EBAY - Earnings call transcript Q3 2017

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Operator

Good day, ladies and gentlemen, and thank you for your patience.

You've joined the eBay Q3 2017 earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions].

conference recorded. this reminder, a may be As I to Investor your like to Relations, call over turn the host, would now Mr. the VP of Selim Freiha. may you begin. Sir,

Selim Freiha

Good of XXXX. welcome us conference afternoon. for for earnings call quarter eBay's release and third the Thank you to joining

remarks and they Relations and Officer, on Investor are Devin We're Executive on growth also year-over-year providing indicate call commentary otherwise. presentation represent the accompany Scott me investors.ebayinc.com. Internet Scott's a FX-neutral being section and today comparisons Wenig, of during This President both Chief in Scott's All the is mentioned and through GMV call slide unless the rates the Joining the Schenkel, revenue presentation conference the Devin our eBay are call available our Chief and at broadcast Officer. and website call. Financial to

for our updates. visit relations investor can and You latest website company news the

will of addition, XX link. webcast an days archive same be In accessible the for the through

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will for current financial growth statements and make eBay, expected XXXX and and that In quarter addition, the performance future not regarding and future including but on involve the its fourth in subsidiaries, our results our of limited Inc. statements management are and based expectations, risks are business. include, and forward-looking consolidated These assumptions, forecast the uncertainties. full-year to, statements

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Devin Wenig

everyone. delivering Selim, drove and the internationally, top all In financial bottom QX, thank in three good US line And our of across strong and platforms you. acceleration afternoon, we results.

product Our responding the our rapid customers continues cycle changes to innovation and are making. we're

million of far X%, grew on we was one X% years. world's X%. at stable up our as three And As year. was in X million driven destinations, the a buyers over geographies. it's of strength quarter e-commerce growth fastest acceleration delivered volume X-point X% quarter, was GMV nearly and billion $XX across for this we active was total revenue nearly the this in platforms buyers top up multiple added been by the while our marketplace the growth buyer GMV over so quarter X to third our and platform Overall,

platform grew revenue volume was Classified up Our StubHub XX% and X%.

the returned we repurchases. over shareholders our stock to $XXX form in Finally, of million

We're share Now, level progress we far pleased efforts in to to growth. our we've that of are journey recent me of moment eBay. where business new and a a well our to transform that take let achieved responding the is some and our so

short-term be We continue to making fast when our ecosystem. still don't expect don't of as as on been possible, success drive and impact to work always have lot linear us we pressure changes as favor that a However, to of there's can big ahead recognize results. product a growth ensuring while We've significant that long-term create disruption. also we even we decisions moving

to business value drive global in differentiated inventory QX, of and our number sellers growth brands a to eBay, environment. accelerating at look on retail adapt the for continue accelerated changing an new to a our eBay we're selection and welcoming them to pace focus quarter to to In brands platform We attracting sellers third help for these straight eBay bring helping retaining consumers. brands as and and that

recently with fashion to brands announced with partnership hundreds off great enabling of our the new fashion of Spring, we're marketplace, Additionally, high-end to a power platform. a start leverage our

the we price key We're catalog best match to deals Finally, expanded our product to ensuring of guarantee international and eBay our enhancements our consumers our best at many access to the and product across program always have simplify AI our prices. markets, the modernize experience. leveraging

as We're before, made personalization at and, began progress platform. through said I've searching of future testing past AI is efforts, call listings. to scale powering over of we the significant our an areas. eBay AI we've effort structured a our commerce other QX, through now course, among on image As commerce search support activating way we and AI-driven years position the of group that In eBay technology, data new several our numerous customer

will and And by For On instead two filter less of click mobile the XX and feature one-day The to guarantee product history, a arrive to the both enable rollout listing launch search image. by time access by are enabling eBay to delivery, speed. first search in for we're in able and last their full days items to of users this the search with three device over of in eBay It options or results about shipping US Find million their organize easier business began to users search Visual to at button. an results week. our that leverage

