[April 18, 2012] |
|
eBay Inc. Reports Strong First Quarter 2012 Results
SAN JOSE, Calif. --(Business Wire)--
Global commerce platform and payments leader eBay Inc. (NASDAQ:EBAY)
today reported that revenue for the first quarter ended March 31, 2012,
increased 29% to $3.3 billion, compared to the same period of 2011. The
company reported first quarter net income on a GAAP basis of $570
million, or $0.44 per diluted share, and non-GAAP net income of $725
million, or $0.55 per diluted share. The year-over-year increase in
first quarter GAAP and non-GAAP earnings per diluted share was driven
primarily by strong top-line growth, partially offset by increased
investment in the shopping experience and the impact of acquisitions.
"The first quarter was a strong start to the year for us with momentum
continuing in our Marketplaces, PayPal and GSI Commerce businesses,"
said eBay Inc. President and CEO John Donahoe. "We believe that
innovation in retail today is technology driven, and consumers are
embracing smarter, easier, better ways to shop. We are enabling commerce
in this new retail environment, supporting and partnering with sellers
of all sizes and giving consumers worldwide the ability to shop anytime,
anywhere, for whatever they want."
The company's PayPal business delivered strong first quarter
performance. PayPal ended the quarter with 109.8 million active
registered accounts, a 12% increase over the first quarter of
2011. PayPal revenue increased 32% year over year, driven primarily by
increased penetration on eBay as well as continued merchant and consumer
adoption. PayPal's net total payment volume (TPV) grew 24% year over
year to $34 billion. PayPal continues to invest in innovation, focusing
on its core platform as well as mobile and point of sale initiatives.
PayPal expects to process $7 billion in mobile TPV in 2012. PayPal
launched an expansion of its payment services to offline merchants in
the first quarter. The Home Depot has launched PayPal payments in all of
its nearly 2,000 U.S. stores, giving shoppers the opportunity to pay
using just their mobile phone number or PayPal payment card and PIN.
Users can switch between paying with their phone or payment card at any
time. The company also launched PayPal Here in the U.S., Australia,
Canada and Hong Kong. With PayPal Here, small businesses can now process
almost any form of payment online or offline, including credit and debit
cards, checks and PayPal using only a smartphone.
The company's Marketplaces business also delivered strong first quarter
performance. Gross merchandise volume (GMV) excluding vehicles increased
12% year over year to $16 billion. Sold items increased 17% compared to
the first quarter of 2011, reflecting the continued impact of
improvements to eBay's core technology that are designed to make it
easier and faster for shoppers to browse and buy. U.S. GMV excluding
vehicles increased 13% year over year as sold items growth, mobile
engagement and momentum in fashion and parts & accessories were key
drivers of growth in the first quarter. Fixed price GMV, which
represented 64% of total GMV in the first quarter, grew 18% globally
year over year, a four-point acceleration compared to the fourth quarter
of 2011. International GMV excluding vehicles increased 11% year over
year to $10 billion, reflecting improved performance in Korea and solid
growth in Europe. Downloads of eBay's suite of mobile apps surpassed 12
million in the first quarter and 78 million globally since the launch of
mobile in the third quarter of 2008. eBay expects to generate $8 billion
in mobile volume transacted in 2012.
The company's GSI business, which was acquired in the second quarter of
2011, contributed $237 million in revenue for the first quarter. GSI
generated $715 million in global ecommerce (GeC) merchandise sales
during the quarter. Same store sales grew 26% year over year, reflecting
strong ecommerce sales from retail clients.
First Quarter 2012 Financial Highlights (presented in millions,
except per share data and percentages)
|
|
First Quarter
|
|
|
|
|
|
|
2012
|
|
2011
|
|
Change
|
GAAP
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$3,277
|
|
$2,546
|
|
$731
|
|
29%
|
Net income
|
|
$570
|
|
$476
|
|
$94
|
|
20%
|
Earnings per diluted share
|
|
$0.44
|
|
$0.36
|
|
$0.08
|
|
21%
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Net income
|
|
$725
|
|
$619
|
|
$106
|
|
17%
|
Earnings per diluted share
|
|
$0.55
|
|
$0.47
|
|
$0.08
|
|
18%
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
|
|
2012
|
|
2011
|
|
Change
|
Business Units
|
|
|
|
|
|
|
|
|
Payments
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$1,309
|
|
$993
|
|
$316
|
|
32%
|
Net total payment volume
|
|
$33,857
|
|
$27,362
|
|
$6,495
|
|
24%
|
Merchant Services
|
|
$22,433
|
|
$17,567
|
|
$4,866
|
|
28%
|
On eBay
|
|
$11,424
|
|
$9,795
|
|
$1,629
|
|
17%
|
Marketplaces
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$1,728
|
|
$1,553
|
|
$175
|
|
11%
|
Gross merchandise volume (excl. vehicles)
|
|
$16,206
|
|
$14,496
|
|
$1,710
|
|
12%
|
U.S.
|
|
$6,366
|
|
$5,631
|
|
$735
|
|
13%
|
International
|
|
$9,840
|
|
$8,865
|
|
$975
|
|
11%
|
GSI
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$237
|
|
$-
|
|
$237
|
|
N/A
|
GeC Merchandise Sales
|
|
$715
|
|
$-
|
|
$715
|
|
N/A
|
Other Selected Financial Results
-
Operating margin - GAAP operating margin decreased to 19.9% for the
first quarter of 2012, compared to 22.2% for the same period last
year. Non-GAAP operating margin decreased to 26.9% for the quarter,
compared to 29.4% for the same period last year. The decrease in GAAP
and non-GAAP operating margin was due primarily to the impact of
acquisitions and business mix.
