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EBAY » Topics » Our operating results may fluctuate.

This excerpt taken from the EBAY 10-Q filed Jul 24, 2008.
Our operating results may fluctuate.
 
Our operating results have varied on a quarterly basis during our operating history. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may affect our operating results include the following:
 
  •  our ability to retain an active user base, attract new users, and encourage existing users to list items for sale, purchase items through our websites, or use our payment service or communication software and products;
 
  •  our ability to increase activity of the users of our Marketplaces business, especially with respect to our top buyers and sellers, in our most mature geographies, especially the U.S., Germany and the U.K.;
 
  •  the volume, size, timing, monetization, and completion rates of transactions using our websites or technology;
 
  •  the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion of our businesses, operations, and infrastructure;
 
  •  the effect of recently announced and possible future changes to our pricing, products and policies, including, among other changes: a reduced emphasis on upfront fees (e.g., insertion fees for listings) and corresponding increases in success-based fees (e.g., final value fees for sold items); new algorithms for determining which listings appear at the top of searches (Best Match); changes to buyer and seller feedback criteria; tighter seller standards, which may restrict some sellers from selling on our websites even if they have been able to do so historically; new restrictions or holds on payments made to certain sellers or in connection with certain categories of higher-risk transactions; new incentives and rewards for top PowerSellers; and, beginning in the fall of 2008, increased protection for buyers who pay for eligible transactions on eBay.com using PayPal,as well as improved seller protection for U.S. eBay sellers against claims, chargebacks and reversals;
 
  •  regulatory and legal actions imposing obligations on our businesses or our users, including the injunction related to certain cosmetic and perfume brands (see “Item 1 — Legal Proceedings” above);
 
  •  new laws or regulations, or interpretations of existing laws or regulations, that impose liability on us for actions of our users or otherwise harm our business models or restrict the Internet, electronic commerce, online payments, or online communications;
 
  •  the effect of recently announced management changes;
 
  •  general economic conditions, including higher inflation, interest rate fluctuations, and the possibility of a recession in the U.S., and a worldwide economic slowdown, as well as those economic conditions specific to the Internet and ecommerce industries;
 
  •  the actions of our competitors, including the introduction of new sites, services, and products;
 
  •  consumer confidence in the safety and security of transactions using our websites or technology and our ability to manage the costs of our user protection programs;
 
  •  our ability to manage PayPal’s transaction loss rate and payment funding mix;
 
  •  the costs and results of litigation that involves us;
 
  •  our ability to successfully integrate and manage businesses that we acquire;
 
  •  the cost and availability of online and traditional advertising, and the success of our brand building and marketing campaigns;


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  •  our ability to develop product enhancements, programs, and features at a reasonable cost and in a timely manner;
 
  •  our ability to upgrade and develop our systems, infrastructure, and customer service capabilities to accommodate growth and to improve our websites at a reasonable cost while maintaining 24/7 operations;
 
  •  technical difficulties or service interruptions involving our websites or services provided to us or our users by third parties;
 
  •  our ability to comply with the requirements of entities whose services are required for our operations, such as credit card networks and banks;
 
  •  our ability to increase the acceptance of PayPal by online merchants outside of our Marketplaces platforms, which may require long implementation cycles and incentives to merchants that are initially dilutive;
 
  •  our ability to manage, profitably expand and effectively monetize the Skype business;
 
  •  our ability to attract new personnel in a timely and effective manner and to retain key employees;
 
  •  the continued healthy operation of our technology suppliers and other parties with which we have commercial relations;
 
  •  continued consumer acceptance of the Internet as a medium for commerce and communication in the face of increasing publicity about fraud, spoofing, phishing, viruses, spyware, and other dangers of the Internet; and
 
  •  macroeconomic and geopolitical events such as recession, commodity inflation, war, threat of war, or terrorist actions.
 
