eBay Inc. Reports First Quarter Results:

  eBay Inc. Reports First Quarter Results:    *Enabled Commerce Volume Growth 24%   *Revenue Growth 14%   *Non-GAAP Earnings Growth 11%   *Company Buys Back $1.8 Billion in Stock; Takes GAAP Tax Charge On Foreign     Earnings To Increase Available U.S. Cash By $6.0 Billion  Business Wire  SAN JOSE, Calif. -- April 29, 2014  Global commerce platform and payments leader eBay Inc. (Nasdaq: EBAY) today reported that revenue for the first quarter ended March 31, 2014, increased 14% to $4.3 billion, compared to the same period in 2013. Non-GAAP earnings increased 11%, to $899 million or $0.70 per diluted share, over the prior year, driven by strong top line growth. A first quarter GAAP loss of ($2.3) billion or ($1.82) per diluted share, was due to a discrete tax charge of approximately $3.0billion.  The role the company plays in global commerce continued to grow, with total company enabled commerce volume (ECV) increasing 24% in the first quarter to $58 billion. Mobile ECV advanced 70% to $11 billion representing 19% of volume. Mobile downloads since inception exceeded 240 million and attracted 6.5 million new customers in the quarter. Cross-border trade grew 24%, representing $13 billion, or 22%, of total company ECV.  “We delivered a strong first quarter, withenabled commerce volume up 24 percent and revenue up 14 percent,” said eBay Inc. President and CEO John Donahoe.“We arecommitted to delivering sustainable shareholder value and focusing on what matters most to our investors. We are executing our growth plans, capitalizing on the synergies in our portfolio and aggressively executing our $5.0 billion share buyback program. Today, we also announced a non-cash tax charge to facilitate repatriation of $6.0 billion net in foreign earnings, increasing our available U.S. cash and enhancing our financial flexibility."  PayPal net total payment volume (TPV) grew 27% with Merchant Services volume up 32% and on-eBay volume up 15%. Revenue grew to $1.8 billion. PayPal gained 5.8 million new active registered accounts to end the quarter at 148 million, up 16%. Global on-eBay penetration increased to 78.9%. PayPal continued to invest in its credit offerings, providing flexibility for consumers and merchants while improving its ability to manage transaction expense and reinvest in the business to accelerate growth.  eBay Marketplaces gross merchandise volume (GMV) grew 12%, with the U.S. up 11% and International up 13%. Revenue grew to $2.2 billion. Marketplaces gained 4.7 million new buyers to end the quarter with 145 million active buyers, up 14%. Top rated sellers in the company’s three largest markets grew their same-store-sales 19% and offered free shipping on 53% of transactions across those markets. The selection of items available on Marketplaces grew to over 650 million listings, including both platform and non-platform offerings, reflecting the success of improved selling initiatives, particularly on mobile.  eBay Enterprise gross merchandise sales (GMS) grew 16%. Revenue grew to $269 million. Enterprise enabled its clients to grow same-store sales 11%. eBay’s Magento business, which primarily services small to medium-sized businesses, was integrated into eBay Enterprise’s offerings, providing merchants of all sizes a highly flexible end-to-end solution.   First Quarter 2014 Financial Highlights (presented in millions, except per share data and percentages)                            First Quarter                                          2014          2013         Change eBay Inc.                                                        Net revenue                $4,262        $3,748       $514         14% Enabled commerce volume    $58,495       $47,091      $11,404      24% (ECV) GAAP                                                             Net income (loss)          $(2,326)      $677         $(3,003)     (443%) Earnings per diluted       $(1.82)       $0.51        $(2.33)      (454%) share Non-GAAP                                                         Net income                 $899          $829         $70          8% Earnings per diluted       $0.70         $0.63        $0.07        11% share Business Units                                                   Payments                                                         Net revenue                $1,845        $1,548       $297         19% Net total payment          $52,006       $41,040      $10,966      27% volume (TPV) Marketplaces                                                     Net revenue                $2,155        $1,957       $198         10% Gross merchandise          $20,545       $18,307      $2,238       12% volume (GMV) Enterprise                                                       Net revenue                $269          $248         $21          8% Gross Merchandise Sales    $936          $807         $129         16% (GMS)  Other Selected Financial and Operational Results    *Operating margin — GAAP operating margin decreased to 20.6% for the first     quarter of 2014, compared to 21.3% for the same period last year. Non-GAAP     operating margin decreased to 26.9% in the first quarter, compared to     27.4% for the same period last year.   *Taxes — The GAAP effective tax rate for the first quarter of 2014 was     366%, compared to 16% for the first quarter of 2013. The company recorded     a discrete tax charge of approximately $3.0 billion taken on $9.0 billion     of foreign earnings from the prior years that were previously not subject     to U.S. tax. This increases available U.S. cash by approximately $6.0     billion (net of the tax charge) providing greater U.S. financial     flexibility. Excluding the effect of this discrete tax charge, our     effective tax rate for the quarter would have been 18%. The remaining two     percentage point increase in the company’s GAAP effective tax rate     compared to the same period of the prior year was due to an increase in     current year foreign earnings subject to U.S. tax and the expiration of     the federal R&D credit. For the first quarter of 2014 and 2013, the     non-GAAP effective tax rate was 21% and 20%, respectively.   *Cash flow — The company generated $1.2 billion of operating cash flow and     $968 million of free cash flow during the first quarter of 2014.   *Stock repurchase programs — The company repurchased 33.1 million shares of     its common stock for approximately $1.8 billion in the first quarter of     2014. As of March 31, 2014, the company’s remaining share repurchase     authorization was $3.8 billion.   *Cash and cash equivalents and non-equity investments — The company's cash     and cash equivalents and non-equity investments portfolio totaled $11.9     billion at March31, 2014, down from $12.8 billion at December31, 2013.   *As previously announced, the company has settled its proxy fight with     investor Carl Icahn. Icahn has withdrawn both his proposal to separate the     company's PayPal business and his two nominees to the company's Board of     Directors. The company has agreed to appoint David Dorman as an     independent director to its Board of Directors. This will expand the     number of independent directors on the board to 10.  Business Outlook    *Second quarter 2014 — The company expects net revenues in the range of     $4,325 - $4,425 million with GAAP earnings per diluted share in the range     of $0.51 - $0.53 and non-GAAP earnings per diluted share in the range of     $0.67 - $0.69.   *Full year 2014 — The company now expects net revenues in the range of     $18,000 - $18,500 million with GAAP earnings per diluted share in the     range of $0.04 - $0.09 and non-GAAP earnings per diluted share in the     range of $2.95 - $3.00.  Quarterly Conference Call and Webcast  eBay Inc. will host a conference call to discuss first quarter 2014 results at 2:00p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company's Investor Relations website at http://investor.ebayinc.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.  eBay Inc. uses its Investor Relations website at http://investor.ebayinc.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor, in addition to following press releases, SEC filings, public conference calls and webcasts.  AbouteBay Inc.  eBay Inc. (NASDAQ: EBAY) is a global commerce and payments leader, providing a robust platform where merchants of all sizes can compete and win. Founded in 1995 inSan Jose, Calif.,eBay Inc. connects millions of buyers and sellers and enabled $205 billion* of commerce volume in 2013. We do so through eBay, one of the world's largest online marketplaces, which allows users to buy and sell in nearly every country on earth; through PayPal, which enables individuals and businesses to securely, easily and quickly send and receive digital payments; and through eBay Enterprise, which enables omnichannel commerce, multichannel retailing and digital marketing for global enterprises in the U.S. and internationally. We also reach millions through specialized marketplaces such asStubHub, the world's largest ticket marketplace, andeBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and its global portfolio of online brands, visitwww.ebayinc.com.  * This adjusted number reflects decision to remove vehicles and real estate GMV from ongoing total GMV and ECV metrics (previously stated ECV for 2013 was $212 billion, incorporating vehicles and real estate GMV).  Presentation  All growth rates represent year over year comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may not sum or recalculate using the rounded dollar amounts provided.  Non-GAAPFinancial Measures  This press release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission (SEC): non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP effective tax rate and free cash flow. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles (GAAP). For a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP measures, see “Business Outlook,” “Non-GAAPMeasures of Financial Performance,” “Reconciliation of GAAPOperating Margin to Non-GAAPOperating Margin,” “Reconciliation of GAAPNet Income (loss) to Non-GAAPNet Income and Reconciliation of GAAP Effective Tax Rate to Non-GAAPEffective Tax Rate” and “Reconciliation of Operating Cash Flow to Free Cash Flow” included in this press release.  Forward-Looking Statements  This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company's current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding expected financial results for the second quarter and full year 2014, and the future growth in the Payments, Marketplaces and Enterprise businesses, mobile payments and mobile commerce, and the company’s plans regarding its stock repurchase programs. The company's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: changes in political, business and economic conditions, any European, Asian or general economic downturn or crisis (including any economic disruption or sanctions related to Ukraine or Russia) and any conditions that affect ecommerce growth; fluctuations in foreign currency exchange rates; the company's need to successfully react to the increasing importance of mobile payments and mobile commerce and the increasing social aspect of commerce; the company's ability to deal with the increasingly competitive ecommerce environment, including competition for its sellers