Slide 1: Business & Financial Highlights Q1'23
Day BUSINESS & FINANCIAL | HIGHLIGHTS Q’V’23 | April 26, 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
Slide 4: Q1 Highlights
Ql Highlights $18.4 Billion Gross Merchandise Volume $2.5 Billion Revenue 29.6% Non-GAAP Operating Margin $1.11 Non-GAAP EPS 16 Million Enthusiast Buyers* © 2023 eBay. All rights reserved. ebay
Slide 5: Business Highlights: Accelerating P&A, Our Largest Focus Category
BUSINESS HIGHLIGHTS Accelerating P&A, Our Largest Focus Category © eBay Guaranteed Fit Launched Guaranteed Fit Designed a full-funnel Revamped the Tire Program in the US Marketing Campaign Installation Experience ebay
Slide 6: Image-Based Search
Image-Based Search A buyer has antique vase that The buyer uses a photo of the vase in Search breaks and they need to find a to discover visually similar ones replacement © 2023 eBay. All rights reserved.
Slide 7: Diversity, Equity and Inclusion
Diversity, Equity and Inclusion 7 ©2023 eBay. All rights reserved Cultivate a Sense of Belonging 175 Community Events Led by Our COls 100% Gender Pay Ratio for Total Compensation in the U.S. Build Inclusive Technology Include New plugin that incorporates modern Accessibility solutions M2M New machin
Slide 8: Financial Highlights
Slide 9: Q1'23 Results
Q1’23 Results | __cuidence amv $18.0 - $18.3 $18.4 (7)% - (6)% spot (5)% spot (in billions) (5)% ~(3)% FXN (2)% FXN (5)% - (4)% organic FXN (3)% organic FXN Revenue $2.46 - $2.50 $2.51 (1)% - 1% spot 1% spot (in billions) 1% - 2% FXN 3% FXN 0% - 2% organic FXN 2% organic FXN a eal 29.1% - 29.7% 29.6
Slide 10: GMV
FINANCIAL HIGHLIGHTS GMV ($ billions, Y/Y FXN growth) i int! ius 19.4 7% i 77 18.2 184 (% (6% (2)% Q4 21 Ql 22 Q2 22 Q3 22 Q4 22 Q123 Organic FXN___(11)% (17)% (14)% (5)% (6)% (3)%
Slide 11: Revenue
FINANCIAL Revenue HIGHLIGHTS = (§ millions, Y/Y FXN growth) —@® Net rev take rate ll Net revenue 2,613 5% 2,483 2,510 (5)% 3% 12.6% 12.8% Q4 21 Ql 22 Q222 Q3 22 Q4 22 Ql 23 Organic FXN 5% (5)% (6% (2)% (0% 2%
Slide 12: Advertising Revenue
FINANCIAL HIGHLIGHTS Advertising Revenue ($ millions, Y/Y FXN growth) 1P Ads Revenue 3P Ads Revenue 319 317 19% 23% 290 285 267 275 22% (2% 4% 276 232 285 oe 225 232 = ae 3% 2% 6% 53 42 43 4] 43 (15)% (18)% (9% (3)% (16)% ee. Q4 21 Ql 22 Q222 Q3 22 Q4 22 Q123 1P vs. GMV +15pts +19pts +20pts +32pts +
Slide 13: Non-GAAP Expenses
Non-GAAP Expenses (% of revenue) Operating Expense at ~43.1%, up 2.8pts Y/Y Cost of Revenue Sales & Marketing ProductDevelopment General & Admin Transaction Losses 18.6% 19.6% mE —— Ql 22 Ql23 Ql22 Ql23 Qi22 Ql23 Qi22 Qi23 Qi22 Ql23 elS spend* & Higher focus Additional Higher employee Lower bad debt
Slide 14: Non-GAAP Operating Income & Margin
Non-GAAP Operating Income & Margin ($ millions) ® Non-GAAP operating margin Hl Non-GAAP operating income 805 750 744 Q4 21 Ql 22 Q222 Q3 22 Q4.22 Q123 © 2023 eBay. All rights reserved.