-
Taxes - The GAAP effective tax rate for the first quarter of 2012 was
17%, compared to 16% for the first quarter of 2011. For the first
quarter of 2012 and 2011, the non-GAAP effective tax rate was 20% and
19%, respectively.
-
Cash flow - The company generated $531 million of operating cash flow
and $289 million of free cash flow during the first quarter, which
were negatively impacted by a one-time tax payment of approximately
$300 million related to the gain on the sale of our remaining equity
interest in Skype in fourth quarter 2011.
-
Stock repurchase program - The company repurchased approximately $240
million of its common stock in the first quarter.
-
Cash and cash equivalents and non-equity investments - The company's
cash and cash equivalents and non-equity investments portfolio totaled
$7.8 billion at March 31, 2012 up from $7.5 billion at December 31,
2011.
Business Outlook
-
Second quarter 2012 - eBay expects net revenues in the range of $3,250
- $3,350 million with GAAP earnings per diluted share in the range of
$0.49 - $0.51 and non-GAAP earnings per diluted share in the range of
$0.53 - $0.55.
-
Full year 2012 - eBay now expects net revenues in the range of $13,800
- $14,100 million with GAAP earnings per diluted share in the range of
$1.91 - $1.96 and non-GAAP earnings per diluted share in the range of
$2.30 - $2.35.
Quarterly Conference Call
eBay will host a conference call to discuss first quarter 2012 results
at 2:00 p.m. Pacific Time today. 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 http://investor.ebayinc.com.
In addition, an archive of the webcast will be accessible for 90 days
through the same link.
About eBay Inc.
Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) is a global
commerce platform and payments leader connecting millions of buyers and
sellers. We do so through eBay, the world's largest online marketplace,
which allows users to buy and sell in nearly every country on earth;
through PayPal, which enables individuals and businesses to securely,
easily and quickly send and receive digital payments; and through GSI,
which facilitates ecommerce, multichannel retailing and digital
marketing for global enterprises. X.commerce brings together the
technology assets and developer communities of eBay, PayPal and Magento,
an ecommerce platform, to support eBay Inc.'s mission of enabling
commerce. We also reach millions through specialized marketplaces such
as StubHub, the world's largest ticket marketplace, and eBay classifieds
sites, which together have a presence in more than 1,000 cities around
the world. For more information about the company and its global
portfolio of online brands, visit www.ebayinc.com.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as
"non-GAAP financial measures" by the Securities and Exchange Commission,
or SEC: non-GAAP net income, non-GAAP earnings per diluted share,
non-GAAP operating margin, non-GAAP effective tax rate and free cash
flow. 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 or as a
substitute for the financial information prepared and presented in
accordance with generally accepted accounting principles. For a
reconciliation of these non-GAAP financial measures 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," "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.
Forward-Looking Statements
This press release contains forward-looking statements relating to,
among other things, the future performance of eBay 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
expected financial results for the second quarter and full year 2012,
and the future growth in the Payments, Marketplaces and GSI businesses,
mobile commerce and mobile payments. The company's actual results could
differ materially from those predicted 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: changes in political, business and economic conditions,
including any European or general economic downturn or crisis and any
conditions that affect ecommerce growth; fluctuations in foreign
currency exchange rates; the company's ability to profitably integrate,
manage and grow businesses that have been acquired recently or may be
acquired in the future, including GSI; the company's need to
increasingly achieve growth from its existing users, particularly in its
more established markets; the company's ability to deal with the
increasingly competitive ecommerce environment, including competition
for its sellers from other trading sites and other means of selling, and
competition for its buyers from other merchants, online and offline; the
company's need to manage an increasingly large enterprise with a broad
range of businesses of varying degrees of maturity and in many different
geographies; the effect of management changes and business initiatives;
the company's need and ability to manage other regulatory, tax and
litigation risks as its services are offered in more jurisdictions and
applicable laws become more restrictive; any changes the company may
make to its product offerings; the competitive, regulatory, credit card
association-related and other risks specific to PayPal and Bill Me
Later, especially as PayPal continues to expand geographically and
introduce new products and as new laws and regulations related to
financial services companies come into effect; the company's ability to
timely upgrade and develop its systems, infrastructure and customer
service capabilities, including GSI's v.11 initiative, at reasonable
cost; and the company's ability to maintain site stability and
performance on all of its sites while adding new products and features
in a timely fashion. 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 http://investor.ebayinc.com
or the SEC's website at www.sec.gov.
