Featured White Papers
Content provided in partnership with
Business Services Industry
eBay Inc. Announces First Quarter 2006 Financial Results
Business Wire, April 19, 2006
eBay Inc.
Unaudited Condensed Consolidated Balance Sheet
(US Dollars In Thousands)
December 31, March 31,
2005 2006
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 1,313,580 $ 1,876,434
Short-term investments 774,650 828,049
Accounts receivable, net 322,788 318,878
Funds receivable from customers 255,282 225,295
Restricted cash and investments 29,702 30,755
Other current assets 487,235 620,832
------------ ------------
Total current assets 3,183,237 3,900,243
Long-term investments 825,667 793,497
Property and equipment, net 801,602 860,493
Goodwill 6,120,079 6,205,075
Intangible assets, net 823,280 781,988
Other assets 35,121 27,239
------------ ------------
$11,788,986 $12,568,535
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 55,692 $ 101,157
Funds payable and amounts due to
customers 586,651 660,838
Accrued expenses and other current
liabilities 578,557 589,665
Deferred revenue and customer advances 81,940 90,965
Income taxes payable 182,095 238,883
------------ ------------
Total current liabilities 1,484,935 1,681,508
Deferred tax liabilities, net 215,682 220,430
Other liabilities 40,388 39,797
------------ ------------
Total liabilities 1,741,005 1,941,735
------------ ------------
Total stockholders' equity 10,047,981 10,626,800
------------ ------------
$11,788,986 $12,568,535
============ ============
eBay Inc.
Unaudited Condensed Consolidated Statement of Income
(US Dollars In Thousands, Except Per Share Amounts)
Three Months Ended
March 31,
-----------------------
2005 2006
----------- -----------
Net revenues $1,031,724 $1,390,419
Cost of net revenues (1) 186,369 278,568
----------- -----------
Gross profit 845,355 1,111,851
----------- -----------
Operating expenses (1)
Sales and marketing 271,349 400,562
Product development 73,789 119,070
General and administrative 136,389 215,350
Payroll tax on employee stock options 5,731 2,324
Amortization of acquired intangible assets 22,523 51,921
----------- -----------
Total operating expenses 509,781 789,227
----------- -----------
Income from operations 335,574 322,624
Interest and other income, net 22,403 25,760
Interest expense (1,720) (747)
----------- -----------
Income before income taxes and minority
interests 356,257 347,637
Provision for income taxes (99,948) (99,354)
Minority interests (18) (1)
----------- -----------
Net income $ 256,291 $ 248,282
=========== ===========
Net income per share:
Basic $ 0.19 $ 0.18
=========== ===========
Diluted $ 0.19 $ 0.17
=========== ===========
Weighted average shares:
Basic 1,343,442 1,406,309
=========== ===========
Diluted 1,382,150 1,437,581
=========== ===========
(1) Includes stock-based compensation as
follows (2006 increases are due primarily
to the adoption of FAS 123(R)):
Cost of net revenues $ 78 $ 9,476
Sales and marketing - 24,721
Product development 322 20,701
General and administrative 3,196 28,920
----------- -----------
Total stock-based compensation $ 3,596 $ 83,818
=========== ===========
eBay Inc.
Reconciliation of GAAP to Non-GAAP
Condensed Consolidated Statement of Income
(US Dollars In Thousands, Except Per Share Amounts)
Three Months Ended
March 31, 2005
-------------------------------------
Non-GAAP
Reported Entries Non-GAAP
-------------------------------------
Net revenues $1,031,724 $ - $1,031,724
Cost of net revenues 186,369 (78) (a) 186,291
--------------------- -----------
Gross profit 845,355 78 845,433
--------------------- -----------
Operating expenses:
Sales and marketing 271,349 - (a) 271,349
Product development 73,789 (322) (a) 73,467
General and administrative 136,389 (3,196) (a) 133,193
Payroll tax on employee stock
options 5,731 (5,731) (b) -
Amortization of acquired
intangible assets 22,523 (22,523) (c) -
--------------------- -----------
Total operating expenses 509,781 (31,772) 478,009
--------------------- -----------
Income from operations 335,574 31,850 367,424
Interest and other income, net 22,403 - 22,403
Interest expense (1,720) - (1,720)
--------------------- -----------
Income before income taxes and
minority interests 356,257 31,850 388,107
