-
Gross Merchandise Volume grew 6% on an FX-Neutral basis
-
Revenue of $2.1 billion
-
Non-GAAP EPS of $0.43 per share and GAAP EPS of $0.45 per share on
a Continuing Operations Basis
-
Repurchased $599 million of Common Stock; $2.4 billion Repurchase
Authorization Remaining
-
eBay and PayPal Separated on July 17, 2015
SAN JOSE, Calif.--(BUSINESS WIRE)--
eBay Inc. (Nasdaq: EBAY), a global commerce leader, today reported that
gross merchandise volume (GMV) for the quarter ended September 30, 2015,
increased 6% on a foreign exchange (FX) neutral basis, in-line with the
prior quarter. Revenue for the quarter was $2.1 billion, driving
non-GAAP net income from continuing operations of $529 million or $0.43
per diluted share, and GAAP net income from continuing operations of
$545 million, or $0.45 per diluted share. The company repurchased $599
million of its common stock in the quarter, underscoring management's
confidence in the long-term value of the business.
"We drove solid results in the quarter in which we completed a complex
separation," said eBay Inc. President and CEO Devin Wenig. "We also
marked eBay's 20th anniversary and made progress on executing our
strategy to reposition the company to deliver stable and profitable
long-term growth."
eBay Inc.'s commerce platforms continued to increase the role they play
in global commerce, with an Active Buyer base that grew 5% year over
year, to 159 million. GMV in the quarter was $19.6 billion, a 6%
increase on an FX-Neutral basis and a 2% decline on an as-reported
basis, reflecting the continued impact of a strong U.S. dollar. In the
U.S., GMV grew 3%, a one point acceleration versus the prior quarter,
and International GMV increased 7% on an FX-Neutral basis, while it was
down 5% on an as-reported basis. Total revenue in the quarter of $2.1
billion was up 5% on an FX-Neutral basis and down 2% on an as-reported
basis.
The eBay Classifieds and StubHub platforms both had strong quarters and
continue to be key assets aligned with eBay's overall business strategy.
The quarter marked an important milestone for eBay as it celebrated its
20th anniversary with a number of activities, including a
seller conference where significant upcoming changes to its seller
policies and products were unveiled. These changes, which include more
objective standards and a new Seller Hub, are intended to help small and
medium sized sellers be even more successful on the eBay platform and
better reward sellers who provide great service to eBay buyers.
During the quarter, eBay completed the distribution of PayPal and made
progress against the completion of the sale of eBay Enterprise.
Accordingly, the results of both PayPal and eBay Enterprise are
presented as discontinued operations, appearing net of tax in a single
line in the company's statement of income.
|
Third Quarter 2015 Financial Highlights (presented in millions,
except per share data and percentages)
|
|
|
|
Third Quarter
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
eBay Inc.
|
|
|
|
|
|
|
|
|
|
Gross merchandise volume (GMV)
|
|
$19,601
|
|
$20,034
|
|
$(433)
|
|
(2%)
|
|
Net revenue
|
|
$2,099
|
|
$2,150
|
|
$(51)
|
|
(2%)
|
|
GAAP - Continuing Operations
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$545
|
|
$509
|
|
$36
|
|
7%
|
|
Earnings per diluted share from continuing operations
|
|
$0.45
|
|
$0.41
|
|
$0.04
|
|
10%
|
|
GAAP - Discontinued Operations (1)
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
$(6)
|
|
$164
|
|
$(170)
|
|
**
|
|
Earnings per diluted share from discontinued operations
|
|
$—
|
|
$0.13
|
|
$(0.13)
|
|
**
|
|
Non-GAAP Continuing Operations
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$529
|
|
$579
|
|
$(50)
|
|
(9%)
|
|
Earnings per diluted share
|
|
$0.43
|
|
$0.46
|
|
$(0.03)
|
|
(6%)
|
|
**Not meaningful
|
(1) Includes PayPal financial results from July 1, 2015 to July 17,
2015; July 1, 2014 to September 30, 2014; respectively; also includes
the financial results for the full periods, respectively, for eBay
Enterprise.
