EBAY - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and welcome to eBay's First Quarter 2018 Earnings Conference 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 provided at that time.

As a reminder, this conference is being recorded. I'd now like to introduce your host for today's conference, eBay's Vice President of Investor Relations, Selim Freiha. ahead. go Please

Selim Freiha

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

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

the our news You Investor company for website Relations latest visit updates. and can

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

remind this related will during I'd Before that the you begin, performance. our to some of course discuss like we we call, non-GAAP to conference measures

measures accompanying the GAAP slide the You can in measures of presentation comparable nearest to conference reconciliation the call. this find these

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

from in variety those reasons. this discussed call actual a Our of may differ for materially results

Investor our XX-K Form may website website subsequent copies at affect or that SEC's at uncertainties risks, Report quarterly reports company's sec.gov. by on You investors.ebayinc.com which Relations our Form information and and can about Annual more operating of obtained the in results recent factors visiting the could most be XX-Q, on other find

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Devin Wenig

we to were our Thanks, QX, X% X% revenue buyers our In active million. grew on and and expectations. Classified Selim. while GMV were Good Marketplace X% good at X%. while growing Marketplace line revenue afternoon. XXX in up results platform Total XX% with delivered with X% revenue GMV platforms at StubHub GMV grew and U.S. GMV grew grew at that international volume XX%. at platforms grew

Japan, announced our returned $X of acquisition through world. our Giosis presence markets in shareholders one the in of the and share Finally, expanding billion the we we to our e-commerce recently repurchase program largest

product best in scaling As extensive to In we're build focused payment the launching eBay. consistently an the delivering ongoing selling progress areas. we and communicated, also made work and, while capabilities recently, includes new to I intermediation these QX, a choice, build sharpening finding experiences our relevance on powerful of This brand. on have most and each more platform catalog, beginning

examples. some share me Let

begun and now money sellers product catalog-level search and majority consumer to Over the being able list relying product their business to both pages catalog. of save browse we SEO on and We've our time to and selling, use new catalog past attributes land using promote on to paid year, the with to moved and our traffic simplify also our by inventory.

experience expand In in organic to search an to result. This product-based step number buyers are roll of subset on plan QX, experiences moving material traffic, now efforts to is on product-based of over a also scaling driving the conversion. a next for eBay's kitchen important on as search landing and Guaranteed our a this We'll inventory focus the first focusing product-driven towards We're effort as new will GMV simplify in began amount better time. advantages. of we we a higher iPhones, our directly continue such commerce months our over highlight appliances. believe this we specific products, U.S. as Delivery with out to six a QX. Users searching TVs services well a the iPads, launching products full quarter, more launched and to This this Authentication experience natural We and price

but recently across positive we sellers simpler currently This number including who small markets. non-authenticated label and the in existing more Seller advertising our will saw sellers, sales. activations high movement on campaign a a to of some be address Authentication advantages of area sellers you number we're is Conversion ongoing seeing and programs, behavior seller eBay of time, perception the explain purchases. with and luxury guidance, on Changing QX. increased Spring early program, authenticated inventory, proposition, validation With European many streamlined early takes which see is protection. our improved value our importance brand helpful several major are value a using QX. and Guaranteed directly expansion is QX, significant purchase makes returns in this In metrics expanded inventory satisfaction experience, a our And which inventory which policy key placed Delivery XX investment the quarter, Guarantee scores. only significant With we consideration million us and what We highlights are Delivery invited the from over Update, We enhanced price in sizable twice and announced define increases Brand for eBay similar into high clearly of included have markets evolve consumer a to to seeing improvements price Guaranteed unique. guidepost. trust a shipping to a to continues on for category. U.S., items live that increase into the Delivery, buyer frequency watch buyers

We with our Listings focused of also advertising program which is sellers. expanded on launch Promoted Lite, the first-party smaller

million advertised to items get in growth. sellers the Promoted continue with XXX% Listings than XXX more XXX,XXX We quarter, where significant driving year-on-year revenue traction nearly

while be payments agreement definitive steps intermediated QX the in go-to-market also product finalizing laid PayPal the taking opportunity made with in progress Finally, out that build we deliver commercial plans to We our January. excellent and payment, of on we're our summer test into this others, among then market we'll beta intermediated learn launch and our We'll an to and employee initial further an in where learnings experience. form incorporate new payments iterate. a

