Slide 1: Q4 2021 Financial Highlights
Q4 2021 FINANCIAL HIGHLIGHTS February 23, 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: CFO Comments
CFO COMMENTS
Slide 4: Q4 Highlights
Q4 HIGHLIGHTS • Revenue of $2.6B, up 5% Y/Y (+5% Y/Y FX-Neutral) • GAAP EPS of $(1.47) and Non-GAAP EPS of $1.05 • GAAP operating margin of 26.3%, down 0.4pts Y/Y • Non-GAAP operating margin of 31.6%, down 0.1pts Y/Y • Generated $475M of Operating Cash Flow & $372M of Free Cash Flow • Completed the
Slide 5: Active Buyers
ACTIVE BUYERS (millions) 160 162 163 156 152 147 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 T12M Y/Y Growth 6% 7% 8% (2)% (5)% (9)% 5 T12M = Trailing 12 month All reported results are from continuing operations
Slide 6: GMV
GMV ($ millions) 22,098 23,130 24,127 22,587 19,925 20,726 13,314 • Q4 B2C GMV down 8% 13,161 12,255 Int’l 11,939 10,613 11,002 Y/Y and C2C GMV down 19% Y/Y on an FX-Neutral Basis • FY 21 Total GMV $87B, 10,813 down 3% Y/Y on an US 10,159 9,969 10,332 9,312 9,724 FX-Neutral Basis Q3 20 Q4 20 Q1 21 Q
Slide 7: Revenue
REVENUE ($ millions) 2,258 2,478 2,638 2,668 2,501 2,613 • Q4 FX-Neutral Transaction Revenue up 5% Y/Y, decelerating 6pts Q/Q • Q4 FX-Neutral MS&O 2,476 2,496 Revenue down 4% Transaction 2,098 2,308 2,350 2,450 Y/Y, accelerating 3pts Q/Q • FY 21 Total Revenue MS&O 160 170 162 172 151 163 $10.4B, up
Slide 8: Advertising Revenue
ADVERTISING REVENUE ($ millions) 244 284 279 277 253 285 • FY 21 Total Ads 221 1P (Trxn Rev) 189 226 228 209 232 Revenue $1.1B, up 9% Y/Y on an FX-Neutral Basis, representing 1.3% of GMV 3P (MS&O Rev) 55 63 53 49 44 53 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 1P FX-Neutral Y/Y Growth. 76% 55% 57% 9% 8% 4
Slide 9: Non-GAAP Expenses
NON-GAAP EXPENSES (% of revenue) Operating Expense at 42.3%, down ~4pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 26.1% 25.0% 21.7% 20.3% 9.7% 11.0% 8.5% 6.5% 4.5% 3.4% Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 Lower spend Higher c
Slide 10: Earnings Per Share
EARNINGS PER SHARE • Q4 Non-GAAP Operating Margin ~flat Y/Y • Q4 Non-GAAP EPS up 24% Y/Y driven by Payments ramp & net benefit of share repurchases, offset by lapping COVID-driven $1.08 $1.05 Non-GAAP EPS $0.85 $0.99 $0.90 volume $0.82 • Q4 GAAP EPS down Y/Y driven by investment losses and a lower A
Slide 11: Free Cash Flow
FREE CASH FLOW ($ millions) • Q4 FCF down 45% Y/Y primarily driven by cash tax impact from investments, partially offset by higher operating income 865 910 675 • FY 21 FCF $2.6B 522 502 • FY 21 CapEx 4% of 372 Revenue Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Y/Y Growth (21)% 31% 77% 7% (4)% (45)% CapEx %
Slide 12: 2021 Cash & Debt
2021 CASH & DEBT Capital Allocation Tenets ($ billions) • Preserve financial flexibility to execute on strategy and drive long-term value creation • Drive organic growth while balancing profitability $7.3 • Supplement organic growth with disciplined acquisitions Debt Net Debt and investments Q4 21 E
Slide 13: Investments
INVESTMENTS ADEVINTA ADYEN KAKAO BANK KOREA • Received 540M shares in • Warrant acquired in Q2 • Investment acquired in Q1 • Sold 80.01% stake in Q2 2021 (44% ownership) 2018 (7 yr term, up to 5% of 2016 Korean business to Emart share ownership) in Q4 2021 for ~$3.0B • Sold ~135M shares to • IPO com
Slide 14: Full Year 2022 Guidance