The increased variety of services offered on our websites makes it difficult for us to forecast the level or source of our revenues or earnings accurately. In view of the rapidly evolving nature of our business, we believe that period-to-period comparisons of our operating results may not be meaningful, and you should not rely upon them as an indication of future performance. We do not have backlog, and substantially all of our net revenues each quarter come from transactions involving sales or payments during that quarter. Due to the inherent difficulty in forecasting revenues, it is also difficult to forecast income statement expenses as a percentage of net revenues. Quarterly and annual income statement expenses as a percentage of net revenues may be significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations of securities analysts and investors. In that event, the trading price of our common stock would almost certainly decline.
 
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008.
Our operating results may fluctuate.
 
Our operating results have varied on a quarterly basis during our operating history. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may affect our operating results include the following:
 
  •  our ability to retain an active user base, attract new users, and encourage existing users to list items for sale, purchase items through our websites, or use our payment service or communication software and products;
 
  •  our ability to increase activity of the users of our Marketplaces business, especially with respect to our top buyers and sellers, in our most mature geographies, especially the U.S., Germany and the U.K.;
 
  •  the volume, size, timing, monetization, and completion rates of transactions using our websites or technology;
 
  •  the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion of our businesses, operations, and infrastructure;
 
  •  the effect of recently announced and possible future changes to our pricing, products and policies, including, among other changes: new algorithms for determining which listings appear at the top of searches (Best Match); changes to buyer and seller feedback criteria; tighter seller standards, which may restrict some sellers from selling on our websites even if they have been able to do so historically; and new restrictions or holds on payments made to certain sellers or in connection with certain categories of higher-risk transactions;
 
  •  the effect of recently announced management changes;


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Table of Contents

 
  •  general economic conditions, including higher inflation, interest rate fluctuations, and the possibility of a recession in the U.S., and a worldwide economic slowdown, as well as those economic conditions specific to the Internet and ecommerce industries;
 
  •  regulatory and legal actions imposing obligations on our businesses or our users;
 
  •  new laws or regulations, or interpretations of existing laws or regulations, that impose liability on us for actions of our users or otherwise harm our business models or restrict the Internet, electronic commerce, online payments, or online communications;
 
  •  the actions of our competitors, including the introduction of new sites, services, and products;
 
  •  consumer confidence in the safety and security of transactions using our websites or technology and our ability to manage the costs of our user protection programs;
 
  •  our ability to manage PayPal’s transaction loss rate and payment funding mix;
 
  •  the costs and results of litigation that involves us;
 
  •  our ability to successfully integrate and manage businesses that we acquire;
 
  •  the cost and availability of online and traditional advertising, and the success of our brand building and marketing campaigns;
 
  •  our ability to develop product enhancements, programs, and features at a reasonable cost and in a timely manner;
 
  •  our ability to upgrade and develop our systems, infrastructure, and customer service capabilities to accommodate growth and to improve our websites at a reasonable cost while maintaining 24/7 operations;
 
  •  technical difficulties or service interruptions involving our websites or services provided to us or our users by third parties;
 
  •  our ability to comply with the requirements of entities whose services are required for our operations, such as credit card associations and banks;
 
  •  our ability to increase the acceptance of PayPal by online merchants outside of our Marketplaces platforms, which may require long implementation cycles and incentives to merchants that are initially dilutive;
 
  •  our ability to integrate, manage, and profitably expand and more effectively monetize the Skype business;
 
  •  our ability to attract new personnel in a timely and effective manner and to retain key employees;
 
  •  the continued healthy operation of our technology suppliers and other parties with whom we have commercial relations;
 
  •  continued consumer acceptance of the Internet as a medium for commerce and communication in the face of increasing publicity about fraud, spoofing, phishing, viruses, spyware, and other dangers of the Internet; and
 
  •  geopolitical events such as war, threat of war, or terrorist actions.
 
