• Income of $2.4 billion, down 5% on an as-reported foundation and down 2% on an FX-Impartial foundation
• Gross Merchandise Quantity of $17.7 billion, down 11% on an as-reported foundation and down 5% on an FX-Impartial foundation
• GAAP and Non-GAAP EPS per diluted share of $(0.13) and $1.00, respectively, on a unbroken operations foundation
• GAAP and Non-GAAP working margin of 23.9% and 28.9%, respectively
• Returned over $421 million to shareholders in Q3, together with $301 million of share repurchases and $120 million paid in money dividends

SAN JOSE, Calif., Nov. 2, 2022 /PRNewswire/ — eBay Inc. (Nasdaq: EBAY), a world commerce chief that connects tens of millions of patrons and sellers all over the world, immediately reported monetary outcomes for its third quarter ended September 30, 2022.

“Our third quarter outcomes reveal important progress towards our long-term goals and exceeded expectations for all key enterprise metrics,” stated Jamie Iannone, Chief Govt Officer at eBay. “I am pleased with our crew and group for remaining resilient within the face of a difficult macroeconomic surroundings. With the investments we have made in our tech-led reimagination, we’re capable of present much more alternative and worth to our clients throughout these tough instances.”

Third Quarter Monetary Highlights

• Income was $2.4 billion, down 5% on an as-reported foundation and down 2% on a overseas trade (FX) impartial foundation.
• Gross Merchandise Quantity (GMV) was $17.7 billion, down 11% on an as-reported foundation and down 5% on an FX-Impartial foundation.
• GAAP internet loss from persevering with operations was $70 million, or $(0.13) per diluted share, primarily pushed by the change in truthful worth of our fairness investments.
• Non-GAAP internet revenue from persevering with operations was $552 million, or $1.00 per diluted share.
• GAAP and Non-GAAP working margin of 23.9% and 28.9%, respectively.
• Generated $735 million of working money circulation and $633 million of free money circulation from persevering with operations.
• Offered eBay’s remaining shares in Adyen for roughly $120 million.
• Returned over $421 million to shareholders, together with $301 million of share repurchases and $120 million paid in money dividends.

Enterprise Highlights

• Lately, eBay accomplished the acquisition of TCGplayer, a number one expertise platform for collectibles and one of many largest on-line marketplaces for buying and selling card video games, for a complete deal worth of as much as roughly $295 million in money. This acquisition enhances eBay’s focus class technique and furthers the corporate’s dedication to buying and selling card fanatics – offering eBay with strategic omnichannel capabilities like order success and cart optimization, sustaining its place as a fascinating platform for buying and selling card sellers and enhancing the general expertise for all clients.
• eBay acquired the myFitment group of corporations, a pacesetter in delivering the instruments and help to assist on-line automotive and powersports components and equipment sellers thrive. myFitment’s expertise and platform gives highly effective, easy-to-use and inexpensive options that may elevate the consumer expertise inside components and equipment, serving to sellers to drive gross sales and keep away from pricey returns.

Income Initiatives

• eBay’s first social gathering promoting merchandise, primarily pushed by Promoted Listings, delivered $249 million of income within the third quarter, up 19% on an as-reported foundation and up 27% on an FX-Impartial foundation.
• The corporate’s complete promoting choices generated over $290 million in income within the third quarter, representing roughly 1.6% of GMV.
• In the course of the quarter, eBay expanded Klarna availability to patrons engaged in cross-border transactions in Germany.
• The corporate introduced sooner cost choices for sellers, enabling on-demand payouts to a debit card inside half-hour or much less for a price.

