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This excerpt taken from the EBAY 10-K filed Feb 17, 2010. Overview For most of fiscal 2009, we operated 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 our online classifieds businesses, our secondary tickets marketplace (StubHub), our online shopping comparison website (Shopping.com) and our apartment listing service platform (Rent.com), as well as our fixed price media marketplace (Half.com). Our Payments segment is comprised of our online payment solutions — PayPal (which enables individuals and businesses to securely, easily and quickly send and receive payments online in approximately 190 markets worldwide) and Bill Me Later. Our Communications segment, which consisted of Skype, enabled Internet communications calls between Skype users and provided low-cost connectivity to traditional fixed-line and mobile telephones. On November 19, 2009, we completed the sale of Skype to an investor group (please see “Note 4 — Sale of Skype” to our consolidated financial statements for additional information related to this transaction). Skype was consolidated with our results of operations through November 19, 2009, but was not consolidated with our results of operations after November 19, 2009. Following the completion of the sale of Skype, we operated and continue to operate two primary business segments: Marketplaces and Payments. Overall, revenue increased 2% to $8.7 billion in 2009 compared to 2008. The increase was driven primarily by PayPal offset by a decline in revenues generated from our Marketplaces business. We achieved an operating margin of 17% in 2009 compared to 24% in 2008 driven by the impact of a legal settlement charge, acquisitions and foreign currency movements against the U.S. dollar. Diluted earnings per share increased to $1.83 in 2009 compared to $1.36 in 2008 driven primarily by the gain on the sale of Skype. Operating cash flow increased to $2.91 billion in 2009 from $2.88 billion in 2008. Some key operating metrics that members of our senior management regularly review to evaluate our financial results include net promoter score (NPS), market share, gross merchandise volume (GMV), GMV excluding vehicles, number of sold items, net total payment volume (TPV), net number of payments, free cash flow, and revenue, excluding acquisitions and foreign currency impact.
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Table of ContentsOutlook We are cautiously optimistic about the current economic environment for fiscal 2010. We will continue to focus on driving operational efficiencies designed to enable us to reallocate resources into strategies and initiatives that we believe will directly benefit our customers and increase activity on our platforms. In 2010, we plan to continue our emphasis on becoming a more customer-focused and technology driven company with clear priorities for our Marketplaces and Payments businesses. The 2010 strategy for our Marketplaces business is to make more progress in trust, value and selection by:
The 2010 strategy for our Payments business is to strengthen and expand its position as a leader in on-line payments by:
This excerpt taken from the EBAY 10-Q filed Apr 28, 2009. Overview 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 our online classifieds businesses, our secondary tickets marketplace (StubHub), our online shopping comparison website (Shopping.com), our apartment listing service platform (Rent.com), as well as our fixed price media marketplace (Half.com). Our payments segment is comprised of our online payment solutions — PayPal (which enables individuals and businesses to securely, easily and quickly send and receive payments online in approximately 190 markets worldwide) and Bill Me Later (which we acquired in November 2008 and which enables online U.S. merchants to offer, and U.S. consumers to obtain, transactional credit at the point of sale). Our Communications segment, which consists of Skype, enables Voice over Internet Protocol (VoIP) calls between Skype users and provides low-cost connectivity to traditional fixed-line and mobile telephones. For the three months ended March 31, 2009, net revenues decreased 8% to $2.0 billion, diluted earnings per share decreased from $0.34 to $0.28 and operating cash flow decreased 13% to $668.5 million, compared to the same period of the prior year. While our Marketplaces segment, in total, experienced a decrease in revenue of 18%, our Payments and Communications segments achieved revenue growth rates of 11% and 21%, respectively. Although our operating margin decreased four percentage points to 21%, our Marketplaces and Communications segment margins increased 1% and 9%, respectively, while our Payments segment margin decreased 5%, due primarily to our acquisition of Bill Me Later during the fourth quarter of 2008.
