Delaware | 000-24821 | 77-0430924 |
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
of incorporation) | Identification No.) |
99.1 | Press release dated January 22, 2014 |
eBay Inc. | ||
(Registrant) | ||
Date: January 22, 2014 | /s/ Michael R. Jacobson | |
Michael R. Jacobson | ||
Title: Senior Vice President, Legal Affairs, | ||
General Counsel and Secretary | ||
Exhibit Number | Description |
99.1 | Press release dated January 22, 2014 |
• | Volume Accelerated to 21% for Full Year |
• | Revenue Growth 14% for Full Year |
• | Non-GAAP Earnings Growth 15% for Full Year |
• | Company announces $5 Billion Stock Repurchase Authorization |
• | Company Discloses Proposals Received from Investor Carl Icahn |
Fourth Quarter | Full Year | |||||||
2013 | 2012 | Change | 2013 | 2012 | Change | |||
eBay Inc. | ||||||||
Net revenue | $4,530 | $3,992 | $538 | 13% | $16,047 | $14,072 | $1,975 | 14% |
Enabled Commerce Volume (ECV) | $61,201 | $50,186 | $11,015 | 22% | $212,100 | $175,837 | $36,263 | 21% |
GAAP | ||||||||
Net income | $850 | $751 | $99 | 13% | $2,856 | $2,609 | $247 | 9% |
Earnings per diluted share | $0.65 | $0.57 | $0.08 | 14% | $2.18 | $1.99 | $0.19 | 9% |
Non-GAAP | ||||||||
Net income | $1,067 | $927 | $140 | 15% | $3,556 | $3,100 | $456 | 15% |
Earnings per diluted share | $0.81 | $0.70 | $0.11 | 16% | $2.71 | $2.36 | $0.35 | 15% |
Business Units | ||||||||
Payments | ||||||||
Net revenue | $1,836 | $1,541 | $295 | 19% | $6,628 | $5,574 | $1,054 | 19% |
Net total payment volume | $51,973 | $41,471 | $10,502 | 25% | $179,663 | $144,937 | $34,726 | 24% |
Marketplaces | ||||||||
Net revenue | $2,299 | $2,050 | $249 | 12% | $8,284 | $7,398 | $886 | 12% |
Gross merchandise volume (excl. vehicles) | $21,518 | $19,105 | $2,413 | 13% | $76,495 | $67,763 | $8,732 | 13% |
Enterprise | ||||||||
Net revenue | $392 | $398 | $(6) | (2)% | $1,112 | $1,083 | $29 | 3% |
Merchandise Sales | $1,771 | $1,595 | $176 | 11% | $4,180 | $3,682 | $498 | 14% |
• | Operating margin — GAAP operating margin increased to 22.6% for the fourth quarter of 2013, compared to 21.9% for the same period last year. Non-GAAP operating margin increased to 29.2% for the fourth quarter, compared to 28.5% for the same period last year. |
• | Taxes — The GAAP effective tax rate for the fourth quarter of 2013 was 17%, compared to 14% for the fourth quarter of 2012. For the fourth quarter of 2013, the non-GAAP effective tax rate was 20% compared to 18% for the fourth quarter of 2012. The increase in the GAAP effective tax rate was due primarily to an increase in earnings in higher tax jurisdictions. |
• | Cash flow — The company generated $1.7 billion of operating cash flow and $1.4 billion of free cash flow during the fourth quarter. For the full year the company generated $5.0 billion of operating cash flow and $3.7 billion of free cash flow. |
• | Stock repurchase program — The company repurchased approximately $254 million of its common stock in the fourth quarter. |
• | Cash and cash equivalents and non-equity investments — The company's cash and cash equivalents and non-equity investments portfolio totaled $12.8 billion at December 31, 2013. |
• | Proposal from Carl Icahn — The company also announced today that it has received a notice from Carl Icahn indicating that he has nominated two of his employees to its Board of Directors and submitted a non-binding proposal for a spinoff of its PayPal business into a separate company. The notice stated that companies controlled by Mr. Icahn had, earlier this month, acquired shares and derivative securities that give him an economic interest of approximately 0.82% in the company. |
