EBAY INC. Highlights:
Q3 Revenue of
Revenue of
Gross Merchandise Volume of
GAAP and Non-GAAP earnings per diluted share of
GAAP and Non-GAAP operating margin of 18.2% and 26.4%, respectively
Returned
'We delivered another quarter of solid results, and have accelerated the pace of innovation across
'In Q3, we met or exceeded expectations across all of our key financial metrics,' said
Third Quarter Financial Highlights
Revenue was
Gross Merchandise Volume (GMV) was
GAAP net income from continuing operations was
Non-GAAP net income from continuing operations was
GAAP and Non-GAAP operating margin was 18.2% and 26.4%, respectively.
Generated
Returned
Business Highlights
Revenue Initiatives
The company's total advertising offerings generated approximately
Strategic Initiatives
Following the success of the
The company introduced a new consignment service, which gives users direct access to expert sellers who will list and sell their luxury items on their behalf. Launching initially for designer handbags, the service is expected to expand next year to include additional luxury categories, including jewelry and watches.
During the quarter,
The company also launched two GenAI features in the
The company launched
Impact
The
During the quarter,
The company was recognized as a Top Corporate Philanthropist by the
Third Quarter 2023 Financial Highlights (presented in millions, except per share data and percentages)
Third Quarter
(a) Estimated non-GAAP amounts above for the three months endingDecember 31, 2023 reflect adjustments that exclude the
estimated amortization of acquired intangible assets of approximately
expense and associated employer payroll tax expense of approximately
our GAAP and non-GAAP tax rate of approximately
assume any gains or losses on our equity investments.
(b) Estimated non-GAAP amounts above for the twelve months endingDecember 31, 2023 reflect adjustments that exclude the
estimated amortization of acquired intangible assets of approximately
expense and associated employer payroll tax expense of approximately
our GAAP and non-GAAP tax rate of approximately
assume any future gains or losses on our equity investments.
Non-GAAP Measures of Financial Performance
To supplement the company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP effective tax rate, free cash flow and figures in this press release presented on an 'FX-Neutral basis.' These non-GAAP financial measures are presented on a continuing operations basis.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release, except for figures in this press release presented on an 'FX-Neutral basis,' can be found in the tables included in this press release. For figures in this press release reported 'on an FX-Neutral basis,' the company calculates the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company's financial reporting.
For its internal budgeting process, and as discussed further below, the company's management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments including changes in fair value, changes in foreign currency exchange rates and the impact of any related foreign exchange derivative instruments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company's management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.
The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and non-GAAP effective tax rate:
Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company's stock price and the vesting of restricted stock by employees and the timing and size of stock option exercises, over which management has limited to no control, and as such management does not believe it correlates to the company's operation of the business.
Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, significant gains or losses and transaction expenses from the acquisition or disposal of a business and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company's business.
Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
Other certain significant gains, losses, or charges that are not indicative of the company's core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results. These amounts include changes in fair value and the related change in foreign currency exchange rates of equity securities with readily determinable fair values, globally.
Change in fair market value of warrant. These are gains or losses associated with a warrant agreement that the company entered into with Adyen, which are attributable to changes in fair value during the period.
Income tax effects and adjustments. We use a non-GAAP tax rate for evaluating our operating results. Based on our current long-term projections, we are using a non-GAAP tax rate of 16.5%. This non-GAAP tax rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
In addition to the non-GAAP measures discussed above, the company also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company's business, make strategic acquisitions, repurchase stock and pay dividends. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company's cash balance for the period and does not exclude certain non-discretionary expenditures, such as mandatory debt service requirements.
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income*
See full results at: https://www.ebayinc.com/stories/news/ebay-inc-reports-third-quarter-2023-results/
Investor Relations Contact:
ir@ebay.com
Media Relations Contact:
press@ebay.com
https://www.ebayinc.com/stories/news/
Investor Relations website:
https://investors.ebayinc.com
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