EBAY - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen, and welcome to the eBay Q1 2019 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 follow at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Mr. of President Vice Billante, Investor Relations. Joe Mr. may you begin. Billante,

Joe Billante

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

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

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Devin Wenig

first before job returned by was at Thanks. and investors down and has quarter, which Freiha, buybacks grew through years, Scott active shortly. begin, QX, In into are StubHub Marketplace was share Underlying provide welcome was in X% these buyer let advertising last our to healthy X%, will cost solid great GMV of our volume noted been down and platform a business. over up XXX let grew just strong a financial short-term base down first-ever dividend on thank was we $X.X Joe. Selim and declined results our And detail revenue We publicly our total capital of more the the I go Investor X% platform our in done X%, some expectations, driven XX%. million. and with couple while To revenue disciplined payment. on results, billion Classifieds our context to delivered year-over-year, GMV on quarter. was GMV our X%, growth, me buyer our We as line who start, Relations last control. slightly Head me performance

reduce experiences positive buyer low mentioned and driving with intention we we that's year what quarter, was of significant this exactly a ROI. spend on while focus product change QX, The to amount growth. removed lower at the impact the We by that maintaining higher did. In As sold we lower average tended item driven but targeted last with marketing marketing. entered to GMV, the items priced price promotional subsidize steady low ROI of growth spend new

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pages at also beginning search launched is database conversion. that been making their an improving Sellers such and improving, experiences across is new improve guidance points coverage, more product registration as lead product Visual which multiple aspect better provided to process have it is structured accessible. product catalog, this search and deliver experience. expedited our We we’re and to our to

listing inventory. provided when data a Sellers make sellers enhancements to in delivery now series At exited to managing customers doing of eBay time, see we manage listings same side-by-side the expand buyers. provide to the pricing day searches a U.S. are Our QX, now XX% XXX,XXX their a we continues and as to value and visual or easier it our guaranteed to volume coverage competitive

recommendations Promoted also in We more on XX%. than improved would by Listings benefit QX which expanded and eligibility items, from seller most

on competing focus will of rates on success, maintaining while remain seller Going one the forward, our our take not them, most competitive with empowering in industry.

grow more to between growing, continue. growth than up Promoted million drive nearly Listings, revenue invest our XXX a driven likely opting of by business. partly and year-on-year, was slightly $XXX,XXX this QX, This had where This million their are is down sellers more XXX%. will is we GMV sellers gap over $XX the over revenue our GMV and While In promote active to helped listings. quarter, revenue

pleased reducing we’re to business with towards a third progress scales, track opportunity. this are billion $X our party on as and remain very previously, ads, ecosystem. mentioned not advertising revenue accretive We're which we've As our

at Looking payments.

in Google line Pay early experience. We volume continued with its and our in and launched our to sellers in expectations. is ramp April We adoption intermediated

in PayPal We the of of integration for customers also of Since will QX, saved new last active small we enabled XXX been into year end the sellers on over continue launch until has live our payment-related with and who've the program. $X.X weeks scaling. million set we've costs. couple the a X,XXX of opted platform, GMV completed now of which QX a To-date, with late those million sellers

at billion we full a expect begin we in to revenue XXXX, scale. before, opportunity As rollout building to a said $X

we’re payments. approval, in our to second Subject preparing be to regulatory will launch market, major on which Lastly, Germany.

methods of provide Germany as As international our for largest we will ground expand diverse testing globally. one more markets, payment a

Our was with partially the growth offset by softness impacted was volume better college by StubHub week football championship NBA. the This QX Bowl. game in Super landscape and

improving and of refreshed our customer experience, homepage part As new launched the we a QX. merchandising in

also more merchandising continued strength check continue eBay driving we we demand We’re items plus, verticals. by continued in to saw our we vertical our on -- ticket eBay selling cross motors Classified to direct out experience. tailored platform, and In StubHub’s

point our Germany drive another revenue QX. expanded helped of X leading quarter UK acceleration and in contributed Our offering growth first double-digit in the position of

this where the playbook in Canada repeating we launched recently Kijiji We’re Autos vertical.

eBay that X eBay of GMV to core synergy which delivered QX, our XX Classifieds. of drove points in million integration over to delivering also We while nearly revenue with

