SAN JOSE, Calif., July 20, 2017 /PRNewswire/ -- eBay Inc.
(NASDAQ: EBAY), a global commerce leader, delivered gross
merchandise volume (GMV) for the quarter ended June 30, 2017
of $21.5 billion, increasing 3% on an
as-reported basis and 5% on a foreign exchange (FX) neutral basis.
Revenue for the quarter was $2.3
billion, up 4% on an as-reported basis and 7% on an
FX-Neutral basis.
During the quarter, eBay delivered GAAP net income from
continuing operations of $27 million,
or $0.02 per diluted share, which was
negatively impacted by a non-cash income tax charge of $311 million related to the ongoing realignment
of its legal structure. Non-GAAP net income from continuing
operations was $493 million, or
$0.45 per diluted share. During the
quarter, the company generated $699
million of operating cash flow and $517 million of free cash flow from continuing
operations. The company also repurchased $507 million of its common stock in the
quarter.
"In Q2, eBay delivered strong top and bottom line financial
results, led by Marketplace acceleration," said Devin Wenig, President and CEO of eBay Inc.
"During the past two years, we have made significant progress
to modernize eBay and drive growth by improving the customer
experience, creating a product catalog that covers more than half
of our inventory, and sharpening the eBay brand. We are on
track and focused on creating an even stronger eBay for years to
come."
Underlying total eBay Inc. performance, the Marketplace
platforms delivered $20.5 billion of
GMV and $1.9 billion of revenue.
Marketplace GMV was up 3% on an as-reported basis and 6% on an
FX-Neutral basis, driven by the continued expansion of new user
experiences and marketing efforts, which led to revenue growth of
4% on an as-reported basis and 7% on an FX-Neutral basis. StubHub
drove GMV of $1.0 billion, down 5%,
and revenue of $236 million, up 5%,
driven by a softer U.S. events landscape compared to last year,
partially offset by strong international growth. Classifieds
accelerated growth in the quarter, delivering revenue of
$219 million, up 6% on an as-reported
basis and 11% on an FX-Neutral basis, primarily driven by healthy
traffic growth and strong user engagement.
In the second quarter, eBay added two million active buyers
across its platforms, for a total of 171 million global active
buyers. Marketplace exposed an increasing share of its traffic to
new product-based experiences as part of its structured data
initiative, and stepped up its efforts to market a more sharply
defined brand. Increased marketing activity in the U.S. included a
nation-wide fashion campaign as well as the launch of the "Fill
Your Cart with Color" brand platform in June with activations
across television, digital and social channels. The company also
recently announced a Price Match Guarantee on more than 80,000
deals in markets around the world as well as strategic partnerships
with Channel Advisor and Shopify. StubHub launched an enhanced
suite of tools for ticket sellers in North America, including a new price setting
recommendation tool, making the process to sell tickets easier.
Classifieds, a leader in eight markets around the world, continued
to grow its eBay inventory integration across multiple regions.
Second Quarter Financial Highlights (presented in millions,
except per share data and percentages)
|
Second
Quarter
|
|
|
|
2017
|
2016
|
Change
|
eBay
Inc.
|
|
|
|
|
Net
revenues
|
$2,328
|
$2,230
|
$98
|
4%
|
GAAP - Continuing
Operations
|
|
|
|
|
Income from
continuing operations
|
$27
|
$437
|
$(410)
|
(94)%
|
Earnings per diluted
share from continuing operations
|
$0.02
|
$0.38
|
$(0.36)
|
(95)%
|
Non-GAAP -
Continuing Operations
|
|
|
|
|
Net income
|
$493
|
$496
|
$(3)
|
(1)%
|
Earnings per diluted
share
|
$0.45
|
$0.43
|
$0.02
|
5%
|
Other Selected Financial and Operational Results
- Operating margin — GAAP operating margin decreased to 20.5% for
the second quarter of 2017, compared to 23.8% for the same period
last year. Non-GAAP operating margin decreased to 27.3% in the
second quarter of 2017, compared to 29.1% for the same period last
year.
