EBAY - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the eBay Q2 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Joe Billante, Vice President, Communications and Investor Relations. Thank you. ahead. go Please

Joe Billante

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

Executive are Joining the Financial Chief Investor available the during providing to of Iannone, the the today presentation We're Andy eBay call Relations slide investors.ebayinc.com. Andy's me our our section on Officer. Chief website through accompany Officer a interim call, and Cring; is Jamie at commentary which

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

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

future regarding year-over-year forecast known comparisons and they unknown In revenue risks management make performance financial conference statements differ otherwise. forward-looking in from will expected unless our may call, mentioned involve our this of our results. reasons. and statements a results variety materially statements and GMV and limitation, neutral and including Andy's without forward-looking uncertainties These Jamie's actual indicate for Additionally, FX in our remarks represent

reports results can our factors that today. operating and more most information other and You affect and our recent release about uncertainties could Form XX-K from earlier find risks, on periodic XX-Q earnings Form in our

to of duty not Jamie. rely no to XXXX XX, July and me as this in information and turn we that, is undertake let should You not over presentation on any All information. forward-looking this it do intend With statements. update

Jamie Iannone

good and Joe everyone. Thanks afternoon,

our be share and vision observations with CEO I'll highlight recent all I've you to take of as discuss from return primary to days few I've teams I eBay. with to enormous observe its business, outlook, firsthand eBay, XXX my to of performance of speaking immersing we across admire for significant myself in and sellers ahead I'm areas, near-term opportunity the culture the the the thought engagements, have turn Before spent and meeting Throughout first my long focused call world for our over special to buyers on these thrilled company. this enforcement its throughout company connecting our and quarter potential. on I us. some today organization. three unique the the share time to the a and our different Andy

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Andy Cring

incredibly Jamie joining thank time and for for today. XX been Thanks days eBay. exciting you an all last The have

and operating the begun which payments, we've profit both process of the incremental the for managed while revenue will of business. First, improve experience and buyers ramping greatly sellers, delivering

an cash our and had to in and classifieds we're quarter our financially. for Second, billion pleased extremely stock transfer agreement to we $X.X business outstanding third, Adevinta with announced

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We are shift to occurring to as year-on-year deliver that's growth. continue significant benefit from the well to offline we positioned volume online

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above cash our of at XX%. operating was investments we inclusive an XX.X% $XX.XX. and most of flow July, high-end ongoing QX shareholders and at on we slide EPS million million early up $X billion Turning in $XXX delivered margin guidance. basis, cash accelerated $XXX dividends and QX generated $XXX the repurchase was cash up an to billion Non-GAAP We We $X.X recent in in share payments. to four, to our flow. million share of free of average returned our revenue price completed $X.XX managed FX of of Non-GAAP XX% organic strong neutral in

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improvements across in has transaction. and realities slide with of pressures XX% classifieds to team tremendous XX the down year-on-year expectations. the was The an quarter ads thought addition expectation restrictions by driven than fee discounts, lower The and primarily in beyond continued Moving topline and motors display and acceleration classifieds for ease classifieds executed the April incredibly spend. verticals, advertising. quickly transfer will discounts quarter partially pandemic our by Revenue deal driven down in steady team originally provided to all and QX through an in was leadership pending yield resulted in the reduction of investment and continued Performance XX% dealers modest by points uncertainty leverage Through year-on-year, it in anticipated. Revenue margin discounts which environment. the and eBay as our recovery billion a speed was delivering growth advertising nine, eight more in had points the of to cash a at decelerating materialize in through primarily billion was for sales was anticipate ahead Segment as of business headwinds marketing Adevinta before its $X.X we we taxes. in fee a which versus came point lockdown our will June. combination Upon agreement billion. QX, acceleration week offset closing, ending the to of May driven to we receive to by markets. approximately lowest a to motor Last in net $X.X and $X