• | First quarter 2014 — eBay expects net revenues in the range of $4,150 - $4,250 million with GAAP earnings per diluted share in the range of $0.51 - $0.53 and non-GAAP earnings per diluted share in the range of $0.65 - $0.67, which includes dilution of $0.02 and $0.01, respectively, resulting from the Braintree acquisition. |
• | Full year 2014 — eBay expects net revenues in the range of $18,000 - $18,500 million with GAAP earnings per diluted share in the range of $2.40 - $2.45 and non-GAAP earnings per diluted share in the range of $2.95 - $3.00, which includes dilution of $0.08 and $0.03, respectively, resulting from the Braintree acquisition. |
• | Full year 2015 — eBay now expects net revenues in the range of $20,500 - $21,500 million with non-GAAP earnings per diluted share growth of greater than 10%. |
Investor Relations Contact: | Tracey Ford; Tom Hudson | tford@ebay.com; thhudson@ebay.com |
Media Relations Contact: | Amanda Miller | press@ebay.com |
Investor Information Request: | 408-376-7493 | |
Company News: | http://www.ebayinc.com/news | |
Investor Relations website: | http://investor.ebayinc.com |
December 31, 2013 | December 31, 2012 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,494 | $ | 6,817 | |||
Short-term investments | 4,531 | 2,591 | |||||
Accounts receivable, net | 899 | 822 | |||||
Loans and interest receivable, net | 2,789 | 2,160 | |||||
Funds receivable and customer accounts | 9,260 | 8,094 | |||||
Other current assets | 1,310 | 914 | |||||
Total current assets | 23,283 | 21,398 | |||||
Long-term investments | 4,971 | 3,044 | |||||
Property and equipment, net | 2,760 | 2,491 | |||||
Goodwill | 9,267 | 8,537 | |||||
Intangible assets, net | 941 | 1,128 | |||||
Other assets | 266 | 476 | |||||
Total assets | $ | 41,488 | $ | 37,074 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 6 | $ | 413 | |||
Accounts payable | 309 | 301 | |||||
Funds payable and amounts due to customers | 9,260 | 8,094 | |||||
Accrued expenses and other current liabilities | 2,799 | 1,916 | |||||
Deferred revenue | 158 | 137 | |||||
Income taxes payable | 107 | 63 | |||||
Total current liabilities | 12,639 | 10,924 | |||||
Deferred and other tax liabilities, net | 841 | 972 | |||||
Long-term debt | 4,117 | 4,106 | |||||
Other liabilities | 244 | 207 | |||||
Total liabilities | 17,841 | 16,209 | |||||
Total stockholders' equity | 23,647 | 20,865 | |||||
Total liabilities and stockholders' equity | $ | 41,488 | $ | 37,074 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Net revenues | $ | 4,530 | $ | 3,992 | $ | 16,047 | $ | 14,072 | |||||||
Cost of net revenues (1) | 1,449 | 1,223 | 5,036 | 4,216 | |||||||||||
Gross profit | 3,081 | 2,769 | 11,011 | 9,856 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing (1) | 837 | 793 | 3,060 | 2,913 | |||||||||||
Product development (1) | 450 | 416 | 1,768 | 1,573 | |||||||||||
General and administrative (1) | 461 | 435 | 1,703 | 1,567 | |||||||||||
Provision for transaction and loan losses | 238 | 168 | 791 | 580 | |||||||||||
Amortization of acquired intangible assets | 73 | 83 | 318 | 335 | |||||||||||
Total operating expenses | 2,059 | 1,895 | 7,640 | 6,968 | |||||||||||
Income from operations | 1,022 | 874 | 3,371 | 2,888 | |||||||||||
Interest and other income (expense), net | 6 | 3 | 95 | 196 | |||||||||||
Income before income taxes | 1,028 | 877 | 3,466 | 3,084 | |||||||||||
Provision for income taxes | (178 | ) | (126 | ) | (610 | ) | (475 | ) | |||||||
Net income | $ | 850 | $ | 751 | $ | 2,856 | $ | 2,609 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.66 | $ | 0.58 | $ | 2.20 | $ | 2.02 | |||||||
Diluted | $ | 0.65 | $ | 0.57 | $ | 2.18 | $ | 1.99 | |||||||
Weighted average shares: | |||||||||||||||
Basic | 1,295 | 1,294 | 1,295 | 1,292 | |||||||||||
Diluted | 1,310 | 1,318 | 1,313 | 1,313 | |||||||||||
(1) Includes stock-based compensation as follows: | |||||||||||||||