Football sellers to very grow intermediating our we process, penetration, hiring recently a received year. by good efficient new We small economics market President. of Singh of and expect Cassidy demand. the who announced more this better performance, driven quarter, X% start feedback to payment see and building strong as Super strong GMV a growth, North Playoff Sukhinder potential increased We've up and the advantage College StubHub America a record had international Bowl in of positive buyer from StubHub's and towards

platform emerging Classified quarter growth markets. of Kleinanzeigen good delivered double-digit and in eBay in Our growth our another continued with strong performance

between Gumtree. our to nearly expect eBay continue eBay synergy we UK, this which GMV also We're listings a meaningful drive year. QX, And platforms. launched offering of on in Motors Motors combines We deliver $XXX to new Classifieds, in we growing million and dealers for the which

markets mentioned in Japan, in a earlier, Finally, presence deal of e-commerce expand our as largest one the the announced we world. to recently I

progress, we over our the market we be access Japanese will eBay's and improving export double-digit continue In broaden platform, with a growth with combined offer make With $X dynamic, while we presence able acquisition, a inventory of e-commerce our a with eBay large will this opportunity. strong market more the consumers business, to strong of annually acquisition underpenetrated summary, leading global billion existing results. and Giosis that have Japanese to a to now Through potential. in Japan, experience delivering GMV customer strong generates operating business

start was the in but year, on As our and be commitment. we're to I've our good full indicated improvement always to a previously, this ability won't year deliver linear, QX confident

details over let he'll Scott outlook. our results turn Now our and more it me quarterly on and to provide

Scott Schenkel

Thanks, Devin.

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

Moving impact to and platform. some near-term Korea, our related QX. of in on on Korea lapping pressure in to was mobile the In QX buyer made, eBay a tranches. driven deceleration ongoing holiday. deceleration in ASP are first-time low trailing slide was from who extended some The X% the couple buyer year-over-year, eBay guest X, we active headwinds buy platform, In increases buyers our in quarter, core checkout active by the growth buyers to addition core improvements past on quarters one-point from XX-month seen we have versus growth we over

active Under initiatives, us we buyers $XX reverse this trend to focus a of working important including in to as QX. buyer both up By an launched advertising many $XX.X Growing brand actively that are and, such active our X%. while sites our growth of we and drive our micro number term. the We efforts, of international enabled remains new geography, as expect, for more GMV, experiences over QX, slide growing of U.S. of in GMV, delivered billion the On $X.X X, X%. $XX.X we billion generated billion user GMV, long through

prior billion, the of we of acceleration trends, revenue Diving a billion, at Other revenue, up with Listings on spending segments and Promoted Transaction X%, $X Transaction international prior delivered by bit X% up point platform Other X%. revenues Marketing Marketplace was to seller extended in We versus net the in quarter. one-point to these while Marketplace revenue Listings. one and respectively. U.S. CXC in & deeper recognized Promoted $XXX X%, of of after net Services roughly the GMV contributing X%, $X.X consumer Marketing grew and slide prior versus & revenues, QX lower Services Moving QX the billion growth. X%, than up quarter. million grew offset our Korea GMV UK. $X.X is X%, Underlying up quarter. generated X%, stable X%, versus offset BXC transaction one maintained by revenue, revenue, grew grew our slightly and hedging QX. accelerating year-over-year by the a incentives take revenue softer grew growth, rate higher point activity X%, driven due into reduced growth acceleration Total X% X, holiday,

our Germany. QX, The our headwinds by by lower and including a record with by was international in volume, slide Super slide QX in some grew to traffic ongoing in grew Classifieds GMV MS&O Motors price On event a increases revenue driven driven landscape, rate. lapping by shifts slightly platforms advertising healthy X%, offset grew and versus revenue XX%, Bowl driven deceleration as lower to strength XX%, revenue StubHub and XX, display growth. take in Moving three-point Classifieds a mobile devices. StubHub accelerating vertical X,