XXX million price receive In share shares addition, of of valued at $X.X Adevinta the eBay will July closing billion. XX as

of the view reactions alignment with While value indicate combination. early share move price our long-term this with of positive from this in value the stake the will Adevinta,

to deal online us about the it near-term value participate excited this are enabling in upside realize of as largest potential classified We to company. allows while us future the also world's

margin leverage marketplace two prior QX, investment Cost over are expense impact Korea. Sales first revenue year-on-year and down approximately of cost points down as to and points we of as of continued lower inventory percentage points marketing offset and expanding managed year-on-year slide the and program offset back spend cost development including up incremental and the partially experience, control, and drivers; investment is volume cost reserves. the and leverage non-GAAP offset XX marketplace Transaction and in were volume more partially were basis classified point by more in the the year revenue of eBay Turning by in This was and by than transactions, XX losses than cost payments. XX%. and leverage price have major higher party product investments payments. marketplace charitable versus five managed to was by as leverage our revenue payments reductions by classifieds is segment. G&A by costs three approximately in driven large donations as nearly office. driven were advisor volume managed in operating delivered by the a volume basis of offset debt XX grown points actions points offset costs related modest money down volume associated closure partially reinvestments increases with guarantee cost rate in a Product in one our leverage, driven bad

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reconciliation in release non-GAAP earnings measures As presentation. always, the to can our and you find GAAP press of detailed financial

in XX, of taxes. slide earnings and free million up generated cash flow $XXX cash of the higher we QX driven to Moving by timing XX%

XX, ended Moving and we million the $X.X of to and investments quarter in cash with debt slide $X.X billion.

to the rates sheet paying We are leveraging continue QX, our and half for debt. $XXX strengthen total of market the to outstanding bringing improve our debt to issued first debt on balance we rates $X.XX In current the million billion. we're our

share quarter. approximately million early million in we $XXX the to repaid We XXXX of debt remaining of In expect repurchase pay QX are $XXX and in $XXX announced the billion completed by We $XX.XX. the the to using proceeds end our plan June, and accelerated in XXXX maturities. we the retire dividends we QX. $X we In million price at average per paid February share an

buyback our of $X.X We guidance. to billion We with in $X.X hit remaining. have left share quarter ended $XXX share authorization the billion in the repurchase million

have We remain to rating, times key capital triple target Our targets EBITDA debt debt below X.X changed. leverage approximately approximately of three committed and allocation B times balance of a midterm and $X.X net cash plus strategy, and credit our tenets not billion. gross maintaining

committed dividend. our to We remain also

guidance, XX we are guidance slide assumes to in Turning results the providing classifieds and year. both included and QX are full

will We appropriate. forward moving updates provide as

indicated we that is the the unusually immediate April, As experienced in historical and was time significant conclusions it this without beyond how and in presents broad-based last an long time outlooks drawing trends a At dynamic on or challenges precedent unclear term. strength In April Germany we would when as then growth Italy, and second across reopen. observed to these rates levels began to moderation saw ever. we growth would countries began growth return quarter the in like pre-pandemic April GMV if the of height varied we in see to geographies, countries What throughout of and acceleration.

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providing full guidance year both today. We to and QX are our however updates

pandemic and considering will clear the range of we changes exactly near-term There channels harder Our buyer a is these in potential and a factors, global wider is our e-commerce but recovery from outcomes. visibility environment economic how of model beyond to see in outcome. behavior, a it's QX the retail predict affect growth shifts

continues most of portfolio, assuming growth to throughout our across continued assumes moderation guidance consumer improve. Our QX, mobility

exit we We marketing in at and expect the to higher opportunity to our entered. continue to pandemic technology rate to a than invest maximize growth

organic revenue XX% are billion For teens assumes the with revenue basis. we high billion classifieds, growth are XX% acceleration quarter. In volume the through neutral and growing projecting the quarter. on marketplaces' to an second moderation $X.XX projecting This growth we $X.XX in QX, from between FX gradual

GMV but deliver continue on of based on approximately also revenue partially acceleration, contributing at strong rate, managed the growth revenue QX heightened expect We our three payments to to execution. points to guide, midpoint

