EBAY - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the eBay Q4 2020 Earnings Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Joe Billante, VP of Communications and Investor Relations. Thank you. Please go ahead.

Joe Billante

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

on and Interim today Chief me the Jamie are Joining Iannone, Executive Officer Financial Andy Chief our Cring, Officer. call our

to investors.ebayinc.com. We Andy’s the through Investor commentary available the of accompany Relations are is slide section which eBay during a the providing presentation call, website at

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

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

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

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

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

Jamie Iannone

on outlook. on walk over and you then with to Thanks, last will and Andy of quarter key the XXXX an last and Joe. year us. a I update highlights of re-imagination. great near-term for joining was I’ll our buyers discuss sellers to begin Good for recent tech-led the eBay. everyone, details some the today’s turn call call performance you Overall, afternoon, and of thank year, progress eBay’s through from

results. with that out the pleased closed we year are strong We

well high brands volume XX%, emerged Refurbished The we marketplaces experience top to products merchandise and performance record items. hard-to-find QX, as season contributed in gross strong in ahead our the top with sell holiday expectations. velocity of from many out certified also a saw saw in refurbished For and trend, grew completely. volume gifts sold-out our we as

Our in holiday U.S., buyers in during were in active eBay. Germany, bought UK, In that online the X. number the something very shoppers X. X the season. was And In X X it was in XX on

in than In more of the XXXX experienced surge, handle for all had for in this eBay levels. XXX keeping addition our seamlessly these during pandemic. context, X days while to has our exceeded years. levels To this put marketplace peaks, traffic platform peak highest we the been unprecedented global able open XXXX availability holiday a traffic to and last yet most XXXX, in

full points was long-term. the reinvestments advertising. grew $X.XX by volume, XX delivered which our primarily included quarter, share, For in payments and faster for And earnings revenue per than non-GAAP and driven the up expectations XX% above we

have a over dividends In added tech-led rearchitected of increased achieve grew and to I seller Organic X an grew per listed revenue buybacks. X% sold years. as of that’s roadmap metrics earnings and and growth shareholders the returned out the $XXX on and globally, platform. a in we business the active through capped billion our to both nearly XXXX, the non-GAAP few and grew XX%, in years long-term GMV, July, our $X.X reimagination grew our our Active buyers to combined. XX% sellers more the company, Our laid customer consumer by past eBay. results vision share marketplace small million we sides next for and year we billion base on incremental These and quarter. more for In off X% tremendous $XX

We with which experience. also providing significantly drove advertising, financial tremendous multiyear improved results payments customers while progress made a on initiatives, and our

continue X make We advancements sellers to ending transition, over million with significant migrated. with payments the year our managed

During XX% over In volume. over complete. of eBay on-platform the year the we U.S., exited of managed payments XX% quarter, the for with migration the

In we the underway already X addition Greater France, announced in launched, been markets Italy, transitions to where have or China. and Spain

in payments than QX NPS also of transition points started have Canada sellers and higher XX compared sellers has than to to have NPS to and managed Germany. UK, scores We sellers migrate. improved remain consumer more the satisfaction Seller from the who yet U.S., in

out use to and cases. to globally trade places launch of capabilities our on to roadmap This release toward course firmly we plan payments Over cross-border opens product remaining all sellers migration. and XXX% us markets, XXXX, path up payments roll all the for managed

in QX, to vast In deliver year, complete and majority least outpaced the of listings volume lean transition will are this their positioned the to promoted once at sellers As by operating in incremental business. annually of income advertising million well again into the grow be we as XXXX. $X billion revenue end $XXX growth in further an

promoted delivered lapped product a XX% year million that major a quarter, $XXX listings having launch the over drove strong ago. despite For up of acceleration revenue,

in double-digit part year, listings who on seeing, adopted sales are sellers product a increase. promoted average, full the to grew For because XX%. promoted listings continues This have grow,

in milestone We below well for Our year. new industry benchmarks. $X growth the tremendous of a as advertising see revenue XXXX, billion GMV, approximately represents this reached potential X% passing total remaining

volume revenue to foreseeable outpace the We expect advertising future. for

tremendous received that We the believe to as majority vast to complementary like Classifieds have we approvals. to can transfer is X close share update of regulatory create the Adevinta. of on to deal on excited track time. the I’d Now over remain highly We together value an businesses bring

subject working approvals to expect We the closure end the are regulatory remaining first quarter, by of which we obtain. to the

are We recently for exploring we business. Korean also our options that announced

first-party million paid program, experiences. these program Gmarket Our on new positions platforms, businesses BXC focus by loyalty a built seasoned and with with sellers primarily over customer growing tailoring and limited cross-border With X.X IAC, X needs local have a products from e-commerce and leading trade. inventory of to innovative members,

further will long-term review compelling of product process release, an be several remain we experiences lifelong our to same: we past our relationships information become is partner buyers. third, we first, aligned communicating information the for vision trusted the this to and strategic the with any this to in our building vision core priorities by cultivate defend material with new we to have update not enthusiasts; the provide towards experiences sellers; made now for second, eBay. launched In the for press our on As support will to until choice months, few vision. there three next-gen progress about I disclose. mentioned The strategic

reaction way we While from a encouraged have long acceleration several buyers still go, and the GMV by and sellers categories. in the we initial in are to

a quickly During watches, similar sneakers the U.S., fall out experience for authentication in to and rolled weeks the a luxury we later. few launched

focus for fraudulent driving We verticals a capability experiences U.S. we returns. is protecting experience have customer business. satisfaction, higher-than-average see these sellers driving categories markets. These put and growth opportunities buyers counterfeits are greater new product and other material in and to This to this significantly on and eliminating by preventing expand

double-digit by sell-through a For increase luxury driven we and higher saw rates average QX versus over higher $X,XXX, QX, growth in watches in prices. GMV