from other trading sites and other means of selling, and competition for its buyers from other merchants, online and offline; changes to the company's capital allocation or management of operating cash; the company's need to manage an increasingly large enterprise with a broad range of businesses of varying degrees of maturity and in many different geographies; the effect of management changes and business initiatives; the company's need and ability to manage other regulatory, tax and litigation risks as its services are offered in more jurisdictions and applicable laws become more restrictive; any changes the company may make to its product offerings; the competitive, regulatory, payment card association-related and other risks specific to PayPal and Bill Me Later, especially as PayPal continues to expand geographically and introduce new products and as new laws and regulations related to financial services companies come into effect; the company's ability to timely upgrade and develop its technology systems, infrastructure and customer service capabilities at reasonable cost; the company's ability to maintain site stability and performance on all of its sites while adding new products and features in a timely fashion; and the company's ability to profitably integrate, manage and grow businesses that have been acquired or may be acquired in the future. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.  More information about factors that could affect the company's operating results is included under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the company's most recent annual report on Form10-K and subsequent quarterly reports on Form10-Q, copies of which may be obtained by visiting the company's Investor Relations website at http://investor.ebayinc.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.   eBay Inc. Unaudited Condensed Consolidated Balance Sheet                                                  March 31,  December 31,                                                  2014        2013                                                  (In millions)                                                   ASSETS Current assets: Cash and cash equivalents                        $  4,415    $   4,494 Short-term investments                           3,429       4,531 Accounts receivable, net                         810         899 Loans and interest receivable, net               2,744       2,789 Funds receivable and customer accounts           9,648       9,260 Other current assets                             1,313       1,310 Total current assets                             22,359      23,283 Long-term investments                            5,211       4,971 Property and equipment, net                      2,686       2,760 Goodwill                                         9,257       9,267 Intangible assets, net                           805         941 Other assets                                     227         266 Total assets                                     $  40,545   $   41,488 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt                                  $  4        $   6 Accounts payable                                 277         309 Funds payable and amounts due to customers       9,648       9,260 Accrued expenses and other current liabilities   5,523       2,799 Deferred revenue                                 169         158 Income taxes payable                             120         107 Total current liabilities                        15,741      12,639 Deferred and other tax liabilities, net          828         841 Long-term debt                                   4,124       4,117 Other liabilities                                243         244 Total liabilities                                20,936      17,841                                                               Total stockholders' equity                       19,609      23,647 Total liabilities and stockholders' equity       $  40,545   $   41,488   eBay Inc. Unaudited Condensed Consolidated Statement of Income                                        Three Months Ended March 31,                                        2014                    2013                                        (In millions, except per share amounts)                                                              Net revenues                           $     4,262              $   3,748 Cost of net revenues (1)               1,351                   1,152        Gross profit                           2,911                   2,596        Operating expenses: Sales and marketing (1)                805                      697 Product development (1)                480                      434 General and administrative (1)         465                      408 Provision for transaction and loan     204                      175 losses Amortization of acquired intangible    79                      82           assets Total operating expenses               2,033                   1,796        Income from operations                 878                      800 Interest and other, net                (5              )        9            Income before income taxes             873                      809 Provision for income taxes             (3,199          )        (132        ) Net income (loss)                      $     (2,326    )        $   677      Net income (loss) per share: Basic                                  $     (1.82     )        $   0.52     Diluted                                $     (1.82     )        $   0.51     Weighted average shares: Basic                                  1,276                   1,295        