versus points XX up QX, of basis margin and increased in drivers, major slide sales last to XX.X%, basis primarily product driven operating and includes and by cost year, which in and foreign non-GAAP exchange XX drag in sales marketing Turning marketing. development. down point was showing investments This delivered a we from XXX

seller our sales XX and We are dialing offset as we decreased spend promotional year-over-year in a reported marketing in up this points. growth expense marketing due the incentives heavier site revenue As In quarter. now shift promotions operating customer program buyer-facing that of and spending. our operations. channels. first-party savings Cost our driven new continually as revenue while and XXX basis sales service was the of revenue. marketing in expense, reminder, now marketing QX, margin recorded buyer by contra impact between back QX includes and standard inventory Korea that mix are of expense were and various adopted than on to Investments our and brand spent by incentives basis and more points, manage

heavily product all were across continued year-over-year accessories brand more in focused in in invest AI parts including and of through platforms, was development our G&A We operating invest and up and to XX points also Product to as on intermediation. our investment global costs this basis continued payment fashion advertising, quarter campaigns. down we leverage. experiences

share of EPS a X%. quarter $X.XX was growth we of $X.XX and EPS EPS offset by net higher non-GAAP versus EPS, $X.XX. on delivered of up the growth slide driven year for to QX, XX, repurchases, the in GAAP by tax the rate. prior was Turning benefit operational

tax As a benefit year income reminder, the non-cash restructuring. million of legal related to prior our included $XXX GAAP entity a

flow, slide always, our which On QX, measures a This the tax increase million of of detailed release XX%. cash non-GAAP earnings As timing of $XXX slight payments press this reconciliation in financial presentation. to we can you GAAP driven and CapEx and primarily in a generated down quarter. in by was XX, find is free

of the $X.X and quarter non-equity cash ended slide we investments billion. with XX, equivalents Turning to cash,

executed the quarter approximately price During QX, amounting ongoing repurchase $XXX $X.X of shares in the for returns repurchased We share part In of $X.X of and $X with $X.X meaningful the we repurchase line $XXX are our agreement. of commitment to inclusive average shareholders, repurchases, an These return capital a a billion our share quarter, we actions $XX.XX to next total million in share as QX, of year offset. of was per repaid, provide our our total. reducing matured million new of billion over the form remaining. billion. million In accelerated billion debt at commitment to XX.X ended two share, in years authorization dilution with debt

further Now clarify thinking build payments I'd about comments how about like the we're to on and opportunity. Devin's

when platform and selling rate. of estimate more expand ends will that of PayPal Marketplace migration transitioned begins in to eBay We through via revenue all-in agreement incremental majority As take on lower the in XXXX. the the I operating scales once we than intermediated an assume a reduce includes to $X with expectation the a cost discussed steps volume of that take annualized mid-XXXX schedule we to core billion, This the expect has our January, model. of

$X.X incremental our payment also of We billion scale, chosen buyers. expect of method capture operating by the will approximately we which profit at regardless

we improving product are customer our mentioned, payments Devin investing As intermediated related to and experience. to actively build capabilities the and

XXXX. range remains increase $X.XX of the although $X.XX in to level time, in investment expect EPS the this We of to over amount of

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

growth by repurchase foreign $X.XX revenue be on We benefit share $X.XX to of and the EPS expect will of to an program non-GAAP growth, XX% up EPS per share, our reported driven net XX% as exchange. basis.