Cost of net revenues | $ | 34 | $ | 13 | $ | 79 | $ | 55 | |||||||
Sales and marketing | 47 | 36 | 159 | 135 | |||||||||||
Product development | 67 | 37 | 187 | 138 | |||||||||||
General and administrative | 49 | 41 | 184 | 160 | |||||||||||
$ | 197 | $ | 127 | $ | 609 | $ | 488 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 850 | $ | 751 | $ | 2,856 | $ | 2,609 | |||||||
Adjustments: | |||||||||||||||
Provision for transaction and loan losses | 238 | 168 | 791 | 580 | |||||||||||
Depreciation and amortization | 367 | 319 | 1,400 | 1,200 | |||||||||||
Gain on sale of equity investments | — | — | (75 | ) | — | ||||||||||
Stock-based compensation | 197 | 127 | 609 | 488 | |||||||||||
Gain on divested businesses | — | — | — | (118 | ) | ||||||||||
Changes in assets and liabilities, net of acquisition effects | 61 | 21 | (586 | ) | (921 | ) | |||||||||
Net cash provided by operating activities | 1,713 | 1,386 | 4,995 | 3,838 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment, net | (281 | ) | (296 | ) | (1,250 | ) | (1,257 | ) | |||||||
Changes in principal loans receivable, net | (399 | ) | (392 | ) | (794 | ) | (727 | ) | |||||||
Purchases of investments | (1,779 | ) | (1,658 | ) | (7,505 | ) | (3,128 | ) | |||||||
Maturities and sales of investments | 1,233 | 483 | 3,943 | 1,421 | |||||||||||
Acquisitions, net of cash acquired | (784 | ) | — | (869 | ) | (143 | ) | ||||||||
Repayment of note receivable and sale of related equity investments | — | — | 485 | — | |||||||||||
Proceeds from divested business, net of cash disposed | — | — | — | 144 | |||||||||||
Other | (8 | ) | 4 | (22 | ) | (73 | ) | ||||||||
Net cash provided by (used in) investing activities | (2,018 | ) | (1,859 | ) | (6,012 | ) | (3,763 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of common stock | 136 | 124 | 437 | 483 | |||||||||||
Repurchases of common stock | (254 | ) | (256 | ) | (1,342 | ) | (898 | ) | |||||||
Excess tax benefits from stock-based compensation | 21 | 35 | 201 | 130 | |||||||||||
Tax withholdings related to net share settlements of restricted stock awards and units | (20 | ) | (34 | ) | (267 | ) | (186 | ) | |||||||
Net borrowings (repayments) under commercial paper program | — | — | — | (550 | ) | ||||||||||
Proceeds from issuance of long-term debt | — | — | — | 2,976 | |||||||||||
Repayment of acquired debt | (400 | ) | — | (400 | ) | — | |||||||||
Funds receivable and customer accounts | (170 | ) | (3,288 | ) | (1,149 | ) | (4,126 | ) | |||||||
Funds payable and amounts due to customers | 170 | 3,288 | 1,149 | 4,126 | |||||||||||
Other | 17 | — | 17 | (4 | ) | ||||||||||
Net cash provided by (used in) financing activities | (500 | ) | (131 | ) | (1,354 | ) | 1,951 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 19 | 90 | 48 | 100 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (786 | ) | (514 | ) | (2,323 | ) | 2,126 | ||||||||
Cash and cash equivalents at beginning of period | 5,280 | 7,331 | 6,817 | 4,691 | |||||||||||
Cash and cash equivalents at end of period | $ | 4,494 | $ | 6,817 | $ | 4,494 | $ | 6,817 |
Net Revenues by Type | |||||||||||||||
Three Months Ended | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||
Net transaction revenues | (In millions, except percentages) | ||||||||||||||
Marketplaces | $ | 1,882 | $ | 1,668 | $ | 1,637 | $ | 1,608 | $ | 1,672 | |||||
Current quarter vs prior quarter | 13 | % | 2 | % | 2 | % | (4 | )% | 12 | % | |||||
Current quarter vs prior year quarter | 13 | % | 12 | % | 10 | % | 13 | % | 16 | % | |||||
Percent of Marketplaces revenue from international | 57 | % | 54 | % | 55 | % | 55 | % | 56 | % | |||||
Payments | 1,693 | 1,493 | 1,475 | 1,435 | 1,432 | ||||||||||