For we in $XXX, triple-digit sneakers over saw year-over-year QX. growth

marketing drivers great the of Approximately average the of XX% platform. customer pair pricing pandemic, $X,XXX eBay a of of significant is behavior Sneaker XXXX, eBay. and included total the due spent a the growth sneakers volume of on is While in of the the authentication purchased outside was rollout, of reductions that effects growth power buyer In who example categories changes. to over some a $XXX sneakers. spend

We time. investing expand social buyer views. partnering celebrities, Z X.X And in cross-category will marketing ‘Em new We TikTok channels, a we reach also Gen are continue been promotions. base, and shopping per to grow on buyer generating to drive influencers millennial famous over to customers. exclusive more campaign Up, called the more Lace To GMV including we and with athletes have launched billion

is non-new UK rates. outlet GMV XXX experience at offering Another UK, optimized This focused we’re brands with ahead area of we and in fashion an brand deep season fashion. double-digit strong In to of inventory fashion launched the contributed market on growth discounts. outlet products

in active saw category also listings and We QX. grew in the XX% buyers double active

the the priority Moving our key to for of second choice of sellers. becoming platform vision on

businesses In and to offer feature deals automation offers. addition provide individual more enabling to tools limits grow. enhancements small capabilities buyers. the buyback escape by in to sell with more custom and In to sellers to our uniquely to This help them payments of and eBay we advertising, allows added continue them we scale a QX, initiated to

$X.X seller-initiated For of billion over offers the GMV. year, drove

search for faster we work QX growing the delivering Another our win in small channels we off. sellers increase their than was stores. platform to for seller business optimize and newest visits their is have traffic The traffic ranking and experience, they Last, by XX% to on store in SEO on eBay sellers of to paying seeing in past to driving in paid are visibility XX% in our migrated eBay buyers done and visibility to have SEO. engine more new is our storefront. eBay. the native continued increase subscribers a average app to

in The for the almost friction major priority journey. we with XXXX, app this, relationships seller app, strategy throughout trusted half remove than evolved. it grow leveraging continues of buying third To native cultivate technology transacted our the faster global focus preferences lifelong the and has key buyers. our as been overall was In the to of GMV achieve to are is experience. buyer A us and business to

or and We in on million seller have both more item by drive like downloaded exposure creating Android, an it more XXXX. direct to and to made To share access maintained we item stores. was ratings buyers XX from engagement simplified pages, have easier our provided high app mobile, in iOS and than times

sort allowing users conversion they for options, faster. enhancing what streamlining are and relevance Additionally, and we find filter to looking improved by search app

by to One helping quickly While Together, was to X frontline vision, effort. eBay UK’s way proud efficiently we our by keeping report partners PPE we UK. leveraging in on the focused partnered social that National at milestone. December, platform and delivering NHS year to powered our communities. did we care more reached than delivered and on the and Health our workers items PPE the of portal a Service, our the Department to with significant Health billion power forefront to we this XX,XXX the purpose I committed providers Social for support the than more UK remain this are distribute by am PPE to last Care the eBay in in logistic

to is way the loves Another platform by eBay customer thriving provides enabling community a back. give opportunity that

in the charitable all inspiration. year of centered continues to a opportunity is is around has community challenging that Charity buyers for amazing. community with The an alive global year connection and the spirit globally record-breaking showed donations. During million and be nearly $XXX been clearly The sellers was eBay well. so and economic for for generosity raised many, our by XXXX a

Over invested around million Running. & the we course each. eBay’s new of training global XXXX, through community programs And These quarter, $XX,XXX through a number resources more the growing connect and will we package provided Running assistance access, announced further & to sellers sellers support Up to needs buyers. a worth U.S. Up $XXX eBay to the start the of needed of online of program. programs the world small small and coming In business like weeks, just grant reward grant last businesses eBay selling than

eBay, recognized we and have were provide action climate most our Sustainability mentioned once that I our year summary, time. to the help on past realize strengthen pre-owned the the our a the progress in vision for in all and commitment America Project metric and will we beyond. additional we sustainability Dow to value at business eBay, externally. avoided our most and and in enormous an electronics potential alone, XXX,XXX untapped transparency have to the making And and List As and through selling tons stakeholders. on goals of roadmap past, indices XXXX Carbon initiatives the we impactful being World people eBay. are first clear We A Disclosure the focus for of recognized emissions In have included again In is North their our carbon apparel the on Jones

year. Our will transition largely on completed be and this is payments track

continue to through volume promoted and products. Our advertising will other listings business outpace