Slide 15: Earnings Per Share
FINANCIAL Earnings Per Share HIGHLIGHTS —@ Non-GAAP EPS Y/Y Growth Non-GAAP EPS $1.1 $1.05 $1.05 $1.07 $0.99 $1.00 Q421 Qi22 Q2 22 Q3 22 Q4 22 Ql23 GAAP EPS. $(1.47) $(2.28) $(0.96) $(0.13) $1.23 $1.05 ee zs a pa se a a
Slide 16: Free Cash Flow
Free Cash Flow ($ millions) —e Y/Y Growth (1) Free Cash Flow 709 546 Q4 21 Ql 22 Q2 22 Q3 22 Q4 22 Q1 23 CapEx%ofRev 4% 3% 5% 4% 6% 5% FCF % of Rev 4% 22% 19% 27% 21% 28% © 2023 eBay. All rights reserved. 6
Slide 17: Cash & Debt
Cash & Debt ($ billions) + Maintain current BBB+ rating * 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 Q123 Ending Cash and approximately $3.5B Investments* $(2.7) Credit Ratios * 1.2x net debt *
Slide 18: Capital Returns
Capital Returns ($ millions) Approximately $2.6B repurchase authorization remaining as of March 31, 2023 3,107 ey MM Dividend I Stock repurchases 1,379 1,413 129 12 421 419 384 Q421 Ql 22 Q2 22 Q3 22 Q4 22 Ql 23 Avg Diluted Shares* 615 593 561 551 544 541 © 2023 eBay. Alll rights reserved. 8
Slide 19: Investments
FINANCIAL Investments HIGHLIGHTS ($2.9% 2.98 ) $0.3B )( $0.1B \ Adevinta y Adyen warrant Kakao Bank 404M shares Warrant acquired in Q2’18 (7 yr term, up to 33% current ownership 5% ownership) Must maintain 25% = warrant value based on ownership through probability of vesting 3 Q3'23 remaining tranch
Slide 20: Q2'23 Guidance
FINANCIAL HIGHLIGHTS Q2’23 Guidance GMV (in billions) Revenue (in billions) Non-GAAP Op Margin $17.8 - $18.2 (4)% - (2)% spot (4)% - (1)% FXN (5)% - (2)% organic FXN $2.47 - $2.54 2% - 5% spot 2% - 5% FXN 1% - 4% organic FXN 26.1% - 26.8% (3)% - 2% Volume driven by: + Macro headwinds, including infl
Slide 21: FY'23 Context
FY’23 Context + Expect sequential GMV growth to roughly approximate 2022 seasonality, excluding FX, starting from Q2 spot GMV guidance range Pen + De minimis FX impact on Y/Y GMV growth in 2023 (at current rates) + Expect organic take rate expansion in 2023, excluding the impact of FX * 2023 total n
Slide 22: Q&A
Slide 23: Appendix
Appendix
Slide 24: GAAP to Non-GAAP Quarterly Reconciliations
GAAP to Non-GAAP Quarterly Reconciliations Operating Margin ‘Three months ended December 31, March 31, ‘June 30, September 30, December Si, March 31, 2021 2022 2022 2022 2023 GAAP operating income $ 688 $ 2 $ 525 $ 568 $ 565 $ 558 Stock-based compensation expense and related employer payroll taxes 1
Slide 25: GAAP to Non-GAAP Quarterly Reconciliations
GAAP to Non-GAAP Quarterly Reconciliations Net Income / EPS Three months ended December 31, March Si, June 30, September 30, December 31, March 31, 2021 2022 2022 2022 2022 2023 (in millions, except per shere deta) GAAP Income (Loss) from continuing operations: $s (893) $ 339) $ (636) $ (70) $ ons 5
Slide 26: Earnings Per Share, Non-GAAP to GAAP Recon
Earnings Per Share, Non-GAAP to GAAP Recon $(0.20) $(0.14) $1.05 Non-GAAP EPS Investments * Stock-based Tax rate / Other GAAP EPS compensation *
Slide 27: GAAP to Non-GAAP Quarterly Reconciliations
GAAP to Non-GAAP Quarterly Reconciliations Statement of Income Three Months Ended ‘Three Months Ended March 31, 2023 March 31, 2022 ‘Non-GAAP Non-GAAP Reported Entries Non-GAAP Reported Entries Non-GAAP (in millions, except per share data end percentages) Net revenues $ 2510 $ = $s 250 6$ 2,483 $ =
Slide 28: Calculation of Free Cash Flow
Calculation of Free Cash Flow Three months ended December 31, March 31, June 30, September 30, December 31, March 31, 2021 2022 2022 2022 2022 2023 (in millions) Net cash provided by continuing operating activities $ 475 $ 629 $ 577 $ 735 $ 686 $ 841 Less: Purchases of property and equipment, net (1
Slide 29: Reconciliation of Total Revenue
Reconciliation of Total Revenue Three months ended December 31, March 31, June 30, September 30, December 31, March 31, 2021 2022 2022 2022 2023 {in millions) Net revenues? $ 2,613 $ 2,483 $ 2,422 $ 2,380 $ 2,510 $ 2,510 (1) Hedge gain/(loss) $ -$ 6$ 9$ 36 $ 89 $ 29 (2) Foreign currency impact $ 7$
Slide 30: Reconciliation of Organic FX-Neutral Revenue
Reconciliation of Organic FX-Neutral Revenue Three months ended December 31, March 31, June 30, September 30, December 31, March 31, 2021 2022 2022 2022 2022 2023 As Reported Revenue Growth 5% (6)% (9% (5% (4)% 1% Acquisition/Disposition Impact —-% —-% —-% —-% —-% (9% Foreign Currency Impact —% 1% 3
Slide 31: Calculation of Period-End Fully Diluted Share Count
Calculation of Period-End Fully Diluted Share Count Three months ended December 31, March 31, June 30, September 30, December 31, March 31, 2021 2022 2022 2022 2022 2023 {in millions) Quarter-end common shares outstanding 594 s7 549 544 539 536 Quarter-end shares underlying outstanding RSUs 20 v7 24
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Guidance Three Months Ending June 30, 2023 (in billions, except per share amounts) GAAP Non-GAAP (a) Net Revenue $2.47 - $2.54 $2.47 - $2.54 Diluted EPS $0.65 - $0.70 $0.96 - $1.01 (a) Estimated non-GAAP amounts above for the three months ending June 30, 2023 reflect
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