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This excerpt taken from the EBAY 8-K filed Jan 20, 2010. Other Selected Financial Results
This excerpt taken from the EBAY 8-K filed Oct 21, 2009. Other Selected Financial Results
This excerpt taken from the EBAY 8-K filed Jul 22, 2009. Other Selected Financial Results
This excerpt taken from the EBAY 8-K filed Apr 22, 2009. Other Selected Financial Results
2
This excerpt taken from the EBAY 8-K filed Jan 22, 2009. Other
Selected Financial Results
This excerpt taken from the EBAY 8-K filed Jan 21, 2009. Other
Selected Financial Results
This excerpt taken from the EBAY 8-K filed Oct 15, 2008. Other
Selected Financial Results
This excerpt taken from the EBAY 8-K filed Jul 16, 2008. Other
Selected Financial Results
This excerpt taken from the EBAY 8-K filed Apr 16, 2008. Other
Selected Financial Results
This excerpt taken from the EBAY 8-K filed Oct 17, 2007. Other
selected financial results
Operating Margin — GAAP operating margin was (50%) in
Q3-07, compared to 23% in Q3-06 due to the goodwill impairment
charge of $1.39 billion. Non-GAAP operating margin
decreased to 31.4% in Q3-07 from 32.1% in Q3-06. The decrease in
non-GAAP operating margin is primarily the result of faster
growth from our lower margin businesses, primarily PayPal and
Skype, mostly offset by productivity gains.
Taxes — The GAAP effective tax rate for Q3-07 was
(4%), compared to 26% for Q3-06 and 23% in Q2-07. The non-GAAP
effective tax rate in Q3-07 was 10%, which was a decrease from
27% for Q3-06 and 25% in Q2-07 primarily due to a tax benefit
from a ruling issued by a tax authority related to prior periods
resulting in a favorable impact of 8 percentage points and
the remaining decrease was due to changes in the estimated
geographic mix of the company’s taxable income for the year.
Cash Flows — GAAP operating cash flows increased to
$629 million in Q3-07. Free cash flow increased to
$510 million in Q3-07.
Cash, Cash Equivalents, and Investments — The
company’s cash, cash equivalents, and investments totaled
$4.44 billion at the end of Q3-07.
“Our third quarter results reflect strong revenue growth,
even stronger non-GAAP earnings growth, and excellent free cash
flow. With strong financial performance in each of the three
quarters of the year, we approach the remainder of the year
focused on the execution of our business plan and confident in
our ability to deliver strong full-year revenue and earnings
growth,” said Bob Swan, Chief Financial Officer, eBay Inc.
Business
Outlook
Fourth Quarter 2007 — eBay expects consolidated net
revenues for Q4-07 to be in the range of $2.100 billion to
$2.150 billion. Non-GAAP earnings per diluted share for
Q4-07 are expected to be in the range of $0.39 to $0.41. These
amounts assume a US dollar to Euro exchange rate of $1.38.
Full Year 2007 — eBay now expects consolidated net
revenues for 2007 to be in the range of $7.600 billion to
$7.650 billion. Non-GAAP operating margin for 2007 is
expected to be approximately 33%. Non-GAAP earnings per diluted
share for 2007 are now expected to be in the range of $1.47 to
$1.49. These amounts assume a Q4-07 US dollar to Euro exchange
rate of $1.38 and actual rates through the first three quarters
of 2007.
Quarterly
Conference Call
eBay will host a conference call to discuss third quarter
results at 2 p.m. Pacific Time today. A live webcast of the
conference call, together with a slide presentation that
includes supplemental financial information and reconciliations
of certain non-GAAP measures to their nearest comparable GAAP
measures, can be accessed through the company’s Investor
Relations website at http://investor.ebay.com. In addition, an
archive of the webcast will be accessible through the same link.
About
eBay Inc.
Founded in 1995, eBay Inc. connects hundreds of millions of
people around the world every day, empowering them to explore
new opportunities and innovate together. eBay Inc. does this by
providing the Internet platforms of choice for global commerce,
payments and communications. Since its inception, eBay Inc. has
expanded to include some of the strongest brands in the world,
including eBay, PayPal, Skype, Shopping.com, and others. eBay
Inc. is headquartered in San Jose, California.
