally, Klarna users in these countries can now resell items bought through the Klarna app on eBay in minutes, with automatic listing details and images, giving people more flexibility in how they sell. - To offer more locally relevant payment methods, eBay partnered with Riverty to offer buyers in
Germany the option to pay using a monthly invoice, one of the most popular ways German consumers pay online. - eBay announced the latest in its series of exclusive drops from the closets of some of fashion and entertainment's most influential figures with 'From The Collection: Margherita Maccapani Missoni.' The collection features exclusive pre-owned, vintage and archival pieces curated by the fashion designer.
Impact
- Through eBay for Charity, buyers and sellers around the world contributed nearly
$49 million 11% year-over-year, and more than$192 million 18% year-over-year. - In 2024, the eBay Foundation granted nearly
$18 million - eBay received many accolades in 2024, including being named as one of the Most Innovative Companies by Fortune, The World's Most Sustainable Companies by Time, the World's Top Companies for Women by Forbes, and Best Employers for New Grads by Forbes.
- Further reinforcing the company's commitment to sustainability, eBay sourced
100% of its electricity consumption for eBay-controlled offices and data centers from renewable sources in 2024, reaching its renewable energy goal one year early. More recently, in 2025, eBay has set a 2045 net-zero carbon emission target, validated by the Science Based Targets initiative (SBTi).
Fourth Quarter and Full Year 2024 Financial Highlights (presented in millions, except per share data and percentages) | ||||||||
Fourth Quarter | Full Year | |||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||
eBay Inc. | ||||||||
Net revenues | $ 2,579 | $ 2,562 | $ 17 | 1 % | $ 10,283 | $ 10,112 | $ 171 | 2 % |
GAAP – Continuing Operations | ||||||||
Net income | $ 680 | $ 728 | $ (48) | (7) % | $ 1,981 | $ 2,775 | $ (794) | (29) % |
Earnings per diluted share | $ 1.40 | $ 1.40 | $ — | — % | $ 3.95 | $ 5.21 | $ (1.26) | (24) % |
Non-GAAP – Continuing Operations | ||||||||
Net income | $ 607 | $ 560 | $ 47 | 8 % | $ 2,445 | $ 2,260 | $ 185 | 8 % |
Earnings per diluted share | $ 1.25 | $ 1.07 | $ 0.18 | 16 % | $ 4.88 | $ 4.24 | $ 0.64 | 15 % |
Other Selected Financial and Operational Results
- Operating margin – GAAP operating margin increased to
21.1% for the fourth quarter of 2024, compared to16.0% for the same period last year. Non-GAAP operating margin increased to27.0% for the fourth quarter of 2024, compared to26.7% for the same period last year. - Taxes – The GAAP effective tax rate for continuing operations for the fourth quarter of 2024 was (10.3)%, compared to
29.4% for the fourth quarter of 2023. The non-GAAP effective tax rate for continuing operations for the fourth quarter of 2024 was16.5% (1). - Cash flow – The company generated
$677 million $560 million - Capital returns – The company repurchased
$900 million of its common stock, or approximately 14 million shares, in the fourth quarter of 2024. The company's total repurchase authorization remaining as of December 31, 2024 was approximately$3.3 billion $128 million - Cash and cash equivalents and non-equity investments – The company's cash and cash equivalents and non-equity investments portfolio totaled
$7.2 billion
Business Outlook
eBay is providing the following guidance for the first quarter 2025.