15
Some key operating metrics that members of our senior management regularly review to evaluate our financial results include gross merchandise volume (GMV), number of sold items, net total payment volume (TPV), Merchant Services net total payment volume, SkypeOut Minutes, free cash flow (operating cash flow less capital expenditures), and revenue, excluding acquisitions and foreign currency impact. These excerpts taken from the EBAY 10-K filed Feb 20, 2009. Overview
eBay Inc. was formed as a sole proprietorship in September 1995
and was incorporated in California in May 1996. In April 1998,
we reincorporated in Delaware, and in September 1998, we
completed the initial public offering of our common stock. Our
principal executive offices are located at 2145 Hamilton Avenue,
San Jose, California 95125, and our telephone number is
(408) 376-7400.
When we refer to “we,” “our” or
“eBay” in this Annual Report on
Form 10-K,
we mean the current Delaware corporation (eBay Inc.) and its
California predecessor, as well as all of its consolidated
subsidiaries. When we refer to “eBay.com,” we mean the
online marketplace located at www.ebay.com and its
localized counterparts. When we refer to “PayPal,” we
mean the online payments platform located at www.paypal.com
and its localized counterparts. When we refer to
“Skype,” we mean the Voice over Internet Protocol, or
VoIP, offerings provided by our subsidiary Skype Technologies
S.A.
Our purpose is to pioneer new communities around the world built
on commerce, sustained by trust and inspired by opportunity. We
provide online marketplaces for the sale of goods and services
as well as other online commerce, or ecommerce, platforms,
online payment solutions and online communications offerings to
a diverse community of individuals and businesses.
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, our
other online platforms, such as our online classifieds
businesses, our secondary tickets marketplace (StubHub), our
online shopping comparison website (Shopping.com), our apartment
listing service platform (Rent.com), as well as our fixed price
media marketplace (Half.com). Our Payments segment is comprised
of our online payment solutions PayPal and Bill Me Later (which
we acquired in November 2008). 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 net transaction revenues from all three of our
business segments. Our net transaction revenues from our
Marketplaces segment are derived primarily from listing and
final value fees paid by sellers. For our Payments segment, net
transaction revenues are generated primarily by fees paid by
merchants for payment processing services. Our Communications
segment net transaction revenues are generated primarily from
fees charged to users to connect Skype’s VoIP product to
traditional fixed-line and mobile telephones. These fees are
charged on a per-minute basis or on a subscription basis and we
refer to these minutes as SkypeOut minutes.
We generate marketing services and other revenues from all three
of our business segments. Our marketing services are derived
principally from the sale of advertisements, revenue sharing
arrangements, classifieds fees, lead referral fees. Other
revenues are derived principally from interest earned from banks
on certain PayPal
Table of Contents
customer account balances, interest and fees earned on the Bill
Me Later loan portfolio and from contractual arrangements with
third parties that provide services to all of our users.
Overview eBay Inc. was formed as a sole proprietorship in September 1995 and was incorporated in California in May 1996. In April 1998, we reincorporated in Delaware, and in September 1998, we completed the initial public offering of our common stock. Our principal executive offices are located at 2145 Hamilton Avenue, San Jose, California 95125, and our telephone number is (408) 376-7400. When we refer to “we,” “our” or “eBay” in this Annual Report on Form 10-K, we mean the current Delaware corporation (eBay Inc.) and its California predecessor, as well as all of its consolidated subsidiaries. When we refer to “eBay.com,” we mean the online marketplace located at www.ebay.com and its localized counterparts. When we refer to “PayPal,” we mean the online payments platform located at www.paypal.com and its localized counterparts. When we refer to “Skype,” we mean the Voice over Internet Protocol, or VoIP, offerings provided by our subsidiary Skype Technologies S.A. Our purpose is to pioneer new communities around the world built on commerce, sustained by trust and inspired by opportunity. We provide online marketplaces for the sale of goods and services as well as other online commerce, or ecommerce, platforms, online payment solutions and online communications offerings to a diverse community of individuals and businesses. 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, our other online platforms, such as our online classifieds businesses, our secondary tickets marketplace (StubHub), our online shopping comparison website (Shopping.com), our apartment listing service platform (Rent.com), as well as our fixed price media marketplace (Half.com). Our Payments segment is comprised of our online payment solutions PayPal and Bill Me Later (which we acquired in November 2008). 