EBAY - Earnings call transcript Q1 2021

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Operator

Good day, and thank you for standing by. Welcome to the eBay First Quarter 2021 Earnings Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today hand Investor Joe Communications. would to conference Relations I speaker your Billante, Instructions] like the to over and [Operator VP of go Please ahead.

Joe Billante

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

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

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

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

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

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

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

Jamie Iannone

call quarter. key Today, and my will thank some Then, highlights XX reflections CEO we'll afternoon from good begin for will you outlook greater and our first on as who everyone, joining the detail. performance months Joe, first tech-led and share over from I the the us. my end the with the of update re-imagination. in remarks, financial and Andy, will our of discuss At turn status I call an provide Thanks, to

to The the XXXX, volume first further revenues quarter technology and advertising. have Revenue and in start buyers and sellers since vertical payments grew is excellent into fastest eBay. we but due still grew merchandise of XX% $X.XX lean primarily for on year the marketing ahead our expectations. XX%, of grown XXXX expectation. was outpacing volume, to non-GAAP an our share per and investments, This delivered above earnings Gross

sides buyers consumers the sellers GMV Importantly, our more $XX million fourth are customer more are term BXC on X% $XXX quarter Active businesses Active is for positive in consumer X% row. sell. long the platform as grew compelling both and unique selling. engaging This spend joining the buyers, of metrics and to marketplace. much million grew outpaced CXC who in inventory as don't more globally. than bring globally, for our at as twice small a sellers to growth prices grew

We higher buyer. buyers are level, categories as at rates acquired seeing pre-pandemic over in and we're as similar increased spend well several last year customer the as satisfaction retaining per

payments initiatives of ended businesses migrated. multiyear advertising, of four over with our a and hundreds QX customer financial globally. increase our seamless and sellers experience, compelling on includes progress payments monetization thousands sellers Managed make contribute to deliver continued This results. million which of millions and have We to platform consumer

markets of at and this Italy France, an the by middle quarter. in even complete. XX% we're in eBay XX% track over US, faster on-platform of exited markets, previous XX% the Spain During up pace, the the on year. rollouts and quarter applying what China to quarter, remaining over In last volume, we launch progressed in managed Greater all the from we payments representing By learned quarter

complexity. simpler to end-to-end satisfaction cost seller We higher a to due that see continue and experience reduces

sellers payments, delays inventory. payment managed between before two purchase their that had years across tied many and to up platforms manage For

reached year revenue which growth migrate sellers QX resolved during transition improvements million the QX, that on of we by cost over will And $XXX deliver in driven $X and financial saving We including past of and of approximately s$XXX close Growth track in sellers advertising Promoted for adoption time up an are majority million our we reduced million conversion. Promoted the is a the in point increase inventory. fixed increased capabilities. unpaid million aggressively listings years, the volume More product for leased price promoted to We to revenue fixed-price incremental X.X was free annualized vast delivered ad Inspired XXXX. experiments, seller running of and $X to close stated through driven primarily Promoted our XXXX a which auctions billion Listings this innovation. by money. that which payments in In XX% billion, billion few complete by per end next managed payments leverages As remain income quarter. on goals of than investing of pain are revenue we transaction. in to Listings items in by model CPA success multiple the Listings risk click XX%. advertising AI capture and XXX operating and the outpaced by To

off consumer of clearly exploring capability and QX business finding also buyers listings. and sellers by exposure that thriving vision the prices. are results. to Small that long-term seller better items our driving at increasing unique demonstrates great traffic is promoted ongoing new a are eBay We expands are execution

a returning year execution earnings there's monetization initiatives. tailwinds our and multiyear notable to realized. over capital through portfolio seen the optimization revenue past due have driving And amount driven still value we be of are We strong and Despite tremendous of shareholders. growth volume mobility these in to a potential combination of to and achievements the

pioneer been And July, I'd in robust this organic brand, a Last special customer for culture I've always a purpose a of eBay. and the creates. reimagination as e-commerce a it ago set year remarkable out step recognized techland traffic and vision long-standing to we company I knew a inspired take relationships. to a I CEO. globally with like Now eBay when as back rejoined

First, significantly drive can customer growth core in we believe by increasing our we satisfaction. that

effectively Second, identify we third, consumer huge in these confident serve And to saw opportunity platform long and addressable and am to us evolve pillars on drive their the more term positioning we our small of growing relationship businesses and deliver buyers choice. to sellers better win a better three retention. to the need I to become we compete can our with market.

results Our very date to encouraging. are

the pursuit accelerating put growing and is are global and Our we progress to are to buy Simply best strategy marketplace is buyers be underlying working. and making our sell. growth in sellers our

Let above are and you. In triple seeing me In who buyer the core. sneakers of once as share of valued satisfaction we're US some rate a digit thousands we again. a QX hundreds launching above result. sneakers had $XXX XX our authentication Since verified examples with we growing

through range Based identical are are the addition, social In expanding we've on tremendous we to in channels. and seen the success our a major markets. engagement expanding rapidly Z other wide we Gen capabilities of millennials with US

other to in saw in XX% In cross-border centers the set this local have These quarter. in accelerate categories. we also authentication QX from trade US. and luxury in sneakers Australia unlock and Canada We and will the are watches in launching UK, QX growth in centers opportunities up XX%