Current quarter vs prior quarter | 13 | % | 1 | % | 3 | % | — | % | 13 | % | |||||
Current quarter vs prior year quarter | 18 | % | 18 | % | 20 | % | 18 | % | 24 | % | |||||
Percent of Payments revenue from international | 57 | % | 56 | % | 56 | % | 55 | % | 56 | % | |||||
Enterprise | 333 | 185 | 194 | 186 | 333 | ||||||||||
Current quarter vs prior quarter | 80 | % | (5 | )% | 4 | % | (44 | )% | 97 | % | |||||
Current quarter vs prior year quarter | — | % | 9 | % | 18 | % | 2 | % | 13 | % | |||||
Percent of Enterprise revenue from international | 3 | % | 4 | % | 5 | % | 5 | % | 3 | % | |||||
Total net transaction revenues | 3,908 | 3,346 | 3,306 | 3,229 | 3,437 | ||||||||||
Current quarter vs prior quarter | 17 | % | 1 | % | 2 | % | (6 | )% | 17 | % | |||||
Current quarter vs prior year quarter | 14 | % | 14 | % | 14 | % | 14 | % | 19 | % | |||||
Marketing services and other revenues | |||||||||||||||
Marketplaces | 417 | 359 | 364 | 349 | 378 | ||||||||||
Current quarter vs prior quarter | 16 | % | (1 | )% | 4 | % | (8 | )% | 20 | % | |||||
Current quarter vs prior year quarter | 10 | % | 14 | % | 13 | % | 15 | % | 15 | % | |||||
Percent of Marketplaces revenue from international | 73 | % | 75 | % | 75 | % | 75 | % | 72 | % | |||||
Payments | 143 | 127 | 149 | 113 | 109 | ||||||||||
Current quarter vs prior quarter | 13 | % | (15 | )% | 32 | % | 4 | % | 7 | % | |||||
Current quarter vs prior year quarter | 31 | % | 25 | % | 21 | % | 22 | % | 32 | % | |||||
Percent of Payments revenue from international | 4 | % | 3 | % | 3 | % | 4 | % | 5 | % | |||||
Enterprise | 59 | 53 | 52 | 50 | 65 | ||||||||||
Current quarter vs prior quarter | 11 | % | 2 | % | 4 | % | (23 | )% | 14 | % | |||||
Current quarter vs prior year quarter | (8 | )% | (7 | )% | (9 | )% | (9 | )% | (6 | )% | |||||
Percent of Enterprise revenue from international | — | % | — | % | — | % | — | % | — | % | |||||
Corporate and other | 15 | 14 | 14 | 12 | 12 | ||||||||||
Total marketing services and other revenues | 634 | 553 | 579 | 524 | 564 | ||||||||||
Current quarter vs prior quarter | 15 | % | (4 | )% | 10 | % | (7 | )% | 16 | % | |||||
Current quarter vs prior year quarter | 12 | % | 14 | % | 13 | % | 15 | % | 16 | % | |||||
Elimination of inter-segment net revenue and other (1) | (12 | ) | (7 | ) | (8 | ) | (5 | ) | (9 | ) | |||||
Total net revenues | $ | 4,530 | $ | 3,892 | $ | 3,877 | $ | 3,748 | $ | 3,992 | |||||
Current quarter vs prior quarter | 16 | % | — | % | 3 | % | (6 | )% | 17 | % | |||||
Current quarter vs prior year quarter | 13 | % | 14 | % | 14 | % | 14 | % | 18 | % |
(1) | Represents revenue generated between our reportable segments. |
Net Revenues by Geography (1) | Three Months Ended | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
U.S. net revenues | $ | 2,180 | $ | 1,873 | $ | 1,870 | $ | 1,789 | $ | 1,949 | |||||
Current quarter vs prior quarter | 16 | % | — | % | 5 | % | (8 | )% | 19 | % | |||||
Current quarter vs prior year quarter | 11 | % | 14 | % | 16 | % | 13 | % | 17 | % | |||||
Percent of total | 48 | % | 48 | % | 48 | % | 48 | % | 49 | % | |||||
International net revenues | 2,350 | 2,019 | 2,007 | 1,959 | 2,043 | ||||||||||
Current quarter vs prior quarter | 16 | % | 1 | % | 2 | % | (4 | )% | 16 | % | |||||
Current quarter vs prior year quarter | 16 | % | 15 | % | 12 | % | 16 | % | 19 | % | |||||
Percent of total | 52 | % | 52 | % | 52 | % | 52 | % | 51 | % | |||||
Total net revenues | $ | 4,530 | $ | 3,892 | $ | 3,877 | $ | 3,748 | $ | 3,992 | |||||
Current quarter vs prior quarter | 16 | % | — | % | 3 | % | (6 | )% | 17 | % | |||||
Current quarter vs prior year quarter | 13 | % | 14 | % | 14 | % | 14 | % | 18 | % |
(1) | Revenues are attributed to U.S. and international geographies primarily based upon the country in which the seller, payment recipient, customer, website that displays advertising, or other service provider, as the case may be, is located. |