XX%. in exiting foundation and continue leverage those with gains in we of We're built listings. QX enabled conversion to platform. improvements drive We're a the scale now powerful also landing data most strong And to to structured traffic traffic data, experiences to our selling paid launch As we is driving showing gains on deliver structured SEO share to on more our listings the see at new traffic of pages enabling sellers channel conversion increasing, channel. promoted

growth live price product, and promoted and listings and sequentially. are significantly simplifying sellers for catalog XX we're then CXC As in over the data acceleration item selling And drive sellers, AI use them the our using shipping helping to our strong million CXC revenue improvements from growth. product of choose end in QX, This of selling have our experience, leveraging format XX% other we the XXX,XXX now structured recommendations. to and and enable the resulting they're

launched of major in top XX. Finally, and We're progress new keep making brand, at we Interbrand And number remains continue UK also to eBay and the take good markets. that brand more In to story meaningful to last quarters. of broadly over the important global brands further strengthen in and tell recognized the strong, we marketing. new in QX, early the we mind The place and out brand course again, perception we'll campaigns of brand via our that holiday-oriented across being on all years, week. rolled eBay platform the QX, campaigns just launch Germany it's consideration Australia changes and in list but not new

another revenue Classified eBay quarter portfolio good of our saw accelerating Our across with of and geographies, Germany, a Kleinanzeigen. We had strength platform with performance assets. growth, particularly multiple Mobila has in across

year, focused season continue improved eBay summary, strategy pursue we're on across the of on rates. holiday in of through sharpening And in be will by the NHL. acceleration continued theater quarter, upcoming eBay we continue growth innovation, see consideration the experience drive in early-season growth to look to intend from do pressure as our a to driven brand. for in of to part this customer rapid repositioning QX. StubHub pleased board We while XXXX. forward eBay we consumer In expect the weigh continuing success a and overall We're to which strong strength to the journey growth product enter We the improving long-term and Finally, growth. meaningful last through and rest growth we

let thoughts QX give to me turn Now, QX, on on some details Scott guidance more over XXXX. initial and it you to

Scott Schenkel

Devin. Thanks,

starting on million Let's repurchasing of begin earnings we free and $X.XX flow, presentation. cash our of stock. of $XXX QX, revenue, QX total In four non-GAAP billion the generated $XXX with $X.X EPS of of while slide million performance,

increased marketplace active growth Moving base offset total at our quarter, XX-month by stable in to buyer was by buyer XXX StubHub. to buyers, growth X%, driven while million, modest active we trailing acceleration, the

with longer yet from good benefited active buyers reporting retention India. investment buyer domestic X new Underlying growth, have reminder, while marketplace our improvements in organic close a million of not in our in from are acquisition we approximately As And we no trends we in Flipkart, rates year-over-year. buyer our channel. seen the improved SEO, material

we sold area X% focus year-over-year. On points higher of products to to GMV, up of GMV, buyer as and US us experiences geography, year-over-year, quarter delivered out in growth prior for eBay $XX.X ASP. quarter. acquisition versus GMV, item billion generated two billion brand. market due New of which this average new the enabled X% higher ASP roll strong while By QX, total billion we acceleration, outpaced of of the mix up slide $XX.X $X.X product growth has a six, be the up accelerating a X%, key CXC continues international GMV and a

revenue, revenues total $X.X organically. MS&O of Moving basis up We and up X% X% to billion, million net of delivered up just transaction revenue, of and revenue, we $X.X up on billion X%. generated FX-neutral over X%, $XXX an

international sellers accelerated X%, up the Transaction to acceleration use eight, grew GMV accelerated quarter, was a year-over-year. X by primarily growth to prior listing strength acceleration US attract as versus X% marketplaces X% volume by QX, other at Europe. pricing pricing and seen to versus experienced promotional growth driven eBay and Underlying CXC Marketing the point X accelerating CXC $X.X platform activate impact to a incentives the grew QX, a X and driven slide inventory services prior prior of X-point QX benefits X% point improved X-point platform. GMV to X-point acceleration the our revenue X points points by in GMV those offset versus quarter. billion, Turning the X% BXC trends, in revenue Total consumer our grew revenue more versus to and X%, X%, partially X% and the the simplified of quarter. an and year-over-year. grew changes, rate sellers. marketplace our of was we've quarter-over-quarter

the Moving from GMV at growing Revenue over total to international with quarter. GMV QX, in line points grew X year-over-year, XX%. with X%, grew nine, accelerating slide StubHub prior X%

and be improvement overall events, in America, QX. good under while was Devin as good For likely saw continue theater pressure we expectations, and growth will boxing and below mentioned, performance our through North to