Undue reliance should not be placed on the forward-looking statements in
this release, which are based on information available to the company on
the date hereof. eBay assumes no obligation to update such statements.
|
eBay Inc.
|
Unaudited Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
|
March 31, 2012
|
|
December 31, 2011
|
|
|
(In millions)
|
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
4,164
|
|
|
$
|
4,691
|
Short-term investments
|
|
1,707
|
|
|
1,238
|
Accounts receivable, net
|
|
633
|
|
|
682
|
Loans and interest receivable, net
|
|
1,517
|
|
|
1,501
|
Funds receivable and customer accounts
|
|
4,340
|
|
|
3,968
|
Other current assets
|
|
728
|
|
|
581
|
Total current assets
|
|
13,089
|
|
|
12,661
|
Long-term investments
|
|
2,861
|
|
|
2,453
|
Property and equipment, net
|
|
2,109
|
|
|
1,986
|
Goodwill
|
|
8,440
|
|
|
8,365
|
Intangible assets, net
|
|
1,316
|
|
|
1,406
|
Other assets
|
|
392
|
|
|
449
|
Total assets
|
|
$
|
28,207
|
|
|
$
|
27,320
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Short-term debt
|
|
$
|
564
|
|
|
$
|
565
|
Accounts payable
|
|
325
|
|
|
282
|
Funds payable and amounts due to customers
|
|
4,340
|
|
|
3,968
|
Accrued expenses and other current liabilities
|
|
1,530
|
|
|
1,511
|
Deferred revenue
|
|
135
|
|
|
110
|
Income taxes payable
|
|
71
|
|
|
298
|
Total current liabilities
|
|
6,965
|
|
|
6,734
|
Deferred and other tax liabilities, net
|
|
946
|
|
|
1,073
|
Long-term debt
|
|
1,521
|
|
|
1,525
|
Other liabilities
|
|
66
|
|
|
58
|
Total liabilities
|
|
9,498
|
|
|
9,390
|
|
|
|
|
|
Total stockholders' equity
|
|
18,709
|
|
|
17,930
|
Total liabilities and stockholders' equity
|
|
$
|
28,207
|
|
|
$
|
27,320
|
|
eBay Inc.
|
Unaudited Condensed Consolidated Statement of Income
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2012
|
|
2011
|
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
Net revenues
|
|
$
|
3,277
|
|
|
$
|
2,546
|
|
Cost of net revenues (1)
|
|
983
|
|
|
729
|
|
Gross profit
|
|
2,294
|
|
|
1,817
|
|
Operating expenses:
|
|
|
|
|
Sales and marketing (1)
|
|
677
|
|
|
533
|
|
Product development (1)
|
|
374
|
|
|
275
|
|
General and administrative (1)
|
|
372
|
|
|
293
|
|
Provision for transaction and loan losses
|
|
134
|
|
|
107
|
|
Amortization of acquired intangible assets
|
|
84
|
|
|
44
|
|
Total operating expenses
|
|
1,641
|
|
|
1,252
|
|
Income from operations
|
|
653
|
|
|
565
|
|
Interest and other, net
|
|
31
|
|
|
3
|
|
Income before income taxes
|
|
684
|
|
|
568
|
|
Provision for income taxes
|
|
(114
|
)
|
|
(92
|
)
|
Net income
|
|
$
|
570
|
|
|
$
|
476
|
|
Net income per share:
|
|
|
|
|
Basic
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
Diluted
|
|
$
|
0.44
|
|
|
$
|
0.36
|
|
Weighted average shares:
|
|
|
|
|
Basic
|
|
1,288
|
|
|
1,297
|
|
Diluted
|
|
1,308
|
|
|
1,320
|
|
|
|
|
|
|
(1) Includes stock-based compensation as follows:
|
|
|
|
|
Cost of net revenues
|
|
$
|
14
|
|
|
$
|
14
|
|
Sales and marketing
|
|
30
|
|
|
35
|
|
Product development
|
|
30
|
|
|
31
|
|
General and administrative
|
|
37
|
|
|
39
|
|
|
|
$
|
111
|
|
|
$
|
119
|
|
|
|
|
eBay Inc.