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 net transaction revenues from all three of our business segments. Our net transaction revenues from our Marketplaces segment are derived primarily from listing and final value fees paid by sellers. For our Payments segment, net transaction revenues are generated primarily by fees paid by merchants for payment processing services. Our Communications segment net transaction revenues are generated primarily from fees charged to users to connect Skype’s VoIP product to traditional fixed-line and mobile telephones. These fees are charged on a per-minute basis or on a subscription basis and we refer to these minutes as SkypeOut minutes. We generate marketing services and other revenues from all three of our business segments. Our marketing services are derived principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, lead referral fees. Other revenues are derived principally from interest earned from banks on certain PayPal
Table of Contentscustomer account balances, interest and fees earned on the Bill Me Later loan portfolio and from contractual arrangements with third parties that provide services to all of our users. Overview
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 our online classifieds
businesses, our secondary tickets marketplace (StubHub), our
online shopping comparison website (Shopping.com), our apartment
listing service platform (Rent.com), as well as our fixed price
media marketplace (Half.com). Our payments segment is comprised
of our online payment solutions — PayPal (which
enables individuals and businesses to securely, easily and
quickly send and receive payments online in approximately 190
markets worldwide) and Bill Me Later (which we acquired in
November 2008 and which enables online U.S. merchants to
offer, and U.S. consumers to obtain, transactional credit
at the point of sale). 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.
Overall, 2008 revenue increased 11% to $8.5 billion,
diluted earnings per share increased from $0.25 to $1.36 and
operating cash flow increased 9% to $2.9 billion. PayPal,
Classifieds, Advertising (in particular text and graphical
advertising) and Skype were the key drivers of growth, with
these businesses achieving a revenue growth rate of 25%, 57%,
40% and 44%, respectively. We also achieved an operating margin
of 24%, with segment margins flat or better across all three of
our business segments despite the deteriorating global economic
environment in the latter half of 2008. However, we experienced
declining revenue growth rates in total and on a segment basis.
During 2008, two of our key priorities were to reaccelerate the
gross merchandise volume (GMV) growth in our Marketplaces core
business and to grow our Payments business off the eBay platform
(PayPal’s merchant services business). In order to
reaccelerate growth in GMV, we focused our actions in 2008 on
improving eBay’s Marketplaces by:
We will continue to focus on evolving a large and complex
marketplace to reaccelerate growth in our core business.
We also made it a priority to expand the presence of PayPal
beyond the eBay.com platform to better diversify our revenue
sources and reduce our dependence on the eBay.com platform.
During the second half of 2008, net total payment volume
generated by PayPal’s merchant services business exceeded
volume on the eBay.com platform. PayPal’s merchant services
business grew 45% in 2008 as we expanded adoption of PayPal
across the Internet. Our acquisition of Bill Me Later in
November 2008 is expected to enhance our leadership position in
online payment solutions.
Over the last three years, we have expanded our global footprint
with approximately 54% of revenues now coming from outside the
U.S. and diversified our revenue stream with approximately
45% of revenues now coming from non-Marketplaces transaction
revenues.
Some key operating metrics that members of our senior management
regularly review to evaluate our financial results include GMV,
number of sold items, net total payment volume, Merchant
Services net total payment volume, SkypeOut Minutes, free cash
flow (operating cash flow less capital expenditures), and
revenue, excluding acquisitions and foreign currency impact.
Outlook
The current uncertain economic environment and volatile foreign
currency exchange rates make it difficult to identify trends
likely to impact our financial results beyond the first quarter
of 2009. We expect revenues and net
Table of Contents
income in the first quarter of 2009 to be lower than the first
quarter of 2008 due primarily to the effect of an anticipated
stronger U.S. dollar as well as the negative impact of the
economic environment on consumer spending and the challenges
associated with reaccelerating growth of GMV in our Marketplaces
core business. Although the current economic environment makes
it difficult to predict the impact on individual types of
expenses, we expect that cost controls, including our
previously-announced restructuring that impacts our employee
related operating expenses, will partially offset the negative
effects of an anticipated year-over-year decline in revenues and
our expected investments in our higher growth businesses such as
Payments, Classifieds and Communications. We also expect diluted
earnings per share will be negatively impacted by lower interest
rates and from dilution resulting from recent acquisitions.