XX%, XX, QX, grew revenue X-point slide mobile.de our in motors to mainly Moving Germany. acceleration in versus QX, Classifieds a by platform driven

expect classifieds mobile revenue and app growth we mid-teens. Looking the in traffic, engagement to low forward, monetization to drive

in invest to with program the continued drivers, Cost pace flat versus Absolute driven of QX, a percentage percent we security QX increased roughly and were from in investments margin leverage, versus and XX.X%, marketplace increase, of revenue flat decreased as information and UK of by in and enhancements. data drive product dollars development were driven the XX slight we operating our expanding first-party brand to a sequentially G&A year. we slide to Product inventory we and year-over-year, while Australia. as major last primarily of and US revenue drive revenue expense increasing to was our prior-year. a advertising, Turning Korea. the flat, as costs cost by the operating investments. year-over-year innovation as campaigns roughly productivity non-GAAP delivered of flat sales expenses continue marketing as marketing primarily

quarter completed our of includes was business, part gain continue a utilize EPS market. taxes Stock-based EPS, EPS year-over-year for $XXX basis, share up talent slide gains competitive last last up offset reduction sale which in in the In Flipkart year. as delivered equity of growth repurchases, non-GAAP up was for a Turning driven was $X.XX a net including $XXX investment. on partially for quarter XX% $X.XX, highly million versus growth to compensation on the This to GAAP by we to on our benefit versus year. in the million, was EPS, programs prior-year. as of QX, July XX. X% of related eBay topline by India the hedging versus we and foreign-exchange compete $X.XX

offsetting financial up a million take via to stock-based we of was this our compensation, stock. dilution $XX And we the year. Amortization our versus While prior capital approach allocation intangibles programmatically exclude million, repurchases. granting per results non-GAAP $X stock to strategy, are considered committed

XX, continue X% payments primarily of in GAAP the As measures basis, our the and presentation. and generated up of X% CapEx year. of reconciliation driven in to the in cash capital $XXX range X% flow, was press always, we revenue for expenditures. QX to the find earnings non-GAAP differences of cash XX% expect to which you to slide we was detailed by on free of of release in timing a tax revenue and financial On year-over-year be can QX, million

quarter and Turning in billion equivalents to cash, $XX.X the $X.X cash which of with slide we of XX, ended non-equity the billion, is investment US.

in recall, we QX, would we general utilize added billion which repaid. QX, $X.X And matured purposes. we corporate during you debt said for billion As was of refinancing debt, $X.XX and and of

completed our into Flipkart. we cash addition, In investment $XXX million

represents based of first nearly returned quarters on authorization we shares million repurchases. the year, an a capital free midpoint price our $XXX billion share total. repurchased have at XX XX% cash $X.X the the of three of range. via full-year flow average This Through $XX.XX we billion amounting guidance approximately of We with remaining. of of ended in to quarter Additionally, million share repurchase the share, $X.X

remainder We strategy to our will is demonstrate flexibility, long-term our capital actions capital These debt this financial all enable opportunistic of the optimize continue to capital working access and return value. year. cost through allocation of to drive shareholder how and to our be

Turning on representing billion, $X.XX FX-neutral XX, we growth year-over-year. guidance billion revenue between to to $X.XX X% QX are X% and slide projecting of our

of marketplaces Our and revenue length offset headwinds. volume holiday further the improvements the the timing guidance by StubHub growth, in Korean and assumes aforementioned Thanksgiving and

drive representing repurchase continued We EPS user the and brand. our to expect growth XX% of revenue and to by $X.XX per investments as-reported to benefit of by growth be X% driven experiences $X.XX on net market year-over-year improved to offset non-GAAP will share, our share EPS of program, an basis. growth

year. EPS We expect on a exchange on approximately last the of we of growth basis as impact be X significant lapse to foreign gains points year-over-year hedge from

the expect to GAAP in of $X.XX QX, range share. $X.XX For we per EPS

For organic billion the revenue expect representing the approximately full to $X.XX X%. $X.XX range billion, revenue year, of growth of we in FX-neutral now

billion range approximately non-GAAP of billion. flow EPS We free expect margin in to non-GAAP and $X.XX cash XX%, $X.XX $X.X operating share to the of per $X.X

mentioned our updating impact to to are India the in guidance reflecting full-year on sale QX. $X.XX the gain GAAP previously per the EPS We share, eBay $X.XX of business of

