Thu, Jul. 16, 2:15 PM
- With expectations fairly low, EBAY has rallied to fresh highs after posting mixed Q2 results, announcing a $1B buyback hike, and offering soft full-year guidance ahead of a pending PayPal (Pending:PYPL) split. The company expects Marketplaces and PayPal to have 2015 EPS of $2.95-$3.04 between them ($1.72-$1.77 for Marketplaces, $1.23-$1.27 for PayPal), below a $3.12 consensus.
- Also: Confirming an overnight WSJ report, eBay has announced it's selling its Enterprise unit (formerly GSI Commerce) to a consortium featuring P-E firms Permira and Sterling Partners for $925M in cash. The deal is expected to close in 2H15. eBay bought GSI Commerce for $2.4B in 2011.
- PayPal metrics remained strong in Q2: Payment volume rose 20% Y/Y (+28% exc. forex) to $65.9B, with a 27% increase in merchant services volume offsetting a 1% drop in eBay-related volume. Many expect the eBay's breakup to open up more opportunities for PayPal to strike deals with eBay rivals.
- Marketplaces, hurt by Google algorithm changes and tough competition from Amazon, saw GMV fall 2% Y/Y (+6% exc. forex) to $20.1B. U.S. GMV rose 2%, and international GMV fell 5%.
- Prior eBay coverage, earnings release,
Thu, Jul. 16, 8:04 AM
- eBay (NASDAQ:EBAY) reports payments revenue rose 16% to $2.26B in Q2. PayPal new active accounts increased 11% to 169M with 1.1B transactions processed.
- Marketplaces revenue fell 3% to $2.116B as F/X played a factor. Marketplaces active buyers were up 6% during the quarter.
- Total operating expenses +10.7% to $2.29B.
- A new $1B share buyback program is announced.
- Guidance: Full-year revenue growh of 3% to 5% (ex-F/X) expected. EPS of $1.72-$1.77 seen.
- Previously: eBay beats by $0.03, misses on revenue (July 16)
- Previously: WSJ: eBay nears enterprise unit sale (July 16)
- EBAY +1.43% premarket.
Thu, Jul. 16, 7:42 AM
Wed, Jul. 15, 5:30 PM
Mon, Jun. 8, 11:14 AM
- eBay (EBAY -2.5%) forecasts its Marketplaces ops will see just 0%-5% constant currency revenue growth in both 2015 and 2016. PayPal is expected to see 15%-18% constant currency growth in 2015, and ~15% annual growth in the "medium term."
- Marketplaces guidance: Marketplaces' EPS growth is expected to exceed revenue growth in 2016 and later (no 2015 forecast is given). eBay sees the business posting free cash flow of $2.1B-$2.3B in 2015, and $2.3B-$2.5B in 2016. Op. margin is expected to be roughly flat long-term relative to 2015 and 2016 target ranges of 32%-34% and 31%-35%.
- PayPal guidance: PayPal is expected to see 2015 free cash flow of $1.6B-$1.8B, and FCF growing in-line with revenue in the medium term. Forex-adjusted payment volume growth is expected to be in the mid-20s in both 2015 and the medium term. Op. margin is forecast to be at 20%-21% in 2015, and be "stable to growing" in the medium term.
- Piper's Gene Munster (Underweight rating) observes the Marketplaces guidance is below Street forecasts. and the PayPal guidance in-line. The PayPal spinoff remains set to occur in 2H15.
- For reference, eBay's Marketplaces revenue fell 4% Y/Y (in actual dollars) in Q1 to $2.07B, with GMV declining 2%. PayPal division revenue rose 14% to $2.11B, with payment volume rising 18%.
- Marketplaces slides. PayPal slides.
Wed, Apr. 22, 4:37 PM
- eBay (NASDAQ:EBAY) reports total payment volume rose 18% to $61B in Q1.
- U.S. revenue up +8% Y/Y and -10% Q/Q (holiday).
- International revenue +2% Y/Y.
- Merchant services volume +26%.
- PayPal active accounts +11% to 165M. Active transactions +24% to top a billion.
- Higher engagement for PayPal was struck with transaction count and monetization per account both higher.
- Guidance: The company sees Q2 revenue of $4.4B-$4.5B vs. $4.67B consensus and EPS of $0.71-$0.73 vs. $0.71 consensus. Full-year revenue of $18.35B-$18.85B seen vs. $18.95 consensus.
- Previously: eBay beats by $0.07, beats on revenue
- EBAY +4.1% after hours.
Wed, Apr. 22, 4:17 PM
Tue, Apr. 21, 5:35 PM| Tue, Apr. 21, 5:35 PM | 6 Comments
Fri, Feb. 6, 7:16 AM
- Reflecting a lower income tax expense, eBay (NASDAQ:EBAY) has revised its 2014 earnings upward by $87M, after it underestimated the tax benefit of an inter-company transaction that happened in December.
