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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