EBAY » Topics » Product Development

This excerpt taken from the EBAY 10-K filed Feb 17, 2010.

Product Development

 

     2007     2008     2009  
     (In thousands, except percentages)  

Product development

   $ 619,727      $ 725,600      $ 803,070   

As a percentage of net revenues

     8.1     8.5     9.2

Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payments services projects. These capitalized costs totaled $105.4 million in 2009, $112.7 million in 2008 and $110.6 million in 2007, and are primarily reflected as a cost of net revenues when amortized in future periods.

Product development expenses increased by $77.5 million, or 11%, in 2009 compared to 2008. Product development also increased as a percentage of revenue in 2009 compared to 2008. The increase in both dollars and as a percentage of revenue was due primarily to an increase in employee-related and consultant costs driven by increased investment in our top technology priorities: search, catalog, platform, and user experience.

Product development expenses increased $105.9 million, or 17%, in 2008 compared to 2007. The increase was due primarily to an increase in staffing, consultant costs, facility costs and equipment related costs to support

 

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several platform development initiatives to enhance the user experience and expand our existing product offerings primarily across our Marketplaces and Payments segments. Product development expenses as a percentage of net revenues increased slightly from 2007 as we added capacity at a faster rate than we generated revenue.

This excerpt taken from the EBAY 10-Q filed Apr 28, 2009.

Product Development

 

     Three Months Ended  
     March 31, 2008     March 31, 2009  
     (In thousands, except percentages)  

Product development

   $ 176,760     $ 201,516  

As a percentage of net revenues

     8.1 %     10.0 %

Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payments services projects. These capitalized costs totaled $26.0 million and $24.7 million during the first quarter of 2009 and 2008, respectively, and are primarily reflected as a cost of net revenues when amortized in future periods.

Product development expenses increased in the first quarter of 2009 by $24.8 million, or 14%, compared to the same period of the prior year. Product development also increased as a percentage of revenue, period over period. The increase in both dollars and as a percentage of revenue, was due primarily to an increase in employee-related costs (including consultant costs, facility costs and equipment-related costs) driven by increased investment in our top technology priorities – search, catalog, platform, and user experience.

These excerpts taken from the EBAY 10-K filed Feb 20, 2009.
Product Development
 
                         
    2006     2007     2008  
    (in thousands, except percentages)  
 
Product development
  $ 494,695     $ 619,727     $ 725,600  
As a percentage of net revenues
    8.3 %     8.1 %     8.5 %


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Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payments services projects. These capitalized costs totaled $112.7 million in 2008, $110.6 million in 2007 and $67.9 million in 2006, and are primarily reflected as a cost of net revenues when amortized in future periods.
 
Product development expenses increased $105.9 million, or 17%, in 2008 compared to 2007 due primarily to an increase in staffing, consultant costs, facility costs and equipment related costs to support several platform development initiatives to enhance the user experience and expand our existing product offerings primarily across our Marketplaces and Payments segments. Product development expenses as a percentage of net revenues increased slightly from 2007 as we added capacity at a faster rate than we generated revenue.
 
Product development expenses increased $125.0 million, or 25%, in 2007 compared to 2006 due primarily to an increase in staffing, consultant costs, facility costs and equipment related costs to support several platform development initiatives to enhance the user experience and expand our existing product offerings primarily across our Marketplaces and Payments segments. Product development expenses as a percentage of net revenues decreased slightly from 2006 as we continued to add capacity at a slower rate than we generated revenue.
 
Product
Development



 







































































                         

 

 

2006

 

 

2007

 

 

2008

 

 

 

(in thousands, except percentages)

 
 


Product development


 

$

494,695

 

 

$

619,727

 

 

$

725,600

 


As a percentage of net revenues


 

 

8.3

%

 

 

8.1

%

 

 

8.5

%









55





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Product development expenses consist primarily of employee
compensation, contractor costs, facilities costs and
depreciation on equipment. Product development expenses are net
of required capitalization of major site and other product
development efforts, including the development of our next
generation platform architecture, migration of certain
platforms, seller tools and Payments services projects. These
capitalized costs totaled $112.7 million in 2008,
$110.6 million in 2007 and $67.9 million in 2006, and
are primarily reflected as a cost of net revenues when amortized
in future periods.


 



Product development expenses increased $105.9 million, or
17%, in 2008 compared to 2007 due primarily to an increase in
staffing, consultant costs, facility costs and equipment related
costs to support several platform development initiatives to
enhance the user experience and expand our existing product
offerings primarily across our Marketplaces and Payments
segments. Product development expenses as a percentage of net
revenues increased slightly from 2007 as we added capacity at a
faster rate than we generated revenue.


