eBay Inc. Reports Third Quarter 2024 Results
eBay reported its Q3 2024 financial results, highlighting a 3% increase in revenue to $2.6 billion on both as-reported and FX-Neutral basis. Gross Merchandise Volume (GMV) rose by 2% to $18.3 billion. GAAP and Non-GAAP EPS were $1.29 and $1.19, respectively. GAAP and Non-GAAP operating margins stood at 23.1% and 27.2%. eBay returned $881 million to shareholders, including $750 million in share repurchases and $131 million in dividends. The company launched a redesigned advertising platform, expanded its seller financing options, and introduced AI-powered tools. Total advertising revenue hit $408 million, up 15%. eBay's Q4 guidance projects revenue between $2.53 billion to $2.59 billion and EPS in the range of $0.96 to $1.01 (GAAP) and $1.17 to $1.22 (Non-GAAP).
eBay ha riportato i risultati finanziari per il terzo trimestre del 2024, evidenziando un aumento del 3% del fatturato, che ha raggiunto 2,6 miliardi di dollari sia in base ai dati riportati che in base FX-Neutrale. Il Volume Lordo della Mercanzia (GMV) è cresciuto del 2%, arrivando a 18,3 miliardi di dollari. Gli utili per azione secondo i principi contabili GAAP e Non-GAAP sono stati rispettivamente 1,29 dollari e 1,19 dollari. I margini operativi GAAP e Non-GAAP si sono attestati al 23,1% e al 27,2%. eBay ha restituito 881 milioni di dollari agli azionisti, di cui 750 milioni in riacquisti di azioni e 131 milioni in dividendi. L'azienda ha lanciato una piattaforma pubblicitaria rinnovata, ampliato le opzioni di finanziamento per i venditori e introdotto strumenti alimentati dall'IA. I ricavi totali della pubblicità hanno raggiunto 408 milioni di dollari, con un incremento del 15%. La previsione per il quarto trimestre di eBay stima ricavi compresi tra 2,53 miliardi e 2,59 miliardi di dollari e utili per azione nella fascia di 0,96 e 1,01 dollari (GAAP) e 1,17 e 1,22 dollari (Non-GAAP).
eBay anunció sus resultados financieros para el tercer trimestre de 2024, destacando un incremento del 3% en ingresos, alcanzando 2.6 mil millones de dólares tanto en base reportada como en base neutra ante el FX. El Volumen Bruto de Mercancías (GMV) creció un 2% hasta 18.3 mil millones de dólares. Las ganancias por acción bajo GAAP y Non-GAAP fueron de 1.29 dólares y 1.19 dólares, respectivamente. Los márgenes operativos bajo GAAP y Non-GAAP se situaron en 23.1% y 27.2%. eBay devolvió 881 millones de dólares a los accionistas, incluyendo 750 millones en recompra de acciones y 131 millones en dividendos. La compañía lanzó una plataforma de publicidad rediseñada, amplió sus opciones de financiación para vendedores e introdujo herramientas impulsadas por IA. Los ingresos totales por publicidad alcanzaron 408 millones de dólares, un aumento del 15%. Las proyecciones para el cuarto trimestre de eBay estiman ingresos entre 2.53 y 2.59 mil millones de dólares y ganancias por acción en el rango de 0.96 a 1.01 dólares (GAAP) y 1.17 a 1.22 dólares (Non-GAAP).
eBay는 2024년 3분기 재무 실적을 발표하며 3%의 수익 증가로 26억 달러에 이르렀음을 강조했습니다. 총 상품 거래액(GMV)는 2% 증가하여 183억 달러에 도달했습니다. GAAP 및 비GAAP 주당순이익(EPS)는 각각 1.29달러와 1.19달러였습니다. GAAP 및 비GAAP 영업 마진은 각각 23.1% 및 27.2%로 나타났습니다. eBay는 8억 8100만 달러를 주주들에게 환원했으며, 이 중 7억 5000만 달러는 자사주 매입, 1억 3100만 달러는 배당금이었습니다. 회사는 재설계된 광고 플랫폼을 출시하고, 판매자 자금 지원 옵션을 확대했으며, AI 기반 도구를 도입했습니다. 총 광고 수익은 4억 800만 달러에 달해 15% 증가했습니다. eBay의 4분기 가이던스는 매출이 25억 3000만 달러에서 25억 9000만 달러 사이가 될 것으로 예상하며, GAAP 기준으로 0.96에서 1.01달러, 비GAAP 기준으로 1.17에서 1.22달러 범위에 있을 것으로 보입니다.
