January 28, 2016 Last Updated 8:32 am

eBay reports revenue holding steady in Q4 and for fiscal 2015

SAN JOSE, Calif. – January 27, 2016 — eBay Inc., a global commerce leader, today reported that gross merchandise volume (GMV) for the quarter ended December 31, 2015 was $21.9 billion, increasing 5% on a foreign exchange (FX) neutral basis and was flat year over year on an as-reported basis, reflecting the continued impact of a strong U.S. dollar. Revenue for the quarter was $2.3 billion, up 5% on an FX-Neutral basis and flat year over year on an as-reported basis, driving non-GAAP net income from continuing operations of $600 million, or $0.50 per diluted share, and GAAP net income from continuing operations of $523 million, or $0.43 per diluted share. During the quarter, the company generated $1.1 billion of operating cash flow from continuing operations and $1.0 billion of free cash flow from continuing operations. eBay also repurchased $550 million of its common stock and completed the divestiture of its Enterprise business on November 2, 2015.

Q4 2015 Highlights:

  • Gross Merchandise Volume of $21.9 billion
  • Revenue of $2.3 billion
  • Active buyer base grew 5% to 162 million
  • Non-GAAP and GAAP EPS per diluted share of $0.50 and $0.43, respectively, on a continuing operations basis
  • Repurchased $550 million of common stock

“We delivered solid fourth quarter results and continued to make progress against our key priorities,” said Devin Wenig, President and CEO of eBay Inc. “The quarter also marked the end of an extraordinary year during which we completed the spin-off of PayPal. We continue to grow our business and customer base while executing our plan to reposition eBay for long-term success.”

Underlying total eBay Inc. performance, the Marketplace platform delivered $20.7 billion of GMV, resulting in $1.9 billion in revenue for the fourth quarter, up 1% on an FX-Neutral basis and down 3% on an as-reported basis. During the 2015 holiday shopping season, the Marketplace platform saw over 265 million transactions across 190 markets, as consumers around the world shopped for great deals and sought-after gifts. StubHub ended the year with strong momentum, driving GMV of $1.2 billion in the fourth quarter and $232 million of revenue, up 34%, aided by strength in the sports and concerts categories. Classifieds delivered another quarter of accelerating growth with revenue of $183 million, up 15% on an FX-Neutral basis and up 2% on an as-reported basis with strong performance in Germany and the United Kingdom.

For the full year 2015, eBay Inc.’s commerce platforms continued to connect buyers and sellers around the world, with an active buyer base that grew by 8 million, to 162 million total active buyers, representing 5% growth. Total GMV was $82 billion, up 5% on an FX-Neutral basis and down 1% on an as-reported basis, reflecting the impact of a strong U.S. dollar. Revenue was $8.6 billion, growing 5% on an FX-Neutral basis and down 2% on an as-reported basis. The company delivered strong operating and free cash flow on a continuing operations basis, generating $2.9 billion and $2.2 billion, respectively, during 2015.

The results of eBay Enterprise and PayPal are presented as discontinued operations, appearing net of tax in a single line in the company’s statement of income.

Other Selected Financial and Operational Results

  • Operating margin — GAAP operating margin decreased to 28.5% for the fourth quarter of 2015, compared to 31.5% for the same period last year. Non-GAAP operating margin decreased to 34.4% in the fourth quarter, compared to 36.7% for the same period last year.
  • Taxes — The GAAP effective tax rate for continuing operations for the fourth quarter of 2015 was 19.5%, compared to 1.2% for the fourth quarter of 2014. The non-GAAP effective tax rate for continuing operations for the fourth quarter of 2015 was 23.8%, compared to 20.3% for the fourth quarter of 2014.
  • Cash flow — The company generated $1.1 billion of operating cash flow from continuing operations and $1.0 billion of free cash flow from continuing operations during the fourth quarter of 2015.
  • Stock repurchase program — The company repurchased approximately $550 million of its common stock, or 19.9 million shares, in the fourth quarter of 2015. The company’s total repurchase authorization remaining as of December 31, 2015 was $1.8 billion.
  • Cash and cash equivalents and non-equity investments — The company’s cash and cash equivalents and non-equity investments portfolio totaled $8.5 billion as of December 31, 2015.

Business Outlook

  • First quarter 2016 — The company expects net revenue between $2.05 billion and $2.10 billion, representing FX-Neutral growth of 3% – 5%, with non-GAAP earnings per diluted share from continuing operations in the range of $0.43 – $0.45 and GAAP earnings per diluted share from continuing operations in the range of $0.37 – $0.39.
  • Full year 2016 — The company expects net revenue between $8.5 billion and $8.8 billion, representing FX-Neutral growth of 2% – 5%, with non-GAAP earnings per diluted share from continuing operations in the range of $1.82 – $1.87 and GAAP earnings per diluted share from continuing operations in the range of $1.55 – $1.60.

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