Overview 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 our online classifieds businesses, our secondary tickets marketplace (StubHub), our online shopping comparison website (Shopping.com), our apartment listing service platform (Rent.com), as well as our fixed price media marketplace (Half.com). Our payments segment is comprised of our online payment solutions — PayPal (which enables individuals and businesses to securely, easily and quickly send and receive payments online in approximately 190 markets worldwide) and Bill Me Later (which we acquired in November 2008 and which enables online U.S. merchants to offer, and U.S. consumers to obtain, transactional credit at the point of sale). 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. Overall, 2008 revenue increased 11% to $8.5 billion, diluted earnings per share increased from $0.25 to $1.36 and operating cash flow increased 9% to $2.9 billion. PayPal, Classifieds, Advertising (in particular text and graphical advertising) and Skype were the key drivers of growth, with these businesses achieving a revenue growth rate of 25%, 57%, 40% and 44%, respectively. We also achieved an operating margin of 24%, with segment margins flat or better across all three of our business segments despite the deteriorating global economic environment in the latter half of 2008. However, we experienced declining revenue growth rates in total and on a segment basis. During 2008, two of our key priorities were to reaccelerate the gross merchandise volume (GMV) growth in our Marketplaces core business and to grow our Payments business off the eBay platform (PayPal’s merchant services business). In order to reaccelerate growth in GMV, we focused our actions in 2008 on improving eBay’s Marketplaces by:
We will continue to focus on evolving a large and complex marketplace to reaccelerate growth in our core business. We also made it a priority to expand the presence of PayPal beyond the eBay.com platform to better diversify our revenue sources and reduce our dependence on the eBay.com platform. During the second half of 2008, net total payment volume generated by PayPal’s merchant services business exceeded volume on the eBay.com platform. PayPal’s merchant services business grew 45% in 2008 as we expanded adoption of PayPal across the Internet. Our acquisition of Bill Me Later in November 2008 is expected to enhance our leadership position in online payment solutions. Over the last three years, we have expanded our global footprint with approximately 54% of revenues now coming from outside the U.S. and diversified our revenue stream with approximately 45% of revenues now coming from non-Marketplaces transaction revenues. Some key operating metrics that members of our senior management regularly review to evaluate our financial results include GMV, number of sold items, net total payment volume, Merchant Services net total payment volume, SkypeOut Minutes, free cash flow (operating cash flow less capital expenditures), and revenue, excluding acquisitions and foreign currency impact. Outlook The current uncertain economic environment and volatile foreign currency exchange rates make it difficult to identify trends likely to impact our financial results beyond the first quarter of 2009. We expect revenues and net
Table of Contentsincome in the first quarter of 2009 to be lower than the first quarter of 2008 due primarily to the effect of an anticipated stronger U.S. dollar as well as the negative impact of the economic environment on consumer spending and the challenges associated with reaccelerating growth of GMV in our Marketplaces core business. Although the current economic environment makes it difficult to predict the impact on individual types of expenses, we expect that cost controls, including our previously-announced restructuring that impacts our employee related operating expenses, will partially offset the negative effects of an anticipated year-over-year decline in revenues and our expected investments in our higher growth businesses such as Payments, Classifieds and Communications. We also expect diluted earnings per share will be negatively impacted by lower interest rates and from dilution resulting from recent acquisitions. These excerpts taken from the EBAY 10-K filed Feb 29, 2008. Overview
eBay Inc. was formed as a sole proprietorship in September 1995
and was incorporated in California in May 1996. In April 1998,
we reincorporated in Delaware, and in September 1998, we
completed the initial public offering of our common stock. Our
principal executive offices are located at 2145 Hamilton Avenue,
San Jose, California 95125, and our telephone number is
(408) 376-7400.
When we refer to “we,” “our” or
“eBay” in this Annual Report on
Form 10-K,
we mean the current Delaware corporation (eBay Inc.) and its
California predecessor, as well as all of our consolidated
subsidiaries. When we refer to “eBay.com,” we mean the
online marketplace located at www.ebay.com and its
localized counterparts. When we refer to “PayPal,” we
mean the online payments platform located at www.paypal.com
and its localized counterparts. When we refer to
“Skype,” we mean the Voice over Internet Protocol, or
VoIP, offerings provided by our subsidiary Skype Technologies
S.A.