|
Unaudited Condensed Consolidated Statement of Cash Flows
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2012
|
|
2011
|
|
|
(In millions)
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
570
|
|
|
$
|
476
|
|
Adjustments:
|
|
|
|
|
Provision for transaction and loan losses
|
|
134
|
|
|
107
|
|
Depreciation and amortization
|
|
281
|
|
|
193
|
|
Stock-based compensation
|
|
111
|
|
|
119
|
|
Changes in assets and liabilities, net of acquisition effects
|
|
(565
|
)
|
|
(195
|
)
|
Net cash provided by operating activities
|
|
531
|
|
|
700
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property and equipment, net
|
|
(242
|
)
|
|
(149
|
)
|
Changes in principal loans receivable, net
|
|
(35
|
)
|
|
(3
|
)
|
Purchases of investments
|
|
(1,016
|
)
|
|
(485
|
)
|
Maturities and sales of investments
|
|
408
|
|
|
230
|
|
Acquisitions, net of cash acquired
|
|
(3
|
)
|
|
(191
|
)
|
Other
|
|
(5
|
)
|
|
1
|
|
Net cash used in investing activities
|
|
(893
|
)
|
|
(597
|
)
|
Cash flows from financing activities:
|
|
|
|
|
Proceeds from issuance of common stock
|
|
85
|
|
|
73
|
|
Repurchases of common stock
|
|
(240
|
)
|
|
(357
|
)
|
Excess tax benefits from stock-based compensation
|
|
54
|
|
|
54
|
|
Tax withholdings related to net share settlements of restricted
stock units and awards
|
|
(118
|
)
|
|
(109
|
)
|
Funds receivable and customer accounts
|
|
(373
|
)
|
|
(195
|
)
|
Funds payable and amounts due to customers
|
|
373
|
|
|
195
|
|
Net cash used in financing activities
|
|
(219
|
)
|
|
(339
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
54
|
|
|
123
|
|
Net (decrease) increase in cash and cash equivalents
|
|
(527
|
)
|
|
(113
|
)
|
Cash and cash equivalents at beginning of period
|
|
4,691
|
|
|
5,577
|
|
Cash and cash equivalents at end of period
|
|
$
|
4,164
|
|
|
$
|
5,464
|
|
|
|
|
|
|
|
|
|
|
|
|
eBay Inc.
|
Unaudited Summary of Consolidated Net Revenues
|
Net Revenues by Type
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
Net transaction revenues
|
|
(In millions, except percentages)
|
Marketplaces
|
|
$
|
1,425
|
|
|
$
|
1,443
|
|
|
$
|
1,354
|
|
|
$
|
1,350
|
|
|
$
|
1,284
|
|
Current quarter vs prior quarter
|
|
(1
|
)%
|
|
7
|
%
|
|
-
|
%
|
|
5
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
11
|
%
|
|
15
|
%
|
|
14
|
%
|
|
14
|
%
|
|
9
|
%
|
Percent of Marketplaces revenue from international
|
|
55
|
%
|
|
57
|
%
|
|
56
|
%
|
|
56
|
%
|
|
56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Payments
|
|
1,216
|
|
|
1,157
|
|
|
1,033
|
|
|
991
|
|
|
943
|
|
Current quarter vs prior quarter
|
|
5
|
%
|
|
12
|
%
|
|
4
|
%
|
|
5
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
29
|
%
|
|
25
|
%
|
|
29
|
%
|
|
29
|
%
|
|
23
|
%
|
Percent of Payments revenue from international
|
|
54
|
%
|
|
55
|
%
|
|
53
|
%
|
|
52
|
%
|
|
50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
GSI (1)
|
|
182
|
|
|
295
|
|
|
148
|
|
|
16
|
|
|
N/A
|
Current quarter vs prior quarter
|
|
(38
|
)%
|
|
99
|
%
|
|
N/A
|
|
N/A
|
|
N/A
|
Percent of GSI revenue from international
|
|
4
|
%
|
|
3
|
%
|
|
3
|
%
|
|
5
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
Total net transaction revenues
|
|
2,823
|
|
|
2,895
|
|
|
2,535
|
|
|
2,357
|
|
|
2,227
|
|
Current quarter vs prior quarter
|
|
(2
|
)%
|
|
14
|
%
|
|
8
|
%
|
|
6
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
27
|
%
|
|
32
|
%
|
|
28
|
%
|
|
21
|
%
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Marketing services and other revenues
|
|
|
|
|
|
|
|
|
|
|
Marketplaces
|
|
303
|
|
|
329
|
|
|
299
|
|