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our key One is of advantages shopping. platform of cross-category the

sneakers our spend like enthusiasts on buyers watch the luxury across Our of thousands other categories platform. dollars

are we recently delivering we In raised category the more to in addition capacity. based create luxury in value this fees on watches investment

brands in to certified we've XXX out Germany We've over refurbished For velocity as eBay warranties low US extended also refurbished certified well see prices experience strong like love the the continue the to our with free Canada more signed up new shipping and as to rolled Buyers XXX on sellers returns. than already. products UK, extended brands. and and top expanded

over than of half XXXX's more launched setting QX, dramatically we want to higher the collectibles price at is business. this leader items was than category in image-based year. cards, Active To of the cards highlight the simplify recently market more $X eBay volume. the selling explosive trading of which doubled In prices billion next buyers growth a I We've our a scanning part year. our top category purchased buyers core trading US, significant all cards. across potential, selection to Now seen key trading last represents widest start record GMV where existing levels. with see we've for selling, in and

year. to it In aggressively new addition, to we introduced and service plan cards launch throughout trading track this enthusiast innovation cost buyers and forums. for shipping low market on more social and a We

expand GMV. Germany, months. area the us process plan a categories, customization. in and satisfaction, UK In to find bring this new customer will home, Another specific more capability the which allow we major we in such of manual, offer jewelry. limited in to to significantly to all But fashion the for seller. onto next goods can past, sellers We the new to improve focus this coming supply to all enter customization requests This believe this capture capability experience Beginning growth. will was platform, the markets more and as offer is and buyers month personalized and

is to working. grow I core As mentioned upfront, playbook our the

throughout of the a have innovations We out year. markets to more series rolling

only accessories this fashion, we've home touched garden, benefit so opportunities a far, largest of from and all and small eBay parts While electronics, have addressable volume global categories of can that percentage collectibles, playbook. our and

site-wide In addition rolling sellers. out we changes, all to improvements for category-specific are

number are sustainable believe consumer, maximize significantly complexity, of the and we changes increase grow and will these reducing and For sellers platform. active satisfaction driving helping We sellers value seller small businesses on the growth. on focused

examples can what to list time the to are doing. Here takes remove item. of XX% an are it up we Image-based listing of some

we multiple We trading the to subscribers our have we categories throughout increases talked expand activated migrated items almost our and this of approximately year. cards, XX%. platform have that plan quarter geographies to how to new traffic by store all feature Last we their and about to in

with empowered them we buyers. issue CRM quarter features, acquire directly sellers to allowing coupons to This new

Recently include and product In set eBay research for codes coupon budgets, Terapeak on Seller addition, listing markets, up to drive in insights including all packing reports. their QR price opened users free they we can and Hub quality repeat stores. several business slips,

and adding launched power display and categories, to we to and most feeds increase to their sourcing changes are Once that In we acquire are sell. also them. we more days making trending in inventory what and video our including engagement beyond. we inventory we insights acquire top buyers, improved first social help formats the To trust these sellers signals that marketing, products addition, and ad buyers, is new likely analyze XX

mobile-first a buyers received. revamping and leveraging are approach As key we an example, communications

We are through as Gen seeing social shopping, Sneaker increased and Z from such eBay millennial customers engagement Showdown.

longer our improving buyers, increased the continue we by buyers In engine's optimize of their and queries, help local shopping we our in pickup we search functionality to end-to-end added free items identify understanding For complex to experienced experience. community. QX, conversion

three buyer are our that a of long ahead strategic we but We all excited us. pillars have seller growth, volume, are of and producing runway

to decisions We will this achieving of investment our drive pursuit vision. organic both in continue and inorganic

While for business I'm economic all. of and I of employees opportunity results, the with are way more fulfilling am platform our our our proud purpose our pleased providing

minority-owned we As medium-sized Impact businesses part Fund of $XX into businesses everywhere, support small empowering underserved to historically to commitment million Vision investment communities. an Clear that help of small support the our and announced

We continue technology. up PPE and National to the that to X Care distributed Health now report items to we're happy eBay's billion efforts I'm utilizing Service support UK's

gift the over Asian Additionally, Month to raised company philanthropy New Lunar the We QX. we active eBay million and Foundation. we The giving also Americans $XX in eBay through Year supported employee Black remain matching quadrupled History charity. employee and contributed for Advanced through during Justice and during limits

pre-owned was platform of another me programs, purpose. that business. on our is ago, into eBay the an XX planet. has is investments the goods eBay's make inspires area but and re-commerce over or founded part of Since of Finally, our Many integral resale been adjacent core admirable the years at companies impact sustainability eBay

that today has Our community months. have than And tech us the items the results, In re-commerce items customers last surveyed just in position that strong selling putting of stronger buying V of pre-owned are common summary, coming Gen said keeps connects QX goods aren't pre-owned and we XX customers. the respondents last hold we that be in landfills. a our eBay. making library in progress out of We meaning become trades say into great on more thought survey with XX% confirmed and imagination historically delivered resonates year. year. XX% of the they In the A we'd sold US, and they these items pre-owned usefulness recent

because our Looking excited increasing customer but and retaining I forward, and strategy we core buyers. be do, we By sellers long-term couldn't more while are is business team. is There satisfaction, working. our forefront. attracting the to are work keeping focused are accelerating prouder of turn more With they driven day Andy? hard performance. financial the to the They our eBay provide every over and innovate, on at call details our Andy customers I'll work to to that, and