- Taxes — The GAAP effective tax rate for continuing operations
for the second quarter of 2017 was 94%, primarily attributable to
the negative impact of a non-cash income tax charge of $311 million related to the ongoing realignment
of the company's legal structure, compared to 16% for the second
quarter of 2016. The non-GAAP effective tax rate for continuing
operations for the second quarter of 2017 was 20%, compared to 18%
for the second quarter of 2016.
- Cash flow — The company generated $699
million of operating cash flow from continuing operations
and $517 million of free cash flow
from continuing operations during the second quarter of 2017.
- Stock repurchase program — The company repurchased
approximately $507 million of its
common stock, or 15 million shares, in the second quarter
of 2017. The company's total repurchase authorization remaining as
of June 30, 2017 was $479
million.
- Cash and cash equivalents and non-equity investments — The
company's cash and cash equivalents and non-equity investments
portfolio totaled $13.6 billion as of
June 30, 2017.
Business Outlook
- Third quarter 2017 — The company expects net revenue between
$2.35 billion and $2.39 billion,
representing Organic FX-Neutral growth of 6% - 8%, with non-GAAP
earnings per diluted share from continuing operations in the range
of $0.46 - $0.48 and GAAP earnings
per diluted share from continuing operations in the range of
$0.30 - $0.32.
- Full year 2017 - The company expects net revenue between
$9.3 billion and $9.5 billion,
representing Organic FX-Neutral growth of 6% - 8%, with non-GAAP
earnings per diluted share from continuing operations in the range
of $1.98 - $2.03 and GAAP earnings
per diluted share from continuing operations in the range of
$1.65 - $1.75.
In July 2017, eBay's board of
directors authorized an additional $3.0
billion stock repurchase program, with no expiration from
the date of authorization. The company's stock repurchase program
is intended to programmatically offset the impact of dilution from
its equity compensation programs and, subject to market conditions
and other factors, to make opportunistic repurchases of its common
stock to reduce its outstanding share count. Any share repurchases
under the company's stock repurchase programs may be made through
open market transactions, block trades, privately negotiated
transactions (including accelerated share repurchase transactions)
or other means at times and in such amounts as management deems
appropriate and will be funded from the company's working capital
or other financing alternatives.
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss second quarter
2017 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 https://investors.ebayinc.com. In addition, an archive
of the webcast will be accessible for 90 days through the same
link.
eBay Inc. uses its Investor Relations website at
https://investors.ebayinc.com as a means of disclosing
material non-public information and for complying with its
disclosure obligations under Regulation FD. Accordingly, investors
should monitor, in addition to following press releases, SEC
filings, public conference calls and webcasts.
About eBay
eBay Inc. (NASDAQ: EBAY) is a global commerce leader including
the Marketplace, StubHub and Classifieds platforms. Collectively,
we connect millions of buyers and sellers around the world,
empowering people and creating opportunity through Connected
Commerce. Founded in 1995 in San Jose,
Calif., eBay is one of the world's largest and most vibrant
marketplaces for discovering great value and unique selection. In
2016, eBay enabled $84 billion of
gross merchandise volume. For more information about the company
and its global portfolio of online brands, visit
www.ebayinc.com.
Presentation
All growth rates represent year over year comparisons, except as
otherwise noted. All amounts in tables are presented in U.S.
dollars, rounded to the nearest millions, except as otherwise
noted. As a result, certain amounts may not sum or recalculate
using the rounded dollar amounts provided.
Non-GAAP Financial Measures
This press release includes the following financial measures
defined as "non-GAAP financial measures" by the Securities and
Exchange Commission (SEC): non-GAAP net income, non-GAAP earnings
per diluted share, non-GAAP operating margin, non-GAAP effective
tax rate and free cash flow. 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 to the
nearest comparable GAAP measures, see "Business Outlook,"
"Non-GAAP Measures of Financial Performance," "Reconciliation
of GAAP Operating Margin to Non-GAAP Operating Margin,"
"Reconciliation of GAAP Net Income to Non-GAAP Net Income
and Reconciliation of GAAP Effective Tax Rate to
Non-GAAP Effective Tax Rate" and "Reconciliation of Operating
Cash Flow to Free Cash Flow" included in this press release.