Non-GAAP Financial
Measures
This press release includes the following financial measures
defined as “non-GAAP financial measures” by the
Securities and Exchange Commission (SEC): non-GAAP net income,
non-GAAP earnings per diluted share, non-GAAP operating income,
non-GAAP operating margin, non-GAAP effective tax rate, and free
cash flow. These measures may be different from non-GAAP
financial measures used by other companies. The presentation of
this financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance
with generally accepted accounting principles. For a
reconciliation of other non-GAAP financial measures to the
nearest comparable GAAP measures, see
“Non-GAAP Measures of Financial Performance,”
“Reconciliation of GAAP Operating Income (Loss) to
Non-GAAP Operating Income,” “Reconciliation of
GAAP Net Income (Loss) to Non-GAAP Net Income,”
“Reconciliation of GAAP to Non-GAAP Effective Tax
Rate,” “Reconciliation of Operating Cash Flows to Free
Cash Flow” and “Business Outlook” included in
this press release.
Forward-Looking
Statements
This press release contains forward-looking statements relating
to the future performance of eBay and its consolidated
subsidiaries. These statements involve risks and uncertainties,
and the company’s actual results could differ materially
from those discussed. Factors that could cause or contribute to
such differences include, but are not limited to: the
company’s need to increasingly achieve growth from its
existing users in its more established markets; the
company’s ability to deal with the increasingly competitive
e-commerce
environment, including competition for its sellers from other
trading sites and other means of selling, and competition for
its buyers from other merchants, online and offline; the need to
manage an increasingly large enterprise with a broad range of
businesses of varying degrees of maturity and in many different
geographies; the regulatory, patent, competitive and other risks
specific to Skype; the competitive, regulatory, credit card
association, and other risks specific to PayPal, especially as
it continues to expand geographically; the company’s need
to manage other regulatory, tax, and litigation risks as its
product offerings expand, its services are offered in more
jurisdictions and applicable laws become more restrictive; the
company’s ability to upgrade and develop its systems,
infrastructure and customer service capabilities to accommodate
growth at a reasonable cost; the company’s ability to
maintain site stability and performance on all of its sites
while adding new products and features in a timely fashion;
fluctuations in foreign exchange rates; the company’s
ability to profitably expand its business model to new types of
merchandise and sellers; assumptions and methods used to value
and expense stock options provided to employees; and, the
company’s ability to profitably integrate, manage and grow
businesses that have been acquired recently or may be acquired
in the future. The forward-looking statements in this release do
not include the potential impact of any acquisitions that may be
announced
and/or
completed after the date hereof.
More information about factors that could affect the
company’s operating results is included under the captions
“Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of
Operations” in the company’s annual report on
Form 10-K
and quarterly reports on
Form 10-Q,
copies of which may be obtained by visiting the company’s
investor relations website at http://investor.ebay.com or the
SEC’s website at www.sec.gov. Undue reliance should not be
placed on the forward-looking statements in this release, which
are based on information available to the company on the date
hereof. eBay assumes no obligation to update such statements.
eBay
Inc.
This excerpt taken from the EBAY 8-K filed Jul 18, 2007. Other
selected financial results
Operating Margin — GAAP operating margin increased to
24.9% in Q2-07, up from 22.1% in Q2-06. Non-GAAP operating
margin decreased slightly to 32.4% in Q2-07, from 32.6% in
Q2-06. The slight decrease in non-GAAP operating margin is the
result of the negative gross margin mix impact coming from our
lower margin businesses, such as PayPal and Skype, mostly offset
by productivity gains.
Taxes — The GAAP effective tax rate for Q2-07 was 23%,
which was a decrease from 26% for Q2-06 and 24% in Q1-07. The
non-GAAP effective tax rate in Q2-07 was 25%, which was a
decrease from 28% for Q2-06 and 26% in Q1-07. The lower tax
rates in Q2-07 resulted primarily from increased profits
generated through the expansion of our international operations.
Cash Flows — GAAP operating cash flows increased to
$655 million in Q2-07. Free cash flow increased to
$533 million in Q2-07.
Cash, Cash Equivalents, and Investments — The
company’s cash, cash equivalents, and investments totaled
approximately $3.78 billion at the end of Q2-07.