EPS in non-GAAP driven marketplaces to representing lower partially EPS by marketing. continuing and and to share expect $X.XX per We of investments $X.XX share, XX% is XX% by count, growth growth. primarily offset volume technology

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

range our and neutral digits. For in represents classifieds marketplace mid-single full guidance XX%. we growth revenue $XX.XX at XX% mid-teens of billion the to and are to the year, negative revenue of growth revenue $XX.XX billion organic increasing the to FX This

in XX.X% We operating to margin tax of raising and non-GAAP to XX.X%. range and rate between maintaining XX.X% are be a the XX.X% of effective

guidance above we dynamics, the per With to $X.XX full-year our are share. non-GAAP increasing EPS $X.XX to

We CapEx to are and revenue. billion to $X.X cash increasing X% billion flow to $X.XX to free our the range narrowing X% of

continues Finally, we our great are performance be The to per very EPS progress. increasing to full feel closing $X.XX In dollars $X business to share. year GAAP strong. we about

buyers our and on two of and cost providing compared more drive will that XXXX and for delivering as well points on revenue way operating sellers. structure at Our growth growth and the by initiatives improvements We're friction XXXX. reducing of managed payments options advertising are least on our site to margin track, with

near-term clarity shareholder have value believe classifieds more to with for on value opportunity great excited steps we that are transaction a creates in time. the the for over We next

made to we've achieve do With the more full that progress, our know to we're we of to improvement Operator? happy front driving be great I the work fully and questions. business have to While focusing Jamie answer opportunity marketplaces potential would us. we in your towards all in and realize resources

Operator

Please comes The go Markets. Ed Capital Yruma ahead. instructions] question first [Operator of KeyBanc from

Your open. is line

Edward Yruma

it's guess a I you're then mentioned do process. And and current those you it? on you a know that with Thanks. great with guess again. specific work because selling can them competitions any of buyers the active. plans sellers complaints follow-up, act charting you the what with to great quickly here you lot sellers are and how from of and as Jamie, your to maintain a obviously I I situation through the trends keep momentum

Jamie Iannone

good Yes, to Ed. hear your voice

So extremely the what of process on that we really seller initial side, is how focused do the platform easy. coming on on to we're make

getting native how we grow simplifying them tools business source and business experience. them be product, partner which areas you and And for a So the more and simplifying enhancing them in of eBay. capabilities can in running and I on builder focus be though to give like for is have one, to the I'll we bringing even that lot we simplifying with progress We onboarding continue the into eBay, better sellers. being on second do the up that that talked more so pillar as give it then a they to think of help do to that's our app. registration work increased huge make on the that process, where tools and going us choice honest about on

the those -- it's momentum, them quarters what the six combined we the new on platform. focused about X enthusiasm It's buyers. more we're keeping On and really the last buyers than turning on feel is great and million been into

revamping process which like us convincing but platform you the the So I innovations on of also about and the mode dark the the we're app we're there get on is and new the for saw working majority buyers. buyers where transactions exciting, of platform that areas onboarding that's quarter on some happen downloads talked in like whole the doing our the app app this reinvest on to

enhancing we're to we're by the along is we've part come but in, value vision take advantage their buyers. XX the really and and started that just they increase the that's really witnessing us, we're by of that new So those excited this with excited that lifetime what seeing how days of the buyers what out their laid to first quarter early of momentum buyers, ability from but on journey just bring we've

Operator

from Nowak Brian ahead. of Please go Your Morgan next is question Stanley.

is line open. Your

Brian Nowak

the for questions. the I one the or Thanks sort XQ you US XQ the the it say two, taking let's guidance commentary first talked of been to I've sort of think like growth sounds has steady. GMV teens inferring but

of brought one, into new household, also are slowdown? seeing little are and question talk quarter eBay sort they guidance. growing cracking GMV types different buyers? these the the the of that the on, the income Thanks. So throughout are still the people bigger over demographic maybe in XX buyers and who that about then sort bit from is are is households, you the a question new would Why new steady in new of you’ve of the And second deceleration assumptions what what that how you US of and picture is older are the the in