Three Months Ended | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
ECV (1) | $61,201 | $51,507 | $50,597 | $48,795 | $50,186 | ||||||||||
Current quarter vs prior quarter | 19 | % | 2 | % | 4 | % | (3 | %) | 18 | % | |||||
Current quarter vs prior year quarter | 22 | % | 21 | % | 21 | % | 19 | % | N/A |
(1) | Represents the total commerce and payment volume across all three business units consisting of Marketplaces GMV, PayPal Merchant Services TPV and Merchandise Sales not earned on eBay or paid for via PayPal or Bill Me Later during the period. Excludes volume transacted through the Magento platform. PayPal Merchant Services TPV is the total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, Bill Me Later accounts and Zong during the period, excluding PayPal's payment gateway business and payments for transactions on our Marketplaces and Enterprise platforms. |
Three Months Ended | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
Active registered accounts (1) | 142.6 | 137.4 | 132.4 | 127.7 | 122.7 | ||||||||||
Current quarter vs prior quarter | 4 | % | 4 | % | 4 | % | 4 | % | 5 | % | |||||
Current quarter vs prior year quarter | 16 | % | 17 | % | 17 | % | 16 | % | 15 | % | |||||
Net number of payments (2) | 846.1 | 729.4 | 700.6 | 681.6 | 691.7 | ||||||||||
Current quarter vs prior quarter | 16 | % | 4 | % | 3 | % | (1 | )% | 17 | % | |||||
Current quarter vs prior year quarter | 22 | % | 24 | % | 24 | % | 23 | % | 26 | % | |||||
Net total payment volume (3) | $ | 51,973 | $ | 43,837 | $ | 42,813 | $ | 41,040 | $ | 41,471 | |||||
Current quarter vs prior quarter | 19 | % | 2 | % | 4 | % | (1 | )% | 18 | % | |||||
Current quarter vs prior year quarter | 25 | % | 25 | % | 24 | % | 21 | % | 24 | % | |||||
On eBay net total payment volume as % of net total payment volume | 29 | % | 30 | % | 30 | % | 32 | % | 32 | % | |||||
Merchant Services net total payment volume as % of net total payment volume | 71 | % | 70 | % | 70 | % | 68 | % | 68 | % | |||||
Take Rate (4) | 3.53 | % | 3.70 | % | 3.79 | % | 3.77 | % | 3.72 | % | |||||
Transaction rates (5) | |||||||||||||||
Transaction expense | 0.97 | % | 1.05 | % | 1.04 | % | 1.05 | % | 1.03 | % | |||||
Loss rate | 0.32 | % | 0.30 | % | 0.31 | % | 0.29 | % | 0.28 | % | |||||
Transaction margin | 63.5 | % | 63.4 | % | 64.4 | % | 64.4 | % | 64.7 | % | |||||
Loan portfolio rates | |||||||||||||||
Risk adjusted margin (6) | 15.8 | % | 16.1 | % | 16.2 | % | 15.8 | % | 15.6 | % | |||||
Net charge-off rate (7) | 6.3 | % | 5.5 | % | 5.6 | % | 5.3 | % | 5.3 | % | |||||
90-day delinquency rate (8) | 2.9 | % | 3.2 | % | 2.7 | % | 2.7 | % | 2.7 | % |
(1) | All registered accounts that successfully sent or received at least one payment or payment reversal through our PayPal payments networks, including Bill Me Later, within the last 12 months and which are currently able to transact. |
(2) | Total number of payments, net of payment reversals, successfully completed through our PayPal payments networks, including Bill Me Later, during the period; excludes payments sent or received through PayPal’s payment gateway business. |
(3) | Total dollar volume of payments, net of payment reversals, successfully completed through our PayPal payments networks, including Bill Me Later, during the period; excludes payments sent or received through PayPal’s payment gateway business. |
(4) | Take Rate reflects total net revenues earned through our PayPal payments networks, Bill Me Later and PayPal’s payment gateway business, including subscription fees and other net revenues, divided by Net Total Payment Volume. |