Tech-Led Reimagination of the Platform

• In collaboration with the Gemological Institute of America (GIA), eBay expanded its Authenticity Assure program to new and pre-owned high-quality jewellery offered for over $500. This marks the growth of eBay’s authentication service to its fifth class, which at present consists of sneakers, watches, purses and buying and selling playing cards.
• eBay up to date its Authenticity Assure service for sneakers, not too long ago increasing this system’s eligibility to extra sneakers, providing new protections for eligible objects, aligning ultimate worth charges and partnering with FedEx to supply free transport labels for sellers to ship sneakers to authentication facilities.
• eBay celebrated the launch of the eBay vault throughout MLB All Star Weekend with the first-ever buying and selling playing cards draft, known as Vault Stars. The occasion introduced collectively baseball personalities, Chase Utley and Alanna Rizzo, as they coached and inspired actor Miles Teller by way of the creation of his final card lineup to ship to the eBay vault. The unique occasion was held in downtown Los Angeles, and garnered greater than 1 billion media impressions.
• To additional the corporate’s advertising efforts round buying and selling playing cards, eBay expanded its presence at New York Comedian Con to showcase the eBay vault and continued Reside Commerce pilots highlighting manufacturers like Funko and Metazoo.
• The corporate continued to extend belief within the Motors Elements & Equipment class, constructing on a number of quarters of enhancements to the P&A fitment expertise like modernizing its taxonomy and integrating fitment-based applied sciences into search, merchandising and promoting suggestions. eBay is now capable of make fitment extra pervasive all through the end-to-end expertise, together with including extremely seen belief alerts all through the customer journey within the U.S. and Canada, and decreasing the variety of steps required to search out components. The corporate additionally expanded adoption of My Storage, resulting in extra customized buying on each go to.
• eBay Motors kicked off a cross-country tour to discover America’s distinctive automobile cultures. The ‘Elements of America’ tour is taking eBay Motors to 12 automotive fanatic occasions throughout the nation — from automobile meets and cruises to tractor pulls and rock crawls. At every cease, eBay Motors options one-of-a-kind automobiles that deliver to life the native automobile tradition and the passionate builders behind these outstanding rides. Up to now, the tour has attracted practically 300,000 attendees and generated greater than 500 million impressions throughout social media and press protection.
• eBay partnered with MTV U.Ok. to revive “Pimp My Experience” — an automotive makeover present from the 2000s — for a six-part YouTube sequence. The collaboration highlights how economical and environmentally pleasant it may be to upcycle and purchase pre-loved automobile components and equipment on eBay.
• The corporate continued to spend money on simplifying the itemizing course of for sellers, not too long ago finishing the migration of all desktop sellers to 1 unified itemizing expertise globally, which eliminates a number of legacy instruments and allows sooner innovation.
• To additional help sellers with constructing their model and growing purchaser engagement, eBay upgraded its video and photograph capabilities. Sellers can now add movies to their storefront and listings to showcase themselves and their merchandise in a brand new, participating approach. eBay additionally elevated the variety of itemizing images from 12 to 24 at no extra price in all classes besides automobiles.
• In the course of the quarter, eBay drove site-wide conversion enhancements on account of expertise investments, together with new AI capabilities in search and web optimization enhancements to drive higher development throughout the platform and improve visibility on search engines like google and yahoo.
• In September, the corporate hosted eBay Open 2022 within the U.S., U.Ok. and Germany to facilitate vendor studying and connections, and to announce new instruments to drive patrons and velocity to listings. Options embody the eBay vault, 3D True View, eBay Reside, the growth of Authenticity Assure, elevated transport choices, images and video upgrades and funds enhancements.

Impression

• eBay introduced the recipients of its third annual Up & Working Grant program, which yearly awards 50 notable U.S. sellers with $10,000 every plus personalized mentorship, coaching and instruments to scale and develop their companies.
• eBay revealed its Southeast Asia Small On-line Enterprise Commerce Report, detailing how small on-line companies throughout six Southeast Asia international locations — Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam — can attain shoppers in a whole lot of export markets every year by way of eBay’s international market.
• By means of World Give, the eBay Basis issued grants to 50 nonprofit organizations that help inclusive entrepreneurship in communities all over the world.
• eBay for Charity contributed greater than $33 million globally throughout the quarter, down 7% year-over-year.