eBay a publié ses résultats financiers pour le troisième trimestre 2024, soulignant une augmentation de 3% du chiffre d'affaires à 2,6 milliards de dollars tant sur une base reportée que FX-Neutre. Le Volume Brut de Marchandise (GMV) a augmenté de 2% pour atteindre 18,3 milliards de dollars. Les BPA GAAP et Non-GAAP étaient respectivement de 1,29 dollar et 1,19 dollar. Les marges opérationnelles GAAP et Non-GAAP se sont établies à 23,1% et 27,2%. eBay a restitué 881 millions de dollars aux actionnaires, dont 750 millions en rachat d'actions et 131 millions en dividendes. L'entreprise a lancé une plateforme publicitaire repensée, élargi ses options de financement pour les vendeurs et introduit des outils alimentés par l'IA. Le chiffre d'affaires publicitaire total a atteint 408 millions de dollars, en hausse de 15%. Les prévisions d'eBay pour le quatrième trimestre annoncent un chiffre d'affaires compris entre 2,53 et 2,59 milliards de dollars et un BPA dans la fourchette de 0,96 à 1,01 dollar (GAAP) et 1,17 à 1,22 dollar (Non-GAAP).
eBay hat seine finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht und hebt einen Anstieg von 3% beim Umsatz auf 2,6 Milliarden Dollar sowohl nach dem Bericht als auch auf FX-neutraler Basis hervor. Der Bruttowarenwert (GMV) stieg um 2% auf 18,3 Milliarden Dollar. Die GAAP- und Non-GAAP EPS lagen bei 1,29 Dollar und 1,19 Dollar respektive. Die GAAP- und Non-GAAP Betriebs margen betrugen 23,1% und 27,2%. eBay gab 881 Millionen Dollar an die Aktionäre zurück, darunter 750 Millionen Dollar für Aktienrückkäufe und 131 Millionen Dollar in Dividenden. Das Unternehmen hat eine neu gestaltete Werbeplattform gestartet, seine Finanzierungsmöglichkeiten für Verkäufer erweitert und KI-gesteuerte Werkzeuge eingeführt. Der Gesamtertrag aus Werbung erreichte 408 Millionen Dollar, was einem Anstieg von 15% entspricht. Die Umsatzprognose für das 4. Quartal von eBay liegt zwischen 2,53 Milliarden und 2,59 Milliarden Dollar und EPS im Bereich von 0,96 bis 1,01 Dollar (GAAP) und 1,17 bis 1,22 Dollar (Non-GAAP).
- Revenue increased by 3% to $2.6 billion.
- GMV rose by 2% to $18.3 billion.
- GAAP EPS of $1.29 and Non-GAAP EPS of $1.19.
- GAAP operating margin improved to 23.1%.
- Non-GAAP operating margin improved to 27.2%.
- Returned $881 million to shareholders.
- Total advertising revenue increased by 15% to $408 million.
- GAAP net income decreased by 51% to $636 million.
- GAAP EPS decreased by 48% to $1.29.
Insights
Q3 results demonstrate solid performance with
The company maintains strong liquidity with
Strategic initiatives in Focus Categories and advertising are yielding positive results, with first-party ad products showing particular strength. The expansion of seller financing options and AI-powered tools demonstrates commitment to platform enhancement and seller support. The pre-loved fashion initiatives and partnerships with CFDA and BFC position eBay well in the growing circular economy market.