Jamie Iannone

you Yes, take so I'll and the Andy start one and can maybe the take one. second first then

So the it's buyers really what is the new and bringing the across of across that geographies. I all demographics board we're found

two for really for but then a we're a existing of So one business growing GEN-Y years our And in bit existing also the focus major really fold. it's to we've eBay that buyers our investments with also couple that and the appears mode appealing it's platform new obviously some our you But made certain digital that's saw be board. to like and is mobile actually on fact across to of all us why demographic. why bringing and on advertising inventory on a also dark doing buyers TV that key then huge our just also in on growth for buying are the the this younger purchased of to in more. unique feature growth attracting will the It's hadn’t a over market while. buyers businesses that working sneakers and platform A and a next app and the customers amount of us probably and we're buyers it's small some buyers strong in had coming buyer or reactivating saw the

continued be it want focus to first take for the and you Andy, over do quarters Brian years. the one? next us So a

Andy Cring

I'll as Italy guidance, there but into I see the my I trends. on and given then my approaching of still levels, was lot the some a a specific and said and is it it's growth in particularly That yes levels with its and -- than sustained, look in strong is more peak had Germany, the where and in in the country increased more at an stronger, US, of but it's countries Brian I rate some progress the that moderation stronger we remarks, virus on the than get rate other some to growth not given indicated lower unknowns. in mobility prepared similarly in but pre-pandemic the about is is prepared want growth trends, seen than it's cases improving April than in correlation that the the countries seen know we've we've mobility world we don't say did remarks, around monthly Hey we and today as the pre-COVID stronger rate. we US.

Operator

question go Anmuth Please ahead. next Doug of Your is JPMorgan.

open. is line Your

Doug Anmuth

tech-driven how engineering talked two, to the I've about there can environment was happen talk in the to talk right with eBay influenced also Thanks. approach re-imagination recent or retain to make the attract the you eBay. just this just the and you more how about just product and then you to the by keep much tech-led the positioned classifieds? first you about ability you that shift XX% and be Can company's start segment? of the this decision and stake current pressure second, Jamie, and on talent Did

Jamie Iannone

so on Doug, technology absolutely focus huge the right. us. one first for Yes, you're A the side, on

we really even in but on So that focusing world-class geographies augmenting of in capabilities. a with a first different we off lot business, are have technology great new the team

and up So capabilities we're building computer science vision. in and AI our data

it's we've up. EC of may also technologies. that But have about All this got old You group building how legacy be GEN we've enhancing re-imagination, next company image coming a and kind there tech-led of be that's create though, the been areas to where features been those us for has our key because game-changing in get off like sellers. out to technologies. for of focus will is always candid seen a technology To

is the modernizing off that. So progress, accelerating and part technology of it some stack moving in that older news even of of just that's is work. but we're good The

of that them at together, largest with business you look Adevinta. business. classified excited deal, the and I'd say the creates combined classifieds two in online the the what of markets we're assets combination the classifieds our leading When by the business really classifieds world's that On it XX creates

marketplace we're whole in new where our I of whole venture. was remarks, in the in then for now that management I team, also and the assets allow with us areas important untapped gives participate technologist, And kept this I So be transfer the that there long-term step-up haven't because also term, third focus to is is see business stated potential the so but focus the divested of it thing organization on that not pace but lot whole of that of exciting business in classifieds, my we we've for as to think good and the value it short us a to all on excited and his organization. shareholders potential will only the it allow

Operator

Your Stephen Ju of Suisse. go next Credit from is question Please ahead.

is open. Your line

Stephen Ju

Thank Okay. you.