The increased variety of services offered on our websites makes it difficult for us to forecast the level or source of our revenues or earnings accurately. In view of the rapidly evolving nature of our business and our limited operating history, we believe that period-to-period comparisons of our operating results may not be meaningful, and you should not rely upon them as an indication of future performance. We do not have backlog, and substantially all of our net revenues each quarter come from transactions involving sales or payments during that quarter. Due to the inherent difficulty in forecasting revenues, it is also difficult to forecast income statement expenses as a percentage of net revenues. Quarterly and annual income statement expenses as a percentage of net revenues may be significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations of securities analysts and investors. In that event, the trading price of our common stock would almost certainly decline.


32

Table of Contents

This excerpt taken from the EBAY 10-Q filed Apr 24, 2008.
Our operating results may fluctuate.
 
Our operating results have varied on a quarterly basis during our operating history. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may affect our operating results include the following:
 
  •  our ability to retain an active user base, attract new users, and encourage existing users to list items for sale, purchase items through our websites, or use our payment service or communication software and products;
 
  •  our ability to increase activity of the users of our Marketplaces business, especially with respect to our top buyers and sellers, in our most mature geographies, especially the U.S., Germany and the U.K.;
 
  •  the volume, size, timing, monetization, and completion rates of transactions using our websites or technology;
 
  •  the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion of our businesses, operations, and infrastructure;
 
  •  the effect of recently announced and possible future changes to our pricing, products and policies, including, among other changes: new algorithms for determining which listings appear at the top of searches (Best Match); changes to buyer and seller feedback criteria; tighter seller standards, which may restrict some sellers from selling on our websites even if they have been able to do so historically; and new restrictions or holds on payments made to certain sellers or in connection with certain categories of higher-risk transactions;
 
  •  the effect of recently announced management changes;


31

Table of Contents

 
  •  general economic conditions, including higher inflation, interest rate fluctuations, and the possibility of a recession in the U.S., and a worldwide economic slowdown, as well as those economic conditions specific to the Internet and ecommerce industries;
 
  •  regulatory and legal actions imposing obligations on our businesses or our users;
 
  •  new laws or regulations, or interpretations of existing laws or regulations, that impose liability on us for actions of our users or otherwise harm our business models or restrict the Internet, electronic commerce, online payments, or online communications;
 
  •  the actions of our competitors, including the introduction of new sites, services, and products;
 
  •  consumer confidence in the safety and security of transactions using our websites or technology and our ability to manage the costs of our user protection programs;
 
  •  our ability to manage PayPal’s transaction loss rate and payment funding mix;
 
  •  the costs and results of litigation that involves us;
 
  •  our ability to successfully integrate and manage businesses that we acquire;
 
  •  the cost and availability of online and traditional advertising, and the success of our brand building and marketing campaigns;
 
  •  our ability to develop product enhancements, programs, and features at a reasonable cost and in a timely manner;
 
  •  our ability to upgrade and develop our systems, infrastructure, and customer service capabilities to accommodate growth and to improve our websites at a reasonable cost while maintaining 24/7 operations;
 
  •  technical difficulties or service interruptions involving our websites or services provided to us or our users by third parties;
 
  •  our ability to comply with the requirements of entities whose services are required for our operations, such as credit card associations and banks;
 
  •  our ability to increase the acceptance of PayPal by online merchants outside of our Marketplaces platforms, which may require long implementation cycles and incentives to merchants that are initially dilutive;
 
  •  our ability to integrate, manage, and profitably expand and more effectively monetize the Skype business;
 
  •  our ability to attract new personnel in a timely and effective manner and to retain key employees;
 
  •  the continued healthy operation of our technology suppliers and other parties with whom we have commercial relations;
 
  •  continued consumer acceptance of the Internet as a medium for commerce and communication in the face of increasing publicity about fraud, spoofing, phishing, viruses, spyware, and other dangers of the Internet; and
 
  •  geopolitical events such as war, threat of war, or terrorist actions.
 
