Slide 1: Q4 2020 Financial Highlights
Q4 2020 FINANCIAL HIGHLIGHTS February 3, 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: Q4 Highlights
Q4 HIGHLIGHTS * Revenue of $2.9B, up 28% Y/Y (+28% Y/Y Organic FX-Neutral) * GAAP EPS of $1.12 and Non-GAAP EPS of $0.86 ¢ GAAP operating margin of 24%, up 3pts Y/Y ¢ Non-GAAP operating margin of 28%, flat Y/Y * Generated $883M of Operating Cash Flow and $715M of Free Cash Flow * Returned $529M to s
Slide 5: Active Buyers
ACTIVE BUYERS (millions) Q319 Q419 Ql 20 Q2 20 Q3 20 Q420 712M Y/Y Growth 4% 2% 2% 5% 5% 7% 5 _Allreported resuts are from continsing operations
Slide 6: GMV
GMV ($ millions) 20,489 Int’l US Q319 US Y/Y Growth (6)% Int’ FX-Neutral Y/Y Growth 1% Total FX-Neutral Y/Y Growth (2)% Sold Items Y/Y Growth (3% 82C = Business to Consumer sellers; C2C = Consumer to Consumer sellers All reported results are from continuing operations 21,966 Q419 (9% (% (4)% (4)% 21
Slide 7: Revenue
REVENUE ($ millions) 2,083 2,236 2,129 2,668 2,606 2,868 + Q4 FX-Neutral Transaction Revenue up 31% Y/Y... MSSO accelerating 3pts Q/Q * Q4FxX-Neutral MS&O Revenue up 3% Y/Y... accelerating 4pts Q/Q Transaction + FY 20 Total Revenue $10.38 ... FX-Neutral growth 20% Y/Y Q319 Q419 Ql20 Q220 Q320 Q420 Y
Slide 8: Non-GAAP Expenses
NON-GAAP EXPENSES (% of revenue) Operating Expense at 46.4%, down ~Ipts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 24.3% 25.5% 27.6% 271% 8.9% 8.9% 8.2% 75% 3.1% 3.0% Q419 Q420 Q419 Q420 Q419 Q420 Q419 Q420 Q419 Q420 Volume leverage Payments and KO o
Slide 9: Non-GAAP EPS
NON-GAAP EPS + Q4 Non-GAAP Operating Margin up 20bps Y/Y, driven by volume leverage and Advertising growth, partially offset by reinvestments and FX + Q4 Non-GAAP EPS Y/Y $0.85 growth driven by higher revenue and net $0.66 $0.69 benefit of share repurchases, partially offset by higher tax rate and i
Slide 10: Free Cash Flow
FREE CASH FLOW ($ millions) * Q4 FCF up 27% Y/Y primarily driven by higher earnings + FY 20 FCF $2.7B + FY 20 CapEx 5% of Revenue Q319 Q419 Qi 20 Q2 20 Q3 20 Q420 Y/Y Growth = es 59% 81% (18)% 27% CapEx % of Revenue 4% 6% 5% 4% 5% 6% FCF % of Revenue 34% 25% 24% 31% 22% 25% 10 Calculation of Free Ca
Slide 11: 2020 Cash & Debt
2020 CASH & DEBT + Preserve financial flexibility to execute on strategy and drive long-term value creation * Drive organic growth while balancing profitability iis aot + Supplement organic growth with disciplined acquisitions and investments Q4 20 Ending Cash and Investments* + Optimize financial f
Slide 12: Investments
INVESTMENTS ADEVINTA ADYEN + Deal announced in July 2020 and expected to close in QI 2021, subject to regulatory approvals Warrant acquired in Q2 2018, with a term of 7 years Value as of December 31, 2020 of $1.1B + Value as of Feb 1, 2021 of $10.7B + Based on probability of delivering against 4 * T
Slide 13: Guidance
GUIDANCE Low High + Revenue growth driven by: + Volume growth in low 20s driven by e-commerce a 4 ere $2.94 $2.99 strength & continued improvements in our user experience Y/Y Growth — Som + Ongoing strong execution with our managed payments Organic FX-Neutral Y/Y Growth 35% 37% and advertising initi
Slide 14: Q&A
QSA
Slide 15: Appendix
APPENDIX
Slide 16: Internet Sales Tax Impact on MP US GMV
INTERNET SALES TAX IMPACT ON MP US GMV +37% US GMV Growth x IST +26% ~Ipt ISTImpact +25% 3% Growth -5% ; -6% ~Ipt ~3pts ~Ipt 7% -6% -6% Qi Q2'19 New States: 3 5 Total States: 300 8 Large States: NY 6 -% Q319 419 QI'20. 220. Q3'20.— Q4'20 4 I 5 1 2 1 22 _ 33 38 390 4 420 CA, TX
Slide 17: Reconciliations
Slide 18: GAAP to Non-GAAP Quarterly Reconciliations
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS OPERATING MARGIN Three months ended 2019 2019 2020 2020 2020 2020 {in millions, except percentages) GAAP operating income 408 478 665 790 $ 679 $ 67 ‘Stock-based compensation expense and related employer payroll taxes 100 13 8 m 116 120 ‘Amortization of acq
Slide 19: 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
Slide 20: GAAP to Non-GAAP Quarterly Reconciliations
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS STATEMENT OF INCOME sehen Ss! Tyee Sa! Reported Non-GAAP Entries Non-GAAP Reported Non-GAAP Entries Non-GAAP (in millions, except per share data and percentages) Net revenues $ 2868 $ - $ 2868 $ 2236 $ - $ 2236 Cost of net revenues 742 @ 7a 556 (12) (afb) B
Slide 21: Calculation of Free Cash Flow
CALCULATION OF FREE CASH FLOW ‘Three months ended 2019 2019 2020 2020 (in millions, except percentages) Net cash provided by continuing operating activities 801 694, 64 933 716 883 Less: Purchases of property and equipment, net (92) (29) (7) (97) (132) (168) Free cash flow from continuing operations
Slide 22: Reconciliation of Total Revenue
RECONCILIATION OF TOTAL REVENUE ‘September 30, “December 3I, ne 30, ‘September 30, December 3I, 2019 2019 2020 2020 2020 2020 {in millions, except percentages) Net Revenues by Type Net Transaction Revenues ? $ 1a29 S$ wa $ 1900 $ 2447 $ 2365 $ 2598 Marketing services and other revenues $s wm S$ a S$
Slide 23: Reconciliation of Organic FX-Neutral Revenue
RECONCILIATION OF ORGANIC FX-NEUTRAL REVENUE "September 30, "December 31, Marchi, June 30, September 30, ~~" December 31, 2019 2019 2020 2020 2020 2020 As Reported Revenue Growth am (3% (1% 24% 25% 28% Acquisition/ Disposition Impact 1% 2% 2% 2% 1% —% Foreign Currency Impact 2% 1% 3% 3% —% —% Organi
Slide 24: GAAP to Non-GAAP Reconciliations: Guidance
GAAP TO NON-GAAP RECONCILIATIONS GUIDANCE March 31, 2021 {inbillions, except per share amounts) GAAP Non-GAAP (a) Net Revenue $294-$299 $29%4-$299 Diluted EPS ‘$0.81 - $0.86 $1.03 - $1.08 ee ee ‘ook clotonerd tax bripact related to pee he oe Be
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