Andy Cring

prepared Jamie. earnings financial Thanks begin slide highlights remarks starting with my on presentation. the quarter I first four our will of

of non-GAAP $XXX $X.XX for repurchases our cash quarter another returning eBay. of and highest dividends. to great We and free through $X GMV $XXX of was of million cash delivered revenue, shareholders quarter generated million GMV, first while quarter ever. The billion We $XX EPS, flow, over billion share

XXXX to representing growth GMV XXX X. fourth per We've with retention And We we slide as continue remain the rates with since the we XX the million buyer year-on-year across exited added of experiencing historical to quarter. buyers quarter said are X% to growth trends. beginning ecosystem active buyers on throughout see in all the with line in XXXX, and Moving active consistent buyers, million cohorts. that

quarter. In the versus acceleration marketplace X. basis a quarter. XX%, to QX, points points billion the represents $XX.X Moving this of six XX% slide an accelerating On fourth GMV, eight enabled of we spot growth of up fourth versus

mobility US. is the acceleration QX, stimulus XX% additional key GMV seven-point to a of XX% of which by progress generated volume, of over and in GMV product our driven in site-wide translation grew represents dollar. saw five-point On the benefit increased weaker a we outside we're due making the platform versus at experience total categories, US, XX% As improvements, restrictions nearly

billion stimulus quarter, categories dynamics, core versus versus business QX, strength US, we a year-on-year and in and our the accelerating relatively in our driven up from XX% was payments generated fourth up including quarter the of X% in at Korea Our International mobility the platform fourth two-point $XX.X driven stable collectibles. year-on-year, mobility In growth. quarter, was the by year-on-year points XX by acceleration strength core in GMV XX% categories fourth GMV dynamics.

and revenue accelerating points Turning was $X to up revenue FX-neutral QX on on our billion, slide an net X, XX basis. XX%

mostly our our volume basis managed to XX%. accelerating quarter We On was spot payments of this billion fourth this continue we on $X.X driven new execute made In represents strongest said by XXXX. and the Jamie transaction growth As quarter have up platform. to of migration delivered since payments, a payments revenue, strength. progress seller from XX%, nine and points the migration great

managed payments, was growth which offset on-platform partially As half rate increase for better in XX% points we XX managed journey, global it volume take currency improved and basis buyers Jamie quarter mentioned, for over When category site, to business. hedging by our monetization points in sellers quarter, XX of revenue seller the expect incremental the mix the and to process growth contributed of the revenue we seller we started our for while impacts. driven XXXX. progressively economics payments and approximately both accelerating delivering Transaction addition versus of and overall by experience

advertising marketing of revenue fourth services of in the in growth XX%, We by approximately in to $XXX XX these driven grew up shipping. points accelerating from delivered addition Korea and all We continue and million which XXX% across to first-party dimensions. deliver other strength quarter,

margin partially slide to by offset XXX delivered volume In managed is QX, up reinvestments, product payments marketing and of driven growth, of eight This points the impact advertising, approximately by and drivers. FX. operating XX%. and year-on-year and cost we basis Turning major non-GAAP

year-over-year of was payments the provided inventory our scaling as revenue. additional first-party was For of each provide buckets, non-GAAP and points higher context will a of drivers. by take offset as in rate other program for four percent managed leverage nearly leverage expense revenue significant than volume I and Korea. up more Cost a

points offset as revenue. line two strategic partially leverage the margin were down with scale Transaction fully marketing basis dynamic fees were payments and processing and increases. primarily development As our end-to-end and payments two and includes XX contemplated in was offset G&A leverage the fee points approximately addition that nearly reinvestments was has targets. initiative costs deferred from to benefit in managed was payments payment managed losses a experience in as leverage down our mostly Sales was This reminder, marketing, XXXX a one our in by in seller structure Product points and control. in cost expense versus lapping online vertical managed down nearly investments by FX. investments payments and netting cost prior from strategy, year costs product a in protection half the been points of advertising. down and COVID-driven disciplined

slide in Adyen driven XX% prior $X.XX higher payments EPS Turning to in share delivered by by factors EPS The QX, the advertising, performance, EPS count repurchases, by was as of EPS versus offset by non-GAAP driven growth in and same was GAAP and quarter the warrant. in Non-GAAP the primarily for on versus we value our year. reduction and $X.XX investments non-GAAP by XX% partially volume, growth the product is nine, the in partially up mostly last EPS fair GAAP offset year. driven increase marketing. of up the

free growth, XX% QX very driven and $XXX capital, of XX, finishing had expenditures. lower topline with million year-on-year to slide cash quarter capital by Moving a of working a cash strong increased increase in QX, generation, we flow,