welcome way. Jamie the aboard by So

like sounds both want lot more consolidate more new Odyssey to unique inventory it So you a used. to as well and as and a

what make or buying see selling, theoretically, improve merchandise the what people are history you'll sure After can of things do as they the what the for up spend So they go but with up even wanted in buying have in figuring terms to company's given listings, out they you which anywhere. brought consumers they experience. spike what of sell, you and a maintain and And greater and a variety earlier can sold money sell hopefully in eBay. data with liquidity following that to on generating you secondarily interested they

eBay can on to what money thanks? on you they eBay, make that do that generated sure stays So the

Jamie Iannone

start so the liquidity I'll great question. one. Yes, with

expiration countries agreement. the One we're is do we really and the the able could and saying. PayPal go what launching benefits ability scaling now of of that that managed here, It to to of exact ramp you're we the payments changes that added several grow new with the and we're the with

to So wallet transference easy benefit. them payments we contained really so more buyers things their for whole and us gives that platform, huge to of is it on make make it to that a and the and sellers easier have can for obviously flexibility do

they've the to I and other it's getting played seen is because that would inventory of buyers on, to the sides selling. of there eBay marketplace, both bring of behavior sell so out, a doubling getting to so it they've say buyer just The them what buying getting thing just try is them like makes benefits experienced on better we've to just a them some their than try power more and

it's flywheel, that we're to with happy lean really something to we're into. going So continue

can which playing consumer piece bring there attracts selling on can the it. key of feel inventory had. really getting it back talked along really that we're it's buyers I've selling on we we the and on the field your the As new the with pillar when that's and of focusing because We that's of a platform about To level that of and question to beneficial open have the because in consumer terms massive I buy to SMB product is inventory, lot valuable ton have. say non-new of in to inventory season first supply potential at on that untapped eBay. just there where is $XXX always billion and after unique of great But product and attract and going that enormous opportunity you're it. I able new have this amount build that there be what can and an our fantastic that's not saying a in and experiences. is of we is We eBay we going We'll season believe to think not focus,

making potential. to really allows that so and we buying have experience extreme an customer And will everything nail the sure the focus about capture us

Operator

Your next Forte Davidson. ahead. Thomas of question from Please is D.A. go

Your line is open.

Tom Forte

I'd two high-level questions.

M&A know on dividend? topline and then I was from what like So you. your Do have preference to aspire what success you know FX-neutral wanted double-digit to Thank Jamie growth sales wanted sustainable versus capital second, versus I buyback allocation, standpoint? looks to a

Jamie Iannone

long Yes, experience really a focused create and on sellers really so the business buyers term. between improve look and overall we're is how what do in we the healthy

we've to can those but I marketplace core think will long that growth think of there term the long-term us we're a laid are, lead point healthy I growth. the What what quantify going numbers things out business. the So driving healthy to that we're I the steps where take a get to us

those to been really and the all are? about to going the want stick do of capital allocation, along to reiterate tenants terms that you capital talking just we're In we've what Andy

Andy Cring

think to a at maybe back share $XX at look it's over getting be shareholders business dividends at step I you of it's up and think to recently. buyback important to the we and little growth. step history through that We'll of done value we've create it's what is then we've for to billion our is or the what Look separation, view going $XX to if I billion since look done the most close marketplace either shareholders return back and

levers to buyback we're rate, M&A, and business to marketplace different purpose of performance So growth of those continue of increasing improving shareholder all value. the the in with margin, going balance

Operator

Please question from is next Colin ahead. Your Sebastian of go Baird.

Your line is open.

Colin Sebastian

like Jimmy, there welcome thanks marketplace start back the to technology and I'd for reinvestments. and going to specifically the vision longer-term the back

context roadmap as secondly that's what looks technology things science scale or there's things, transferring this the buyers on is managed like tactical buy part some a managed phase? the more on so seen was the I payments, only later, the and can already over, the that And data had AI structured that progressing, from this time this payments is with of eBay finally in stack, five over larger write in of managed on through investment now investment PayPal things formally that not how financing, or little four been so over investment are older re-platforming congrats that with the also away have pace with scale data and curious of assume you that sellers well. years pay last bit seller more hope then We I like you. the and a payments Thank but of