The
- Revenue of
$2.6 billion 3% on an as-reported and FX-Neutral basis - Gross Merchandise Volume of
$18.3 billion 2% on an as-reported basis and up1% on an FX-Neutral basis - GAAP and Non-GAAP earnings per diluted share of
$1.29 $1.19 - GAAP and Non-GAAP operating margins of
23.1% and27.2% , respectively - Returned
$881 million $750 million $131 million
"We achieved another quarter of positive GMV growth and delivered strong results across our key metrics," said Jamie Iannone, Chief Executive Officer at eBay. "Our Focus Categories and geo-specific investments are driving momentum in the business, and we are leveraging the power of Al to create magical innovations for our customers."
"eBay delivered strong top and bottom line results in Q3," said Steve Priest, Chief Financial Officer at eBay. "Solid execution within our strategic initiatives drove continued GMV growth amid a dynamic macro environment, and we are continuing to invest for the long-term while generating significant earnings growth and capital returns for shareholders."
Third Quarter Financial Highlights
- Revenue was
$2.6 billion 3% on an as-reported and foreign exchange (FX) neutral basis. - Gross Merchandise Volume (GMV) was
$18.3 billion 2% on an as-reported basis and up1% on an FX-Neutral basis. - GAAP net income from continuing operations was
$636 million $1.29 - Non-GAAP net income from continuing operations was
$588 million $1.19 - GAAP and Non-GAAP operating margins were
23.1% and27.2% , respectively. - Generated
$755 million $646 million - Returned
$881 million $750 million $131 million
Business Highlights
- eBay launched its redesigned global advertising platform, unifying and simplifying the experience and empowering sellers with tools to better achieve their advertising goals.
- eBay's first-party advertising products delivered
$396 million 15% on an as-reported basis and up14% on an FX-Neutral basis. The company's total advertising offerings generated$408 million 2.2% of GMV. - The company expanded its eBay Seller Capital program with two new seller financing options. In partnership with Liberis, eBay launched Business Cash Advance and Flexible Cash Advance, making it easier and faster for eligible eBay sellers in the
U.S. to access capital and accelerate their growth. - eBay released its magical AI-powered bulk listing tool to Sports Trading Cards sellers in the
U.S. , making it faster and easier to create detailed, eye-catching listings and get more inventory in front of buyers. - eBay released the second generation of its proprietary LiLiuM series of Large Language Models (LLMs) to its engineers. Developed in-house using the company's high-performance supercomputer, these models have outperformed public benchmarks in eBay-specific tasks like description generation, title creation, aspect extraction, and pricing predictions.
- eBay consignment was expanded to include handbags in the U.K., making it easier for even more consumers to participate in circular fashion.
- The company held its first-ever Pre-Loved Fashion Week, in partnership with the Council of Fashion Designers of America (CFDA) and the British Fashion Council (BFC). As part of the event, eBay's "Endless Runway" shows were streamed via eBay Live, allowing shoppers to buy pre-loved fashion straight off the runway.
- eBay was named the official collectibles partner of The New York Times' The Athletic, bringing exclusive content to a broader audience and empowering them to discover and purchase unique collectible items on eBay.
- The company announced the appointment of Samantha Wellington as Chief Legal Officer, General Counsel and Secretary.
- eBay announced the appointment of William (Bill) D. Nash, CEO of CarMax, to its Board of Directors.
Impact
- The eBay Foundation announced its 2024 Global Give grantees, awarding a total of nearly
$3 million - Through eBay for Charity, buyers and sellers contributed more than
$49 million 21% year-over-year. - eBay was recognized in the Fortune Change the World 2024™ List for being a leader in recommerce and empowering the circular economy.
