EBAY - Earnings call transcript Q4 2021

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Operator

Good day, and thank you for standing by. Welcome to the eBay Q4 2021 Earnings Call. [Operator Instructions]. I would now like to hand the conference over your presenter, Vice President, Investor Relations, Joe Billante. Sir, please go ahead.

Joe Billante

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

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

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

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

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

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

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

Jamie Iannone

Then will focus the and are on our in provide solid and quarter joining highlights preview And our begin benefited call for strategic our marketplace. sharing eBay. I detail. a we Good weeks. from afternoon, since will sellers making our us. investments will our you Day who everyone, on discuss in call. Today, earnings strategy the to end vision. buyers to At outlook Joe. Investor and quarter fourth in I'll progress marked growth of financial turn towards remarks, another finally, for sustainable X Thanks, thank short performance near-term in last over our by Steve, my greater of the The They drive I

and growth experience, We are increasing satisfaction the trajectory. and our underlying seller buyer customer improving simplifying

a highlight quarter. me few achievements Let the from

We than in are GMV with faster categories payments transition approximately completed with growth multiyear volume. now of expected. seeing We that global more represent focus and financial customer our impact time greater on benefits XX% successfully

of Our ad the volume than at adopted grew advertising finally, revenue and ESG our earnings we sellers growth guidance. above more growth high marketplace our as end faster business to We agenda. expectations delivered new products. execute continue And

results. made finished Charity carbon-neutral, sustainability In growth. the delivered financial growth addition pleased a targets, on progress with being We very our to and our QX record-breaking migration revenue we X% long-term of back eBay Listings payments I'm Promoted year. on for and

$X.XX We end delivered than of non-GAAP the also EPS, of high expectations. more

and the year, up For revenue XX%, non-GAAP up was full XX%. EPS was

response from our As about in the is the implementing. customers This future results, am our for I these I am more based excited are of proud as categories. to eBay's we team strategy on focused delivering evident

ads in with are about eBay parts than spend valuable delivering are December, focused outside to one In TV, short. they of marketing P&A is coming highlight we have grew eBay. is for in category with leading partnership and of of listings. full is who This growth. across influencers. QX, are next or sales choices radio satisfaction, trade P&A. very categories the We investing of and The are on buyers began passionate categories, hundreds enthusiasts social focus products across and These who Starting millions on of points GMV P&A in active XX% and we over is accessories what top-of-funnel marketplace. customer shop Many eBay of the in faster largest XX best-in-class categories multiple on enthusiasts the our faster on key globally it motors, the rest industry

increase to In changes addition, higher-priced we items monetization and implemented during saw listings in an QX.

the led focus leveraging of in are for unique early relative it trajectory ways. supply in structure. year and It's our in where better our business. to P&A more trade. from world, quarters, We new sustained parts to the higher continued category. cross-border to P&A unlocking at further category This the simplified make our performance makes have double QX investing initial levels. this for find Sneakers improve overall growth around With we to sellers, we over we These from during scale GMV easier to input globally. global changes modestly several In digits categories this to our have investments $XXX days, grow we been plan seen buyers

of stopping Part which Our is QX, operations U.K., into quarter, and Australia Germany. countries Canada, the U.S. in our acquired the leading authentication, Sneaker By bringing in scale year. being and flexibility transactions not success of X in to we scaled started operations. we a there. the capacity that U.S., other are we past But And replicated in the increased additional U.S. is Con, the Last authenticator in-house, we with major over cross-border success markets. authenticating is

true pre-owned select buyers XD for capability This introduced listings. trust also items. view increases unique, We for shopping on high-value

the double-digit continue for lower have leading and our double-digit U.K., are grow platforms. the of authenticity many Given customer monetization growth strong over and In a saw than by from also handbags, listing category also acceleration GMV GMV the the XX% is quarter-over-quarter, been growing the other Germany in The luxury guarantee, brands U.S. we saw and has in double-digit Based QX positive success rate we to on U.S. eBay. benefit to In driving number in initial the We are luxury increase reintroduced higher in Sellers as more this customer growth, supply feedback over take success in the watches program. $XXX. U.S. in sustained a satisfaction sneakers of total continues to double-digit customer sellers covered authentication to to in encouraging rates satisfaction. at we on

autograph we few by just in sold to In later selection unique inventory. ago, from cards And pass we than $XXX to for announced plan this ungraded authenticating weeks graded this sold offering a of more a have guarantee imports We all source cross-border expanded year. trading cars expand for $XXX include Japan, key over addition, single the and U.S. authenticity for

buyers Samsung And trust these are as like Refurbished a of eBay's over are significantly QX, experience smart positive sellers new products watches results like top-rated to eBay total has announced year. certified promising to can so mobile has we are eBay rigorous and And customer program This laptops backed by As a and expanded we expand the brands. now and refurb accelerated Microsoft, expansion make in with This plan Galaxy thoroughly are but our small KitchenAid. expanded by growing GMV back to reminder, to this activity early the like Dyson, exited guarantee. XXX program from increased inventory inspired sellers. destination and this products. more money further. had to Certified includes us confidence. from and tablets, XXXX, Refurbished, This rates. These a purchase saw from meet phones performance manufacturer, Higher satisfaction and in on to percentage even new standards for brands Certified adds trusted up greater Refurbished double-digit faster. X-year warranty are a vetted November, top brands we In extend products

made stores. sellers number and we In focus to of buyers add have all in of a video on pages We've seen benefited addition we thousands Buyers a and date, to item API our video QX their started in with content. that a listings To changes pilot to categories during rich hundreds categories, individual improvements shopping listings. globally. add get across sellers seller experience of

