Slide 1: Business & Financial Highlights Q4'23
bay BUSINESS & FINANCIAL HIGHLIGHTS Q4’23 | February 27, 2024 |
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
Slide 4: Q4 Highlights
Q4. Highlights © 2024 eBay. All rights reserved. 4 $18.6 Billion Gross Merchandise Volume $2.6 Billion Revenue 26.7% Non-GAAP Operating Margin $1.07 Non-GAAP EPS 16 Million Enthusiast Buyers*
Slide 5: Continued Innovation in Focus Categories
BUSINESS Continued Innovation in Focus Categories HIGHLIGHTS Motors, Parts & Japan Authentication Authenticity Guarantee Accessories Hub Launch Expansion Rolled out multi-warehouse Opened the 8" authentication Partnered with Gemological shipping & predictive center to focus on Institute of America (
Slide 6: German C2C Initiative
German C2C Initiative Your pickup code Your pickup code x Volkspark Seller Net Promoter Score : pene ® +20pts | Gn | iia +20pts Seller Customer Satisfaction ~50% Reduction in Unpaid items for local pickup Lares 287699 © 2024 eBay. Alll rights reserved. 6
Slide 7: Phase 2 of Magical Listing Experience
Phase 1 of Magical Listing Experience oppor 10 isto QWwEeERTYUIOP ASDF GH J KL e* zxCcveBNM @ space return a © 2024 eBay. Alll rights reserved. Phase 2 of Magical Listing Experience Create a listing Photos a ed photos Title 2020 Panin Chronicles stn Jtterson Gidkon Kings #613 PSAIO Category Tading C
Slide 8: Delivered Another Strong Quarter in Advertising
Delivered Another Strong Quarter in Advertising ‘Add listings to your campaign 420% Y/Y agen "aS Ads FXN revenue growth in Q4 $1.4B+ Total ads revenue in FY’23 900M+ Live Promoted Listings Implemented “Top Picks” Carousel © 2024 eBay. Alll rights reserved. 8
Slide 9: eBay 2023 Impact
eBay 2023 Impact Recommerce Green Energy eBay for Charity = A; ~¥ 4; FOR CHARITY D4 Nearly $4.9B of positive Over 90% of our global . economic impact from energy covered by Nearly $ eM raise by eBay pre-loved and refurbished goods renewable sources y © 2024 eBay. All rights reserved.
Slide 10: Financial Highlights
Slide 11: Q4'23 Results
Q4’23 Results Guidance eu $17.9 - $18.3 $18.6 Hy ali (2)% - 0% spot 2% spot (in billions) (4)% - (2)% FXN 0% FXN (4)% - (2)% organic FXN 0% organic FXN Revenue $2.47 * $2.53 $2.56 A AlH (2)% -1% spot 2% spot (in billions) (1)% - 2% FXN 3% FXN (1)% - 2% organic FXN 3% organic FXN Non-GAAP 26.1% - 26.
Slide 12: FY'23 Results
FY’23 Results @mv $72.5 - $72.9 $73.2 (in billions) (2)% - (1)% spot (1)% spot (2)%- (1)% FXN (1)% FXN (2)% - (2)% organic FXN (1)% organic FXN Revenue $10.02 = $10.08 $10.11 A AIH 2% - 3% spot 3% spot (in billions) petite 3% spot 3% - 3% organic FXN 3% organic FXN Non-GAAP 27.3% - 27.4% 27.4% Op Ma
Slide 13: GMV
GMV mit ($ billions, Y/Y FXN growth) | us 18.2 18.4 18.2 18.0 18.6 77 5 0% 6% (6)% (2)% ()% 0% Q3 22 Q4 22 Q123 Q2 23 Q3 23 Q4 23 Organic FXN 6)% (6% (3)% (1% (1% 0% © 2024 eBay. All rights reserved.