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 expected financial results for
the third quarter and full year 2017 and the future growth in its
business. Actual results could differ materially from those
predicted or implied and reported results should not be considered
as an indication of future performance. Other factors that could
cause or contribute to such differences include, but are not
limited to: changes in political, business and economic conditions,
any regional or general economic downturn or crisis and any
conditions that affect ecommerce growth or cross-border trade;
fluctuations in foreign currency exchange rates; the company's need
to successfully react to the increasing importance of mobile
commerce and the increasing social aspect of commerce; an
increasingly competitive environment for its business; changes to
the company's capital allocation or management of operating cash;
the company's ability to manage its indebtedness, including
managing exposure to interest rates and maintaining its credit
ratings; the company's need to manage an increasingly large
enterprise with a broad range of businesses of varying degrees of
maturity and in many different geographies; the company's need
and ability to manage regulatory, tax, data security and litigation
risks; whether the operational, marketing and strategic benefits of
the separation of the eBay and PayPal businesses can be achieved;
the company's ability to timely upgrade and develop its technology
systems, infrastructure and customer service capabilities at
reasonable cost while maintaining site stability and performance
and adding new products and features; and the company's ability to
integrate, manage and grow businesses that have been acquired or
may be acquired in the future.
The forward-looking statements in this release do not include
the potential impact of any acquisitions or divestitures that may
be announced and/or completed after the date hereof.
More information about factors that could affect the company's
operating results is included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the company's most recent Annual Report
on Form 10-K and subsequent quarterly reports on
Form 10-Q, copies of which may be obtained by visiting the
company's Investor Relations website at
https://investors.ebayinc.com or the SEC's website at
www.sec.gov. All information in this release is as of July 20,
2017. 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
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
(In millions)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
2,636
|
|
|
$
|
1,816
|
|
Short-term
investments
|
6,381
|
|
|
5,333
|
|
Accounts receivable,
net
|
619
|
|
|
592
|
|
Other current
assets
|
1,270
|
|
|
1,134
|
|
Total current
assets
|
10,906
|
|
|
8,875
|
|
Long-term
investments
|
4,754
|
|
|
3,969
|
|
Property and
equipment, net
|
1,538
|
|
|
1,516
|
|
Goodwill
|
4,665
|
|
|
4,501
|
|
Intangible assets,
net
|
92
|
|
|
102
|
|
Deferred tax
assets
|
5,242
|
|
|
4,608
|
|
Other
assets
|
286
|
|
|
276
|
|
Total
assets
|
$
|
27,483
|
|
|
$
|
23,847
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
2,215
|
|
|
$
|
1,451
|
|
Accounts
payable
|
284
|
|
|
283
|
|
Accrued expenses and
other current liabilities
|
1,870
|
|
|
1,893
|
|
Deferred
revenue
|
125
|
|
|
110
|
|
Income taxes
payable
|
102
|
|
|
110
|
|
Total current
liabilities
|
4,596
|
|
|
3,847
|
|
Deferred and other
tax liabilities, net
|
2,098
|
|
|
1,888
|
|
Long-term
debt
|
9,251
|
|
|
7,509
|
|
Other
liabilities
|
64
|
|
|
64
|
|
Total
liabilities
|
16,009
|
|
|
13,308
|
|
|
|
|
|
Total stockholders'
equity
|
11,474
|
|
|
10,539
|
|
Total liabilities and
stockholders' equity
|
$
|
27,483
|
|
|
$
|
23,847
|
|
eBay
Inc.