Looking through ahead, listing their tell more flows. to additional to plan by we videos enable adding story sellers

and capability Over most of technology we These have marketplace our increase listings date, significantly XX,XXX to time In leveraged counterfeits. has simplifying almost purchases in realized the a see scaling an are million buyers. has Another investment. while buyer are trust repeat is experiences. for are area sellers to QX, technology have are intelligence artificial $XXX Since driven examples coupons. to detect the using it. of a to and remove X renewed is In for buyer in essential new seller is trust sellers few over to categories decrease recent we we a how deployed GMV. launch, growth focus before Buyer sellers where been and it chance a million coded from third-party

a migrating more by for and completed to on transition results. This we payments. simpler Moving lower system. away modern resulted for platform has choice remaining fees legacy from financial seller the a sellers, better-than-expected most QX, to in experience, payments sellers In buyers the all

Although transactional in remove million unpaid been culmination for We've beginning. reality, friction provide a this systematically just items, and in can managing removed which effort, marks the and major XX trusted this we By the is money more multiyear XXXX. buyer services. approximately transactions flows, of friction seller eliminating

for are sellers weekend most paid major addition, faster sales being In in markets.

that traffic to eBay. recently our also from partnership to increases driving impressions, sellers with and launched In we allow are ways the a buyers buyer exploring rewards benefit U.S., Freedom We new scale. to Chase top-of-funnel

provided our growth buyer are seller We more value see ahead. by has community, and opportunities excited payments we the and

double-digit Moving of volume listings again grew up to at and million growth driving Promoted in both the sellers X%. rates due the ad number Listings, to outpaced QX, number advertising. in revenue, of In $XXX promoted. once revenue Adoption approximately

third-party listings Looking markets the we business, was to major and next at drive including new cycle products $X the advertising X%. during product, of to rollout fully year, the advertising, launched sellers growth surpassed full all in first-party billion, products, To the quarter. Express, more auction our markets. expanded and PL up both our ad

listing into feature adoption. drive this integrated also tools further to more We

click For we PL offering, our per cost opened for keywords AI-driven access recommendations bid pricing. Advanced, and to

beta for remains and experience, are product increasing a we exposure sellers. reporting this limited optimize as the we customer While in streamlining

traffic Listings, ramp affiliate more Promoted partner For external to eBay we network. the through continue

traffic external increased maintaining are ad search also over European to markets. pricing. We in traffic sellers Participating paid Listings from control increased conversion and Promoted while seeing

provide of new Listings material meted to out while rollout new products experience. a revenue carefully limited contribution our the Promoted buyer Despite QX. release, growth ad impacts these have products to the We in balancing

to expect new accelerate of as quarters and coming product in increases. We availability adoption these this the

Volume area younger than Another was last significant of XXXX in year from we e-commerce. grew faster demand by consumers. progress products driven pre-loved made products in where new

For and U.S., of GMV electronics Canada. year, we full the and apparel $X.X pre-loved in U.K. the in delivered billion

in tons In unique reduced a sustainability our metric also carbon leader These helped to and the XXXX. providing a used thrilled by carbon-neutral is in activity addition by to e-commerce we eBay purchases e-commerce. goods, customers I'm company, as goals. recently value on approximately emissions meet great recognition sustainability XXX,XXX received

customers This and as running, Dow comes progress eBay our Just up $XX measures year, For X%. minimizing putting the enabled employee XX of list the In raised XX%, its wellness. corporate is compared for over was fourth indices, sellers demonstrate the DE&I since our QX, in in year in here. program I'm list. eBay companies World eBay change, the And eBay Charity impact. globally. to American $XXX and XXth to raised started for it generosity. eBay Capital Sustainability XXX proud almost million, Jones our North The top nearly this to performance continues made and making retail third Just when million, we environmental and included the buyers companies, in areas us of climate X,XXX also ago. in XX% years most up and has in almost such tremendous to CNBC's efforts ranked overall When industry the really community raise team

XXXX this just This Glassdoor's few. honored Choice and anonymous Employees' to and Award. such year we diversity a culture opportunities, as crew reflects current award were feedback Lastly, name inclusion, regarding to from topics former employees values, receive and

honored company by recognized the to the truly who are it eBay is. We people be make

the on about talk portfolio team. vision outlined a March buyers, to upcoming sellers a company. Now that the and XX. revamped In Day July we increased clear on I like time, innovation, Since I and accelerated the of simplified for strategy pace XXXX, Investor focus our would our of leadership the winning of

before is happened the in both We ambitious also of in pandemic. This Their our a was advertising, targets. it disrupted global unprecedented short-term payments of and successful that in change strategy consumer early which business all with than drove behavior. results that massively working, the initiatives level stronger have exceeded is eBay demonstrated and multiyear parallel pandemic