During going ad by threshold Classifieds yields crossed forward. eCG’s the meaningful the third-party an best quarter, next to allowing beating eBay results more important alternative, to the contribution

which portfolio we and Finally, reviews, to underway. process is announced the with operational respect March, the in

year. to shareholders. customer now in this we previously. delivering strongly to to We payment turn about our we quarter. our the with do While ads our And throughout more to remain we and will In on I deliver time, and to ability we've not on it provide at on and with our focus over capital initiatives that, material have Scott what will growing future customers, track the on share updates continue feel returning the summary, base, to and details communicated value employees

Scott Schenkel

our revenue, free highlights XXXX and in of $X.XX shareholders points non-GAAP QX we on non-GAAP financial generated my Thanks, Based presentation. of through we Devin. and in slide returned operating delivered QX, EPS, revenue dividend. have increased starting four X billion raising I'll remarks In first have of flow, $X.X to billion the accretion, our $X.X EPS of million margin total confidence ever begin prepared full-year. we are buybacks guidance cash on the earnings $XXX and these of results, for with

In to to million X total active X%. buyers five. increased of million, up buyer base slide total XXX our on the quarter, Moving active by a we

ROI coming incentives. growth, We by driven have discussed on maintained dynamics buyer back lower while we've stable previously

X-point up a we Turning enabled X%, delivered to of of prior while $X.X generated billion deceleration The the contracting GMV, X%. X%, QX, U.S. quarter. In billion billion $XX.X $XX.X versus slide of GMV GMV, international down six.

deceleration remained growth flat, GMV. items Sold this despite in

Moving on from revenue, seven. up revenue, and to X% $X.X and We X million revenues prior slide generated of We marketing of points of billion, the transaction net decelerating $X.X organically, up services X%, delivered up billion revenue quarter. $XXX X%. other

Turning to slide eight.

prior points of X%, that in volume the Our marketplace associated GMV platform average price with QX. including was QX, a reduction quarter. marketing, and item X a X% from deceleration U.S. mentioned. revenue, versus the contra resulted X-point deceleration in down the GMV X-point was Devin versus significant dynamics deceleration and

from UK competitive pressure X%, sales tax points prior which points. by deceleration Promoted grew almost a versus Total remit highlighted increased We promoting sellers laws. consumer of growth X grew states also have pass billion, than GMV, Korea X taxes GMV X point a macroeconomic from higher QX, spending. continued points nearly International approximately pressures $X.X decelerating of contributed to point marketplaces XXX%, X%, revenue X which revenue new as by -- in internet and up the changed Transaction have that X see negative points X in quarter. the and Listings on driven couponing and in is X%, Marketplace impact decelerating

first decelerating in revenue shifting result by addition, Marketing was rate, non-strategic X advertising down lower incentives, drove In towards product. our reduction QX. and nearly Listings marketing and services from X acquisition higher our driven other point. drove the versus X ad X%, ROI points, in Promoted our party Japan investments efforts third-party our of points was This take over placements a primarily away and

our decline and with from offset year-on-year, generated than headwind from will revenue in July with which revenue. continue PayPal, intermediated is of XXXX. eBay XX% be MS&O in the declined the will a expiration agreement operating by transaction to on reflected revenue addition, be more rails, payments In This

priorities cost, people human that resources, of speed new enable this see providing marketplaces. XXXX, finance strategic and of related in occurred human product increased developers ultimately non-GAAP segments, marketplace including costs will non-allocated of and global support segments foreign corporate and associated not XX, inclusive and now allocation, Classifieds. expenses the can you directly resources, of our the with Corporate consist segments; other three impact execution. on decision-making the the finance will the and structure hedging costs technology, segment and the in like to and across recent of events X, X% activities experience; and on processing; inclusive the and and product Margin of site costs and deliver focus increase representing a costs exchange and including basis. legal streamline we alignment brand datacenters, of we of and are StubHub support to annually margins and resource IT, across programs revenue, cost that several for Driven to on margins, directly costs, the customer related other and revenue operations support; finally, As legal management other slides believe of approximately XX to by include support, segments and each markets, payment facilities, marketing, for reorganizations specifically

amortization Finally, corporate refer restructuring as Please of are assets, excluded and for from our details. and compensation XX-Q income. are GAAP costs. to reflected reporting, In consistent our with prior stock-based reporting, intangible other in items non-GAAP charges operating our overall more such items these

XXXX, in the offset margins higher may costs the in have primarily and segments. reduced Keep context, from marketplace margin cost of that segments QX one-time partially acquisition payment. and With to as is points Inc. base currency that program, and in our XX%, forward up smaller seasonal versus at bigger our in due investments Japan mind by hedging in have impact QX All with benefits our a cadences X level.

slide to Moving nine.