|
Unaudited
Condensed Consolidated Statement of Income
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
2,328
|
|
|
$
|
2,230
|
|
|
$
|
4,545
|
|
|
$
|
4,367
|
|
Cost of net revenues
(1)
|
561
|
|
|
493
|
|
|
1,076
|
|
|
970
|
|
Gross
profit
|
1,767
|
|
|
1,737
|
|
|
3,469
|
|
|
3,397
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales and marketing
(1)
|
637
|
|
|
622
|
|
|
1,199
|
|
|
1,160
|
|
Product development
(1)
|
313
|
|
|
295
|
|
|
591
|
|
|
534
|
|
General and
administrative (1)
|
267
|
|
|
218
|
|
|
512
|
|
|
427
|
|
Provision for
transaction losses
|
63
|
|
|
64
|
|
|
125
|
|
|
116
|
|
Amortization of
acquired intangible assets
|
9
|
|
|
7
|
|
|
18
|
|
|
15
|
|
Total operating
expenses
|
1,289
|
|
|
1,206
|
|
|
2,445
|
|
|
2,252
|
|
Income from
operations
|
478
|
|
|
531
|
|
|
1,024
|
|
|
1,145
|
|
Interest and other,
net
|
(18)
|
|
|
(8)
|
|
|
(6)
|
|
|
(31)
|
|
Income from
continuing operations before income taxes
|
460
|
|
|
523
|
|
|
1,018
|
|
|
1,114
|
|
Income tax benefit
(provision)
|
(433)
|
|
|
(86)
|
|
|
44
|
|
|
(195)
|
|
Income from
continuing operations
|
$
|
27
|
|
|
$
|
437
|
|
|
$
|
1,062
|
|
|
$
|
919
|
|
Loss from
discontinued operations, net of income taxes
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Net income
|
$
|
27
|
|
|
$
|
435
|
|
|
$
|
1,062
|
|
|
$
|
917
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share - basic:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.03
|
|
|
$
|
0.38
|
|
|
$
|
0.98
|
|
|
$
|
0.80
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income per share
- basic
|
$
|
0.03
|
|
|
$
|
0.38
|
|
|
$
|
0.98
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share - diluted:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.02
|
|
|
$
|
0.38
|
|
|
$
|
0.97
|
|
|
$
|
0.79
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income per share
- diluted
|
$
|
0.02
|
|
|
$
|
0.38
|
|
|
$
|
0.97
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Basic
|
1,076
|
|
|
1,144
|
|
|
1,080
|
|
|
1,151
|
|
Diluted
|
1,091
|
|
|
1,149
|
|
|
1,097
|
|
|
1,159
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation as follows:
|
|
|
|
|
|
|
|
Cost of net
revenues
|
$
|
15
|
|
|
$
|
10
|
|
|
$
|
26
|
|
|
$
|
17
|
|
Sales and
marketing
|
28
|
|
|
26
|
|
|
49
|
|
|
47
|
|
Product
development
|
50
|
|
|
44
|
|
|
86
|
|
|
75
|
|
General and
administrative
|
44
|
|
|
33
|
|
|
77
|
|
|
62
|
|
|
$
|
137
|
|
|
$
|
113
|
|
|
$
|
238
|
|
|
$
|
201
|
|
eBay
Inc.
|
Unaudited
Condensed Consolidated Statement of Cash Flows
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
millions)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
|
27
|
|
|
$
|
435
|
|
|
$
|
1,062
|
|
|
$
|
917
|
|
Income from
discontinued operations, net of income taxes
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Adjustments:
|
|
|
|
|
|
|
|
Provision for
transaction losses
|
63
|
|
|
64
|
|
|
125
|
|
|
116
|
|
Depreciation and
amortization
|
168
|
|
|
167
|
|
|
331
|
|
|
334
|
|
Stock-based
compensation
|
137
|
|
|
113
|
|
|
238
|
|
|
201
|
|
Deferred income
taxes
|
442
|
|
|
(34)
|
|
|
(123)
|
|
|
(62)
|
|
Changes in assets and
liabilities, and other, net of acquisition effects
|
(138)
|
|
|
17
|
|
|