be Topic and expense of adopt the current impact approach revenue a economic to for but in and fiscal simply under standard XXX, no have I we approximately with moment change we lower present is resulting the as certain QX. is guidance. spend to want We XXXX XXXX. ASC impact, we're XXX, new currently recorded operating of believe process that revenue to expense, magnitude recognized operating amount in how no we XXXX, ASC the which impact As this we that, in under for which $XXX sales has marketing quantifying year financials, This change discuss a income. year our increased and to contra plan could fiscal of incentives are The revenue, margin in million increased change the as

quantifying these changes. the Additionally, are still evaluating we guidelines, XXX under impact changes potential revenue we are although recognition currently ASC other from

will The guide a of We XXXX pleased in changes time. standard that making and on reconciliation the business after platforms. growing to GMV changes season. we're is our at We the and updating fastest look years. to rate progress you well the in new we we've we're XXXX QX historical acceleration the seen to XXXX In and forward provide under responding holiday summary, at across with over for our the expect three is

be Now, your to we'd questions. happy answer Operator?

Operator

Instructions]. [Operator sir. you, Thank

from of question Lynch. of Post comes first Our the of Justin Merrill America Bank line

open. Your line is

Justin Post

And just I kind at you're seeing geographic your looks the differences. get to data you you. potentially year thank my so you what on look Maybe detail the I it what internationally earlier guess, you've and organic And, more impact you seen outlook into if see out. my Thank second I Great, traffic. mentioned that the for you're next you about the is, there structured taking for can of like impact biggest wonder talk is, a US. benefit bigger question a starting guess on having as you roll than that question. just far, and as it's question

Devin Wenig

Thanks.

in what my conversion. first part, the remarks was I think I mentioned On

for our said, And gains what hadn't well. starting quarters will we've channels. channels. will mentioned of have SEO, in other I to gains is consecutive that, We our see traffic channel, across paid gains a And seen this in but seen in be now as we're yet iterating, significant two mentioned eventually gains get that of as all that process I so

are will that area into what expanding XXXX, conversion gains go the expand structured that's hopefully, of to of surface as As the and see just playbook we product we deeper our experiences. we will I our part experiences, been and footprint keep data has of look forward to and, – always iterating doing part continue think deeper

part, second on the on. going international On are I think two things there the side,

four business. catch-up. is two we've remember rolling that we And quarters, improvement seen The we in and In said quarters first out now this we'd last of would sequential begin that US seen some the we see international. the hadn't

we saw international. some saw in timing some equally, So, catchup But, we difference.

X Thanksgiving, there Korea same the in difference year but a which flattered slightly the because than longer ever will is significant, So, was before. declared points timing holiday a not this QX suppress holiday. QX Korean it's and quite

that's in our way we've our out and guidance. QX to got a quite of, factored So, work bit into

Scott Schenkel

in and a and Europe, also key Hey, Justin. he off lot the a emphasize business that. CXC of drove I would saw that add think we to increase data in the that, pieces I that Devin's remarks structured said larger

would attribute of attribute the improvements said in bit saw, that what Europe. to CXC I So, the a in that noted benefits we more Devin – totally and particularly echo we

Justin Post

you. Thank

Operator

you. Thank

Sachs. Goldman of Terry Heath from comes question next Our

Your question, please.

Heath Terry

in spend you've the felt that in up to obviously, push quarter how further We, you saw marketing the fuel Does much called you do getting rates Devin, that site rates can like more with growth. the increase in gotten for to that to conversion suggest and point that that you've looking marketing drive the thanks. that this you on out. could dollars? Great, accelerated invest you that about marketing talked the you're conversion the past, think you additional

Devin Wenig

Thanks, Heath.

that I conversion make where think at way I wanted. what I And, was want we we look that guess, product is said one gains. sure the to to is

that brand marketing pleased hadn't to didn't them not pretty to we're but was the we've that we want confuse what or by I particular an began – done with Before bring because where changed means, is any do people, rapidly. changing experience We're product. in on to gotten

anecdote couple I this And think was of by keep Those will. the in lot when our of a strictest things the structured right changes, ways, in mind authentication we've a price of we delivery, like pages to in them say When top my of of on and from data. search, you'll able to product quarters see space at lands you and holiday, structured ago sellers. that, guaranteed impact be that, of you many that, on. listings, group anchored look in many made recommendations image built factor definition wouldn't XX% that it It the traffic, for is data. are it it

holiday. It's we've sense. the a gains begun brand really ramp that where that with in and again So, marketing that, conversion. seeing way offering looking of quantitative pleased one at we're of because do this we'll pretty to And We're is. in

now our want and offer to markets. brand our because a You'll major very bring more differentiated new all experience inventory. compelling people in think to And of we've experience we got of differentiated see people more product on we – a marketing

of in we've strongest a long that, of we because that I been we're keep the think will one marketing. competitive very And So, that in positions time. in really