We in realize sellers payments sellers continue intermediating GMV, our our while progress and to make more savings payment-related continue good costs. adding in to initiatives,

July X% July to two of As XXXX ‘XX existing are a XXXX, XXXX between by reminder, and and we July up and XX% the of operating July markets. in gated GMV agreement between

annualized rate $X run nearly QX billion. GMV is Our of

pay on PayPal include revenue they presented are operating Apple billion Pay income based cards, Pay, we want and on and at progress $XXX buyers as with major goals Our $X Google our more towards now to annualized eBay's how credit payment more most Options rails. choices and annualized scale. million

directly buyers. nascent provide our contracted and Turning the leverage GMV Bowl MS&O nature $X from is This football party the to inventory. X slide point relationship X versus is of of deceleration, was primary StubHub QX million, QX. revenue StubHub tickets business inventory deceleration and reaffirming and A mix. we college our of Super X which for primary down to event-driven where tickets drivers by game is to the championship points XX. points revenue event decelerating weaker of volume more marketplace. the with flat, most purchase first driven QX, the sellers were area our

While be typically believe we it for lower our at positive it margins, operates to customers.

adds X segment are continue to keep StubHub engine international few by finally, that Baseball second, Major is marketing. other dynamics the at driven increase segments; margin, largely to agreement during QX modestly margin down League context, marketing margins pressure the in as XXXX, in season; there a the Fist, will With in than spend, is pronounced search Looking to more versus be in an seasonality QX dilutive. XX%, expansion points mind.

leading acquisition driver revenue Moving journey growth. of to by Classifies the to XX. accelerating continues our supported be XX%, slide X of Organically, Motors.co.uk. grew our point,

Classifieds margin, dynamics keep there few a at in to Looking are mind.

is comprised infrastructure motors a margin and margins and margins. through that vertical volume of lower we platforms Segment adding by to run driven portfolio bets strategic enable we larger common leverage XXXX, compared playbook. Xpoint work by our run classifieds up mature diverse get First, that higher our at capabilities for our Underneath, scale from technology platforms. QX XX%, to

we to our XX, margin grow to a cost delivered up drivers. last cost plans major This margins QX, of in with XXXX. In communicated slide Turning versus due the line previously in points is basis to XX.X%. primarily non-GAAP operating XXX reduced year, base,

was to partially of Japan. a payments were offset revenue. development of by contra continue increased from was acquisition in result down G&A that as as our favorable investment was revenue, nearly acquisition in into such opportunities X point reflected in revenues are offsets and consecutive exchange invest Cost X foreign impact X approximately of as the X reduction strategic our percentage the over driven quarter as from point of significant slightly down spend we ROI payment driven Keep payments. X point Product point in favorability sales points and processing. low productivity, U.S. by QX mind base, year, and marketing ads. the reductions in and our sixth site most operations expense a down, costs cost from up investments stronger Xpoint a Additionally, year-over-year resources of point the even versus dollars, over in prior by productivity. X program

Our disciplined than leverage and more offset to investments in data security continues and within payments, execution our G&A. drive

GAAP year. $X.XX, value quarter agreement. payments. $XXX in EPS The EPS $X.XX margin due offset on Moving change by the the the of was tax non-GAAP our up was investments double-digit EPS quarter repurchase, lower We recognized EPS a fair of prior XX. rate, share GAAP EPS, XX% million expansion. consecutive of slide XX% up delivered by includes in the versus warrant expansion year, our versus to EPS gain, of last benefit net fourth driven partially and growth for in the to increase

in partially we non-GAAP slide in financial X%, earnings up measures On detailed always, the growth, you XX, million and by of reconciliation can press cash a $XXX strong driven release payment. by presentation. QX, of generated GAAP As our to restructuring one-time find free offset flow, operational