The increased variety of services offered on our websites makes it difficult for us to forecast the level or source of our revenues or earnings accurately. In view of the rapidly evolving nature of our business and our limited operating history, we believe that period-to-period comparisons of our operating results may not be meaningful, and you should not rely upon them as an indication of future performance. We do not have backlog, and substantially all of our net revenues each quarter come from transactions involving sales or payments during that quarter. Due to the inherent difficulty in forecasting revenues, it is also difficult to forecast income statement expenses as a percentage of net revenues. Quarterly and annual income statement expenses as a percentage of net revenues may be significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations of securities analysts and investors. In that event, the trading price of our common stock would almost certainly decline.


32

Table of Contents

These excerpts taken from the EBAY 10-K filed Feb 29, 2008.
Our operating results may fluctuate.
 
Our operating results have varied on a quarterly basis during our operating history. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may affect our operating results include the following:
 
  •  our ability to retain an active user base, attract new users, and encourage existing users to list items for sale, purchase items through our websites, or use our payment service or communication software and products;
 
  •  our ability to increase activity of the users of our Marketplaces business, especially with respect to our top buyers and sellers, in our most mature geographies, especially the U.S., Germany and the U.K.;
 
  •  the volume, size, timing, monetization, and completion rates of transactions using our websites or technology;
 
  •  the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion of our businesses, operations, and infrastructure;
 
  •  the effect of recently announced changes to our pricing, products and policies, including our buyer/seller feedback features;
 
  •  the effect of recently announced management changes;
 
  •  general economic conditions, including higher inflation, the possibility of a recession in the U.S. and interest rate fluctuations, as well as those economic conditions specific to the Internet and ecommerce industries;
 
  •  regulatory and legal actions imposing obligations on our businesses or our users;
 
  •  new laws or regulations, or interpretations of existing laws or regulations, that impose liability on us for actions of our users or otherwise harm our business models or restrict the Internet, electronic commerce, online payments, or online communications;
 
  •  the actions of our competitors, including the introduction of new sites, services, and products;
 
  •  consumer confidence in the safety and security of transactions using our websites or technology and our ability to manage the costs of our user protection programs;


14

Table of Contents

 
  •  our ability to manage PayPal’s transaction loss rate and payment funding mix;
 
  •  the costs and results of litigation that involves us;
 
  •  our ability to successfully integrate and manage businesses that we acquire;
 
  •  the cost and availability of online and traditional advertising, and the success of our brand building and marketing campaigns;
 
  •  our ability to develop product enhancements, programs, and features at a reasonable cost and in a timely manner;
 
  •  our ability to upgrade and develop our systems, infrastructure, and customer service capabilities to accommodate growth and to improve our websites at a reasonable cost while maintaining 24/7 operations;
 
  •  technical difficulties or service interruptions involving our websites or services provided to us or our users by third parties;
 
  •  our ability to comply with the requirements of entities whose services are required for our operations, such as credit card associations and banks;
 
  •  our ability to expand PayPal’s product offerings outside of the U.S. (including our ability to obtain any necessary regulatory approvals);
 
  •  our ability to increase the acceptance of PayPal by online merchants outside of our Marketplaces platforms, which may require long implementation cycles and incentives to merchants that are initially dilutive;
 
  •  our ability to integrate, manage, and profitably expand and more effectively monetize the Skype business;
 
  •  our ability to attract new personnel in a timely and effective manner and to retain key employees;
 
  •  the continued healthy operation of our technology suppliers and other parties with whom we have commercial relations;
 
  •  continued consumer acceptance of the Internet as a medium for commerce and communication in the face of increasing publicity about fraud, spoofing, phishing, viruses, spyware, and other dangers of the Internet; and
 
  •  geopolitical events such as war, threat of war, or terrorist actions.
 