(352)
|
|
|
(103)
|
|
Net cash provided by
continuing operating activities
|
699
|
|
|
764
|
|
|
1,281
|
|
|
1,405
|
|
Net cash provided by
(used in) discontinued operating activities
(1)
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Net cash provided by
operating activities
|
699
|
|
|
763
|
|
|
1,281
|
|
|
1,404
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(182)
|
|
|
(147)
|
|
|
(317)
|
|
|
(305)
|
|
Purchases of
investments
|
(4,853)
|
|
|
(2,193)
|
|
|
(7,603)
|
|
|
(5,128)
|
|
Maturities and sales
of investments
|
3,045
|
|
|
1,489
|
|
|
5,815
|
|
|
3,519
|
|
Other
|
(21)
|
|
|
(47)
|
|
|
(21)
|
|
|
(59)
|
|
Net cash used in
continuing investing activities
|
(2,011)
|
|
|
(898)
|
|
|
(2,126)
|
|
|
(1,973)
|
|
Net cash used in
discontinued investing activities (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net cash used in
investing activities
|
(2,011)
|
|
|
(898)
|
|
|
(2,126)
|
|
|
(1,973)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock
|
51
|
|
|
45
|
|
|
62
|
|
|
52
|
|
Repurchases of common
stock
|
(507)
|
|
|
(500)
|
|
|
(917)
|
|
|
(1,501)
|
|
Excess tax benefits
from stock-based compensation
|
—
|
|
|
3
|
|
|
—
|
|
|
4
|
|
Tax withholdings
related to net share settlements of restricted stock units and
awards
|
(101)
|
|
|
(69)
|
|
|
(130)
|
|
|
(77)
|
|
Proceeds from
issuance of long-term debt, net
|
2,484
|
|
|
—
|
|
|
2,484
|
|
|
2,216
|
|
Other
|
5
|
|
|
(16)
|
|
|
15
|
|
|
(9)
|
|
Net cash provided by
(used in) continuing financing activities
|
1,932
|
|
|
(537)
|
|
|
1,514
|
|
|
685
|
|
Net cash used in
discontinued financing activities (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
1,932
|
|
|
(537)
|
|
|
1,514
|
|
|
685
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
37
|
|
|
(13)
|
|
|
151
|
|
|
53
|
|
Net increase
(decrease) in cash and cash equivalents
|
657
|
|
|
(685)
|
|
|
820
|
|
|
169
|
|
Cash and cash
equivalents at beginning of period
|
1,979
|
|
|
2,686
|
|
|
1,816
|
|
|
1,832
|
|
Cash and cash
equivalents at end of period
|
2,636
|
|
|
2,001
|
|
|
2,636
|
|
|
2,001
|
|
Less: Cash and cash
equivalents of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Cash and cash
equivalents of continuing operations at end of period
|
$
|
2,636
|
|
|
$
|
2,001
|
|
|
$
|
2,636
|
|
|
$
|
2,001
|
|
eBay
Inc.
|
Unaudited Summary
of Consolidated Net Revenues
|
|
|
Three Months
Ended
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
|
(In millions,
except percentages)
|
Net Revenues by
Type:
|
|
|
|
|
|
|
|
|
|
Net transaction
revenues:
|
|
|
|
|
|
|
|
|
|
Marketplace
|
$
|
1,590
|
|
|
$
|
1,525
|
|
|
$
|
1,602
|
|
|
$
|
1,484
|
|
|
$
|
1,521
|
|
Current quarter vs
prior year quarter
|
5
|
%
|
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
—
|
%
|
Percent from
international
|
61
|
%
|
|
60
|
%
|
|
62
|
%
|
|
62
|
%
|
|
62
|
%
|
StubHub
|
227
|
|
|
204
|
|
|
274
|
|
|
261
|
|
|
225
|
|
Current quarter vs
prior year quarter
|
1
|
%
|
|
15
|
%
|
|
18
|
%
|
|
31
|
%
|
|
40
|
%
|
Percent from
international
|
5
|
%
|
|
4
|
%
|
|
3
|
%
|
|
2
|
%
|
|
1
|
%
|
Total net
transaction revenues
|
1,817
|
|
|
1,729
|
|
|
1,876
|
|
|
1,745
|
|
|
1,746
|
|
Current quarter vs
prior year quarter
|
4
|
%