Provision for income taxes (99,948) (12,603) (d) (112,551)
Minority interests (18) - (18)
--------------------- -----------
Net income $ 256,291 $ 19,247 $ 275,538
===================== ===========
Net income per share:
Basic $ 0.19 $ 0.21
=========== ===========
Diluted $ 0.19 $ 0.20
=========== ===========
Weighted average shares:
Basic 1,343,442 1,343,442
=========== ===========
Diluted 1,382,150 1,382,150
=========== ===========
Operating margin 33% 3% 36%
===================== ===========
Three Months Ended
March 31, 2006
-------------------------------------
Non-GAAP
Reported Entries Non-GAAP
-------------------------------------
Net revenues $1,390,419 $ - $1,390,419
Cost of net revenues 278,568 (9,476) (a) 269,092
--------------------- -----------
Gross profit 1,111,851 9,476 1,121,327
--------------------- -----------
Operating expenses:
Sales and marketing 400,562 (24,721) (a) 375,841
Product development 119,070 (20,701) (a) 98,369
General and administrative 215,350 (28,920) (a) 186,430
Payroll tax on employee stock
options 2,324 (2,324) (b) -
Amortization of acquired
intangible assets 51,921 (51,921) (c) -
--------------------- -----------
Total operating expenses 789,227 (128,587) 660,640
--------------------- -----------
Income from operations 322,624 138,063 460,687
Interest and other income, net 25,760 - 25,760
Interest expense (747) - (747)
--------------------- -----------
Income before income taxes and
minority interests 347,637 138,063 485,700
Provision for income taxes (99,354) (43,442) (d) (142,796)
Minority interests (1) - (1)
--------------------- -----------
Net income $ 248,282 $ 94,621 $ 342,903
===================== ===========
Net income per share:
Basic $ 0.18 $ 0.24
=========== ===========
Diluted $ 0.17 $ 0.24
=========== ===========
Weighted average shares:
Basic 1,406,309 1,406,309
=========== ===========
Diluted 1,437,581 1,437,581
=========== ===========
Operating margin 23% 10% 33%
===================== ===========
Notes:
(a) Stock-based compensation expense
(b) Employer payroll taxes on employee non-qualified stock option
gains
(c) Amortization of acquired intangible assets
(d) Income taxes associated with certain non-GAAP entries
eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(US Dollars In Thousands)
Three Months Ended
March 31,
-----------------------
2005 2006
----------- -----------
Cash flows from operating activities:
Net income $ 256,291 $ 248,282
Adjustments:
Provision for doubtful accounts and
authorized credits 22,024 27,047
Provision for transaction losses 18,579 25,627
Depreciation and amortization 79,660 123,286
Stock-based compensation expense related
to stock options and purchases 3,596 83,818
Tax benefit on the exercise of stock
options 84,992 37,442
Excess tax benefits from stock-based
compensation - (23,372)
Minority interest 18 1
Changes in assets and liabilities, net of
acquisition effects:
Accounts receivable (54,162) (22,901)
Funds receivable from customers (77,333) 29,748
Other current assets 1,203 (117,726)
Other non-current assets (8,361) 7,263
Deferred tax liabilities, net 2,240 (7,500)
Accounts payable 20,909 51,956
Funds payable and amounts due to
customers 168,928 74,331
Accrued expenses and other liabilities (21,838) (18,761)
Deferred revenue and customer advances (6,975) 9,023
Income taxes payable 5,648 56,640
----------- -----------
Net cash provided by operating activities 495,419 584,204
----------- -----------
Cash flows from investing activities:
Purchases of property and equipment, net (79,584) (133,576)
Purchases of investments (368,094) (378,087)
Maturities and sales of investments 245,665 365,777
Acquisitions, net of cash acquired (445,008) -
----------- -----------
Net cash used in investing activities (647,021) (145,886)
----------- -----------
Cash flows from financing activities:
Proceeds from issuance of common stock, net 179,279 80,606
Excess tax benefits from stock-based
compensation - 23,372
Payment of headquarters facility lease
obligation (126,390) -
Principal payments on long-term obligations (1,849) -
----------- -----------
Net cash provided by financing activities 51,040 103,978
----------- -----------
Effect of exchange rate changes on cash and
cash equivalents (12,711) 20,558
----------- -----------