“Overall, we posted great financial results in the second
quarter.” said Bob Swan, chief financial officer, eBay Inc.
“We’re now halfway through the year, and we’re
increasingly confident in our ability to deliver even stronger
full year revenue and earnings growth through our portfolio of
businesses.”
Business
Outlook
Third Quarter 2007 — eBay expects consolidated net
revenues for Q3-07 to be in the range of $1.775 billion to
$1.825 billion. Non-GAAP earnings per diluted share for
Q3-07 are expected to be in the range of $0.31 to $0.33. These
amounts assume a US dollar to Euro exchange rate of $1.30.
Full Year 2007 — eBay now expects consolidated net
revenues for 2007 to be in the range of $7.300 billion to
$7.450 billion. Non-GAAP operating margin for 2007 is
expected to be approximately 33%. Non-GAAP earnings per diluted
share for 2007 are now expected to be in the range of $1.34 to
$1.38. These amounts assume a US dollar to Euro exchange rate of
$1.30.
Quarterly
Conference Call
eBay will host a conference call to discuss second quarter
results at 2 p.m. Pacific Time today. A live webcast
of the conference call, together with a slide presentation that
includes supplemental financial information and reconciliations
of certain non-GAAP measures to their nearest comparable GAAP
measures, can be accessed through the company’s Investor
Relations website at http://investor.ebay.com. In addition, an
archive of the webcast will be accessible through the same link.
About
eBay Inc.
Founded in 1995, eBay Inc. connects hundreds of millions of
people around the world every day, empowering them to explore
new opportunities and innovate together. eBay Inc. does this by
providing the Internet platforms of choice for global commerce,
payments and communications. Since its inception, eBay Inc. has
expanded to include some of the strongest brands in the world,
including eBay, PayPal, Skype, Shopping.com, and others. eBay
Inc. is headquartered in San Jose, California.
Non-GAAP Financial
Measures
This press release includes the following financial measures
defined as “non-GAAP financial measures” by the
Securities and Exchange Commission (SEC): non-GAAP net income,
non-GAAP earnings per diluted share, non-GAAP operating income,
non-GAAP operating margin, non-GAAP effective tax rate, and free
cash flow. These measures may be different from non-GAAP
financial measures used by other companies. The presentation of
this financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance
with generally accepted accounting principles. See
“Non-GAAP Measures of Financial Performance,”
“Reconciliation of GAAP to Non-GAAP Operating
Income,” “Reconciliation of GAAP to Non-GAAP Net
Income,” “Reconciliation of GAAP to
Non-GAAP Effective Tax Rate,” “Reconciliation of
Operating Cash Flows to Free Cash Flow” and “Business
Outlook” included in this press release for further
information regarding these non-GAAP financial measures,
including a reconciliation of these measures to the nearest
comparable GAAP measures.
Forward-Looking
Statements
This press release contains forward-looking statements relating
to the future performance of eBay and its consolidated
subsidiaries. These statements involve risks and uncertainties,
and the company’s actual results could differ materially
from those discussed. Factors that could cause or contribute to
such differences include, but are not limited to: the
company’s need to increasingly achieve growth from its
existing users as well as from new users in its more established
markets; the company’s ability to deal with the
increasingly competitive
e-commerce
environment, including competition for its sellers from other
trading sites and other means of selling, and competition for
its buyers from other merchants, online and offline; the need to
manage an increasingly large enterprise with a broad range of
businesses of varying degrees of maturity and in many different
geographies; the regulatory, patent, and competitive and other
risks specific to Skype; the competitive, regulatory, credit
card association, and other risks specific to PayPal, especially
as it continues to expand geographically; the company’s
need to manage other regulatory, tax, and litigation risks as
its product offerings expand, its services are offered in more
jurisdictions and applicable laws become more restrictive; the
company’s ability to upgrade and develop its systems,
infrastructure and customer service capabilities to accommodate
growth at a reasonable cost; the company’s ability to
maintain site stability and performance on all of its sites
while adding new products and features in a timely fashion;
fluctuations in foreign exchange rates; the company’s
ability to profitably expand its business model to new types of
merchandise and sellers; assumptions and methods used to value
and expense stock options provided to employees; and, the
company’s ability to profitably integrate, manage and grow
recent and future acquisitions and other transactions. The
forward-looking statements in this release do not include the
potential impact of any acquisitions that may be announced
and/or
completed after the date hereof.