Other Selected Financial and Operational Results
-
Operating margin — GAAP operating margin decreased to 27.6% for the
third quarter of 2015, compared to 27.7% for the same period last
year. Non-GAAP operating margin decreased to 31.9% in the third
quarter, compared to 32.8% for the same period last year.
-
Taxes — The GAAP effective tax rate for continuing operations for the
third quarter of 2015 was 18.0%, compared to 17.0% for the third
quarter of 2014. The non-GAAP effective tax rate for continuing
operations for the third quarter of 2015 was 20.1%, compared to 19.8%
for the third quarter of 2014.
-
Cash flow — The company generated $704 million of operating cash flow
from continuing operations and $462 million of free cash flow from
continuing operations during the third quarter of 2015.
-
Stock repurchase program — The company repurchased approximately $599
million of its common stock, or 21.9 million shares, in
the third quarter. The company's total repurchase authorization
remaining as of September 30, 2015 was $2.4 billion.
-
Cash and cash equivalents and non-equity investments — The company's
cash and cash equivalents and non-equity investments portfolio totaled
$8.0 billion as of September 30, 2015.
Business Outlook
-
Fourth quarter year 2015 — The company expects net revenues between
$2,275 million to $2,325 million, representing FX-Neutral growth of 3%
- 5%, with Non-GAAP earnings per diluted share from continuing
operations in the range of $0.47 - $0.49 and GAAP earnings per diluted
share from continuing operations in the range of $0.42 - $0.44.
-
Full year 2015 — The company is maintaining net revenue guidance of 3%
- 5% growth on an FX-Neutral basis and increasing Non-GAAP earnings
per diluted share from continuing operations to the range of $1.80 -
$1.82 and GAAP earnings per diluted share from continuing operations
to the range of $1.58 - $1.60.
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss third quarter 2015
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 eBay,
StubHub and eBay 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 2014,
eBay enabled $83 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 company's planned sale of the Enterprise
business, and 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 the eBay business on a standalone basis, including
expected financial results for the fourth quarter and full year 2015,
the future growth in our business and mobile commerce. 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: whether the operational, marketing and
strategic benefits of the recently completed separation of the eBay and
PayPal businesses can be achieved; whether the costs and expenses of the
separation can be controlled within expectations; 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 our 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; 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 October 21, 2015. 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,
|
|
|
|
2015
|
|
2014
|
|
|
|
(In millions, except par value amounts)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,387
|
|
$
|
4,105
|
|
Short-term investments
|
|
2,914
|
|
3,730
|
|
Accounts receivable, net
|
|
595
|
|
600
|
|
Other current assets
|
|
1,149
|
|
1,048
|
|
Current assets of discontinued operations
|
|
—
|
|
16,795
|
|
Current assets held for sale
|
|
1,232
|
|
253
|
|
Total current assets
|
|
8,277
|
|
26,531
|
|
Long-term investments
|
|
3,572
|
|
5,736
|
|
Property and equipment, net
|
|
1,535
|
|
1,486
|
|
Goodwill
|
|
4,442
|
|
4,671
|
|
Intangible assets, net
|
|
90
|
|
133
|
|
Other assets
|
|
269
|
|
207
|
|
Long-term assets of discontinued operations
|
|
—
|
|
4,506
|
|
Long-term assets held for sale
|
|
—
|
|
1,862
|
|
Total assets
|
|
$
|
18,185
|
|
$
|
45,132
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term debt
|
|
$
|
625
|
|
$
|
850
|
|
Accounts payable
|
|
175
|
|
107
|
|
Accrued expenses and other current liabilities
|
|
3,107
|
|
3,830
|
|
Deferred revenue
|
|
137
|
|
108
|
|
Income taxes payable
|
|
57
|
|
125
|
|
Current liabilities of discontinued operations
|
|
—
|
|
12,137
|
|
Current liabilities held for sale
|
|
336
|
|
374
|
|
Total current liabilities
|
|
4,437
|
|
17,531
|
|
Deferred and other tax liabilities, net
|
|
511
|
|
522
|
|
Long-term debt
|
|
6,814
|
|
6,777
|
|
Other liabilities
|
|
85
|
|
79
|
|
Long-term liabilities of discontinued operations
|
|
—
|
|
243
|
|
Long-term liabilities held for sale
|
|
—
|
|
74
|
|
Total liabilities
|
|
11,847
|
|
25,226
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
6,338
|
|
19,906
|
|
Total liabilities and stockholders' equity
|
|
$
|
18,185
|
|
$
|
45,132
|
|
|
|
|
|
|
|
|
|
eBay Inc.