|
314
|
|
|
269
|
|
Current quarter vs prior quarter
|
|
(8
|
)%
|
|
10
|
%
|
|
(5
|
)%
|
|
17
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
13
|
%
|
|
24
|
%
|
|
32
|
%
|
|
45
|
%
|
|
26
|
%
|
Percent of Marketplaces revenue from international
|
|
75
|
%
|
|
72
|
%
|
|
74
|
%
|
|
74
|
%
|
|
74
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Payments
|
|
93
|
|
|
83
|
|
|
75
|
|
|
82
|
|
|
50
|
|
Current quarter vs prior quarter
|
|
12
|
%
|
|
11
|
%
|
|
(9
|
)%
|
|
65
|
%
|
|
11
|
%
|
Current quarter vs prior year quarter
|
|
86
|
%
|
|
84
|
%
|
|
86
|
%
|
|
77
|
%
|
|
17
|
%
|
Percent of Payments revenue from international
|
|
15
|
%
|
|
17
|
%
|
|
9
|
%
|
|
6
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
GSI (1)
|
|
55
|
|
|
68
|
|
|
54
|
|
|
7
|
|
|
N/A
|
Current quarter vs prior quarter
|
|
(19
|
)%
|
|
26
|
%
|
|
N/A
|
|
N/A
|
|
N/A
|
Percent of GSI revenue from international
|
|
1
|
%
|
|
-
|
%
|
|
-
|
%
|
|
-
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and other
|
|
6
|
|
|
5
|
|
|
3
|
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
Total marketing services and other revenues
|
|
457
|
|
|
485
|
|
|
431
|
|
|
403
|
|
|
319
|
|
Current quarter vs prior quarter
|
|
(6
|
)%
|
|
13
|
%
|
|
7
|
%
|
|
27
|
%
|
|
3
|
%
|
Current quarter vs prior year quarter
|
|
43
|
%
|
|
56
|
%
|
|
62
|
%
|
|
54
|
%
|
|
24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Elimination of inter-segment net revenue and other (2)
|
|
(3
|
)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
Total net revenues
|
|
$
|
3,277
|
|
|
$
|
3,380
|
|
|
$
|
2,966
|
|
|
$
|
2,760
|
|
|
$
|
2,546
|
|
Current quarter vs prior quarter
|
|
(3
|
)%
|
|
14
|
%
|
|
7
|
%
|
|
8
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
29
|
%
|
|
35
|
%
|
|
32
|
%
|
|
25
|
%
|
|
16
|
%
|
(1)
|
Net revenue attributable to the GSI segment for the three months
ended June 30, 2011 reflects net revenues for the period from June
17, 2011 (the date that the acquisition was completed) to June 30,
2011.
|
(2)
|
Represents revenue generated between our reportable segments.
|
|
|
|
Net Revenues by Geography (1)
|
|
Three Months Ended
|
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
(In millions, except percentages)
|
U.S. net revenues
|
|
$
|
1,581
|
|
|
$
|
1,665
|
|
|
$
|
1,428
|
|
|
$
|
1,249
|
|
|
$
|
1,141
|
|
Current quarter vs prior quarter
|
|
(5
|
)%
|
|
17
|
%
|
|
14
|
%
|
|
9
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
39
|
%
|
|
49
|
%
|
|
35
|
%
|
|
21
|
%
|
|
14
|
%
|
Percent of total
|
|
48
|
%
|
|
49
|
%
|
|
48
|
%
|
|
45
|
%
|
|
45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
International net revenues
|
|
1,696
|
|
|
1,715
|
|
|
1,538
|
|
|
1,511
|
|
|
1,405
|
|
Current quarter vs prior quarter
|
|
(1
|
)%
|
|
12
|
%
|
|
2
|
%
|
|
8
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
21
|
%
|
|
25
|
%
|
|
29
|
%
|
|
28
|
%
|
|
18
|
%
|
Percent of total
|
|
52
|
%
|
|
51
|
%
|
|
52
|
%
|
|
55
|
%
|
|
55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total net revenues
|
|
$
|
3,277
|
|
|
$
|
3,380
|
|
|
$
|
2,966
|
|
|
$
|
2,760
|
|
|
$
|
2,546
|
|
Current quarter vs prior quarter
|
|
(3
|
)%
|
|
14
|
%
|
|
7
|
%
|
|
8
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
29
|
%
|
|
35
|
%
|
|
32
|
%
|
|
25
|
%
|
|
16
|
%
|
(1)
|
Revenues are attributed to U.S. and international geographies
primarily based upon the country in which the seller, payment
recipient, customer, website that displays advertising, or other
service provider, as the case may be, is located.
|
|
eBay Inc.