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

from unchanged full remains Our year non-GAAP January. guidance

on revenue from our for This growing X% platform. to basis. billion, imply we reminder, guidance midpoint continues year, to point range an $XX.X of acceleration the a a As the X% expect $XX.X to of in billion the at Marketplace FX-Neutral

We expect $X.XX rate non-GAAP non-GAAP and and operating $X.XX and a share. XX% margin of per to XX% tax XX% XX% EPS effective to of between

be cash X% intangibles CapEx EPS, flow billion $X.XX to continue EPS $X.X the by tax we revenue Full to per drivers to remains at to Additionally, of of expect projected to X% year billion. GAAP free $X.X also and share. deferred as the EPS liabilities. the stock-based amortization GAAP impacted and compensation $X.XX to assets and of same addition is non-GAAP in amortization unchanged, of

remainder provide to the context outlook the additional like I'd some Now on our for year. of

February, As with Japan the footprint announced excited are business. to expand in eBay's Giosis we acquisition the of in Japan

expect full not next The year included this has We the guidance. impact in current been close to weeks. few in our transaction

all QX non-GAAP we revenue expect guidance, equal. else the However, to acquisition non-GAAP to modestly this to within accretive dilutive of and EPS, ranges our be full but year and

not guidance. reflected We in Giosis also recognize our to gain our EPS in one-time investment to original GAAP expect related a GAAP

GDPR, We deepen been goes on the data to teams and Data to May and EU opportunity processes ensure embrace been update our effect also systems have for our or into have Protection to Regulation, policy, demonstrate General XX. compliant. commitment that that working are our we and preparing this We to privacy,

and We our with to shared been revenue also understand advertising any requirements streams. working our to future implications have partners

to experiences. is product-based drive to by on impact monitor these to our currently our will area and continuing up summary, assuming year result through ramping our continue but campaign will outlook We of brand any through material increase the are an the a that experiences to traffic accelerating work, of implementation. not our GMV to remainder this be focus In as we

While that acceleration path growth capital be we always shareholders. right we the returns linear, strong not are delivering and believe to continued on Marketplace perfectly growth platform may while our profitable to

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

Operator

you. Thank

first comes with Our UBS. Sheridan question Eric from

now line open. is Your

If your mute, unmute? please line one is Sheridan? you can Mr.

Devin Wenig

Let's move the next. to

Operator

Yes, sir.

Sandler Ross Barclays. with comes question from next Our

open. now Your line is

Deepak Mathivanan

thanks is for guys, questions. Two Hey, Deepak taking question. for This on Ross. the

experience benefit think there's about we full you're should to conversion can talk either compared you growth discussion rollout the migrated more experience? the And U.S. from shipping of How traffic talk product-centric about a terms China the the any? to then of GMV lot improvements as prior you First, from that recently about experience? about a on in of enables is ePacket sellers, if shopping seeing drop to second Can GMV program the to question, search product-based exposure or Thanks.

Devin Wenig

Hi. Thanks for the question.

is, years. guess, been in in journey and data rollout structured the aggregate, just as the the edge uniform that last experiences. first, I'd an to the The aggregate, ongoing not everywhere of this what say we've has seen, in two conversion at both I been moved pickups We've the the for at world. we've On is

you on core have we not by at be where if out even that happen differences eBay with I'd would rolling we're pleased getting edge. the out We in experience but the it wouldn't gains. we includes, That are. country. We country obviously some in and conversion say if SEO look out only search, weren't

two to say years, we been experiences growth and direct seen have that. think and the months the brand rolled I with continue can process over You continue new in to we've from us linear, continue expected to I XX there, roll other whole balance to bunch to start out and to I'd year. of the throughout It's And learn. we're and QX us of said, our contributors are expect products in pretty search. approach, categories to that It's moving pleased test where a the we'll be, to but we that rolling product-based the widen. And will this into last and acceleration results. out catalog-based the the of with we expect continual not a we've as that

Scott Schenkel

question the sellers our on didn't don't we've capability your pretty Chinese working for on fast material China been warehouses is in markets over outsourced I'd a that sellers that QX, reason the and say shipping last the to well and provide providers coordinated really it I with help ePacket, we've had several our really it Deepak, in position did inventory years into think country. export to impact.

that's clearly, of it so And I net-net a don't think impact. while, lot a had pressure,

Operator

you. Thank

question next from May with Citi. Our comes Mark

right, now can May, Your unmute? All line is move we'll Brian mute, Jefferies. to you your Mr. open. line on please Fitzgerald is if from on

is line now Your open.