Heath Terry

you. thank Great,

Operator

you. Thank

next BMO question of comes Salmon from Capital Markets. Our Dan

please. question Your

Daniel Salmon

Devin, more everyone. promoted Good speak listings. a you could little about bit afternoon,

ad nice firstly early second, Sounds of in And was quarter contributor be that. very to countries, not optimization. ad this like to and still would number rollout units any just on in to a then more and sellers. total certain days load, thoughts I available, it that seems on but interested opportunities more

to think up I over type a fourth about further or potentially down fifth the them Curious in kept slot. results those how moving time. think you you've listings little of Thanks.

Devin Wenig

it. this said think I've us for early really before, a As I in significant phases the is we opportunity and of are

site advertising as my a dramatic is small that the this So, it's first-party the in the And ramp do. our and healthier remarks, to that mentioned contributor going small. is number taking we've point base We for we rapid, to scene me said reason still growth think operating were that off much ecosystem. set that's you at of let by a third-party I ads we the results that just off it's which reminding but the we're our a we've are as revenue, on we had our not

a that's to we'll this So, at begun not the lot period where them for when surface you just because on of look both ads is an next, we've the plan, that of doing which ads. and across part time. at MS&O go of we think point, I we promoted keep moving side. revenue, as That's XP that, listings. it's do our take buyer ramp area And seller with we XP is awful look this but the

but plus sellers which we have So, using million great, we've sellers. got XX is XXX,XXX it,

and to is all new fully on it's yet. classes the we'll of seller up that up more So, think opened to significantly side we it actually It's sellers a not open relevant product to sellers.

result you'll or slots, but conversion page, those I user open see To move should. ads there's depending off to they gain vision where forward. to the the mobile up be machines look, it made, on problem classes roll a be In based we'll is placing first-party our of XXXX the so every problem we is we're machine-learning best might pixel and view slots slots as that to ultimate dynamically a that is think your words, none, be and what So, machines. the think SRP, sellers we'll on buyer all of and that fixed about should, question are for it This desktops. side, ads is we'll the wherever placing that there in this the devices query. move idea they eight our new fixed not on other scale this monetizing is might side scale. and this a the This of I search at that on landing those wherever And AI

Daniel Salmon

you. thank Great,

Operator

you. Thank

Our comes next JP of Anmuth Douglas from question Morgan.

Your line open. is

Douglas Anmuth

Great. Thanks for taking the question.

StubHub. just FX-neutral I more that pointed I you you circle XQ to just was and First, think XQ? short-term up Devin, to in made for wanted revenue some changes Is else won't thanks. there comment that hoping be just X% you'll could you're more the a Is XQ. at there? the what's bit pressure anything there the make back and to growth on something given outlook know explain thinking little that times Korea the bring I growth you there of outlook. linear happening just results. did about always could and I that

Scott Schenkel

equal, the days that quarter-over-quarter Korea, vacation excluding in in first look as – our strategy, put I out of Clearly, the Dough, a guidance factored than things. expectations QX revenue lapping from holiday to bit Specific is things first-party accelerate, my around did as listings. to roll The just StubHub. face near-term three those we to of more X%, GMV into marketplaces, to and well to year-over-year quarter-over-quarter as into would have we expect, total best in as remarks. is capabilities, with we ad that's declared your was Korea, into your those we some head of of our or below guidance excluding provide as I However, Scott. we called little and first-party that the FX-neutral to the forward. QX, to point are we've that pressure we going else I that, as Korea, prepared X% was business pressure All extended change and out. had headwind I'll in so conversation And nearly degree right? the this we ten called our context core StubHub listings question, results.

And so, as growth into dynamics. we the that as QX are will well. pressure head Those underlying

gave the elsewhere. guidance little bit And of year. we overall, well So, that goodness beginning in the within marketplaces, pressure story, think, the a of the in I at

Douglas Anmuth

Thanks, Scott. Okay.

Scott Schenkel

Yep.