$X.X billion. shares QX, at of price investments share and with share authorization We repurchased to approximately we $XXX million. average billion XX, $X Turning exited per with to $XX.XX an we of the amounting and of quarter million slide of billion $X.X In for remaining. repurchase quarter, the X.X ended cash debt

investments, slide XX year, last we on value a Adevinta to valuation Moving at July that Adevinta shares and time. announced the was with of XX mix transaction classifieds the cash on and billion of based of when the $X.X

share appreciated of the billion. the price by had of which As XXth, to the $XX.X April Adevinta XX%, deal over increased nearly value

with to approximately portion close transaction net We of billion to $X tax. of deal the quarter the in continue providing the second the expect cash

an of to we $X million second the in end acquired at are billion of Turning quarter, the year-on-year. warrants XXXX The of at Adyen. first over quarter the valued $XXX increase

on can investments, XX-Q. warrant they of remain We optionality both for the more in the excited You and find can Adyen value shareholders. about provide our generate our information these the each significant

to Turning XX. guidance on slide

For volume QX XX% to This we representing XX% and on billion are basis, basis. growing FX-neutral revenue projecting is a basis, decline declines on a on three single marketplace single billion, digits to FX-neutral X% $X.XX spot of low an $X.XX between to guidance to XX% organic spot driven between growth mid assumes a high on an representing components. main This high volume by basis. digits double

was negative stimulus second disruptions. impact First, wave first chain the of ever, from lapping largest by mobility fueled and supply which payments restrictions, the our quarter

ongoing and quarter. are benefit businesses, macro payments stimulus we mobility factors, including from single-digit the this growth Second, estimate across which our high contributing on-platform

reach year-over-two-year and Third initiatives highlighted represents on which versus of global delivery have our buyers same us many platform. or Jamie the basis, of the On growth most as towards the high power teens in a our incremental sellers billion a than on driving of vision, continued our XXXX, $X GMV importantly, in discovered this which quarter spot and guidance is basis, and earlier. more rediscovered

to a marketing deleverage partially and representing to non-GAAP per investments managed lower strategy, and support of driven volume decrease, product our EPS continued $X.XX of X% in by expect share, count. We and offset share XX% by payments a primarily $X.XX in

rate effective non-GAAP XX% XX%. of expect We to tax

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

EPS our guidance QX share million of approximately on $XXX Finally, assumes buyback.

full While conviction confident these forward. as the context want for growth On are drive path continue to scale. our to we vision is provide year, we our in some efforts we aren't increasing the and volume, do providing on guidance will additional additional we

growth. will that result lapping, similar And could FX-neutral mobility when the forecast, combined quarter to continue easier those volume guidance. second half to likely second improve our with throughout difficult half, rates of second in While growth pressuring to

we be buyers, we will to of pressured growth periods expect GMV buyer lap For high similar acquisition. as

effective will to growth We a take our outpace monetization expect revenue rate. initiatives materially GMV as growth, continue drive higher

to in delivering on to at and on-platform margin for realizing migration We full GMV our committed more along revenue continue by strong the them. to And deliver revenue least $X remain X least accretion tenants least are On will halfway expansion allocation, be of points that the in XXXX. we achieving we we way XXXX, cash and billion free With regards margin $X.X target linear. and XXXX. the margin approximately we're capital Specifically expect won't with remain to at continue optimize XX% in on expect done XXXX, well payments, cash said XXXX, to than of We to way capital of will of billion committed and we structure versus within at to year. margin in deliver flow. targets and will be XX% our our

on buybacks. Specifically,

deal For $X the repurchasing billion anticipate we of excluding stock proceeds. full year approximately

closure. will plans We classifieds from transaction time of proceeds the for of the at update use

of sale, process which business, underway, parties. strategic possibility For review multiple have a our with includes the we a Korea from interest

we that we of on lap entered a the we to deliver conclusion, eBay rates, information second We all update At and currency in to share. on to interest have when of current expect we'll an be about as QX weaker we'd smaller QX exploring relatively quarter material And US finally, aspects excited dollar. FX. are provide our plan. benefit path for the the In record half, long-term a was and forward

on $X we of $X.X of at move are of as multi-year which and billion to initiatives, revenue. billion monetization We managed $X in income driving least and operating execute benefits next material revenue customers to billion the towards advertising and our will continue our shareholders, payments

flow that retaining strategy, addressable free customers growing core $X.X strong we double-digits. on and as trillion a attracting platform delivering cash increasing and for is delivering satisfaction long-term market consistent customer on capitalize and to disciplined deploy shareholders. are margins, least on in We're We our continue in in that On investing And we executing the to by to while accelerate our two capital returning a target manner we cash for at points compared on and we're will growth. portfolio efficiencies of in XXXX finally, improvement our reviews continue reinvest to XXXX, to strategically drive deploy capital a and and manner happy in for capacity acquisitions, And and the our a undervalued to balancing be buying your questions. now, disciplined reinvestment mergers answer we'd core, paying and stock. dividend back Operator? remain

Operator

[Operator Ross question first comes Instructions] from Sandler with Our Barclays.