More information about factors that could affect the
company’s operating results is included under the captions
“Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of
Operations” in the company’s annual report on
Form 10-K
and quarterly reports on
Form 10-Q,
copies of which may be obtained by visiting the company’s
investor relations website at http://investor.ebay.com or the
SEC’s website at www.sec.gov. Undue reliance should not be
placed on the forward-looking statements in this release, which
are based on information available to the company on the date
hereof. eBay assumes no obligation to update such statements.
eBay
Inc.
This excerpt taken from the EBAY 8-K filed Apr 18, 2007. Other
selected financial results
Operating Margin — GAAP operating margin increased to
26.5% in Q1-07, up from 23.2% in Q1-06. Non-GAAP operating
margin increased to 33.6% in Q1-07, from 33.1% in Q1-06. The
year-over-year
increase in non-GAAP operating margin is the result of continued
expense leverage and productivity and the benefit of a weaker US
dollar, which was offset by the negative gross margin mix impact
coming from our higher growth, lower margin businesses of PayPal
and Skype.
Taxes — The GAAP effective tax rate for Q1-07 was 24%,
which was a decrease from 29% for Q1-06 and 28% in Q4-06. The
non-GAAP effective tax rate in Q1-07 was 26%, which was a
decrease from 29% for Q1-06 and Q4-06. The lower tax rates in
Q1-07 resulted primarily from expansion of our international
operations and tax regulations affecting the allocation of costs
to our international businesses. During Q1-07, the company
implemented Financial Interpretation No. 48,
“Accounting for Uncertainty in Income Taxes” which
resulted in a reclassification of certain tax liabilities from
current to non-current on the balance sheet and had no impact on
net income.
Cash Flows — GAAP operating cash flows decreased 3%
year over year to $564 million in Q1-07. Free cash flow
increased to $479 million in Q1-07 compared to
$451 million in Q1-06.
Cash, Cash Equivalents, and Investments — The
company’s cash, cash equivalents, and investments totaled
approximately $3.50 billion at the end of Q1-07.
“Our Q1 results reflect a strong start to 2007,” said
Bob Swan, chief financial officer, eBay Inc. “We delivered
solid revenue growth, expanded operating margins and strong
earnings and free cash flow, while deploying capital to
strengthen our business with our acquisition of StubHub and our
continued share repurchase program.”
Business
Outlook
Second Quarter 2007 — eBay expects consolidated net
revenues for Q2 2007 to be in the range of $1.750 billion
to $1.800 billion. Non-GAAP earnings per diluted share for
Q2 2007 are expected to be in the range of $0.31 to $0.33. These
amounts assume a US dollar to Euro exchange rate of $1.30.
Full Year 2007 — eBay now expects consolidated net
revenues for 2007 to be in the range of $7.200 billion to
$7.450 billion. Non-GAAP operating margin for 2007 is
expected to be 33%. Non-GAAP earnings per diluted share for 2007
are now expected to be in the range of $1.30 to $1.34. These
amounts assume a US dollar to Euro exchange rate of $1.30.
Quarterly
Conference Call
eBay will host a conference call to discuss first quarter
results at 2 p.m. Pacific Time today. A live webcast of the
conference call, together with a slide presentation which
includes supplemental financial information and reconciliations
of certain non-GAAP measures to their nearest comparable GAAP
measures, can be accessed through the company’s Investor
Relations website at http://investor.ebay.com. In addition, an
archive of the webcast will be accessible through the same link.
About
eBay Inc.
Founded in 1995, eBay Inc. connects hundreds of millions of
people around the world every day, empowering them to explore
new opportunities and innovate together. eBay Inc. does this by
providing the Internet platforms of choice for global commerce,
payments and communications. Since its inception, eBay Inc. has
expanded to include some of the strongest brands in the world,
including eBay, PayPal, Skype, Shopping.com, and others. eBay
Inc. is headquartered in San Jose, California.