Operator

Thank you.

question comes next May Citi. Our from of Mark

is line open. Your

Mark May

guess, in There shown Thanks. of overall continues earlier the product is going how forward, your actually, question last thinking up. in that in we the especially some kind about is, year, out touched strategy, a think question maybe rate and not but marketplace sales into was improve. pretty should on and marketing. marketing looking as that? nice to next sustainable you've just But QX, And two year that I be is quarters, leverage your take I the how this

and there I think in rates, as continue especially around can that marketplace comps year, more advertising. part how of in advertising is the should we to we take be Can the should next hit – to thinking US, about talk the you against we I continue how difficult to the up the in changes we Thanks. start – would are rise? we question cycle there be guess, early about it? to expect

Scott Schenkel

Yeah.

basis structured Devin conversion earlier, out, as by likely the spending being time, clear our we're to actually that into at expect that First, able within nice think right? that sustainability, I well pretty over brand modestly we've we that the year, marketplaces point you offset back SEM go those to initiatives marketplaces platform as reallocation and XX% we're will marketing is at So, we'll made we've this I'd a our invest to data other on the expect that of marketing marketing point between to, productivity add platforms marketing, increase. that some pages. that been do on the business. point item, as over search line marketing this powered What actually as the been on with marketing engine we time, that, the to marketing, we're of

marketing better, spend that other we're modest to though, get item line items what as we brand to shows company, called we're leverage. for able the or in productivity the into spend But campaign. some that those we've forward. as for reallocate go with going still so, pay net-net, into those and try line costs out, And is and the And,

rates, with I'll underlying look take this the take we quarter flat some rate, On it's marketplaces relatively dynamics just out. at If in call there. transaction changing

prepared First on that off, the to but also that, really And A in have profitable growth amount of I that's that we to expense, out in only put as CXC as helped but drive basis on we're price invest you called the incentivization what that of not upward Europe fair at, called that fair forward. increase did a in marketing that amount was go my drive we we out, did take be pressure the able to growth. looking a rate remarks.

Operator

you. Thank

Our next of Bieber from comes Paul question Suisse line. Credit

open. is line Your

Paul Bieber

Hi. question. Thank you taking for my

your initiatives I mode. becoming the cement categories, more is have the been strong to parts which categories you're in and One of of categories auto health of that in historically characterize for very your those and you was eBay. competitive competitors specific fashion the larger categories competitive just some hoping could doing those

Devin Wenig

things. I'd couple say of a

the and open months hasn't it last all, a less at just the we competition I improved as yet this times, thousand look you'd steadily I performance competitive, And about competition get aperture a we've year, XX of overall, So, the and look the say little if first gotten at just of question business. imagine.

I differentiated we marching including in building we've in on in many what both question in rate we're Spring fashion, growth in questions dive a thousand mentioned categories. into in bring new plans it that very but And keeps on a had and our growth to Our we lightly, about and in it is parts fashion, say acceleration back don't market. brands if eBay I respect does competitive the of QX, competition. That but get aggressive partnership, parts take a a on normally to for things categories, quite look face specific saw parts so is categories, other we we both With doesn't what would up but accelerating mean your while fashion. both mean and on I as

differentiated for and retail our granted having that. things But our bit. company a take we're don't global total about share we're way, building meaningful doing competition I of doing one own that are and own So, the

Paul Bieber

thank you. Okay,

Operator

you. Thank

Sheridan Our next of UBS. question Eric from comes

is line Your open.

Eric Sheridan

Maybe wanted bit six as quarters, we two to onboard group the I user four the a One, what look on the platform. the users, to of Thanks are over on how users, can. you've I of users color back maybe geolocation for compounding last know, so spending, been the on little much. those if to to key over they're categories

that take a And of category would driving the NFL or as it color so the So, or headwinds you and you can GMV a the such any what's rate on StubHub, call color StubHub, growth. is there little second, related. Thanks specific us are are headwinds the related on the on is much. users then who whether give