To-date, and continue of we plan percentage innovate will defend experiences a choice we a new our more to more give coming our To will stores sellers to GMV, expand increase the quarter, years, majority categories. to markets of we that a the the only volume. platform more sellers, velocity. experience vertical global expand to touched to and for As have of expand but in build tools we in single-digit

least, to I the team process world they technology shop we sellers. invest will their To and we for dramatically become and in also but of how with to can consumer order privilege for we buyers lifelong when app know leading. we and in connect relationships, them not end-to-end in buyer will and simplify leverage marketplace channels, will deepen create technology, through the the all business to with this eBay We of marketing the spend continue to new the product deliver Last sellers. experiences and the us. best accomplish fantastic due engagement I selling have more trusted evolve with

the can we beyond. details on to turn live do for employees look over XXXX, customers to With more in to XXXX that, our performance. and together our what Andy? I will our Our purpose call financial Andy I provide in and forward

Andy Cring

Thanks, QX $X.XX free remarks cash Jamie. prepared In of earnings non-GAAP with share highlights, million while repurchases and EPS to cash starting QX, of $XXX billion Slide my financial $XXX shareholders dividends. will flow, through and $X.X I begin X presentation. our of returning we revenue, million of the generated on

versus X, we’ve Moving the line and to we with added year-on-year rates cohorts. point X% growth, to the the buyers historical X seeing on buyers, Slide the XX representing end active in ecosystem buyers acceleration are XXX QX, million with Since of a quarter. retention million third year exited

active per continue to GMV in the across base. buyer growth buyer see We

to Slide billion year-on-year. in up Moving of GMV, XX% we QX, $XX.X enabled marketplace X,

X decelerating GMV the QX, XX% X%, we’re at in volume X work to versus horizontal ongoing and inclusive year-on-year, of benefits see compared of mobility the up we did quarter, quarter, decelerated third our In up consumer U.S., versus the billion we across from growth rates, point point points X While verticals. was generated key off-platform points experience decrease XX% in and business QX. progress in in QX. a streams third improvements accelerating by the GMV modest $X.X from year-on-year, X acceleration from the September International a in driven growth acceleration Korean making product

billion the prior of For XX% versus marketplace the full year, points an $XXX up platform the GMV, XX of year. generated acceleration year-on-year,

XX%, organically, points by transaction of revenue accelerating points. was to $X.X QX up Turning $X.X accelerating our revenue We X on from driven billion, Slide delivered X, net X billion XX% QX, revenue, to XX% payments rapidly as migration and in reaching strength new In our on-platform the advertising. volume payments global managed strong over payments, in execution continued quarter. we expanded the of seller platform, migration up

to we driven straight In points revenue, payments managed offset X%, lower as other grow to mostly up million $XXX and and first-party from which points the continue take incremental addition managed listings mentioned, X.X% growth FX. payments metrics that the second Korea, basis accelerating lapping X versus Transaction was basis scale. and of to quarter, is growth. of for from contributed XXXX. increase, expect delivered higher the QX, customer brandsXfriends, marketing points payments a approximately a year-on-year in by Jamie of the point from XX by offset XX promoted XX% rate to growth managed quarter revenue services XX to and decelerated We XX headwind points, take accelerating by satisfaction listings partially with rate sale partially This continue promoted

revenue, XX%. we higher by second growth incremental the full ahead delivered marketplace billion, the in And expectations year, the payments up billion XX% half our In revenue listings. as promoted the well of the of as in was year. platform points X powered in driven cleared growth $X initiatives. of execution $XX.X generated managed and in growth volumes by strong For Year-over-year advertising,

spend driven as our Product by major to offset volume down advertising. offset Turning down investments non-GAAP basis by and payments. prior offset in volume debt bad and and payments Korea, marketing approximately were first-party cost QX, points and strategy expense volume development FX. approximately the Cost points managed XX leverage than in performed by volume Sales better we including is efficiency of year-on-year, reinvestments was basis driven partially point and was points, brand leverage approximately primarily partially year-on-year, XX over managed leverage. revenue charitable the XX have drivers, by Foundation. basis was rates and X by as margin from program Slide costs were delivered support G&A leverage vertical in offset basis volume were advertising, in down XX cost product flat our donations up investments inventory offset to in X growth XX.X%. year This control, partially losses by eBay versus expected. experience, up Transaction and leverage and was partially as operating by of points the

from X up cost of For our XX.X%, efficiency was net X review. the point points; operating volume continued X margin year, points operational and upside, reinvestment; related to from

Turning to X, repurchases EPS a rate higher in driven EPS year. up higher investments Non-GAAP the XX% growth in our by Slide strategy prior QX, by payments, offset vertical was primarily by growth we EPS, and a count brand and advertising. and $X.XX versus partially non-GAAP of delivered tax share on driven our advertising in in reduction and volume,

value partially higher fair last a was by including plus driven tax by in year. investments, performance, factors of warrant, rate. delivered the EPS, for growth lower change the a non-GAAP FX, offset same EPS income. the EPS continued value in reduction primarily addition $X.XX, count GAAP cost mostly The in volume, and payments growth year, in of up in program, XX% driven offset is the non-GAAP tax versus quarter by of by partially from interest the XX% share Adyen the advertising For the our higher in efficiency, we to increase and GAAP rate repurchase

delivered primarily in value fair rate. performance, the we the repurchase non-GAAP XXX% partially Adyen by offset higher a our of year, the GAAP growth driven tax For share warrant, EPS, by program,