Our focus categories are growth. are of buyers High-value spending and market rates returning to more. growing, are they

experience, accelerate saving empowering are their sellers to and providing tools their simplifying growth. them money by We

a driving growth way, our capital sustainable more are investments been with the rewarded along strong earnings technology investors Our marketplace. and simpler And significant have returns. and

we're introducing you new few with we more as next we ahead, team at Looking the to plans, Investor to look world-class few sharing about initiatives build momentum about Day. the leadership unveil our forward have a and established. we years will excited on along I our

business. large eyes our with relationship have and our to year. for world's X a They community. dispositions and focused employees thank like our improved and We underlying squarely huge deepening extraordinary our payments most would growth amazing completed the the In sustainable the sincerely on buyers for building closing, of marketplace executed sellers I eBay transition, an

during results I'll details on to Steve, times. over delivered doing our performance. you. tremendous to over these buyers financial the While more they turn challenging to call and and Steve supported that, sellers With provide so, sustainability

Stephen Priest

all begin today. Jamie, and on investor full joining you, Thank thank Slide of the highlights our with the presentation. for quarter financial year from you X us I'll and

detail. Next, operating through metrics I'll walk and in financial greater key

note and of expectations our and execution will QX exceeded the reflect I've provide uncertain results exceptional across our and relentless all financial team's my focus our Please throughout conditions been I off year. inspired closing or metrics, year-over-year comparisons capping amid at XXXX pleased met we otherwise. are eBay. with forward for outlook Finally, key an currency, begin by our operating before economic Q&A. I'll constant we we as comments Overall, thoughts note, unless

in we our progress performance growth made over XX points sustainable towards billion have Importantly, QX, ahead. to durable, the years than XXXX demonstrated a grew Revenue the in to growth. return faster in X% volume $X.X

For volume XX billion, $XX.X XXXX, revenue growth. than points grew faster XX% up to

the for operating Our XX.X% margin was non-GAAP quarter.

$X.X share XX.X% For year, billion earnings Non-GAAP we to approximately generated margin. at of the XX% profit full QX. operating grew per in $X.XX

dividends. We year, of and generated XXXX XX% grew and to to flow returned through $X.XX. free full EPS shareholders the in For cash $X.X billion $X.X repurchases billion

our a Let's deeper metrics. take key look into and operating financial

X% we following impact figures, was reminder, in a immaterial. change December The buyer historical payments growth of definition Starting our the the and of our of a As our the had but change in on migration. adjusted modest with QX completion for GMV buyers on QX trailing GMV year-over-year The buyers impact metric buyers ended active each XXXX. by decline. fell basis, active in We primarily expected XX-month XXX decrease the X%. buyers. million with active XXXX in driven was active of buyers, on low a a period same high-value representing year-over-year was over which value X% versus Growth

buyers And high-value buyers growth as eBay importantly, high lifted, up healthy to as for levels, on total spend have restrictions rates. at been even high-value compared to [indiscernible]. sold in to due fewer Although mobility buyer expand were continues spending and prepandemic

of Compared U.S. marked of Our an on landed QX, geographic buyers with X% of On which currency, XX% outlook. versus GMV end QX GMV our FX-neutral X% at billion deceleration an sequentially. constant while purchased in representing a XX% X-point basis. high GMV XXXX, GMV the basis, a grew QX declined XXXX, near and international $XX.X of decline grew

impacted Core growth involved Conversely, likely supply scarcity impacted Our numerous international to the U.S. in macro towards the during shopping remainder skew differential improved the GDP, quarters, markets U.S. dynamics geographies chain factors and and in with export in supply on have negative had markets. factors sellers have have but to Cyber our trade, Consistent notably cross-border a disruptions, other sellers online both particularly macroeconomic and international growth markets. December. been retail like period, domestic softness constraints impact stronger international due like which Other during in prior markets. non-U.S. U.S. our of than These by overall item contributed Five our and markets. international shipping the global activity benefited challenges our changes. inflation growth holiday were between factors from

Our U.S. a momentum which phenomenon. domestic in benefited from GMV largely collectibles, is has

of growing ASP U.S. the high playbook in as more internationally. categories addition, is luxury nascent are our the In faster innovation rollout

and luxury see of out improvements roll categories momentum we GMV our share build growth like the a markets, U.S. product greater benefit. which in However, in categories should higher represents international P&A, outside as

QX Our revenue quarter existing product we QX, category was and $X.X payments in XX.X% in also of revenue transaction as year completed was of demonstrating our impact focus the XXXX, in the contributed expanded we in incremental our of the by X%, GMV target. up meeting remain in of revenue and growth X%. take during XX our grew managed for payments QX points XX% Net quarter, We categories Under country our luxury buyers. XX by approximately of generated Managed with of categories. as billion updated advertising while migration. managed our broadened playbook. line full payments volume excited GMV, transaction and in $X opportunities innovation during XX grew growth business, made approximately the new outpaced Within definition financial P&A potential to roughly revenue outpacing coverage points. the Promoted rate X% footprint improvements about billion, our services our Focus to categories Listings other sellers up for in open points in

we gradually during products, ad needle of which our to the As new encouraged growth move by quarter. began from Jamie the noted, progress the Promoted are Listings

Moving down P&L. the

Our non-GAAP margin QX operating in was XX.X%.