|
|
Unaudited Condensed Consolidated Statement of Income
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
2,099
|
|
|
$
|
2,150
|
|
|
$
|
6,270
|
|
|
$
|
6,467
|
|
|
Cost of net revenues (1)
|
|
433
|
|
|
413
|
|
|
1,278
|
|
|
1,221
|
|
|
Gross profit
|
|
1,666
|
|
|
1,737
|
|
|
4,992
|
|
|
5,246
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Sales and marketing (1)
|
|
565
|
|
|
624
|
|
|
1,672
|
|
|
1,815
|
|
|
Product development (1)
|
|
241
|
|
|
246
|
|
|
694
|
|
|
747
|
|
|
General and administrative (1)
|
|
207
|
|
|
203
|
|
|
862
|
|
|
678
|
|
|
Provision for transaction losses
|
|
65
|
|
|
58
|
|
|
199
|
|
|
196
|
|
|
Amortization of acquired intangible assets
|
|
10
|
|
|
10
|
|
|
30
|
|
|
65
|
|
|
Total operating expenses
|
|
1,088
|
|
|
1,141
|
|
|
3,457
|
|
|
3,501
|
|
|
Income from operations
|
|
578
|
|
|
596
|
|
|
1,535
|
|
|
1,745
|
|
|
Interest and other, net
|
|
87
|
|
|
17
|
|
|
221
|
|
|
32
|
|
|
Income from continuing operations before income taxes
|
|
665
|
|
|
613
|
|
|
1,756
|
|
|
1,777
|
|
|
Provision for income taxes
|
|
(120
|
)
|
|
(104
|
)
|
|
(332
|
)
|
|
(3,371
|
)
|
|
Income (loss) from continuing operations
|
|
$
|
545
|
|
|
$
|
509
|
|
|
$
|
1,424
|
|
|
$
|
(1,594
|
)
|
|
Income (loss) from discontinued operations, net of income taxes (2)
|
|
(6
|
)
|
|
164
|
|
|
(176
|
)
|
|
617
|
|
|
Net income (loss)
|
|
$
|
539
|
|
|
$
|
673
|
|
|
$
|
1,248
|
|
|
$
|
(977
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share - basic:
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
$
|
1.17
|
|
|
$
|
(1.27
|
)
|
|
Discontinued operations
|
|
$
|
—
|
|
|
$
|
0.13
|
|
|
$
|
(0.14
|
)
|
|
$
|
0.49
|
|
|
Net income (loss) per share - basic
|
|
$
|
0.45
|
|
|
$
|
0.54
|
|
|
$
|
1.03
|
|
|
$
|
(0.78
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share - diluted:
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
$
|
1.16
|
|
|
$
|
(1.27
|
)
|
|
Discontinued operations
|
|
$
|
—
|
|
|
$
|
0.13
|
|
|
$
|
(0.14
|
)
|
|
$
|
0.49
|
|
|
Net income (loss) per share - diluted
|
|
$
|
0.45
|
|
|
$
|
0.54
|
|
|
$
|
1.02
|
|
|
$
|
(0.78
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1,210
|
|
|
1,242
|
|
|
1,214
|
|
|
1,258
|
|
|
Diluted
|
|
1,223
|
|
|
1,251
|
|
|
1,226
|
|
|
1,258
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based compensation as follows:
|
|
|
|
|
|
|
|
|
|
Cost of net revenues
|
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
28
|
|
|
$
|
23
|
|
|
Sales and marketing
|
|
28
|
|
|
24
|
|
|
75
|
|
|
71
|
|
|
Product development
|
|
29
|
|
|
30
|
|
|
83
|
|
|
90
|
|
|
General and administrative
|
|
26
|
|
|
24
|
|
|
115
|
|
|
67
|
|
|
|
|
$
|
93
|
|
|
$
|
86
|
|
|
$
|
301
|
|
|
$
|
251
|
|
(2) Includes PayPal financial results from July 1, 2015 to July 17,
