eBay Inc. (EBAY) Bundle
A Brief History of eBay Inc.
eBay Inc., founded in 1995, has transformed from a simple online auction platform to a global e-commerce leader. As of 2024, eBay continues to adapt to the dynamic market landscape while maintaining its core marketplace operations.
Financial Performance Overview
As of September 30, 2024, eBay reported net revenues of $2.576 billion for the third quarter, reflecting a 3% increase compared to $2.500 billion in the same period of 2023. For the nine months ended September 30, 2024, total net revenues reached $7.704 billion, up 2% from $7.550 billion in 2023.
| Period | Net Revenues (in millions) | % Change |
|---|---|---|
| Q3 2024 | $2,576 | 3% |
| Q3 2023 | $2,500 | - |
| 9 Months 2024 | $7,704 | 2% |
| 9 Months 2023 | $7,550 | - |
Key Operating Metrics
eBay's Gross Merchandise Volume (GMV) for Q3 2024 was $18.306 billion, with a take rate of 14.08%. This represents an increase from the previous year's take rate of 13.90% in Q3 2023.
| Period | GMV (in millions) | Take Rate (%) |
|---|---|---|
| Q3 2024 | $18,306 | 14.08% |
| Q3 2023 | $17,991 | 13.90% |
Geographical Revenue Distribution
For the three months ended September 30, 2024, U.S. revenues amounted to $1.302 billion (51% of total revenues), while international revenues were $1.274 billion (49% of total revenues), reflecting a consistent revenue distribution.
| Region | Q3 2024 Revenue (in millions) | % of Total Revenue |
|---|---|---|
| U.S. | $1,302 | 51% |
| International | $1,274 | 49% |
Debt and Liquidity Position
As of September 30, 2024, eBay had total debt of $7.418 billion, with $1.243 billion in short-term debt. The company maintains a strong liquidity position, with cash and cash equivalents totaling $5.8 billion, which includes customer accounts of $679 million.
| Debt Type | Amount (in millions) |
|---|---|
| Total Debt | $7,418 |
| Short-term Debt | $1,243 |
| Cash and Cash Equivalents | $5,800 |
Stock Repurchase and Dividend Policy
In 2024, eBay's Board authorized an additional $2.0 billion for its stock repurchase program, building on a previous authorization of $4.0 billion in 2022. During the first nine months of 2024, the company repurchased approximately $2.2 billion of its common stock.
eBay declared a cash dividend of $0.27 per share for the fourth quarter of 2024, which is scheduled to be paid on December 13, 2024.
| Dividend Declared (per share) | Quarter |
|---|---|
| $0.27 | Q4 2024 |
A Who Owns eBay Inc. (EBAY)
Major Shareholders
As of 2024, eBay Inc. (EBAY) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders of eBay Inc. along with their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 8.23% | Institutional |
| BlackRock, Inc. | 7.51% | Institutional |
| State Street Corporation | 4.03% | Institutional |
| FMR LLC (Fidelity Investments) | 5.02% | Institutional |
| Jana Partners LLC | 6.51% | Institutional |
| Insider Ownership (Management and Board) | 1.5% | Insider |
Stock Performance
eBay's stock performance is indicative of its ownership dynamics. As of early 2024, eBay's stock was trading around $52.00 per share, reflecting a market capitalization of approximately $25 billion. The stock has seen fluctuations influenced by broader market trends and company-specific developments.
Recent Share Repurchase Programs
eBay has been actively engaged in share repurchase programs. In the third quarter of 2024, the company repurchased approximately 7.5 million shares at an average price of $53.51 per share, totaling around $402 million. This strategy is aimed at returning capital to shareholders and supporting the stock price.
Dividends
eBay Inc. has consistently paid dividends, with a quarterly cash dividend of $0.27 per share declared in October 2024, payable on December 13, 2024. The total dividends paid during the nine months ended September 30, 2024, amounted to $405 million.
