EBay : Income Statement – Q4 2021Open link in a new window

eBay Inc.

Unaudited Condensed Consolidated Statement of Income from Continuing Operations - GAAP

(U.S. Dollars In Millions, Except Per Share Amounts and Percentages)

														Three Months Ended																Year Ended
																												December 31,
		Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			2021			2020				2019
		2021			2021			2021			2021			2020			2020			2020			2020			2019			2019			2019
Net revenues	$	2,613	$	2,501	$	2,668	$	2,638	$	2,478	$	2,258	$	2,337	$	1,821	$	1,904	$	1,799	$	1,859	$	10,420	$	8,894			$	7,429
Cost of net revenues		694			678			672			606			548			478			417			354			395			396			401			2,650			1,797				1,585
Gross profit		1,919			1,823			1,996			2,032			1,930			1,780			1,920			1,467			1,509			1,403			1,458			7,770			7,097				5,844
Operating expenses:
Sales and marketing		569			496			559			546			646			528			523			394			506			461			468			2,170			2,091				1,866
Product development		337			334			350			304			283			271			256			218			229			231			246			1,325			1,028				930
General and administrative		206			219			250			246			248			253			281			203			244			246			236			921			985				988
Provision for transaction losses		119			112			103			88			85			60			89			96			69			69			60			422			330				262
Amortization of acquired intangible		-			-			2			7			7			6			7			7			7			7			7			9			27				28
assets
Total operating expenses		1,231			1,161			1,264			1,191			1,269			1,118			1,156			918			1,055			1,014			1,017			4,847			4,461				4,074
Income (loss) from operations		688			662			732			841			661			662			764			549			454			389			441			2,923			2,636				1,770
Gain (loss) on equity investments and		(1,875)			(181)			(273)			(36)			513			191			253			50			77			(49)			(8)			(2,365)			1,007				133
warrant, net
Interest and other income (expense),		26			(47)			(58)			(81)			(80)			(97)			(72)			(49)			(61)			(93)			(46)			(160)			(298)				(251)
net
Income from continuing operations		(1,161)			434			401			724			1,094			756			945			550			470			247			387			398			3,345				1,652
before income taxes
Income tax benefit (provision)		268			(151)			(107)			(156)			(322)			(151)			(256)			(129)			(28)			(52)			(31)			(146)			(858)				(219)
Income from continuing operations	$	(893)	$	283	$	294	$	568	$	772	$	605	$	689	$	421	$	442	$	195	$	356	$	252	$	2,487			$	1,433
Net income from continuing	$	(1.47)	$	0.44	$	0.44	$	0.83	$	1.12	$	0.87	$	0.98	$	0.56	$	0.55	$	0.23	$	0.41	$	0.39	$	3.50			$	1.69
operations per basic share
Net income from continuing	$	(1.47)	$	0.43	$	0.43	$	0.82	$	1.11	$	0.86	$	0.97	$	0.56	$	0.55	$	0.23	$	0.41	$	0.38	$	3.46			$	1.68
operations per diluted share
Weighted average shares:
Basic		606			647			674			681			688			696			703			753			807			830			860			652			710				849
Diluted		606			658			685			693			697			708			711			757			812			837			867			663			718				856
Operating margin		26.3 %			26.5 %			27.4 %			31.9 %			26.7 %			29.3 %			32.7 %			30.2 %			23.8 %			21.7 %			23.7 %			28.1 %			29.6 %				23.8 %

eBay Inc.

Unaudited Condensed Consolidated Statement of Income from Continuing Operations - Non-GAAP

(U.S. Dollars In Millions, Except Per Share Amounts and Percentages)

														Three Months Ended																Year Ended
																												December 31,
		Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			2021			2020				2019
		2021			2021			2021			2021			2020			2020			2020			2020			2019			2019			2019
Net revenues	$	2,613	$	2,501	$	2,668	$	2,638	$	2,478	$	2,258	$	2,337	$	1,821	$	1,904	$	1,799	$	1,859	$	10,420	$	8,894			$	7,429
Cost of net revenues		682			666			659			596			538			468			406			344			384			386			389			2,603			1,756				1,540
Gross profit		1,931			1,835			2,009			2,042			1,940			1,790			1,931			1,477			1,520			1,413			1,470			7,817			7,138				5,889
Operating expenses:
Sales and marketing		529			471			534			526			618			505			504			379			487			443			450			2,060			2,006				1,795
Product development		287			284			295			262			242			234			215			183			188			191			200			1,128			874				765
General and administrative		170			176			201			181			211			212			211			166			181			176			187			728			800				729
Provision for transaction losses		119			112			103			88			85			60			89			96			69			69			60			422			330				262
Total operating expenses		1,105			1,043			1,133			1,057			1,156			1,011			1,019			824			925			879			897			4,338			4,010				3,551
Income (loss) from operations		826			792			876			985			784			779			912			653			595			534			573			3,479			3,128				2,338
Gain (loss) on equity investments and		-			(10)			-			-			-			-			-			-			-			-			-			(10)			-		-
warrant, net
Interest and other income (expense),		(43)			(63)			(58)			(81)			(80)			(97)			(72)			(48)			(61)			(41)			(46)			(245)			(297)				(199)
net
Income from continuing operations		783			719			818			904			704			682			840			605			534			493			527			3,224			2,831				2,139
before income taxes
Income tax provision		(136)			(128)			(143)			(156)			(113)			(98)			(138)			(98)			(28)			(77)			(85)			(563)			(447)				(282)
Net income from continuing operations	$	647	$	591	$	675	$	748	$	591	$	584	$	702	$	507	$	506	$	416	$	442	$	2,661	$	2,384			$	1,857
Net income from continuing	$	1.07	$	0.91	$	1.00	$	1.10	$	0.86	$	0.84	$	1.00	$	0.67	$	0.63	$	0.50	$	0.51	$	4.08	$	3.36			$	2.19
operations per basic share
Net income from continuing	$	1.05	$	0.90	$	0.99	$	1.08	$	0.85	$	0.82	$	0.99	$	0.67	$	0.62	$	0.50	$	0.51	$	4.02	$	3.32			$	2.17
operations per diluted share
Weighted average shares:
Basic		606			647			674			681			688			696			703			753			807			830			860			652			710				849
Diluted		615			658			685			693			697			708			711			757			812			837			867			663			718				856
Operating margin		31.6 %			31.7 %			32.8 %			37.3 %			31.7 %			34.4 %			39.0 %			35.9 %			31.2 %			29.7 %			30.8 %			33.4 %			35.2 %				31.5 %

eBay Inc.