2015; July 1, 2014 to September 30, 2014; January 1, 2015 to July 17,
2015; and January 1, 2014 to September 30, 2014; respectively; also
includes the financial results for the full periods, respectively, for
eBay Enterprise.
|
eBay Inc.
|
|
Unaudited Condensed Consolidated Statement of Cash Flows
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(In millions)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
539
|
|
|
$
|
673
|
|
|
$
|
1,248
|
|
|
$
|
(977
|
)
|
|
(Income) loss from discontinued operations
|
|
6
|
|
|
(164
|
)
|
|
176
|
|
|
(617
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Provision for transaction losses
|
|
65
|
|
|
58
|
|
|
199
|
|
|
196
|
|
|
Depreciation and amortization
|
|
182
|
|
|
164
|
|
|
516
|
|
|
518
|
|
|
Stock-based compensation
|
|
93
|
|
|
86
|
|
|
301
|
|
|
251
|
|
|
Gain on sale of investments
|
|
(110
|
)
|
|
—
|
|
|
(212
|
)
|
|
—
|
|
|
Deferred income taxes
|
|
14
|
|
|
(9
|
)
|
|
(115
|
)
|
|
2,979
|
|
|
Changes in assets and liabilities, net of acquisition effects
|
|
(85
|
)
|
|
(13
|
)
|
|
(362
|
)
|
|
40
|
|
|
Net cash provided by continuing operating activities
|
|
704
|
|
|
795
|
|
|
1,751
|
|
|
2,390
|
|
|
Net cash provided by (used in) discontinued operating activities(1)
|
|
(18
|
)
|
|
573
|
|
|
1,242
|
|
|
1,646
|
|
|
Net cash provided by operating activities
|
|
686
|
|
|
1,368
|
|
|
2,993
|
|
|
4,036
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(242
|
)
|
|
(196
|
)
|
|
(539
|
)
|
|
(422
|
)
|
|
Purchases of investments
|
|
(1,102
|
)
|
|
(3,194
|
)
|
|
(4,452
|
)
|
|
(6,808
|
)
|
|
Maturities and sales of investments
|
|
1,627
|
|
|
1,322
|
|
|
5,579
|
|
|
4,205
|
|
|
Acquisitions, net of cash acquired
|
|
(24
|
)
|
|
(20
|
)
|
|
(24
|
)
|
|
(55
|
)
|
|
Other
|
|
(12
|
)
|
|
—
|
|
|
(15
|
)
|
|
(5
|
)
|
|
Net cash provided by (used in) continuing investing activities
|
|
247
|
|
|
(2,088
|
)
|
|
549
|
|
|
(3,085
|
)
|
|
Net cash provided by (used in) discontinued investing activities(1)
|
|
(1,114
|
)
|
|
(528
|
)
|
|
(3,837
|
)
|
|
(660
|
)
|
|
Net cash provided by (used in) investing activities
|
|
(867
|
)
|
|
(2,616
|
)
|
|
(3,288
|
)
|
|
(3,745
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
27
|
|
|
24
|
|
|
173
|
|
|
178
|
|
|
Repurchases of common stock
|
|
(512
|
)
|
|
(8
|
)
|
|
(1,512
|
)
|
|
(3,476
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
32
|
|
|
2
|
|
|
72
|
|
|
56
|
|
|
Tax withholdings related to net share settlements of restricted
stock units and awards
|
|
(46
|
)
|
|
(14
|
)
|
|
(226
|
)
|
|
(224
|
)
|
|
Proceeds from issuance of debt
|
|
—
|
|
|
3,482
|
|
|
—
|
|
|
3,482
|
|
|
Repayment of debt
|
|
(250
|
)
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
