Slide 1: Business & Financial Highlights Q3'23
BUSINESS & FINANCIAL HIGHLIGHTS Q3’23 November 7, 2023
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: Q3 Highlights
BUSINESS Q3 Highlights $18.0 Billion HIGHLIGHTS Gross Merchandise Volume Q3’23 $2.5 Billion Revenue 26.4% Non-GAAP Operating Margin $1.03 Non-GAAP Diluted EPS 16 Million Enthusiast Buyers* © 2023 eBay. All rights reserved. * Enthusiast Buyers are defined as buyers with at least 6 purchase days and $
Slide 5: Relevant Experiences
BUSINESS Relevant Experiences HIGHLIGHTS Q3’23 Launched direct submissions Hosted over 1,000 eBay Live events, eBay Guaranteed Fit programs* to the eBay Vault from growing GMV 4x expanded to Germany & the UK personal collections quarter over quarter © 2023 eBay. All rights reserved. * eBay Assured F
Slide 6: Scalable Solutions
BUSINESS Scalable Solutions HIGHLIGHTS Q3’23 400 Million+ Live Listings Launched Smart Targeting Ads Shippable to international buyers Powered by AI for Promoted Listings Advanced Smart targeting eBay International Shipping Your smart Promoted Listings Advanced campaign will automatically update ove
Slide 7: Magical Innovations
BUSINESS Magical Innovations HIGHLIGHTS Q3’23 Create a listing Upload a photo Let AI write the rest All done in seconds © 2023 eBay. All rights reserved. 7
Slide 8: Impact
BUSINESS Impact HIGHLIGHTS Q3’23 Released our Celebrating Recognized for second annual Small 20 years of eBay our purpose-driven Business Report for Charity community © 2023 eBay. All rights reserved. 8
Slide 9: Reinvent the future of ecommerce for enthusiasts
BUSINESS HIGHLIGHTS Q3’23 WHERE WE ARE GOING Reinvent the future of ecommerce for enthusiasts © 2023 eBay. All rights reserved. 9
Slide 10: Financial Highlights
Financial Highlights
Slide 11: Q3'23 Results
FINANCIAL Q3’23 Results HIGHLIGHTS Q3’23 Guidance Actuals GMV $17.6 - $18.0 $18.0 (in billions) (1)% - 2% spot (3)% - (1)% FXN 2% spot 0% FXN (4)% - (1)% organic FXN (1)% organic FXN Revenue $2.46 - $2.52 $2.50 (in billions) 3% - 6% spot 3% - 5% FXN 5% spot 5% FXN 2% - 4% organic FXN 4% organic FXN
Slide 12: GMV
FINANCIAL GMV HIGHLIGHTS ($ billions, Y/Y FXN growth) Q3’23 Int’l US 18.5 18.2 18.4 18.2 (14)% 17.7 (2)% 18.0 (6)% (1)% 0% (5)% 9.5 9.3 9.4 9.5 9.4 (15)% 9.0 (4)% (1)% (4)% 1% 0% 9.0 8.7 8.9 9.0 8.7 8.6 (13)% (7)% (9)% (3)% (3)% (1)% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Organic FXN (14)% (5)% (6)% (3
Slide 13: Revenue
FINANCIAL Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) Net rev take rate Q3’23 Net revenue 2,510 2,510 2,540 2,500 2,422 2,380 (1)% 3% 6% 5% (6)% (2)% 13.4% 13.8% 13.6% 13.9% 13.9% 13.1% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Organic FXN (6)% (2)% (1)% 2% 5% 4% © 2023 eBay. All rights reserved. Calc
Slide 14: Advertising Revenue
FINANCIAL Advertising Revenue HIGHLIGHTS ($ millions, Y/Y FXN growth) 1P Ads Revenue Q3’23 3P Ads Revenue 367* 366 35% 24% 319 317 19% 23% 290 275 22% 4% 341 345 276 285 49% 36% 232 249 27% 31% 6% 27% 43 41 43 32 26 21 (9)% (3)% (16)% (23)% (39)% (51)% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 1P vs. GMV
Slide 15: Non-GAAP Expenses
FINANCIAL Non-GAAP Expenses HIGHLIGHTS (% of revenue) Q3’23 Operating Expense at ~46.1%, up 1.6pts Y/Y Cost of Revenue Sales & Marketing Product Development General & Admin Transaction Losses 26.6% 27.5% 21.9% 21.7% 12.3% 13.3% 7.4% 7.7% 2.9% 3.4% Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Q3 2
Slide 16: Non-GAAP Operating Income & Margin
FINANCIAL Non-GAAP Operating Income & Margin HIGHLIGHTS ($ millions) Q3’23 Non-GAAP operating margin Non-GAAP operating income 750 744 694 690 684 658 29.9% 29.6% 28.7% 28.9% 26.9% 26.4% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 © 2023 eBay. All rights reserved. Reconciliation of Non-GAAP operating income
Slide 17: Earnings Per Diluted Share