Different Chosen Monetary and Operational Outcomes

• Working margin – GAAP working margin decreased to 23.9% for the third quarter of 2022, in comparison with 26.5% for a similar interval final yr. Non-GAAP working margin decreased to twenty-eight.9% within the third quarter of 2022, in comparison with 31.7% for a similar interval final yr.
• Taxes – The GAAP efficient tax price for persevering with operations for the third quarter of 2022 was (29.9)%, in comparison with 34.7% for the third quarter of 2021. The non-GAAP efficient tax price for persevering with operations for the third quarter of 2022 was 16.5%⁽¹⁾.
• Money circulation – The corporate generated $735 million of working money circulation and $633 million of free money circulation from persevering with operations throughout the third quarter of 2022.
• Capital returns – The corporate repurchased $301 million of its widespread inventory, or practically 7 million shares, within the third quarter of 2022. The corporate’s complete repurchase authorization remaining as of September 30, 2022 was greater than $3.1 billion. The corporate additionally paid money dividends of $120 million throughout the third quarter of 2022.
• Money and money equivalents and non-equity investments – The corporate’s money and money equivalents and non-equity investments portfolio totaled $4.8 billion as of September 30, 2022.

Enterprise Outlook

eBay is offering the next steerage for persevering with operations for the fourth quarter and full yr 2022.

Dividend Declaration

• eBay’s Board of Administrators has declared a money dividend of $0.22 per share of the corporate’s widespread inventory. The dividend is payable on December 16, 2022 to stockholders of document as of December 1, 2022.

Quarterly Convention Name and Webcast

eBay Inc. will host a convention name to debate third quarter 2022 outcomes at 2:00 p.m. Pacific Time immediately. Buyers and members can entry the decision by dialing (888) 655-9638 within the U.S. and (289) 514-2913 internationally. The passcode for the convention line is 7435074. A stay webcast of the convention name, along with a slide presentation that features supplemental monetary info and reconciliations of sure non-GAAP measures to their nearest comparable GAAP measures, might be accessed by way of the corporate’s Investor Relations web site at https://traders.ebayinc.com. As well as, an archive of the webcast might be accessible for at the least three months by way of the identical hyperlink.

eBay Inc. makes use of its Investor Relations web site at https://traders.ebayinc.com as a way of exposing materials personal info and for complying with its disclosure obligations below Regulation FD. Accordingly, traders ought to monitor this web site, along with following our press releases, SEC filings, public convention calls and webcasts.

About eBay

eBay Inc. (Nasdaq: EBAY) is a world commerce chief that connects tens of millions of patrons and sellers in additional than 190 markets all over the world. We exist to allow financial alternative for people, entrepreneurs, companies and organizations of all sizes. Based in 1995 in San Jose, California, eBay is likely one of the world’s largest and most vibrant marketplaces for locating nice worth and distinctive choice. In 2021, eBay enabled over $87 billion of gross merchandise quantity. For extra details about the corporate and its international portfolio of on-line manufacturers, go to www.ebayinc.com.

Presentation

All development charges characterize year-over-year comparisons, besides as in any other case famous. All quantities in tables are offered in U.S. {dollars}, rounded to the closest million, besides as in any other case famous. Because of this, sure quantities could not sum or recalculate utilizing the rounded greenback quantities supplied. References to “income” confer with “internet revenues” as reported within the firm’s consolidated assertion of revenue.