Slide 14: Revenue
FINANCIAL HIGHLIGHTS Revenue ($ millions, Y/Y FXN growth) —@® Net rev take rate Net revenue 2,510 2,510 2,540 2,500 2,562 2,380 ()% 3% 6% 5% % (2)% e- —e —e— —° 2 ° Q3 22 Q422 Q123 Q223 Q323 Q423 Organic FXN (2)% (1)% 2% 5% 4% 3%
Slide 15: Advertising Revenue
Advertising Revenue IP Ads Revenue ($ millions, Y/Y FXN growth) 3P Ads Revenue 393 367* 366 20% 35% 24% 319 317 290 19% 23% 22% 276 oa 345 a 249 27% ails 36% 27% 4] 43 32 26 2 25 (3)% a3 (239% (399% (51% (42)% Q3 22 Q4 22 Q123 Q2 23 Q3 23 Q4 23 1P vs. GMV +32pts +33pts +33pts +50pts +36pts +30pts GM
Slide 16: Non-GAAP Expenses
Non-GAAP Expenses (% of revenue) Operating Expense at ~46.2%, up 2.5pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 271% 21.5% 21.4% 9 12.8% 1.1% 79% % 3.2% 3.9% Q4 22 Q4 23 Q4.22 Q4 23 Q4.22 Q4 23 Q4 22 Q4 23 Q4.22 Q4 23 elS spend’, offset by Lower c
Slide 17: Non-GAAP Operating Income & Margin
Non-GAAP Operating Income & Margin eo Non caar one operating margin ($ millions) Bl Non-Gaap operating income 750 744 686 Q3 22 Q4 22 Q123 Q2 23 Q3 23 Q4 23 © 2024 eBay. All rights reserved.
Slide 18: Earnings Per Share
Earnings Per Share —® Non-GAAP EPS Y/Y Growth Non-GAAP EPS. sim $1.00 $1.07 $1.03 $1.03 $1.07 ~ ss —_ — —~o 3 22 4 22 Ql23 223 323 0423 GAAP EPS $(0.13) $1.23 $1.05 $0.32 $2.46 $1.40 GAAP Y/Y ” ” ” ” ” 13% © 2024 eBay. All rights reserved. 18
Slide 19: Free Cash Flow
Free Cash Flow ae ($ millions) {Free Cash Flow 777 709 492 @y* Q3 22 Q4 22 Q123 Q2 23 Q3 23 Q4 23 CapEx % of Rev 4% 6% 5% 4% 3% 5% FCF % of Rev 27% 21% 28% 19% 31% “ © 2024 eBay. All rights reserved. 9
Slide 20: Cash & Debt
Cash & Debt ($ billions) + Maintain current BBB+ rating * Targeting mid-term leverage of approximately 1.5x net debt and gross debt below 3.0x EBITDA 5 * Targeting long-term cash and investment balance Q4.23 Ending Cash and of approximately $3.5B Investments* $(2.6) Credit Ratios * 1.4xnet debt + 3.
Slide 21: Capital Returns
Capital Returns Dhidend ($ millions) Stock repurchases Approximately $1.4B repurchase authorization remaining as of December 31, 2023 783 421 419 384. 383 379 651 ao. eae 250 250 250 Q3 22 Q4 22 Q123 Q2 23 Q3 23 Q4 23 Avg Diluted Shares* 551 544 541 537 532 521 © 2024 eBay. All rights reserved.