Brian P. Fitzgerald

been Walmart and then couple of in A investment very your potential this color a on deal their There Flipkart. your partnership And would media there? guys. of Thanks, How is questions. with Walmart of attention terms a investment lot from again notion and has impact your in topical Any Flipkart? relationship GDPR.

it you've diligent more frantic you're doing had them issues handholding a systems thinking Or to And industry, been helping and the feel you talked guys understanding like a been You doing dealing for your about But ready partners have your you're do multiple at so GDPR their also? readiness, of your it with as you level these years to on and quarters and advertising they cadence? for advertisers whole for data is characterize own and approach own more very quicker, as and this? the if too. work whole,

Devin Wenig

year. Flipkart, reiterate with is we the what for I'll just comment question. is, investment won't take made them. I Yeah, on Flipkart what thanks our Walmart relationship may not a last look, do. or meaningful which may or I'll speculate On

that makes importer be other like to or on but any with with We'll feel because exporter evolve, how not Marketplace. won't Flipkart exclusive relationship this commercial quite is goods roughly left happy that that exclusive On GDPR. a on partnership. We're ready while. we're and an the run, not I Flipkart and wait that comment happening for to that of or both party has the we're relationship years been parties. we may for We've see three have us We and things a may GDPR, conversations working a

we're in and partners to partners those waiting advertising see have We how comply.

about of still matter and don't feel have, less of it's and we matter are. compliance I they that's evolving. or where a think But requirements it's perhaps have what I good really a

regulatory and watching I very the and Our everybody know readiness, is it industry compliance our in we'll watch carefully. it,

Brian P. Fitzgerald

Great. Thanks, Devin.

Operator

Thank you.

Our with Ju next Suisse. from question Credit Stephen comes

in Ju the point area now at is Suisse Japanese I Securities history. D. could know open. you where slightly looks any Your LLC Steve - market Credit Devin, line but the entered rearview an in the this have Okay. has mirror, company's (USA) been

the from So why supply perhaps consumer the the acquire time can it demand? now Chinese Korea Thanks. into to was the operations? And Giosis secondarily, opportunity Japan right about to and to both talk sell you source

Devin Wenig

really Good question. in Giosis this the Yeah, was time The investment excited about I'm had is for... reason we've thanks. acquisition. right an

Scott Schenkel

Since XXXX.

Devin Wenig

a at feel And XXXX. have And and they like business reaching we since been building. velocity. now, network are steadily Yeah, scale. effects they exit It's

I billion. Japanese to consistent of As lot Their been has part of question. feel and really your we're buyers, like the And mentioned, $X really we benefit have been and global a consistent. the supply, they And buyers. strong the growth growth they're now second has not of at getting yet had very particularly millennial

like we and point that to we can us. platform. time. the a They tipping it's a reaching felt this can and meaningful becoming they where benefit add think lot are help Giosis We of scale So high-growth is

broad do seller our we'll the is the base, supply that first like to nice which smaller take complement consumers. Japanese world Japanese So thing and export inventory a we'll and it of for the we'll around all Marketplaces of do. base Japan our global that will been have And they bring all of eBay's exporting, into benefit has we

my hope So Securities market. you. Thank to (USA) excited. I'm Japan's really XX-year a and Credit history, really Ju D. agree will, - now been this. by you, is It it we're with for been excited really large Steve I is eBay its LLC not and meaningful And Suisse

Operator

Thank you.

from Our Terry Heath comes Sachs. Goldman next from question

line open. Your is now

Heath Terry

that give or you seeing then FX and the you business a growth, I see fluctuations GMV. Wondering us guess, Thanks. investment a just that as basis, your of extent saw against impacting to this with quarter bit quarter basis much, revenue your consider how can year-over-year that headwind would the either in the as how GMV cross-border that we from longer-term in this if to a of FX-Neutral you Great. are benefit growth you're the a benefit on a FX sense And versus from? look investments deleverage benefits marketing sort XXX in at the may quarter up in a little points you we Devin, in that of on see in future we saw over and that sales sort quarters marketing,

