Slide 1: Q2 2021 Financial Highlights
Q2 2021 FINANCIAL HIGHLIGHTS August 11, 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: Q2 Guidance Reconciliation
Q2 GUIDANCE RECONCILIATION April 28, 2021 Implied Q2 2021 Guidance Guidance excl. Korea Off-Platform* Low High Korea Low High Impact Neg Low GMV FXN. Double Neg Hi (2)pts Neg Low Neg Low Digit Single Digit Double Digit Double Digit Revenue. $2.98 $3.03 $(0.40)B $2.58 $2.63 (in billions) . Y/Y Growth
Slide 5: Q2 Highlights
Q2 HIGHLIGHTS • Revenue of $2.7B, up 14% Y/Y (+11% Y/Y FX-Neutral) • GAAP EPS of $0.43 and Non-GAAP EPS of $0.99 • GAAP operating margin of 27%, down 6pt Y/Y • Non-GAAP operating margin of 33%, down 6pt Y/Y • Generated $1.0B of Operating Cash Flow & $910M of Free Cash Flow • Returned $1.6B to shareh
Slide 6: Active Buyers
ACTIVE BUYERS (millions) 161 163 165 166 159 154 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 T12M Y/Y Growth 1% 5% 6% 7% 8% (2)% 6 All reported results are from continuing operations
Slide 7: GMV
GMV ($ millions) 17,821 23,653 21,674 22,734 23,618 22,107 13,164 13,225 13,110 12,143 Int’l 10,190 11,884 • Q2 B2C GMV down 12% Y/Y and C2C GMV down 7% Y/Y on an FX- Neutral Basis 10,489 US 7,631 9,790 9,624 10,393 9,964 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 US Y/Y Growth (4)% 35% 33% 25% 36% (5)% In
Slide 8: Revenue
REVENUE ($ millions) 1,821 2,337 2,258 2,478 2,638 2,668 162 172 • Q2 FX-Neutral 170 152 160 Transaction Revenue MS&O up 11% Y/Y, 169 decelerating 36pts Q/Q 2,308 2,476 2,496 2,185 2,098 • Q2 FX-Neutral MS&O 1,652 Revenue up 11% Y/Y, Transaction accelerating 17pts Q/Q Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q
Slide 9: Non-GAAP Expenses
NON-GAAP EXPENSES (% of revenue) Operating Expense at 42%, down ~2pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 24.7% 21.5% 20.0% 11.1% 9.1% 3.8% 3.8% 9.2% 7.5% 17.4% Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Fee netting Payments &
Slide 10: Earnings Per Share
EARNINGS PER SHARE • Q2 Non-GAAP Operating Margin down 6pts Y/Y driven by volume deleverage • Q2 Non-GAAP EPS flat Y/Y driven by lapping COVID-driven volume, offset by Payments $1.08 $0.99 $0.99 ramp & net benefit of $0.82 $0.85 share repurchases $0.67 • Q2 GAAP EPS down 56% Y/Y driven by the FV adj
Slide 11: Free Cash Flow
FREE CASH FLOW ($ millions) • Q2 FCF up 7% Y/Y primarily driven by strong Payments execution, working 854 865 910 capital improvements, 675 partially offset by 490 522 lapping 2020 cash tax timing Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Y/Y Growth 88% 82% (21)% 31% 77% 7% CapEx % of Revenue 5% 4% 5% 6%
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 $7.6 • Drive organic growth while balancing profitability • Supplement organic growth with disciplined acquisitions Debt Net Debt and investments Q2 21 E
Slide 13: Investments
INVESTMENTS ADEVINTA ADYEN KAKAO BANK KOREA • Deal closed in Q2 2021, • Warrant acquired in Q2 • Agreed to sell 80.01% • Investment acquired in Q1 received $2.5B of cash & 2018, with a term of 7 years stake in Korean business 2016 540M shares to Emart in June 2021 for • Value based on $3.0B** • Agre
Slide 14: Q3 2021 Guidance
Q3 2021 GUIDANCE Q3 21 Q3 Guidance Context Low High • Revenue growth driven by: Revenue. • Ongoing strong execution in managed payments, (in billions) . $2.42 $2.47 advertising and business initiatives 7% 9% • Partially offset by low to mid teens volume decline driven Y/Y Growth. by prior year lappi
Slide 15: Q&A
Q&SA
Slide 16: Reconciliations
RECONCILIATIONS
Slide 17: GAAP to Non-GAAP Quarterly Reconciliations: Operating Margin
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS OPERATING MARGIN Three months ended March 31, June 30, September 30, December 31, March 31, June 30, 2020 2020 2020 2020 2021 2021 (in millions, except percentages) GAAP operating income $ 549 $ 764 $ 662 $ 661 $ 841 $ 732 Stock-based compensation expense a
Slide 18: GAAP to Non-GAAP Quarterly Reconciliations: Net Income / EPS
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS NET INCOME / EPS Three months ended March 31, June 30, September 30, December 31, March 31, June 30, 2020 2020 2020 2020 2021 2021 (in millions, except percentages) GAAP Income from continuing operations $ 421 $ 689 $ 605 $ 772 $ 568 $ 294 Stock-based compe
Slide 19: GAAP to Non-GAAP Quarterly Reconciliations: Statement of Income
GAAP TO NON-GAAP QUARTERLY RECONCILIATIONS STATEMENT OF INCOME Three Months Ended Three Months Ended June 30, 2021 June 30, 2020 Non-GAAP Non-GAAP Reported Entries Non-GAAP Reported Entries Non-GAAP (in millions, except per share data and percentages) Net revenues $ 2,668 $ - $ 2,668 $ 2,337 $ - $ 2
Slide 20: Calculation of Free Cash Flow
CALCULATION OF FREE CASH FLOW Three months ended March 31, June 30, September 30, December 31, March 31, June 30, 2020 2020 2020 2020 2021 2021 (in millions, except percentages) Net cash provided by continuing operating activities 577 951 646 830 948 1,009 Less: Purchases of property and equipment,
Slide 21: Reconciliation of Total Revenue
RECONCILIATION OF TOTAL REVENUE March 31, June 30, September 30, December 31, March 31, June 30, 2020 2020 2020 2020 2021 2021 (in millions, except percentages) Net Revenues by Type Net Transaction Revenues (1) $ 1,652 $ 2,185 $ 2,098 $ 2,308 $ 2,476 $ 2,496 Marketing services and other revenues $ 1
Slide 22: Reconciliation of Organic FX-Neutral Revenue
RECONCILIATION OF ORGANIC FX-NEUTRAL REVENUE Three m onths ended March 31, June 30, Se ptem ber 30, Decem ber 31, March 31, June 30, 2020 2020 2020 2020 2021 2021 As Reported Revenue Grow th (2)% 26 % 26 % 30 % 45 % 14 % Acquisition/Disposition Impact 1% 2% 1% —% —% —% Foreign Currency Impact 2% 2%
Slide 23: GAAP to Non-GAAP Reconciliations: Guidance
GAAP TO NON-GAAP RECONCILIATIONS GUIDANCE Three Months Ending September 30, 2021 (in billions, except per share amounts) GAAP Non-GAAP (a) Net Revenue $2.42 - $2.47 $2.42 - $2.47 Diluted EPS $0.64 - $0.68 $0.86 - $0.90 (a) Estimated non-GAAP amounts above for the three months ending September 30, 20
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