Diluted                                1,276                   1,319         (1) Includes stock-based compensation as follows: Cost of net revenues                   $     17                 $   13 Sales and marketing                    42                       33 Product development                    51                       32 General and administrative             39                      33                                                  $     149               $   111        eBay Inc. Unaudited Condensed Consolidated Statement of Cash Flows                                                   Three Months Ended March 31,                                                   2014            2013                                                  (In millions) Cash flows from operating activities: Net income (loss)                                 $  (2,326  )     $  677 Adjustments: Provision for transaction and loan losses         204              175 Depreciation and amortization                     382              329 Stock-based compensation                          149              111 Deferred income taxes                             3,108            450 Changes in assets and liabilities, net of         (343       )     (805      ) acquisition effects Net cash provided by operating activities         1,174           937        Cash flows from investing activities: Purchases of property and equipment               (206       )     (299      ) Changes in principal loans receivable, net        (2         )     (29       ) Purchases of investments                          (1,261     )     (1,426    ) Maturities and sales of investments               2,006            1,048 Acquisitions, net of cash acquired                (4         )     (8        ) Other                                             (1         )     (5        ) Net cash provided by (used in) investing          532             (719      ) activities Cash flows from financing activities: Proceeds from issuance of common stock            55               102 Repurchases of common stock                       (1,811     )     (476      ) Excess tax benefits from stock-based              60               116 compensation Tax withholdings related to net share settlements of restricted stock units and         (104       )     (153      ) awards Funds receivable and customer accounts, net       (388       )     (803      ) Funds payable and amounts due to customers, net   388              803 Other                                             7               —          Net cash (used in) provided by financing          (1,793     )     (411      ) activities Effect of exchange rate changes on cash and       8               (94       ) cash equivalents Net (decrease) increase in cash and cash          (79        )     (287      ) equivalents Cash and cash equivalents at beginning of         4,494           6,817      period Cash and cash equivalents at end of period        $  4,415        $  6,530     eBay Inc. Unaudited Summary of Consolidated Net Revenues  Net Revenues   Three Months Ended by Type (1)                 March 31,   December    September   June 30,    March 31,                              31,          30,                 2014        2013        2013        2013        2013 Net transaction     (In millions, except percentages) revenues Marketplaces    $ 1,727      $ 1,828      $ 1,609      $ 1,578      $ 1,554 Current quarter vs      (6      )%   14      %    2       %    2       %    (4      )% prior quarter Current quarter vs      11      %    13      %    13      %    11      %    14      % prior year quarter Percent of Marketplaces    58      %    57      %    55      %    55      %    55      % revenue from international Payments        1,700        1,693        1,493        1,475        1,435 Current quarter vs      —       %    13      %    1       %    3       %    —       % prior quarter Current quarter vs      19      %    18      %    18      %    20      %    18      % prior year quarter Percent of Payments        56      %    57      %    56      %    56      %    55      % revenue from international Enterprise      208          333          185          194          186 Current quarter vs      (38     )%   80      %    (5      )%   4       %    (44     )% prior quarter Current quarter vs      12      %    —       %    9       %    18      %    2       % prior year quarter Percent of Enterprise      4       %   3       %   4       %   5       %   5       % revenue from international Total net transaction     3,635        3,854        3,287        3,247        3,175 revenues Current quarter vs      (6      )%   17      %    1       %    2       %    (6      )% prior quarter Current quarter vs      14      %    14      %    15      %    15      %    15      % prior year quarter                                                                      Marketing services and other revenues Marketplaces    428          471          418          423          403 Current quarter vs      (9      )%   13      %    (1      )%   5       %    (7      )% prior quarter Current quarter vs      6       %    8       %    10      %    9       %    11      % prior year quarter Percent of Marketplaces    71      %    69      %    70      %    71      %    71      % revenue from international Payments        145          143          127          149          113 Current quarter vs      1       %    13      %    (15     )%   32      %    4       % prior quarter Current quarter vs      27      %    31      %    25      %    21      %    22      % prior year quarter Percent of Payments        3       %    4       %    3       %    3       %    4       % revenue from international