[pre] eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(In Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2005 2006 2005 2006
---------- ---------- ---------- ----------
Cash flows from operating
activities:
Net income $ 291,560 $ 249,994 $ 547,851 $ 498,276
Adjustments:
Provision for doubtful
accounts and
authorized credits 22,697 24,827 44,721 51,874
Provision for
transaction losses 12,556 24,279 31,135 49,906
Depreciation and
amortization 85,305 142,426 164,965 265,712
Amortization of
unearned stock-based
compensation 50 85,408 3,646 169,226
Tax benefit on the
exercise of employee
stock options 25,607 53,082 110,599 90,524
Excess tax benefits
from stock-based
compensation -- (37,601) -- (60,973)
Minority interests 10 1 28 2
Changes in assets and
liabilities, net of
acquisition effects:
Accounts receivable (17,220) (14,697) (71,382) (37,598)
Funds receivable from
customers 3,179 4,062 (74,154) 33,810
Other current assets (13,759) (15,765) (12,556) (133,491)
Other non-current
assets (389) 1,514 (8,750) 8,777
Deferred tax
liabilities, net 65,188 (5,800) 67,428 (13,300)
Accounts payable (17,910) 23,336 2,999 75,292
Funds payable and
amounts due to
customers 12,897 5,684 181,825 80,015
Accrued expenses and
other liabilities 8,107 (6,963) (13,731) (25,724)
Deferred revenue and
customer advances 380 15,641 (6,595) 24,664
Income taxes payable 18,274 (33,915) 23,922 22,725
---------- ---------- ---------- ----------
Net cash provided by
operating activities 496,532 515,513 991,951 1,099,717
---------- ---------- ---------- ----------
Cash flows from investing
activities:
Purchases of property and
equipment, net (90,479) (148,432) (170,063) (282,008)
Purchases of investments (286,527) (113,137) (654,621) (491,224)
Maturities and sales of
investments 547,975 395,382 793,640 761,159
Acquisitions, net of cash
acquired (81,606) (45,505) (526,614) (45,505)
Other (1,953) (1,245) (1,953) (1,245)
---------- ---------- ---------- ----------
Net cash provided by (used
in) investing activities 87,410 87,063 (559,611) (58,823)
---------- ---------- ---------- ----------
Cash flows from financing
activities:
Proceeds from issuance of
common stock, net 80,387 94,395 259,666 175,001
Excess tax benefits from
stock-based compensation -- 37,601 -- 60,973
Payment of headquarters
facility lease
obligation -- -- (126,390) --
Principal payments on
long-term obligations -- -- (1,849) --
---------- ---------- ---------- ----------
Net cash provided by
financing activities 80,387 131,996 131,427 235,974
---------- ---------- ---------- ----------
Effect of exchange rate
changes on cash and cash
equivalents (25,452) 23,375 (38,163) 43,933
---------- ---------- ---------- ----------
Net increase in cash and
cash equivalents 638,877 757,947 525,604 1,320,801
Cash and cash equivalents
at beginning of period 1,216,772 1,876,434 1,330,045 1,313,580
---------- ---------- ---------- ----------
Cash and cash equivalents
at end of period $1,855,649 $2,634,381 $1,855,649 $2,634,381
========== ========== ========== ==========
Supplemental Non-GAAP
Measure:
Net cash provided by
operating activities $ 496,532 $ 515,513 $ 991,951 $1,099,717
Less: Purchases of
property and equipment,
net (90,479) (148,432) (170,063) (282,008)
Less: Payment of
headquarters facility
lease obligation -- -- (126,390) --
---------- ---------- ---------- ----------
Free cash flow $ 406,053 $ 367,081 $ 695,498 $ 817,709
========== ========== ========== ==========
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
(In Thousands, Except Percentages)
Net Revenues by Type
June September December March June
30, 30, 31, 31, 30,
2005 2005 2005 2006 2006
-------------------------------------------------------
Net Transaction
Revenues
US Market-
places $ 408,452 $ 434,937 $ 504,891 $ 507,312 $ 490,440
Current
quarter vs
prior
quarter 5% 6% 16% 0% (3)%
Current
quarter vs
prior year
quarter 28% 32% 39% 30% 20%
International
Marketplaces 411,671 401,883 464,521 483,215 506,681
Current
quarter vs
prior
quarter 6% (2%) 16% 4% 5%
Current
quarter vs
prior year
quarter 50% 42% 35% 25% 23%
Payments 237,217 239,922 297,679 328,150 330,684
Current
quarter vs
prior
quarter 4% 1% 24% 10% 1%
Current
quarter vs
prior year
quarter 49% 44% 49% 44% 39%
Communi-
cations -- -- 24,809 35,160 44,158
