Slide 1: Business & Financial Highlights Q2'23
BUSINESS & FINANCIAL HIGHLIGHTS Q2’23 July 26, 2023
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: Reinvent the future of ecommerce for enthusiasts – only at eBay
BUSINESS HIGHLIGHTS Q2’23 WHERE WE ARE GOING Reinvent the future of ecommerce for enthusiasts – only at eBay ©©2022 2023 eBay. Allrights eBay. All rights reserved. reserved. 4
Slide 5: Our Strategy Will Focus on Three Key Pillars
Our Strategy Will Focus on Three Key Pillars eBay International Shipping Relevant Experiences Scalable Solutions Magical Innovations © 2023 eBay. All rights reserved. © 2022 eBay. All rights reserved. 5
Slide 6: Q2 Highlights
BUSINESS Q2 Highlights $18.2 Billion HIGHLIGHTS Gross Merchandise Volume Q2’23 $2.5 Billion Revenue 26.9% Non-GAAP Operating Margin $1.03 Non-GAAP EPS 16 Million Enthusiast Buyers* ©©2022 2023 eBay. Allrights eBay. All rights reserved. reserved. * Enthusiast Buyers are defined as buyers with at leas
Slide 7: Focus Categories Continue to Drive Growth
BUSINESS Focus Categories Continue to Drive Growth HIGHLIGHTS Q2’23 Parts & Accessories Authenticity Guarantee Shop by Upgrade Grew mid-single digits Expanded to Streetwear in YoY for the second straight the US for 20 trusted mass quarter appeal brands Certified by Brand Acquisition of Certilogo Lau
Slide 8: Magical Listing Experience Powered by AI
BUSINESS International Magical Listing Experience Powered by AI HIGHLIGHTS Q2’23 Shipping ~30% of users tried the feature 90%+ acceptance rate of AI-generated descriptions Use AI description 80%+ customer satisfaction ©©2022 2023 eBay. Allrights eBay. All rights reserved. reserved. 8
Slide 9: Financial Highlights
Financial Highlights
Slide 10: Q2'23 Results
FINANCIAL Q2’23 Results HIGHLIGHTS Q2’23 Guidance Actuals GMV $17.8 - $18.2 $18.2 (in billions) (4)% - (2)% spot (4)% - (1)% FXN (2)% spot (1)% FXN (5)% - (2)% organic FXN (1)% organic FXN Revenue $2.47 - $2.54 $2.54 (in billions) 2% - 5% spot 2% - 5% FXN 5% spot 6% FXN 1% - 4% organic FXN 5% organi
Slide 11: GMV
FINANCIAL GMV HIGHLIGHTS ($ billions, Y/Y FXN growth) Q2’23 Int’l US 19.4 (17)% 18.5 18.2 18.4 18.2 (14)% 17.7 (6)% (2)% (1)% (5)% 10.1 9.5 9.3 9.4 9.5 (20)% (15)% 9.0 (1)% (4)% (4)% 1% 9.3 9.0 8.7 8.9 9.0 8.7 (14)% (13)% (7)% (9)% (3)% (3)% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Organic FXN (17)% (14)
Slide 12: Revenue
FINANCIAL Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) Net rev take rate Q2’23 Net revenue 2,483 2,510 2,510 2,540 (5)% 2,422 2,380 (1)% 3% 6% (6)% (2)% 13.4% 13.8% 13.6% 13.9% 12.8% 13.1% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Organic FXN (5)% (6)% (2)% (1)% 2% 5% ©©2022 2023 eBay. Allrights eBay.