|
|
3
|
%
|
|
3
|
%
|
|
5
|
%
|
|
4
|
%
|
Percent from
international
|
54
|
%
|
|
53
|
%
|
|
53
|
%
|
|
53
|
%
|
|
54
|
%
|
|
|
|
|
|
|
|
|
|
|
Marketing services
and other revenues:
|
|
|
|
|
|
|
|
|
|
Marketplace
|
283
|
|
|
283
|
|
|
313
|
|
|
273
|
|
|
277
|
|
Current quarter vs
prior year quarter
|
2
|
%
|
|
4
|
%
|
|
(4)
|
%
|
|
3
|
%
|
|
10
|
%
|
Percent from
international
|
51
|
%
|
|
47
|
%
|
|
48
|
%
|
|
45
|
%
|
|
46
|
%
|
Classifieds
|
219
|
|
|
199
|
|
|
201
|
|
|
197
|
|
|
207
|
|
Current quarter vs
prior year quarter
|
6
|
%
|
|
7
|
%
|
|
10
|
%
|
|
11
|
%
|
|
15
|
%
|
Percent from
international
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
StubHub, Corporate
and other
|
9
|
|
|
6
|
|
|
5
|
|
|
2
|
|
|
—
|
|
Total marketing
services and other revenues
|
511
|
|
|
488
|
|
|
519
|
|
|
472
|
|
|
484
|
|
Current quarter vs
prior year quarter
|
6
|
%
|
|
6
|
%
|
|
3
|
%
|
|
7
|
%
|
|
14
|
%
|
Percent from
international
|
73
|
%
|
|
69
|
%
|
|
68
|
%
|
|
68
|
%
|
|
69
|
%
|
|
|
|
|
|
|
|
|
|
|
Total net
revenues
|
$
|
2,328
|
|
|
$
|
2,217
|
|
|
$
|
2,395
|
|
|
$
|
2,217
|
|
|
$
|
2,230
|
|
Current quarter vs
prior year quarter
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
|
6
|
%
|
|
6
|
%
|
eBay
Inc.
|
Unaudited
Supplemental Operating Data
|
|
|
Three Months
Ended
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
June 30,
2016
|
|
(In millions,
except percentages)
|
Active Buyers
(1)
|
171
|
|
|
169
|
|
|
167
|
|
|
165
|
|
|
164
|
|
Current quarter vs
prior year quarter
|
4
|
%
|
|
4
|
%
|
|
3
|
%
|
|
3
|
%
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
Gross Merchandise
Volume (2)
|
|
|
|
|
|
|
|
|
|
Marketplace
|
$
|
20,457
|
|
|
$
|
20,033
|
|
|
$
|
21,104
|
|
|
$
|
18,973
|
|
|
$
|
19,790
|
|
Current quarter vs
prior year quarter
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
3
|
%
|
StubHub
|
$
|
1,010
|
|
|
$
|
916
|
|
|
$
|
1,239
|
|
|
$
|
1,142
|
|
|
$
|
1,060
|
|
Current quarter vs
prior year quarter
|
(5)
|
%
|
|
6
|
%
|
|
5
|
%
|
|
23
|
%
|
|
35
|
%
|
Total
GMV
|
$
|
21,467
|
|
|
$
|
20,949
|
|
|
$
|
22,343
|
|
|
$
|
20,115
|
|
|
$
|
20,850
|
|
Current quarter vs
prior year quarter
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
3
|
%
|
|
4
|
%
|
|
|
(1)
|
All buyers who
successfully closed a transaction on our Marketplace and StubHub
platforms within the previous 12-month period. Buyers may register
more than once, and as a result, may have more than one
account.
|
(2)
|
Total value of all
successfully closed transactions between users on our Marketplace
and StubHub platforms during the period regardless of whether the
buyer and seller actually consummated the transaction. We believe
that GMV provides a useful measure of the overall volume of closed
transactions that flow through our platforms in a given period,
notwithstanding the inclusion in GMV of closed transactions that
are not ultimately consummated.
|
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 its most recent annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q, copies of which may
be obtained by visiting eBay's investor relations website at
https://investors.ebayinc.com or the SEC's website at
www.sec.gov.
eBay
Inc.