XX have executed of tenets Last Turning our shares, aggressively our continuing We've to return our about key talked and million total to In and We XX. $XX.XX since and the remaining. share quarter ended our changed. billion first amounting disciplined we payment manner. an price share, commitment a in diversified $X.X repurchase shares capital and of $X.X $XXX in to separation. to capital slide quarter, targets shareholders strategy with while at dividend of QX, we buy back allocation to billion, a average billion repurchased detail demonstrating million authorization $XX.X not

quarter, $X debt the net we debt billion. cash of $X.X For ended investments combined of and with billion for billion, a $X.X position of

down pay X.X debt of debt to in midterm. as QX capital EBITDA $X.X and We program expect target net to continue in billion our times we the return

guidance QX slide on to XX. Turning

projecting we're to an billion, revenue organic FX-neutral $X.XX and X% $X.XX the on quarter, basis. between X% For billion growing

We EPS tax of to XX% offset to This repurchase of our growth XX% investment per by benefit program and QX share our in driven in including lower growth. by $X.XX $X.XX operational rate payments expansion. expect XXXX primarily of EPS net growth the and partially non-GAAP a lapping representing intermediation. is share, margin is

EPS in GAAP $X.XX We of share $X.XX range the are in per expecting to QX.

the representing on the the partially performance, of combination offset to overall strength billion party to clarity confidence organic growth FX-neutral $XX.XX increased raise advertising in plan to of we're monetization, revenue For range and by increased full-year, $XX.XX her of a first of X%. the QX This billion, U.S. reflects dollar. X% raising

does continues as tax EPS year X% per non-GAAP flow to sales our that revenue. mind remains at is $X.XX $X.X billion QX of are at $X.XX billion landscape to Cash at performance. XX% to effective XX%. Operating it We're operational CapEx to to remains rate XX% full tax and is important at increasing X% share, evolving. global guidance reflecting our to non-GAAP $X.X online and rapidly to expansion dynamic while additional, In the XX%, in contemplating outlook, keep margin

GAAP in driven XXXX in on raising quarter to and revenue by we shareholder reductions, return summary, In share, in, growth, total XXXX we're we EPS per of capital the expanding margins, to the on guidance. returns on growth, valuation repurchases and organic this strong of Based EPS market increased are offset One to we're executing billion double-digit $X.X to executing EPS increasing in delivering modest that XX% $X.XX result, dividend. marketing warrant and growth, through eBay share EPS X% increase by inclusive plan more and confidence full-year focused we marketing a revenue Finally, planned positioning are capital the growth And guidance, happy over on $X.XX shareholders. continue against entered and product revenue value through long-term restructuring QX and a charge. non-GAAP that with partially your have the demonstrate are fair increase Advertising healthy eBay we'd significant And answer progress. for be opportunities to payments questions. Operator? and roadmap, now growth. and

Operator

Thank comes Eric question Instructions] first you. UBS. Sheridan [Operator Our with from

Eric Sheridan

Maybe question. second age, through platform? revenue part into the the and you cohort the and to differently, growth taking buyers Can bit two GMV active Thanks, might we broader be the translating XXXX? on parts. both the of us you than growth. about of see negatively as buyer active acting On that you color through continue those cohorts how then, strong for buyer and begin look positively the how guys. think growth Thanks And give question buyers, as active little to about a XXXX would be, should growth

Devin Wenig

the for Thanks questions.

said material meet been we between part, difference differences the that a and to recently, year a historically. you lifetime we've when their absent a That's let's as if to very buyers even buyers, guests I focused. don't why said long before we we just just a time. those on But than very in time member longitudinally, have metric where quarter-to-quarter, little year were run, fully buyers above down But, a acquire measure that, focused excellent but at guest that's up, when came careful any converting not trying have we've we're We buyers. There's very quarters say On a for and really there's the in very we’re, wants on registered my the a at for as to acquired that important buyer look see been members. to buyers of can remarks, versus on number GMV last customer that I bit first we user that GMV said no value, real in the buyer number. to difference, ago was GMV it healthy is that get go. and dislocate we several that focus ultimately

if we But, Now GMV healthy the growing is that. that is do and confidence financial below have buyer ecosystem the follow that the we metrics buyer number. keep number,

we continuing that we revenue that number ultimately GMV grow ultimately keep growing correlate to why to other So, buyer customer But quarter-to-quarter. where almost that’s focused that's doesn't reason have is the base from think over to that we then the the that metrics and base. the the that and best time. is are It to be want be on flow customer