Net borrowings under commercial paper program
|
|
—
|
|
|
(1,200
|
)
|
|
—
|
|
|
—
|
|
|
Other
|
|
10
|
|
|
5
|
|
|
10
|
|
|
8
|
|
|
Net cash provided by (used in) continuing financing activities
|
|
(739
|
)
|
|
2,291
|
|
|
(1,733
|
)
|
|
24
|
|
|
Net cash provided by (used in) discontinued financing activities(1)
|
|
(1,615
|
)
|
|
(10
|
)
|
|
(1,599
|
)
|
|
19
|
|
|
Net cash provided by (used in) financing activities
|
|
(2,354
|
)
|
|
2,281
|
|
|
(3,332
|
)
|
|
43
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(37
|
)
|
|
(77
|
)
|
|
(286
|
)
|
|
(38
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
(2,572
|
)
|
|
956
|
|
|
(3,913
|
)
|
|
296
|
|
|
Cash and cash equivalents at beginning of period
|
|
4,987
|
|
|
3,834
|
|
|
6,328
|
|
|
4,494
|
|
|
Cash and cash equivalents at end of period
|
|
2,415
|
|
|
4,790
|
|
|
2,415
|
|
|
4,790
|
|
|
Less: Cash and cash equivalents of held for sale
|
|
28
|
|
|
29
|
|
|
28
|
|
|
29
|
|
|
Less: Cash and cash equivalents of discontinued operations
|
|
—
|
|
|
2,254
|
|
|
—
|
|
|
2,254
|
|
|
Cash and cash equivalents of continuing operations at end of period
|
|
$
|
2,387
|
|
|
$
|
2,507
|
|
|
$
|
2,387
|
|
|
$
|
2,507
|
|
(1) Includes PayPal financial results from July 1, 2015 to July 17,
2015; July 1, 2014 to September 30, 2014; January 1, 2015 to July 17,
2015; and January 1, 2014 to September 30, 2014; respectively; also
includes the financial results for the full periods, respectively, for
eBay Enterprise.
|
eBay Inc.
|
|
Unaudited Summary of Consolidated Net Revenues
|
|
|
|
Net Revenues by Type
|
|
Three Months Ended
|
|
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
(In millions, except percentages)
|
|
Net transaction revenues
|
|
$
|
1,659
|
|
|
$
|
1,685
|
|
|
$
|
1,668
|
|
|
$
|
1,836
|
|
|
$
|
1,703
|
|
|
Current quarter vs prior quarter
|
|
(2
|
)%
|
|
1
|
%
|
|
(9
|
)%
|
|
8
|
%
|
|
(1
|
)%
|
|
Current quarter vs prior year quarter
|
|
(3
|
)%
|
|
(2
|
)%
|
|
(3
|
)%
|
|
N/A
|
|
N/A
|
|
Percent from international
|
|
54
|
%
|
|
56
|
%
|
|
55
|
%
|
|
57
|
%
|
|
57
|
%
|
|
Marketing services and other revenues
|
|
440
|
|
|
425
|
|
|
393
|
|
|
487
|
|
|
447
|
|
|
Current quarter vs prior quarter
|
|
3
|
%
|
|
8
|
%
|
|
(19
|
)%
|
|
9
|
%
|
|
(1
|
)%
|
|
Current quarter vs prior year quarter
|
|
(2
|
)%
|
|
(5
|
)%
|
|
(8
|
)%
|
|
N/A
|
|
N/A
|
|
Percent from international
|
|
67
|
%
|
|
70
|
%
|
|
70
|
%
|
|
67
|
%
|
|
71
|
%
|
|
Total net revenues
|
|
$
|
2,099
|
|
|
$
|
2,110
|
|
|
$
|
2,061
|
|
|
$
|
2,323
|
|
|
$
|
2,150
|
|
|
Current quarter vs prior quarter
|
|
(1
|
)%
|
|
2
|
%
|
|
(11
|
)%
|
|
8
|
%
|
|
(1
|
)%
|
|
Current quarter vs prior year quarter
|
|
(2
|
)%
|
|
(3
|
)%
|
|
(4
|
)%
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eBay Inc.