FULL YEAR 2022 GUIDANCE FY 22 Guidance Context Low High • 2022 has significantly different H1/H2 profile: GMV. $78.3 $80.5 (in billions) . • H1: Neg mid-teens GMV (FXN), low end of margin range, roughly flat EPS GMV Y/Y Growth. (10)% (8)% • H2: Flat to modestly positive GMV (FXN), high end of margin
Slide 15: Q1 2022 Guidance
Q1 2022 GUIDANCE Q1 22 Q1 Guidance Context Low High • Volume driven by: GMV. $19.1 $19.5 (in billions) . • Lapping mobility restrictions, trading card surge & stimulus (21)% (19)% • Revenue driven by volume dynamics offset by: GMV Y/Y Growth. FX-Neutral Y/Y Growth. • Payments tailwind (full migratio
Slide 16: Q&SA
Q&SA
Slide 17: Appendix
APPENDIX
Slide 18: Updated GMV Definition
UPDATED GMV DEFINITION ($ billions, Y/Y growth on an as-reported basis) 31% 35% 33% 33% 23% 24% (7)% (7)% 26% 28% (10)% (10)% (5)% (4)% (5)% (5)% (6)% (5)% (2)% 0% (5)% (4)% 23.7 24.2 22.7 23.1 23.6 24.1 21.7 22.1 22.1 22.6 18.1 18.2 18.4 18.7 19.5 19.9 18.0 18.0 17.2 17.3 17.8 18.1 Q1 19 Q2 19 Q3 1
Slide 19: Reconciliations
RECONCILIATIONS
Slide 20: GAAP to Non-GAAP Quarterly Reconciliations: Operating Margin
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS OPERATING MARGIN Three months ended September 30, December 31, March 31, June 30, September 30, December 31, 2020 2020 2021 2021 2021 2021 GAAP operating income $ 662 $ 661 $ 841 $ 732 $ 662 $ 688 Stock-based compensation expense and related employer payrol
Slide 21: GAAP to Non-GAAP Quarterly Reconciliations: Net Income / EPS
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS NET INCOME / EPS Three months ended September 30, December 31, March 31, June 30, September 30, December 31, 2020 2020 2021 2021 2021 2021 (in millions, except per share data) GAAP Income from continuing operations $ 605 $ 772 $ 568 $ 294 $ 283 $ (893) Stoc
Slide 22: GAAP to Non-GAAP Quarterly Reconciliations: Statement of Income
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS STATEMENT OF INCOME Three Months Ended Three Months Ended December 31, 2021 December 31, 2020 Non-GAAP Non-GAAP Reported Entries Non-GAAP Reported Entries Non-GAAP (in millions, except per share data and percentages) Net revenues $ 2,613 $ - $ 2,613 $ 2,478
Slide 23: 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, 2020 2020 2021 2021 2021 2021 (in millions) Net cash provided by continuing operating $ 646 $ 830 $ 948 $ 1,009 $ 661 $ 475 Less: Purchases of property and equipment, net (124) (
Slide 24: Reconciliation of Total Revenue
RECONCILIATION OF TOTAL REVENUE Three months ended September 30, December 31, March 31, June 30, September 30, December 31, 2020 2020 2021 2021 2021 2021 (in millions) Net Revenues by Type Net Transaction Revenues (1) $ 2,098 $ 2,308 $ 2,476 $ 2,496 $ 2,350 $ 2,450 Marketing services and other reven
Slide 25: 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, 2020 2020 2021 2021 2021 2021 As Reported Revenue Growth 26 % 30 % 45 % 14 % 11 % 5% Acquisition/Disposition Impact 1% —% —% —% —% —% Foreign Currency Impact (1)%
Slide 26: GAAP to Non-GAAP Reconciliations: Guidance
GAAP TO NON-GAAP RECONCILIATIONS GUIDANCE Three Months Ending March 31, 2022 (in billions, except per share amounts) GAAP Non-GAAP (a) Net Revenue $2.43 - $2.48 $2.43 - $2.48 Diluted EPS $0.79 - $0.83 $1.01 - $1.05 Twelve Months Ending December 31, 2022 (in billions, except per share amounts) GAAP N
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