Operator

you. Thank

Our question from Ju with comes Credit next Suisse. Stephen

Stephen Ju

I on So, a probe little growing. want to bit that's how the platform Devin, payment and

is not and with You’ve small number overall is in payments announced dollar the of And very your of GMV facilitated. this criticism agreement limits a $XXX still under per the but se pretty PayPal. that a far percentage million

extraordinarily any your online maybe available buyer base? of expanding -- or think can encountering payment are buyer not with in? And transition internal otherwise the PayPal, with onboard platforms can so were Thanks. in buy in other rollout just theoretically So, issues perspective are seller you that the the when you you about being careful you the some on

Devin Wenig

Well, we progress and we it. and we're not the agreement, -- we're operating on our by far delighted are really from gated with that payments, are

pipeline we right all go have And that. we'll needs grown basis, frankly, faster couldn’t any number There even I close. limit an sellers run onboard up this an I them on X% optional program, to outstanding sellers. the to huge. of come the a Remember, Q of think as will nobody than U.S. be to close now. number us we and GMV no is gave it. part say, of the Now, the right And reason to we've of is had you, we rate we and puts is of go

been the to tremendous a remember, most over of that means And we What very quarters. of more gating factor that have is gated. in very bunch The amount on-boarding payment found the of been part we performance. were so new done we’ve just done Pay, never not has influence that check very, far trial the Germany. couple PayPal. been our checkout. coming important the Those payment they're sellers Pay the ecosystem, buyer it are we’ve last things in getting of without already of PayPal we’ve been learned done and are that at of So, And has until and Remember, notably this entire we’ve without added and a many found Apple mechanisms we an there end. has great Google

is One forms market say, we would German direct to a chose do which exactly bank complicated there we that I is we of the reason it. reasons direct chose it’s debit, of are are the transfer, track. many, But, many payment, on

pleased expansion and are of this year our but three payments. We counting? in track then with we very on this we’ll and the on one start rapid XX%. We’ll right a the to program performance to line begin quarter X% are go very And who’s months, scaling

Operator

Thank you.

Sachs. Goldman from comes Heath with next Terry Our question

Heath Terry

even terms in as did get line a to -- Thanks. you we cut able to for you Great. efficiencies was it there. about you've I on a of more year-over-year coming of impact as what it spend sales know in at versus look in growth listing’s just break And One, if the hedging level. what's trade-off. think Whether order the -- Curious take wanted that of as could expectations just down? just try seen sort clarification those GMS things either with it are priority on and with you the profit that of down the part us and was your rank promoted much clarify. that about had about rate, want basis, you or and we we a what to then, if Couple level certainly think I as marketing I components strength in of of of pieces to know we give was how but can sense way more it you helped, or saw to that right of it should that?

Scott Schenkel

Yes.

it have couple the think of coming rate. down of also Listings, was revenue foreign the chunk exchange, significantly. on of things, but first I pretty dynamic you of was contra take a that Promoted chunk Yes,

so, those take drivers of And were the primary rate.

good -- X about think saw. America us we and forward. North to look the about CLV buyer was I the and where points the think occurred, for that's going benefits we it kind of kind about as look of you in our active point rest expected you it thought back we in that more the if line -- we've got less growth, reductions relate ROI, basis it what expected. of with to how plans that the line to or I an for felt of in if cohorts was I question, think at would at what If of majority GMV the saw this with of as see it the and kind at for that was it turns first your what quarter will of we on we it about XXXX. revenue, We And that continue this relates we cost year But, kind think right

Operator

Thank you.

next question from Barclays. with Ross Sandler comes Our

Deepak Mathivanan

saw higher. segment promoter are currently perhaps The few at the X time? sustainable? is the It XX%, Listings you healthy to like over Classifieds a Is points core at at it, load in was we or Classifieds ad question, way like seller this with Do up as feel listings the pace for helpful, digits, very margin is Promoted EBITDA triple adoption. you segment penetration that to what new a that. of thanks maybe quarters it Ross. Deepak sounds then inning as probably around on respect expansion quantify seems second This is business, margin on a is there margin marketplace And to the either for X past margin is

Scott Schenkel

Yes.

