Ebay Inc. · NASDAQ:EBAY
Ebay — Investor Presentation (June 2015)
38 slides from Ebay's investor presentation, Jun 8, 2015
Slide 1: eBay Investor Presentation June 8, 2015
ebay INVESTOR PRESENTATION June 8, 2015
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding our ability to grow our businesses, user base and user activity; our
Slide 3: The eBay Story, Looking Forward, Financial Outlook
The eBay Story A GLOBAL COMMERCE LEADER LOOKING FORWARD FINANCIAL OUTLOOK ebay 2
Slide 4: eBay will be the world's most vibrant marketplace
eBay will be the world’s most vibrant marketplace for discovering great value and unique selection. ebay 3
Slide 5: An Independent eBay
An Independent eBay Focus on Our Core Play to Our Strengths Build for the Long Term ebay 4
Slide 6: A Global Commerce Leader
A GLOBAL COMMERCE LEADER ebay 5
Slide 7: Our Business
Our Business $83B 157M 2014 GMV Active Buyers 800M 25M Live Listings Active Sellers $8.8B 2014 Revenue ebay Note as: Active Buyers, Live Listings and Active Sellers as of Q1 2015; GMV excludes vehicles and real estate 6 ebay ebay classifieds
Slide 8: Enduring Commerce Leader
Enduring Commerce Leader $83B GMV Mobile, Engagement $33B Trust, Value, Selection Global Business Expansion Business Sellers, Fixed Price Consumer Auction Site $1B 1996 1999 2002 2005 2008 2011 2014 ebay Note: GMV excludes vehicles and real estate 7
Slide 9: eBay Today
eBay Today A global commerce marketplace of b2c merchants offering new, fixed price inventory 59% International 75% b2c 76% New Items 80% Fixed Price % of GMV % of GMV % of Items Sold % of GMV ebay Notes: Data represents 2015 Q1; GMV excludes vehicles and real estate 8
Slide 10: A Leader In Mobile
A Leader In Mobile Cumulative Mobile App Downloads (M) Annual Mobile GMV ($B) % of GMV Touched by Mobile CAGR: 59% 266 $28 $20 52% 90 $11 ‘11 ‘12 ‘13 ‘14 ‘15 ‘12 ‘13 ‘14 ebay Notes: Cumulative Downloads and Percentage of GMV Touched by Mobile data represents 2015 Q1; GMV excludes vehicles and real e
Slide 11: A Leader in Engagement
A Leader in Engagement 2014 Average Minutes Per Month (US Unique Visitor) 2014 Average Visits Per Month (US Unique Visitor) 75 6.8 5.8 29 Top 100 ebay Top 100 ebay Internet Retailers Internet Retailers (Excluding eBay) (Excluding eBay) ebay Source: comScore 10
Slide 12: A Leading Trusted Brand
1 2 Google 3 Coca Cola 4 IBM 5 Microsoft 6 7 SAMSUNG 8 TOYOTA 9 10 Mercedes Benz 11 12 intel 13 Disney 14 15 amazon 16 ORACLE 17 hp 18 Gilette 19 LOUIS VUITTON 20 HONDA 21 H&M 22 23 24 pepsi 25 SAP 26 IKEA 27 ups 28 ebay 29 f 30 Pampers 31 32 Kellogg’s 33 HSBC 34 35 J.P. Morgan 36 ZARA 37 Canon 38 N
Slide 13: Significant Opportunity
Significant Opportunity Commerce Market: $14.4T Online Commerce Market: $1T Key Trends Globalization Continues Mobile is Mainstream Omnichannel and Engagement Accelerating Source: Euromonitor, 2014 data 12
Slide 14: Looking Forward
LOOKING FORWARD 13
Slide 15: Focusing On Our Core Customers
Focusing On Our Core Customers Core Buyers Enjoys Shopping Loves Great Deals Wants Unique Selection SMB Sellers Sales Velocity Business Intelligence Fair Standards Consumer Sellers Easy to List / Sell Price Realization Secure Payments ebay 14
Slide 16: Our Strategic Priorities
Our Strategic Priorities 1 A vibrant marketplace Great value and unique selection Improved seller tools Data-driven merchandising 2 A strong, stable & secure commerce platform Diversified traffic Security & stability Structured, cataloged data 3 Engaging product & brand experiences Exceptional multi
Slide 17: Highlight eBay's Unique Value
1 Highlight eBay’s Unique Value Android 5” Smartphones / Samsung Galaxy S5 Samsung Galaxy S5 11.000 reviews $320-99 -$650-99 Set a price alert New Starting at $490 Choose from 27 items As low as $14.50/mo See All Refurbished Starting at $400 Choose from 8 items As low as $11.50/mo See All Used Start
Slide 18: Deliver Great Seller Experiences
1 Deliver Great Seller Experiences ebay Seller Hub 11 35 $2,238 97 11 35 $2,238 97 ebay Seller Hub $28,100 57 29 11 $14,300 Simplified Onboarding, Registration and Streamlined Checkout Objective Standards and Feedback Unified Dashboard to Manage Business Inventory Insights to Scale Business ebay 17
Slide 19: Data-Driven Merchandising