Your open. line is

Ross Sandler

I can Hey, questions three that's sorry. okay, guys. if ask

assumes For the a Q-on-Q. if XQ at guidance, you loss decline the kind But get look XQ I it of flat like normally Q-on-Q GMV in for X% to of kind sequentially, think, year-on-year. we about

that just versus per going you and like high all how these spend can parse level buyers a to guess, into Jamie at burning is in the retaining off buyer about I context that. up economies much trying So, reopening what stimulus of reconcile said

the on margins. Second is one

thing lot. that margin you that coming cars whole last much of category out areas that year just other kind this cards. had coming Are just now maybe were changed? this would So, over would an on layering guidance. a And margin? of consumer point is in lower lastly activated in of discrete and Thanks the have just payment example nascent are other revenue categories there to the from being the the why like on you're Or that eBay trading XX% then like shape Is Anything because besides guys there be perspective. a like better at a from investment? trading all behavior you would in that emerged be this that else has

Jamie Iannone

training with the other two. the then I'll card ones and let about talk Andy Yes. start I'll

in another the So, on quarter us this we that Obviously, this the as that's yes, than and up see to in and think addressable today, more parts history that We a really and major changes opportunity home fashion, strong really These watches we've -- and great customization is from NPS, in we always items the have say, Collectibles touched haven't sneakers dramatically but we seller. categories can said opportunities. friction of over and we garden, in that do the experience led business which category-by-category and of in to and gives even was change we a great QX the it's cards. what as have the when in just which GMV. And seamless I'd the GMV this different opportunities of full in quarter, electronics, history doing record that half in performance. the trading more see benefit change We And we sellers those take I of had the similar $X one launched change upfront, between things setting. that year's the of millions really was core it buyers last like But a we makes And all a we case, playbook. site we some general, buyer it of way customer categories the we saw follows. and a that and accessories. billion and big do are to the lot that open where and what

Andy Cring

Ross. Yes,

On and quarter mean, as us, first the I quarter I our clearly, said, quarter questions versus QX for a huge other dynamics. QX was two ever. on the QX, largest

and growth we in persisted the in by of last quarter, our markets first of kind most two As first the those seen increasing main through the January, we restrictions into and driven year factors. indicated quarter late had

along quarter then in then a payments As we've were that has to said, to when we as the developments the learned March as the vaccines or GMV. continued in they the where throughout stimulus the peak when but quarter it stop, January underlying the performance things probably you've and and which US, will believe we from progressed, say and -- And you started of markets. lot it's between way then of hard different are back the of impact Mobility impact or got most today. the the very mobility And correlation in pace improved frame. of further it mentioned was time exactly impact, but the

of the on place So QX or then at QX you and stimulus quarter-over-quarter today between a the better when but biggest is for margin the fact great. difference in not outlook first be sorry, look performance quarter. basis, payments -- Underlying as bit beginning stimulus, a positive than be then it year. rate as said, mobility on in to was leads that the would for the the That be progress is the to the a your very we've well. continuing little on continues question to second And

to of the couple We're I consider. couple. of we said couple where you of we're continue the a balance and for you all to look be along next rest the hit it's growth said half We're target up think that again, on we things, and A going to year. way. to year to for And the at have down we're when things then and or -- QX linear. margin still not XX% going on relative the along, quarters second a going and to have

with without than specific we the on is will the QX growth to a year, things. half, walk of this bit I remember, the moderating is be, more think we're have One I amount would was two on Last higher and than a higher with our the muted into -- quarters And a QX. which rest year that of that historical trend. typically, the volume that on that three I bit year and think important deleverage. getting of relative But it's trend growth size impact think saw. the then some second

health. long-term invest continue for We to

does feel it delivering incremental amount to minor managing be it, op but pressure scaling and We're great It's a payments is working a then to does tremendous health. we margin operating the what you income it's with target. So of about towards bit a is and call for and And come great of it longer-term did we're P&L. progress business going a that margin, on which problem, not quarterly rapidly.

Operator

Sebastian next from Baird. Our question comes Colin with

Your line open. is

Colin Sebastian

you for off, questions. the Jamie. first All bigger I question right. guess, Great. Thanks picture for

talked of additional bit some a advertising. about planning product the You with

on markets? monetization, broadly, with side, the if perhaps the orientation of And periods so bit the seller more marketplaces over side, to different dynamics ramp term shift secondly, of on with seen other then Or model opportunity comps. about the you additional like do are we reinvestments upside I see obviously this the the And think last you ad But we've see longer spending year there? much how more decade. margin see an how eBay in a little you towards overall given wonder,

And of a bit it like short-term basis? And this long you Jimmy, so how progress a to if year last outlined invest you verticals. year division to be happy with term do need your sounds far on so able with necessary? and and weigh you are the how the you're this quickly, But a the performance year measure to going pivot

Jamie Iannone

Yeah.

the side. on first So, monetization

think about a because left payments. that return advertising, you be look to from Since are part, advertising both revenue lot our products about with seeing feel of to them asked ahead the are we sellers about their more able spend. the opportunity perspective to we growth there's on velocity. -- of and payments I'll ad great And in talk So obviously leading move business great help in a significant the

experiments quarter business. we're our we're So three basically in is out advertising what or new that, pilots announcing this rolling

our placement being first The for auctions.