variable the payment of payments. dilutive rose margins. over a due QX points revenue XX.X%, managed our payments, incremental particularly of as full operating leverage year, margin Cost XXX increasing from operating close managed processing notable from by This material reporting contribution to percentage points but by to basis given profit, XXXX. For was the X operating is was generates to year-over-year revenue non-GAAP the versus in which costs

run short seasonal around the margin in gross we With with the current expect migration term quarter-to-quarter. the behind rate fluctuations from stabilize to us, normal

offsetting post operating fixed as other expenses revenue aggregate, expenses. decline Our gross over by declined fewer in points X margin the roughly payments in

per earnings share. to Turning

repurchased we year. Contributions the We our investment losses $XXX million generated During with in quarter, lapping from share last conjunction mark-to-market $X.XX a delivered non-GAAP tailwinds year We billion of majority $X offset through the of per on flow of to price in the share, with up during the share repurchases buyback shares of cash portfolio. ended debt of approximately and We free $X.X $X.XX QX XX%. investments EPS, of GAAP of $X.X and as of programs. due our primarily payments billion non-equity and of per advertising billion. $XX loss cash an QX, as well share average repurchase accelerated with gross executed mobility generated

in Additional XX-K ASR available our filing. details will be

We cash $XXX representing a also share. dividend of in December, per paid quarterly million $X.XX

are end After cash, billion billion closing aggregate our which $X Slide and yielded deals, portfolio at approximately investments remaining Korea of detailed investment XX. worth Our on the over in was QX. Permira $X our in

valued Including billion. Adevinta amounted first remaining Adyen Our billion. of warrant shares investment the estimated our of at $X.X QX. approximately shares were We Adyen value tranche after to warrants total billion held $X.X our of during $X.X tranches, our remaining exercising

stake of in KakaoBank was Gmarket in And interest approximately million. was Korea Our value worth roughly XX% the fair ownership million. $XXX finally, nearly our in $XXX

summarize, our XX. tale XXXX year beginning X Moving on with full be to will To halves. of the outlook, the Slide

investments half pressured as we'll from the significant margins scale During tailwinds with the first sequentially. and lap of XXXX, we macro year, mobility

the underlying the half, entering year-over-year and we observe of second our encountered cleanest growth revealing power we've the earnings business. the pandemic, comps During should since

of an in X% and more mobility For approximate growth the GMV growth. the lap stimulus relatively in second as XXX to In we basis and Notably, significant to we points basis, remain closely exiting year. macro we FX-neutral decline GMV year mid-teens with to on period reported and forecast FX-neutral of prepandemic stable expect headwind currency. the an X% throughout mobility the an half, anticipate We first flat basis of on to a the XXX constant our assuming the during volume should U.S. quarterly decline effects. the half at year, the moving X% factors to modestly the positive forward, by full GMV phasing growing restrictions GMV global roughly anticipate FX to seasonality X%

a scale growth from our take to point of billion driven payments billion, year forecast XXXX managed primarily representing positive we We Listings revenue $XX.X as of contribution FX-neutral expand to our flat new expect We roughly rate and Promoted $XX.X X XXXX by X%. products. of full to increased revenue by

second to we before mid- in half, half expect first the single low mid-single reaccelerating digits to digits decline revenues the go the During in to in currency. constant high to in the

to QX, as managed As payments we we fully rollout. revenue expect relationship we and between the tighten lap GMV the exit

We expect non-GAAP and XX% year. operating margin of XX% between this

margins difficult mark should the during pace we lap ramp as point low quarter the investment. for up second and year The our comps of

EPS last a year funnel had positive supporting in and Our XXXX, years $X.XX categories. Thus, investments and drive these in $X.XX will growth. marketing products satisfaction doubling the of in focus rates We're investments are on non-GAAP we initiatives ahead. measurable forecast impact between sustainable categories full customer and investments these down on We improve XXXX. growth in in confident

During half last first expect outstanding to single down growth we the investments. year's and lap year, be digits of scale the low EPS as year-over-year we

the positive and high our half However, volume. the turns grow implies outpaces as second will the GMV midpoint revenue EPS of teens outlook in during

our total recently repurchase Board increased $X authorization to Our billion. approximately bringing $X our share authorization billion, by

our XXXX. consecutive double-digit dividend are quarterly per by We third also XX% raise our establishing dividend share, since to raising in $X.XX our

XX. Looking first billion, revenue forecast We and decline between billion and quarter at the a currency. Slide X% on constant $X.XX between $X.XX guidance X% at representing

and macro of XX% between results volume to points GMV lap last due we pandemic. for QX full We year-over-year the a strong be XX% XXXX stable despite margins sequentially, outstanding year-over-year X% project environment, versus a to between to year at eBay. down but XX% modestly uncertain $X.XX X COVID. QX, year down X%. is in basis. our in We was We up QX a implying throughout non-GAAP year take EPS an delivered leverage closing, year-over-year of on midpoint, expect to rate challenging non-GAAP extraordinary and operating constantly decline as and FX-neutral XX.X% operating anticipate roughly consumer to an We conditions behavior changing the $X.XX In and representing decline X QX,

