Slide 1: Business & Financial Highlights Q3'22
BUSINESS & FINANCIAL HIGHLIGHTS Q3’22 November 2, 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: Q3 Highlights
BUSINESS Q3 Highlights $17.7 Billion HIGHLIGHTS Gross Merchandise Volume Q3’22 $2.4 Billion Revenue 28.9% Non-GAAP Operating Margin $1.00 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: Long-Term Growth Initiatives
BUSINESS Long-Term Growth Initiatives HIGHLIGHTS Q3’22 Q3 GMV vs. 2019 Focus categories excl. trading cards Over 20% growth Trading cards More than double Other categories Flat Advertising Double ads by 2025 On track Payments $300M incremental revenue On track © 2022 eBay. All rights reserved. 5
Slide 6: Focus Categories Highlights
BUSINESS Focus Categories Highlights HIGHLIGHTS Q3’22 TCGplayer eBay Refurbished Motors P&A © 2022 eBay. All rights reserved. 6
Slide 7: eBay's Impact
eBay’s Impact © 2022 eBay. All rights reserved. © 2022 eBay. All rights reserved. 7 7
Slide 8: Financial Highlights
Financial Highlights
Slide 9: Q3'22 Results
FINANCIAL Q3’22 Results HIGHLIGHTS Q3’22 Guidance Actuals GMV $17.0 - $17.6 $17.7 (in billions) (15)% - (12)% spot (11)% spot (9)% - (6)% FXN (5)% FXN Revenue $2.29 - $2.37 $2.38 (in billions) (8)% - (5)% spot (5)% spot (5)% - (2)% FXN (2)% FXN Non-GAAP Op Margin 27.0% - 28.0% 28.9% Non-GAAP $0.89 -
Slide 10: GMV
FINANCIAL GMV HIGHLIGHTS ($ billions, Y/Y FXN growth) Q3’22 Mobility restrictions, Int’l stimulus US 22.6 (11)% 20.7 19.9 (11)% 19.4 (12)% (17)% 18.5 (14)% 17.7 (5)% 12.3 (15)% 10.6 11.0 (17)% 10.1 9.5 (14)% (20)% 9.0 (15)% (4)% 10.3 9.3 9.7 9.3 (6)% 9.0 8.7 (8)% (2)% (14)% (13)% (7)% Q2 21 Q3 21 Q4
Slide 11: Revenue
FINANCIAL Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) Q3’22 Mobility restrictions, Transaction revenue stimulus MS&O revenue 2,668 2,613 11% 2,501 5% 2,483 2,422 10% (5)% 2,380 (6)% (2)% 2,496 2,450 2,350 2,355 2,297 2,259 172 151 163 128 125 121 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Trxn Take Rat
Slide 12: Advertising Revenue
FINANCIAL Advertising Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) Q3’22 1P Ads Revenue Mobility restrictions, 3P Ads Revenue stimulus 285 290 277 0% 275 22% 6% 267 4% 253 (2)% 1% 228 232 249 4% 225 232 9% 209 2% 6% 27% 8% 49 44 53 42 43 41 (8)% (22)% (15)% (18)% (9)% (3)% Q2 21 Q3 21 Q4 21 Q1 22
Slide 13: Non-GAAP Expenses
FINANCIAL Non-GAAP Expenses HIGHLIGHTS (% of revenue) Q3’22 Operating Expense at ~44.5%, up 2.8pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 26.6% 26.6% 21.9% 18.8% 11.4% 12.3% 7.0% 7.4% 4.5% 2.9% Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 Q3 2
Slide 14: Non-GAAP Operating Income & Margin
FINANCIAL Non-GAAP Operating Income & Margin HIGHLIGHTS ($ millions) Q3’22 Mobility restrictions, Non-GAAP operating margin stimulus Non-GAAP operating income 876 826 805 792 694 690 32.8% 32.4% 31.7% 31.6% 28.7% 28.9% Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 © 2022 eBay. All rights reserved. Reconciliat
Slide 15: Earnings Per Share
FINANCIAL Earnings Per Share HIGHLIGHTS Q3’22 Mobility restrictions, Non-GAAP EPS Y/Y Growth stimulus Non-GAAP EPS $1.05 $1.05 $0.99 $0.99 $1.00 $0.90 24% 0% 9% 11% (2)% 0% Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 GAAP EPS $0.43 $0.43 $(1.47) $(2.28) $(0.96) $(0.13) GAAP Y/Y (56)% (50)% ** ** ** ** © 202