Devin Wenig

Thanks, Heath. I appreciate it.

part question have on meaningful think to when FX, does add first the mean, I all that? it it The I out, net the really anything think you is impact. don't do – Scott, just I you flows want on a it doesn't does. Generally,

Scott Schenkel

way I'd there's to Heath, going characterize complexities. intra-corridor The always it, be

weakens, corridor UK better. little bit gets the out of export the So, the as pound a

to the what's we out corridors that terms the (XX:XX) but would particularly eye the looking a quarters, where meaningful weakens, that as those look out, close there it have keep maximize As of it on really impact in in a of be bit ago, this and, might as prior dollar in didn't I particularly think and for frankly, out it a exports quite little or Look, better quarter, I weakness specific two of gets vice the has it call sites U.S. they're available a currency. versa. on year

Devin Wenig

marketing brand. glad are. and about Yeah. Heath, I'm being your on we're we aggressive And, part the second of question,

now now were many of mind it marketing since out – that promotions all, in keep things the in of that and trying accounting both adopted we've line new standards. First are we're the

product payoff on time takes to we do. what long of And but a close do would always it's it because there's a world, all, keep to and consider time, us And large, brand We've more should that signs. eBay is the inventory. on in evolving think consideration people on great that First going one it the great we that but there's brand, because of opportunity said this we're keep a top don't on. some don't consumer and keep seeing brands campaign. they the take be that to think the the going know gap. We're and shopping early with we're There just we big is

So glad that. to hard that gap. we're to that time, takes we're work doing It really I'm but going close

second The lot that a experimenting is promotions, of and things. line, we're component now activity and in promotional different is with

we evolving, product feel we're better getting that But aggressive consumers with being promotions, we that We experience getting. the our and we're Now are like conversion. that always is We're our experimental disciplined. our and quarter, promotions keep QX happy that were quarter, this the general, in did like and with we saw done what in haven't with before, experimenting some and that. U.S. we we'll last we

drive right our where our expense watch marketing just into we're carefully So, are. things and our not to brand. now, return we're investment, we growth, like happy leaning We with a always for barriers on but on future entry

Heath Terry

both. you, Thank Great.

Operator

you. Thank

question Mark Our May. from comes next

open. is line now Your

Mark A. May

Hi.

pricing, in that on and wonder NFL, question working changes believe to you a could inventory again. impacts if quality there's but the off the be on some impacts other one your expect StubHub. it And us with A that. business when the side, of you and inventory. kind season your think how kicks on there relationship some might about impact the about little I I end, to bit the Sorry I of on talk

maybe Thank Postal rates and exposure So changes, extent little for provides that also any I And think you net-net there postal to potential expecting? understand puts understand frame some us then if merchants, there. maybe – business, it you. rates to on Chinese the and that favorable of the relates there's to the changes Service as can just you kind help and help takes the the us bit us there impact help your are what a

Devin Wenig

thanks. Yeah,

market. I ticket or and to ago of two the integrate NFL, we deal that that ticketing. barcode teams now seamless with quarter secondary with their in the that we'll a so partners we the mobile be the signed in What think a scanning is one ticketing, can the mentioned means On NFL we have this NFL that

a and tickets real we'll positive. both That customer issues supply teams directly customer customer have lower So scanning. when high-quality NFL we we lower fully and customer great integrated that's mobile because support support have a means experience with see from and

the with So happy partner we're with a and to really NFL. be it's that, great

we going. with It's little ago, expenses to happy so for I still a be net revenue. all what we're partnered just really getting high-quality of fan return, Major because their giving of a said announced arrangement impact we're – through the the think at relationship the slightly integration, a that few to bit growth negative and slightly we how and share think, NFL great days a League the to little is experience similar league those time, we've where with it's Baseball, a up tickets. that. integrated believe, schedule, obviously we're I paying It's a I with the positive might and gauge early is we're a But is to and been and what similar in is that and this that supply have early

Scott Schenkel

out Yeah, in you're change, scheme on postal that a call is start question, cross border. I'd the when couple substantial no if the things. that postal of really rates Mark, looking things, your with corridor one greater fact of I look, would particularly But

to get their free of the sellers is that two U.S. continue there. possible volume shipping see to XX% two-thirds or best the to First in represent through we and rates what's in volume are and remember, roughly going out approximately off, days our And rates within arrives what – will two-thirds today, that USPS today, the three less.

continue work that. just so, on And we'll to

Operator

you. Thank

Robert with Our comes next question Colin Baird. from W. Sebastian

Your now line is open.