Third Quarter 2024 Financial Highlights (presented in millions, except per share data and percentages)
Third Quarter | ||||
2024 | 2023 | Change | ||
eBay Inc | ||||
Net revenues | $ 2,576 | $ 2,500 | $ 76 | 3 % |
GAAP – Continuing Operations | ||||
Net income | $ 636 | $ 1,306 | $ (670) | (51) % |
Earnings per diluted share | $ 1.29 | $ 2.46 | $ (1.17) | (48) % |
Non-GAAP – Continuing Operations | ||||
Net income | $ 588 | $ 545 | $ 43 | 8 % |
Earnings per diluted share | $ 1.19 | $ 1.03 | $ 0.16 | 16 % |
Other Selected Financial and Operational Results
- Operating margin – GAAP operating margin increased to
23.1% for the third quarter of 2024, compared to18.2% for the same period last year. Non-GAAP operating margin increased to27.2% for the third quarter of 2024, compared to26.4% for the same period last year. - Taxes – The GAAP effective tax rate for continuing operations for the third quarter of 2024 was
20.2% , compared to21.4% for the third quarter of 2023. The non-GAAP effective tax rate for continuing operations for the third quarter of 2024 was16.5% (1). - Cash flow – The company generated
$755 million $646 million - Capital returns – The company repurchased
$750 million $1.2 billion $131 million - Cash and cash equivalents and non-equity investments – The company's cash and cash equivalents and non-equity investments portfolio totaled
$5.8 billion
Business Outlook
eBay is providing the following guidance for the fourth quarter and full year 2024.
In billions, except per share data and percentages | Q4 2024 Guidance | Full Year 2024 Guidance |
Revenue | ||
FX-NeutralY/Y Growth | (1)% - | |
Diluted GAAP EPS | ||
Diluted Non-GAAP EPS |
Dividend Declaration
- eBay's Board of Directors has declared a cash dividend of
$0.27
(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 third quarter 2024 results at 2:30 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 as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor this website, in addition to following our press releases, SEC filings, public conference calls and webcasts.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in
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 Securities and Exchange Commission (SEC): non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and FX-Neutral basis. These non-GAAP financial measures are presented on a continuing operations basis. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles (GAAP). For a reconciliation of these non-GAAP financial measures, except for figures in this press release presented on an "FX-Neutral basis," to the nearest comparable GAAP measures, see "Business Outlook," "Non-GAAP Measures of Financial Performance," "Reconciliation of GAAP Operating Income to Non-GAAP Operating Income," "Reconciliation of GAAP Net Income to Non-GAAP Net Income and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate" and "Reconciliation of Operating Cash Flow to Free Cash Flow" included in this press release. For figures in this press release reported "on an FX-Neutral basis," we calculate the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company's current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of eBay Inc. and its consolidated subsidiaries, including management's vision for the future of eBay and our ability to accomplish our vision, expected financial results for the fourth quarter and full year 2024 and expected drivers thereof, the future growth in our business, the effects and potential of current and contemplated strategic initiatives and offerings including with respect to artificial intelligence and partnership 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
| |||
September 30, | December 31, | ||
(In millions) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,589 | $ 1,985 | |