Slide 22: Investments
FINANCIAL Investments HIGHLIGHTS $0.4B $0.3B Adyen warrant Gmarket Warrant acquired in Q2’18 (7 yr term, up to 5% ownership) Warrant value based on probability of vesting 3 remaining tranches (0% - 95%)
Slide 23: Q1'24 Guidance
Q1’24 Guidance GMV $18.2 - $18.5 + Volume driven by: (in billions) (1)% - 0% spot * Macro headwinds, including negative GDP (2)% - 0% FXN growth in UK and Germany, causing an uneven consumer demand environment R $2 50 $2 5G * 1 pt tailwind from leap year evenue e = ° * Nearly 1 pt of FX tailwind in
Slide 24: FY'24 Context
FY’24 Context + Assuming stable macro, expect Y/Y FXN GMV growth to turn positive in Q3 or Q4 of 2024 Raeee + Expect revenue growth to outpace GMV by ~2 pts on an FXN basis evenue * Take rate expansion primarily driven by IP ads revenue growth + Expect non-GAAP operating margin expansion of 60 to 10
Slide 25: Q&A
Slide 26: Appendix
Slide 27: GAAP to Non-GAAP Quarterly Reconciliations
GAAP to Non-GAAP Quarterly Reconciliations Operating Margin GAAP operating income ‘Stock-based compensation expense and related employer payroll taxes Amortization of acquired intangible assets within cost of net revenues and operating expenses Restructuring Legal matters Other general and administr
Slide 28: GAAP to Non-GAAP Quarterly Reconciliations
GAAP to Non-GAAP Quarterly Reconciliations Net Income / EPS Three months ended ‘September 30, December 31, March 31, June 30, ‘September 30, December 31, 2022 2022 2023 2023 2023 2023 {in millions, except per share data) GAAP income (loss) from continuing operations $ (70) $ on $ 569 $ 72 $ 1,306 $
Slide 29: Earnings Per Share, Non-GAAP to GAAP Recon
Earnings Per Share, Non-GAAP to GAAP Recon $0.95 $(0.23) $1.40 $1.07 Non-GAAP EPS __ Investments* Stock-based Restructuring Tax rate / Other GAAP EPS compensation* © 2024 eBay. Alll rights reserved. 29
Slide 30: GAAP to Non-GAAP Quarterly Reconciliations
GAAP to Non-GAAP Quarterly Reconciliations Statement of Income ‘Three Months Ended Three Months Ended December 31,2023 December 31, 2022 Reported Non-GAAP Entries Non-GAAP Reported Non-GAAP Entries Non-GAAP (in millions, except per share data and percentages) Net revenues $ 2,562 $ - $ 2,562 $ 2,510
Slide 31: Calculation of Free Cash Flow
Calculation of Free Cash Flow Three months ended ‘September 30, December 31, March 31, ‘June 30, ‘September 30, December 31, 2022 2022 2023 2023 2023 2023 {in millions) Net cash provided by continuing operating activities $ 735 $ 686 $ 841 $ 605 $ 862 $ 123 Less: Purchases of property and equipment,
Slide 32: Reconciliation of Total Revenue
Reconciliation of Total Revenue Three months ended September 30, December 31, March 31, June 30, September 30, December 31, 2022 2022 2023 2023 2023 2023 (in millions) Net revenues”) $ 2,380 $ 2510 $ 2510 $ 2,540 $ 2,500 $ 2,562 (1) Hedge gain/(loss) $ 36 $ 89 $ 29 $ 4S 2$ 1 (2) Foreign currency imp
Slide 33: Reconciliation of Organic FX-Neutral Revenue
Reconciliation of Organic FX-Neutral Revenue Three months ended ‘September 30, December 31, March 31, June 30, ‘September 30, December 31, 2022 2022 2023 2023 2023 2023 ‘As Reported Revenue Growth (5)% (4% 1% 5% 5% 2% Acquisition/Disposition Impact —% —% ()% ()% ()% —% Foreign Currency Impact 3% 3%
Slide 34: Calculation of Period-End Fully Diluted Share Count
Calculation of Period-End Fully Diluted Share Count Quarter-end common shares outstanding Quarter-end shares underlying outstanding RSUs Quarter-end fully diluted shares © 2024 eBay. Alll rights reserved. 34 Three months ended September 30, December 31, March 31, ‘June 30, ‘September 30, December 31
Slide 35: GAAP to Non-GAAP Reconciliations Guidance
GAAP to Non-GAAP Reconciliations Guidance © 2024 eBay. Alll rights reserved. 35 Three Months Ending March 31, 2024 (in billions, except per share amounts) GAAP Non-GAAP (a) Net Revenue $2.50 - $2.54 $2.50 - $2.54 Diluted EPS $0.86 - $0.90 $1.19 - $1.23 (a) Estimated non-GAAP amounts above for the th
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