Colin Alan Sebastian

hoping in you infrastructure the I buyer a of the was need beta, about and I Thanks. expand payments, if part first then then first could and year. will Devin, of you the continue I or much how half terms the could already the was the hoping for place the a secondly, and year? rollout be bit the with talk the you. as through is promotions the follow-up of in (XX:XX) QX, guess, those in quarter new on through linearity beta Great. first, it will guess, the in iDEN for of And Thank on integration I to second

Scott Schenkel

as you different linearity, spend and know, marketing on marketing levers. question a we your to across Colin, number Hey, of

it of we drive now is back marketing when take going what within was that revenue you'll is, across market. incentives buyers the of advantage what's for week kind see on the relatively levers, you of expense, linear. you month, so all contra step in to within And that But those in

ecosystem We've buyers and in of marketing some that yeah, items started higher continue. base the for us to in to material expect jump there of ASP, were opportunity of to and be we'll March little instance, non-buyer more for bit our than have you the the to eBay lean to those And, that as you should coupons seen drive able and more on value buyer think bring saw and site. So, higher that number in out trying we been activate new quarters base that delay and this be GMV. in big our in drive signaling incentives incent to payments on to out in way, of kind that I active past, between you see the a tax in a and you've trying a brand a

Devin Wenig

we this integrated both, see as making cost that that on that great choice, on the buyers and this one second We're focused just experience. Colin, of part is more we new that's experience. the path number well as thing question, sellers sellers because have said as new, a as and me a selling before, go down your sure, our of lower to buyers very a is seamless important get

of The specifics of a kind of high your get one generality. will at is want pleased the to build on is in our eBay we to use and the the is is and for work product and a out ledger And for ledger then meaningful migration, we're is we're gate business is the we'll what fast. accounts with they're move pieces the don't actually money. a incredibly which really two the test technical, That see ledger, build pretty frontend value and the of It until which the the actually won't with rapidly, this. time. intermediation focused customers we'll payment is lot background. There's market I'm very there. obviously X% audience built One being On we we'll with are. into come driver take level will do. XXXX. frontend But really I'm in meaningful of The do that too a of where question, I It backend, ledger the pleased more but and but progress

Colin Alan Sebastian

you. Thank

Operator

Thank you.

Our JPMorgan. next question comes Anmuth with from Douglas

now is line Your open.

Dae K. Lee

recent just and those one think potentially platform. moving sellers sellers engaging on was platform how platform? how between the (XX:XX) I Dae forward? Hello. on eBay, of have think your with that going you on and taking for your Target Thanks (XX:XX) brand question. How you're balance do about for impact on Lee does out retail Doug. you do that on there This And about your line is a I believe the

Devin Wenig

big very are the for I've We're not acquisition. think every to said coming pleased on last I on that extremely focused retailers. focused rate particularly with almost we're brand the call Brands increasingly brands. on eBay. We're year-and-a-half of

get and I compete eBay years They multiple around landscape and few at-scale they're is they're very we at one few may world, alternatives, That's coming a the retail looking in and sellers. changing. the the in be eBay marketplaces to of is and unique. not think very their don't very with channels sales our rare from because that

was on not for our not is and now. rate. on or doesn't but not years So at it's coming That's growth. significant may, focus always There to partner eBay about have are medium-sized retailers retailer increasing and, That was very time and big eBay It of small ago, engine when and dependent been skeptical selling GMV focused of brands successfully big brands for about platform, retailers. us. on big here situationally quite we're an a that at now an coming sellers. our of frankly, we that our our are all wouldn't it's mean they We're with a area the there, been

Dae K. Lee

you. Thank it. Got

Operator

Thank you.