Net increase (decrease) in cash and cash
equivalents (113,273) 562,854
Cash and cash equivalents at beginning of
period 1,330,045 1,313,580
----------- -----------
Cash and cash equivalents at end of period $1,216,772 $1,876,434
=========== ===========
Supplemental non-GAAP measure:
Net cash provided by operating activities $ 495,419 $ 584,204
Less: Purchases of property and equipment, net (79,584) (133,576)
Less: Payment of headquarters facility lease
obligation (126,390) -
----------- -----------
Free cash flow $ 289,445 $ 450,628
=========== ===========
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
(US Dollars In Thousands, Except Percentages)
Net Revenues by Type
March June September December March
31, 2005 30, 2005 30, 2005 31, 2005 31, 2006
-------------------------------------------------------
Net Transaction
Revenues
US
Marketplaces $ 388,759 $ 408,452 $ 434,937 $ 504,891 $ 507,312
Current
quarter vs
prior
quarter 7% 5% 6% 16% 0%
Current
quarter vs
prior year
quarter 19% 28% 32% 39% 30%
International
Marketplaces 387,187 411,671 401,883 464,521 483,215
Current
quarter vs
prior
quarter 12% 6% (2%) 16% 4%
Current
quarter vs
prior year
quarter 51% 50% 42% 35% 25%
Payments 227,097 237,217 239,922 297,679 328,150
Current
quarter vs
prior
quarter 13% 4% 1% 24% 10%
Current
quarter vs
prior year
quarter 46% 49% 44% 49% 44%
Communications - - - 24,809 35,160
-------------------------------------------------------
Total net
transaction
revenues 1,003,043 1,057,340 1,076,742 1,291,900 1,353,837
Current
quarter vs
prior
quarter 11% 5% 2% 20% 5%
Current
quarter vs
prior year
quarter 36% 41% 38% 42% 35%
Advertising and
other non-
transaction
revenues
Total
advertising
and other
non-
transaction
revenues 28,681 28,963 28,773 36,959 36,582
Current
quarter vs
prior
quarter 1% 1% (1%) 28% (1%)
Current
quarter vs
prior year
quarter 65% 33% 8% 30% 28%
-------------------------------------------------------
Total net
revenues $1,031,724 $1,086,303 $1,105,515 $1,328,859 $1,390,419
=======================================================
Current
quarter vs
prior
quarter 10% 5% 2% 20% 5%
Current
quarter vs
prior year
quarter 36% 40% 37% 42% 35%
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
(US Dollars In Thousands, Except Percentages)
Net Revenues by Segment
March June September December March
31, 2005 30, 2005 30, 2005 31, 2005 31, 2006
-------------------------------------------------------
US Marketplaces $ 404,848 $ 423,565 $ 449,549 $ 526,130 $ 527,220
Current
quarter vs
prior quarter 7% 5% 6% 17% 0%
Current
quarter vs
prior year
quarter 20% 27% 29% 39% 30%
International
Marketplaces 393,792 418,839 408,868 473,546 492,973
Current
quarter vs
prior quarter 12% 6% (2%) 16% 4%
Current
quarter vs
prior year
quarter 52% 51% 43% 35% 25%
Payments 233,084 243,899 247,098 304,374 335,066
Current
quarter vs
prior quarter 13% 5% 1% 23% 10%
Current
quarter vs
prior year
quarter 47% 51% 44% 48% 44%
Percent of
Payments
revenue which
is
international 35% 35% 36% 36% 35%
Communications - - - 24,809 35,160
Percent of
Communications
revenue which
is
international - - - 87% 87%
-------------------------------------------------------
Total net
revenues $1,031,724 $1,086,303 $1,105,515 $1,328,859 $1,390,419
=======================================================
Current
quarter vs
prior quarter 10% 5% 2% 20% 5%
Current
quarter vs
prior year
quarter 36% 40% 37% 42% 35%
Net Revenues by Geography
March June September December March
31, 2005 30, 2005 30, 2005 31, 2005 31, 2006
-------------------------------------------------------
US net revenues $ 556,246 $ 581,851 $ 608,428 $ 724,748 $ 748,136
Current
quarter vs
prior quarter 7% 5% 5% 19% 3%
Current
quarter vs
prior year
quarter 22% 29% 30% 40% 35%
% of total 54% 54% 55% 55% 54%
International
net revenues 475,478 504,452 497,087 604,111 642,283
Current
quarter vs
prior quarter 14% 6% (1%) 22% 6%
Current
quarter vs
prior year
quarter 58% 56% 47% 44% 35%
% of total 46% 46% 45% 45% 46%
-------------------------------------------------------
Total net
revenues $1,031,724 $1,086,303 $1,105,515 $1,328,859 $1,390,419
=======================================================
Current
quarter vs
prior quarter 10% 5% 2% 20% 5%
Current
quarter vs
prior year
quarter 36% 40% 37% 42% 35%
eBay Inc.