|
Unaudited Payments Supplemental Operating Data
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
(In millions, except percentages)
|
Active registered accounts (1)
|
|
109.8
|
|
|
106.3
|
|
|
103.0
|
|
|
100.3
|
|
|
97.7
|
|
Current quarter vs prior quarter
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
Current quarter vs prior year quarter
|
|
12
|
%
|
|
13
|
%
|
|
14
|
%
|
|
15
|
%
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net number of payments (2)
|
|
555.7
|
|
|
548.1
|
|
|
459.2
|
|
|
432.0
|
|
|
424.6
|
|
Current quarter vs prior quarter
|
|
1
|
%
|
|
19
|
%
|
|
6
|
%
|
|
2
|
%
|
|
1
|
%
|
Current quarter vs prior year quarter
|
|
31
|
%
|
|
30
|
%
|
|
29
|
%
|
|
29
|
%
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net total payment volume (3)
|
|
$
|
33,857
|
|
|
$
|
33,372
|
|
|
$
|
29,282
|
|
|
$
|
28,742
|
|
|
$
|
27,362
|
|
Current quarter vs prior quarter
|
|
1
|
%
|
|
14
|
%
|
|
2
|
%
|
|
5
|
%
|
|
2
|
%
|
Current quarter vs prior year quarter
|
|
24
|
%
|
|
24
|
%
|
|
31
|
%
|
|
34
|
%
|
|
28
|
%
|
Merchant Services net total payment volume as % of net total
payment volume
|
|
66
|
%
|
|
66
|
%
|
|
66
|
%
|
|
66
|
%
|
|
64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Transaction rates
|
|
|
|
|
|
|
|
|
|
|
Take rate
|
|
3.87
|
%
|
|
3.71
|
%
|
|
3.78
|
%
|
|
3.73
|
%
|
|
3.63
|
%
|
Transaction expense
|
|
1.07
|
%
|
|
1.04
|
%
|
|
1.14
|
%
|
|
1.11
|
%
|
|
1.11
|
%
|
Loss rate
|
|
0.26
|
%
|
|
0.27
|
%
|
|
0.31
|
%
|
|
0.25
|
%
|
|
0.21
|
%
|
Transaction margin (4)
|
|
65.6
|
%
|
|
64.8
|
%
|
|
61.5
|
%
|
|
63.6
|
%
|
|
63.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio rates
|
|
|
|
|
|
|
|
|
|
|
Risk adjusted margin (5)
|
|
16.8
|
%
|
|
16.9
|
%
|
|
18.0
|
%
|
|
16.5
|
%
|
|
14.7
|
%
|
Net charge-off rate (6)
|
|
4.5
|
%
|
|
4.4
|
%
|
|
4.3
|
%
|
|
4.4
|
%
|
|
4.9
|
%
|
90-day delinquency rate (7)
|
|
2.4
|
%
|
|
2.4
|
%
|
|
2.6
|
%
|
|
2.2
|
%
|
|
2.2
|
%
|
(1)
|
All registered accounts that successfully sent or received at least
one payment or payment reversal through the PayPal system or Bill Me
Later accounts that are currently able to transact and that received
a statement within the last 12 months.
|
(2)
|
Number of payments, net of payment reversals, successfully completed
through our Payments networks and Zong, excluding PayPal's payments
gateway business, and on Bill Me Later accounts during the quarter.
|
(3)
|
Total dollar volume of payments, net of payment reversals,
successfully completed through our Payments networks and Zong,
excluding PayPal's payment gateway business, and on Bill Me Later
accounts during the period.
|
(4)
|
Transaction Margin calculation has been adjusted to include total
revenues (including revenue from credit) less transaction expense
(including credit cost of funds) less transaction loss (including
credit loan losses), divided by global take rate (based on global
total revenues divided by total TPV).
|
(5)
|
The risk adjusted margin represents the annualized ratio of Bill Me
Later revenue, excluding contra-revenue incentives to customers or
merchants, less cost of funds, and less net credit and fraud losses
relative to average loans receivable for the quarter.
|
(6)
|
Net charge-off rate represents the annualized ratio of Bill Me Later
net credit losses relative to average loans receivable for the
quarter.
|
(7)
|
90-day delinquency rate is the ratio of Bill Me Later end of period
account balances that have missed three or more consecutive payments
relative to total ending loan receivables.
|
|
|
|
eBay Inc.
|
Unaudited eBay Marketplaces Supplemental Operating Data
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
(In millions, except percentages)
|
Active Users (1)
|
|
102.4
|
|
|
100.4
|
|
|
98.7
|
|
|
97.2
|
|
|
95.9
|
|
Current quarter vs prior quarter
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
Current quarter vs prior year quarter
|
|
7
|
%
|
|
6
|
%
|
|
6
|
%
|
|
6
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross Merchandise Volume (excluding vehicles) (2)
|
|
$
|
16,206
|
|
|
$
|
16,490
|
|
|
$
|
14,666
|
|
|
$
|
14,680
|
|
|
$
|
14,496
|
|
Current quarter vs prior quarter
|
|
(2
|
)%
|
|
12
|
%
|
|
-
|
%
|
|
1
|
%
|
|
(4
|
)%
|
Current quarter vs prior year quarter
|
|
12
|
%
|
|
10
|
%
|
|
16
|
%
|
|
17
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Vehicles Gross Merchandise Volume (3)
|
|
$
|
1,871
|
|
|
$
|
1,864
|
|
|
$
|
2,149
|
|
|
$
|
2,238
|
|
|
$
|
2,050
|
|
Current quarter vs prior quarter
|
|
-
|
%
|
|
(13
|
)%
|
|
(4
|
)%
|
|
9
|
%
|
|
7
|
%
|
Current quarter vs prior year quarter
|
|
(9
|
)%
|
|
(3
|
)%
|
|
-
|
%
|
|
2
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Price Trading (4) as % of total gross merchandise volume
|
|
64
|
%
|
|
64
|
%
|
|
63
|
%
|
|
62
|
%
|
|
61
|
%
|
eBay's classifieds websites and Shopping.com are not included in these
metrics.
