Slide 1: Q3 2021 Financial Highlights
Q3 2021 FINANCIAL HIGHLIGHTS October 27, 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: Q3 Highlights
Q3 HIGHLIGHTS • Revenue of $2.5B, up 11% Y/Y (+10% Y/Y FX-Neutral) • GAAP EPS of $0.43 and Non-GAAP EPS of $0.90 • GAAP operating margin of 26.5%, down 2.8pts Y/Y • Non-GAAP operating margin of 31.7%, down 2.7pts Y/Y • Generated $661M of Operating Cash Flow & $502M of Free Cash Flow • Returned $2.4B
Slide 5: Active Buyers
ACTIVE BUYERS (millions) 161 163 165 166 159 154 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 T12M Y/Y Growth 5% 6% 7% 8% (2)% (5)% 5 T12M = Trailing 12 month All reported results are from continuing operations
Slide 6: GMV
GMV ($ millions) 23,653 21,674 22,734 23,618 22,107 19,453 13,164 13,225 13,110 12,143 Int’l 11,884 10,485 • Q3 B2C GMV down 12% Y/Y and C2C GMV down 13% Y/Y on an FX- Neutral Basis 10,489 US 9,790 9,624 10,393 9,964 8,968 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 US Y/Y Growth 35% 33% 25% 36% (5)% (8)% I
Slide 7: Revenue
REVENUE ($ millions) 2,337 2,258 2,478 2,638 2,668 2,501 162 172 170 151 152 160 • Q3 FX-Neutral MS&O Transaction Revenue up 11% Y/Y, flat Q/Q 2,308 2,476 2,496 2,350 • Q3 FX-Neutral MS&O 2,185 2,098 Revenue down 7% Y/Y, decelerating Transaction 18pts Q/Q Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Y/Y Grow
Slide 8: Non-GAAP Expenses
NON-GAAP EXPENSES (% of revenue) Operating Expense at 41.7%, down ~3pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 26.6% 20.8% 22.3% 18.8% 10.4% 11.4% 9.4% 7.1% 4.5% 2.6% Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 Top-line leverage H
Slide 9: Earnings Per Share
EARNINGS PER SHARE • Q3 Non-GAAP Operating Margin down 2.7pts Y/Y driven by volume deleverage • Q3 Non-GAAP EPS up 9% Y/Y driven by Payments ramp & net benefit of share $1.08 Non-GAAP EPS $0.99 $0.85 $0.99 $0.90 repurchases, offset by lapping COVID-driven $0.82 volume • Q3 GAAP EPS down 50% Y/Y driv
Slide 10: Free Cash Flow
FREE CASH FLOW ($ millions) • Q3 FCF down 4% Y/Y primarily driven by timing of working capital 854 865 910 & capex spend, partially offset by improved 675 operations & lapping 522 502 2020 cash tax timing Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Y/Y Growth 82% (21)% 31% 77% 7% (4)% CapEx % of Revenue 4%
Slide 11: 2021 Cash & Debt
2021 CASH & DEBT Capital Allocation Tenets ($ billions) • Preserve financial flexibility to execute on strategy and drive long-term value creation $5.1 • Drive organic growth while balancing profitability Debt Net Debt • Supplement organic growth with disciplined acquisitions and investments Q3 21 E
Slide 12: Investments
INVESTMENTS Pending deal close ADEVINTA ADYEN KAKAO BANK KOREA • Received 540M shares in • Warrant acquired in Q2 • Investment acquired in Q1 • Agreed to sell 80.01% Q2 2021 (44% ownership) 2018, with a term of 7 years 2016 stake in Korean business to Emart in Q2 2021 for • Agreed to sell ~135M • Va
Slide 13: Q4 2021 Guidance
Q4 2021 GUIDANCE Q4 21 Q4 Guidance Context Low High • Revenue growth driven by: Revenue. • Ongoing strong execution in managed payments, (in billions) . $2.57 $2.62 advertising and business initiatives 4% 6% • Partially offset by low teens volume decline driven by Y/Y Growth. prior year lapping dyna
Slide 14: Q&A
Q&SA
Slide 15: Reconciliations
RECONCILIATIONS
Slide 16: GAAP to Non-GAAP Quarterly Reconciliations: Operating Margin
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS OPERATING MARGIN Three months ended June 30, September 30, December 31, March 31, June 30, September 30, 2020 2020 2020 2021 2021 2021 (in millions, except percetages) GAAP operating income $ 764 $ 662 $ 661 $ 841 $ 732 $ 662 Stock-based compensation expens
Slide 17: GAAP to Non-GAAP Quarterly Reconciliations: Net Income / EPS
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS NET INCOME / EPS Three months ended June 30, September 30, December 31, March 31, June 30, September 30, 2020 2020 2020 2021 2021 2021 (in millions, except per share data) GAAP Income from continuing operations $ 689 $ 605 $ 772 $ 568 $ 294 $ 283 Stock-base
Slide 18: GAAP to Non-GAAP Quarterly Reconciliations: Statement of Income
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS STATEMENT OF INCOME Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Non-GAAP Non-GAAP Reported Entries Non-GAAP Reported Entries Non-GAAP (in millions, except per share data and percentages) Net revenues $ 2,501 $ - $ 2,501 $ 2,2
Slide 19: Calculation of Free Cash Flow
CALCULATION OF FREE CASH FLOW Three months ended June 30, September 30, December 31, March 31, June 30, September 30, 2020 2020 2020 2021 2021 2021 (in millions) Net cash provided by continuing operating activities $ 951 $ 646 $ 830 $ 948 $ 1,009 $ 661 Less: Purchases of property and equipment, net
Slide 20: Reconciliation of Total Revenue
RECONCILIATION OF TOTAL REVENUE Three months ended June 30, September 30, December 31, March 31, June 30, September 30, 2020 2020 2020 2021 2021 2021 (in millions) Net Revenues by Type Net Transaction Revenues (1) $ 2,185 $ 2,098 $ 2,308 $ 2,476 $ 2,496 $ 2,350 Marketing services and other revenues
Slide 21: Reconciliation of Organic FX-Neutral Revenue
RECONCILIATION OF ORGANIC FX-NEUTRAL REVENUE Three months ended June 30, September 30, December 31, March 31, June 30, September 30, 2020 2020 2020 2021 2021 2021 As Reported Revenue Growth 26 % 26 % 30 % 45 % 14 % 11 % Acquisition/Disposition Impact 2% 1% —% —% —% —% Foreign Currency Impact 2% (1)%
Slide 22: GAAP to Non-GAAP Reconciliations: Guidance
GAAP TO NON-GAAP RECONCILIATIONS GUIDANCE Three Months Ending December 31, 2021 (in billions, except per share amounts) GAAP Non-GAAP (a) Net Revenue $2.57 - $2.62 $2.57 - $2.62 Diluted EPS $0.72 - $0.76 $0.97 - $1.01 (a) Estimated non-GAAP amounts above for the three months ending December 31, 2021
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