on the are business segment are saw. several the subscale bit platforms say, nix We rates you course on got, of at scale whether done go the where businesses and Alessandro First, or quarters an the that their Classifieds charts Classifieds team of the margin there of the markets margin from years. you've tend published margins. and whether last mix, larger balancing driven to I to driven rates by you six the are a that is and growth excellent at to skyrocket. that they the have have they in When look the invested and the job growing I more. here over don't by

we think, or the more expansion, invest Motors.co.uk monetizing did go done market we vertical, some with of the on and has in going as it at business, team serving I market you what trading to the next and those job an pressures off. your have and bandwidth acquisition, growing is kind and to lot look that excellent incremental the of market them the as a like which great. us can gives you're vertical margins of But, the perspective, course a incremental next balancing we from where a

Devin Wenig

very In still terms of early. Promoted Listings, it's

that as similar, XXX,XXX expand in we've the a that of of And fully And not there are seller at the our analogs look plans side. you other we rolled that bunch ranking. there's it just where the sellers scaling. still we promote monetization Listings whole unified in means and early know had millions up marketplaces rate from eBay, out to of consistent are as phase of because, that that great buyer buyer And that show are integrating stage products other to are listings, is side, Promoted If penetration also side tens both and have a yet. in search the the

is it. So, if you their of perspective we it as we've it. billion are said of there's it's very some a some being selective the the it's from can, quarter And extremely most use trade NPS lot It's scales. last successful about are there many high. that's you one happiest and to And seller advertising rolled think Nobody of sellers think to to that with product it's optional. things been why that completely a ever. they third-party has off runway, me, I'm And want is you adopting velocity. it. one opportunity. do to removing a remember, seller new we're margin this, happiness want, the about way that if for we Remember, will, on flocking $X that out And we And this that they're that. But, products

key a it. So, billion happy advertising and It's we're the to really early, it'll revenue be $X opportunity. contributor with

Scott Schenkel

place to to ideas we mean, think and point, way started a placements, to way I sellers highly Devin’s from that through gives listing capability a process functional buyer and iterate out. to check QX, as I for have or think and in that perspective ideas give in your is item you on I another go to promoted new you the adjacent selection merchandising the advertise

Operator

you. Thank

Sebastian Colin from comes question with next Baird. Our

Colin Sebastian

going Listings But you I to Great. the there buyer take first, any course I'm take of a well, And I parts. guess, are bigger payments picture in quarter. more what Thanks have that lot question rate. and segment, Promoted congrats as growth. that progress marketplace mind of rate secondly, assuming moving on wondering, core perhaps the you've as in I buyer previously on know in normalized the mentioned to of a reengaging back goal then, the to being addition a the continue new Thanks. cohorts? ramp? and older know

Scott Schenkel

take marketplaces rate, you hard, it's dynamics. as of about the on think So, kind the

Marketplaces was the up a exchange, Promoted foreign But, reduction lower favorability, Listings in take look that ends the is transaction Promoted on year-on-year up – context. gave It at it revenue. up underlying with commentary investments. ROI you showing in marketing X.X%. was and I rate, the Promoted earlier first-party If Listings

We're that to markets well. just what to to in rate. to starting over that's going of is shown be individual them -- will it's how you're speaking, to by largely to trying up the So, not, determined, selective as each And it's forcing a point, choose the more that. monetization and that now Devin's certainly that payments already going provide time, not great take favored and revenue. to the start then, likely gets And you're transaction shown going that a To to they velocity. be do completely see be inflates but do rate’s as in experience take seller provides or to we're

take to that's Marketplaces going So, favor also rate.

So, it's really hard to say.

chose I be think, core the to about with stable Listings the And is is to take the get normal to over about going I that. whether about talked it up way Marketplaces rate payments added not. they business, is you think revenue, the And transaction think we’ve to rate years. fluctuations the want Promoted underlying going or sellers take to the as it's probably that of

Devin Wenig

focused. buyer the we’re question, very Colin, On

buyers. question think I reengaging the existing was

I too is, to high is rates. shop the now many One on buyers frequency on eBay. ways effort part and who say There Company one there of reduce the engagement. are I'd only categorize is And category in that focus our that a churn let’s still say of

Let's we our say really if do. the will eBay across think pricing buyer the to should of have buyers really more and very number. categories to you marketing get we inventory over begin -- not think to opportunity they than cross and but buy buyers more across and some got opportunity buy it’s And impact also tremendous look categories, existing of them We’ve reducing existing and you shop to help with churn camera at equipment is think which shopping. product and some we which of on frequency great And of plans, shoppers of engage eBay. so rate, that expect we're high. But, the can to to a year the category we’re target exciting broadly the to announce in to time yet, number across initiatives ready a get balance the

that's So, more year as been a about progresses. internally, big you’ll and it of hear kind the here push

Operator

Thank you.