(5) | Expense Rate reflects third party payment processing expenses and other related service costs divided by Net Total Payment Volume. Loss Rate reflects expense associated with our customer protection programs, fraud, chargebacks and merchant credit losses; bad debt expense associated with our accounts receivable balances; and loan reserves associated with our loan receivables balances divided by Net Total Payment Volume. |
(6) | The risk adjusted margin represents annualized Bill Me Later revenue, excluding contra-revenue incentives to customers or merchants, less cost of funds, and less net credit and fraud losses during the period divided by average loans receivable for the period. |
(7) | Net charge-off rate represents annualized Bill Me Later net credit losses during the period divided by average loans receivable for the period. |
(8) | 90-day delinquency rate is the end of period Bill Me Later account balances that have missed three or more consecutive payments divided by total ending loan receivables. |
Three Months Ended | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
Active Users (1) | 128.1 | 123.6 | 119.7 | 116.2 | 112.3 | ||||||||||
Current quarter vs prior quarter | 4 | % | 3 | % | 3 | % | 3 | % | 4 | % | |||||
Current quarter vs prior year quarter | 14 | % | 14 | % | 14 | % | 13 | % | 12 | % | |||||
Gross Merchandise Volume (excluding vehicles) (2) | $ | 21,518 | $ | 18,360 | $ | 18,292 | $ | 18,326 | $ | 19,105 | |||||
Current quarter vs prior quarter | 17 | % | — | % | — | % | (4 | )% | 17 | % | |||||
Current quarter vs prior year quarter | 13 | % | 13 | % | 13 | % | 13 | % | 16 | % | |||||
U.S. GMV as % of total GMV | 39 | % | 40 | % | 40 | % | 40 | % | 38 | % | |||||
International GMV as % of total GMV | 61 | % | 60 | % | 60 | % | 60 | % | 62 | % | |||||
Vehicles Gross Merchandise Volume (3) | $ | 1,580 | $ | 1,765 | $ | 1,805 | $ | 1,686 | $ | 1,727 | |||||
Current quarter vs prior quarter | (11 | )% | (2 | )% | 7 | % | (2 | )% | (13 | )% | |||||
Current quarter vs prior year quarter | (9 | )% | (11 | )% | (11 | )% | (10 | )% | (7 | )% | |||||
Fixed Price Trading (4) as % of total gross merchandise volume | 73 | % | 71 | % | 69 | % | 68 | % | 68 | % |
(1) | All users, excluding users of Half.com, StubHub, GittiGidiyor, and our Korean subsidiary who bid on, bought, listed or sold an item within the previous 12-month period. Users may register more than once, and as a result, may have more than one account. |
(2) | Total value of all successfully closed transactions between users on Marketplaces trading platforms during the period regardless of whether the buyer and seller actually consummated the transaction, excluding vehicles gross merchandise volume. |
(3) | Total value of all successfully closed vehicle transactions between users on Marketplaces trading platforms during the period regardless of whether the buyer and seller actually consummated the transaction. |
(4) | Primarily, total gross merchandise volume related to eBay’s “Buy It Now” feature on Marketplaces trading platforms during the period divided by total gross merchandise volume during the period. |
Three Months Ended | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
Merchandise Sales (1) | $ | 1,771 | $ | 787 | $ | 815 | $ | 807 | $ | 1,595 | |||||
Current quarter vs prior quarter | 125 | % | (3 | )% | 1 | % | (49 | )% | 129 | % | |||||
Current quarter vs prior year quarter | 11 | % | 13 | % | 21 | % | 13 | % | 17 | % |
(1) | Retail value of all sales transactions, inclusive of freight charges and net of allowance for returns and discounts, which flow through our Enterprise Commerce Technologies, whether we record the full amount of such transaction as a product sale or a percentage of such transaction as a service fee. |
Three Months Ended | |||
March 31, 2014 | |||
