Ebay Inc. · NASDAQ:EBAY
Ebay — Q1 2021 Earnings Presentation
23 slides from Ebay's earnings presentation, Apr 28, 2021
Slide 1: Q1 2021 Financial Highlights
Q1 2021 FINANCIAL HIGHLIGHTS April 28, 2021
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: CFO Comments
CFO COMMENTS
Slide 4: Q1 Highlights
Q1 HIGHLIGHTS * Revenue of $3.0B, up 42% Y/Y (+38% Y/Y FX-Neutral) * GAAP EPS of $0.82 and Non-GAAP EPS of $1.09 ¢ GAAP operating margin of 28%, up Ipt Y/Y * Non-GAAP operating margin of 33%, up Ipt Y/Y * Generated $938M of Operating Cash Flow and $855M of Free Cash Flow * Returned $414M to sharehol
Slide 5: Trailing twelve month growth (millions)
(millions) Q419 Q120 Q2 20 Q3 20 Q4 20 Qi 21 TI2M Y/Y Growth 2% 2% 5% 5% 7% 7% All reported results are from continuing operations
Slide 6: GMV
GMV ($ millions) 21,966 21,259 27,135 25,049 26,558 27,460 + QIB2C GMV up 21% Y/Y and C2C GMV up 34% Y/Y on an FX- Neutral Basis Int’! US Q419 Q120 Q2 20 Q3 20 Q4 20 Qi 21 US Y/Y Growth (9% (4)% 35% 33% 25% 36% Int'l FX-Neutral Y/Y Growth (1)% 3% 26% 14% 15% 17% Total FX-Neutral Y/Y Growth (4)% 0% 2
Slide 7: Revenue
REVENUE ($ millions) 2,236 2,129 2,668 2,606 2,868 3,023 MS&O Transaction Q419 Q120 Q2 20 Q3 20 Q420 Y/Y Growth (3)% (1)% 24% 25% 28% FX-Neutral Y/Y Growth — (1)% 1% 26% 25% 28% Organic FX-Neutral Y/Y Growth 0% 3% 28% 26% 28% Trxn Take Rate 9.0% 8.9% 9.0% 9.4% 9.8% 7 Calculation of total Revenue and
Slide 8: Non-GAAP Expenses
NON-GAAP EXPENSES (% of revenue) Cost of Revenue Sales & Marketing panne 26.9% 23.7% 22.0% Ql20 Ql2i Ql20 Qi2i Payments & KO IP, Volume & take rate G leverage, partially Partially offset by 4 offset by vertical volume & take rate 9 A leverage investments, online spend & FX 8 Reconciliation of Non-GA
Slide 9: Non-GAAP EPS
NON-GAAP EPS Q3 20 Q4 20 Non-GAAP EPS Y/Y Growth “ 64% 31% Non-GAAP Operating Margin GAAP EPS GAAP EPS Y/Y Growth “ 9 Reconciliation of Non-GAAP EPS and Non-GAAP Operating Margin is included in the Appendix of this presentation; * 2018 consolidated financials statements not adjusted to reflect Class
Slide 10: Free Cash Flow
FREE CASH FLOW ($ millions) * QIFCF up 65% Y/Y primarily driven by higher earnings, increased working capital, and lower CapEx Q419 Q120 Q2 20 Q3 20 Q420 Qi21 Y/Y Growth “* 59% 81% (18)% 27% 65% CapEx % of Revenue 6% 5% 4% 5% 6% 3% FCF % of Revenue 25% 24% 31% 22% 25% 28% 10 Calculation of Free Cash
Slide 11: 2021 Cash & Debt
2021 CASH & DEBT ($ billions) - Preserve financial flexibility to execute on strategy and drive long-term value creation + Drive organic growth while balancing profitability Debt Net Debt + Supplement organic growth with disciplined acquisitions and investments QI 21 Ending Cash and Investments * Op
Slide 12: Investments
INVESTMENTS ADEVINTA ADYEN Deal announced in July 2020 and expected to close in + Warrant acquired in Q2 2018, with a term of 7 years Q2 2021, subject to regulatory approvals * Value as of March 31, 2021 of $1.0B * Value as of April 27, 2021 of $12.7B + Based on probability of delivering against 4 *
Slide 13: Guidance
GUIDANCE F221 Q2 Guidance Context Lo High + Revenue growth driven by: * Ongoing strong execution in managed payments, Revenue $2.98 $3.03 advertising and business initiatives 5 + Partially offset by high negative single-digit to low ANE raTt % 4% negative double-digit volume decline driven by prior
Slide 14: Q&A
QSA
Slide 15: Reconciliations
RECONCILIATIONS
Slide 16: GAAP to Non-GAAP Quarterly Reconciliations
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS OPERATING MARGIN GAAP operating income Stock-based compensation expense and related employer payroll taxes Amortization of acquired intangible assets within cost of net revenues ‘Amortization of acquired intangible assets within operating expenses Other sig
Slide 17: GAAP to Non-GAAP Quarterly Reconciliations
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS NET INCOME / EPS GAAP Income from continuing operations Stock-based compensation expense and related employer payroll taxes Amortization of acquired intangible assets within cost of net revenues Amortization of acquired intangible assets within operating ex
Slide 18: GAAP to Non-GAAP Quarterly Reconciliations
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS STATEMENT OF INCOME Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Reported Non-GAAP Entries. Non-GAAP Reported Non-GAAP Entries. Non-GAAP (in millions, except per share data and percentages) Net revenues $ 3,023 $ - $ 3,023 $ 2129 $ 2
Slide 19: Calculation of Free Cash Flow
CALCULATION OF FREE CASH FLOW Net cash provided by continuing operating activities Less: Purchases of property and equipment, net Free cash flow from continuing operations v9 ‘Three months ended December 31, March 31, June 30, September 30, December 3i, March 31, 2019 2020 2020 2020 2020 2021 (in mi
Slide 20: Reconciliation of Total Revenue
RECONCILIATION OF TOTAL REVENUE Net Revenues by Type Net Transaction Revenues” Marketing services and other revenues Total net revenues”) (1) Hedge gain/(loss) (2) Foreign currency impact 20 Three months ended December 31, March 31, June 30, September 30, December 31, March 31, 2019 2020 2020 2020 2
Slide 21: Reconciliation of Organic FX-Neutral Revenue
RECONCILIATION OF ORGANIC FX-NEUTRAL REVENUE ‘As Reported Revenue Growth Acquisition/Disposition Impact Foreign Currency Impact Organic FX-Neutral Revenue Y/Y Growth a Three months ended December 3I, March 3, ‘June 30, September 30, December 31, March 31, 2019 2020 2020 2020 2020 2021 (3)% ()% 24% 2
Slide 22: GAAP to Non-GAAP Reconciliations: Guidance
GAAP TO NON-GAAP RECONCILIATIONS GUIDANCE 22 Three Months Ending June 30, 2021 (in billions, except per share amounts) GAAP Non-GAAP (a) Net Revenue $2.98 - $3.03 $2.98 - $3.03 Diluted EPS $0.67 - $0.72 $0.91 - $0.96 (a) Estimated non-GAAP amounts above for the three months ending June 30, 2021 refl
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