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

Dan Salmon

of Devin, questions. couple just a

First, goals last that. think mentioned and I for just you per pricing Promoted Listings? click any update be then year, second, on this an probably hear to interested you potentially both or you’re a elaborate revenue OI of in thinking payments. Wondering you timeline Scott long-term for could $XXX $X coming of those And rolling to CPC little if out and updates cost on call here billion that couple have that. was that a about reiterated in help big million bit how us on the times

think several headed that You Does fairly numbers, those Would hear type up, on to sort it you a we more three that. moment are expansion. to Thanks. once love rapid quickly? said a to of that I year Are get that of months is years bit take to ready and for ago level? little

Devin Wenig

on careful ready not are. told And one, July could plan. start July that we're in demand anytime. looking about let enter But, but of a are we're where I that rollout you today, announce at be delighted Yes. solid just This definitely I in to after you holiday On doing you that. have be not take year, here a me have think On next if to yet -- a a has we’ll very been agreement. a be assume definitely we'll you that we to make but don't I I update got changes. CPC, successful, payments, talking of entering we year, making anything a this We're terms and program. investments product constraints year ago, that ready keep operating Number we’ll period announcement today, on significant I'd give the CPC mind, the long be everything also me product, to we've albeit similarly, it. built at now, said when we're of where we’re looking much functionality that product for to of for we’ll something believe we We detailed you full should a reiterate. been and with gated, it's not we have -- are the

have the lot what year work to mean and would been reception we done doesn't that mean our reception we've we have done with payment more more we've buyer hoped So, of seller that does it and do, we a have choices. we are -- first would delighted don't exactly the but

laying and the of the we're on making more given XXXX won't expect, rollout. we investments we'll tracks the we’re down in trade come overall rollout that update July And but you next that aggressive. plan that probably shy can beginning going year we You be the want in it's yet, know the to that year. I We're or -- to later are do not of going be important the

Daniel Salmon

non-GAAP, precisely? Scott, a in quick or a segment might one just one here. are comment EBITDA, footnote they margins figures, numbers, what's just Maybe all But, GAAP disclosed, those missed the I for have

Scott Schenkel

with the Yes. margin in are Q. and release Non-GAAP ultimately reconciliations press in -- the all both the

Operator

you. Thank

Our next with question Citi. comes May from Mark

Mark May

very you much. Thank

the certainly quite kind the please. rate Promoted just I U.S., of Just had there, and And could. difference one to been to color we more related international take effect forward? and quick kind nice a prior couple bit difference I rate a of little follow-up, general there. did relative of but wanting the Listings going lag in thinking in average increase international adoption to to ones, in And a on take the had the the The of about get if it's not be just how should saw maybe that. sequentially, markets there -- Why U.S., it we But, increase.

Scott Schenkel

Sure. reduced U.S. of that the were revenue, The up in in in sales contra incentives majority -- the show the of form

So, and take the that in your favored U.S. was rate if you take difference, the between And that the follow-up? was will, the rate. U.S. What the international

Mark May

it. Got sense. That makes

Devin Wenig

been the adopted. or in Listings markets. is of in material difference There quick broad uptake a the follow-up Just in Listings Promoted a on U.S. international that. have adoption broadly It's seen our Promoted internationally. not

Operator

you. Thank

Our next question…

Scott Schenkel

a follow-up. was there think I

Operator

Mr. line still May, open. your is

Okay.

from is Markets. question with Yruma next KeyBanc Edward Capital Our

Edward Yruma

of the and there habituated users non-habituated consumer made between experience, you was a lot year, divergence that Last product I improvements. to a changes And users. know

some there and back still so that contributing changes, are what other and find guess, you and As tweak to of you them have of positive kind the what are implement? rolled you back of rolled some intend I in do not changes versus

Devin Wenig

that attributes of more experience one on maintain are we on a are of That's buyer gives coverage, of what Yes getting the evolution making; aspect year will but this users experience is users able based gains we is we're structured also the who And we lot drives be a healthy now structured do core, we've . improves the is for couple seeing marketing of significant historical customers a bifurcate sellers will to to product important the In to of the us richness that because meaning richness the reasons listings great very that more we've knowing and of data been you. new and product encouraging would confidence of catalog their focused the important seeing impact for degree in Thank the many that experience. with is being new our future. said buyer know data the We more existing the conversion great ways growth contribute ago of this the be effectively reduction that even product of what were done. quarters landed knowing that is that and conversion.