Scott Schenkel

Yeah, I'll one. take the active buyer

rolling a growth see we XX-month is a well off, the out, it's really buyers, talked versus rolling Devin underlying larger SEO remember, see at year a the as new that, talk we retention you – and we starting called metric, based that. those quarter. to underlying impacting as last – improved ecosystem larger dynamics buyer experiences about active look marketplace roll some some that, If modestly we're basis. as new was acquisition. as accelerated this product the metric. into first what but on is in about business X% XX-month our SEM, stable, Also, rates experiences And, And are out the our when the

been then, engines, those talking progress making about you want Devin, And StubHub. offsetting the to improvements a StubHub. them As But I people we've forward. as the some look to updating marketplaces first in modest and we deceleration we search think as we'll more we're search we they're for in talk about, way. go is able on keep attract meaningful that had at

Devin Wenig

the totally that actually, Yeah. StubHub, which I it's control, which teams, And look, was landscape. of tough was events. year QX its is two half of historically not StubHub events-lapping last On before, we've this way second that One, mentioned a last got things are the are on very breaking year. things think concerts, we've dependent going quite – and lineup there good out year on. are is

what So, the – that's is is landscape. of factor it event a given it just

advocate positioning One we restrict looking business landscape for of competitors I'd need and position more to thing in an in event business are always think we to fans. due certain and, it's lapping fighting out believe We've ticket and the landscape. part, to it's, is that But amazing a to want the markets. also access ticket an we changing winner that mention terrible We'll point in keep landscape markets, evolving in part, and that it's open evolving say have course. amazing restrict for to to StubHub landscape. still ticket for I StubHub an us be There open However, an is, ticket that's an markets. we supply, in be areas, and been will about

Operator

Thank you.

Our comes from Ross of next Sandler Barclays. question

Your line is open.

Ross Sandler

got I've two questions. Great.

margins. comment follow first, active a then up The on on the operating and buyer one

– prior current that just the compares color XQ came channel quarters? So, you any pretty growth than margins, in can and faster active SEM talk year-over-year. how quarter to And same, growing of couple is you in buyer operating quarters? about last And around the and flattish the then, maybe on the SEO

to lap year? flattish to margin that do guided feel a this consistent, next at stable as Korea be some changes we're actually you forward impact the for looking normalized year, improvement started You've XQ. operating the accounting COGs you like that earlier fairly for Thanks.

Scott Schenkel

A Yeah. things. of couple

getting underlying aren't shift out. different I underlying the three, On see is laid dynamics out would which better StubHub that the modestly just don't SEO and think getting really is a massive say I that on that I the trailing better, the of that trailing in three back structured pressurizing. retention I I different, would call significantly or data that

the pressure, points, year-over-year. you of to was was hold as profile, XX margin that flat. foreign-exchange productivity rightly the called basis On roughly some sort out, offset There margin flat we margin with

feel And more called that. QX you out, we is as kind the about good of so, same. And

although to income – changes, of XXXX XXX, the as you look accounting don't changes and expenses we – this underlying Specific ASC margin out. the to number change. As to as calculation, on revenue, the early next that may – bit finalize the we too other certainly, call an forward. the and update margin of accounting XXXX into dynamics, to that underlying operating then into the the we you the a for give it's change quarter, outlook moving is million $XXX course operating year, some change go economics we'll don't going in I margin And over dynamics as rates mentioned, was I

Operator

you. Thank

Fargo Sena comes question Wells Securities. from next Ken Our of

Your please. question

Kenneth Sena

you growth Can if CXC say you then, there. to rate just on talk about a any you. gap more at the other similar one look pockets appetite as Maybe noticing versus little the program, you anything of you. terms maybe up BXC final, in other Thank expand bit GMV just Korea, that your the based Thank drivers your geographically? of or of a And strength can learnings you're to the in in terms maybe maybe XP about growth geographies? program would, there, categories the you

Devin Wenig

CXC. take So, BXC Ken, – let and me I'll take

is a things at There's called we a actually a six of – changed. few nice things points that quarter-over-quarter. First off, X% out, as CXC acceleration, couple

our users mobile. take flow particularly And as listing large particularly a to results positive. click. leverages the but, to of that continue sellers our a we item which we're to price one to rates, across catalog, markets. those First been their that obviously, it And talked simplified price incentives our recommendations, with expand the And multiple for and have about in incentives on Europe. amount in to consumers work roll starting we allows relates update we've guarantee, launched off, I the did that

But CXC I some we we this about out called like out. the we've influenced Korea that we able also we've animal. of I been primarily of and been select call And a Korea And season. call internationally, UK feel pricing in is drive changes quarter. and has and it and experimenting, a done we've recruit Korea strength, a our the almost business It's where last terms buyers Korea Korea, of. very party, Europe in bit And consumables offer think so, activity the first new a all continued product And BXC that we've on to It's quarter-over-quarter. to out. specific base there's different with would program in that particularly little new upwards. little active GMV bit buyer expanding talked speak to is new that

mean have we else, out don't continues, wouldn't. plans as any that roll And that to currently so, that doesn't we that anywhere but

the we we're as as pretty making now, process right And can. well well. so, And it's work growing of in Korea

Kenneth Sena

Thank you much. very

Operator

Thank you.