growth business. that we've been date to on So has really the fixed the just price seen

our is which potential sellers further their our off growth We're at new that to CPC-based exposure. for So opportunities new vector. a testing sellers, even be we're will also for increase a And looking a capability. capability eBay

A to saw And to add to opportunity look this is benchmarks, long I value Overall, that. only in look monetization as of are in an X% if of for continue a quarter, opportunity at we significant watches increase category. sellers fees -- think as to the our example will opportunity. we continue advertising, you adding the sellers great at continued we sellers? there, we at still it's look for when to value that value that we and above be creating that we GMV. we're there's And our So that because

driving row if double-digits. and you July, quarter of past have declining a with we side and the out strategic On investments, laid And idea NPS verticals we GMV. that changing reinventing where on look the triple-digit the at the of the second experience, started on category the specifically in plan sneakers. had growth the the business a fourth this the is results in few been This in quarters, is

watches quarter XX%. to Our last went from XX%

satisfaction we're and XXs in the though importantly XXs. More customer metrics seeing

really the of applying And business. to so we parts it this think other of concept

Like like said the focus years expand of big majority to continuing us quarters follow have that and roll that going opportunities you're invest and over to similar the out categories So what all next categories. electronics, coming fashion additional I to accessories, is playbook. upfront, our and in and parts see

in continue growth we've couple in talked what balanced the to of already going way done opportunity. I a we spend that we're in marketing And as it a especially lot over we about with of do what the July, past areas in as managing to So see quarters.

Colin Sebastian

Thank Great. you.

Operator

comes question KeyBanc. with next Edward from Our Yruma

Your line is open.

Edward Yruma

you guess exclude back much for question, take was take services and question. sense some that off-price Are UK you've I are at Thank up guys percent taking of if total that uptake step US? allow to the previous fashion any the verticals it as so been follow-up as take take out watches. Thanks moves interesting add rate? overall make took Jamie just timing there opportunities to fashion. in on rate? Hey. are to specific some doing can first as the I in guess more guess, a on you. there GMV? verticals, I these rate large to you rolling to then muscle I to the then that you tests look continue rate, rate and follow-up you as that take have And advertising know would these base And higher you a a of that how

Jamie Iannone

Yes.

of the example can operating your off to continue look even actually advertising going -- of income The obviously, on watches, creating on us of kind experience and lower to experience. sellers Why we category-by-category that. we addressable drive we're new sellers. at for are penetration. have we categories And what the believe great low double-digit they're on And can at focused high that are rate, to of So to for $X.X if the fees season business. the in at for comment least majority because are a look vast on with take it's basis it's really kind think non-new $XXX ways what of million market. our On you And payments a of billion we value we site, opportunities single-digit, though is our there it we mean eBay will be? our looking a how is this total large we

coming there's and re-commerce, the in the think so we of we items. more opportunity. think in about pre-loved younger of And what said of And core are lots to especially interested re-commerce generations back more I

so is it's so why seeing towards we're And leaning much CXC. working we're that. Also in this strategy with

rates. our inventory, buyers selling. buyers So the it lastly, now mentioned that doing are that to that up growing we us try But but then been the be while BXC actually XX% the as the of the brand the of programs performing as side market all I has casual asking part and not We're XX%. us And outlet UK went well. we've and been that versus those brands brings initial program. our when unique of on in outgrew what's of growth calling into ahead turns valuable kind CXC sourced and build only is they double-digits again, out And great before, tests only twice -- to

where finding and us from playbook rolling the out things this past seen we're them few then in trying different you've over quarters So markets, success more broadly.

the and quarter. with out us we're now to lot And in Australia a success see rolling had So UK, Canada follow playbook. to that this could that sneakers and you US we've of continue

Edward Yruma

you. Thank Good.

Operator

Our next from Piper Sandler. question Tom Champion comes with

is line open. Your

Tom Champion

afternoon. Good Hi.

wanted Just to prior to the follow-up ask question. a

curious, that I'm that are could to sellers reach what last and think be metric, was of by You've experiences what are new just these And clearly work like curious I could experiences on? with you lot could category really about of helpful. if what to quarter, just comments GMV quarter less year-end? seller fourth or see? But they'd of you done would quarter. achieved remaining then on you XX% hearing the framed you're a new where maybe focused features update Any payments reach And pain Jamie side. as if Thank it and you by points maybe covered this talk the kind be on in from that single-digits and that the the than advertising GMV category you.