Enterprise      61           74           67           66           62 Current quarter vs      (17     )%   11      %    2       %    6       %    (19     )% prior quarter Current quarter vs      (1      )%   (3      )%   (1      )%   (1      )%   1       % prior year quarter Percent of Enterprise      —       %   —       %   —       %   —       %   —       % revenue from international Total marketing services and    634          688          612          638          578 other revenues Current quarter vs      (8      )%   12      %    (4      )%   10      %    (7      )% prior quarter Current quarter vs      10      %    11      %    11      %    10      %    12      % prior year quarter                                                                      Elimination of inter-segment   (7      )   (12     )   (7      )   $ (8    )   $ (5    ) net revenue and other (2) Total net       $ 4,262    $ 4,530    $ 3,892    $ 3,877    $ 3,748  revenues Current quarter vs      (6      )%   16      %    —       %    3       %    (6      )% prior quarter Current quarter vs      14      %    13      %    14      %    14      %    14      % prior year quarter             During the first quarter of 2014, we changed our reportable segments       based on changes in our organizational structure which reflect the       integration of our Magento platform into our Enterprise segment. Prior       to this change, Magento was reported in corporate and other. Also during       the quarter, we revised our internal management reporting of certain (1)   Marketplaces transactions to align more closely with our related       operating metrics. Related to this change, we reclassified our       Marketplaces vehicles and real estate revenues from net transaction       revenues to marketing services and other revenues. Prior period amounts       have been revised to conform to the current period segment reporting       structure.        (2)   Represents revenue generated between our reportable segments.   Net Revenues by Geography    Three Months Ended (1)                  March 31,   December     September  June 30,   March 31,                               31,           30,                  2014        2013         2013       2013       2013                  (In millions, except percentages) U.S. net         $ 1,998      $  2,180      $ 1,873     $ 1,870     $ 1,789 revenues Current quarter vs       (8      )%   16        %   —       %   5       %   (8      )% prior quarter Current quarter vs       12      %    11        %   14      %   16      %   13      % prior year quarter Percent of       47      %    48        %   48      %   48      %   48      % total                                                                      International    2,264        2,350         2,019       2,007       1,959 net revenues Current quarter vs       (4      )%   16        %   1       %   2       %   (4      )% prior quarter Current quarter vs       16      %    16        %   15      %   12      %   16      % prior year quarter Percent of       53      %    52        %   52      %   52      %   52      % total                                                              Total net        $ 4,262    $  4,530    $ 3,892   $ 3,877   $ 3,748  revenues Current quarter vs       (6      )%   16        %   —       %   3       %   (6      )% prior quarter Current quarter vs       14      %    13        %   14      %   14      %   14      % prior year quarter             Revenues are attributed to U.S. and international geographies primarily (1)   based upon the country in which the seller, payment recipient, customer,       website that displays advertising, or other service provider, as the       case may be, is located.   eBay Inc. Unaudited eBay Inc. Supplemental Operating Data            Three Months Ended            March 31,    December 31,  September    June 30,    March 31,                                         30,            2014         2013          2013         2013        2013            (In millions, except percentages) ECV (1)    $ 58,495      $  59,607      $  49,727     $ 48,776     $ 47,091 Current quarter      (2     %)      20      %      2      %     4      %     (3     %) vs prior quarter Current quarter vs prior     24     %       23      %      23     %     22     %     20     % year quarter   During the first quarter of 2014, we revised our internal management reporting of certain Marketplaces transactions to align more closely with our related operating metrics. Related to this change, we correspondingly excluded vehicles and real estate gross merchandise volume from our total gross merchandise volume. Prior period amounts have been revised to conform to the current period segment reporting structure.        Includes Marketplaces GMV (excluding vehicles and real estate), Payments       Merchant Services Net TPV and eBay Enterprise Gross Merchandise Sales       not earned on eBay or paid for via PayPal or Bill Me Later during the       period; excludes volume transacted through the Magento platform. PayPal (1)  Merchant Services Net TPV is the total dollar volume of payments, net of       payment reversals, successfully completed through our payments networks,       including Bill Me Later, Venmo, and payments processed through       Braintree’s full stack payments platform during the period, excludes       PayPal’s and Braintree’s payment gateway businesses and payments for       transactions on our Marketplaces platforms.   