In billions, except per share data and percentages | Q1 2025 Guidance |
Revenue | |
FX-Neutral Y/Y Growth | (1)% - |
Gross Merchandise Volume | |
FX-Neutral Y/Y Growth | |
Diluted GAAP EPS | |
Diluted Non-GAAP EPS |
Dividend Declaration
- eBay's Board of Directors has declared a cash dividend of
$0.29
(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 |
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss fourth quarter and full year 2024 results at 2:00 p.m. Pacific Time today. Investors and participants can access the call by dialing (855) 761-5600 in the
eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com and social media channels 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, Securities and Exchange Commission (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
Presentation
All growth rates represent year-over-year comparisons, except as otherwise noted. All amounts in tables are presented in
Non-GAAP Financial Measures
This press release includes the following financial measures defined as "non-GAAP financial measures" by the 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 "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 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 2025 and expected drivers thereof, the future growth in our business, our ability to drive sustainable long-term growth, the effects and potential of current and contemplated strategic initiatives and offerings including with respect to artificial intelligence, payment plans and options and partnerships with other companies, the effects of new product features or programs, 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 sellers and 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 in international markets; the impact of inflationary pressure, fluctuations in foreign currency exchange rates, elevated interest rates and geopolitical events such as the ongoing wars in
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, | December 31, | ||
(In millions) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 2,433 | $ 1,985 | |
Short-term investments | 3,457 | 2,533 | |
Equity investment in Adevinta | — | 4,474 | |
Customer accounts and funds receivable | 962 | 1,013 | |
Other current assets | 715 | 1,011 | |
Total current assets | 7,567 | 11,016 | |
Long-term investments | 2,439 | 1,129 | |
Property and equipment, net | 1,263 | 1,243 | |
Goodwill | 4,269 | 4,267 | |
Operating lease right-of-use assets | 427 | 493 | |
Deferred tax assets | 2,936 | 3,089 | |
Other assets | 464 | 383 | |
Total assets | $ 19,365 | $ 21,620 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term debt | $ 1,673 | $ 750 | |
Accounts payable | 257 | 267 | |
Customer accounts and funds payable | 1,018 | 1,054 | |
Accrued expenses and other current liabilities | 2,184 | 2,196 | |
Income taxes payable | 966 | 253 | |
Total current liabilities | 6,098 | 4,520 | |
Operating lease liabilities | 320 | 387 | |
Deferred tax liabilities | 1,405 | 2,408 | |
Long-term debt | 5,752 | 6,973 | |
Other liabilities | 632 | 936 | |
Total liabilities | 14,207 | 15,224 | |
Total stockholders' equity | 5,158 | 6,396 | |
Total liabilities and stockholders' equity | $ 19,365 | $ 21,620 | |
eBay Inc. | |||||||
Unaudited Condensed Consolidated Statement of Income | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions, except per share amounts) | |||||||
Net revenues | $ 2,579 | $ 2,562 | $ 10,283 | $ 10,112 | |||
Cost of net revenues (1) | 718 | 710 | 2,880 | 2,833 | |||
Gross profit | 1,861 | 1,852 | 7,403 | 7,279 | |||
Operating expenses: | |||||||
Sales and marketing (1) | 609 | 573 | 2,319 | 2,217 | |||
Product development (1) | 375 | 399 | 1,479 | 1,544 | |||
General and administrative (1) | 241 | 365 | 914 | 1,196 | |||
Provision for transaction losses | 87 | 101 | 353 | 360 | |||
Amortization of acquired intangible assets | 6 | 4 | 20 | 21 | |||
Total operating expenses | 1,318 | 1,442 | 5,085 | 5,338 | |||
Income from operations | 543 | 410 | 2,318 | 1,941 | |||
Interest and other: | |||||||
Gain (loss) on equity investments and warrant, net | 44 | 636 | (76) | 1,832 | |||
Interest expense | (65) | (65) | (259) | (263) | |||
Interest income and other, net | 95 | 50 | 295 | 197 | |||
Income from continuing operations before income taxes | 617 | 1,031 | 2,278 | 3,707 | |||
Income tax benefit (provision) | 63 | (303) | (297) | (932) | |||
Income from continuing operations | 680 | 728 | 1,981 | 2,775 | |||
Loss from discontinued operations, net of income taxes | (1) | (4) | (6) | (8) | |||
Net income | $ 679 | $ 724 | $ 1,975 | $ 2,767 | |||
Income per share – basic: | |||||||