1 Data-Driven Merchandising Mine Our Data on Right Products, Right Price Increase Visibility of Hot Selling Items Improve Event Performance and Sales Velocity Focus on Product Categories over Listings ebay 18
Slide 20: A Stable & Secure Platform
2 A Stable & Secure Platform Buyers Marketing Security Search Data Sellers ebay 19
Slide 21: Structured Data Unlocks Discoverability
2 Structured Data Unlocks Discoverability Search & SEO User Experience Merchandising Common Description Language Open Global Taxonomy Robust Product Catalog ebay 20
Slide 22: Engaging Experiences: Multi-screen Capabilities
3 Engaging Experiences: Multi-screen Capabilities ebay ebay ebay ebay 10:09 EBAY HIGH BIDDER ebay 21
Slide 23: Engaging Experiences: Interest Shopping
3 Engaging Experiences: Interest Shopping Mountain Biking Extreme Bike Frames 14 Items Pedal Power 14 Items $250-590 Shop now ebay 22
Slide 24: Recap: Where We Are Heading
Recap: Where We Are Heading Focus on our core buyers and sellers Showcase our spectrum of value and unique selection Leverage data to drive a better user experience Invest in structured data to improve discoverability Create engaging, multiscreen product experiences ebay 23
Slide 25: Financial Outlook
FINANCIAL OUTLOOK ebay 24
Slide 26: Financial Highlights
Financial Highlights A Global Commerce Leader Large and Growing Market with Favorable Trends Advantaged Marketplace Model Strong Profitability Substantial and Durable FCF Financial Flexibility ebay 25
Slide 27: Advantaged Business Model: Top-Line Growth and Cash Flow
Advantaged Business Model: Top-Line Growth and Cash Flow Active Buyers (M) CAGR: 12% 155 124 140 ‘12 ‘13 ‘14 Efficient Traffic Acquisition – Majority Organic Strong User Engagement Revenue ($B) CAGR: 9% $8.3 $8.8 $7.4 ‘12 ‘13 ‘14 Take Rate Model Aligned With Sellers Free Cash Flow ($B) CAGR: 32% $2.
Slide 28: Operating Discipline
Operating Discipline Sales & Marketing % of Revenue 23-25% ~Flat ‘15 Future Flat as % of revenue Channel Diversification Product & Technology % of Revenue 8-10% ~Flat ‘15 Future Flat as % of revenue Invest in customer experience and platform G&A + Loss Provision % of Revenue 12-14% Lower ‘15 Future
Slide 29: Financial Flexibility
Financial Flexibility Uses of cash ~$8B Int’l US Cash at Separation Net Cash: ~$1B Capex: 7-9% of Revenue Free Cash Flow Debt Capacity Investment Value Cash + Capacity Strategic Acquisitions M&A Offset Dilution + Opportunistic Current Authorization: $2B Capital Return ebay Notes: Illustrative of cur
Slide 30: Some Headwinds to Overcome
Some Headwinds to Overcome 2014 Challenges Impact on Business SEO Slower traffic & user acquisition Password reset Existing user activity down Our Strategic Priorities: • Focused on addressing these challenges • 18+ month transformation ebay 29
Slide 31: High-Level Financial Guidance
High-Level Financial Guidance FY’15 FY’16 Long-Term FX Neutral 0 – 5% 0 – 5% Revenue Growth Operating Margin 32 – 34% 31 – 35% Free Cash Flow $2.1 – 2.3B $2.3 – 2.5B EPS Growth Faster than revenue growth ebay 30
Slide 32: In Summary
IN SUMMARY ebay 31
Slide 33: Our Strategic Priorities
Our Strategic Priorities 1 A vibrant marketplace 2 A strong, stable & secure commerce platform 3 Engaging product & brand experiences ebay 32
Slide 34: World Class Management Team
World Class Management Team Devin Wenig Chief Executive Officer President of eBay Marketplaces since September 2011 CEO of Thomson Reuters Markets from April 2008 to August 2011 Scott Schenkel Chief Financial Officer SVP and CFO of eBay Marketplaces 8 years at eBay, 6 years as Marketplaces CFO 17 ye
Slide 35: An Independent eBay
An Independent eBay Focus on Our Core Play to Our Strengths Build for the Long Term ebay 34
Slide 36: eBay will be the world's most vibrant marketplace
eBay will be the world’s most vibrant marketplace for discovering great value and unique selection. ebay 35
Slide 37: Appendix
APPENDIX ebay 36
Slide 38: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow 2012 2013 2014 eBay Inc. (Source: eBay Inc. 10K) (In Millions) Net cash provided by operating activities $3,838 $4,995 $5,677 Less: Purchases of property and equipment $(1,257) $(1,250) $(1,271) Free cash flow $2,581 $3,745 $4,406 PayPal (Source: PayPal Form 10-A3 Fi