81c2b5004a43f0f14287628ca1b2e5a7cb6a20ed2731ec28ac60374f656b8d94

Marketplace

- Net Transaction Revenues

- Marketing Services and Other Revenues

Payments

Enterprise

StubHub

Classifieds

Elimination of Inter-Segment Net Revenue

Advertising Revenues

- First-party advertising products

Total Revenue

23551084e5381a88dc1776f4eff72c8d8d7d869f6621aa8d9e04924883442b95

Gross Merchandise Volume – As reported (USD millions)

Gross Merchandise Volume – FX-Neutral (USD millions)

Take rate (percentage)

6f960bd1717a92ce615b7db12f7cf5716d598a05384bc60d03bebe817b2dcbb8

United States

United Kingdom

China

Germany

Rest of World

South Korea

International

c054ecc4fd2d0ecef0ba195cd5395a202046c00dea9151e3025a671c6b1610c4

13fb53e9b378d4f738df9166a5cb90311dad0e90ade60164cf1e54a4ef14b009

d8541a6e7ec13071469fbb442c9f499984f914a0d1260bc790b1974982797afb

The **Operating Cash Flow was so low** in Q4 2023 primarily due to **unfavorable changes in working capital**, with a **negative impact of $473 million** compared to just **$11 million** in the prior year, coupled with **increases in deferred income taxes (from $27 million to $160 million)**. Additionally, higher **provisions for transaction losses (rising to $101 million from $81 million)** and elevated **stock-based compensation (increasing to $149 million from $128 million)** further contributed to the decline, along with other adjustments related to the fair value of equity investments and warrants.  **[0001065088-24-000033_exhibit991erebayq42023.htm:7]** 

Why was Operating Cash Flow so low in Q4 2023?

The noticeable dip in Operating Cash Flow in Q2 2024 was primarily due to **working capital movements** that negatively affected cash flows, along with **non-cash adjustments**. These adjustments included a significant negative swing in **deferred income taxes** (from a minor negative adjustment in the previous period to a much larger negative adjustment in Q2 2024) and a **change in the fair value of the equity investment in Adevinta** (which shifted from providing positive cash flow in the prior period to a negative impact in Q2 2024). Additionally, there was a minor decrease in the **provision for transaction losses**. This combination of factors collectively contributed to the decrease in operating cash flow.  **[0001065088-24-000145_ebay-20240630.htm:45]** **[0001065088-24-000143_exhibit991erebayq22024.htm:7]** 

What caused the noticeable dip in Operating Cash Flow in Q2 2024?

The spike in income tax payments in Q4 2023 was driven by a combination of factors. **First**, a higher GAAP effective tax rate for continuing operations of **29.4%** compared to **19.1%** in Q4 2022 significantly increased the tax burden. **Second**, an increase in pre-tax income, with GAAP net income from continuing operations at **$728 million**, further contributed to the heightened tax liability. **Finally**, changes in the timing of tax payments—including settlements or adjustments from prior periods—also played a role in the overall increase in cash paid for income taxes.  **[0001065088-24-000033_exhibit991erebayq42023.htm:2]** 

What factors drove the spike in income tax payments in Q4 2023?

dc267f5345b4aa12081249709ccd3cd86173274b9d6d85b4fcb7895df05af2cd

eBay’s cash and cash equivalents dropped significantly in Q3 2024 mainly due to substantial **investing and financing outflows** that outweighed the operating cash inflows. Although the company generated strong operating cash of **$1,737 million**, large outlays—particularly the **$11,472 million** spent on investments and additional purchases of property and equipment—combined with significant financing activities such as **$2,238 million** in share repurchases, **$405 million** in dividends, and **$750 million** in debt repayments, led to a net decrease in cash. These factors contributed to the reduction from **$1,985 million** to **$1,589 million** during the period.  **[20241030SF43922:5]** **[0001065088-24-000196_exhibit991erebayq32024.htm:6]** 

Why did Cash and cash equivalents drop so significantly in Q3 2024?

The decline in Total Assets in Q3 2024 was primarily driven by a significant reduction in the equity investment in Adevinta, which dropped from **$4,474 million** to **$0** due to the sale of shares that generated **$2,410 million in proceeds**. Additionally, there was a decrease in cash and cash equivalents from **$1,985 million** to **$1,589 million**, largely resulting from cash outflows for share repurchases (**$2,238 million**), dividend payments (**$405 million**), and debt repayment (**$750 million**). Other contributing factors include changes in various asset components, such as an increase in other current assets and a decrease in deferred tax assets, all of which collectively led to a **$1,705 million** reduction in total assets for Q3 2024.  **[20241030SF43922:5]** **[0001065088-24-000196_exhibit991erebayq32024.htm:6]** **[0001065088-24-000199_ebay-20240930.htm:27]** **[20241030SF43922:2]** 

What factors led to the decline in Total assets in Q3 2024?

The documents confirm that eBay's short-term debt increased sharply from **$750 million** in Q4 2023 to **$1,551 million** in Q1 2024, but they do not provide specific details on what triggered this increase.  **[20240501SF02529:5]** **[0001065088-24-000073_exhibit991erebayq12024.htm:6]** 

What triggered the sharp increase in Short-term debt in Q1 2024?

The documents note that **eBay's long-term debt decreased** from **$6,973 million** at the end of Q4 2023 to **$6,174 million** in Q1 2024, but they do not provide specific reasons for this notable decrease.  **[20240501SF02529:5]** **[0001065088-24-000073_exhibit991erebayq12024.htm:6]** **[0001065088-24-000076_ebay-20240331.htm:2]** 

Why did Long-term debt decrease notably in Q1 2024?

18fe609d0fd3a50d43b703e185f3b7464e8e9878561310511439ee1f39736df3

038df79ef70f55a460a9a0a7a16e3313fb0e8a65b1741a45d0f35fca5e4e1cc8

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

fe234a24f97efa3b9553b845b04f26261da2dd3403ab4cab59b84fd38a55d47f

Net revenues (USD, millions)

Cost of net revenues (USD, millions)

Gross profit (USD, millions)

Sales and marketing (USD, millions)

Product development (USD, millions)

General and administrative (USD, millions)

Provision for transaction losses (USD, millions)

Amortization of acquired intangible assets (USD, millions)

Total operating expenses (USD, millions)

Income from operations (USD, millions)

Gain (loss) on equity investments and warrant, net (USD, millions)

Interest expense (USD, millions)

Interest income and other, net (USD, millions)

Income from continuing operations before income taxes (USD, millions)

Income tax provision (USD, millions)

Income from continuing operations (USD, millions)

Loss from discontinued operations, net of income taxes (USD, millions)

Net income (USD, millions)

Income per share - basic: Continuing operations (USD)

Income per share - basic: Discontinued operations (USD)

Net income per share - basic (USD)

Income per share - diluted: Continuing operations (USD)

Income per share - diluted: Discontinued operations (USD)

Net income per share - diluted (USD)

Weighted-average shares: Basic (Millions)

Weighted-average shares: Diluted (Millions)

c1f281ab724878e6efae30bfd7b2d9f0bbab3393b5ea47eb389a6e7750fbe891

eBay Inc (EBAY)

Financials