Current
quarter vs
prior
quarter -- -- -- 42% 26%
-------------------------------------------------------
Total net
transaction
revenues 1,057,340 1,076,742 1,291,900 1,353,837 1,371,963
Current
quarter vs
prior
quarter 5% 2% 20% 5% 1%
Current
quarter vs
prior year
quarter 41% 38% 42% 35% 30%
Advertising
and other
non-
transaction
revenues
Total
advertising
and other
non-
transaction
revenues 28,963 28,773 36,959 36,582 38,821
Current
quarter vs
prior
quarter 1% (1%) 28% (1%) 6%
Current
quarter vs
prior year
quarter 33% 8% 30% 28% 34%
-------------------------------------------------------
Total net
revenues $1,086,303 $1,105,515 $1,328,859 $1,390,419 $1,410,784
=======================================================
Current
quarter vs
prior
quarter 5% 2% 20% 5% 1%
Current
quarter vs
prior year
quarter 40% 37% 42% 35% 30%
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
(In Thousands, Except Percentages)
Net Revenues by Segment
June September December March June
30, 30, 31, 31, 30,
2005 2005 2005 2006 2006
-------------------------------------------------------
US
Marketplaces $ 423,565 $ 449,549 $ 526,130 $ 527,220 $ 509,277
Current
quarter vs
prior
quarter 5% 6% 17% 0% (3)%
Current
quarter vs
prior year
quarter 27% 29% 39% 30% 20%
International
Marketplaces 418,839 408,868 473,546 492,973 518,258
Current
quarter vs
prior
quarter 6% (2%) 16% 4% 5%
Current
quarter vs
prior year
quarter 51% 43% 35% 25% 24%
Payments 243,899 247,098 304,374 335,066 339,091
Current
quarter vs
prior
quarter 5% 1% 23% 10% 1%
Current
quarter vs
prior year
quarter 51% 44% 48% 44% 39%
Percent of
Payments
revenue
that is
inter-
national 35% 36% 36% 35% 38%
Communications -- -- 24,809 35,160 44,158
Current
quarter
vs prior
quarter -- -- -- 42% 26%
Percent of
Communi-
cations
revenue
that is
inter-
national -- -- 87% 87% 86%
-------------------------------------------------------
Total net
revenues $1,086,303 $1,105,515 $1,328,859 $1,390,419 $1,410,784
=======================================================
Current
quarter vs
prior
quarter 5% 2% 20% 5% 1%
Current
quarter vs
prior year
quarter 40% 37% 42% 35% 30%
Net Revenues by Geography
June September
30, 30, December 31, March 31, June 30,
2005 2005 2005 2006 2006
------------------------------------------------------
US net revenues $ 581,851 $ 608,428 $ 724,748 $ 748,136 $ 724,699
Current
quarter vs
prior
quarter 5% 5% 19% 3% (3)%
Current
quarter vs
prior year
quarter 29% 30% 40% 35% 25%
% of total 54% 55% 55% 54% 51%
International
net revenues 504,452 497,087 604,111 642,283 686,085
Current
quarter vs
prior
quarter 6% (1%) 22% 6% 7%
Current
quarter vs
prior year
quarter 56% 47% 44% 35% 36%
% of total 46% 45% 45% 46% 49%
------------------------------------------------------
Total net
revenues $ 1,086,303 $1,105,515 $1,328,859 $1,390,419 $1,410,784
=======================================================
Current
quarter vs
prior
quarter 5% 2% 20% 5% 1%
Current
quarter vs
prior year
quarter 40% 37% 42% 35% 30%
eBay Inc.
eBay Marketplaces Unaudited Supplemental Operating Data
(In Millions, Except Percentages)
June September December March June
30, 30, 31, 31, 30,
2005 2005 2005 2006 2006
---------------------------------------------
Confirmed Registered
Users (1) 157.3 168.1 180.6 192.9 202.7
Current quarter vs
prior quarter 7% 7% 7% 7% 5%
Current quarter vs
prior year quarter 38% 35% 33% 31% 29%
Active Users (2) 64.6 68.0 71.8 75.4 77.7
Current quarter vs
prior quarter 7% 5% 6% 5% 3%
Current quarter vs
prior year quarter 34% 32% 28% 25% 20%
Number of Non-Stores
Listings (3) 402.2 407.0 480.6 490.8 490.5
Current quarter vs
prior quarter 1% 1% 18% 2% (0)%
Current quarter vs
prior year quarter 27% 24% 28% 23% 22%
Number of Stores Listings
(3) 37.9 51.6 65.7 84.6 105.5
Current quarter vs
prior quarter 18% 36% 27% 29% 25%
Current quarter vs
prior year quarter 131% 154% 135% 164% 178%
Gross Merchandise Volume
(4) $10,884 $10,800 $12,013 $12,504 $12,896
Current quarter vs
prior quarter 3% (1%) 11% 4% 3%
Current quarter vs
prior year quarter 36% 30% 22% 18% 18%
Rent.com, Shopping.com, and our classifieds websites are not included
in these metrics.
---------------
(1) Cumulative total of all users who have completed the registration
process on one of eBay's trading platforms.