The increased variety of services offered on our websites makes it difficult for us to forecast the level or source of our revenues or earnings accurately. In view of the rapidly evolving nature of our business and our limited operating history, we believe that period-to-period comparisons of our operating results may not be meaningful, and you should not rely upon them as an indication of future performance. We do not have backlog, and substantially all of our net revenues each quarter come from transactions involving sales or payments during that quarter. Due to the inherent difficulty in forecasting revenues, it is also difficult to forecast income statement expenses as a percentage of net revenues. Quarterly and annual income statement expenses as a percentage of net revenues may be significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations of securities analysts and investors. In that event, the trading price of our common stock would almost certainly decline.
 
Our
operating results may fluctuate.


 



Our operating results have varied on a quarterly basis during
our operating history. Our operating results may fluctuate
significantly as a result of a variety of factors, many of which
are outside our control. Factors that may affect our operating
results include the following:


 




















































































































  • 
our ability to retain an active user base, attract new users,
and encourage existing users to list items for sale, purchase
items through our websites, or use our payment service or
communication software and products;
 
  • 
our ability to increase activity of the users of our
Marketplaces business, especially with respect to our top buyers
and sellers, in our most mature geographies, especially the
U.S., Germany and the U.K.;
 
  • 
the volume, size, timing, monetization, and completion rates of
transactions using our websites or technology;
 
  • 
the amount and timing of operating costs and capital
expenditures relating to the maintenance and expansion of our
businesses, operations, and infrastructure;
 
  • 
the effect of recently announced changes to our pricing,
products and policies, including our buyer/seller feedback
features;
 
  • 
the effect of recently announced management changes;
 
  • 
general economic conditions, including higher inflation, the
possibility of a recession in the U.S. and interest rate
fluctuations, as well as those economic conditions specific to
the Internet and ecommerce industries;
 
  • 
regulatory and legal actions imposing obligations on our
businesses or our users;
 
  • 
new laws or regulations, or interpretations of existing laws or
regulations, that impose liability on us for actions of our
users or otherwise harm our business models or restrict the
Internet, electronic commerce, online payments, or online
communications;
 
  • 
the actions of our competitors, including the introduction of
new sites, services, and products;
 
  • 
consumer confidence in the safety and security of transactions
using our websites or technology and our ability to manage the
costs of our user protection programs;





14




Table of Contents





 




























































































































































  • 
our ability to manage PayPal’s transaction loss rate and
payment funding mix;
 
  • 
the costs and results of litigation that involves us;
 
  • 
our ability to successfully integrate and manage businesses that
we acquire;
 
  • 
the cost and availability of online and traditional advertising,
and the success of our brand building and marketing campaigns;
 
  • 
our ability to develop product enhancements, programs, and
features at a reasonable cost and in a timely manner;
 
  • 
our ability to upgrade and develop our systems, infrastructure,
and customer service capabilities to accommodate growth and to
improve our websites at a reasonable cost while maintaining 24/7
operations;
 
  • 
technical difficulties or service interruptions involving our
websites or services provided to us or our users by third
parties;
 
  • 
our ability to comply with the requirements of entities whose
services are required for our operations, such as credit card
associations and banks;
 
  • 
our ability to expand PayPal’s product offerings outside of
the U.S. (including our ability to obtain any necessary
regulatory approvals);
 
  • 
our ability to increase the acceptance of PayPal by online
merchants outside of our Marketplaces platforms, which may
require long implementation cycles and incentives to merchants
that are initially dilutive;
 
  • 
our ability to integrate, manage, and profitably expand and more
effectively monetize the Skype business;
 
  • 
our ability to attract new personnel in a timely and effective
manner and to retain key employees;
 
  • 
the continued healthy operation of our technology suppliers and
other parties with whom we have commercial relations;
 
  • 
continued consumer acceptance of the Internet as a medium for
commerce and communication in the face of increasing publicity
about fraud, spoofing, phishing, viruses, spyware, and other
dangers of the Internet; and
 
  • 
geopolitical events such as war, threat of war, or terrorist
actions.