Short-term investments | 3,302 | 2,533 | |
Equity investment in Adevinta | — | 4,474 | |
Customer accounts and funds receivable | 984 | 1,013 | |
Other current assets | 1,186 | 1,011 | |
Total current assets | 7,061 | 11,016 | |
Long-term investments | 1,534 | 1,129 | |
Equity investment in Aurelia | 1,910 | — | |
Property and equipment, net | 1,273 | 1,243 | |
Goodwill | 4,321 | 4,267 | |
Operating lease right-of-use assets | 428 | 493 | |
Deferred tax assets | 2,984 | 3,089 | |
Other assets | 404 | 383 | |
Total assets | $ 19,915 | $ 21,620 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term debt | $ 1,243 | $ 750 | |
Accounts payable | 283 | 267 | |
Customer accounts and funds payable | 1,048 | 1,054 | |
Accrued expenses and other current liabilities | 2,275 | 2,196 | |
Income taxes payable | 790 | 253 | |
Total current liabilities | 5,639 | 4,520 | |
Operating lease liabilities | 326 | 387 | |
Deferred tax liabilities | 1,777 | 2,408 | |
Long-term debt | 6,175 | 6,973 | |
Other liabilities | 578 | 936 | |
Total liabilities | 14,495 | 15,224 | |
Total stockholders' equity | 5,420 | 6,396 | |
Total liabilities and stockholders' equity | $ 19,915 | $ 21,620 | |
eBay Inc Unaudited Condensed Consolidated Statement of Income
| |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions, except per share amounts) | |||||||
Net revenues | $ 2,576 | $ 2,500 | $ 7,704 | $ 7,550 | |||
Cost of net revenues (1) | 727 | 705 | 2,162 | 2,123 | |||
Gross profit | 1,849 | 1,795 | 5,542 | 5,427 | |||
Operating expenses: | |||||||
Sales and marketing (1) | 592 | 567 | 1,710 | 1,644 | |||
Product development (1) | 374 | 401 | 1,104 | 1,145 | |||
General and administrative (1) | 194 | 283 | 673 | 831 | |||
Provision for transaction losses | 89 | 85 | 266 | 259 | |||
Amortization of acquired intangible assets | 5 | 4 | 14 | 17 | |||
Total operating expenses | 1,254 | 1,340 | 3,767 | 3,896 | |||
Income from operations | 595 | 455 | 1,775 | 1,531 | |||
Interest and other: | |||||||
Gain (loss) on equity investments and warrant, net | 199 | 1,212 | (120) | 1,196 | |||
Interest expense | (63) | (65) | (194) | (198) | |||
Interest income and other, net | 66 | 59 | 200 | 147 | |||
Income from continuing operations before income taxes | 797 | 1,661 | 1,661 | 2,676 | |||
Income tax provision | (161) | (355) | (360) | (629) | |||
Income from continuing operations | 636 | 1,306 | 1,301 | 2,047 | |||
Loss from discontinued operations, net of income taxes | (2) | (1) | (5) | (4) | |||
Net income | $ 634 | $ 1,305 | $ 1,296 | $ 2,043 | |||
Income per share – basic: | |||||||
Continuing operations | $ 1.31 | $ 2.47 | $ 2.59 | $ 3.84 | |||
Discontinued operations | — | — | (0.01) | (0.01) | |||
Net income per share – basic | $ 1.31 | $ 2.47 | $ 2.58 | $ 3.83 | |||
Income per share – diluted: | |||||||
Continuing operations | $ 1.29 | $ 2.46 | $ 2.57 | $ 3.81 | |||
Discontinued operations | — | — | (0.01) | (0.01) | |||
Net income per share – diluted | $ 1.29 | $ 2.46 | $ 2.56 | $ 3.80 | |||
Weighted average shares: | |||||||
Basic | 487 | 529 | 502 | 533 | |||
Diluted | 494 | 532 | 507 | 537 | |||
(1) Includes stock-based compensation as follows: | |||||||
Cost of net revenues | $ 13 | $ 13 | $ 40 | $ 40 | |||
Sales and marketing | 22 | 23 | 70 | 68 | |||
Product development | 70 | 69 | 211 | 202 | |||
General and administrative | 41 | 39 | 125 | 116 | |||
$ 146 | $ 144 | $ 446 | $ 426 | ||||
eBay Inc Unaudited Condensed Consolidated Statement of Cash Flows | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ 634 | $ 1,305 | $ 1,296 | $ 2,043 | |||
Loss from discontinued operations, net of income taxes | 2 | 1 | 5 | 4 | |||
Adjustments: | |||||||
Provision for transaction losses | 89 | 85 | 266 | 259 | |||
Depreciation and amortization | 92 | 97 | 245 | 305 | |||