FINANCIAL Earnings Per Diluted Share HIGHLIGHTS Q3’23 Non-GAAP EPS Y/Y Growth Non-GAAP EPS $1.11 $1.07 $1.00 $1.03 $1.03 $0.99 11% 5% 5% 2% 3% 0% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 GAAP EPS $(0.96) $(0.13) $1.23 $1.05 $0.32 $2.46 GAAP Y/Y ** ** ** ** ** ** © 2023 eBay. All rights reserved. ** Not m
Slide 18: Free Cash Flow
FINANCIAL Free Cash Flow Y/Y Growth HIGHLIGHTS ($ millions) Free Cash Flow Q3’23 777 709 633 533 43% 492 466 26% 23% 30% 6% (49)% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 CapEx % of Rev 5% 4% 6% 5% 4% 3% FCF % of Rev 19% 27% 21% 28% 19% 31% © 2023 eBay. All rights reserved. Calculation of Free Cash Flow
Slide 19: Cash & Debt
FINANCIAL Cash & Debt HIGHLIGHTS ($ billions) Q3’23 Targets • Maintain current BBB+ rating $5.4 • Targeting mid-term leverage of approximately 1.5x net debt and gross debt below 3.0x EBITDA Debt Net Debt • Long-term cash and investment balance of approximately $3.5B Q3 23 Ending Cash and Investments
Slide 20: Capital Returns
FINANCIAL Capital Returns HIGHLIGHTS ($ millions) Q3’23 Dividend Approximately $1.7B repurchase authorization remaining as of September 30, 2023 Stock repurchases 1,413 121 783 132 1,292 421 419 384 383 120 119 134 133 651 301 300 250 250 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Avg Diluted Shares* 561 5
Slide 21: Investments
FINANCIAL Investments HIGHLIGHTS Q3’23 $4.0B $0.2B $0.1B $0.3B Adevinta Adyen warrant Kakao Bank Gmarket 404M shares Warrant acquired in 5.4M shares 19.99% private stake Q2’18 (7 yr term, up to 5% 33% current ownership ownership) Value assessed based on the fair value option Warrant value based on p
Slide 22: Q4'23 Guidance
FINANCIAL Q4’23 Guidance HIGHLIGHTS Q3’23 Guidance Context GMV $17.9 - $18.3 • Volume driven by: • Macro headwinds, including inflationary pressures, rising interest (in billions) (2)% - 0% spot (4)% - (2)% FXN rates, and low consumer confidence (4)% - (2)% organic FXN • Offset by focus category exe
Slide 23: FY'23 Guidance
FINANCIAL FY’23 Guidance HIGHLIGHTS Q3’23 Guidance Context GMV $72.5 - $72.9 • Volume driven by: • Macro headwinds, including inflationary pressures, rising interest (in billions) (2)% - (1)% spot (2)% - (1)% FXN rates, and low consumer confidence (2)% - (2)% organic FXN • De minimis FX impact on Y/
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: GAAP to Non-GAAP Quarterly Reconciliations: Operating Margin
GAAP to Non-GAAP Quarterly Reconciliations Operating Margin © 2023 eBay. All rights reserved. 26
Slide 27: GAAP to Non-GAAP Quarterly Reconciliations: Net Income / Diluted EPS
GAAP to Non-GAAP Quarterly Reconciliations Net Income / Diluted EPS © 2023 eBay. All rights reserved. 27
Slide 28: Earnings Per Diluted Share, Non-GAAP to GAAP Recon
Earnings Per Diluted Share, Non-GAAP to GAAP Recon $(0.22) $(0.13) $1.78 $2.46 $1.03 Non-GAAP EPS Investments* Stock-based Tax rate / Other GAAP EPS compensation* © 2023 eBay. All rights reserved. All reported results are from continuing operations * “Investments” includes gains or losses on investm
Slide 29: GAAP to Non-GAAP Quarterly Reconciliations: Statement of Income
GAAP to Non-GAAP Quarterly Reconciliations Statement of Income
Slide 30: Calculation of Free Cash Flow
Calculation of Free Cash Flow © 2023 eBay. All rights reserved. 30
Slide 31: Reconciliation of Total Revenue
Reconciliation of Total Revenue © 2023 eBay. All rights reserved. 31
Slide 32: Reconciliation of Organic FX-Neutral Revenue
Reconciliation of Organic FX-Neutral Revenue © 2023 eBay. All rights reserved. 32
Slide 33: Calculation of Period-End Fully Diluted Share Count
Calculation of Period-End Fully Diluted Share Count © 2023 eBay. All rights reserved. 33
Slide 34: GAAP to Non-GAAP Reconciliations: Guidance
GAAP to Non-GAAP Reconciliations Guidance © 2023 eBay. All rights reserved. 34
Slide 35: Slide 35