Wednesday, March 11, 2009

EBAY INC. ANNOUNCES THREE-YEAR ROADMAP FOR GROWTH

Company provides long-term financial outlook at analyst meeting

San Jose, Calif., – March 11, 2009 – eBay Inc. (NASDAQ: EBAY) today shared with investors at a company-held meeting a roadmap of its growth plans through 2011. The company provided details of its strategies to drive leadership in the company’s two core businesses — its PayPal global online payments business and its ecommerce marketplace and other ecommerce formats that connect buyers and sellers.

eBay Inc. continues to rapidly extend its global leadership in online payments through PayPal. John Donahoe, eBay Inc. president and chief executive officer, stressed the enormous potential of PayPal. Donahoe said PayPal has become a second core business for the company, with an opportunity bigger than eBay Marketplaces because PayPal targets all of ecommerce.

“We expect PayPal to become the next leading online global payments network,” Donahoe said. “Increasingly for online consumers, there’s no paper, no plastic – there’s just PayPal. We believe this business is one of the most exciting and high-potential opportunities anywhere online today.”

The company also provided details of its plans to stabilize and return its eBay Marketplaces business to ecommerce market growth rates. At the same time, eBay is diversifying across a range of formats such as classifieds and advertising that are expected to grow faster than ecommerce and help eBay connect buyers and sellers locally, nationally and globally.

“We are aggressively remaking and transforming our eBay Marketplace and diversifying the ways in which we compete in ecommerce,” Donahoe said. “We operate in what is still a young and rapidly evolving ecommerce landscape, and as the pace of change in ecommerce accelerates, we are not here to mimic or follow. We are here to lead and innovate. We are positioning this company to compete and win across a range of profitable ecommerce platforms focused on connecting buyers and sellers across the platform of their choice.”

Outlook

Based on current business trends and expectations, the company provided the following financial outlook for 2011:

• Total company revenues are expected to reach $10 billion to $12 billion in 2011, up from $8.5 billion in 2008, led by strong PayPal growth, Skype and other ecommerce formats.
• Earnings are expected to grow in the mid-single digit range in 2011.
• Free cash flow is anticipated to be between $6 billion and $7 billion over the three-year period from 2009-2011.
• PayPal is expected to significantly increase revenue to $4 billion to $5 billion, in 2011, up from $2.4 billion in 2008, driven by continued penetration on eBay, strong growth off eBay through its merchant services business and expansion into mobile and non-retail payments.
• The company’s eBay Marketplaces business is expected to achieve revenues of $5 billion to $7 billion, in 2011, with a continued shift toward more fixed price sales, a smaller online auction business, and more growth in other ecommerce formats such as classifieds and advertising. To drive long-term incremental growth, eBay Marketplaces also is more aggressively targeting the $500 billion global “secondary” market, which includes liquidation, out of season, excess and off-price inventory. We believe this is a fast-growing segment uniquely suited to eBay’s strengths.
• Skype is expected to more than double its revenue to over $1.0 billion in 2011. With more than 400 million registered users currently, Skype’s metrics continue to accelerate as the company further establishes leadership in free and paid internet-based voice and video communications, with growth opportunities in core consumer, mobile, businesses and platform. Skype’s leadership position has strengthened over the past year, driven by a new management team and the launch of many innovative products

Wednesday, January 21, 2009

eBAY INC. REPORTS FOURTH QUARTER AND FULL YEAR 2008 RESULTS

San Jose, Calif., January 21, 2009 — eBay Inc. (Nasdaq: EBAY) today reported financial results for its fourth quarter and year ended December 31, 2008. The ecommerce company posted fourth quarter revenue of $2.04 billion, representing a $145 million year-over-year decrease due primarily to the impact on eBay of a stronger dollar and macroeconomic conditions globally. PayPal, Classifieds, text and graphical advertising and Skype performed well, growing revenue on a year-over-year basis. The company recorded net income on a GAAP basis of $367 million or $0.29 per diluted share, and non-GAAP net income of $524 million or $0.41 per diluted share.

For the full year, eBay Inc. posted $8.54 billion in revenue, net income on a GAAP basis of $1.78 billion or $1.36 per diluted share, and non-GAAP net income of $2.24 billion or $1.71 per diluted share.

GAAP operating margin decreased to 22.3% for the quarter, from 28.7% for the same period last year. Non-GAAP operating margin decreased to 32.8% for the quarter, from 34.6% for the same period last year. For the full year GAAP operating margin came in at 24.3%, with non-GAAP operating margin at 32.1%.

eBay Inc. generated $684 million of operating cash flow and $525 million of free cash flow during the fourth quarter. The company’s full year, operating cash flow was $2.88 billion and free cash flow was $2.32 billion.

“While the holiday season was tough and competitive, our overall results for 2008 were strong,” said eBay Inc. President and CEO John Donahoe. “For 2008, we delivered double-digit revenue and earnings growth; made significant changes in our eBay business; and built a stronger, more diverse portfolio of leading e-commerce businesses. We will build on our strengths in 2009 while managing our business prudently in the continued challenging environment.”

Quarterly Business Highlights

• eBay Inc. completed the acquisition of Bill Me Later to further extend PayPal’s leadership position in online payments.
• eBay Inc. completed the acquisition of Den Bla Avis (dba.dk) and BilBasen (bilbasen.dk) in Denmark to further extend its global leadership position in online classifieds.
• eBay Inc. completed the acquisition of Ticket Technology to enhance the selling platform for StubHub.
• eBay Inc. completed the acquisition of Positronic, a developer of predictive search technology, to enhance eBay’s efforts to bolster search functionalities on its ecommerce sites.
• eBay Marketplace sellers in the U.S. lowered shipping costs significantly – dropping the average shipping costs to buyers by 25% compared to the fourth quarter of 2007.
• Jack Sheng of eForcity, Inc., became eBay Marketplace’s first ever 1 million feedback seller
• StubHub announced a partnership with the NHL franchise Buffalo Sabres, HSBC Arena and Tickets.com to enable an
  integrated ticketing solution for the team and arena.
• eBay’s Classifieds businesses averaged 91 million unique visitors per month during the quarter, representing an
  increase of 41% year over year.
• PayPal expanded its reach on the Web with the launch of merchant service account deals with American Airlines
  (U.S.), Hoyts Cinemas (Australia), Promarkt (Germany), Aldo Shoes (Canada), Jet2 (U.K.), Laura Ashley (U.K.),
  Amway (U.S.), and Zappos.com (U.S.).
• PayPal continued its global expansion with the launch of new localized sites in Mexico, Hong Kong and Singapore.
• PayPal extended its mobile strategy by partnering with RIM to become the exclusive payment option on the BlackBerry Application StoreFront.
• SkypeOut minutes reached 2.6 billion globally, a 61% increase year-over-year, driven by very strong adoption in Asia.
• Skype expanded its senior leadership team with the addition of Daniel Berg as chief technology officer and Christopher S. Dean as chief strategy officer.

Financial Highlights

(presented in millions, except per share data and percentages)

* Includes goodwill impairment charge of $1.39 billion recorded during the year ended Dec. 31, 2007.

Complete financial and operating metrics for FY08 are available in the press release.