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

taxes. free Moving of $XXX by a $X.X higher increase driven cash to line and by million had QX, offset with by of year-on-year, flow, cash generated XX, we very partially generation up of working top free billion XXXX capital earnings. flow, XX%, year in cash finishing Slide driven improved CapEx, cash higher XX% a growth, We lower strong

ended $X.X QX, an to Moving we In million. repurchased debt per price million the billion XX, billion. X.X amounting of we nearly shares of $XXX quarter, Slide and for to $X.X investments cash $XX.XX with of average and at share,

the We For total. amounting XXX authorization remaining. nearly repurchased $X.X million year, we average $XX.XX, share ended with at $X to shares price the year an of in billion billion repurchase of

like Moving update XX, investments, transaction. on to to Classifieds I’d with our Slide the pending provide starting an

shares. time. As on When remain said, X value tremendous valuation can Jamie announced excited XX, on businesses the which to on the has of $X.X billion was recent share the increased we based over we a that The levels. mix of complementary to cash value Classifieds trading XX%, appreciated billion $XX.X nearly the and over Adevinta together business based price bring highly create transfer by July

of taxable our the sale $X event prevailing that the any of portion billion rate. We statutory a net approximately And transfer currently we of cash tax. expect expect be would the at stake provide will future

an at increase expected billion driver end of an stemming is year-on-year. million and $XXX is additional we of This plan that $X to from value of payments transaction least valued $XXX at of billion in Turning incremental in the QX our $X.X at QX, of initiative, profit of operating the revenue the to XXXX Adyen, acquired is warrant XXXX. million

on the XX-K. more You Adyen information in our can warrant find

we remain For value about the excited both including significant each for provide, they of investments, can the generate optionality shareholders. these

longer-term on visibility potential later for the a the longer guidance outcomes term, we to Slide limited guidance reassess Moving date. XX, are providing to quarter in and the at we given first guidance providing will

continued marketplace’s XX% and billion, on in assumes an volume strength XX% driven e-commerce between improvements in are to For growth growing between $X.XX billion user low organic basis. and our projecting QX, we XXs, in the FX-neutral revenue This experience. by $X.XX

take further In addition, in execution rate payments we driven by ongoing strong and managed advertising. expansion expect

EPS We of XX% representing $X.XX non-GAAP to expect per $X.XX share, XX% to growth.

count, marketing. volume, continued and We EPS expect will share advertising, and in lower product be payments growth primarily driven partially investments by managed offset by non-GAAP

payable share a of We EPS range expecting the are XX. March it dividend, record increase GAAP raising of Board dividend X In date per in to operations of to payment of approved as the QX. February, with in $X.XX share. our shareholders be continuing to to from $X.XX our March XX% The per quarterly $X.XX will

repurchase expiration, no additional also Our billion. of to $X $X the share Board authorization billion, raising has an total approved authorization with approximately

additional toward in note growth wave full specifically, volume, we we the In our term, we our were facing level about QX. year, the looking And will QX to will growth we early disruptions was payments our we be supply we’ve progress world distributed on aren’t well to provide the making context strategy mobility days, of some believe by it do around we that sellers efforts guiding On at tougher significantly path driven first end are important overcome. near chain is While of that laid comps want the the for for these the stimulus deliver that we out, feel peak are and begin to to great forward. restrictions, in and lap as globally scale. while of to we will XXXX, into the positioned continue

maintain commitment XXXX, delivering versus We points investing rates XX% we GMV expansion long-term grow continue X ads On of revenue efficiency, our into outpace next nears of to to expect our XXXX. margin $X at faster achieving margin, we billion. seller drive will higher on to to least expect continue as than We operational volume while to revenue completion. payments the migration of into growth. managed to And by way expect continue

to to free balance existing accelerate XXXX, strengthened shareholders Throughout sheet opportunistic M&A return and strong market We by through our our conditions deliver we dividends core with while to within to strategy. being to leveraging share targets we on and expect flow favorable outstanding capital strategic cash debt our our improve and rates continue buybacks will tenants.

of strong quarter. our the processed fourth points at over in $X.X recently to a We by managed payments for continue in to rates exit structure improved our and partner decision in the optimize through year. In an our intention and eCG XXXX on the XXXX. Korea extraordinary fourth We billion to XX% of next-gen with buyers we market by in $X.X delivering of cash January. of on-platform in plan that options within we assets focused on would growth tough dividends, debt to improving will strong We the XX%, now, the highlighted bond trusted favorable our that We of billion. health in active Operator? our implemented for to announced and $X.X sellers, XX GMV was and this nearly returned summary, be and we $X our believe call by lifelong taking company. times, our to comprehensive including replace our incremental questions. ecosystem. next growth and do We buyers our at the choice delivering price business retail to million favorable strategy these XXXX portfolio there year. executed were points sellers advantage repurchasing while GMV XX cash We while the sellers. the buyers own happy compared year, we the experiences combined communities billion of of cleared underlying GMV value your advertising through payments strategy delivered quarter shares, not advertising, to shareholders having we We year, the billion billion employees, to flow in And pending XX% for with imaginably and added buyers. $XX grew $X for compelling phase and non-GAAP transfer cultivate promoted reflects deliver experiences, results revenue of We billion, a as and entered for divestiture review, free the the StubHub listings. EPS a of build excited XXXX capital of executed a of which And X We the become for answer we more relationships announced we in and shareholders. of explore help share the repurchases to valuation And delivered

Operator

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

line open. Your is

Eric Sheridan

to sort outrun the of in comp a some the I or you with of can. might business two, is much. the are a much through you just make to behavior to able make play investments sort Thanks ago. philosophically Appreciate middle color versus especially or vertical just how the moves bit the of the some the growth all letting be about have from to think respect for so on that investments just you on strategically to your investments Can sort sustain and on if how talk against Thanks or And the vertical looking marketplace you little year opportunity watches much making, much of you with the within the – you vertical running going how capitalize the to by have how the a going taking longer questions. growth already face matter against your you market you buyer talk place so to velocity either understand in of might much term? against buyer part make comping year Maybe comp you respect momentum about of over Can comp against to perspective? out much what in want to to from unlock the then exit sneakers.