Jamie Iannone

on core core bit focusing season question, focused were inventory of in our the in think a we're on billion about part two is for non-new quite stronghold $XXX end really where the what's over an we do where it's there not and I is little those we opportunity. key the that parts, where key the so a experience that a it's and time technology in new and one Yes, has leverage amazing and verticals chasing technology season first a some investments how eBay

that's can buyer create benefit the together do for people business technology have we areas on of eBay connect. seamless competitors And and tools, the and that codes features, seller, and new those niche huge our away managed these so through where example more and it to feel effort buyers experiences those a that and we sellers flows it's pickup candid, in made small lot done magical and A kind money meet there's that really doing of don't and let we the there in a eBay, while experience, QR person should areas you business from be like payments take are know capability of be have for the potential on the we we shows exchange as eBay we is help categories technology I sellers. to if a we is, focus buyers of and goods experiences just and that certain that

On payments really what scaling business. is on we're the right focused managed now side, that

buy be do via in a partnership we'll it the that that answer of we'll got up pay about and and pay gives for sellers to at monthly how do we're have we've flexibility. streamlined there's be payments bringing and yes, we kind buying lot of of all or ways with talking easier, managed and continually opening hit the key earlier, your more yes, that We on, an do partner a work once etc. option But sellers to for and connect, PayPal. looking later option more But geographies, like on to So make for on pay payments question, PayPal us. platform selling continues now, to option that's to us point, more a help payments. remaining left make in opportunities do the

Andy Cring

along to see -- growth the but -- margin -- one with to X we're going time, remain maybe incremental last more we're just rate And balance XXXX. with the investments the of that commitments Colin, time incremental and through committed to least earnings I year, we to and us points Hey, thing margin want you'll the rate. get invest at from we -- my reiterate revenue margin from by script going to on pace way.

change no structure. to the margin So long-term

Operator

of Your Please is Wedbush go next from question Arounian Ygal Securities. ahead.

Your line is open.

Ygal Arounian

thanks guys, Hey, taking questions. for the

of terms about then signals just piece and positive payments, before to the geographies coming why from payments mobility Is pandemic, thinking you merchants, that the it US think GMV And the growth still better in really way any pace noted was it drive slightly So and of opportunities one much US is there where and for GMV what been? the little that quantify than in managed where on you're back way getting rates real the [indiscernible] you one those -- feel or was is any can than going to biggest And has of seeing why of the meaningfully managed has so peak. conversion, higher about level, else good internationally? growth of stronger good more? you how the of where still that's from And to -- macro any normal, the it, better but giving contributions international in bit anything brief the have some quantify Thanks. rolled out down a GMV the intermediated stronger just pre-pandemic stimulus for outlook really above? above forward? Is kind payments

Andy Cring

on one contributions. the I US second start think with I'll

any I'm it's thing best indicator seen we've an I is terms is -- stimulus to a sure some some back major the level. mobility. to globally particularly think to one at of being going to point thing, I a really driver. point there having in impact hard major is

the So it -- the stronger just to international US. than significantly regions, fair the and given the is say I think is impact in of virus US

post, levels probably of the versus think on macro guide to terms on question of to actuals. QX point relative I GMV, you -- I'd QX international In pre-pandemic the

of little US XX% and you international. back see growth the you'll pressure to levels the -- into high If a company you from a teens, of -- similar a to can maybe rate QX the in bit have with moderation start to --

in QX stable COVID relatively and QX. impact less with growth Korea from keep with internationally fact the much in to addition significantly rates lower and In quarter-over-quarter into mind,

So again growth moderating sufficiently but rates still than pre-COVID. higher

Jamie Iannone

positive. vast couple pre-registered and and Yeah. lot a fee which Then for structure will is same have very ago. for of things. did what buyer, side result a can feedback of new lot of we see signed two the getting open rolling friction. we I'd it a have a generally creates from payment so encouraging weeks of One say the waiting on out our the them up majority say the The the we're thing a lower would And fees platform when side, sellers that simpler buyer is them managed I on less especially the with

a behind are making And and re-imagination, We when it resources we and for the for what and it about to so makes is great It payments optimistic the talk And the experience. a excited experience experience. a tech-led just overall means of example. I committed that better. perfect put lot easier whole

far feedback both so been And by that's the that getting sellers. buyers we've and

Operator

America. Your from Justin ahead. next of go is Bank of Post question Please

Your is line open.