Slide 13: Advertising Revenue
FINANCIAL Advertising Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) 1P Ads Revenue Q2’23 3P Ads Revenue 367 35% 319 317 19% 23% 290 267 275 22% 4% (2)% 341 276 285 49% 232 249 27% 225 27% 31% 2% 6% 42 43 41 43 32 26 (18)% (9)% (3)% (16)% (23)% (39)% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 1P vs. GMV +
Slide 14: Non-GAAP Expenses
FINANCIAL Non-GAAP Expenses HIGHLIGHTS (% of revenue) Q2’23 Operating Expense at ~45.5%, up 1.0pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 26.8% 27.6% 22.1% 21.3% 11.3% 12.5% 7.6% 8.2% 3.5% 3.5% Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 2
Slide 15: Non-GAAP Operating Income & Margin
FINANCIAL Non-GAAP Operating Income & Margin HIGHLIGHTS ($ millions) Q2’23 Non-GAAP operating margin Non-GAAP operating income 805 750 744 694 690 684 32.4% 29.9% 29.6% 28.7% 28.9% 26.9% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 ©©2022 2023 eBay. Allrights eBay. All rights reserved. reserved. Reconciliati
Slide 16: Earnings Per Share
FINANCIAL Earnings Per Share HIGHLIGHTS Q2’23 Non-GAAP EPS Y/Y Growth Non-GAAP EPS $1.11 $1.05 $1.07 $1.00 $1.03 $0.99 11% 5% 5% 2% (2)% 0% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 GAAP EPS $(2.28) $(0.96) $(0.13) $1.23 $1.05 $0.32 GAAP Y/Y ** ** ** ** ** ** ©©2022 2023 eBay. Allrights eBay. All rights r
Slide 17: Free Cash Flow
FINANCIAL Free Cash Flow HIGHLIGHTS ($ millions) Q2’23 Y/Y Growth Free Cash Flow 709 633 546 533 43% 492 466 26% 30% 6% (37)% (49)% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 CapEx % of Rev 3% 5% 4% 6% 5% 4% FCF % of Rev 22% 19% 27% 21% 28% 19% ©©2022 2023 eBay. Allrights eBay. All rights reserved. reserve
Slide 18: Cash & Debt
FINANCIAL Cash & Debt HIGHLIGHTS ($ billions) Q2’23 Targets • Maintain current BBB+ rating $5.3 • Targeting mid-term leverage of approximately 1.5x net debt and gross debt below 3.0x EBITDA Debt Net Debt • Long-term cash and investment balance of approximately $3.5B Q2 23 Ending Cash and Investments
Slide 19: Capital Returns
FINANCIAL Capital Returns HIGHLIGHTS ($ millions) Q2’23 Dividend Approximately $2.3B repurchase authorization remaining as of June 30, 2023 Stock repurchases 1,379 1,413 129 121 1,250 1,292 421 419 384 383 120 119 134 133 301 300 250 250 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Avg Diluted Shares* 593 56
Slide 20: Investments
FINANCIAL Investments HIGHLIGHTS Q2’23 $2.7B $0.3B $0.1B $0.4B Adevinta Adyen warrant Kakao Bank Gmarket 404M shares Warrant acquired in 5.4M shares 19.99% private stake Q2’18 (7 yr term, up to 33% current ownership 5% ownership) Value assessed based on the fair value option Must maintain 25% Warran
Slide 21: Q3'23 Guidance
FINANCIAL Q3’23 Guidance HIGHLIGHTS Q2’23 Guidance Context GMV $17.6 - $18.0 • Volume driven by: • Macro headwinds, including inflationary (in billions) (1)% - 2% spot (3)% - (1)% FXN pressures and rising interest rates (4)% - (1)% organic FXN • Offset by focus category execution & horizontal innova
Slide 22: FY'23 Context
FINANCIAL FY’23 Context HIGHLIGHTS Q2’23 Planning Assumptions • Total FX-Neutral Y/Y GMV growth of (2)% - (1)% for the full year GMV / • ~0.5 pt FX tailwind on Y/Y GMV growth in 2023 (at current rates) Revenue • Revenue growth expected to outpace GMV growth by ~4.5 pts on a spot basis • Full year no
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 © 2023 eBay. All rights reserved.
Slide 26: GAAP to Non-GAAP Quarterly Reconciliations: Net Income / EPS
GAAP to Non-GAAP Quarterly Reconciliations Net Income / EPS © 2023 eBay. All rights reserved.
Slide 27: Earnings Per Share, Non-GAAP to GAAP Recon
Earnings Per Share, Non-GAAP to GAAP Recon $(0.32) $(0.18) $1.03 $(0.21) $0.32 Non-GAAP EPS Investments* Stock-based Tax rate / Other GAAP EPS compensation* © 2023 eBay. All rights reserved. All reported results are from continuing operations * “Investments” includes gains or losses on investments,
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 © 2023 eBay. All rights reserved.
Slide 30: Reconciliation of Total Revenue
Reconciliation of Total Revenue © 2023 eBay. All rights reserved.
Slide 31: Reconciliation of Organic FX-Neutral Revenue
Reconciliation of Organic FX-Neutral Revenue © 2023 eBay. All rights reserved.
Slide 32: Calculation of Period-End Fully Diluted Share Count
Calculation of Period-End Fully Diluted Share Count © 2023 eBay. All rights reserved.
Slide 33: GAAP to Non-GAAP Reconciliations: Guidance
GAAP to Non-GAAP Reconciliations Guidance © 2023 eBay. All rights reserved.
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