Jamie Iannone

Yeah.

is on that we look it categories be really from categories. feedback the buyers and And is coming single-digit categories seller we've what of working lot on still So laid of able And in the and seeing in over to the all getting far that across see these sellers thus of said percentage if ever that change in say consistently we're obviously and there's some is type pretty tackled the of what opportunity the believe a probably major half I'd especially the that it. -- over it's to business. the territory. years thesis in frankly half that's for opportunities to over out that this time we GMV side. over us wanted been addressable we've opportunity We worked we're we're and There's and

So a on which side, migrating store of to we're platform. That's platform NextGen the complete, our stores all mostly the for better them. much is

This out through cetera. packing remarket slips, can capabilities, been rolling long-standing a of buyers they e-mail through et so quarter which we're CRM has theirs, that ask to

since drive started XX% -- we've payments from from really a reduced -- transaction would we're have actually getting now sellers without of or for been a has paid. manage our but unpaid even significant. purchase, was payments sometimes like points that company their launched community new talk separated divorced the And one pain seller things for -- much request that's sellers customization The long-standing eBay our the the this about the so didn't close launching of technologies, bunch business. pretty for and existed to migrating then is that been a We we're items in sellers. we that's So ability that and by

pain to really image CXC launching why happy making want we're things then all it that's because able to And to a is be it’s the couple side, us the platforms. really really So point to make about of easier, the friction for like up your see a eliminate that minute them. you we on items of of short the base process listing? take experience on get and It it to

education, around focused the more things business, drive business. So, we’re a really CXC to doing continuing seller that lot on

be rolling quarter, the world. each think out So marketplace features of the making the best friction this taking in experience the I address this all key we'll of that thesis and really

Tom Champion

you. Thank

Operator

next question with Mahaney comes Evercore from ISI. Our Mark

Your open. line is

Shweta Khajuria

comment Mark. I buyer is for on growth. you please could was Shweta if wondering This

that You laid out some are of the you continue initiatives to taking drive growth. to

reopening? as part the electronics, you. And the out big do in face fashion, So plays includes are I you Thank for thing, as could where be today parts pointed percentage that you then think a shift accessories. to may also a and some, your cross-category of And of -- how some what and -- currently collectibles, have missed but sustainable think you GMV? second how buyers? think do you rate do and they of garden, top home of category growth a

Jamie Iannone

Yeah.

on buyer globally. million first in buyers count So we QX, to added look $XXX X% our active to

behaving like to buyers seeing the million XX those strong pre-pandemic. that buyers added And we've with year we're past is the are what marketplace. Over performance

and not We're of to days for two-year for eBay enthusiasts. the XX time sure experience where returns. pandemic a to free up, seeing period long-standing is NPS certified categories So leaving. the and you now have warranty We're the buyers on great site. like coming focused a that refurbished have strategy the converting really sneakers, that And during just amount they focused first they're good you're in making is on have and watches a the our especially and what

categories. acquiring and We buyer and they in Gen of sneakers Z of that. sneakers. where with pleased nature We're buyer we're really spending $X,XXX they're acquire $XXX watches last is same outside size thousands these other buying seeing our we of the up thing of the of The assets where a eBay. watches cross-category dollars type another new we're a buyer; So end about categories of in but of sneaker talked the high-end best one outside new quarter

to cross-category on, we we idea of get transact the on is it's So marketing categories. a purchasing of cetera capturing with and worked the in lean a for really multiple lot because accelerator us and recommendations we've this centered them buyers to in that technology continue and AI built huge et buyers having

Shweta Khajuria

you. Thank Okay.

Operator

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

line Your is open.

Justin Post

There's you. going this to not facing of be just it's a year and parts e-commerce lot comps the moving with

what this progress for what Thank you're we be is so specific that looking you about progress best versus do And think think e-commerce the year as really share this you. Is spend? market your measure matches should making we if And it? show way outlook, it year? to milestones your GMV

Jamie Iannone

Yes.

growth. about on active strategy those is that, the with the performance. core So I'd two-year lot growth pandemic stuff but a at And we'll we're by. growth I the of the excited there, Clearly that performance some and that with buyers looking of seeing clearly buyer basis buyer, go-forward anomaly at we're year that had that the pretty QX the we a year over we're being be in the a last with really is that and such last look, one which we're looking then mean thing pleased we're on is the extensive say we're of an last is doing lapping long-term

next our we revenue I near the think to I XXXX, And at is So trajectory projected in the of playbook the we're is category looking on the investing And from we at me If to growth. thing think the quarter, perspective. that for playbook I thesis into the But revenue were at place in short-term This going really year. on. changing going of you versus stay X% is by look focused a we're double-digit that for GMV medium we're look declining working. core to what in growth prior put team is the if this variances coming the growth future. in see things

out pandemic. the good where about coming we we're So positioned feel of

Justin Post

Great. Thank you.

Operator

comes from Stephen question next Credit Suisse. Our with Ju

Your open. line is

Stephen Ju

much. so you Thank Okay.