Justin Post

returns. team the certain here And see accelerate it you eBay. Great. overall do guess, is about it the questions, to eBay a e-commerce Thanks. real how you Thank M&A post-COVID change, is you. period company of the growth talk of management on innovation management it How little cash if of compensated? a now of you edges? to adjacent Is divestiture big really chance incentive here do growth, see thinking relative and has hopefully the growth? industry, talk think is about of about Could some big that incentive margin team Just could then big pretty back gone opportunities? Jamie, structure? the picture about Do I on the point this going welcome A couple for same, or bit is but kind change at at team kind there the through you targets? more a a to --

Jamie Iannone

Yeah.

combination structure of on over years bottom really hasn't the changed line. a top and and our based incentive it's So

what is the outlined. vision now that have opportunities focused the acceleration, say changed focus, I has On whole organization the M&A really and I'd the on the is

product Classifieds overall to you've of whole this StubHub reimagination organization and now tech-led these the three Now key from with transferred marketing, and that Adevinta, focus without technology, thinking got areas. about kind

we years, some to really turn on were at acquiring technology allow side leaning And that think like really think in relationships putting these amount yeah, selling. how that to potential opportunistic the into we we marketing, we of help accelerate around and focus big and across for efforts just look can of on And getting key business. our back the to so, going untapped But costs will do see focusing I lifelong and capture core going focus. us focus way, technology, all experiences buyers that verticals all a said I And CXC moving that etc., think buyers at after before, I in M&A it. a that of kind where in this huge core key we we it's trusted of idea on that's product,

Joe Billante

more. Operator, we've got time one I think for

Operator

Sachs. of Your Goldman last go Please question Heath is from Terry ahead.

line Your is open.

Heath Terry

future in starts that you given I the the path, level the really sort see? how of past the channel sort obviously, of the potentially there we tailwind the appreciate from working particularly the how of of to We how sort in that that of an in to a think opportunity. you maybe And maybe from is think want when customer of that think of would should obviously, extent side investment seeing that about the of than seen eBay to technology, you background path. dissipate, so that better what sort there in for Thanks. a about mix as marketing your see optimal lot you're side Great. is investments environment we're we've go want But and to about talked won't current here, about you acquisition down things

Jamie Iannone

Yeah.

the question. on Heath, side great look -- So marketing this a quarter,

were the acquiring. to On able we the are lean well marketing pretty that buyers to side, in we new

When small how talking also competitive just good businesses, about we but a also So just to in got communicate, it's leverage like advertising cable in buyers we kind up it's side spam, notifications, I things the business. opportunity on of both some we think better but marketing, of the with way. get years, email, And I there less the we've think environment etc. over how CRM is I massive that have lifecycle an help even talk the but performance our not programs, about brand the a the

focused also really So an that on. that be will we're opportunity

the the we after and On that attract we're kind different attracted. on making really looking newest channel demographic having the channels that for focused the I have Y acquiring benefit mix, and at social opportunities paid categories that and obviously, is it. of to customers on of platform. ones I are the talked of new driving would Gen lots the going really in sure understanding customer say that

maximize that get tend I leverage as so, ROI you'll off we're And I all to the that to mix in And we shifts think see have can of that marketing terms we that But And the not and talked buy power spend. buyer just the turn new slight get we the of about, looking the we think channels at. the overall, we're do we real really an that's unlock how but why that lies. the I how focused into of under on enthusiast. platform, new a model

Heath Terry

you. Thank Great.

Operator

conference you for today's your concludes call. Thank This participation.

now may You disconnect.

eBay (EBAY) 28 Jul 202020 Q2 Earnings call transcript