Continuing operations | $ 1.43 | $ 1.41 | $ 4.00 | $ 5.24 | |||
Discontinued operations | — | (0.01) | (0.01) | (0.02) | |||
Net income per share – basic | $ 1.43 | $ 1.40 | $ 3.99 | $ 5.22 | |||
Income per share – diluted: | |||||||
Continuing operations | $ 1.40 | $ 1.40 | $ 3.95 | $ 5.21 | |||
Discontinued operations | — | (0.01) | (0.01) | (0.02) | |||
Net income per share – diluted | $ 1.40 | $ 1.39 | $ 3.94 | $ 5.19 | |||
Weighted average shares: | |||||||
Basic | 477 | 518 | 496 | 530 | |||
Diluted | 485 | 521 | 501 | 533 | |||
(1) Includes stock-based compensation as follows: | |||||||
Cost of net revenues | $ 14 | $ 13 | $ 54 | $ 53 | |||
Sales and marketing | 21 | 24 | 91 | 92 | |||
Product development | 70 | 70 | 281 | 272 | |||
General and administrative | 37 | 42 | 162 | 158 | |||
$ 142 | $ 149 | $ 588 | $ 575 | ||||
eBay Inc. | |||||||
Unaudited Condensed Consolidated Statement of Cash Flows | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ 679 | $ 724 | $ 1,975 | $ 2,767 | |||
Loss from discontinued operations, net of income taxes | 1 | 4 | 6 | 8 | |||
Adjustments: | |||||||
Provision for transaction losses | 87 | 101 | 353 | 360 | |||
Depreciation and amortization | 79 | 98 | 324 | 403 | |||
Stock-based compensation | 142 | 149 | 588 | 575 | |||
Loss (gain) on investments and other, net | (64) | 1 | 8 | (5) | |||
Deferred income taxes | (340) | 160 | (874) | 255 | |||
Change in fair value of warrant | (38) | (190) | (158) | (150) | |||
Change in fair value of equity investment in Adevinta | — | (451) | 156 | (1,782) | |||
Change in fair value of equity investment in Adyen | 57 | — | 57 | — | |||
Change in fair value of equity investment in Gmarket | 1 | 13 | 13 | 96 | |||
Change in fair value of equity investment in KakaoBank | — | (13) | — | (2) | |||
Changes in assets and liabilities, net of acquisition effects | 73 | (473) | (34) | (94) | |||
Net cash provided by continuing operating activities | 677 | 123 | 2,414 | 2,431 | |||
Net cash used in discontinued operating activities | — | (1) | — | (5) | |||
Net cash provided by operating activities | 677 | 122 | 2,414 | 2,426 | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (117) | (126) | (458) | (456) | |||
Purchases of investments | (2,383) | (3,267) | (13,855) | (13,874) | |||
Maturities of investments | 1,885 | 3,003 | 12,306 | 14,502 | |||
Exercise of options under warrant | (108) | — | (108) | — | |||
Proceeds from sale of shares in Adevinta, net | — | — | 2,410 | — | |||
Proceeds from sale of shares in Adyen, net | 573 | — | 573 | — | |||
Proceeds from sale of shares in Aurelia, net | 1,036 | — | 1,036 | — | |||
Proceeds from sale of shares in Gmarket, net | 322 | — | 322 | — | |||
Proceeds from sale of shares in KakaoBank, net | — | 106 | — | 106 | |||
Other | 54 | 4 | (13) | (38) | |||
Net cash provided by (used in) investing activities | 1,262 | (280) | 2,213 | 240 | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common stock | 34 | 35 | 92 | 83 | |||
Repurchases of common stock | (911) | (283) | (3,149) | (1,401) | |||
Payments for taxes related to net share settlements of restricted stock units and awards | (52) | (35) | (188) | (171) | |||
Payments for dividends | (128) | (129) | (533) | (528) | |||
Repayment of debt | — | — | (750) | (1,150) | |||
Borrowings under commercial paper program | — | — | 441 | — | |||
Net funds receivable and payable activity | 75 | 33 | 305 | 717 | |||
Other | (10) | — | (24) | — | |||
Net cash used in financing activities | (992) | (379) | (3,806) | (2,450) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (33) | 21 | (28) | 5 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 914 | (516) | 793 | 221 | |||
Cash, cash equivalents and restricted cash at beginning of period | 2,372 | 3,009 | 2,493 | 2,272 | |||
Cash, cash equivalents and restricted cash at end of period | $ 3,286 | $ 2,493 | $ 3,286 | $ 2,493 | |||
eBay Inc. | |||||||||
Unaudited Summary of Consolidated Net Revenues | |||||||||
Three Months Ended | |||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||
(In millions, except percentages) | |||||||||
Total net revenues (1)(2) | $ 2,579 | $ 2,576 | $ 2,572 | $ 2,556 | $ 2,562 | ||||
Current quarter vs prior year quarter | 1 % | 3 % | 1 % | 2 % | 2 % | ||||
Percent from international | 48 % | 49 % | 50 % | 49 % | 50 % | ||||
(1) Hedge gain/(loss) | $ (23) | $ (11) | $ (10) | $ (10) | $ 11 | ||||
(2) Foreign currency impact | $ 5 | $ (6) | $ (11) | $ 14 | $ 63 | ||||
eBay Inc. | |||||||||
Unaudited Supplemental Operating Data | |||||||||
Three Months Ended | |||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||
(In millions, except percentages) | |||||||||