Non-GAAP Measures
This press release includes the following financial measures
defined as “non-GAAP financial measures” by the
Securities and Exchange Commission: non-GAAP net income,
non-GAAP earnings per diluted share, non-GAAP operating income,
non-GAAP operating margin, non-GAAP effective tax rate, and free
cash flows. These measures may be different from non-GAAP
financial measures used by other companies. The presentation of
this financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance
with generally accepted accounting principles. See
“Non-GAAP Measures of Financial Performance,”
“Reconciliation of GAAP to Non-GAAP Operating
Income,” “Reconciliation of GAAP to Non-GAAP Net
Income,” “Reconciliation of GAAP to Non-
GAAP Effective Tax Rate,” “Reconciliation of
Operating Cash Flow to Free Cash Flow” and “Business
Outlook” included in this press release for further
information regarding these non-GAAP financial measures,
including a reconciliation of these measures to the nearest
comparable GAAP measures.
Forward-Looking
Statements
This press release contains forward-looking statements relating
to the future performance of eBay and its consolidated
subsidiaries. These statements involve risks and uncertainties,
and the company’s actual results could differ materially
from those discussed. Factors that could cause or contribute to
such differences include, but are not limited to: the
company’s need to increasingly achieve growth from its
existing users as well as from new users in its more established
markets; the company’s ability to deal with the
increasingly competitive
e-commerce
environment, including competition for its sellers from other
trading sites and other means of selling, and competition for
its buyers from other merchants, online and offline; the need to
manage an increasingly large enterprise with a broad range of
businesses of varying degrees of maturity and in many different
geographies; the regulatory, patent, and competitive risks
specific to Skype; the competitive, regulatory, credit card
association, and other risks specific to PayPal, especially as
it continues to expand geographically; the company’s need
to manage other regulatory, tax, and litigation risks as its
product offerings expand and its services are offered in more
jurisdictions; the company’s ability to upgrade and develop
its systems, infrastructure and customer service capabilities to
accommodate growth at a reasonable cost; the company’s
ability to maintain site stability and performance on all of its
sites while adding new products and features in a timely
fashion; fluctuations in foreign exchange rates; the
company’s ability to profitably expand its model to new
types of merchandise and sellers; assumptions and methods used
to value and expense stock options provided to employees; and,
the company’s ability to profitably integrate, manage and
grow recent and future acquisitions and other transactions. The
forward looking statements in this release do not include the
potential impact of any acquisitions that may be announced
and/or
completed after the date hereof.
More information about factors that could affect the
company’s operating results is included under the captions
“Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of
Operations” in the company’s annual report on
Form 10-K
and quarterly reports on
Form 10-Q,
copies of which may be obtained by visiting the company’s
investor relations website at http://investor.ebay.com or the
SEC’s website at www.sec.gov. Undue reliance should not be
placed on the forward-looking statements in this release, which
are based on information available to the company on the date
hereof. eBay assumes no obligation to update such statements.
eBay
Inc.
This excerpt taken from the EBAY 8-K filed Jan 24, 2007. Other
selected financial results
Operating Margin — GAAP operating margin decreased to
26% in
Q4-06, down
from 28% in
Q4-05.
Excluding stock-based compensation, operating margin was 30%,
consistent with
Q4-05.
Non-GAAP operating margin decreased to 33.4% in
Q4-06, from
33.7% in
Q4-05. The
year-over-year
decrease in non-GAAP operating margin is the result of a
decrease in our gross margin, driven by business mix coming from
our lower gross margin businesses, PayPal and Skype, and
investment in site operations capacity across our businesses,
offset by more efficient spending in Sales & Marketing
and Product Development.
Tax Rate — The GAAP effective tax rate for
Q4-06 was
28%, which was a decrease from 29% for
Q4-05. The
non-GAAP effective tax rate in
Q4-06 was
29%, which was an increase from 28% for
Q4-05. The
GAAP effective tax rate for
FY-06 was
27%, which was a decrease from 30% from
FY-05. The
non-GAAP effective tax rate in
FY-06 was
28%, which was a decrease from 30% in
FY-05. Lower
tax rates in 2006 resulted primarily from expansion of our
international businesses and from changes in our operations in
international markets.
Cash Flows — GAAP operating cash flows increased 19%
year over year to $626 million in
Q4-06. Free
cash flows, representing operating cash flows less net purchases
of property and equipment of $97 million, increased 24%
year over year to $529 million.