|
|
Unaudited Supplemental Operating Data
|
|
|
|
|
|
Three Months Ended
|
|
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
(In millions, except percentages)
|
|
Active Buyers (1)
|
|
|
159
|
|
|
|
157
|
|
|
|
156
|
|
|
|
154
|
|
|
|
151
|
|
|
Current quarter vs prior quarter
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
1
|
%
|
|
|
2
|
%
|
|
|
2
|
%
|
|
Current quarter vs prior year quarter
|
|
|
5
|
%
|
|
|
6
|
%
|
|
|
8
|
%
|
|
|
10
|
%
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Merchandise Volume (2)
|
|
$
|
19,601
|
|
|
$
|
20,061
|
|
|
$
|
20,151
|
|
|
$
|
21,794
|
|
|
$
|
20,034
|
|
|
Current quarter vs prior quarter
|
|
|
(2
|
)%
|
|
|
—
|
%
|
|
|
(8
|
)%
|
|
|
9
|
%
|
|
|
(2
|
)%
|
|
Current quarter vs prior year quarter
|
|
|
(2
|
)%
|
|
|
(2
|
)%
|
|
|
(2
|
)%
|
|
|
2
|
%
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eBay's classifieds web sites, brands4friends and Shopping.com are
not included in these metrics.
|
|
(1)
|
|
All buyers (including buyers of Half.com, StubHub, GittiGidiyor, and
our Korean subsidiary) who successfully closed a transaction 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 platforms during the period regardless of whether the buyer and
seller actually consummated the transaction; excludes vehicles and
real estate gross merchandise volume. 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
(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 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
|
|
|
|
December 31, 2015
|
|
(In millions, except per share amounts)
|
|
GAAP
|
|
Non-GAAP (a)
|
|
Diluted EPS from continuing operations
|
|
$0.42 - $0.44
|
|
$0.47 - $0.49
|
|
|
|
|
|
|
|
|
|
Twelve Months Ending
|
|
|
|
December 31, 2015
|
|
|
|
GAAP
|
|
Non-GAAP (b)
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
Diluted EPS from continuing operations
|
|
$1.58 - $1.60
|
|
$1.80 - $1.82
|
|
|
|
|
|
|
|
(a) Estimated non-GAAP amounts above for the three months ending
December 31, 2015, reflect adjustments that exclude the estimated
amortization of acquired intangible assets of approximately $10 -
$20 million and estimated stock-based compensation expense and
employer payroll taxes on stock-based compensation expense of
approximately $75 - $85 million as well as the related tax impact.