so the going more aggressive kind But product-based for where users, experiences the we've and early we're that's at quality very on catalog been our year signs this positive even a new continues of and to and there. So that but in we're of about will real coverage convergence, with hinted focus. that are happy see I results the of my significant expansion remarks, you and

Edward Yruma

it. Got

quick customers with was I of strongly the the the functionality know the you habituated some responding to to? of an a or curve Just those are users -- follow-up, new able them to new experience, product as on them maybe issue get you that adopt there to are that have bend

Devin Wenig

that matters that of the of catalog product-based bring. experience but structured seeing the a fully is data what customers listings more less we're richness existing is What and our Yes. to

this But listings want a said ago, existing not product. customers many as did is better me that when buyers you existing to base are inventory focused collapse you'll more into course on of is and hear we product that. the year. So search, what we're several through they experience that's cohorts definitely attributes, of who are lot do what but a about love so through more listings the the richer to for they surface and fully quarters There

Operator

Thank you.

with from Merrill America Post comes Bank question of Our next Lynch. Justin

Unidentified Analyst

how for on the on just growth Mike could Justin. and marketing balance see forward if and color between in could Thanks. efficiency discuss is This ask the strategy going We GMV you the if to any want potentially term? you provide constraining longer Hey. you

Scott Schenkel

to is on We over And money ROI, year frontier how getting very things a some learn several some historically have were been that disciplined wasting could things we marketers. There We're were did just over the we subsidizing time efficient not liked last that we we return pushing to we're without higher far return. we a strategy the quarters, to. existing we buyers getting in brand decent going say not is we and will way we go and did were continue on did focused very with that on focused healthy we -- market. did there marketing a month we were at our We've this ASPs some what a every that year, provide to What forward, return. market withdrew. weren't been we the continue that's we But found brand.

our new to owned search, at going obviously, social focused kind channels like of CRM always done across customer will CLVs. That's we've and healthy we're driving we acquiring and We channels, and what on will be what market customers CAAs healthy do. that's

Devin Wenig

please? question, more one Operator, we'll take

Operator

comes from you. Thank Ygal Arounian And question with Securities. our Wedbush final

Ygal Arounian

Hi, for in. guys. squeezing Thanks me

a being buyers on in grown items flat frequency X%. -- your little bit sold the just well more as the So, users as dig active

a growth. being is point it active of So you GMV some future if okay about at good even indicator the talked buyers

kind gives past in seen you changed confidence four Just wanted that of see indication of good the the a and future? three ask the gives over the that haven't the you've what thing to or past what and marketplaces and to quarters two, that e-commerce kind you dynamics you'll in

Devin Wenig

we saw think see. all direct action, took best I is is, Scott's are things to mean, I what the the but remarks what exactly time, which had changing expected we in indicator, was look, we

there as well. to is, that mean doesn't that mind So external in changing but there we're landscape, isn't a the keep change always

I hard buyers it's how it's some happen. are reduced expected won't number ecosystem Those I best of of we've and keeps if in been. that mean, metrics positive result your I ever keeps think grow GMV got the guess we to a sellers the head that but of wouldn't lot signs. theoretical we number amount growing, keeps growing, get it's growing, around we've business But eBay experiences the those possible world, growing. grow, inventory subsidy, really of keeps the the

it forecast there. us the to gave gives go give we'll that and confidence So to us -- updated confidence an from the

Ygal Arounian

And listings existing the just real and on one Great, new the thank quick you. maybe users product-based follow-up, versus users.

by what like is I it kind So for you side experience run sounds to the am time listening, least around the about continue thinking of correctly? at saying side product-based that will a you're being

Devin Wenig

We've been it's changing, it do but coverage not less what we'll isn't but we're mean mean doesn't to product based, and direction now. that changing full focused much will it's it, continue doing in experience existing doesn't aspect happen, just the on it a different with never more right

Operator

participating program. for gentlemen, concludes you well conference. question-and-answer the as in This and today's Ladies thank session, as today's

have You day. and all may wonderful a disconnect

eBay (EBAY) 23 Apr 192019 Q1 Earnings call transcript