- After adjustment, eBay's net income rose to $1.02B from $936M in the quarter ended Dec. 31.
- Previously: eBay beats by $0.01, but guides light (Jan. 21 2015)
Wed, Jan. 21, 4:42 PM
- Along with its Q4 results, EBAY announces it has reached a standstill agreement with Carl Icahn, whose demand for a PayPal spinoff was satisfied last September. Icahn Capital exec Jonathan Christodoro will be joining eBay's board; Icahn will have the right to decide whether Christodoro serves on eBay or PayPal's board after the spinoff.
- Also joining eBay's board: Former Wellington Management chairman/CEO Perry Traquina, and Frank Years, the chairman of financial advisory firm CamberView Partners. The board now has 15 directors, 13 of whom are declared to be independent.
- Confirming a December WSJ report, eBay says it's cutting 2,400 jobs (~7% of its workforce). The layoffs will cut across Marketplaces, PayPal, and eBay Enterprise, and be carried out in Q1.
- The company is now "exploring strategic options for eBay Enterprise, including a sale or IPO." While declaring Enterprise, which provides various e-commerce services for major online retailers, a "strong business," eBay says it has become clear the unit "has limited synergies" with either Marketplaces or PayPal.
- Enterprise's sales rose 9% Y/Y in Q4 to $443M, accounting for 9% of eBay's revenue.
- EBAY now +3.7% AH. Q4 results/guidance, PR
Wed, Jan. 21, 4:19 PM
- eBay (NASDAQ:EBAY): Q4 EPS of $0.90 beats by $0.01.
- Revenue of $4.92B (+8.6% Y/Y) misses by $10M.
- Expects Q1 revenue of $4.35B-$4.45B and EPS of $0.68-$0.71, below a consensus of $4.7B and $0.76.
- Expects 2015 revenue of $18.6B-$19.1B and EPS of $3.05-$3.15, below a consensus of $19.97B and $3.26.
- Shares -1.2% AH.
- Press Release
Tue, Jan. 20, 5:35 PM
Oct. 15, 2014, 4:33 PM
- EBAY expects Q4 revenue of $4.85B-$4.95B and EPS of $0.88-$0.91, mostly below a consensus of $5.16B and $0.91.
- The company notes the existence of "rapidly changing competitive environments in commerce and payments" - Amazon and Stripe are likely nodding in approval - and says it highlights the value of splitting Marketplaces and PayPal.
- Nonetheless, PayPal's Q3 numbers were healthy. Payments revenue +20% Y/Y (an even growth rate with Q2) to $1.95B ; total payment volume +29% (also even with Q2) to $56.6B.
- PayPal active accounts grew by 4.4M (up from Q2's 4M) to 157M. PayPal Credit +29%. Payments take rate fell to 3.45% from 3.53% in Q2 and 3.7% a year ago.
- Marketplaces was softer: Revenue only +6% (down from Q2's 9%) to $2.16B. GMV +9% to $20.1B, after growing +12% in Q2. U.S. GMV +7%, international +11%. Active buyers rose by 3.4M to 152M.
- PayPal mobile payment volume +72% to $12B; Marketplaces mobile volume +41% to $7B. PayPal is set to process 1B mobile transactions in 2014.
- GAAP opex +17% to $2.18B. Only $8M was spent on buybacks.
- EBAY -3.1% AH. Q3 results, PR.
Oct. 15, 2014, 4:16 PM
Oct. 14, 2014, 5:35 PM
Jul. 16, 2014, 4:45 PM
- EBAY expects Q3 revenue of $4.3B-$4.4B and EPS of $0.65-$0.67, below a consensus of $4.42B and $0.70. It expects 2014 revenue of $18B-$18.3B and EPS of $2.95-$3.00, in-line with a consensus of $18.2B and $2.98.
- $1.7B was spent on buybacks in Q2, nearly even with Q1's $1.8B and allowing EPS to beat estimates in spite of a revenue miss.
- PayPal division revenue +20% Y/Y in Q2 (to $1.74B) vs. +19% in Q1. Total payment volume growth improved to 29% from 27% - eBay payments +13%, non-eBay +35%.
- PayPal active accounts rose by 4M Q/Q to 152M, and a deal was signed with GE to offer a dual-branded credit card. The related loan portfolio will be bought in 2016 for an estimated ~$1B.
- Marketplaces revenue +9% (to $2.17B) vs. +10% in Q1. In spite of Google's algorithm changes and the security breach, GMV growth was steady at 12%. Active buyers rose by 3.8M Q/Q to 149M. Enterprise revenue +3% to $267M.
- eBay's total enabled commerce volume rose 26% to $62B. Mobile made up 20% of the total, with mobile downloads producing 6.6M new customers.
- Opex +14% Y/Y to $2.18B. Cash/investments total $12.4B, and debt $5.3B.
- Q1 results, PR
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