 



Product development expenses increased $125.0 million, or
25%, in 2007 compared to 2006 due primarily to an increase in
staffing, consultant costs, facility costs and equipment related
costs to support several platform development initiatives to
enhance the user experience and expand our existing product
offerings primarily across our Marketplaces and Payments
segments. Product development expenses as a percentage of net
revenues decreased slightly from 2006 as we continued to add
capacity at a slower rate than we generated revenue.


 




This excerpt taken from the EBAY 10-Q filed Oct 23, 2008.
Product Development
 
                                                 
    Three Months Ended           Nine Months Ended        
    September 30,
    September 30,
    Percent
    September 30,
    September 30,
    Percent
 
    2007     2008     Change     2007     2008     Change  
    (In thousands, except percentages)  
 
Product development
  $ 164,879     $ 190,842       16 %   $ 450,411     $ 554,393       23 %
As a percentage of net revenues
    8.7 %     9.0 %             8.2 %     8.5 %        
 
Product development expense consists primarily of employee compensation, contractor costs, facilities cost and depreciation on equipment. Product development expense is net of required capitalization of major site and other product development efforts, including the development of our next-generation platform architecture, migration of certain platforms, seller tools and Payments services projects. Capitalized site and product development costs were $32.9 million and $85.5 million in the third quarter and first nine months of 2008, respectively, compared to $22.3 million and $61.2 million in the third quarter and first nine months of 2007, respectively.


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Capitalized site and product development costs are reflected as a cost of net revenues when amortized in future periods.
 
The increase in product development expense in the third quarter and first nine months of 2008 of $26.0 million and $104.0 million, respectively, compared to the same periods in the prior year was due primarily to an increase in employee related and contractor costs, including stock-based compensation expense, to support several platform development initiatives to enhance the user experience and expand our existing product offerings.
 
For the remainder of 2008, compared to the same period in 2007, we expect product development expense will continue to increase in total and increase slightly as a percentage of net revenues as we develop new site features and functionality and continue to expand our existing product offerings.
 
This excerpt taken from the EBAY 10-Q filed Jul 24, 2008.
Product Development
 
                                                 
    Three Months Ended           Six Months Ended        
    June 30,
    June 30,
    Percent
    June 30,
    June 30,
    Percent
 
    2007     2008     Change     2007     2008     Change  
    (In thousands, except percentages)  
 
Product development
  $ 147,934     $ 186,791       26 %   $ 285,532     $ 363,551       27 %
As a percentage of net revenues
    8.1 %     8.5 %             7.9 %     8.3 %        
 
Product development expense consists primarily of employee compensation, contractor costs, facilities cost and depreciation on equipment. Product development expense is net of required capitalization of major site and other product development efforts, including the development of our next-generation platform architecture, migration of certain platforms, seller tools and Payments services projects. Capitalized site and product development costs were $27.9 million and $52.6 million in the second quarter and first six months of 2008, respectively, compared to $21.4 million and $38.9 million in the second quarter and first six months of 2007, respectively. Capitalized site and product development costs are reflected as a cost of net revenues when amortized in future periods.


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The increase in product development expense in the second quarter and first six months of 2008 of $38.9 million and $78.0 million, respectively, compared to the same periods in the prior year was due primarily to an increase in employee related and contractor costs, including stock-based compensation expense, to support several platform development initiatives to enhance the user experience and expand our existing product offerings.
 
Product development expense for 2008, compared to 2007, is expected to increase in total and increase slightly as a percentage of net revenues as we develop new site features and functionality and continue to expand our existing product offerings.
 
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008.
Product Development
 
                 
    Three Months Ended
    March 31,
  March 31,
    2007   2008
    (In thousands, except percentages)
 
Product development
  $ 137,598     $ 176,760  
As a percentage of net revenues
    7.8 %     8.1 %
 
Product development expense consists primarily of employee compensation, contractor costs, facilities cost and depreciation on equipment. Product development expense is net of required capitalization of major site and other product development efforts, including the development of our next-generation platform architecture, migration of certain platforms, seller tools and Payments services projects. Capitalized site and product development costs were $24.7 million in the first quarter of 2008 and $17.5 million in the first quarter of 2007, respectively. Capitalized site and product development costs are reflected as a cost of net revenues when amortized in future periods.
 
The increase in product development expense in the first quarter of 2008 of $39.2 million compared to the same period in the prior year was due primarily to an increase in staffing and contractor costs, including stock-based compensation expense, to support several platform development initiatives to enhance the user experience and expand our existing product offerings.
 