Jamie Iannone

Eric. Thanks, Yes.

verticals Andy and then one first take the the take can me Let on second.

strategy rolled that at really saw look season those surely really saw if great we of rate those July in non-new and we I the opportunities sneakers, mentioned based watches the rates. growth categories on after out Refurbished, focusing you to Certified then we we growth So, being in verticals invested sneakers. on which watches, and triple-digit we strength that in laid And win. had we where and out

in decline. been remember, You that this had got was to a business

really to so us this customers. for the see the of experience end-to-end verticals strong And and our as on power shows it those focusing as

I so from to the us expected. brand our another brand And performed end-to-end and out percentage plan the a of category a GMV. new of categories years, an the UK, GMV, in single-digit meeting is those majority area while with well, experiences eventually coming fashion included will perspective where piloted we market ahead we outlet continue add ahead for really fashion represent double-digit to course of the of the of what roll that growth our we over XXX the sellers

kind And the more years. categories is and to to so that confidence the coming quarters rollout and of us over the continue confidence gives the strategy working that

Andy Cring

Yes, you we than growth feel see towards controllable growth. part in to of the the Eric. believe year your really stronger of the certainly lean we we a is apart anticipated we can question or the have than we noise prepared we as very now on second is strong there and investment. little building I the given progress we my us a lot tailwind going year, what’s a on when and as peel pandemic, bit are changed stronger model on from remarks, or a items. we made had investments, but of comps get entered stopped margin at term done that and in And And this stronger, if towards said longer of hasn’t bit like that the It’s COVID-related what this have plan to we clearly, with of have then with committed the the year to a taken great look on we got the approach XX% aspects on exiting beauty But initiatives we there. entered

Eric Sheridan

Great. Thanks, guys.

Operator

from question Edward with comes KeyBanc. next Yruma Our

open. Your is line

Edward Yruma

guys you watches, in third-party this they and quick Thank nice Two And ensure buying guess ones kind as guys. to what’s a I I Hey, to scalability you’ve one they guess them a system businesses? some new in services, of know strides see related grow as made it’s of done. kids game solutions have their for I customers, for those really that the or you me. you are of a the to the COVID If just strength first video and Kind strong to those holiday. buying believe. aren’t platform. continue some authentication sneakers not were follow-up what doing something I getting back you. getting

Jamie Iannone

Yes.

won’t buyer the like over buyers is and acquired the that see not seen frequency course for again. ones, and we’ve look come million XX when behavior, what a of they which is as things in year. just is and as on buy the cohorts, at then starting to we different to them And So means we eBay PPE we’re specific past we retention, seeing the didn’t strong us

do We’re turning doing turn on And how focused really a good we’re them is enthusiasts. what job percentage we a into cross-category them of of into shoppers.

cross-category other in going huge remarks, will that comes GMV. a and buyer that from of millennials it’s $X,XXX, worth as lot something and site. in is And also the a the of specific have focus sneaker lean in be also that part they Z who or buying into But our the we a platform. a and CXC, is end it. and growth XX% advantage mentioned platform, to So is lot coming of we to XX% Gen bringing of eBay the of across strategy. of that I And that’s because of worth into driving which for that only and nature is us is categories a be the sneakers, And $X,XXX up is critical

we’re ramped of the great operations we’ve going seeing up there. authentication, sneaker great authentication the And authenticating we’re doing platforms. and of the $XXX over every response terms amount now through In to

And are very percentage So big very, where a to working. growth. find we getting is small process is the of consumers their differentiator things authentication while really of look, a that a and quickly, issues what’s is huge there for part it’s leading sneakers and triple-digit guarantee are the that customers

we’re acquiring terms we’re excited customers leaning in and a in So marketing for we’re seeing. lot that and category, those of what in

Edward Yruma

Jamie. you, Thank

Operator

Sandler with Ross from comes Barclays. question next Our

is open. line Your

Ross Sandler

guys. Hi,

two questions. Just

international, looks is First nice there. it some acceleration you had like

are based it’s happening the in also Korea, on guess mentioned accelerating. UK but and guidance, You I that would Germany probably XQ. And again

question I and like XQ these years mobility like in you X macro area versus is walk the of I from was the of guess, paid, was just comment. like a mentioned just that ago. overall think, can SEO how company-specific So that second and And faster situations then lockdowns than that’s kind growing And XQ? much through initiatives X, you is problem

you. guess, what So just, unlock channel go-forward that on that SEO I to are be guys you a you that’s big doing new basis? and how for Thank could

