|
|
 | | | |
- close
- close
- close
- close
This excerpt taken from the EBAY 10-Q filed Jul 24, 2008. Our
Business
We operate three primary business segments: Marketplaces,
Payments and Communications. The Marketplaces segment enables
online commerce through a variety of different platforms,
including the traditional eBay auction-style site, fixed pricing
format, our classifieds websites, our comparison shopping site,
Shopping.com, our secondary tickets platform, StubHub, and our
apartment listing service platform, Rent.com. Our Payments
segment, which consists of PayPal, enables individuals and
businesses to securely, easily and quickly send and receive
payments online. Our Communications segment, which consists of
Skype, enables VoIP communications between Skype users and also
provides Skype users low-cost connectivity to traditional
fixed-line and mobile telephones.
Key
Operating Metrics and Financial Performance
Members of our senior management team regularly review key
operating metrics such as active users, listings, Gross
Merchandise Volume (“GMV”), net Total Payment
Volume (“TPV”), transaction loss rates, Skype
registered users and SkypeOut minutes. Members of our senior
management team also regularly review key financial information
including net revenues, operating margins, earnings per share,
cash flows and financial metrics that exclude certain non-cash
items. These financial measures allow us to monitor the
profitability of our business and to evaluate the effectiveness
of investments that we have made (and continue to make) in the
areas of marketing, product development, international
expansion, customer support and site operations. We believe that
an understanding of these key operating and financial measures
and how they change over time is important to investors,
analysts and other parties analyzing our business results and
future market opportunities.
Financial
Summary
Net revenues for the three months ended June 30, 2008 were
$2.2 billion, representing an increase of 20% compared to
the same period of the prior year. While Marketplaces
transaction revenue continues to represent a majority of our
overall revenue, revenue growth rates were helped by our faster
growing businesses such as PayPal merchant services, global
classifieds, advertising and Skype. Our reported results from
operations also benefited from the strength in other currencies
relative to the U.S. dollar. Operating income for the three
months ended June 30, 2008 was $545.4 million, or 25%
of net revenues, compared to $456.9 million, or 25% of net
revenues, in the same period of the prior year. Operating margin
(which is operating income as a percentage of net revenues)
remained consistent due primarily to the continued faster growth
of our lower-margin businesses, PayPal and Skype, as compared to
our Marketplaces business, partially offset by a reduction of
sales and marketing expense as a
Table of Contents
percentage of net revenues. Net income for the three months
ended June 30, 2008 was $460.3 million, or $0.35
earnings per diluted share, compared to $375.8 million, or
$0.27 earnings per diluted share for the same period of the
prior year. Our net income benefited in part from a lower
effective tax rate for the three months ended June 30, 2008
compared to the same period of the prior year, as the geographic
mix of income became more favorable. In addition to the growth
in net income, the higher earnings per diluted share was
partially attributable to our lower diluted weighted average
share count, which was driven primarily by our stock repurchase
activity during 2007 and the first half of 2008. During the
second quarter of 2008, we repurchased approximately
19.1 million shares of our common stock under our
repurchase program for an aggregate purchase price of
approximately $566.0 million.
Our
expectations
We expect that our net revenues and earnings per diluted share
will continue to increase in 2008, compared to 2007, driven
primarily by strong growth rates in our PayPal, Skype,
advertising and classifieds businesses. We continue to face
growth challenges in our largest segment, Marketplaces,
primarily in our three largest markets, the U.S., the U.K. and
Germany. We expect to continue to make significant investments
in our Marketplaces segment through initiatives designed to
enhance our business fundamentals and enable us to provide the
best value, selection and overall experience for our customers.
Seasonality
The following table sets forth, for the periods presented, our
total net revenues and the sequential quarterly growth of these
net revenues:
We expect transaction activity patterns in our businesses to
increasingly mirror general consumer buying patterns, both
online and offline, as our business expands, with the strongest
sequential growth occurring in the fourth quarter.
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008. Our
Business
We operate three primary business segments: Marketplaces,
Payments and Communications. The Marketplaces segment enables
online commerce through a variety of different platforms,
including the traditional eBay auction-style site, fixed pricing
format, our classifieds websites, our comparison shopping site,
Shopping.com, our secondary tickets platform, StubHub, and
Rent.com. Our Payments segment, which consists of PayPal,
enables individuals and businesses to securely, easily and
quickly send and receive payments online. Our Communications
segment, which consists of Skype, enables VoIP communications
between Skype users and also provides Skype users low-cost
connectivity to traditional fixed-line and mobile telephones.