 



The increased variety of services offered on our websites makes
it difficult for us to forecast the level or source of our
revenues or earnings accurately. In view of the rapidly evolving
nature of our business and our limited operating history, we
believe that period-to-period comparisons of our operating
results may not be meaningful, and you should not rely upon them
as an indication of future performance. We do not have backlog,
and substantially all of our net revenues each quarter come from
transactions involving sales or payments during that quarter.
Due to the inherent difficulty in forecasting revenues, it is
also difficult to forecast income statement expenses as a
percentage of net revenues. Quarterly and annual income
statement expenses as a percentage of net revenues may be
significantly different from historical or projected rates. Our
operating results in one or more future quarters may fall below
the expectations of securities analysts and investors. In that
event, the trading price of our common stock would almost
certainly decline.


 




This excerpt taken from the EBAY 10-Q filed Oct 29, 2007.
Our operating results may fluctuate.
 
Our operating results have varied on a quarterly basis during our operating history. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may affect our operating results include the following:
 
  •  our ability to retain an active user base, attract new users, and encourage existing users to list items for sale, purchase items through our websites, or use our payment service or communication software and products;
 
  •  our ability to grow activity and activation of the users of our traditional Marketplace businesses, especially with respect to our most active buyers and sellers, in our most mature geographies, especially the U.S., Germany and the U.K.;
 
  •  the volume, size, timing, monetization, and completion rates of transactions using our websites or technology;
 
  •  the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion of our businesses, operations, and infrastructure;
 
  •  regulatory and legal actions imposing obligations on our businesses or our users;
 
  •  the actions of our competitors, including the introduction of new sites, services, and products;
 
  •  our ability to expand PayPal’s product offerings outside of the U.S. (including our ability to obtain any necessary regulatory approvals);
 
  •  our ability to manage PayPal’s transaction loss rate and payment funding mix;
 
  •  consumer confidence in the safety and security of transactions using our websites or technology and our ability to manage the costs of our user protection programs;
 
  •  the costs and results of litigation that involves us;
 
  •  our ability to integrate, manage, and profitably expand and more effectively monetize the Skype business;
 
  •  our ability to successfully integrate and manage businesses that we acquire;
 
  •  the cost and availability of online and traditional advertising, and the success of our brand building and marketing campaigns;
 
  •  new laws or regulations, or interpretations of existing laws or regulations, that impose liability on us for actions of our users or otherwise harm our business models or restrict the Internet, electronic commerce, online payments, or online communications;
 
  •  our ability to comply with the requirements of entities whose services are required for our operations, such as credit card associations and banks;
 
  •  our ability to develop product enhancements, programs, and features at a reasonable cost in a timely manner;
 
  •  our ability to upgrade and develop our systems, infrastructure, and customer service capabilities to accommodate growth and to improve our websites at a reasonable cost while maintaining 24/7 operations;
 
  •  technical difficulties or service interruptions involving our websites or services provided to us or our users by third parties;
 
  •  our ability to increase the acceptance of PayPal by online merchants outside of the eBay Marketplaces, which may require long implementation cycles and incentives to merchants that are initially dilutive;
 
  •  our ability to attract new personnel in a timely and effective manner and to retain key employees;
 
  •  the continued financial strength of our technology suppliers and other parties with whom we have commercial relations;


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Table of Contents

 
  •  continued consumer acceptance of the Internet as a medium for commerce and communication in the face of increasing publicity about fraud, spoofing, viruses, and other dangers of the Internet;
 
  •  general economic conditions and those economic conditions specific to the Internet and e-commerce industries; and
 
  •  geopolitical events such as war, threat of war, or terrorist actions.
 