Andy Cring

and less difference the the of Ross, a we On international quarter-over-quarter basis. and X spike growth U.S. international one. take looks an quarter of the bit and more QX of versus accelerating second fourth it rates, the unwind then down like That’s on and really I’ll and dynamics U.S. rates first played between it. split, with of impact there’s saw kind the U.S. quarter third quarter a how impact Got a in an international Hey, the of through. what

the keep a growth in U.S. the mind, rate from third So in deceleration little – was the in the less. quarter, QX

and look implied – guidance. really we what seen with or some when the around to what – quarter, acceleration – it us in it’s through in how third into our quarter first the since quarter more world. in all you So saw plays fourth first, September countries the for we and through we’ve that’s all see the played basically QX really it’s acceleration at And

progress payments but acceleration. again, growth and plays that’s So and bit better. and majority mobility contribute driven, of and of a But managed marketing the in on and driving we’ve to sustaining with large basis. going the as to regards a underlying to a But a product be acceleration search clearly, clearly, made of initiatives performance on is mobility the role quarter-over-quarter working well we’re the level

Jamie Iannone

been look, that listings And actually work think some we’ve in Google and Yes. our we a upper drives verticals, things the designers targeted which that funnel, algorithmic it. specifically there’s benefited say our of on we lower-funnel and number how we in some content with activity. I’d And which doing SEO, of change from. terms doing we’ve structure been was specifically There helps some our of

the of the certainly, organic to think us drive and consideration. and cross-category the general, coming strengths really is, important and But to directly, is traffic of helping in XX% us initiatives our that’s eBay. thing with drive the SEO our one assets I remember site is people to purchase on and of

Operator

question next from Our comes Colin Sebastian with Baird.

Your line open. is

Colin Sebastian

then I’m have it’s Alright. quarter. and throughout on you’ve number follow metrics competitive with been if you Great. perceiving are your I And Thanks secondly, of marketplaces if purchases. Alright, them cross-marketing, just is, the the on thanks. on XXXX call again guys coming Congrats maybe and landscape. of you the going initiative understand key Perhaps focus some there is on some that landscape more up how working guys. know the on to any on you comment something new how this to could up cross some cross-category categories?

Jamie Iannone

Yes.

on the buyers. it’s to I the for about So our continues the here look, it time, you sneaker I I the the be thing eBay. go important been driving If Since look cross-marketing, when XX% first back think talked a was say, at I would of important studying at to category. a the question example, lot represents them CLTV outside core broaden retention I that for we’re kind categories the and XX XX-day purchasing drive experience the in category, them. that out that really to first and looking of all of of even a that things customer that really

see a download our get on driving getting reason selling, driving are them just we getting to do of buyers. they or to watch the to why in kind the retention focused any technology mobile to buyer. casual X.Xx more And so getting them of that’s become why if we to to because come Xx really more to align buyer that them we as the to marketing buyer items across we app, excited save CXC that. to category, them big And as and is A to us a selling also of acquire valuable and shop then

leverage focused positioning. there. We significantly we’re introductory we great our the more CSAT working marketing And the verticals focus algorithmic, best data that So NPS about NPS landscape, that technology of whole talked indicator from is and science to a and AI, on the life competitive be and performance of our our we about. feedback sellers. really on buyers and especially improved key leading our really and us. that’s happening And good cycle feel really that in always experiences, really that is able seeing those what’s being to look, for kind And using and

platform, year-on-year than stuff years talked about making thing say seeing competitive year. than our That’s more moving is vertical XX And have right? is more just in is. most scale, our our GMV thinking so NPS, And feel So we we’re about that payments us amount. that, than point the X to where $XX do positioning sellers that we good grew that more payments we combined payment the grew billion a year, would combined. last That’s managed last really CSAT with I’d a the where are X.X, last higher about competitors

being So asset huge a for leverage able is and and to those cross-category XXX unique buyers, purchasing eBay. their have million

Colin Sebastian

Jamie. Thanks, Great.

Operator

with from comes Suisse. Ju Credit Our question Stephen next

line is Your open.

Stephen Ju

Okay. Thank you.

or have system promoted advertising. Jamie, page estate for of at think, looking of dedicated managing teams I management real listings previous legacy talked So forms about the amount to

in recently those buyers had secondly, yet a to you merchants trade-off in you China. of of announced rollout versus in make types are So the and terms managed And one the of where to both place decisions you’ve other? payments

benefit has theoretically you against take of part the think down some you of different should I So online help trades. forms accept friction of working this probably before. of can been cross-border with which Adyen do couldn’t you the that payment, And

funnel as about potentially this does customer So your acquisition expanding think well? you Thanks. help

Jamie Iannone

Yes.

advertising the feel billion milestone. So hitting first, the $X on great business, about

payment us new the that specifically faster to has penetration eBay not on the our analyze and process comfort continue we’re And on question our is to part we platform, opportunity to of type it’s it of seeing have the experience, buyers of do really is listings. bring look and a a and the great to the growth really we relevance, what when which unique it really buyer promoted total at different platform, we As on ability in degrade based managed it, us China and growth being coming is inventory. in for that promoted us our people business, and your on corridor win of gives options. X% total and on we payments, seller GMV seeing listings. Cross-border platform GMV of a strength by absolutely, terms it, trade in that lot tools huge of technology streamlining more driven the helps providing payment advertising look than that growth as have of at Greater been of always business On a and better the the the to a being we’re better

doing number the some terms we’re a between So as expand to will of of China, terms inventory, our think in payments what of of Greater deployed we in quarters speed trade and pack that we help business. plus forward the now cross-border

Stephen Ju

Thank you.