|
|
|
Three Months
Ending
|
|
September 30,
2017
|
(In billions,
except per share amounts)
|
GAAP
|
|
Non-GAAP
(a)
|
Net
Revenue
|
$2.35 -
$2.39
|
|
$2.35 -
$2.39
|
Diluted EPS from
continuing operations
|
$0.30 -
$0.32
|
|
$0.46 -
$0.48
|
|
|
|
|
|
Twelve Months
Ending
|
|
December 31,
2017
|
(In billions,
except per share amounts)
|
GAAP
|
|
Non-GAAP
(b)
|
Net
Revenue
|
$9.3 -
$9.5
|
|
$9.3 -
$9.5
|
Diluted EPS from
continuing operations
|
$1.65 -
$1.75
|
|
$1.98 -
$2.03
|
|
|
(a)
|
Estimated non-GAAP
amounts above for the three months ending September 30, 2017,
reflect adjustments that exclude the estimated amortization of
acquired intangible assets of approximately $15 -
$20 million and estimated stock-based compensation expense and
associated employer payroll tax expense of approximately $125
- $135 million, as well as the related income tax impact.
Estimated non-GAAP amounts above for the three months ending
September 30, 2017, reflect adjustments that exclude the estimated
tax impacts of the company's legal entity realignment of
approximately $65 - $80 million.
|
(b)
|
Estimated non-GAAP
amounts above for the twelve months ending December 31, 2017,
reflect adjustments that exclude the estimated amortization of
acquired intangible assets of approximately $55 -
$65 million and estimated stock-based compensation expense and
associated employer payroll tax expense of approximately $490
- $510 million, as well as the related income tax impact.
Estimated non-GAAP amounts above for the twelve months ending
December 31, 2017, reflect adjustments that exclude the
estimated tax impacts of the company's legal entity realignment of
approximately $(10) - $(40) million.
|
eBay Inc.
Non-GAAP Measures of
Financial Performance
To supplement the company's condensed consolidated financial
statements presented in accordance with generally accepted
accounting principles, or GAAP, the company uses non-GAAP measures
of certain components of financial performance. These non-GAAP
measures include non-GAAP net income, non-GAAP earnings per diluted
share, non-GAAP operating margin, non-GAAP effective tax rate, and
free cash flow. 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 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 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 effects of the
planned separation of our eBay and PayPal businesses, certain gains
and losses on investments, restructuring-related charges and the
income taxes associated with the foregoing. In addition to the
corresponding GAAP measures, the company's management also uses the
foregoing non-GAAP measures in reviewing the financial results of
the company.
The company excludes the following items from non-GAAP net
income, non-GAAP earnings per diluted share, non-GAAP operating
margin and non-GAAP effective tax rate:
Stock-based compensation
expense and related employer payroll taxes. This expense
consists of expenses for stock options, restricted stock and
employee stock purchases. The company excludes stock-based
compensation expense from its non-GAAP measures primarily because
they are non-cash expenses that management does not believe are
reflective of ongoing operating results. The related employer
payroll taxes are dependent on the company's stock price and the
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 the company's operation of the business.
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 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 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.
Separation. These are
significant expenses that are related to the separation of our eBay
and PayPal businesses into separate publicly traded companies.
These consist primarily of third-party consulting fees, legal fees,
employee retention payments, tax indemnifications and other
expenses related to the separation.