Cash, Cash Equivalents, and Investments — The
company’s cash, cash equivalents, and investments totaled
approximately $3.5 billion at the end of
Q4-06.
“Overall, Q4 was a great quarter, with strong results
across all of our businesses” said Bob Swan, Chief
Financial Officer. “The $1 billion share repurchase we
executed this quarter, in addition to expanding the program for
another $2 billion, further underscores our confidence in
the long-term outlook of the business.”
Business
Outlook
First Quarter 2007 — eBay expects consolidated net
revenues for Q1 2007 to be in the range of $1.670 billion
to $1.720 billion. Non-GAAP earnings per diluted share for
Q1 2007 are expected to be in the range of $0.28 to $0.30. These
amounts assume a US dollar to Euro exchange rate of $1.25.
Full Year 2007 — eBay expects consolidated net
revenues for 2007 to be in the range of $7.050 billion to
$7.300 billion. Non-GAAP operating margin for 2007 is
expected to be 33%. Non-GAAP earnings per diluted share for 2007
are expected to be in the range of $1.25 to $1.29. These amounts
assume a US dollar to Euro exchange rate of $1.25.
Quarterly
Conference Call
eBay will host a conference call to discuss fourth quarter
results at 2 p.m. Pacific Time today. A live webcast of the
conference call, together with supplemental financial
information and reconciliations of certain non-GAAP measures to
their nearest comparable GAAP measures, can be accessed through
the company’s Investor Relations website at
http://investor.ebay.com. In addition, an archive of the webcast
will be accessible through the same link.
About
eBay Inc.
Founded in 1995, eBay pioneers communities built on commerce,
sustained by trust, and inspired by opportunity. eBay enables
ecommerce on a local, national and international basis with an
array of websites — including the eBay Marketplaces,
PayPal, Skype, Kijiji, Rent.com and Shopping.com —
that bring together millions of buyers and sellers every day.
Non-GAAP Measures
This press release includes the following financial measures
defined as “non-GAAP financial measures” by the
Securities and Exchange Commission: non-GAAP net income,
non-GAAP earnings per diluted share, non-GAAP operating income,
non-GAAP operating margin, non-GAAP effective tax rate, and free
cash flows as well as GAAP amounts excluding the impact of
stock-based compensation and the corresponding percentages of
net revenues. These measures may be different from non-GAAP
financial measures used by other companies. The presentation of
this financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance
with generally accepted accounting principles. See
“Non-GAAP Measures of Financial Performance,”
“Reconciliation of GAAP to Non-GAAP Operating
Income,” “Reconciliation of GAAP to Non-GAAP Net
Income,” “Reconciliation of GAAP to
Non-GAAP Effective Tax Rate,” “Reconciliation of
Operating Cash Flow to Free Cash Flow” and “Business
Outlook” included in this press release for further
information regarding these non-GAAP financial measures,
including a reconciliation of these measures to the nearest
comparable GAAP measures.
Forward-Looking
Statements
This press release contains forward-looking statements relating
to the future performance of eBay and its consolidated
subsidiaries. These statements involve risks and uncertainties,
and the company’s actual results could differ materially
from those discussed. Factors that could cause or contribute to
such differences include, but are not limited to: the
company’s need to increasingly achieve growth from its
existing users as well as from new users in its more established
markets; the company’s ability to deal with the
increasingly competitive ecommerce environment, including
competition for its sellers from other trading sites and other
means of selling, and competition for its buyers from other
merchants, online and offline; the need to manage an
increasingly large enterprise with a broad range of businesses
of varying degrees of maturity and in many different
geographies; the regulatory, patent, and competitive risks
specific to Skype; the competitive, regulatory, credit card
association, and other risks specific to PayPal, especially as
it continues to expand geographically; the company’s need
to manage other regulatory, tax, and litigation risks as its
product offerings expand and its services are offered in more
jurisdictions; the company’s ability to upgrade and develop
its systems, infrastructure and customer service capabilities to
accommodate growth at a reasonable cost; the company’s
ability to maintain site stability and performance on all of its
sites while adding new products and features in a timely
fashion; fluctuations in foreign exchange rates; the
company’s ability to profitably expand its model to new
types of merchandise and sellers; assumptions and methods used
to value and expense stock options provided to employees; and,
the company’s ability to profitably integrate, manage and
grow recent and future acquisitions and other transactions. The
forward looking statements in this release do not include the
potential impact of any acquisitions that may be announced
and/or
completed after the date hereof.