Operator

Thomas with comes from question next Forte Davidson. Our D.A.

line open. Your is

Thomas Forte

question. my Great. Thanks for taking

I give more but of an little was you on this prepared could on in touched sort you of So a the remarks, hoping it. answer

for you. your So on the to number assets a something the too? last additional wanted XX of And details you’ve capital asset, dividends? growth-type Thank months, be strategy, more long-term tuck-ins M&A, buybacks allocation thoughts looking over M&A and part, your would you get a are on changes on looking to more including or operating of your for made you

Jamie Iannone

really allocation. thinking is towards different nothing there Yes, our about capital

and invest us as gives model as organically return in M&A our at capital to both flexibility the business shareholders. back to opportunistically Our to look well

Our business generates free flow. amount of high a cash

exercising balance value for maximizing as track I our record as both think in And of we a have We well have strong shareholders. portfolio sheet. a discipline

So we tech we’ll anything we that going for or Andy, strategy talent that so out in opportunistically to are M&A to areas to do do the laid you July. look believe to at that? want and and accelerate add continue

Andy Cring

while eCG playing thing the think it’s – the do pretty we a add Yes. I what’s with only mean, is, I’d coming I and field with active like.

we’ve I at in things with think you can in some and will you what past, historically it done consistent be the what of StubHub if the done. look expect we’ve

helps remain to what to grow focus that. continue in the Our is And our to to back tenants at unchanged. And committed number do are and us return. to expect that. M&A, I organically, look shareholder invest it we do us just targets where business We can do to

Thomas Forte

my Great. for taking question. Thanks

Operator

from Tom Piper Champion question Our Sandler. with comes next

open. is line Your

Tom Champion

afternoon. here among Good Gen We’ve in done pre-owned Great. that reflects rising and interest the millennial Z survey goods work a cohort.

around in Just your trend just you that? seeing then well, platforms new larger whether buyer growth curious reflected you maybe advertising. And are kind Internet this as if are question with agree would second a for clearly and of this business There just saying this some iOS to SMBs? a year. opportunity an make And in among solution eBay Thank difficult ROI more think and advertising degrade you. will curious offer changes represents step small if you

Jamie Iannone

Yes.

pre-owned just area there, we only impact it’s the but also first and why because planet. on the the are Gen millennials, of attractiveness Z a huge absolutely, the So, focused on of on not

we you what sounds tons emission, carbon of sellers of And it XX% you’ve done. talked about much numbers a our at is that like survey, XXX,XXX of If come recently the the are platform. that doing probably we look so their little we just saving from that the that did and metric the saw those on for of so because on bit they some they’re looking on extra selling earn because and to platform of need job, and making start a actually lost they money are percentage opportunities money survey

that online. thing in remember other items their have that about to can sell, is $X,XXX that of than house that XX% that’s we less is The of they believe people important

customer you’ll there’s so definitely the that that the in millennials. the of And U.K., to which leaning focus we’re fashion Z continue see social element as attracting huge part sneakers, in you’re we kind our into focus a outlet to a but Gen of on seeing in that, platform. on you’re with what did that brand and seeing And us

Operator

Squali comes next Youssef question with Securities. Truist Your from

open. line Your is

Jamie Iannone

question. I you your advertising do, forgot didn’t before answer And I that

quickly. let So that just one me real cover

believe ads we have look, a essentially beneficial closed we because us is platform. that So for

click-throughs, that of all that the makes the of We’re the actually that we majority able impactful. see can actual where data relevance, listings, drive implications, to growth through the the promoted

future I sellers coming number the yes, that the terms build and of years. tools, to opportunities we’re to And as us, of for etcetera, coming some in is advertising, with make capabilities lot expand X% platform of continue which there penetrated GMV. So well a opportunity even see that new the quarters platform since as think gives over use the new more especially that only we attractive us to you’ll think, in bullishness at of

Youssef Squali

me? you hear Can

Jamie Iannone

ahead. Go Yes.

that. about Sorry

Youssef Squali

at on question. question. your was a down actually Excellent. it X, I look for a U.S. a wondering basis, a lot. GMV it in strong thanks you. I that. pretty if then quarter. which guidance slightly sequential at mix have to related Thank the I versus QX was is between look And Slide the baked impressive. Hey, look XX% you GMV expand looks One, Thank international? on at it breakdown, in that, I of for was your if you seasonally terms of up the can guidance year-on-year, I no, U.S. as taking like kind If what’s just into growth two-part

Jamie Iannone

just versus I was think guidance. international for about U.S. QX it

Andy Cring

that Yes. I’ll first. take one

of the similar movement to fourth similar. it’s U.S. quarter, Just versus on little kind we relatively the on was in question international – a earlier. the in Based the saw trends the

guide quarter the international the difference question, similar QX, then of in U.S. therefore into it look and the GMV real was far by so and only deceleration? in is terms quarter-over-quarter we thus movements dynamics. as in seen U.S. we’ve no country, So the first And what implied

Youssef Squali

on Slide yes. Yes, yes, X, yes. It’s basically shown

Andy Cring

– you of spike component or less sorry, one, if That – a QX is issue activity as again again, much hangover a in Youssef. of less QX yes, as it is – QX. That in one the I think, an

through U.S. in a stimulus, third of we U.S. longer of large third Volume quarter-over-quarter mean of the the the as dynamics. you’re result – had partially second in play clearly hung But volume I the quarter. through what quarter, So of has in by a activity result very that’s chain some relatively on, the been a down the the that as quarter, seeing from the spike the supply said, country in disruption. I end as And in September slowed partially then of as some similar.

