Slide 1: Business & Financial Highlights Q2'22
BUSINESS & FINANCIAL HIGHLIGHTS Q2’22 August 3, 2022
Slide 2: Disclosures
Disclosures This presentation contains non-GAAP measures relating to our performance. You can find the reconciliation of these measures, except for FX-Neutral basis, to the nearest comparable GAAP measures in the appendix at the end of this presentation. All growth rates represent year-over-year com
Slide 3: Business Highlights
Business Highlights
Slide 4: Q2 Highlights
BUSINESS Q2 Highlights $18.5 Billion HIGHLIGHTS Gross Merchandise Volume Q2’22 $2.4 Billion Revenue 28.7% Non-GAAP Operating Margin $0.99 Non-GAAP EPS 17 Million Enthusiast Buyers* © 2022 eBay. All rights reserved. * Enthusiast Buyers are defined as buyers with at least 6 purchase days and $800+ ann
Slide 5: Focus Categories Highlights
BUSINESS Focus Categories Highlights HIGHLIGHTS Q2’22 Motors P&A eBay Refurb Handbags Jewelry Expanded Increased seller Authentication Initial launch of fitment & supply base & expanded expansion to Authentication in categories Germany the US © 2022 eBay. All rights reserved. 5
Slide 6: Innovation Highlights
BUSINESS Innovation Highlights HIGHLIGHTS Q2’22 Expanded NFT eBay Vault Live Commerce Capabilities © 2022 eBay. All rights reserved. 6
Slide 7: Payments & Ads Highlights
BUSINESS Payments & Ads Highlights HIGHLIGHTS Q2’22 1P Ads: Pay Upon Invoice & Buyer FX: New +20pts vs. GMV Installments Payment & Currency Options © 2022 eBay. All rights reserved. 7
Slide 8: © 2022 eBay. All rights reserved.
© 2022 eBay. All rights reserved. 8
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Q2'22 Results
FINANCIAL Q2’22 Results HIGHLIGHTS Q2’22 Guidance Actuals GMV $18.02 - $18.42 $18.5 (in billions) (20)% - (18)% spot (18)% spot (16)% - (14)% FXN (14)% FXN Revenue $2.35 - $2.40 $2.42 (in billions) (12)% - (10)% spot (9)% spot (9)% - (7)% FXN (6)% FXN Non-GAAP Op Margin 26.5% - 27.5% 28.7% Non-GAAP
Slide 11: GMV
FINANCIAL GMV HIGHLIGHTS ($ billions, Y/Y FXN growth) Q2’22 Int’l Mobility restrictions, US stimulus 24.1 28% 22.6 (11)% 20.7 19.9 (11)% 19.4 (12)% (17)% 18.5 (14)% 13.3 22% 12.3 (15)% 10.6 11.0 (17)% 10.1 9.5 (14)% (20)% (15)% 10.8 10.3 9.7 36% (6)% 9.3 9.3 9.0 (8)% (2)% (14)% (13)% Q1 21 Q2 21 Q3
Slide 12: Revenue
FINANCIAL Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) Q2’22 Transaction revenue Mobility restrictions, MS&O revenue stimulus 2,638 2,668 2,613 11% 2,501 42% 5% 2,483 2,422 10% (5)% (6)% 2,476 2,496 2,450 2,350 2,355 2,297 162 172 151 163 128 125 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Trxn Take Rate
Slide 13: Advertising Revenue
FINANCIAL Advertising Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) Q2’22 1P Ads Revenue Mobility restrictions, 3P Ads Revenue stimulus 279 285 277 0% 275 37% 6% 267 4% 253 (2)% 1% 226 228 232 57% 4% 225 232 9% 209 2% 6% 8% 53 49 44 53 42 43 (11)% (8)% (22)% (15)% (18)% (9)% Q1 21 Q2 21 Q3 21 Q4 2
Slide 14: Non-GAAP Expenses
FINANCIAL Non-GAAP Expenses HIGHLIGHTS (% of revenue) Q2’22 Operating Expense at ~44.5%, up ~2pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 24.7% 26.8% 20.0% 22.1% 11.1% 11.3% 7.5% 7.6% 3.8% 3.5% Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 Q2 21
Slide 15: Non-GAAP Operating Income & Margin
FINANCIAL Non-GAAP Operating Income & Margin HIGHLIGHTS ($ millions) Q2’22 Non-GAAP operating margin Mobility restrictions, Non-GAAP operating income stimulus 985 876 826 805 792 694 37.3% 32.8% 32.4% 31.7% 31.6% 28.7% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 © 2022 eBay. All rights reserved. Reconciliat