Stock-based compensation | 146 | 144 | 446 | 426 | |||
Loss (gain) on investments and other, net | (54) | 44 | 84 | 88 | |||
Deferred income taxes | (11) | 173 | (534) | 95 | |||
Change in fair value of warrant | (145) | 109 | (120) | 40 | |||
Change in fair value of equity investment in Adevinta | — | (1,367) | 156 | (1,331) | |||
Changes in assets and liabilities, net of acquisition effects | 2 | 271 | (107) | 379 | |||
Net cash provided by continuing operating activities | 755 | 862 | 1,737 | 2,308 | |||
Net cash used in discontinued operating activities | — | — | — | (4) | |||
Net cash provided by operating activities | 755 | 862 | 1,737 | 2,304 | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (109) | (85) | (341) | (330) | |||
Purchases of investments | (3,559) | (2,920) | (11,472) | (10,607) | |||
Maturities of investments | 3,722 | 3,117 | 10,421 | 11,499 | |||
Proceeds from sale of shares in Adevinta | (7) | — | 2,410 | — | |||
Other | 2 | (16) | (67) | (42) | |||
Net cash provided by investing activities | 49 | 96 | 951 | 520 | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common stock | 3 | — | 58 | 48 | |||
Repurchases of common stock | (755) | (626) | (2,238) | (1,118) | |||
Payments for taxes related to net share settlements of | (40) | 24 | (136) | (136) | |||
Payments for dividends | (131) | (132) | (405) | (399) | |||
Repayment of debt | (750) | — | (750) | (1,150) | |||
Borrowings under commercial paper program | 441 | — | 441 | — | |||
Net funds receivable and payable activity | 223 | 121 | 230 | 684 | |||
Other | — | — | (14) | — | |||
Net cash used in financing activities | (1,009) | (613) | (2,814) | (2,071) | |||
Effect of exchange rate changes on cash, cash equivalents and | 22 | (10) | 5 | (16) | |||
Net increase (decrease) in cash, cash equivalents and | (183) | 335 | (121) | 737 | |||
Cash, cash equivalents and restricted cash at beginning of | 2,555 | 2,674 | 2,493 | 2,272 | |||
Cash, cash equivalents and restricted cash at end of period | $ 2,372 | $ 3,009 | $ 2,372 | $ 3,009 | |||
eBay Inc Unaudited Summary of Consolidated Net Revenues
| |||||||||
Three Months Ended | |||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||
(In millions, except percentages) | |||||||||
Total net revenues (1)(2) | $ 2,576 | $ 2,572 | $ 2,556 | $ 2,562 | $ 2,500 | ||||
Current quarter vs prior year quarter | 3 % | 1 % | 2 % | 2 % | 5 % | ||||
Percent from international | 49 % | 50 % | 49 % | 50 % | 50 % | ||||
(1) Hedge gain/(loss) | $ (11) | $ (10) | $ (10) | $ 11 | $ 2 | ||||
(2) Foreign currency impact | $ (6) | $ (11) | $ 14 | $ 63 | $ 43 | ||||
eBay Inc Unaudited Supplemental Operating Data
| |||||||||
Three Months Ended | |||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||
(In millions, except percentages) | |||||||||
Active Buyers (1) | 133 | 132 | 132 | 132 | 132 | ||||
Current quarter vs prior year quarter | 1 % | 0 % | (1) % | (2) % | (3) % | ||||
Gross Merchandise Volume (2) | |||||||||
$ 8,740 | $ 8,798 | $ 8,974 | $ 8,891 | $ 8,638 | |||||
Current quarter vs prior year quarter | 1 % | 1 % | 0 % | 0 % | (1) % | ||||
International | $ 9,566 | $ 9,620 | $ 9,649 | $ 9,700 | $ 9,353 | ||||
Current quarter vs prior year quarter | 2 % | 1 % | 3 % | 4 % | 4 % | ||||
Total Gross Merchandise Volume | $ 18,306 | $ 18,418 | $ 18,623 | $ 18,591 | $ 17,991 | ||||
Current quarter vs prior year quarter | 2 % | 1 % | 1 % | 2 % | 2 % | ||||
(1) | Active Buyers consist of all buyers who paid for a transaction on our platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account. 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 platforms during the applicable period inclusive of shipping fees and taxes. |
eBay Inc.
Business Outlook
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.