Active Buyers (1) | 134 | 133 | 132 | 132 | 132 | ||||
Current quarter vs prior year quarter | 1 % | 1 % | 0 % | (1) % | (2) % | ||||
Gross Merchandise Volume (2) | |||||||||
$ 9,043 | $ 8,740 | $ 8,798 | $ 8,974 | $ 8,891 | |||||
Current quarter vs prior year quarter | 2 % | 1 % | 1 % | 0 % | 0 % | ||||
International | $ 10,277 | $ 9,566 | $ 9,620 | $ 9,649 | $ 9,700 | ||||
Current quarter vs prior year quarter | 6 % | 2 % | 1 % | 3 % | 4 % | ||||
Total Gross Merchandise Volume | $ 19,320 | $ 18,306 | $ 18,418 | $ 18,623 | $ 18,591 | ||||
Current quarter vs prior year quarter | 4 % | 2 % | 1 % | 1 % | 2 % | ||||
(1) | Active Buyers consist of all buyers who paid for a transaction on our Marketplace platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account. Our acquisitions completed during the periods shown have not materially impacted Active Buyers. |
(2) | Gross Merchandise Volume consists of the total value of all paid transactions between users on our Marketplace 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, 2025 | |||
(In billions, except per share amounts) | GAAP | Non-GAAP (a) | |
Net revenues | |||
Gross Merchandise Volume | |||
Diluted EPS | |||
(a) Estimated non-GAAP amounts above for the three months ending March 31, 2025 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately |
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 and 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, 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 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
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 | Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions, except percentages) | |||||||
GAAP operating income | $ 543 | $ 410 | $ 2,318 | $ 1,941 | |||
Stock-based compensation expense and related employer payroll taxes | 145 | 151 | 602 | 587 | |||
Amortization of acquired intangible assets within cost of net revenues and operating expenses | 10 | 9 | 37 | 35 | |||
Restructuring | — | 99 | (10) | 141 | |||
Non-recurring legal matters | — | 15 | (56) | 65 | |||
Other general and administrative expenses | — | 2 | 1 | 3 | |||
Total non-GAAP operating income adjustments | 155 | 276 | 574 | 831 | |||
Non-GAAP operating income | $ 698 | $ 686 | $ 2,892 | $ 2,772 | |||
GAAP operating margin | 21.1 % | 16.0 % | 22.5 % | 19.2 % | |||
Non-GAAP operating margin | 27.0 % | 26.7 % | 28.1 % | 27.4 % | |||
*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 | Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions, except per share amounts and percentages) | |||||||
GAAP income from continuing operations before income taxes | $ 617 | $ 1,031 | $ 2,278 | $ 3,707 | |||
GAAP benefit (provision) for income taxes | 63 | (303) | (297) | (932) | |||
GAAP net income from continuing operations | $ 680 | $ 728 | $ 1,981 | $ 2,775 | |||
Non-GAAP adjustments to net income from continuing operations: | |||||||
Non-GAAP operating income from continuing operations adjustments (see table above) | $ 155 | $ 276 | $ 574 | $ 831 | |||
Change in fair value of equity investment in Adevinta | — | (451) | 234 | (1,782) | |||
Realized change in fair value of shares sold in Adevinta | — | — | (78) | — | |||
Realized change in fair value of shares sold in Adyen | 57 | — | 57 | — | |||
Change in fair value of other equity investments | 10 | 5 | 21 | 100 | |||
Change in fair value of warrant | (38) | (190) | (158) | (150) | |||
Change in fair value of Aurelia option | (74) | — | — | — | |||
Income tax effects and adjustments | (183) | 192 | (186) | 486 | |||
Non-GAAP net income from continuing operations | $ 607 | $ 560 | $ 2,445 | $ 2,260 | |||
Diluted net income from continuing operations per share: | |||||||
GAAP | $ 1.40 | $ 1.40 | $ 3.95 | $ 5.21 | |||
Non-GAAP | $ 1.25 | $ 1.07 | $ 4.88 | $ 4.24 | |||
Shares used in GAAP diluted net income per share calculation | 485 | 521 | 501 | 533 | |||
Shares used in non-GAAP diluted net income per share calculation | 485 | 521 | 501 | 533 | |||
GAAP effective tax rate – Continuing operations | (10.3) % | 29.4 % | 13.0 % | 25.1 % | |||
Income tax effects and adjustments to net income from continuing operations | 26.8 % | (12.9) % | 3.5 % | (8.6) % | |||
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 | Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions) | |||||||
Net cash provided by operating activities | $ 677 | $ 123 | $ 2,414 | $ 2,431 | |||
Less: Purchases of property and equipment | (117) | (126) | (458) | (456) | |||
Free cash flow | $ 560 | $ (3) | $ 1,956 | $ 1,975 | |||
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SOURCE eBay Inc.
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