(2) All users, excluding users of Half.com, Internet Auction,
Rent.com, Shopping.com, and our classifieds websites, who bid on,
bought, or listed an item within the previous 12-month period.
(3) All listings on eBay's trading platforms during the quarter,
regardless of whether the listing subsequently closed
successfully.
(4) Total value of all successfully closed items between users on
eBay's trading platforms during the quarter, regardless of whether
the buyer and seller actually consummated the transaction.
eBay Inc.
Payments Unaudited Supplemental Operating Data
(In Millions, Except Percentages)
June September December March June
30, 30, 31, 31, 30,
2005 2005 2005 2006 2006
------------------------------------------
Total accounts (1) 78.9 86.6 96.2 105.0 113.7
Current quarter vs
prior quarter 10% 10% 11% 9% 8%
Current quarter vs
prior year quarter 56% 53% 51% 47% 44%
Active accounts (2) 22.9 24.5 28.1 29.2 29.5
Total number of payments
(3) 113.2 117.4 139.7 149.2 143.3
Current quarter vs
prior quarter 3% 4% 19% 7% (4)%
Current quarter vs
prior year quarter 46% 41% 40% 35% 27%
Total payment volume (4) $6,471 $6,667 $8,114 $8,769 $8,856
Current quarter vs
prior quarter 4% 3% 22% 8% 1%
Current quarter vs
prior year quarter 49% 44% 45% 41% 37%
eBay Marketplaces as % of
total payment volume 70% 69% 69% 67% 65%
Transaction rates (5)
Transaction revenue rate 3.67% 3.60% 3.67% 3.74% 3.73%
Transaction processing
expense rate 1.08% 1.11% 1.09% 1.04% 1.02%
Transaction loss rate 0.19% 0.24% 0.33% 0.29% 0.27%
---------------
(1) Cumulative total of all accounts opened, including users who made
payments using PayPal but have not registered, excluding accounts
that have been closed or locked and excluding payment gateway
business accounts.
(2) All accounts, and users whether registered or not, that sent or
received at least one payment through the PayPal system during the
quarter.
(3) Total number of payments initiated through the PayPal system
during the quarter, excluding the payment gateway business,
regardless of whether the payment was actually sent successfully,
or was reversed, rejected, or pending at the end of the quarter.
(4) Total dollar volume of payments initiated through the PayPal
system during the quarter, excluding the payment gateway business,
regardless of whether the payment was actually sent successfully,
or was reversed, rejected, or was pending at the end of the
quarter.
(5) Transaction rates represent the ratio of PayPal transaction
revenues (including the payment gateway business), PayPal third
party processing expenses and PayPal fraud and protection program
losses relative to total payment volume.
eBay Inc.
Guidance Summary
(In Millions, Except Per Share Amounts And Percentages)
The guidance figures provided below and elsewhere in this press
release are approximate in nature because eBay's future performance is
difficult to predict. Such guidance is based on information available
on the date hereof, and eBay assumes no obligation to update it.
eBay's future performance involves risks and uncertainties, and the
company's actual results could differ materially from such guidance.
Some of the factors that could affect the company's operating results
are set forth under the caption "Forward-Looking Statements" above in
this press release. More information about factors that could affect
eBay's operating results is included under the captions "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition and
Results of Operations" in its most recent 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 site at
http://investor.ebay.com.
Three months ending September 30, 2006
---------------------------------------
GAAP (a) Non-GAAP (b)
---------------------------------------
Net revenues $1,355-$1,430 $1,355-$1,430
Diluted EPS $0.15-$0.17 $0.22-$0.23
Year ending December 31, 2006
---------------------------------------
GAAP (a) Non-GAAP (b)
---------------------------------------
Net revenues $5,700-$5,900 $5,700-$5,900
Operating margin 23% 33%
Diluted EPS (1) $0.69-$0.72 $0.98-$1.01
Effective tax rate 28% - 29% 29% - 30%
---------------
(1) Please note that the sum of the quarters may not total to the full
year EPS because the quarterly EPS is calculated using the
respective results and weighted average shares for each quarter,
and the full year EPS is calculated using the results and weighted
average shares for the full year.
(a) GAAP guidance includes the estimated impact of expensing stock
options under FAS 123R "Share-Based Payment." The new accounting
standard is expected to reduce diluted GAAP EPS by approximately
$0.16-$0.17 for the full year ending December 31, 2006 and
$0.04-$0.05 for each of the remaining quarters in the year ending
December 31, 2006.
(b) Non-GAAP guidance reflects estimated quarterly adjustments to
exclude the amortization of acquired intangible assets of
approximately $45-$55 million, stock-based compensation (including
the estimated impact of the adoption of FAS 123R) and payroll
taxes on employee stock options of approximately $90-$110 million.
These non-GAAP items are estimated to result in a $0.07-$0.08 per
diluted share adjustment, net of tax, and an operating margin of
approximately 10% for each of the remaining quarters in the year
ending December 31, 2006 .
[/pre]