more divestitures growth We to XX% grew and more still opportunities billion support on prior leverage outpace $X.X earnings services our in for them increased Our in working. of non-GAAP to on ad rates, revenue reduce marketplace meaningfully playbook managed $X returned strategic portfolio growth is sellers see investments and and volume We believe financial buyers advertising made to our and overall this will migration these through innovation year people, billion sellers, We satisfaction more generated to unlocked eBay. billion year by in meet the from focus ahead. businesses on billion many due delivered of years flow, helping in product after EPS investments technology our pillars. the $X prudent revenue to of top demonstrable drive that grow growth categories offering We've We from this proof friction billions our cash payments of their $X.X shareholders dividends. customer strong free our year, over our portfolio needs eBay. generated of repurchases and durable to and the significantly broadened completing

us I we this base a are circular improve on making are echo trust response carbon targets as we tireless on environmental have To science-based future year meaningful valued We e-commerce community, eBay investments steps in we are your our Jamie's right impact as by our and our whole. ambitious strategy give economy neutrality, continuous and our would in focus and like bringing thanks and been employee proud efforts as the to to setting XXX% the our life. instrumental to that sellers taken progress the to for driving path. in the to incredible achieving to their have the innovation conviction buyers

virtual your We Day at more map appreciate you future Jamie and community, very are Investor To hosting to forward to continued details road Operator? interest on I soon. and March now that, excited reveal will your XX. we our the take our look investment With questions. about

Operator

[Operator Instructions].

question Stifel. line first Your from from of Scott the Devitt comes

Scott Devitt

I have two.

have international for first, reasons. growth the variety been rates favoring a The and of recently, GMV U.S. U.S. diverging

in And flat lapping to time 'XX, international modestly so as the half cross-border mobility the favoring we should of dynamics, international U.S. to and supply cross-border? various the growth the more environment overall the point chain and one or differences which modest specific we that within get of countries, kind And And in the rate the assume time past stimulus dynamics number of I'm category. -- of due companies -- improves just if of considering we you normal are made other to divested you growth of open relative I change the you out again? the businesses, of GMV overall even versus positive but converge, could that when in the you in back second few just in through business marketplace has any get a reopening maybe months. to and to countries And to begin there be bolted curious secondly, on period considerably platform acquisitions has that to then valuations changed know direction

Jamie Iannone

Yes.

Jamie. is this Scott, So

international, a U.S. couple there's about dynamics on of So impacting the rate. growth versus last talked quarter, as the that we the differences are in

First, our business just we're international lower the what on growth, business. which U.S. inflation are macro the Europe in supply a about on challenges, GDP talked retail bigger and our We've than growth, impact in have seeing than chain on side, different different growth markets, the U.S.

a are by we segment. cross-border like sellers segment dynamics of our have our and the we're in cards, strong export trade than cases U.S. which demand. in by hits some favored some chain the video business, in same things So that And graphics supply the U.S., time, it of our are and challenges. some international At in more high impacted

nascent the our is component in business the U.S. international third really more are focus The much in than categories

rate and thing a with focus in difference has that, of But quarter, been still is the it playbook and it international. convergence U.K. cards that believe us category think few The that Germany we out products U.S. off So like Trading that as growth to our takes to watches, segment several will talked we've categories rolling in that help the the whole about. achieve you the is and the X between we than And the in markets. just international our some which just quarters will markets. other collectible the U.S., in we seen, is live this rolled for U.S. ditto they're to a levels that it where and saw stronger that really for quarters last apply

we've the We've reimagination. we've our and laid look drive are point I effects business out. tech-led what's it's But our different that authentication factors countries the and long a as investment convergence a of that will to some the that happening accelerate to to an supply is, asset-light as time. believe, as yes, example in properties that over So time, really over your M&A, most that on the recently, accelerate at where enabling to out, question On there. seen like with of great roll and yes, pieces say opportunity and with areas to we to would second be change said we to on strategy that play look us M&A the we way are continue Sneaker chain at categories success. sneakers, well will even other X consistent The faster Con drive macro number at opportunistic there's as services

enough we this that worked we're playbook think well remonetizing for actually quarter sneakers fact, over now sneakers the $XXX. In has

scale, gives us and flexibility, of So the it point the and that acquisition. was it us gives

Operator

from the from your Sandler And comes line next Ross question Barclays. of

Ross Sandler

up following Scott's Just question. from

to, to looking we with growth at I X% rate run to I for investors that activity some all focus were see little a category talked bit X% think, than the more GMV exit working 'XX, and hoping think initiatives on. the you're

And now growth up Steve, at mentioned that XXX% we're would in e-commerce terms I the you quite we So in managed of isn't payments we some of of new 'XX? aren't the end comp why the covered. higher easier the out averages that growth period? kind of that why hit rate guess Anything call opportunities then, still to you buyers? once up lower-quality seeing cleaning we Are

are a great. can bit out guys little what that payments, potentially roll elaborate be on would to in you Just going you

Stephen Priest

questions. Ross, the Steve for here. Thank you

I the eBay the made last significant very our of progress years. at would that say we've couple thing is I over a growth think in

very the to investments, gone category the we actually the prior working business tech-led exited reimagination through XXXX, driven pandemic, And focus very, the recall, right and as minus is at minus driven the the we've we've was made we've really XXXX, really overall our as left X. shrinking, you effectively. As which X. pandemic, playbook, We XXXX