(In millions, except per share amounts) | GAAP | Non-GAAP (a) | |
Net Revenue | $4,150 - $4,250 | $4,150 - $4,250 | |
Diluted EPS | $0.51 - $0.53 | $0.65 - $0.67 | |
Twelve Months Ended | |||
December 31, 2014 | |||
(In millions, except per share amounts) | GAAP | Non-GAAP (b) | |
Net Revenue | $18,000 - $18,500 | $18,000 - $18,500 | |
Diluted EPS | $2.40 - $2.45 | $2.95 - $3.00 |
(a) | Estimated non-GAAP amounts above for the three months ending March 31, 2014, reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $100-$110 million and estimated stock-based compensation expense and employer payroll taxes on stock-based compensation expense of approximately $145-$155 million. |
(b) | Estimated non-GAAP amounts above for the twelve months ending December 31, 2014, reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $350-$370 million and estimated stock-based compensation expense and employer payroll taxes on stock-based compensation expense of approximately $655-$675 million. |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions, except percentages) | |||||||||||||||
GAAP operating income | $ | 1,022 | $ | 874 | $ | 3,371 | $ | 2,888 | |||||||
Stock-based compensation expense and related employer payroll taxes | 199 | 130 | 638 | 509 | |||||||||||
Acquisition related transaction expenses | 9 | — | 9 | — | |||||||||||
Amortization of acquired intangible assets within cost of net revenues | 21 | 18 | 77 | 78 | |||||||||||
Amortization of acquired intangible assets within operating expenses | 73 | 83 | 318 | 335 | |||||||||||
Restructuring | (2 | ) | 31 | (6 | ) | 31 | |||||||||
Total non-GAAP operating income adjustments | 300 | 262 | 1,036 | 953 | |||||||||||
Non-GAAP operating income | $ | 1,322 | $ | 1,136 | $ | 4,407 | $ | 3,841 | |||||||
Non-GAAP operating margin | 29.2 | % | 28.5 | % | 27.5 | % | 27.3 | % |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
GAAP income before income taxes | $ | 1,028 | $ | 877 | $ | 3,466 | $ | 3,084 | |||||||
GAAP provision for income taxes | (178 | ) | (126 | ) | (610 | ) | (475 | ) | |||||||
GAAP net income | $ | 850 | $ | 751 | $ | 2,856 | $ | 2,609 | |||||||
Non-GAAP adjustments to net income: | |||||||||||||||
Non-GAAP operating income adjustments (see table above) | 300 | 262 | 1,036 | 953 | |||||||||||
Accretion of note receivable | — | (4 | ) | (15 | ) | (23 | ) | ||||||||
Acquisition related items | — | (1 | ) | — | 2 | ||||||||||
Gain on investment | — | — | (5 | ) | — | ||||||||||
Amortization of intangibles of investments | 1 | — | 7 | — | |||||||||||
Sale of Skype and transaction related items | — | — | — | (2 | ) | ||||||||||
(Gain) Loss on divested business | — | — | (75 | ) | (118 | ) | |||||||||
Tax effect of non-GAAP adjustments | (84 | ) | (81 | ) | (248 | ) | (321 | ) | |||||||
Non-GAAP net income | $ | 1,067 | $ | 927 | $ | 3,556 | $ | 3,100 | |||||||
Diluted net income per share: | |||||||||||||||
GAAP | $ | 0.65 | $ | 0.57 | $ | 2.18 | $ | 1.99 | |||||||
Non-GAAP | $ | 0.81 | $ | 0.70 | $ | 2.71 | $ | 2.36 | |||||||
Shares used in GAAP and non-GAAP diluted net income per-share calculation | 1,310 | 1,318 | 1,313 | 1,313 | |||||||||||
GAAP effective tax rate | 17 | % | 14 | % | 18 | % | 15 | % | |||||||
Tax effect of non-GAAP adjustments to net income | 3 | % | 4 | % | 1 | % | 5 | % | |||||||
Non-GAAP effective tax rate | 20 | % | 18 | % | 19 | % | 20 | % |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||||
Net cash provided by operating activities | $ | 1,713 | $ | 1,386 | $ | 4,995 | $ | 3,838 | |||||||
Less: Purchases of property and equipment, net | (281 | ) | (296 | ) | (1,250 | ) | (1,257 | ) | |||||||
Free cash flow | $ | 1,432 | $ | 1,090 | $ | 3,745 | $ | 2,581 |
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