eBay Inc. Unaudited Payments Supplemental Operating Data               Three Months Ended               March 31,    December    September   June 30,    March 31,                             31,          30,               2014         2013        2013        2013        2013               (In millions, except percentages) Active registered      148.4         142.6        137.4        132.4        127.7 accounts (1) Current quarter vs      4      %      4      %     4      %     4      %     4      % prior quarter Current quarter vs      16     %      16     %     17     %     17     %     16     % prior year quarter                                                                     Net number of payments     834.4         846.1        729.4        700.6        681.6 (2) Current quarter vs      (1     )%     16     %     4      %     3      %     (1     )% prior quarter Current quarter vs      22     %      22     %     24     %     24     %     23     % prior year quarter                                                                     Net total payment       $ 52,006      $ 51,973     $ 43,837     $ 42,813     $ 41,040 volume (3) Current quarter vs      —      %      19     %     2      %     4      %     (1     )% prior quarter Current quarter vs      27     %      25     %     25     %     24     %     21     % prior year quarter On eBay net total payment volume as %     29     %      29     %     30     %     30     %     32     % of net total payment volume Merchant Services net total payment volume as %     71     %      71     %     70     %     70     %     68     % of net total payment volume                                                                     Take rate       3.55   %      3.53   %     3.70   %     3.79   %     3.77   % (4)                                                                     Transaction rates (5) Expense         0.99   %      0.97   %     1.05   %     1.04   %     1.05   % rate Loss rate       0.27   %      0.32   %     0.30   %     0.31   %     0.29   % Margin rate     64.6   %      63.5   %     63.4   %     64.4   %     64.4   %                                                                     Loan portfolio rates Risk adjusted        16.2   %      15.8   %     16.1   %     16.2   %     15.8   % margin (6) Net charge-off      5.4    %      6.3    %     5.5    %     5.6    %     5.3    % rate (7) 90-day delinquency     2.9    %      2.9    %     3.2    %     2.7    %     2.7    % rate (8)             All registered accounts that successfully sent or received at least one       payment or payment reversal through our payments networks, including (1)   Bill Me Later and Venmo, but excluding users of Braintree’s unbranded       payment checkout solutions, within the last 12 months and which are       currently able to transact.              Total number of payments, net of payment reversals, successfully       completed through our payments networks, including Bill Me Later, Venmo, (2)   and payments processed through Braintree’s full stack payments platform       during the period; excludes payments sent or received through PayPal's       and Braintree’s payment gateway businesses.              Total dollar volume of payments, net of payment reversals, successfully       completed through our payments networks, including Bill Me Later, Venmo, (3)   and payments processed through Braintree’s full stack payments platform       during the period; excludes payments sent or received through PayPal's       and Braintree’s payment gateway businesses.              Take Rate reflects total net revenues earned through our payments (4)   networks, including Bill Me Later, Braintree, Venmo, PayPal’s payment       gateway business, subscription fees and other net revenues, divided by       Net Total Payment Volume.        (5)   Expense Rate reflects third party payment processing expenses and other       related service costs, divided by Net Total Payment Volume.       Loss Rate reflects expense associated with our customer protection       programs, fraud, chargebacks and merchant credit losses, bad debt       expense associated with our accounts receivable balances, and loan       reserves associated with our loan receivables balances, divided by Net       Total Payment Volume.       Margin Rate reflects Take Rate less Expense Rate and Loss Rate, divided       by Take Rate.              The risk adjusted margin represents annualized credit portfolio revenue, (6)   excluding contra-revenue incentives to customers or merchants, less cost       of funds and less net credit and fraud losses during the period, divided       by average loans receivable for the period.              Net charge-off rate is the annualized ratio of net credit losses over (7)   the average daily loan receivables balance during the period. Net credit       losses are the principal loan losses, exclusive of interest and late fee       write offs, less recoveries of previously charged off balances.              90-day delinquency rate is the end of period Bill Me Later account (8)   balances that have missed three or more consecutive payments, divided by       total ending loan receivables.   eBay Inc. Unaudited Marketplaces Supplemental Operating Data                 Three Months Ended                 March 31,    December    September   June 30,    March 31,                               31,          30,                  2014       2013      2013      2013      2013                    (In millions, except percentages) Active Buyers     145.1         140.3        134.9        130.8        127.3 (1) Current quarter vs        3      %      4      %     3      %     3      %     3      % prior quarter Current quarter vs        14     %      14     %     13     %     13     %     13     % prior year quarter                                                                       Gross Merchandise     $ 20,545      $ 21,503     $ 18,345     $ 18,276     $ 18,307 Volume (2) Current quarter vs        (4     )%     17     %     —      %     —      %     (4     )% prior quarter Current quarter vs        12     %      13     %     13     %     13     %     13     % prior year quarter U.S. GMV as %     40     %      39     %     40     %     40     %     40     % of total GMV International GMV as % of       60     %      61     %     60     %     60     %     60     % total GMV  eBay's classifieds web sites, brands4friends and Shopping.com are not included in these metrics.  