Sheridan next with Eric Our UBS. from comes question

now open. line is Your

Eric J. Sheridan

question. my taking for Thanks

own That's before. Sorry we problems business. One, advertising should next to that to number spend, couple your the one. about of where the as what might move little marketing And towards organic number a sellers deeper over in your Or tech what XXXX? evolution that thinking Is be in some you're out could going in own the it dollars traffic two, through P&L still? for we about of look go on wanted marketing changes of into terms that quarters stimulating the know XX priorities Thanks, willing rank on within we your your towards dollars? mean guys. and velocity buyers ecosystem it bit what of engage as own seeing come of Or is your marketing the over the business, if you've terms business, have the in last made we from advertising active your shopping are of months? for

Scott Schenkel

the that plus of now activate as thing output the think at call out (XX:XX) increase to expect, bring of as got I Yeah, our from the over we've in marketing I'd talked that buyers. it would look I have traffic, what a well to existing buyers broad bit up on is, Eric, the seeing improving expense. our as SEO I et of with And coupons And latter question, you will plus sense IM marketing today escalate as as time brand, cross-section we share calling. and you're show a of we to about, cetera, know, wallet levers initiatives, new buyer be think our first the we've continue mix in in

comment So know, XP? to I Devin, one back to if that on before want go we further any don't you

Devin Wenig

Look, marketers. disciplined Yeah. we're

are have new value. the we're lifetime buy marketing We customer And many our really positive and customer in philosophy. cohorts We marketing bring aggressively, we it trying our hasn't more them. but tools care measure We carefully. don't are of arsenal growth. that We changed overall a in there

just we're them we're not, spend, most we're it priorities and and you, Marketplace. remind happy are our But now which we've been I with, Xp. going of cohorts the is some to are business and growing them want just of advertising the said on a we're but first-party we there's up saw advertising be to you've healthy of for means evolving. journey existing some the Last is quarters. two us growth. advertising. never all our year XXX% scale, surely contributor think two was can we party, a we exciting to Marketplace but yet that repeat. volume, been, promote seller brand this acquiring customer would really we runway. got a items, advertising three that first always talked suspect reactivating eventually think doesn't and sellers growth. we've almost and we'll the business entirely evolve but quarter, we bleeding think out get base business, see on or our store to ago, journey has growing advertising, a been a of the This now. to out of which their try or there's of have of last you have because that of to We the a base on We show is into It third-party that significant starting grow this obviously where to we our We a basically that it third-party as third-party you'll and rapidly won't still about customer you're on slowly we moving Some really are advertising, down important marketing meaningful got On we a healthy promote you're had if you lots and through existing on year was A eBay or it

and on very, and of lot growth focused fast, business, there's very to room the underpenetrated, our we're grow is that. we're a Although first-party

things the we for driver of So the next it's this be a one business growth of think several that will years.

Eric J. Sheridan

Great. the Thanks for color.

Devin Wenig

more Operator, we'll take question. one

Operator

from the last Justin come sir. Bank Post and question will Ladies America. gentlemen, Yes, of with

open. now is line Your

Akshay Bhatia

are well. in tougher of X% some What the half? points the achieve of growth are XXX drivers high as the X% Bhatia for end full the on revenue came the the comps back quarter quarter, range year, we about Justin. basis When look to second as Akshay for in for is the at at it and the FX-Neutral, is guidance first This midpoint particularly X% Hi. growth, for

Scott Schenkel

from wouldn't further I of as expansion user anything as out expect and than we've our different call of our about we in happen what spoken Yeah, campaigns. already changes experience well terms brand to those

more anything it's call half highlight So second just you I different, in acceleration the wouldn't necessarily as out.

Akshay Bhatia

Great. Thanks.

Operator

very today's Ladies you your Have wonderful you. day. Thank a participation all that may you for and conference. much gentlemen, concludes disconnect. Thank and

eBay (EBAY) 25 Apr 182018 Q1 Earnings call transcript