Slide 16: Free Cash Flow
FINANCIAL Free Cash Flow HIGHLIGHTS ($ millions) Q3’22 Higher op income & Y/Y Growth one-time payments Free Cash Flow WC* benefit 910 633 546 502 26% 466 7% 372 (4)% (37)% (45)% (49)% Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 CapEx % of Rev 4% 6% 4% 3% 5% 4% FCF % of Rev 34% 20% 14% 22% 19% 27% © 2022 eBa
Slide 17: Cash & Debt
FINANCIAL Cash & Debt HIGHLIGHTS ($ billions) Q3’22 Targets • Maintain current BBB+ rating • Targeting mid-term leverage of approximately 1.5x $4.8 net debt and gross debt below 3.0x EBITDA • Long-term cash and investment balance of Debt Net Debt approximately $3.5B Q3 22 Ending Cash and Investments
Slide 18: Capital Returns
FINANCIAL Capital Returns HIGHLIGHTS ($ millions) Q3’22 Dividend More than $3.1B repurchase authorization remaining as of September 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 1,250 1,292 421 120 301 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Avg Diluted S
Slide 19: Investments
FINANCIAL Investments HIGHLIGHTS Q3’22 $2.4B $0.2B ** $0.1B $0.4B Adevinta Adyen Kakao Bank Gmarket 405M shares* Sold remaining 66K 5.4M shares* 19.99% private stake* shares in Q3’22 for 33% current ownership $120M Value assessed based on the fair value option Must maintain 25% Warrant acquired in o
Slide 20: Q4'22 Guidance
FINANCIAL Q4’22 Guidance HIGHLIGHTS Q3’22 Guidance Context GMV $17.5 - $18.1 • Volume driven by: • Macro headwinds, including inflation, high (in billions) (16)% - (13)% spot energy costs, rising interest rates, and (9)% - (6)% FXN European labor disruptions • Incremental $0.3B FX headwinds vs. prio
Slide 21: Full Year 2022 Guidance
FINANCIAL Full Year 2022 Guidance HIGHLIGHTS Q3’22 Guidance Context GMV $73.2 - $73.8 • 2022 impacted by lapping & macro headwinds: • Tougher comps due to mobility restrictions and (in billions) (16)% - (16)% spot stimulus in H1’21 (12)% - (11)% FXN • Macro headwinds, including inflation, high energ
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: GAAP to Non-GAAP Quarterly Reconciliations: Operating Margin
GAAP to Non-GAAP Quarterly Reconciliations Operating Margin
Slide 25: GAAP to Non-GAAP Quarterly Reconciliations: Net Income / EPS
GAAP to Non-GAAP Quarterly Reconciliations Net Income / EPS
Slide 26: Earnings Per Share, Non-GAAP to GAAP Recon
Earnings Per Share, Non-GAAP to GAAP Recon $1.00 $(0.82) $(0.19) $(0.12) $(0.13) Non-GAAP EPS Investments * Stock-based Tax rate / Other GAAP EPS compensation * All reported results are from continuing operations * “Investments” includes gains or losses on investments, change in fair market value of
Slide 27: GAAP to Non-GAAP Quarterly Reconciliations: Statement of Income
GAAP to Non-GAAP Quarterly Reconciliations Statement of Income
Slide 28: Calculation of Free Cash Flow
Calculation of Free Cash Flow
Slide 29: Reconciliation of Total Revenue
Reconciliation of Total Revenue
Slide 30: Reconciliation of Organic FX-Neutral Revenue
Reconciliation of Organic FX-Neutral Revenue
Slide 31: Calculation of Period-End Fully Diluted Share Count
Calculation of Period-End Fully Diluted Share Count
Slide 32: GAAP to Non-GAAP Reconciliations: Guidance
GAAP to Non-GAAP Reconciliations Guidance
Slide 33: Slide 33