For the remainder of 2008, product development expense is expected to increase in total and increase slightly as a percentage of net revenues, as we develop new site features and functionality and continue to improve and expand operations across all businesses, offset by productivity leverage.
 
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008.
Product Development
 
                 
    Three Months Ended
    March 31,
  March 31,
    2007   2008
    (In thousands, except percentages)
 
Product development
  $ 137,598     $ 176,760  
As a percentage of net revenues
    7.8 %     8.1 %
 
Product development expense consists primarily of employee compensation, contractor costs, facilities cost and depreciation on equipment. Product development expense is net of required capitalization of major site and other product development efforts, including the development of our next-generation platform architecture, migration of certain platforms, seller tools and Payments services projects. Capitalized site and product development costs were $24.7 million in the first quarter of 2008 and $17.5 million in the first quarter of 2007, respectively. Capitalized site and product development costs are reflected as a cost of net revenues when amortized in future periods.
 
The increase in product development expense in the first quarter of 2008 of $39.2 million compared to the same period in the prior year was due primarily to an increase in staffing and contractor costs, including stock-based compensation expense, to support several platform development initiatives to enhance the user experience and expand our existing product offerings.
 
For the remainder of 2008, product development expense is expected to increase in total and increase slightly as a percentage of net revenues, as we develop new site features and functionality and continue to improve and expand operations across all businesses, offset by productivity leverage.
 
These excerpts taken from the EBAY 10-K filed Feb 29, 2008.
Product Development
 
                         
    2005     2006     2007  
    (in thousands, except percentages)  
 
Product development
  $ 328,191     $ 494,695     $ 619,727  
As a percentage of net revenues
    7.2 %     8.3 %     8.1 %
 
Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payments services projects. These capitalized costs totaled $81.2 million in 2007, $67.9 million in 2006 and $37.1 million in 2005, and are reflected as a cost of net revenues when amortized in future periods.
 
The increase in product development expense of $125.0 million during 2007 was due primarily to an increase in staffing and consultant costs to support several platform development initiatives to enhance the user experience and expand our existing product offerings primarily across our Marketplaces and Payments segments. Employee-related and consultant costs increased by approximately $89.0 million in 2007 compared to the prior year. Depreciation and facilities expense incurred to support our development efforts increased by approximately $15.6 million in 2007 as compared to the prior year. Product development expense as a percentage of net revenues decreased slightly from 2006 as we continued to add capacity at a slower rate than we generate revenue.
 
The increase in product development expense of $166.5 million during 2006 was due primarily to the addition of employees, contractors and consultants to support various platform and software development initiatives in our Marketplaces, Payments and Communications segments and the effect of stock-based compensation expense related to equity awards and employee stock purchases under FAS 123(R). Employee-related and consultant costs, excluding stock-based compensation, increased by approximately $61.5 million in 2006 compared to the prior year. Stock-based compensation expense of $81.5 million was included in product development expense in 2006 compared to $6.5 million in 2005. Stock-based compensation expense increased due to our implementation of FAS 123(R) at the beginning of 2006.
 
For 2008, product development expense is expected to increase in total and as a percentage of net revenues as we develop new site features and functionality and invest in strategic product-based initiatives.


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Table of Contents

Product
Development



 







































































                         

 

 

2005

 

 

2006

 

 

2007

 

 

 

(in thousands, except percentages)

 
 


Product development


 

$

328,191

 

 

$

494,695

 

 

$

619,727

 


As a percentage of net revenues


 

 

7.2

%

 

 

8.3

%

 

 

8.1

%






 



Product development expenses consist primarily of employee
compensation, contractor costs, facilities costs and
depreciation on equipment. Product development expenses are net
of required capitalization of major site and other product
development efforts, including the development of our next
generation platform architecture, migration of certain
platforms, seller tools and Payments services projects. These
capitalized costs totaled $81.2 million in 2007,
$67.9 million in 2006 and $37.1 million in 2005, and
are reflected as a cost of net revenues when amortized in future
periods.


 



The increase in product development expense of
$125.0 million during 2007 was due primarily to an increase
in staffing and consultant costs to support several platform
development initiatives to enhance the user experience and
expand our existing product offerings primarily across our
Marketplaces and Payments segments. Employee-related and
consultant costs increased by approximately $89.0 million
in 2007 compared to the prior year. Depreciation and facilities
expense incurred to support our development efforts increased by
approximately $15.6 million in 2007 as compared to the
prior year. Product development expense as a percentage of net
revenues decreased slightly from 2006 as we continued to add
capacity at a slower rate than we generate revenue.