|
|
|
|
(b) Estimated non-GAAP amounts above for the twelve months ending
December 31, 2015, reflect adjustments that exclude the estimated
amortization of acquired intangible assets of approximately $60 -
$70 million, estimated separation and restructuring expense of
approximately $185 - $190 million and estimated stock-based
compensation expense and employer payroll taxes on stock-based
compensation expense of approximately $390 - $400 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, significant gains or losses from the
disposal/acquisition of a business, certain effects of the planned
separation of our eBay and PayPal business, 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 is
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, 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 impact of the accretion of a note
receivable associated with the disposal of certain businesses. 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 planned 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 and other
expenses incurred to complete 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
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
(In millions, except percentages)
|
|
GAAP operating income
|
|
$
|
578
|
|
|
$
|
596
|
|
|
Stock-based compensation expense and related employer payroll taxes
|
|
94
|
|
|
90
|
|
|
Amortization of acquired intangible assets within cost of net
revenues
|
|
4
|
|
|
9
|
|
|
Amortization of acquired intangible assets within operating expenses
|
|
10
|
|
|
10
|
|
|
Other significant gains, losses or charges
|
|
(16
|
)
|
|
—
|
|
|
Total non-GAAP operating income adjustments
|
|
92
|
|
|
109
|
|
|
Non-GAAP operating income
|
|
$
|
670
|
|
|
$
|
705
|
|
|
Non-GAAP operating margin
|
|
31.9
|
%
|
|
32.8
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Income to Non-GAAP Net Income and
|
|
GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate*
|
|
|
|
|
|
Three Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
(In millions, except percentages)
|
|
GAAP income from continuing operations before income taxes
|
|
$
|
665
|
|
|
$
|
613
|
|
|
GAAP provision for income taxes
|
|
(120
|
)
|
|
(104
|
)
|
|
GAAP net income from continuing operations
|
|
$
|
545
|
|
|
$
|
509
|
|
|
Non-GAAP adjustments to net income from continuing operations:
|
|
|
|
|
|
Non-GAAP operating income from continuing operations adjustments
(see table above)
|
|
92
|
|
|
109
|
|
|
Gains or losses on investments
|
|
(94
|
)
|
|
—
|
|
|
Tax effect of non-GAAP adjustments
|
|
(14
|
)
|
|
(39
|
)
|
|
Non-GAAP net income from continuing operations
|
|
$
|
529
|
|
|
$
|
579
|
|
|
|
|
|
|
|
|
Diluted net income from continuing operations per share:
|
|
|
|
|
|
GAAP
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
Non-GAAP
|
|
$
|
0.43
|
|
|
$
|
0.46
|
|
|
Shares used in GAAP diluted net income (loss) per-share calculation
|
|
1,223
|
|
|
1,251
|
|
|
Shares used in non-GAAP diluted net income per-share calculation
|
|
1,223
|
|
|
1,251
|
|
|
|
|
|
|
|
|
GAAP effective tax rate - Continuing operations
|
|
18
|
%
|
|
17
|
%
|
|
Tax effect of non-GAAP adjustments to net income (loss) from
continuing operations
|
|
2
|
%
|
|
3
|
%
|
|
Non-GAAP effective tax rate - Continuing Operations
|
|
20
|
%
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
*Presented on a continuing operations basis
|
|
|
|
Reconciliation of Operating Cash Flow to Free Cash Flow*
|
|
|
|
|
|
Three Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
(In millions)
|
|
Net cash provided by continuing operating activities
|
|
$
|
704
|
|
|
$
|
795
|
|
|
Less: Purchases of property and equipment
|
|
(242
|
)
|
|
(196
|
)
|
|
Free cash flow from continuing operations
|
|
$
|
462
|
|
|
$
|
599
|
|
|
|
|
|
|
|
|
|
|
|
|
*Presented on a continuing operations basis
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151021006626/en/
eBay Inc.
Investor Relations Contact:
Selim Freiha
selim@ebay.com
Tina
Todasco
ttodasco@ebay.com
Media
Relations Contact:
Abby Smith, 408-376-5316
press@ebay.com
Company
News:
https://www.ebayinc.com/stories/news/
Investor
Relations website:
https://investors.ebayinc.com
Source: eBay Inc.
News Provided by Acquire Media