During the first quarter of 2014, we revised our internal management reporting of certain Marketplaces transactions to align more closely with our related operating metrics. Related to this change, we reclassified our Marketplaces vehicle and real estate revenue from net transaction revenues to marketing services and other revenues. Prior period amounts have been revised to conform to the current period segment reporting structure.         All buyers (including buyers of Half.com, StubHub, GittiGidiyor, and our (1)  Korean subsidiary) who successfully closed a transaction within the       previous 12-month period. Buyers may register more than once, and as a       result, may have more than one account.       Total value of all successfully closed transactions between users on (2)   Marketplaces platforms during the period regardless of whether the buyer       and seller actually consummated the transaction; excludes vehicles and       real estate gross merchandise volume.   eBay Inc. Unaudited Enterprise Supplemental Operating Data                  Three Months Ended                  March 31,  December 31,  September    June 30,  March 31,                                             30,                  2014       2013          2013         2013      2013                  (In millions, except percentages) Gross Merchandise      $  936      $  1,771       $  787        $  815     $  807 Sales (1) Current quarter vs          (47 %)      125    %       (3   %)       1   %      (49 %) prior quarter Current quarter vs          16  %       11     %       13   %        21  %      13  % prior year quarter             Represents the retail value of all sales transactions, inclusive of       freight charges and net of allowance for returns and discounts, which (1)   flow through our Enterprise commerce technologies, whether we record the       full amount of such transaction as a product sale or a percentage of       such transaction as a service fee; excludes volume transacted through       the Magento platform.                                           eBay Inc.                                Business Outlook                    (In Millions, Except Per Share Amounts)  The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.  The company's future performance involves risks and uncertainties, and the company's actual results could differ materially from the information below and elsewhere in this press release. 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 the company'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 Form10-K and subsequent quarterly reports on Form10-Q, copies of which may be obtained by visiting the company's investor relations website at http://investor.ebayinc.com or the SEC's website at www.sec.gov.                                                                                   Three Months Ending                                          June 30, 2014 (In millions, except per share           GAAP               Non-GAAP (a) amounts) Net Revenue                              $4,325 - $4,425     $4,325 - $4,425 Diluted EPS                              $0.51 - $0.53       $0.67 - $0.69                                                                                                        Twelve Months Ending                                          December 31, 2014                                         GAAP                Non-GAAP (b) Net Revenue                              $18,000 - $18,500   $18,000 - $18,500 Diluted EPS                              $0.04 - $0.09       $2.95 - $3.00                         Estimated non-GAAP amounts above for the three months ending               June 30, 2014, reflect adjustments that exclude the estimated               amortization of acquired intangible assets of approximately         (a)   $90-$100 million and estimated stock-based compensation expense               and employer payroll taxes on stock-based compensation expense               of approximately $180-$190 million as well as the related tax               impact.                              Estimated non-GAAP amounts above for the twelve months ending               December 31, 2014, reflect adjustments that exclude the               estimated amortization of acquired intangible assets of         (b)   approximately $340-$360 million and estimated stock-based               compensation expense and employer payroll taxes on stock-based               compensation expense of approximately $675-$695 million as well               as the related tax impact.                                                   eBay Inc.                   Non-GAAPMeasures of Financial Performance  To supplement the company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP effective tax rate, and free cash flow.  These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.  Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release can be found in the tables included in this press release.  These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company's financial reporting.  