Our purpose is to pioneer new communities around the world built
on commerce, sustained by trust and inspired by opportunity. We
provide online marketplaces for the sale of goods and services
as well as other online commerce, or ecommerce, platforms,
online payments services and online communications offerings to
a diverse community of individuals and businesses.
We have three operating segments: Marketplaces, Payments and
Communications. Our Marketplaces segment enables online commerce
through a variety of platforms, including the traditional
eBay.com platform and our other online platforms, such as our
classifieds websites, as well as Half.com, Rent.com,
Shopping.com and StubHub. The wide array of websites that
comprise our Marketplaces segment brings together millions of
buyers and sellers every day on a local, national and
international basis. 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 provides low-cost connectivity to
traditional fixed-line and mobile telephones.
Overview eBay Inc. was formed as a sole proprietorship in September 1995 and was incorporated in California in May 1996. In April 1998, we reincorporated in Delaware, and in September 1998, we completed the initial public offering of our common stock. Our principal executive offices are located at 2145 Hamilton Avenue, San Jose, California 95125, and our telephone number is (408) 376-7400. When we refer to “we,” “our” or “eBay” in this Annual Report on Form 10-K, we mean the current Delaware corporation (eBay Inc.) and its California predecessor, as well as all of our consolidated subsidiaries. When we refer to “eBay.com,” we mean the online marketplace located at www.ebay.com and its localized counterparts. When we refer to “PayPal,” we mean the online payments platform located at www.paypal.com and its localized counterparts. When we refer to “Skype,” we mean the Voice over Internet Protocol, or VoIP, offerings provided by our subsidiary Skype Technologies S.A. Our purpose is to pioneer new communities around the world built on commerce, sustained by trust and inspired by opportunity. We provide online marketplaces for the sale of goods and services as well as other online commerce, or ecommerce, platforms, online payments services and online communications offerings to a diverse community of individuals and businesses. We have three operating segments: Marketplaces, Payments and Communications. Our Marketplaces segment enables online commerce through a variety of platforms, including the traditional eBay.com platform and our other online platforms, such as our classifieds websites, as well as Half.com, Rent.com, Shopping.com and StubHub. The wide array of websites that comprise our Marketplaces segment brings together millions of buyers and sellers every day on a local, national and international basis. 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 provides low-cost connectivity to traditional fixed-line and mobile telephones. This excerpt taken from the EBAY 10-K filed Feb 28, 2007. Overview
eBay Inc. was formed as a sole proprietorship in September 1995
and was incorporated in California in May 1996. In April 1998,
we reincorporated in Delaware and in September 1998 we completed
the initial public offering of our common stock. Our principal
executive offices are located at 2145 Hamilton Avenue,
San Jose, California 95125, and our telephone number is
(408) 376-7400.
When we refer to “we,” “our” or
“eBay” in this Annual Report on
Form 10-K,
we mean the current Delaware corporation (eBay Inc.) and its
California predecessor, as well as all of our consolidated
subsidiaries. When we refer to “eBay.com” we mean the
online marketplace located at www.ebay.com and its
localized counterparts. When we refer to “PayPal” we
mean the online payments platform located at
www.paypal.com. When we refer to
“Skype” we mean the Voice over Internet Protocol, or
VoIP, offerings provided by our subsidiary Skype Technologies
S.A.
Our purpose is to pioneer new communities around the world built
on commerce, sustained by trust and inspired by opportunity. To
achieve our purpose, we operate three primary business segments:
Marketplaces, Payments and Communications. We provide online
marketplaces for the sale of goods and services, online payments
services and online communication offerings to a diverse
community of individuals and businesses. Our Marketplaces
segment enables online commerce through a variety of platforms,
including the traditional eBay.com platform and our other online
platforms, such as Shopping.com, classifieds websites and
Rent.com. The wide array of websites that comprise our
Marketplaces segment bring together millions of buyers and
sellers every day on a local, national and international basis.
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 calls between Skype users, and
also provides Skype users low-cost connectivity to traditional
fixed-line and mobile telephones.
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