Key
Operating Metrics and Financial Performance
Members of our senior management team regularly review key
operating metrics such as active users, listings, Gross
Merchandise Volume (“GMV”), net Total Payment
Volume (“TPV”), transaction loss rates, Skype
registered users and SkypeOut minutes. Members of our senior
management team also regularly review key financial information
including net revenues, operating margins, earnings per share,
cash flows and financial metrics that exclude certain non-cash
items. These financial measures allow us to monitor the
profitability of our business and to evaluate the effectiveness
of investments that we have made (and continue to make) in the
areas of marketing, product development, international
expansion, customer support and site operations. We believe that
an understanding of these key operating and financial measures
and how they change over time is important to investors,
analysts and other parties analyzing our business results and
future market opportunities.
Financial
Summary
Net revenues for the three months ended March 31, 2008 were
$2.2 billion, representing a growth rate of 24% compared to
the same period of the prior year. Revenue growth was driven
primarily by Marketplaces net transaction revenues, the ongoing
expansion at PayPal, Skype and our global advertising and
classifieds businesses. Our global presence helped us to benefit
from strength in other currencies relative to the
U.S. dollar. Operating income for the three months ended
March 31, 2008 was $552.8 million, or 25% of net
revenues, compared to $467.8 million, or 26% of net
revenues, in the same period of the prior year. The decrease in
the operating margin (which is operating income as a percentage
of net revenues) was due primarily to the continued higher
growth of our lower-margin businesses, PayPal and Skype, which
continued to grow at a faster rate than our Marketplaces
business, as well as higher legal-related expenses. Net income
for the three months ended March 31, 2008 was
Table of Contents
$459.7 million, or $0.34 earnings per diluted share,
compared to $377.2 million, or $0.27 earnings per diluted
share for the same period of the prior year. Our net income
results benefited in part from a lower tax rate for the three
months ended March 31, 2008 compared to the same period of
the prior year as the geographic mix of income became more
favorable. In addition to the growth in net income, the higher
earnings per diluted share was partially attributable to
our lower diluted weighted average share count, the decrease of
which was driven primarily by our stock repurchase activity
during 2007 and the first quarter of 2008. During the first
quarter of 2008, we repurchased approximately 36.7 million
shares of our common stock under our repurchase program for an
aggregate purchase price of approximately $1.0 billion.
Our
expectations for growth
For the remainder of 2008, we expect that our net revenues and
earnings per diluted share will continue to increase. We expect
to continue to make significant investments in our Marketplaces
segment, related primarily to our goals of making eBay easier
and safer to use, retaining our top-buyers and making changes in
our fee structure to further align our success with that of our
sellers.
Seasonality
The following table sets forth, for the periods presented, our
total net revenues and the sequential quarterly growth of these
net revenues:
We expect transaction activity patterns on our websites to
increasingly mirror general consumer buying patterns, both
online and offline, as our business expands, with the strongest
sequential growth occurring in the fourth quarter.
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008. Our
Business
We operate three primary business segments: Marketplaces,
Payments and Communications. The Marketplaces segment enables
online commerce through a variety of different platforms,
including the traditional eBay auction-style site, fixed pricing
format, our classifieds websites, our comparison shopping site,
Shopping.com, our secondary tickets platform, StubHub, and
Rent.com. Our Payments segment, which consists of PayPal,
enables individuals and businesses to securely, easily and
quickly send and receive payments online. Our Communications
segment, which consists of Skype, enables VoIP communications
between Skype users and also provides Skype users low-cost
connectivity to traditional fixed-line and mobile telephones.
Key
Operating Metrics and Financial Performance
Members of our senior management team regularly review key
operating metrics such as active users, listings, Gross
Merchandise Volume (“GMV”), net Total Payment
Volume (“TPV”), transaction loss rates, Skype
registered users and SkypeOut minutes. Members of our senior
management team also regularly review key financial information
including net revenues, operating margins, earnings per share,
cash flows and financial metrics that exclude certain non-cash
items. These financial measures allow us to monitor the
profitability of our business and to evaluate the effectiveness
of investments that we have made (and continue to make) in the
areas of marketing, product development, international
expansion, customer support and site operations. We believe that
an understanding of these key operating and financial measures
and how they change over time is important to investors,
analysts and other parties analyzing our business results and
future market opportunities.