The increased variety of services offered on our websites makes it difficult for us to forecast the level or source of our revenues or earnings accurately. In view of the rapidly evolving nature of our business and our limited operating history, we believe that period-to-period comparisons of our operating results may not be meaningful, and you should not rely upon them as an indication of future performance. We do not have backlog, and substantially all of our net revenues each quarter come from transactions involving sales or payments during that quarter. Due to the inherent difficulty in forecasting revenues, it is also difficult to forecast income statement expenses as a percentage of net revenues. Quarterly and annual income statement expenses as a percentage of net revenues may be significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations of securities analysts and investors. In that event, the trading price of our common stock would almost certainly decline.
 
This excerpt taken from the EBAY 10-Q filed Jul 27, 2007.
Our operating results may fluctuate.
 
Our operating results have varied on a quarterly basis during our operating history. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may affect our operating results include the following:
 
  •  our ability to retain an active user base, attract new users, and encourage existing users to list items for sale, purchase items through our websites, or use our payment service or communication software and products;
 
  •  the volume, size, timing, and completion rate of transactions using our websites or technology;
 
  •  our ability to grow activity and activation of the users of our traditional Marketplace businesses in our most mature geographies, especially the U.S., Germany and the U.K.;
 
  •  the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion of our businesses, operations, and infrastructure;
 
  •  our ability to integrate, manage, and profitably expand and more effectively monetize the Skype business;
 
  •  our ability to successfully integrate and manage other recent and prospective acquisitions;
 
  •  regulatory and legal actions imposing obligations on our businesses or our users;
 
  •  the actions of our competitors, including the introduction of new sites, services, and products;
 
  •  consumer confidence in the safety and security of transactions using our websites or technology and our ability to manage the costs of our user protection programs;
 
  •  the costs and results of litigation that involves us;
 
  •  the cost and availability of online and traditional advertising, and the success of our brand building and marketing campaigns;
 
  •  new laws or regulations, or interpretations of existing laws or regulations, that impose liability on us for actions of our users or otherwise harm our business models or restrict the Internet, electronic commerce, online payments, or online communications;
 
  •  our ability to comply with the requirements of entities whose services are required for our operations, such as credit card associations and banks;
 
  •  our ability to develop product enhancements, programs, and features at a reasonable cost in a timely manner;
 
  •  our ability to upgrade and develop our systems, infrastructure, and customer service capabilities to accommodate growth and to improve our websites at a reasonable cost while maintaining 24/7 operations;
 
  •  technical difficulties or service interruptions involving our websites or services provided to us or our users by third parties;
 
  •  our ability to increase the acceptance of PayPal by online merchants outside of the eBay Marketplaces, which may require long implementation cycles and incentives to merchants that are initially dilutive;
 
  •  our ability to expand PayPal’s product offerings outside of the U.S. (including our ability to obtain any necessary regulatory approvals);
 
  •  our ability to manage PayPal’s transaction loss rate and payment funding mix;


35

Table of Contents

 
  •  our ability to attract new personnel in a timely and effective manner and to retain key employees;
 
  •  the continued financial strength of our technology suppliers and other parties with whom we have commercial relations;
 
  •  continued consumer acceptance of the Internet as a medium for commerce and communication in the face of increasing publicity about fraud, spoofing, viruses, and other dangers of the Internet;
 
  •  general economic conditions and those economic conditions specific to the Internet and e-commerce industries; and
 
  •  geopolitical events such as war, threat of war, or terrorist actions.
 
The increased variety of services offered on our websites makes it difficult for us to forecast the level or source of our revenues or earnings accurately. In view of the rapidly evolving nature of our business and our limited operating history, we believe that period-to-period comparisons of our operating results may not be meaningful, and you should not rely upon them as an indication of future performance. We do not have backlog, and substantially all of our net revenues each quarter come from transactions involving sales or payments during that quarter. Due to the inherent difficulty in forecasting revenues, it is also difficult to forecast income statement expenses as a percentage of net revenues. Quarterly and annual income statement expenses as a percentage of net revenues may be significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations of securities analysts and investors. In that event, the trading price of our common stock would almost certainly decline.
 