Unaudited Condensed Consolidated Statement of Income from Continuing Operations - Non-GAAP Adjustments

(U.S. Dollars In Millions)

											Three Months Ended													Year Ended December 31,
	Dec 31,		Sep 30,			Jun 30,			Mar 31,		Dec 31,		Sep 30,			Jun 30,			Mar 31,				2021			2020
		2021			2021			2021			2021			2020			2020			2020			2020
Net revenues	$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Cost of net revenues		(12)	(a)		(12)	(a)		(13)	(a)		(10)	(a)		(10)	(a)		(10)	(a)		(11)	(a)(b)		(10)	(a)(b)			(47)	(a)		(41)		(a)(b)
Gross profit		12			12			13			10			10			10			11			10				47			41
Operating expenses:
Sales and marketing		(40) (a)(d)		(25) (a)		(25) (a)		(20) (a)		(28)	(a)		(23)	(a)		(19)	(a)		(15)	(a)			(110)	(a)		(85)		(a)
Product development		(50) (a)(d)		(50) (a)		(55) (a)		(42) (a)		(41)	(a)		(37)	(a)		(41)	(a)		(35)	(a)			(197)	(a)		(154)		(a)
General and administrative		(36)	(a)(d)		(43)	(a)		(49)	(a)(d)		(65)	(a)(d)		(37)	(a)		(41)	(a)(d)		(70)	(a)(d)		(37)	(a)(d)			(193)	(a)(d)		(185)		(a)(d)
Amortization of acquired intangible assets		-			-			(2) (b)		(7) (b)		(7)	(b)		(6)	(b)		(7)	(b)		(7)	(b)			(9)	(b)		(27)		(b)
Total operating expenses		(126)			(118)			(131)			(134)			(113)			(107)			(137)			(94)				(509)			(451)
Income (loss) from operations		138			130			144			144			123			117			148			104				556			492
Gain (loss) on equity investments and		1,875	(e)(f)(g)		171	(e)(f)(g)		273	(e)(f)(g)		36	(f)		(513)	(f)(e)		(191)	(f)		(253)	(f)(e)		(50)	(f)(e)			2,355	(e)(f)(g)		(1,007)		(f)(e)
warrant, net
Interest and other income (expense), net		(69) (d)		(16) (d)		-			-			-			-			-			1	(d)			(85)	(d)		1		(d)
Income (loss) from continuing operations		1,944			285			417			180			(390)			(74)			(105)			55				2,826			(514)
before income taxes
Income tax benefit (provision)		(404) (c)		23	(c)		(36) (c)		-			209	(c)		53	(c)		118	(c)		31	(c)			(417)	(c)		411		(c)
Net income (loss) from continuing	$	1,540		$	308		$	381		$	180		$	(181)		$	(21)		$	13		$	86			$	2,409		$	(103)
operations

1. Stock-basedcompensation expense and related employer payroll taxes
2. Amortization of acquired intangible assets
3. Income taxes associated with certain non-GAAP entries
4. Other significant gains, losses or charges
5. Gains or losses on investments
6. Change in fair market value of warrant
7. Change in fair market value of Adevinta

eBay Inc.

Unaudited Condensed Consolidated Statement of Income from Continuing Operations - Non-GAAP Adjustments (continued)

(U.S. Dollars In Millions)

				Three Months Ended						Year Ended
	Dec 31,		Sep 30,				Jun 30,		Dec 31,
		2019				2019				2019				2019
Net revenues	$	-	$	-			$	-	$	-
Cost of net revenues		(11) (a)(b)			(10)	(a)(b)		(12) (a)(b)			(45)	(a)(b)
Gross profit		11				10				12				45
Operating expenses:
Sales and marketing		(19) (a)(d)			(18)	(a)		(18) (a)			(71)	(a)(d)
Product development		(41) (a)(d)			(40)	(a)		(46) (a)			(165)	(a)(d)
General and administrative		(63) (a)(d)			(70)	(a)(d)		(49) (a)(d)			(259)	(a)(d)
Amortization of acquired intangible assets		(7) (b)			(7)	(b)		(7) (b)			(28)	(b)
Total operating expenses		(130)				(135)				(120)				(523)
Income (loss) from operations		141				145				132				568
Gain (loss) on equity investments and		(77) (f)			49	(f)		8 (f)			(133)	(f)
warrant, net
Interest and other income (expense), net		-			52	(d)		-			52	(d)
Income (loss) from continuing operations		64				246				140				487
before income taxes
Income tax benefit (provision)		-				(25)	(c)			(54) (c)			(63)	(c)
Net income (loss) from continuing	$	64			$	221			$	86			$	424
operations

1. Stock-basedcompensation expense and related employer payroll taxes
2. Amortization of acquired intangible assets
3. Income taxes associated with certain non-GAAP entries
4. Other significant gains, losses or charges
5. Gains or losses on investments
6. Change in fair market value of warrant