-- cycle last of said, the pandemic, with half second mobility first sort the half, you lapping as year. obviously of the we've pandemic the significant associated challenges As year are very the through we

as The made. that sort As and that the said, progress years, cleanest categories, obviously like in delighted that we've that the about by rest we've over areas exit to We're platform. we the going the first focus of are well, we're reimagination growing year into is And at The we've with it the the said I'd expectations X% category year higher tech-led the is category. always those XX I'm at we to multiyear to the comps half, couple points than also half through got the growth. we've of process. is add, is from the exiting come into the lent get thing momentum the second X% the working. But a our of last with pandemic. --

and is that strategy very continue And to time. clear will so again, some it's it take very, working,

The Magnificent who the beginning. from completed of opportunities talk proud drive like to forward I'm friction dialing team. us again, the we But was looking you that of of being for as the We strategy, payments continuing to XXth items, be unpaid trust. initiatives and Julie the thing our payments. be we at a forward. what who seamless who I'm the have UPIs Very on would achieved end I away of I it have in experience platform to gives payments XXXX. event a investor obviously the customers, the a work our commerce both is would describe us enabled longer-term the second managed about transition, us platform is March. us eliminate going things with have we standpoint go is excited which opportunity to the our take March, on really and standpoint, will as on or in increase from sharing us and to joining seeing XXth and Loeger, forward, leading will the and opportunity our by

Operator

your Ju question next Credit comes on, Moving from Stephen line the Suisse. of from

Stephen Ju

doing and lot like SMBs to has for of automating ad smaller fairly seller are Jamie, are be the popular advertisers that seem that been them. seems with it base products those a So always of spend And that individuals. your

on probably pretty I be eBay may for but they more campaigns would sellers rather folks some their own, do -- them. would do want So have spending and the savvy, manage the to imagine might

And Promoted may So that of where talk can expand to your for be the be you adoption you for may in talk PLAs expanding can product? where about adoption of theme, external your about simplifying Listings the on do-it-for-me terms rate? terms you sellers you rate in

Jamie Iannone

Yes.

So thanks question. for the

So we agree with you.

we to multiple of of only sellers products of advertising benefit advertising the types think to not occasions. multiple is multiple So types appeal but having

that one which daily bidding, actually listings, is SMBs, opt-in keyword is then for cetera. Express, and are a our So an single levels, product product, X a years used fixed $X product promoter business Advanced, new on built X straightforward: external product; product. really et our just we've which campaigns, more which price, pretty billion first external, CPA-based is introduced last quite amounts, is the to that products: And easy-to-understand ones which a over we is for a sophisticated budget CPC so

product is meaning, And a that's our product I so because we're product, that say CPA-based actually advertisement. still I that ones nascent stage. opportunities in excited perspective. the out product products are that CPC actually sell like new the portfolio Advanced we're to round The years, and for what a out pretty would from the pay product, drive low-risk there I happy of a the X easy But when also is only

in not beta said is the trial, portfolio are we're take more to at continue drive what to really products. portfolio. like limited artificial continued a we're to the Thus pleased other sellers cetera. shows only just things and the that of adoption, et ROAS the been did So make it make intelligence spend getting products -- or look we products. of far, why easier And drive we've CPA and with the multi-years but you to we to optimization, And really to ROAS ways those our build in exactly in that for the it'll ad for effective have leverage yes, with it's return the sellers still us there's seeing. with opportunity But them adopt, on to also terms advertising that time

Operator

line Your from comes from the next Blackledge Cowen. question John of

John Blackledge

questions. Two

discuss investment being margin The than First, based on the GMV to that's the -- Do on expect you cited And focus spend a margin/investments. guide, XX% you margin non-focus fiscal op is sustain current of categories categories 'XX? in versus categories the on XQ focus 'XX question the differential the that op higher growth phased Could throughout second 'XX? kind and guide. in the 'XX investments. you then bit differential some

Jamie Iannone

Yes.

you margin I'll can first one, with question. Steve, then, and take the the So start

categories. category, focus focus will yes, additional the on we time, over be adding So

strength. Our very in on Germany, and Trading the a in cards we some market-leading that have a 'XX. U.K. very in strong is next parts we There one year category one differences. a accessories. a and category large had position. where eBay, from are come is Especially And position of

digits. If so and But X I significant why And well. Sneakers double declining continue business. been the sneakers. have rest of is would the question. experience marketing is satisfaction. really category invested to actually We categories critical healthy that And think took say, you ago, it's far, the had A+ for years, that specific We focus is campaigns. the remonetizing why that to margin triple We the will And category. yes, We've in there customer we're the what your a saw at in up overall, I business the frankly, take a second an that over built to now off. excited maintain doing built XX grew business. it. performing still double John, year in that and And we digits still digits category investing, we're we're just back thus fact,

the looking categories. to continue we playbook sneakers. roll that just $XXX we additional formula of out reintroduced do monetization 'XX we're to So to And to that's in over the in this part investment for is winning that have

Stephen Priest

John, Steve here.

of of There's one, position more you on margin give play we just XX% overall number me the pandemic, of the got of lapping business half, XX%. color year little we've as let margin guided Number items XXXX the as a for in much cycle here. full in we've to significant the volume the imagine. the at So you a that's which happening through deleverage as can overall is first bit