eBay Marketplaces Unaudited Supplemental Operating Data
(In Millions, Except Percentages)
March June September December March
31, 2005 30, 2005 30, 2005 31, 2005 31, 2006
--------- --------- --------- --------- ---------
Confirmed Registered
Users (1) 147.1 157.3 168.1 180.6 192.9
Current quarter vs
prior quarter 9% 7% 7% 7% 7%
Current quarter vs
prior year quarter 40% 38% 35% 33% 31%
Active Users (2) 60.5 64.6 68.0 71.8 75.4
Current quarter vs
prior quarter 8% 7% 5% 6% 5%
Current quarter vs
prior year quarter 34% 34% 32% 28% 25%
Number of Non-Stores
Listings (3) 399.8 402.2 407.0 480.6 490.8
Current quarter vs
prior quarter 6% 1% 1% 18% 2%
Current quarter vs
prior year quarter 25% 27% 24% 28% 23%
Number of Stores
Listings (3) 32.0 37.9 51.6 65.7 84.6
Current quarter vs
prior quarter 14% 18% 36% 27% 29%
Current quarter vs
prior year quarter 300% 131% 154% 135% 164%
Gross Merchandise
Volume (4) $ 10,602 $ 10,884 $ 10,800 $ 12,013 $ 12,504
Current quarter vs
prior quarter 8% 3% (1%) 11% 4%
Current quarter vs
prior year quarter 32% 36% 30% 22% 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.
Includes users of eBay India since the migration to the eBay
platform in April 2005.
(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.
PayPal Unaudited Supplemental Operating Data
(In Millions, Except Percentages)
March June September December March
31, 2005 30, 2005 30, 2005 31, 2005 31, 2006
--------- --------- --------- --------- ---------
Total accounts (1) 71.6 78.9 86.6 96.2 105.0
Current quarter vs
prior quarter 12% 10% 10% 11% 9%
Current quarter vs
prior year
quarter 57% 56% 53% 51% 47%
Active accounts (2) 22.1 22.9 24.5 28.1 29.2
Total number of
payments (3) 110.4 113.2 117.4 139.7 149.2
Current quarter vs
prior quarter 11% 3% 4% 19% 7%
Current quarter vs
prior year
quarter 39% 46% 41% 40% 35%
Total payment volume
(4) $ 6,233 $ 6,471 $ 6,667 $ 8,114 $ 8,769
Current quarter vs
prior quarter 11% 4% 3% 22% 8%
Current quarter vs
prior year
quarter 44% 49% 44% 45% 41%
eBay Marketplaces
as % of total
payment volume 71% 70% 69% 69% 67%
Transaction rates
(5)
Transaction
revenue rate 3.64% 3.67% 3.60% 3.67% 3.74%
Transaction
processing
expense rate 1.15% 1.08% 1.11% 1.09% 1.04%
Transaction loss
rate 0.30% 0.19% 0.24% 0.33% 0.29%
(1) Cumulative total of all accounts opened, including users who made
payments using PayPal but have not registered, and excluding
accounts that have been closed or locked and the 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 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
(US Dollars 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
That May Affect Results of Operations and Financial Condition" 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
June 30, 2006
------------------------------
GAAP (a) Non-GAAP (b)
------------------------------
Net revenues $1,370-$1,415 $1,370-$1,415
Diluted EPS $0.14-$0.16 $0.22-$0.23
Six months ending
December 31, 2006
------------------------------
GAAP (a) Non-GAAP (b)
------------------------------
Net revenues $2,965-$3,105 $2,965-$3,105
Diluted EPS $0.37-$0.40 $0.52-$0.54
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) $0.65-$0.71 $0.96-$1.01
Effective tax rate 29% - 30% 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
option under FAS 123(R) "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 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, payroll taxes on employee stock
options of approximately $5-$10 million, stock-based compensation
of approximately $85-$100 million, which includes the estimated
impact of expensing stock options due to the adoption of FAS
123(R) "Share-Based Payment," and other adjustments estimated to
result in an operating margin adjustment of approximately 10% for
each of the quarters in the year ending December 31, 2006. Net of
tax, the above non-GAAP items are estimated to result in a
$0.07-$0.08 per diluted share adjustment for each of the quarters
in the year ending December 31, 2006.
COPYRIGHT 2006 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning
Find Research Guides for:
Find Featured Titles for: Reference
- Academe
- African American Review
- African Arts
- African Studies Review
- Afro-Americans in New York Life and History
- Alabama Heritage
- Alabama Review
- American Mathematical Monthly, The
- Anglican Theological Review
- Annals of Dyslexia
- Arab Studies Quarterly (ASQ)
- Auk, The
- Australian Journal of Anthropology, The
- Christian Century
- Natural History
Most Popular Articles in Business
- Research and Markets : Tesco Plc - SWOT Framework Analysis
- Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors
- eBay made easy: ready to start an eBay business? These 5 simple steps will ...
- Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...
- Wal-Mart's newest distribution center opened last month near the southwest ...
- More »