More information about factors that could affect the
company’s operating results is included under the captions
“Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of
Operations” in the company’s annual report on
Form 10-K
and quarterly reports on
Form 10-Q,
copies of which may be obtained by visiting the company’s
investor relations website at investor.ebay.com or the
SEC’s website at www.sec.gov. Undue reliance should not be
placed on the forward-looking statements in this release, which
are based on information available to the company on the date
hereof. eBay assumes no obligation to update such statements.
This excerpt taken from the EBAY 8-K filed Oct 18, 2006. Other
selected financial results
Operating Margin — GAAP operating margin decreased to
23% in
Q3-06, down
from 32% in
Q3-05.
Excluding stock-based compensation of $74 million, GAAP
operating margin would have been 28%, down from 32% in
Q3-05.
Non-GAAP operating margin decreased to 32% in
Q3-06, down
from 36% in
Q3-05. The
year-over-year
decrease in non-GAAP operating margin was driven primarily by
the inclusion of the Skype business, investment in site
operations capacity and higher costs for our consumer protection
programs.
Tax Rate — The GAAP effective tax rate for
Q3-06 was
26%, a decrease from 34% for
Q3-05 and
consistent with Q2-06. The non-GAAP effective tax rate in
Q3-06 was
27%, a decrease from 34% for
Q3-05 and
from 28% for
Q2-06. Tax
rates in the prior year period were higher due to a one-time
charge for the final application of tax regulations related to
intercompany cost sharing arrangements. Excluding the one-time
charge, the difference between the effective tax rates for
Q3-06 as
compared to
Q3-05 and
Q2-06 result primarily from changes in the estimated geographic
mix of the company’s taxable income.
Cash Flows — GAAP operating cash flows increased 6%
year over year to $522 million in Q3-06. Free cash flows,
representing operating cash flows less net purchases of property
and equipment of $137 million, decreased 14% year over year
to $385 million. The decrease in free cash flow is due in
part to increases in purchases of property and equipment,
primarily related to data center and software investments to
support capacity expansion in our business, and capitalized
product development costs related to our websites.
Cash, Cash Equivalents, and Investments — The
company’s cash, cash equivalents, and investments totaled
approximately $3.8 billion at the end of Q3-06.
“We’re pleased with the solid revenue growth, strong
earnings and cash flow we delivered in Q3,” said Bob Swan,
Chief Financial Officer. “Our long-term confidence in the
business is underscored by the significant share repurchase we
executed in the quarter.”
Business
Outlook
The following guidance includes the estimated impact of
expensing stock options from the adoption of FAS 123(R),
which has been reflected in eBay’s operating results
beginning in Q1-06.
Fourth Quarter 2006 — eBay expects consolidated net
revenues for Q4 2006 to be in the range of $1.615 billion
to $1.675 billion. GAAP earnings per diluted share for Q4
2006 are expected to be in the range of $0.21 to $0.22. GAAP
earnings per diluted share for Q4 2006 includes the estimated
impact of stock-based compensation from the adoption of
FAS 123(R) of approximately $0.03-$0.04. Non-GAAP earnings
per diluted share for Q4 2006 are expected to be in the range of
$0.27 to $0.28. This guidance assumes a US dollar to Euro
exchange rate of $1.25.
Full Year 2006 — eBay expects consolidated net
revenues 2006 to be in the range of $5.865 billion to
$5.925 billion. GAAP earnings per diluted share for 2006
are expected to be in the range of $0.75 to $0.76. GAAP earnings
per diluted share for 2006 includes the estimated impact of
stock-based compensation from the adoption of FAS 123(R) of
approximately $0.15 to $0.16 per diluted share. Non-GAAP
earnings per diluted share for 2006 are expected to
be in the range of $1.01 to $1.02. This guidance assumes a Q4
2006 US dollar to Euro exchange rate of $1.25, and actual rates
through the first three quarters of 2006.