Tax effect of non-GAAP
adjustments. 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, 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, 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
June 30,
|
|
Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In millions,
except percentages)
|
GAAP operating
income
|
$
|
478
|
|
|
$
|
531
|
|
|
$
|
1,024
|
|
|
$
|
1,145
|
|
Stock-based
compensation expense and related employer payroll taxes
|
145
|
|
|
120
|
|
|
248
|
|
|
209
|
|
Amortization of
acquired intangible assets within cost of net revenues
|
6
|
|
|
4
|
|
|
13
|
|
|
8
|
|
Amortization of
acquired intangible assets within operating expenses
|
9
|
|
|
7
|
|
|
18
|
|
|
15
|
|
Separation
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Other significant
gains, losses or charges
|
(3)
|
|
|
(13)
|
|
|
(3)
|
|
|
(13)
|
|
Total non-GAAP
operating income adjustments
|
157
|
|
|
118
|
|
|
276
|
|
|
218
|
|
Non-GAAP operating
income
|
$
|
635
|
|
|
$
|
649
|
|
|
$
|
1,300
|
|
|
$
|
1,363
|
|
Non-GAAP operating
margin
|
27.3
|
%
|
|
29.1
|
%
|
|
28.6
|
%
|
|
31.2
|
%
|
Reconciliation of
GAAP Net Income to Non-GAAP Net Income and
|
GAAP Effective Tax
Rate to Non-GAAP Effective Tax Rate*
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In millions,
except per share amounts and percentages)
|
GAAP income from
continuing operations before income taxes
|
$
|
460
|
|
|
$
|
523
|
|
|
$
|
1,018
|
|
|
$
|
1,114
|
|
GAAP provision for
income taxes
|
(433)
|
|
|
(86)
|
|
|
44
|
|
|
(195)
|
|
GAAP net income from
continuing operations
|
$
|
27
|
|
|
$
|
437
|
|
|
$
|
1,062
|
|
|
$
|
919
|
|
Non-GAAP adjustments
to net income from continuing operations:
|
|
|
|
|
|
|
|
Non-GAAP operating
income from continuing operations adjustments (see table
above)
|
157
|
|
|
118
|
|
|
276
|
|
|
218
|
|
Gains or losses on
investments
|
—
|
|
|
(35)
|
|
|
(16)
|
|
|
(35)
|
|
Tax effect of step-up
of intangible assets basis
|
—
|
|
|
—
|
|
|
(695)
|
|
|
—
|
|
Foreign exchange
effect of step-up of intangible assets basis
|
311
|
|
|
—
|
|
|
376
|
|
|
—
|
|
Tax effect of
non-GAAP adjustments
|
(2)
|
|
|
(24)
|
|
|
28
|
|
|
(56)
|
|
Non-GAAP net income
from continuing operations
|
$
|
493
|
|
|
$
|
496
|
|
|
$
|
1,031
|
|
|
$
|
1,046
|
|
|
|
|
|
|
|
|
|
Diluted net income
from continuing operations per share:
|
|
|
|
|
|
|
|
GAAP
|
$
|
0.02
|
|
|
$
|
0.38
|
|
|
$
|
0.97
|
|
|
$
|
0.79
|
|
Non-GAAP
|
$
|
0.45
|
|
|
$
|
0.43
|
|
|
$
|
0.94
|
|
|
$
|
0.90
|
|
Shares used in GAAP
diluted net income (loss) per-share calculation
|
1,091
|
|
|
1,149
|
|
|
1,097
|
|
|
1,159
|
|
|
|
|
|
|
|
|
|
GAAP effective tax
rate - Continuing operations
|
94
|
%
|
|
16
|
%
|
|
(4)%
|
|
|
18
|
%
|
Tax effect of
non-GAAP adjustments to net income from continuing
operations
|
(74)
|
%
|
|
2
|
%
|
|
23
|
%
|
|
1
|
%
|
Non-GAAP effective
tax rate - Continuing operations
|
20
|
%
|
|
18
|
%
|
|
19
|
%
|
|
19
|
%
|
*Presented on a continuing operations basis
Reconciliation of
Operating Cash Flow to Free Cash Flow*
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(In
millions)
|
Net cash provided by
continuing operating activities
|
$
|
699
|
|
|
$
|
764
|
|
|
$
|
1,281
|
|
|
$
|
1,405
|
|
Less: Purchases of
property and equipment
|
(182)
|
|
|
(147)
|
|
|
(317)
|
|
|
(305)
|
|
Free cash flow from
continuing operations
|
$
|
517
|
|
|
$
|
617
|
|
|
$
|
964
|
|
|
$
|
1,100
|
|
*Presented on a continuing operations basis
View original content with
multimedia:http://www.prnewswire.com/news-releases/ebay-inc-reports-second-quarter-2017-results-300491842.html
SOURCE eBay Inc.