This excerpt taken from the EBAY 10-Q filed Apr 25, 2007.
Our operating results may fluctuate.
 
Our operating results have varied on a quarterly basis during our operating history. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may affect our operating results include the following:
 
  •  our ability to retain an active user base, attract new users, and encourage existing users to list items for sale, purchase items through our websites, or use our payment service or communication software and products;
 
  •  the volume, size, timing, and completion rate of transactions using our websites or technology;
 
  •  our ability to grow activity and activation of the users of our traditional Marketplace businesses in our most mature geographies, especially the U.S., Germany and the U.K.;
 
  •  the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion of our businesses, operations, and infrastructure;
 
  •  our ability to integrate, manage, and profitably expand and further monetize the Skype business;
 
  •  our ability to successfully integrate and manage other recent and prospective acquisitions;
 
  •  regulatory and legal actions imposing obligations on our businesses or our users;
 
  •  the actions of our competitors, including the introduction of new sites, services, and products;
 
  •  consumer confidence in the safety and security of transactions using our websites or technology and our ability to manage the costs of our user protection programs;
 
  •  the costs and results of litigation that involves us;
 
  •  the cost and availability of online and traditional advertising, and the success of our brand building and marketing campaigns;
 
  •  new laws or regulations, or interpretations of existing laws or regulations, that harm our business models or restrict the Internet, electronic commerce, online payments, or online communications;
 
  •  our ability to comply with the requirements of entities whose services are required for our operations, such as credit card associations;
 
  •  our ability to develop product enhancements at a reasonable cost and programs and features in a timely manner;
 
  •  our ability to upgrade and develop our systems, infrastructure, and customer service capabilities to accommodate growth and to improve our websites at a reasonable cost while maintaining 24/7 operations;
 
  •  technical difficulties or service interruptions involving our websites or services provided to us or our users by third parties;
 
  •  our ability to increase the acceptance of PayPal by online merchants outside of the eBay Marketplaces;


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  •  our ability to expand PayPal’s product offerings outside of the U.S. (including our ability to obtain any necessary regulatory approvals);
 
  •  our ability to manage PayPal’s transaction loss and credit card chargeback rates and payment funding mix;
 
  •  our ability to continue Skype’s growth and find mechanisms to more effectively monetize it;
 
  •  our ability to attract new personnel in a timely and effective manner and retain key employees;
 
  •  the continued financial strength of our technology suppliers and other parties with whom we have commercial relations;
 
  •  continued consumer acceptance of the Internet as a medium for commerce and communication in the face of increasing publicity about fraud, spoofing, viruses, and other dangers of the Internet;
 
  •  general economic conditions and those economic conditions specific to the Internet and e-commerce industries; and
 
  •  geopolitical events such as war, threat of war, or terrorist actions.
 
The increased variety of services offered on our websites makes it difficult for us to forecast the level or source of our revenues or earnings accurately. In view of the rapidly evolving nature of our business and our limited operating history, we believe that period-to-period comparisons of our operating results may not be meaningful, and you should not rely upon them as an indication of future performance. We do not have backlog, and substantially all of our net revenues each quarter come from transactions involving sales or payments during that quarter. Due to the inherent difficulty in forecasting revenues, it is also difficult to forecast income statement expenses as a percentage of net revenues. Quarterly and annual income statement expenses as a percentage of net revenues may be significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations of securities analysts and investors. In that event, the trading price of our common stock would almost certainly decline.
 

EXCERPTS ON THIS PAGE:

10-Q
Jul 24, 2008
10-Q
Apr 24, 2008
10-Q
Apr 24, 2008
10-K (2 sections)
Feb 29, 2008
10-Q
Oct 29, 2007
10-Q
Jul 27, 2007
10-Q
Apr 25, 2007

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