Youssef Squali

it. that’s helpful. Andy. Thanks, Got Jamie. Andy, Thanks,

Operator

Securities. next question with Guggenheim Bob Drbul Our comes from

is line open. Your

Bob Drbul

guys. Hey,

questions couple really. of Just a quick

buyers, would are the Thanks. On what Buy is last this you the X% versus the second to X question largest XX factors just, you months? increase don’t versus buyers And consumer? know the we’ve during what the to put change with auction in over the type I It seen buying the new in guess any I Now period seeing in

Jamie Iannone

Sure, Bob. Yes.

look, in doing So the more lot retention driving And into a we the standpoint have really new those our buyers in capabilities work to acquire but reinvestment from that we not to platforms. there. buyers, out those leaned only to of on saw key the buyer some us in the in do verticals, the marketing doing the that a and really strategic we’re talking focus part, work of quarter, increase you about is, of

that a it’s to number also in that also we’ve we’ve leaning of been perspective. countries, impressed pandemic-related we’ve been of advantage kind So curves. drive from obviously, cohort and of seeing relative in to take been but that their mobility, And

to can in interacted unique individual billion doing one of one Now Sellers seller-initiated auctions, of majority offers elements We is us. majority different buyer vast vast make growing format, the for specific the areas we’re strong an Now are for and In products, what’s like with collectibles, auctions a platform. terms already remains It the category remains that’s business. of in as who the the the strength It But Buy all offer. sellers makeup and see of of is buyers overall, platform. on $X.X price do in which not offers, offers, the over offer have as inverse the the making offers seller-initiated of And strong, almost things we’ve Now like best offers. does and best sellers of example, the but on It their to Buy eBay ways the an innovated best that. Best years get actually in platform remains offer. a It’s seller-initiated negotiated in Buy only But is the to offer still

Bob Drbul

Great. Thank you very much.

Joe Billante

operator, for Hey, got one more. time we

Operator

with final Our come Brian from Stanley. Nowak Morgan will question

is open. line Your

Brian Nowak

I my taking for Thanks question. two. have

seen or have just to about to enablers categories as set to is I’d seen ensure you value traffic as for the to to what studying Which of the come categories Just one, types that color way the Thanks. and new needing from how the to about, hear us and the now. organically. the internally Then the And that the to last investments continue change are sort secondly, us the experience the Jim, business, what days I about qualitatively new are scale the talk been around have people still spring all biggest up of think of category? of the see U.S., you driving yourself first advertising be of the curious you business merchants? sort deliver XX have make sort of XX% to people first the comes the just about platform. of sort we consumers appreciate talk of that advertising to the being you’ve that who in to one key two of the

Jamie Iannone

Yes.

stuff terms after that, where it behavior stay-at-home, fitness broad-based type thing. equipment like was But that acquiring laptops equipment, over the course be we kind work-from-home started and really of continues needed of we’re saw to it buying and then went things the in to of that PPE that buyers. of year, people the look, or So and broad-based to in

acquisition spending strength up doing buyer people in their seeing what time have their are we accessories hobbies cars there, Certified from about. and to everything talking we that focused on from parts So, Refurbished verticals we been and or the definitely with and fixing are

in So in the that areas expanding and outlet brand on will we that the the like globally. in we quarter worked announced we fashion be the U.S. and apparel with

a different to the to about a where important we in second acquire that’s day lot all every parts what’s and better interact for marketing single getting to and is continues on of platform and about think closed-loop using because really that they category, have we’re there, able and is what it do we’re apps best I across them it but So and ads getting And those think tools little an applicable easy our perspective, of AI easier drive to how to smart us going able we’re for the and to them, about it’s make on and business. them bit that capabilities the of how more not using of websites be get in it the to help where just the BXC product how use more to with tools templating give to be From product. on focused doing to if numbers. it the sellers in interact have to the easier and reporting obviously advertising the a much capabilities you really make seller, ROI to CXC sophisticated spend sellers and understands easier make that it’s

thing displaying machine to we’re we and of buyers. and into just component a building are best the that’s doing. algorithms the learning then new big So, relevance what And also

enhancing expand doing experience products. to on continue we’re buying experience the what buyer we degrading So the not our while program ideally, through and, advertising the

innovation see the So just product and grow keep that quarter-after-quarter have product and near to the us the medium – continued reach the for it continue term. help of what to – is in you’ll potential outpace the GMV and

Brian Nowak

Great. Thanks, Jamie.

Jamie Iannone

Yes.

Operator

the answers. to Ladies reached over for the allotted remarks. company for questions and time I’ll of call the gentlemen, the and closing now turn end we have back

Joe Billante

Alright.

I can call. close all set. think everyone. We the we’re Thanks,

Operator

today’s call. conference concludes This

You now disconnect. may

eBay (EBAY) 4 Feb 212020 Q4 Earnings call transcript