(1)
|
All users, excluding users of Half.com, StubHub, and our Korean
subsidiaries (Gmarket and eBay Auction Co.), who bid on, bought,
listed or sold an item within the previous 12-month period. Users
may register more than once, and as a result, may have more than one
account.
|
(2)
|
Total value of all successfully closed items between users on eBay
Marketplaces trading platforms during the quarter, regardless of
whether the buyer and seller actually consummated the transaction,
excluding vehicles gross merchandise volume.
|
(3)
|
Total value of all successfully closed vehicle transactions between
users on eBay Marketplaces trading platforms during the quarter,
regardless of whether the buyer and seller actually consummated the
transaction.
|
(4)
|
Primarily, total gross merchandise volume related to eBay's "Buy It
Now" feature on eBay Marketplaces trading platforms relative to
total gross merchandise volume during the quarter.
|
|
eBay Inc.
|
Unaudited GSI Supplemental Operating Data
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
2011
|
|
2011 (1)
|
|
2011
|
|
|
(In millions, except percentages)
|
GeC Merchandise Sales (2)
|
|
$
|
715
|
|
|
$
|
1,362
|
|
|
$
|
601
|
|
|
$
|
76
|
|
|
N/A
|
(1)
|
Reflects the period from June 17, 2011 (the date that the
acquisition was completed) to June 30, 2011.
|
(2)
|
Represents the retail value of all sales transactions, inclusive
of freight charges and net of allowance for returns and discounts,
which flow through the GSI ecommerce services platform, whether we
record the full amount of such transaction as a product sale or a
percentage of such transaction as a service fee. As of March 31,
2012, the number for the three months ended September 30, 2011 has
been adjusted.
|
|
|
eBay Inc. Business Outlook (In Millions,
Except Per Share Amounts)
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 eBay's future performance is difficult to predict. Such guidance
is based on information available on the date of this press release, and
eBay assumes no obligation to update it.
eBay'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 eBay'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 the company's
investor relations website at http://investor.ebayinc.com
or the SEC's website at www.sec.gov.
|
|
|
|
|
Three Months Ended
|
|
|
June 30, 2012
|
(In millions, except per share amounts)
|
|
GAAP
|
|
Non-GAAP (a)
|
Net Revenue
|
|
$3,250 - $3,350
|
|
$3,250 - $3,350
|
Diluted EPS
|
|
$0.49 - $0.51
|
|
$0.53 - $0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
December 31, 2012
|
(In millions, except per share amounts)
|
|
GAAP
|
|
Non-GAAP (b)
|
Net Revenue
|
|
$13,800 - $14,100
|
|
$13,800 - $14,100
|
Diluted EPS
|
|
$1.91 - $1.96
|
|
$2.30 - $2.35
|
|
|
|
|
|
(a)
|
Estimated non-GAAP amounts above for the three months ending June
30, 2012, reflect adjustments that exclude the estimated
amortization of acquired intangible assets of approximately
$100-$110 million, estimated stock-based compensation expense and
employer payroll taxes on stock-based compensation expense of
approximately $125-$145 million, the gain on a divestiture of
approximately $115-$125 million, and the accretion of a note
receivable of approximately $7 million as well as the related tax
impact.
|
|
|
(b)
|
Estimated non-GAAP amounts above for the 12 months ending December
31, 2012, reflect adjustments that exclude the estimated
amortization of acquired intangible assets of approximately
$400-$420 million, estimated stock-based compensation expense and
employer payroll taxes on stock-based compensation expense of
approximately $520-$550 million, the gain on a divestiture of
approximately $115-$125 million, and the accretion of a note
receivable of approximately $25-$30 million as well as the related
tax impact.
|
|
|
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, eBay 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, and free cash flow.
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 eBay's results of operations
as determined in accordance with GAAP. These measures should only be
used to evaluate eBay'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 can be found in the tables included in
this press release.
These non-GAAP measures are provided to enhance investors' overall
understanding of the company's current financial performance and the
company's 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 eBay 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,
eBay'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, significant gains or losses from the
disposal/acquisition of a business, restructuring-related charges and
the income taxes associated with the foregoing. In addition to the
corresponding GAAP measures, eBay's management also uses the foregoing
non-GAAP measures in reviewing the financial results of eBay.
eBay 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. This expense consists of
expenses for stock options, restricted stock and employee stock
purchases. eBay excludes stock-based compensation expenses from
its non-GAAP measures primarily because they are non-cash expenses
that management does not believe are reflective of ongoing
operating results. eBay also excludes its proportionate share of
Skype's stock-based compensation expense.
|
|
Employer payroll taxes on stock-based compensation. This
amount is dependent on eBay's stock price and the timing and size
of exercises by employees of their stock options and the vesting
of their restricted stock, over which management has limited to no
control, and as such management does not believe it correlates to
eBay's operation of the business.
|
|
Amortization or impairment of acquired intangible assets,
impairment of goodwill and significant gains or losses and
transaction expenses from the acquisition or disposal of a
business. eBay 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. eBay also excludes its proportionate share
of Skype's amortization of acquired intangibles expense. eBay also
settled a legal exposure in conjunction with the acquisition of a
business and excludes this settlement payment. In addition, eBay's
results are also impacted by hedge transactions related to unique
movements of cash from significant business acquisitions or
dispositions. eBay excludes the impact of the accretion of a note
receivable associated with the disposal of certain businesses.