 



The increase in product development expense of
$166.5 million during 2006 was due primarily to the
addition of employees, contractors and consultants to support
various platform and software development initiatives in our
Marketplaces, Payments and Communications segments and the
effect of stock-based compensation expense related to equity
awards and employee stock purchases under FAS 123(R).
Employee-related and consultant costs, excluding stock-based
compensation, increased by approximately $61.5 million in
2006 compared to the prior year. Stock-based compensation
expense of $81.5 million was included in product
development expense in 2006 compared to $6.5 million in
2005. Stock-based compensation expense increased due to our
implementation of FAS 123(R) at the beginning of 2006.


 



For 2008, product development expense is expected to increase in
total and as a percentage of net revenues as we develop new site
features and functionality and invest in strategic product-based
initiatives.





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This excerpt taken from the EBAY 10-Q filed Oct 29, 2007.
Product Development
 
                                                 
    Three Months Ended           Nine Months Ended        
    September 30,
    September 30,
    Percent
    September 30,
    September 30,
    Percent
 
    2006     2007     Change     2006     2007     Change  
    (In thousands, except percentages)  
 
Product development
  $ 120,405     $ 164,879       37 %   $ 363,447     $ 450,411       24 %
As a percentage of net revenues
    8.3 %     8.7 %             8.6 %     8.2 %        


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Table of Contents

Product development expense consists primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expense is net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payment-services projects. Capitalized site and product development costs were $22.3 million and $61.2 million in the third quarter and the first nine months of 2007, respectively, and $16.6 million and $52.0 million in the third quarter and the first nine months of 2006, respectively. Capitalized site and product development costs are reflected as a cost of net revenues when amortized in future periods.
 
The increase in product development expense in the third quarter and the first nine months of 2007 of $44.5 million and $87.0 million, respectively, compared to the same periods in the prior year, was primarily due to an increase in staffing and contractor costs to support several platform development initiatives to enhance the user experience and expand our existing product offerings.
 
For the remainder of 2007, product development expense is expected to increase in total and as a percentage of net revenues, as we develop new site features and functionality and continue to improve and expand operations across all businesses.
 
This excerpt taken from the EBAY 10-Q filed Jul 27, 2007.
Product Development
 
                                                 
    Three Months Ended       Six Months Ended    
    June 30,
  June 30,
  Percent
  June 30,
  June 30,
  Percent
    2006   2007   Change   2006   2007   Change
        (In thousands, except percentages)        
 
Product development
  $ 123,972     $ 147,934       19 %   $ 243,042     $ 285,532       17 %
As a percentage of net revenues
    8.8 %     8.1 %             8.7 %     7.9 %        
 
Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payment-services projects. Capitalized site and product development costs were $21.4 million and $38.9 million in the second quarter and the first six months of 2007, respectively, and $17.4 million and $35.4 million in the second quarter and the first six months of 2006, respectively. Capitalized site and product development costs are reflected as a cost of net revenues when amortized in future periods.
 
The increase in product development expenses in the second quarter and the first six months of 2007 of $24.0 million and $42.5 million, respectively, compared to the same periods in the prior year, was primarily due to


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an increase in staffing and contractor costs to support several platform development initiatives to enhance the user experience and expand our existing product offerings.
 
For the remainder of 2007, product development expenses are expected to increase in total and remain consistent as a percentage of net revenues, as we develop new site features and functionality and continue to improve and expand operations across all businesses while leveraging our expenses.
 
This excerpt taken from the EBAY 10-Q filed Apr 25, 2007.
Product Development
 
                         
    Three Months Ended
    Percent
    Three Months Ended
 
    March 31, 2006     Change     March 31, 2007  
    (In thousands, except percentages)  
 
Product development
  $ 119,070       16 %   $ 137,598  
As a percentage of net revenues
    8.6 %             7.8 %
 
Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payment services projects. These capitalized costs totaled $6.8 million in the first quarter of 2007 and $18.0 million in the first quarter of 2006, and are reflected as a cost of net revenues when amortized in future periods.
 
The increase in product development expenses in the first quarter of 2007, compared to the same period in the prior year, was primarily due to a $9.1 million increase in staffing costs and $4.7 million increase in contractor costs to support various platform development initiatives in our Marketplaces, Payments and Communications segments.
 
For the remainder of 2007, product development expenses are expected to increase in total and remain consistent as a percentage of net revenues, as we develop new site features and functionality and continue to improve and expand operations across all businesses while leveraging our expenses.
 
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