Non-GAAP Monetary Measures

This press launch consists of the next monetary measures outlined as “non-GAAP monetary measures” by the Securities and Trade Fee (SEC): non-GAAP internet revenue, non-GAAP earnings per diluted share, non-GAAP working margin, non-GAAP efficient tax price, free money circulation and FX-Impartial foundation. These non-GAAP monetary measures are offered on a unbroken operations foundation. These measures could also be completely different from non-GAAP monetary measures utilized by different corporations. The presentation of this monetary info, which isn’t ready below any complete set of accounting guidelines or ideas, shouldn’t be supposed to be thought-about in isolation of, or as an alternative to, the monetary info ready and offered in accordance with usually accepted accounting ideas (GAAP). For a reconciliation of those non-GAAP monetary measures, apart from figures on this press launch offered on an “FX-Impartial foundation,” to the closest comparable GAAP measures, see “Enterprise Outlook,” “Non-GAAP Measures of Monetary Efficiency,” “Reconciliation of GAAP Working Margin to Non-GAAP Working Margin,” “Reconciliation of GAAP Internet Revenue to Non-GAAP Internet Revenue and Reconciliation of GAAP Efficient Tax Charge to Non-GAAP Efficient Tax Charge” and “Reconciliation of Working Money Stream to Free Money Stream” included on this press launch. For figures on this press launch reported “on an FX-Impartial foundation,” we calculate the year-over-year influence of overseas forex actions utilizing prior interval overseas forex charges utilized to present yr transactional forex quantities. We outline Natural FX-Impartial income development as reported income development, excluding incremental income from acquisitions or tendencies for the twelve-month interval following such acquisitions or tendencies and overseas trade price results.

Ahead-Trying Statements

This press launch comprises forward-looking statements regarding, amongst different issues, the longer term efficiency of eBay Inc. and its consolidated subsidiaries which might be based mostly on the corporate’s present expectations, forecasts and assumptions and contain dangers and uncertainties. These statements embody, however aren’t restricted to, statements relating to the longer term efficiency of eBay Inc. and its consolidated subsidiaries, together with administration’s imaginative and prescient for the way forward for eBay and our capability to perform our imaginative and prescient, anticipated monetary outcomes for the fourth quarter and full yr 2022 and the longer term development in its enterprise, the results of geopolitical occasions and inflationary stress on our enterprise and operations and our capability to answer such results, working effectivity and margins, reinvestments, dividends and share repurchases. Precise outcomes might differ materially from these predicted or implied and reported outcomes shouldn’t be thought-about as a sign of future efficiency. Different elements that would trigger or contribute to such variations embody, however aren’t restricted to: modifications in political, enterprise and financial circumstances, together with impacts from the continued struggle in Ukraine, rising inflation and rates of interest, decreases in shopper confidence, the results of COVID-19 on our enterprise and operations and on the final economic system, together with results on our sellers and clients, any regional or normal financial downturn or disaster and any circumstances that have an effect on e-commerce development or cross-border commerce; the corporate’s capability to understand anticipated development alternatives in funds intermediation and promoting; fluctuations in overseas forex trade charges; the corporate’s have to efficiently react to the growing significance of cellular commerce and the growing social facet of commerce; an more and more aggressive surroundings for its enterprise; modifications to the corporate’s capital allocation, together with the timing, declaration, quantity and cost of any future dividends or ranges of the corporate’s share repurchases, or administration of working money; the corporate’s capability to extend working effectivity to drive margin enhancements and allow reinvestments; the corporate’s capability to handle its indebtedness, together with managing publicity to rates of interest and sustaining its credit score scores; the corporate’s have to handle a big enterprise with a broad vary of companies of various levels of maturity and in many various geographies; the flexibility to efficiently intermediate funds on our market platform; the corporate’s want and talent to handle regulatory, tax, information safety and litigation dangers; the corporate’s capability to well timed improve and develop its expertise techniques, infrastructure and customer support capabilities at affordable price whereas sustaining website stability and efficiency and including new merchandise and options; and the corporate’s capability to combine, handle and develop companies which have been acquired or could also be acquired sooner or later.

The forward-looking statements on this launch don’t embody the potential influence of any acquisitions or divestitures that could be introduced and/or accomplished after the date hereof.

