Slide 1: Business & Financial Highlights Q1'22
BUSINESS & FINANCIAL HIGHLIGHTS Q1’22 May 4, 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: Q1 Highlights
BUSINESS Q1 Highlights $19.4 Billion HIGHLIGHTS Gross Merchandise Volume Q1’22 $2.5 Billion Revenue 32.4% Non-GAAP Operating Margin $1.05 Non-GAAP EPS 18 Million Enthusiast Buyers © 2022 eBay. All rights reserved. 4
Slide 5: Focus Categories Highlights
BUSINESS Focus Categories Highlights HIGHLIGHTS Q1’22 New York Auto Parts Show © 2022 eBay. All rights reserved. 5
Slide 6: Payments Highlights
BUSINESS Payments Highlights HIGHLIGHTS Q1’22 Digital Wallet Klarna Currency Options © 2022 eBay. All rights reserved. 6
Slide 7: Recommerce
BUSINESS Recommerce $4B+ positive economic impact generated in 2021 from HIGHLIGHTS sale of used & refurbished goods Q1’22 1.5M metric tons of carbon emissions avoided 47K metric tons of waste avoided >80% Gen Z purchased pre-owned goods in 2021* 1 in 3 Gen Z began selling secondhand goods in 2021*
Slide 8: Financial Highlights
Financial Highlights
Slide 9: Q1'22 Results
Q1’22 Results Guidance Actuals GMV $19.1 - $19.5 $19.4 (in billions) (21)% - (19)% spot (20)% spot (19)% - (17)% FXN (17)% FXN Revenue $2.43 - $2.48 $2.48 (in billions) (8)% - (6)% spot (6)% spot (7)% - (5)% FXN (5)% FXN Non-GAAP Op Margin 31.5% - 32.0% 32.4% Non-GAAP $1.01 - $1.05 $1.05 EPS (6)% -
Slide 10: GMV
GMV ($ billions, Y/Y FXN growth) Int’l Mobility restrictions, stimulus US 24.1 23.1 28% 22.6 21% (11)% 20.7 19.9 (11)% 19.4 (12)% (17)% 13.3 13.1 22% 12.3 18% (15)% 10.6 11.0 (17)% 10.1 (14)% (20)% 10.0 10.8 10.3 9.7 36% (6)% 9.3 9.3 25% (8)% (2)% (14)% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Growth vs.
Slide 11: Revenue
Revenue ($ millions, Y/Y FXN growth) Transaction revenue MS&O revenue 2,638 2,668 2,613 11% 2,501 2,478 42% 5% 2,483 30% 10% (5)% 2,476 2,496 2,450 2,308 2,350 2,355 170 162 172 151 163 128 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Trxn Take Rate 10.0% 10.3% 11.1% 11.8% 11.8% 12.1% © 2022 eBay. All rights
Slide 12: Advertising Revenue
Advertising Revenue ($ millions, Y/Y FXN growth) 1P Ads Revenue 3P Ads Revenue 284 279 285 277 0% 27% 37% 6% 267 253 (2)% 1% 221 226 232 55% 228 57% 9% 209 4% 225 2% 8% 63 53 49 53 (23)% 44 42 (11)% (8)% (22)% (15)% (18)% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 1P vs. GMV +34pts +29pts +20pts +20pts +15
Slide 13: Non-GAAP Expenses
Non-GAAP Expenses (% of revenue) Operating Expense at ~40.3%, up ~20bps Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 27.3% 22.6% 19.9% 18.6% 9.9% 10.3% 6.9% 7.5% 3.3% 3.9% Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 Payments fully Lower
Slide 14: Non-GAAP Operating Income & Margin
Non-GAAP Operating Income & Margin ($ millions, non-GAAP operating margin) Non-GAAP operating margin Non-GAAP operating income 985 876 826 805 784 792 37.3% 32.8% 32.4% 31.7% 31.7% 31.6% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 © 2022 eBay. All rights reserved. Reconciliation of Non-GAAP operating income
Slide 15: Earnings Per Share
Earnings Per Share Non-GAAP EPS Y/Y Growth Non-GAAP EPS $1.08 $1.05 $1.05 $0.99 61% $0.90 $0.85 36% 24% 9% (0)% (2)% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 GAAP EPS $1.11 $0.82 $0.43 $0.43 $(1.47) $(2.28) GAAP Y/Y 103% 47% (56)% (50)% ** ** © 2022 eBay. All rights reserved. ** Not meaningful Reconcilia
Slide 16: Free Cash Flow
Free Cash Flow ($ millions) Y/Y Growth Free Cash Flow 910 865 77% 675 31% 546 502 372 (4)% 7% (37)% (45)% Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 CapEx % of Rev 6% 3% 4% 6% 4% 3% FCF % of Rev 27% 33% 34% 20% 14% 22% © 2022 eBay. All rights reserved. Calculation of Free Cash Flow (FCF) is included in the
Slide 17: Cash & Debt
Cash & Debt ($ billions) Targets • Maintain current BBB+ rating • Targeting mid-term leverage of approximately 1.5x $6.3 net debt and gross debt below 3.0x EBITDA • Long-term cash and investment balance of approximately $3.5B Debt Net Debt Q1 22 Ending Cash and $(2.0) Credit Ratios Investments* • 0.
Slide 18: Capital Returns
Capital Returns ($ millions) Dividend $4.7B repurchase authorization remaining as of March 31, 2022 Stock repurchases 3,107 107 2,366 116 1,621 121 3,000 1,379 129 2,250 1,500 529 1,250 110 414 122 419 292 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Avg Diluted Shares* 697 693 685 658 615 593 © 2022 eBay. A
Slide 19: Investments
Investments $3.7B $0.6B* $0.5B $0.5B Adevinta Adyen Kakao Bank Gmarket 405M shares** 0.1M shares + warrant** 12.7M shares** 19.99% private stake** 33% current ownership Sold 0.3M shares in Sold ~1M shares in Value assessed based Q1’22 for $551M Q1’22 for $45M on the fair value option Must maintain 2
Slide 20: Full Year 2022 Guidance
Full Year 2022 Guidance Guidance Context GMV $73.2 - $75.2 • 2022 impacted by lapping & macro headwinds: (in billions) (16)% - (14)% spot • Tougher comps due to mobility restrictions and (12)% - (10)% FXN stimulus in H1’21 • Macro headwinds, including war impact, Revenue $9.6 - $9.9 inflation, and c
Slide 21: Q2'22 Guidance
Q2’22 Guidance Guidance Context GMV $18.02 - $18.42 • Volume driven by: (in billions) (20)% - (18)% spot • Lapping mobility restrictions, and (16)% - (14)% FXN • Macro headwinds, including war impact, inflation, and consumer confidence Revenue $2.35 - $2.40 • Revenue driven by volume dynamics offset
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 $1.05 $(3.15) $(0.16) $(0.02) $(2.28) Non-GAAP EPS Investments Stock-based Tax rate / Other GAAP EPS compensation All reported results are from continuing operations
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