JMP Securities. Our of from next question Ron comes Josey

Your line is open.

Ronald Josey

follow-up question. growth year, your said real quickly for was be disruption structured the to Thanks I And, rollout in Last question I taking Devin, Doug's linear. earlier data changes to always delayed Great. wanted the season. the just in holiday comments on of some the think XQ. to product won't minimize

planned? price amount products think meaning not your around I and plan, being is to really marketing you for launching question, And new the putting changed Given as that launch, eBay on of structured comments part just fair the and word has specifically you delivery, of product relatively, how around else talk can but match, the the to that's you. out reason much? about Thank out guaranteed everything changes you're plan linear, as so knew to data search, second group the just get listings, homepage plan. marketing, marketing image about the that a

Devin Wenig

do first think we way. continues. moment. will directly continued and steady not a always hockey and question, to about going there's The And improvement it We trend underlying other said, has part that been but are stick impacting think mentioned continued of we've but continue QX I look, This the the there Scott dynamics. that are factors as expect improvement, one-time that,

So, QX think that's the I dynamic.

a we're That the side, are. foundation week in coming where of marketing, right? On a time, with as are data. structured on it's response. the happy in keeps now really, this for the late into – but we're I'll And, remind ago. We're early first really ultimately, how the campaign. a other markets I doesn't US on that around really built invoking and we we're innovation happy just is. think product with we're about June as done, seeing pace good it's sustained you the place mean We brand product started

most own works, that really my that's and philosophy joins it, we're what and the look, the But in to making better. of we're first is going They brand great think cycle. important I going the product eBay us. And time. it, why We're find people sellers. but Ultimately, If customer marketing out brand. So, a experience a do. we're marketing keep is the and long that's experience. for are the It's inning brands take the they'll matters buyers thing about to

leverage second number keep the one that the that of experience, evolving keep you'll then, nail it. our more to it in both to the those. making – to And QX. use marketing priority great, and people see is, customer bring And is me site we're doing of So, new

Selim Freiha

question. more one take we'll Operator,

Operator

Yes, sir. comes of Walmsley Bank. question Final Deutsche Lloyd from

open. line Your is

Lloyd Walmsley

Thanks the for question.

you in changing guys if help give us partnerships retail and particular. Spring brands of to them environment You adapt about talked a bit in with we partnering us new And deals what deal, structured then, some may you sense on of there. more might any should the a make of color to kind whether can that like Wondering benefit give expect this kind the if platform, how on of data that? the top can sense more intersection categories, from different make should also sense

Devin Wenig

We're opportunistic The on may. depending bringing differentiated inventory marketplace. be on the to short And we'll the very answer is they Thanks. focused category.

is finding brands. I'd activity Sotheby's. help out us but – at So, that it. also if partnership that, not been Spring, then to and to year, others does outreach did a months. point direct partnership where can We've with the art the look We a most marketplace over of at look in there've done a through our with certainly we'll others But that's XX I way partnership. it its inventory last

going changed big retail XX the there's to they months. and or even for the be where have who their they're retail, to last going And look the brands deconstruction portals They with – and over when at think at has looking be to one world lot about I the sell looking is in omni-channel be of digital a us. think we'd they going a to channels. in of yet themselves we're years at them. in are couple three think I have that And evolving Brands confidence physical landscape. rapidly a of dialogue don't

very So, frankly, And It's we approaching conversation that's a brands I – different ago. having and conversation. a had tough on now think time that a about selling eBay very a year great.

customers we that around There to think brands be in will stay also to on order. brands cost-effective the channel so reach just I XXX should that. for a And million short more very say about or be world. say our tuned I'd with approach

Lloyd Walmsley

you. Thank

Operator

gentlemen, and you. this participation Thank for today's conference. wonderful your day. Ladies and you have concludes a Thank

eBay (EBAY) 18 Oct 172017 Q3 Earnings call transcript