For its internal budgeting process, and as discussed further below, the company's management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company's management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.  The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin and non-GAAP effective tax rate:  Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes is dependent on the company's stock price and the timing and size of exercises by employees of their stock options and the vesting of their restricted stock, over which management has limited to no control, and as such management does not believe it correlates to the company's operation of the business.  Amortization or impairment of acquired intangible assets, impairment of goodwill, significant gains or losses and transaction expenses from the acquisition or disposal of a business and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the impact of the accretion of a note receivable associated with the disposal of certain businesses. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company's business.  Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.  Other certain significant gains, losses, or charges that are not indicative of the Company’s core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results.  Tax effect of non-GAAP adjustments. This amount is used to present stock-based compensation and the other amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income.  In addition to the non-GAAP measures discussed above, the company also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company's business, make strategic acquisitions, and repurchase stock. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company's cash balance for the period.   eBay Inc. Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin                                              Three Months Ended                                              March 31,          March 31,                                                 2014              2013                                                 (In millions, except percentages) GAAP operating income                        $   878             $   800 Stock-based compensation expense and             164                 129 related employer payroll taxes Amortization of acquired intangible assets       24                  18 within cost of net revenues Amortization of acquired intangible assets       79                  82 within operating expenses Restructuring                                   —                 (4     ) Total non-GAAP operating income                 267               225     adjustments Non-GAAP operating income                    $   1,145          $   1,025   Non-GAAP operating margin                       26.9    %          27.4   %   Reconciliation of GAAP Net Income (loss) to Non-GAAP Net Income and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate                                        Three Months Ended                                        March 31,               March 31,                                        2014                     2013                                        (In millions, except per share amounts) GAAP income before income taxes        $     873                $   809 GAAP provision for income taxes        (3,199          )        (132       ) GAAP net income (loss)                 $     (2,326    )        $   677 Non-GAAP adjustments to net income: Non-GAAP operating income              267                      225 adjustments (see table above) Accretion of note receivable           —                        (5         ) Amortization of intangibles of         1                        2 investments Other significant gains, losses or     3,039                    — charges Tax effect of non-GAAP adjustments     (82             )        (70        ) Non-GAAP net income                    $     899                $   829                                                                             Diluted net income (loss) per share: GAAP                                   $     (1.82     )        $   0.51    Non-GAAP                               $     0.70              $   0.63    Shares used in GAAP diluted net        1,276                   1,319       income (loss) per-share calculation Shares used in non-GAAP diluted net    1,292                   1,319       income per-share calculation                                                                             GAAP effective tax rate                366             %        16         % Tax effect of non-GAAP adjustments     (345            )%       4          % to net income (loss)(1) Non-GAAP effective tax rate            21              %        20         %             Includes the effect of other significant gains, losses or charges (1)   adjustment of $3,039 million as this is a tax related adjustment to GAAP       net income (loss).          Reconciliation of Operating Cash Flow to Free Cash Flow                                             Three Months Ended                                             March 31,  March 31,                                             2014        2013                                             (In millions) Net cash provided by operating activities   $ 1,174     $  937 Less: Purchases of property and equipment   (206    )   (299    ) Free cash flow                              $ 968      $  638    Contact:  eBay Inc. Investor Relations Contact: Tracey Ford tford@ebay.com Tom Hudson thhudson@ebay.com or Media Relations Contact: Amanda Miller press@ebay.com or Investor Information Request: 408-376-7493 or Company News: http://www.ebayinc.com/news or Investor Relations website: http://investor.ebayinc.com  
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