And follow-up resulting versus payment I So friction the be anything to before? in that buyer simplified through purchase hopefully to as about might is has rate the now say the velocity? there checkout that go and increase penetration guess hence what a how Jamie, or decrease be to And -- US can had overall seems here, in, how approaching an you to the a conversion line finish the is the those the merchandise that up it still seems should trying collectible work as multiple be be might PLA what on enthusiast of should advertising, questions more being CXC an unique, sellers or increasing earlier categories Thanks. where thinking type is homogeneous advertising because we transactions sell there items, end that of fairly or of for best still portion appropriate probably gross are a for to value like item? some

Jamie Iannone

Yes.

not first would now to buyers have PayPal, et of longer Apple card, credit different the more Pay, cetera. no So on I including payment only how up debit, pay two choices Pay, accounts. side, you set yes, to have But say, Google

guarantee. to money or manage process process longer returns back no two a It's You in different eBay one have areas. claims

one call unpaid makes a it the on more all I on just the because run ability place a just it's the it file experience. that too seller simplifies buyer easier. the much to but to business on dramatically them also dramatically for whole mentioned item makes it us easier streamlined to keep then experience their payment So and eBay. manage the business a helping and earlier example And They in it's for

testing of model of that had really Promoted just we it the kind see has in PC model more unique opportunity of with the why for have for ad exposure for items point feature the we've Listings, GMV. get launching that we're X% And and On we're those still of only simplicity really But CPA to every have at and our But adding volume of makes auction opportunities really the to The beauty cost It's acquisition gives is launching penetration. items, promote also longest after They the lot across of and opportunity the really category capabilities. been go a before, a and the of to to across of model people it listings the set period of a per price every them. said not single percentage push I easy. still it. the of even different way it increase just the and it's we're that -- we time. different Like want on GMV.

Stephen Ju

you. Thank

Operator

next Our Deepak from question comes with Research. Mathivanan Wolfe

line Your is open.

Deepak Mathivanan

for Thanks guys. taking Hey, question. Great. the

on between do categories out geographies on color improving but trends, potentially quarter? past in easier And expect mobility be of parse getting trends the what are second terms comps saying similar further And GMV one-time once to terms seeing items GMV later beyond out you on can kind comparable potentially are first XQ? navigate second could and then mobility. around commentary But So there you second the those? are certain always second quarter. volumes provide I in can progressively also you're know quarter, that half reversals in basis XQ you there's some with reversal specifically some coming of in you of

Jamie Iannone

I'll Andy the Yes. the let take first and I'll one take second.

kind board about across on we talked laptops, the people category year. business. those that board And So that went panic everything And types kind stay-at-home on then in the of then, really piece, we across of buying was over related the eBay. by to fitness year saw of of of expand into our and categories, the electronics last the kind was, needs health things started course

think really we Andy a of of take the let it's about change this as last buying second backdrop year. So against part what you were year the I'll just that.

Andy Cring

dynamic for provide because second guidance and of didn't half the outcomes. environment we the just look, range And of the Yes. wide

modestly look are right. as for are the they through year. easier the and When we go QX you You at comps QX

The I'd perform. we see to expect to say second piece, business is, the continue underlying

second There's certainly wildcard And macro it's the incredibly stimulus, that to of factors, offsets heads. up improves that It's that open to and comps comps, possible second we mobility predict. the and to the in as of a that It's some in mobility half. think just regions those. accurately easier benefit the all mobility the hard predict the hard in is quarter see where scenario. it's this -- I some

Deepak Mathivanan

it. Got

Joe Billante

time got one for more. we've Operator,

Operator

Nowak Brian Stanley. from comes question final with Our Morgan

open. is line Your

Brian Nowak

Barry job these -- now sneakers Thanks of sold my is I question. cards. much you've Sanders experience. authenticated a a better done And about rookie watches luxury as and ask for taking who to and tackling it great card, and someone wanted a handling with categories trading

ahead to the half, the you're So new of constraint or XX%, categories going look platform? to slowly the you're XX% to on to how of of we redo, going that of categories be stronger assuming sort sort are technological is redo the to on as you about of rest the main the back interface talking rolled what able XX%, have GMV And XX%, to more the question that you yet? you're as the is, dictate going is sort quickly XX%, you're to next of going sort think

Jamie Iannone

Yes.

in NPS overlapped build need the order to terms the that, first make that have a on the of or piece, some category So say I'd thing is to features capabilities cases us. winning in we in categories for

took expand that to once. build the months couple and authentication build weeks next we a but of us So to out geographically. it to then we're category in out, couple it roll able a of It

think We're category them and But a is, I impact lot to category want NPS drive what on I the importantly, roll about And to where in will to categories to building to applicable geography, and we're which for we're would don't we're across board. to is significant a the focused that do there's significant trajectory we're we're that playbook. it actually specifically that so, and that, then the of out of intended say And we've the We components a and the what across a able in that's competitive pleased with make the broad growth areas, significant going for next customer sure roll that really features which most we're of continue just experience. true reasons. of in talk really specific a before, out change a pace, really pleased terms be drive seeing experience. change set done or in

us feature, just you're so, feature category after continue going And to category. see after

that's across categories. we're advertising, impact and say not The the is payments only second investments site-wide across I'd that our of but is all and that apply just tools, business. the and investment is same is to search for seller verticals thing whole the in going that our true to API that capabilities Clearly, A business, the that making. lot rolled have investment true out, which in across SEO, our CRM we we couponing investments the

site-wide about vertical the those in really to is NPS investments as but the think way So amount I change kind of lifts categories, good well, a all which of amount a them of, categories. of investment significant

and that's the about strategy. That's So think how we it performance. we're really with pleased the

Operator

participating. questions. time Thank call. further no This today's are There for you for concludes conference

You may now disconnect.

eBay (EBAY) 29 Apr 212021 Q1 Earnings call transcript