Slide 16: Earnings Per Share
FINANCIAL Earnings Per Share HIGHLIGHTS Q2’22 Non-GAAP EPS Y/Y Growth Mobility restrictions, Non-GAAP EPS stimulus $1.08 $1.05 $1.05 $0.99 $0.99 61% $0.90 24% 9% 0% (2)% 0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 GAAP EPS $0.82 $0.43 $0.43 $(1.47) $(2.28) $(0.96) GAAP Y/Y 47% (56)% (50)% ** ** ** © 2022
Slide 17: Free Cash Flow
FINANCIAL Free Cash Flow HIGHLIGHTS ($ millions) Q2’22 Y/Y Growth Higher op income & Free Cash Flow one-time payments WC* benefit 910 865 77% 546 502 466 7% 372 (4)% (45)% (49)% (37)% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 CapEx % of Rev 3% 4% 6% 4% 3% 5% FCF % of Rev 33% 34% 20% 14% 22% 19% © 2022 eBa
Slide 18: Cash & Debt
FINANCIAL Cash & Debt HIGHLIGHTS ($ billions) Q2’22 Targets • Maintain current BBB+ rating • Targeting mid-term leverage of approximately 1.5x $4.5 net debt and gross debt below 3.0x EBITDA Debt Net Debt • Long-term cash and investment balance of approximately $3.5B Q2 22 Ending Cash and Investments
Slide 19: Capital Returns
FINANCIAL Capital Returns HIGHLIGHTS ($ millions) Q2’22 Dividend $3.4B repurchase authorization remaining as of June 30, 2022 Stock repurchases 3,107 107 2,366 116 1,621 121 3,000 1,379 1,413 129 121 2,250 1,500 414 1,250 1,292 122 292 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Avg Diluted Shares* 693 685
Slide 20: Investments
FINANCIAL Investments HIGHLIGHTS Q2’22 $2.9B $0.3B* $0.1B $0.5B Adevinta Adyen Kakao Bank Gmarket 405M shares** 66K shares + warrant** 5.4M shares** 19.99% private stake** 33% current ownership Sold 65K shares in Sold 7.3M shares in Value assessed based Q2’22 for $129M Q2’22 for $242M on the fair va
Slide 21: Full Year 2022 Guidance
FINANCIAL Full Year 2022 Guidance HIGHLIGHTS Q2’22 Guidance Context GMV $72.7 - $74.7 • 2022 impacted by lapping & macro headwinds: • Tougher comps due to mobility restrictions and (in billions) (17)% - (15)% spot stimulus in H1’21 (12)% - (10)% FXN • Macro headwinds, including war impact, inflation
Slide 22: Q3'22 Guidance
FINANCIAL Q3’22 Guidance HIGHLIGHTS Q2’22 Guidance Context GMV $17.0 - $17.6 • Volume driven by: • Macro headwinds, including war impact, (in billions) (15)% - (12)% spot inflation, supply chain challenges, and (9)% - (6)% FXN consumer confidence • Revenue driven by volume dynamics offset by: Revenu
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: GAAP to Non-GAAP Quarterly Reconciliations: Operating Margin
GAAP to Non-GAAP Quarterly Reconciliations Operating Margin
Slide 26: GAAP to Non-GAAP Quarterly Reconciliations: Net Income / EPS
GAAP to Non-GAAP Quarterly Reconciliations Net Income / EPS
Slide 27: Earnings Per Share, Non-GAAP to GAAP Recon
Earnings Per Share, Non-GAAP to GAAP Recon $0.99 $(1.61) $(0.18) $(0.16) $(0.96) Non-GAAP EPS Investments Stock-based Tax rate / Other GAAP EPS compensation All reported results are from continuing operations
Slide 28: GAAP to Non-GAAP Quarterly Reconciliations: Statement of Income
GAAP to Non-GAAP Quarterly Reconciliations Statement of Income
Slide 29: Calculation of Free Cash Flow
Calculation of Free Cash Flow
Slide 30: Reconciliation of Total Revenue
Reconciliation of Total Revenue
Slide 31: Reconciliation of Organic FX-Neutral Revenue
Reconciliation of Organic FX-Neutral Revenue
Slide 32: Calculation of Period-End Fully Diluted Share Count
Calculation of Period-End Fully Diluted Share Count
Slide 33: GAAP to Non-GAAP Reconciliations: Guidance
GAAP to Non-GAAP Reconciliations Guidance
Slide 34: Slide 34