The company's future performance involves risks and uncertainties, and the company's actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company's operating results are set forth under the caption "Forward-Looking Statements" above in this press release. More information about factors that could affect the company's operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting eBay's investor relations website at https://investors.ebayinc.com or the SEC's website at www.sec.gov.
eBay Inc. | |||
Three Months Ending | |||
December 31, 2024 | |||
(In billions, except per share amounts) | GAAP | Non-GAAP (a) | |
Net revenues | |||
Diluted EPS | |||
Twelve Months Ending | |||
December 31, 2024 | |||
(In billions, except per share amounts) | GAAP | Non-GAAP (b) | |
Net revenues | |||
Diluted EPS | |||
(a) Estimated non-GAAP amounts above for the three months ending December 31, 2024 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately | |||
(b) Estimated non-GAAP amounts above for the twelve months ending December 31, 2024 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 | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions, except percentages) | |||||||
GAAP operating income | $ 595 | $ 455 | $ 1,775 | $ 1,531 | |||
Stock-based compensation expense and related employer | 149 | 146 | 457 | 436 | |||
Amortization of acquired intangible assets within cost of net | 10 | 8 | 27 | 26 | |||
Restructuring | (4) | — | (10) | 42 | |||
Non-recurring legal matters | (50) | 50 | (56) | 50 | |||
Other general and administrative expenses | — | (1) | 1 | 1 | |||
Total non-GAAP operating income adjustments | 105 | 203 | 419 | 555 | |||
Non-GAAP operating income | $ 700 | $ 658 | $ 2,194 | $ 2,086 | |||
GAAP operating margin | 23.1 % | 18.2 % | 23.0 % | 20.3 % | |||
Non-GAAP operating margin | 27.2 % | 26.4 % | 28.5 % | 27.7 % | |||
*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 | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions, except per share amounts and percentages) | |||||||
GAAP income from continuing operations before income taxes | $ 797 | $ 1,661 | $ 1,661 | $ 2,676 | |||
GAAP provision for income taxes | (161) | (355) | (360) | (629) | |||
GAAP net income from continuing operations | $ 636 | $ 1,306 | $ 1,301 | $ 2,047 | |||
Non-GAAP adjustments to net income from continuing operations: | |||||||
Non-GAAP operating income from continuing operations | $ 105 | $ 203 | $ 419 | $ 555 | |||
Change in fair value of equity investment in Adevinta | — | (1,367) | 234 | (1,331) | |||
Realized change in fair value of shares sold in Adevinta | — | — | (78) | — | |||
Fair value of Aurelia option | (35) | — | 74 | — | |||
Change in fair market value of warrant | (145) | 109 | (120) | 40 | |||
Change in fair market value of other equity investments | (18) | 46 | 11 | 95 | |||
Income tax effects and adjustments | 45 | 248 | (3) | 294 | |||
Non-GAAP net income from continuing operations | $ 588 | $ 545 | $ 1,838 | $ 1,700 | |||
Diluted net income from continuing operations per share: | |||||||
GAAP | $ 1.29 | $ 2.46 | $ 2.57 | $ 3.81 | |||
Non-GAAP | $ 1.19 | $ 1.03 | $ 3.63 | $ 3.17 | |||
Shares used in GAAP diluted net income per share calculation | 494 | 532 | 507 | 537 | |||
Shares used in non-GAAP diluted net income per share | 494 | 532 | 507 | 537 | |||
GAAP effective tax rate – Continuing operations | 20.2 % | 21.4 % | 21.7 % | 23.5 % | |||
Income tax effects and adjustments to net income from | (3.7) % | (4.9) % | (5.2) % | (7.0) % | |||
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 | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In millions) | |||||||
Net cash provided by operating activities | $ 755 | $ 862 | $ 1,737 | $ 2,308 | |||
Less: Purchases of property and equipment | (109) | (85) | (341) | (330) | |||
Free cash flow | $ 646 | $ 777 | $ 1,396 | $ 1,978 | |||
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SOURCE eBay Inc.
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