Slide 1: Business & Financial Highlights Q4'22
BUSINESS & FINANCIAL HIGHLIGHTS Q4’22 February 22, 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: Q4 Highlights
BUSINESS Q4 Highlights $18.2 Billion HIGHLIGHTS Gross Merchandise Volume Q4’22 $2.5 Billion Revenue 29.9% Non-GAAP Operating Margin $1.07 Non-GAAP EPS 16 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: Business Highlights
Guaranteed Fit BUSINESS HIGHLIGHTS Q4’22 Certified Refurbished eBay Live Authenticity Guarantee © 2022 eBay. All rights reserved. 5
Slide 6: International Shipping
BUSINESS International HIGHLIGHTS Q4’22 Shipping ~20% GMV in Cross-Border Trade <50% Inventory in top 3 markets currently available for © 2022 eBay. export All rights reserved. 6
Slide 7: eBay's Impact
eBay’s Impact 7 © 2023 eBay. All rights reserved.
Slide 8: Financial Highlights
Financial Highlights
Slide 9: Q4'22 Results
FINANCIAL Q4’22 Results HIGHLIGHTS Q4’22 Guidance Actuals GMV $17.5 - $18.1 $18.2 (in billions) (16)% - (13)% spot (12)% spot (9)% - (6)% FXN (6)% FXN Revenue $2.42 - $2.50 $2.51 (in billions) (7)% - (4)% spot (4)% spot (4)% - (1)% FXN (1)% FXN Non-GAAP Op Margin 29.7% - 30.3% 29.9% Non-GAAP $1.03 -
Slide 10: FY'22 Results
FINANCIAL FY’22 Results HIGHLIGHTS Q4’22 Guidance Actuals GMV $73.2 - $73.8 $73.9 (in billions) (16)% - (16)% spot (15)% spot (12)% - (11)% FXN (11)% FXN Revenue $9.71 - $9.79 $9.80 (in billions) (7)% - (6)% spot (6)% spot (4)% - (3)% FXN (4)% FXN Non-GAAP Op Margin 30.0% - 30.1% 30.0% Non-GAAP $4.0
Slide 11: GMV
FINANCIAL GMV HIGHLIGHTS ($ billions, Y/Y FXN growth) Q4’22 Int’l US 20.7 19.9 (11)% 19.4 (12)% 18.5 (17)% 17.7 18.2 (14)% (6)% (5)% 11.0 10.6 (17)% 10.1 (14)% (20)% 9.5 9.0 9.3 (15)% (4)% (4)% 9.3 9.7 9.3 9.0 8.7 8.9 (8)% (2)% (14)% (13)% (7)% (9)% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Growth vs. 201
Slide 12: Revenue
FINANCIAL Revenue HIGHLIGHTS ($ millions) Net rev take rate Q4’22 Net revenue (incl. MS&O) 2,613 2,501 5% 2,483 2,510 10% (5)% 2,422 2,380 (1)% (6)% (2)% 13.4% 13.8% 12.6% 12.6% 12.8% 13.1% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 MS&O revenue* $151M $163M $128M $125M $121M $128M © 2022 eBay. All rights
Slide 13: Advertising Revenue
FINANCIAL Advertising Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) Q4’22 1P Ads Revenue 3P Ads Revenue 319 19% 285 290 0% 267 275 22% 4% 253 (2)% 1% 276 232 249 27% 4% 225 232 209 6% 27% 8% 2% 44 53 42 43 41 43 (22)% (15)% (18)% (9)% (3)% (16)% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 1P vs. GMV +20pt
Slide 14: Non-GAAP Expenses
FINANCIAL Non-GAAP Expenses HIGHLIGHTS (% of revenue) Q4’22 Operating Expense at ~43.7%, up 1.4pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 26.1% 26.4% 20.3% 21.5% 11.0% 11.1% 6.5% 7.9% 4.5% 3.2% Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Q4 21 Q4 22 Q4 2
Slide 15: Non-GAAP Operating Income & Margin
FINANCIAL Non-GAAP Operating Income & Margin HIGHLIGHTS ($ millions) Q4’22 Non-GAAP operating margin Non-GAAP operating income 826 805 792 750 694 690 31.7% 32.4% 31.6% 29.9% 28.7% 28.9% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 © 2022 eBay. All rights reserved. Reconciliation of Non-GAAP operating income
Slide 16: Earnings Per Share
FINANCIAL Earnings Per Share HIGHLIGHTS Q4’22 Non-GAAP EPS Y/Y Growth Non-GAAP EPS $1.05 $1.05 $1.07 $0.99 $1.00 $0.90 24% 11% 9% 0% 2% (2)% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 GAAP EPS $0.43 $(1.47) $(2.28) $(0.96) $(0.13) $1.23 GAAP Y/Y (50)% ** ** ** ** ** © 2022 eBay. All rights reserved. ** Not
Slide 17: Free Cash Flow
FINANCIAL Free Cash Flow HIGHLIGHTS ($ millions) Q4’22 Y/Y Growth Free Cash Flow 633 546 533 502 466 372 43% 26% (4)% (37)% (45)% (49)% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 CapEx % of Rev 6% 4% 3% 5% 4% 6% FCF % of Rev 20% 14% 22% 19% 27% 21% © 2022 eBay. All rights reserved. Calculation of Free Cash
Slide 18: Cash & Debt
FINANCIAL Cash & Debt HIGHLIGHTS ($ billions) Q4’22 Targets • Maintain current BBB+ rating $5.9 • 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 Q4 22 Ending Cash and approximately $3.5B Investments
Slide 19: Capital Returns
FINANCIAL Capital Returns HIGHLIGHTS ($ millions) Q4’22 Dividend More than $2.8B repurchase authorization remaining as of December 31, 2022 Stock repurchases 3,107 107 2,366 116 3,000 1,379 1,413 129 121 2,250 1,250 1,292 421 419 120 119 301 300 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Avg Diluted Shares
Slide 20: Investments
FINANCIAL Investments HIGHLIGHTS Q4’22 $2.7B $0.2B $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 Sold ~1M shares in Q4 5% ownership) Value assessed based to satisfy regulatory on the fair value option re
Slide 21: Q1'23 Guidance
FINANCIAL Q1’23 Guidance HIGHLIGHTS Q4’22 Guidance Context GMV $18.0 - $18.3 • Volume driven by: • Macro headwinds, including inflation, high (in billions) (7)% - (6)% spot (5)% - (3)% FXN energy costs, and rising interest rates (5)% - (4)% organic FXN • Offset by strategic execution & ~$100M streng
Slide 22: FY'23 Context
FINANCIAL FY’23 Context HIGHLIGHTS Q4’22 Context • Expect sequential GMV growth beyond Q1 to roughly approximate 2022 seasonality, excluding FX GMV • For context, FXN 2022 Q/Q seasonality Q2 (3)%, Q3 (2)%, Q4 +4% • ~1% FX headwind to GMV in 2023 (at current rates) • 2023 total non-GAAP expense growt
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 $(0.20) $0.48 $(0.12) $1.23 $1.07 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 war
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