Extra details about elements that would have an effect on the corporate’s working outcomes is included below the captions “Danger Components” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” within the firm’s most up-to-date Annual Report on Kind 10-Ok and subsequent quarterly stories on Kind 10-Q, copies of which can be obtained by visiting the corporate’s Investor Relations web site at https://traders.ebayinc.com or the SEC’s web site at www.sec.gov. Undue reliance shouldn’t be positioned on the forward-looking statements on this press launch, that are based mostly on info obtainable to the corporate on the date hereof. The corporate assumes no obligation to replace such statements.

eBay Inc.
Enterprise Outlook

The steerage figures supplied beneath and elsewhere on this press launch are forward-looking statements, replicate numerous estimates, assumptions and different uncertainties, and are approximate in nature as a result of the corporate’s future efficiency is tough to foretell. Income steerage is supplied on an FX-Impartial foundation and excludes incremental income from acquisitions or tendencies for the twelve-month interval following such acquisitions or tendencies. Such steerage relies on info obtainable on the date of this press launch, and the corporate assumes no obligation to replace it.

The corporate’s future efficiency includes dangers and uncertainties, and the corporate’s precise outcomes might differ materially from the data beneath and elsewhere on this press launch. A few of the elements that would have an effect on the corporate’s working outcomes are set forth below the caption “Ahead-Trying Statements” above on this press launch. Extra details about elements that would have an effect on the corporate’s working outcomes is included below the captions “Danger Components” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” in its most up-to-date annual report on Kind 10-Ok and subsequent quarterly stories on Kind 10-Q, copies of which can be obtained by visiting eBay’s investor relations web site at https://traders.ebayinc.com or the SEC’s web site at www.sec.gov.

eBay Inc.

eBay Inc.
Non-GAAP Measures of Monetary Efficiency 

To complement the corporate’s condensed consolidated monetary statements offered in accordance with usually accepted accounting ideas, or GAAP, the corporate makes use of non-GAAP measures of sure parts of economic efficiency. These non-GAAP measures embody non-GAAP internet revenue, non-GAAP earnings per diluted share, non-GAAP working margin, non-GAAP efficient tax price, free money circulation and figures on this press launch offered on an “FX-Impartial foundation.” These non-GAAP monetary measures are offered on a unbroken operations foundation.

These non-GAAP measures aren’t in accordance with, or a substitute for, measures ready in accordance with GAAP and could also be completely different from non-GAAP measures utilized by different corporations. As well as, these non-GAAP measures aren’t based mostly on any complete set of accounting guidelines or ideas. Non-GAAP measures have limitations in that they don’t replicate all the quantities related to the corporate’s outcomes of operations as decided in accordance with GAAP. These measures ought to solely be used to guage the corporate’s outcomes of operations together with the corresponding GAAP measures.

Reconciliation to the closest GAAP measure of all non-GAAP measures included on this press launch, apart from figures on this press launch offered on an “FX-Impartial foundation,” might be discovered within the tables included on this press launch. For figures on this press launch reported “on an FX-Impartial foundation,” the corporate calculates the year-over-year influence of overseas forex actions utilizing prior interval overseas forex charges utilized to present yr transactional forex quantities. The corporate defines natural FX-Impartial income development as reported income development, excluding incremental income from acquisitions or tendencies for the twelve-month interval following such acquisitions or tendencies and overseas trade price results.

These non-GAAP measures are supplied to boost traders’ total understanding of the corporate’s present monetary efficiency and its prospects for the longer term. Particularly, the corporate believes the non-GAAP measures present helpful info to each administration and traders by excluding sure bills, positive factors and losses, or internet purchases of property and gear, because the case could also be, that is probably not indicative of its core working outcomes and enterprise outlook. As well as, as a result of the corporate has traditionally reported sure non-GAAP outcomes to traders, the corporate believes that the inclusion of non-GAAP measures gives consistency within the firm’s monetary reporting.