Financial
Summary
Net revenues for the three months ended March 31, 2008 were
$2.2 billion, representing a growth rate of 24% compared to
the same period of the prior year. Revenue growth was driven
primarily by Marketplaces net transaction revenues, the ongoing
expansion at PayPal, Skype and our global advertising and
classifieds businesses. Our global presence helped us to benefit
from strength in other currencies relative to the
U.S. dollar. Operating income for the three months ended
March 31, 2008 was $552.8 million, or 25% of net
revenues, compared to $467.8 million, or 26% of net
revenues, in the same period of the prior year. The decrease in
the operating margin (which is operating income as a percentage
of net revenues) was due primarily to the continued higher
growth of our lower-margin businesses, PayPal and Skype, which
continued to grow at a faster rate than our Marketplaces
business, as well as higher legal-related expenses. Net income
for the three months ended March 31, 2008 was
Table of Contents
$459.7 million, or $0.34 earnings per diluted share,
compared to $377.2 million, or $0.27 earnings per diluted
share for the same period of the prior year. Our net income
results benefited in part from a lower tax rate for the three
months ended March 31, 2008 compared to the same period of
the prior year as the geographic mix of income became more
favorable. In addition to the growth in net income, the higher
earnings per diluted share was partially attributable to
our lower diluted weighted average share count, the decrease of
which was driven primarily by our stock repurchase activity
during 2007 and the first quarter of 2008. During the first
quarter of 2008, we repurchased approximately 36.7 million
shares of our common stock under our repurchase program for an
aggregate purchase price of approximately $1.0 billion.
Our
expectations for growth
For the remainder of 2008, we expect that our net revenues and
earnings per diluted share will continue to increase. We expect
to continue to make significant investments in our Marketplaces
segment, related primarily to our goals of making eBay easier
and safer to use, retaining our top-buyers and making changes in
our fee structure to further align our success with that of our
sellers.
Seasonality
The following table sets forth, for the periods presented, our
total net revenues and the sequential quarterly growth of these
net revenues:
We expect transaction activity patterns on our websites to
increasingly mirror general consumer buying patterns, both
online and offline, as our business expands, with the strongest
sequential growth occurring in the fourth quarter.
These excerpts taken from the EBAY 10-K filed Feb 29, 2008. Our
Business
We operate three primary business segments: Marketplaces,
Payments and Communications. Our Marketplaces segment provides
the infrastructure to enable global online commerce on a variety
of platforms, including the traditional eBay.com platform, and
our other online platforms, such as Shopping.com, StubHub,
classifieds, Half.com and Rent.com. Our Payments segment, which
consists of PayPal, enables individuals or businesses to
securely, easily and quickly send and receive payments online.
Our Communications segment, which consists of Skype, enables
VoIP calls between Skype users and provides low-cost
connectivity to traditional fixed-line and mobile telephones.
We generate revenues from our Marketplaces segment primarily
from listing, feature and final value fees paid by sellers and
lead referral fees. For our Payments segment, revenues are
generated primarily by fees from payment processing services.
Our Communications segment primarily generates revenues from
fees charged to users to connect them from Skype’s VoIP
network to traditional telecommunication networks. These fees
are charged on a per minute basis and we refer to these minutes
as SkypeOut minutes. Revenues from advertising are derived
principally from the sale of advertisements and from revenue
sharing arrangements. Other revenues are derived principally
from contractual arrangements with third parties that provide
transaction services to eBay and PayPal users and interest
earned from banks on certain PayPal customer account balances.
Revenues are attributed to U.S. and international
geographies based upon the country in which, as the case may be,
the seller, payment recipient, Skype user’s Internet
protocol address, online property that generates advertising, or
other service provider, is located. Because we generate the
majority of our revenue internationally, fluctuations in foreign
currency exchange rates will impact the results of our
operations.
Our Business We operate three primary business segments: Marketplaces, Payments and Communications. Our Marketplaces segment provides the infrastructure to enable global online commerce on a variety of platforms, including the traditional eBay.com platform, and our other online platforms, such as Shopping.com, StubHub, classifieds, Half.com and Rent.com. Our Payments segment, which consists of PayPal, enables individuals or businesses to securely, easily and quickly send and receive payments online. Our Communications segment, which consists of Skype, enables VoIP calls between Skype users and provides low-cost connectivity to traditional fixed-line and mobile telephones. We generate revenues from our Marketplaces segment primarily from listing, feature and final value fees paid by sellers and lead referral fees. For our Payments segment, revenues are generated primarily by fees from payment processing services. Our Communications segment primarily generates revenues from fees charged to users to connect them from Skype’s VoIP network to traditional telecommunication networks. These fees are charged on a per minute basis and we refer to these minutes as SkypeOut minutes. Revenues from advertising are derived principally from the sale of advertisements and from revenue sharing arrangements. Other revenues are derived principally from contractual arrangements with third parties that provide transaction services to eBay and PayPal users and interest earned from banks on certain PayPal customer account balances. Revenues are attributed to U.S. and international geographies based upon the country in which, as the case may be, the seller, payment recipient, Skype user’s Internet protocol address, online property that generates advertising, or other service provider, is located. Because we generate the majority of our revenue internationally, fluctuations in foreign currency exchange rates will impact the results of our operations. | EXCERPTS ON THIS PAGE:
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