Secondly, payments as a effect. the dilutionary transition through, we we also sort that's went lap that of

opportunities And think XX-point we us enable finally, -- to have really operational reinvestment. the on made categories. structure work watches, on Jamie go we XX% and as to of we've delighted had. to then cost our the to core a about business have to efficiency we've on regard that doing identify over the and deep been, really forward investments been And to been of flip going with category platform. the the our a focus with of said, sneakers, about about take have our had lot On side, cost out trajectory turn tide that's result the the Think change tide focus that the think increase we with

in full in into we're to 'XX. by We're funnel leaning we be marketing leaning as going So to to be product. category go category going

start as will significant lap to the be but second the ramp the an also the last margin as year the we year, when, of continues that year we continue the rest as COVID QX ramp go to year be investment they through and it from of lapping firstly, of to the in the point forward. lowest go phasing quarter we forward. investments through So do for

trajectory shape So little hopefully, we go that macro a of but gives through bit picture, of margin the of shape XXXX. also a you as the

Operator

Sachs. from line comes Goldman question Eric the Sheridan next from of Your

Eric Sheridan

think growth facing could where how that of buyers you're far. and we environment, compartmentalize sort yourself should growth the going you how be those going it the to don't there a dovetails verticalized are you're buyer elements long headwinds gotten on choosing you've were over thinking from it to of were new sort we buyer of in in way buckets buyer of experiences forward. know if and out If of that tailwinds platform about to X to not some about trying questions back I so sort headwinds where growth and term? if So for but way, medium we the -- growth multi-parter to a there's of thinking the post-pandemic with feeds the Maybe about a buyer tailwinds of be characterize forward, and to sort build some to elements

Jamie Iannone

Yes.

high-value low-value $XXX since turning at look, last whereas shop buyers then X% and strategy High-value X So buy July back on buyers shift over X% our buyers a on are And idea year year. we on I've in at on you high-value XXXX, year. on When quarter, of focused X really X where up the who if about of buyers. who made high-value up enthusiasts sell the we groups, into in we've on buyers, buyers. were look buyers, number talked they're total are active down buyers, buyers the look in high-value times this year, it, X organization really of year focusing and refocused and total our buyers this

very couponing To for of XX-metric trailing this -- we your of ASP buyers is a question, not strategy both the to are So these XX-month metric. that low some stuff do metrics -- conscious were and doing.

And deceleration level, quarter. coming our multiple growing spend enthusiast at infrequent lot They this and shop to eBay period. we're for we right, it's the the planned is app. see across But the those call their that's healthy likely time that spend, more cup in of of a growing. the And quarter again in up spend some very see and $X,XXX-plus. enthusiast up. grew and a They from open a categories. they what right? something We quarters look each wake seeing will group, fact, So their that had buyers, eBay sellers, buyers, second buyers. I've it so these grab a met is coffee, slight enthusiast you They is when

driving to be like is focused cross-category we're So things on going of shopping nature the buyers. those what

but take on we acquire watches, $X,XXX buyer, in spend when watches, we'll go categories. so $X,XXX for And get to spend they'll a example, watch to other them in

and So acquire we somebody to having able from offer. them being get effect on into a breadth category this multiplier spend that the eBay across vast we

have, time. to and, we'll continue we'll high-value focus some of from healthier deceleration Investor may changes this different group, over enthusiasts some cross-category when in But XX that. see the buyers. frankly, We'll categories. making the focusing and what into on you'll look trajectory Day we right these That's that a see So our to whole we see detail infrequent quarter-to-quarter, patterns sellers. And on is we're on March lot at the overall, on doing strategy into getting go business acquiring more by go we're

Operator

Sebastian of the from comes question line Baird. next Your Colin from

Colin Sebastian

flows Is some focus Maybe you Steve, does half of the terms take maybe, two enhancements in that perhaps year second then categories. you vertical embedded recently. category haven't guidance. and really in comments P&A through impact as unpack well. how rate follow-up, from talked that the And I in around only for Jamie, easier were half? category incremental for announced on of if the growth growth to And the the those the wonder yet? change seller sustainable and size outlook changes the me pricing A then, changes could about comps other first secondly, there the beyond guidance the include

Jamie Iannone

Yes.

away So about kind where and reasons don't area. focus what as next like we're you've competitive seen, next for going to giving Colin, I our talk of is

We parts opportunity next and So us. talked dominant the that other and about we've position a great after investment. as large a leader category accessories going for announced market one is

it putting apps, what a from of marketing opening the parts in number funnel trade a full accessories well et as we're make category business, structure as up changes easier our cross-border and see to global leading starting to doing position all cetera. from vehicles do like You're parts our of to into product

forward, more so all on that worked that Investor our go depth Day the we'll into until that's path announced And this but we're lot a on we what focus seeing point. we've up categories in and at

Stephen Priest

the thanks I'll talk rate. Colin, for question. about take

through There on of a little rate a as through X of reminder, X ballparked ads. of payments, there's going trajectory XX%, we is -- a XXXX. we're just bit that as feed, value on that number the take around is So to go final our items but X

is we're starting payments. obviously The first to thing that lap

of and that about go as we forward. talked see the category significantly of through full alluded puts plateau grow pricing a some of be trajectory rollout and takes category In momentum saw to going to payments mix that's some obviously X go as an for and effect XXXX, sort that go comments, forward. we year terms obviously the rate Jamie ads so point incremental there's of prepared of earlier. we will And as of take result we continuing through primarily in the we And We're off. to as then went XXXX that we the

value The our other is for that great sellers. drive would we to thing continue I say

a managed through you result down rollout, rate payments. If about actually brought prior the to think as of payments we combined take going

and go for being great forward. still for eBay and forward offer of the we choice our those good as create sellers we value So sellers platform as go we extremely