eBay excludes these items because management does not believe they
correlate to the ongoing operating results of eBay's business.
|
|
Restructuring. These charges consist of expenses for
employee severance and other exit and disposal costs. eBay
excludes restructuring charges primarily because management does
not believe they are reflective of ongoing operating results.
|
|
Income taxes associated with certain non-GAAP entries. This
amount is used to present stock-based compensation and the other
amounts described above on an after-tax basis consistent with the
presentation of non-GAAP net income.
|
In addition to the non-GAAP measures discussed above, eBay also uses
free cash flow. Free cash flow represents operating cash flows less net
purchases of property and equipment. eBay 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 eBay's business, make strategic
acquisitions, and repurchase stock. 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,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
|
(In millions, except percentages)
|
GAAP operating income
|
|
$
|
653
|
|
|
$
|
565
|
|
Stock-based compensation expense
|
|
111
|
|
|
119
|
|
Employer payroll taxes on stock-based compensation
|
|
14
|
|
|
13
|
|
Amortization of acquired intangible assets within cost of net
revenues
|
|
21
|
|
|
8
|
|
Amortization of acquired intangible assets within operating expenses
|
|
84
|
|
|
44
|
|
Non-GAAP operating income
|
|
$
|
883
|
|
|
$
|
749
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating margin
|
|
26.9
|
%
|
|
29.4
|
%
|
|
|
|
Reconciliation of GAAP Net Income to Non-GAAP Net Income
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
|
(In millions, except per share amounts)
|
GAAP net income
|
|
$
|
570
|
|
|
$
|
476
|
|
Stock-based compensation expense
|
|
111
|
|
|
119
|
|
Employer payroll taxes on stock-based compensation
|
|
14
|
|
|
13
|
|
Amortization of acquired intangible assets within cost of net
revenues
|
|
21
|
|
|
8
|
|
Amortization of acquired intangible assets within operating expenses
|
|
84
|
|
|
44
|
|
Amortization of intangibles and stock-based compensation for Skype
|
|
-
|
|
|
9
|
|
Accretion of note receivable
|
|
(9
|
)
|
|
-
|
|
Loss on divested business
|
|
3
|
|
|
-
|
|
Income taxes associated with certain non-GAAP entries
|
|
(69
|
)
|
|
(50
|
)
|
Non-GAAP net income
|
|
$
|
725
|
|
|
$
|
619
|
|
|
|
|
|
|
Diluted net income per share:
|
|
|
|
|
GAAP
|
|
$
|
0.44
|
|
|
$
|
0.36
|
|
Non-GAAP
|
|
$
|
0.55
|
|
|
$
|
0.47
|
|
Shares used in GAAP and non-GAAP diluted net income per-share
calculation
|
|
1,308
|
|
|
1,320
|
|
|
|
|
Reconciliation of GAAP Effective Tax Rate to Non-GAAP Effective
Tax Rate
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
|
(In millions, except percentages)
|
GAAP provision for income taxes (a)
|
|
$
|
114
|
|
|
$
|
92
|
|
Income taxes associated with certain non-GAAP entries
|
|
69
|
|
|
50
|
|
Non-GAAP provision for income taxes (b)
|
|
$
|
183
|
|
|
$
|
142
|
|
|
|
|
|
|
GAAP income before income taxes (c)
|
|
$
|
684
|
|
|
$
|
568
|
|
Stock-based compensation expense
|
|
111
|
|
|
119
|
|
Employer payroll taxes on stock-based compensation
|
|
14
|
|
|
13
|
|
Amortization of acquired intangible assets within cost of net
revenues
|
|
21
|
|
|
8
|
|
Amortization of acquired intangible assets within operating expenses
|
|
84
|
|
|
44
|
|
Amortization of intangibles and stock-based compensation for Skype
|
|
-
|
|
|
9
|
|
Accretion of note receivable
|
|
(9
|
)
|
|
-
|
|
Loss on divested business
|
|
3
|
|
|
-
|
|
Non-GAAP income before income taxes (d)
|
|
$
|
908
|
|
|
$
|
761
|
|
|
|
|
|
|
GAAP effective tax rate (a/c)
|
|
17
|
%
|
|
16
|
%
|
|
|
|
|
|
Non-GAAP effective tax rate (b/d)
|
|
20
|
%
|
|
19
|
%
|
|
|
|
Reconciliation of Operating Cash Flow to Free Cash Flow
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2012
|
|
2011
|
|
|
(In millions)
|
Net cash provided by operating activities
|
|
$
|
531
|
|
|
$
|
700
|
|
Less: Purchases of property and equipment, net
|
|
(242
|
)
|
|
(149
|
)
|
Free cash flow
|
|
$
|
289
|
|
|
$
|
551
|
|
[ Back To TMCnet.com's Homepage ]
|