For its inner budgeting course of, and as mentioned additional beneath, the corporate’s administration makes use of monetary measures that don’t embody stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible belongings, impairment of goodwill, amortization of deferred tax belongings related to the realignment of its authorized construction and associated overseas trade results, important positive factors or losses from the disposal/acquisition of a enterprise, sure positive factors and losses on investments together with modifications in truthful worth, modifications in overseas forex trade charges and the influence of any associated overseas trade by-product devices, positive factors or losses related to a warrant settlement that the corporate entered into with Adyen, restructuring-related costs and the revenue taxes related to the foregoing. Along with the corresponding GAAP measures, the corporate’s administration additionally makes use of the foregoing non-GAAP measures in reviewing the monetary outcomes of the corporate.

The corporate excludes the next objects from non-GAAP internet revenue, non-GAAP earnings per diluted share, non-GAAP working margin and non-GAAP efficient tax price:

Inventory-based compensation expense and associated employer payroll taxes. This expense consists of bills for inventory choices, restricted inventory and worker inventory purchases. The corporate excludes stock-based compensation expense from its non-GAAP measures primarily as a result of they’re non-cash bills that administration doesn’t consider are reflective of ongoing working outcomes. The associated employer payroll taxes are depending on the corporate’s inventory value and the vesting of restricted inventory by workers and the timing and measurement of inventory choice workouts, over which administration has restricted to no management, and as such administration doesn’t consider it correlates to the corporate’s operation of the enterprise.

Amortization or impairment of acquired intangible belongings, impairment of goodwill, sure amortization of deferred tax belongings and associated overseas trade results, important positive factors or losses and transaction bills from the acquisition or disposal of a enterprise and sure positive factors or losses on investments. The corporate incurs amortization or impairment of acquired intangible belongings and goodwill in reference to acquisitions and should incur important positive factors or losses from the acquisition or disposal of a enterprise and subsequently excludes these quantities from its non-GAAP measures. The corporate additionally excludes sure positive factors and losses on investments. The corporate excludes the non-cash amortization of deferred tax belongings related to the realignment of its authorized construction, which isn’t lowered by the results of the Tax Cuts and Jobs Act, and associated overseas trade results. The corporate excludes these things as a result of administration doesn’t consider they correlate to the continued working outcomes of the corporate’s enterprise.

Restructuring. These costs include bills for worker severance and different exit and disposal prices. The corporate excludes important restructuring costs primarily as a result of administration doesn’t consider they’re reflective of ongoing working outcomes.

Different sure important positive factors, losses, or costs that aren’t indicative of the corporate’s core working outcomes. These are important positive factors, losses, or costs throughout a interval which might be the results of remoted occasions or transactions which haven’t occurred ceaselessly prior to now and aren’t anticipated to happen usually or be repeated sooner or later. The corporate excludes these quantities from its outcomes primarily as a result of administration doesn’t consider they’re indicative of its present or ongoing working outcomes. These quantities embody modifications in truthful worth and the associated change in overseas forex trade charges of fairness securities with readily determinable truthful values, globally.

Change in truthful market worth of warrant. These are positive factors or losses related to a warrant settlement that the corporate entered into with Adyen, that are attributable to modifications in truthful worth throughout the interval.

Revenue tax results and changes. We use a non-GAAP tax price for evaluating our working outcomes. Based mostly on our present long-term projections, we’re utilizing a non-GAAP tax price of 16.5%. This non-GAAP tax price might change for numerous causes together with important modifications in our geographic earnings combine or basic tax regulation modifications in main jurisdictions through which we function.

Along with the non-GAAP measures mentioned above, the corporate additionally makes use of free money circulation. Free money circulation represents working money flows much less purchases of property and gear. The corporate considers free money circulation to be a liquidity measure that gives helpful info to administration and traders about the amount of money generated by the enterprise after the purchases of property, buildings, and gear, which may then be used to, amongst different issues, spend money on the corporate’s enterprise, make strategic acquisitions, repurchase inventory and pay dividends. A limitation of the utility of free money circulation as a measure of economic efficiency is that it doesn’t characterize the overall improve or lower within the firm’s money stability for the interval.

SOURCE eBay Inc.