ebay q2 earnings

7/31/2019 eBay Q2 Earnings

1/32


2/32


3/32


4/32


5/32


6/32


7/32


8/32


9/32


10/32


11/32


12/32


13/32


14/32


15/32


16/32


17/32


18/32


19/32


20/32


21/32


22/32


23/32


24/32


25/32


26/32


27/32

Reconciliation of GAAP to Non-GAAP

Reported Entries GAAP Reported Entries GAAP

Three Months Ended Three Months Ended

June 30, 2012 June 30, 2011

inmill ions exce t er share dataand ercenta es

Net revenues $ 3,398 $ - $ 3,398 $ 2,760 $ - $ 2,760

Cost of net revenues 987 (14) (a) 954 773 (14) (a) 750(19) (c) (9) (c)-

Gross Profit 2,411 33 2,444 1,987 23 2,010Operating expenses:

,

a es an mar et ng a aProduct development 394 (37) (a) 357 297 (33) (a) 264General and administrative 390 (42) (a) 346 392 (42) (a) 292

(2) (b) (1) (b)(57) (i )

Provision for transaction and loanlosses 131 131 118 - 118Amortization of acquiredintangible assets 84 (84) (c) - 53 (53) (c) -Total operating expense 1,716 (199) 1,517 1,468 (220) 1,248Income from operations 695 232 927 519 243 762Interest and other income, net 156 - 33 28 10 (h) 21

(118) (p) (17) (j)

Accretion of note receivable (5) (m) (256) 256 (k) -Income before income taxes 851 109 960 291 492 783Provision for income taxes (159) (71) (d) (230) (8) (145) (d) (152)

Net income per share:

Basic $ 0.54 $ 0.57 $ 0.22 $ 0.49

Diluted $ 0.53 $ 0.56 $ 0.22 $ 0.48

Weighted average shares:

Basic 1,291 1,291 1,297 1,297

Diluted 1,309 1,309 1,315 1,315

Notes:

(a) Stock-based compensation expense

(b) Employer payroll taxes on stock-based compensation

(c) Amortization of acquired intangible assets and developed technology

(d) Income taxes associated with certain non-GAAP entries

26

Operating margin 20 % 7 % 27 % 19 % 9 % 28 %

Effective tax rate 19 % 5 % 24 % 3 % 16 % 19 %

(p) Gain on the divestiture of abusiness

(h) Amortization of intangibles and stoc k-based compensation for Skype

(i) Acquisition related transaction expense

(j) Gain from the acquisition of a business

(k) Loss on divested business

(m) Accretion of note receivable


28/32

Calculation of Free Cash Flow

Mar 31, Jun 30, Sep 30, Dec 31,

Year

2010 2010 2010 2010 2010

Three Months Ended

GAAP operating cash

flow $ 418 $ 726 $ 747 $ 854 $ 2,745Purchases of propertyandequipment, net (152) (207) (167) (197) (723)

(in millions)

,

Mar 31, Jun 30, Sept 31, Dec 31,Full

Year2011 2011 2011 2011 2011

Three Months Ended

GAAP operating cashflow $ 700 $ 783 $ 809 $ 982 $ 3,274Purchases of propertyandequipment, net (149) (240) (283) (291) (963)Free cash flow $ 551 $ 543 $ 526 $ 691 $ 2,311

(in millions)

Mar 31, Jun 30,2012 2012

GAAP o erat in cash

Three Months Ended

(in millions)

27

flow $ 531 $ 768Purchases of propertyand

equipment, net (242) (357)Free cash flow $ 289 $ 411


29/32

Calculation of GSI Revenue Growth

Three MonthsEnded

,2012

Total proforma revenue growth 9 %

Impact from shift to service fee model 3 %

to service fee model 12 %

28


30/32

Reconciliation and Calculation of Return on

In millions, except percentages

Numerator components: Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

Non-GAAP operating income 646$ 645$ 737$ 749$ 762$ 751$ 972$ 883$ 927$

Tax rate 21 % 21 % 8 % 19 % 19 % 21 % 20 % 20 % 24 %

Non-GAAP operat ing income after tax 511$ 510$ 675$ 608$ 614$ 594$ 778$ 705$ 705$

Denominator components: Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

Total assets 18,748$ 19,948$ 22,004$ 23,005$ 24,834$ 24,901$ 27,320$ 28,207$ 28,258$

Total cash, cash equivalents and

investments 6,726$ 7,464$ 9,115$ 9,480$ 7,475$ 7,031$ 8,382$ 8,732$ 8,384$Current liabilities 3 564 3 809 4 517 4 763 6 143 6 145 6 734 6 965 6 800, , , , , , , , ,

TTM Non-GAAP operating incomeafter tax 2,121$ 2,126$ 2,220$ 2,304$ 2,407$ 2,491$ 2,594$ 2,691$ 2,782$TTM average total assets 17,954 18,630 19,560 20,479 21,708 22,938 24,413 25,653 26,704

,cash equivalents and investments 5,003 5,825 6,866 7,465 7,649 7,707 7,882 7,809 7,601TTM average current liabilities 3,634 3,650 3,824 4,048 4,559 5,076 5,661 6,150 6,558ROIC 22.8 % 23.2 % 25.0 % 25.7 % 25.3 % 24.5 % 23.9 % 23.0 % 22.2 %

29


31/32

Q312 and FY 2012 GAAP and Non-GAAP

(in millions, except per share

Three Months Ending

Septembe r 31, 2012

amoun s GAAP Non-GAAP (a)Revenues $3,300 - $3,400 $3,300 - $3,400Diluted EPS $0.42 - $0.44 $0.53 - $0.55

(a) Estimated non-GAAP amounts above for the three months ending September 30,2012, reflect adjustments that exclude the estimated amortization of acquiredn ang e asse s o approx ma e y - m on, es ma e s oc - asecompensation expense and employer payroll taxes on stock-based compensationexpense of approximately $115-$135 million, and the accretion of a note receivable ofapproximately $5 million as well as the related tax impact

(in millions, except per shareamounts) GAAP Non-GAAP (b)

Revenues $13,800 - $14,100 $13,800 - $14,100

December 31, 2012Full Year Ending

Diluted EPS $1.91 - $ 1.96 $2.30 - $ 2.35

Tax rate 16.0%-17.0% 19.0%-20.0%

(b) Estimated non-GAAP amounts above for the 12 months ending December 31,

30

, re ec a us men s a exc u e e es ma e amor za on o acqu reintangible assets of approximately $400-$420 million, estimated stock-basedcompensation expense and employer payroll taxes on stock-based compensationexpense of approximately $485-$515 million, the gain on a divestiture of approximately$118 million, and the accretion of a note receivable of approximately $20 - $25 millionas well as the related tax impact.


32/32

FY 2012 GAAP and Non-GAAP Cash Flow

(in billions)Year ended

December 31, 2012

Forecasted operating cash flow $3.6 - $3.8Forecasted purchases of PP&E $1.2 - $1.3Forecasted free cash flow $2.4 - $2.5

31

ebay q2 earnings

Documents