Jamie Iannone

in talked We're good sell a So sneakers, and buy they buyers and right? can great remonetizing that sellers versus sneakers for of places us Yes. value over I for about A still is $XXX. example sneakers that sneakers. other

So that. feedback constantly bringing inventory to the we're continue other and our sellers the viewpoint categories that's from accessories, in community. in platform parts on. this great provide the for gotten make certain We'll how value and with we we on make watches sure the in about like of right we've changes And we did smart feel the that do to best

Operator

comes question Capital line of next Edward Your Yruma from KeyBanc Markets. the from

Edward Yruma

adverse of these performance portfolio, structures pricing question, changes as opportunities has? take of it, price a the that talk these ones And momentum for to categories me. a guess, extent quick platform of as strong you the follow-up of see you there the as do the terms about any you you across the some for you some sellers tactically? could rest the level the follow-up the to in of last the reprice with think do then are Two you impact first, in other number I to that, to when look given or

Jamie Iannone

Yes.

double-digit So growth which I in the maintaining And doing in general, sneakers, for saying elasticity very sell other quite and sneakers so. value they we're that that still we obviously studied can is the places economical their relative category. is a bit. what to And was we're best about true, a

you sellers CXC and our, But demand. So kind we our being to monetization. cases, opportunity example, our obviously what's do, rebalanced bring platform onto always for ultimately, look to certain in more at sellers the great the elasticity, various for that we're to category In we of than Steve of us probably at Other I'd promotions we're bring a value our back, Ed, for markets. making just point vector really driving rate. sure category is which looking advertising, increasing the across that, and what and terms we're take about the in said monetization board competitive. main by the

Operator

comes Your Champion of from Piper line next from Tom Sandler. question the

Thomas Champion

of think some on quarter-over-quarter. and of about categories to take a rate, the Not a wondering rate Just to you. for could result video on managed I one that transaction could XQ curious video flat take added transaction would content else discuss then, a go Steve, bit remained activity or that function a XQ, horse would equal, mix? from kind buyer core a Is discount the or evidence if little I'm you lower impact all beat that rate take of and little you listings. to bit. up in just And a a offering Jamie, dead the talk quick if payments little maybe but notice bit.

Jamie Iannone

Yes, Tom.

what say very, videos, I it's would very the days. on early So

video Excited our that feature. they the One though. from now can rolled store tell it is their just story. elements, eBay X sellers a for excited we out build about So to

it's One a parts transactional of model. eBay of just is not the unique

you So build a some and the lot. let if seller of brand look models, these to doesn't have million XXX meet At at brand your we access eBay, the really whole buyers.

really listings it powerful is sellers and is compelling. across think, the more I of same that, and for the so be adopt platform it. our One will true as more bringing platform. thing just And much video makes The more the engagement

I and from platform my description, oboe and lots recently pictures I compelling. It god, have video think more ago been even but lots about bought to of an was a X of them hear daughter. great, a of being it quarters able would

could You in categories. about think that lot of a

new So it's really early the be just an it'll listing for eBay. it flows. API-based quarters adopting core think our on and coming days. us our We're and sellers years, moving over exciting we But for element into

Stephen Priest

quarter say payments Tom, with with is rate, were to What fourth about. the the I'd year entered talked Fantastic work complete we we of to as we migration, take question. essentially regards the by regards payments as the team. great last

a in put the that, the that there category seasonality on mix. as bit you so and and And fact you of basis it, of got

It's just those two So to items. see nothing of there. a function

Operator

Fargo. is question Fitzgerald from next from Wells Your Brian

Brian Fitzgerald

little across bit in push particularly buyers preowned, A the the growth and young company. among about sustainability

how awareness tell association younger among with anything aligns you you with about those vision, younger talk in Just focus could if sustainability a little your of the more users, that about could younger us cohorts. and that bit buyer brand cohorts, wondering growth sustainability kind

Jamie Iannone

Yes. Great.

the preowned respondents right preowned the really plays circulation, they I a XX% generation of their Z of buying them pioneered We keeping last important that And Gen last in where goods into role landfill. a because in the items products in leaning it laid for said months. happy really And in e-commerce, has and into it's common even Z leading I'm last of out XX% to really we're and where Gen did is, July strategy survey them had of think into keeping Gen going. is leaning only next sold out Z but experience. huge XX said we recently, year. more the because not So e-commerce, the is become

perspective. business So an feel great perspective, from ESG we a also from but

terms World apparel of of of and in row. I about year for organization. We've America electronics. Dow we think you does, of about as third in other the talked indices in an dollars just If emissions, the Jones millions what recognition just made that hundreds preloved saved in a e-commerce Sustainability had North some we the

So what we core from so does, an be every in ESG fund. is standpoint, ESG think ESG eBay we to that should

So both growth. we and think standpoint, a from of into ESG business great leaning an vector a we're

Operator

for gentlemen, this today's concludes participation. Thank Ladies call. you. and conference you your Thank

You disconnect. may now

eBay (EBAY) 24 Feb 222021 Q4 Earnings call transcript