Full Year 2007 — eBay expects organic consolidated net
revenue growth for 2007 in the range of 17% to 21% over 2006
revenues. GAAP and non-GAAP operating margins are expected to
improve by at least 0.5 percentage points over 2006 GAAP
and non-GAAP operating margins. GAAP and non-GAAP diluted
earnings per share are expected to grow by at least 20% over
2006 GAAP and non-GAAP earnings per share. This guidance assumes
a US dollar to Euro exchange rate of $1.25 and does not reflect
the potential impact of the adoption of FASB Interpretation
No. 48 Accounting for Uncertainty in Income Taxes
(FIN 48). We are currently evaluating the impact of
adopting FIN 48 (which will be effective January 1,
2007) on our consolidated financial position and results of
operations.
Quarterly
Conference Call
eBay will host a conference call to discuss third quarter
results at 2 p.m. Pacific Time today. A live webcast of the
conference call can be accessed through the company’s
Investor Relations website at http://investor.ebay.com. In
addition, an archive of the webcast will be accessible through
the same link.
About
eBay Inc.
Founded in 1995, eBay pioneers communities built on commerce,
sustained by trust, and inspired by opportunity. eBay enables
ecommerce on a local, national and international basis with an
array of websites — including the eBay Marketplaces,
PayPal, Skype, Kijiji, Rent.com and Shopping.com —
that bring together millions of buyers and sellers every day.
Non-GAAP Measures
This press release includes the following financial measures
defined as “non-GAAP financial measures” by the
Securities and Exchange Commission: non-GAAP net income,
non-GAAP earnings per diluted share, non-GAAP operating income,
non-GAAP operating margin, non-GAAP effective tax rate, and free
cash flows as well as GAAP amounts excluding the impact of
stock-based compensation and the corresponding percentages of
net revenues. These measures may be different from non-GAAP
financial measures used by other companies. The presentation of
this financial information is not intended to be considered in
isolation or as a substitute for the financial information
prepared and presented in accordance with generally accepted
accounting principles. See “Unaudited Condensed
Consolidated Statements of Income” and “Unaudited
Reconciliations of GAAP to Non-GAAP Condensed Consolidated
Statements of Income” included in this press release for
further information regarding these non-GAAP financial measures,
including a reconciliation of these measures to the nearest GAAP
measures.
Forward-Looking
Statements
This press release contains forward-looking statements relating
to the future performance of eBay and its consolidated
subsidiaries. These statements involve risks and uncertainties,
and the company’s actual results could differ materially
from those discussed. Factors that could cause or contribute to
such differences include, but are not limited to: the
company’s need to increasingly achieve growth from its
existing users as well as from new users in its more established
markets; the company’s ability to deal with the
increasingly competitive ecommerce environment, including
competition for its sellers from other trading sites and other
means of selling, and competition for its buyers from other
merchants, online and offline; the need to integrate, manage,
and profitably expand its recently-acquired businesses; the need
to manage an increasingly large enterprise with a broad range of
businesses of varying degrees of maturity and in many different
geographies; the regulatory, patent, and competitive risks
specific to Skype; the competitive, regulatory, credit card
association, and other risks specific to PayPal, especially as
it continues to expand geographically; the company’s need
to manage other regulatory, tax, and litigation risks as its
product offerings expand and its services are offered in more
jurisdictions; the company’s ability to upgrade and develop
its systems, infrastructure and customer service capabilities to
accommodate growth at a reasonable cost; the company’s
ability to maintain site stability and performance on all of its
sites while adding new products and features in a timely
fashion; fluctuations in foreign exchange rates; the
company’s ability to profitably expand its model to new
types of merchandise and sellers; assumptions and methods used
to value and expense stock options provided to employees; and,
the company’s ability to profitably integrate and manage
recent
and future acquisitions and other transactions. The forward
looking statements in this release do not include the potential
impact of any acquisitions that may be announced
and/or
completed after the date hereof.
More information about factors that could affect the
company’s operating results is included under the captions
“Risk Factors” and “Management’s Discussion
and Analysis of Financial Condition and Results of
Operations” in the company’s annual report on
Form 10-K
and quarterly reports on
Form 10-Q,
copies of which may be obtained by visiting the company’s
investor relations website at investor.ebay.com or the
SEC’s website at www.sec.gov. Undue reliance should not be
placed on the forward-looking statements in this release, which
are based on information available to the company on the date
hereof. eBay assumes no obligation to update such statements.
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