Executive Compensation and Insider Holdings
Executive compensation is a significant component of insider ownership. As of September 30, 2024, total stock-based compensation expenses were $446 million. Key executives hold various stock options and restricted stock units, contributing to their overall stake in the company.
Institutional Investor Trends
Institutional investors have been increasing their stakes in eBay, reflecting confidence in the company's long-term growth potential. As of the latest filings, institutional ownership stands at approximately 65% of total shares outstanding. This trend highlights the importance of institutional investors in the governance and strategic direction of eBay Inc.
Conclusion on Ownership Dynamics
The ownership of eBay Inc. is characterized by a strong institutional presence, significant insider holdings, and an active approach to returning capital to shareholders through dividends and share repurchases. This structure supports eBay's growth strategy and aligns the interests of management and investors.
eBay Inc. (EBAY) Mission Statement
Mission Statement Overview
eBay Inc. aims to provide a global online marketplace where buyers and sellers can interact and transact seamlessly. The company's mission focuses on empowering individuals and businesses to connect, buy, and sell in a trusted environment.
Financial Performance Summary
As of September 30, 2024, eBay reported net revenues of $2,576 million, a 3% increase compared to $2,500 million for the same period in 2023. The Gross Merchandise Volume (GMV) for the same quarter reached $18,306 million, reflecting a 2% increase year-over-year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenues (in millions) | $2,576 | $2,500 | 3% |
| Gross Merchandise Volume (GMV) (in millions) | $18,306 | $17,991 | 2% |
| Take Rate | 14.08% | 13.90% | 0.18% |
| Operating Margin | 23.1% | 18.2% | +4.9% |
| Net Income (in millions) | $634 | $1,305 | -51% |
Revenue Breakdown by Geography
eBay's revenues are derived from both U.S. and international markets. For the third quarter of 2024, the breakdown was as follows:
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| U.S. | $1,302 | $1,259 | 3% |
| International | $1,274 | $1,241 | 3% |
Cost Analysis
The cost of net revenues for the three months ended September 30, 2024, was $727 million, indicating a 3% increase from $705 million in Q3 2023. This represents a consistent percentage of net revenues at 28% for both periods.
Operating Expenses
eBay's operating expenses for Q3 2024 totaled $1,254 million, a decrease of 6% compared to $1,340 million in the same quarter of 2023. Key components include:
| Type of Expense | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Sales and Marketing | $592 | $567 | 4% |
| Product Development | $374 | $401 | -7% |
| General and Administrative | $194 | $283 | -31% |
Stock Performance
As of September 30, 2024, eBay's stock was trading at approximately $50.00 per share. The company has declared a quarterly cash dividend of $0.27 per share, payable in December 2024.
Conclusion on Mission Alignment
eBay's mission statement is reflected in its financial performance and operational strategies, focusing on enhancing user experience, expanding global reach, and maintaining a strong marketplace presence.
How eBay Inc. (EBAY) Works
Business Model
eBay Inc. operates as a global online marketplace connecting buyers and sellers. The company generates revenue primarily through transaction fees, which include final value fees, listing fees, and fees for promoted listings. eBay also earns income from payment services, shipping fees, and advertising.
Financial Performance
As of September 30, 2024, eBay reported net revenues of $2,576 million for Q3, a 3% increase compared to $2,500 million in Q3 2023. For the nine months ended September 30, 2024, net revenues totaled $7,704 million, up from $7,550 million in the previous year, reflecting a 2% increase.
| Period | Net Revenues (in millions) | Gross Merchandise Volume (GMV) (in millions) | Take Rate |
|---|---|---|---|
| Q3 2024 | $2,576 | $18,306 | 14.08% |
| Q3 2023 | $2,500 | $17,991 | 13.90% |
| 9M 2024 | $7,704 | $55,347 | 13.92% |
| 9M 2023 | $7,550 | $54,615 | 13.82% |
Operating Costs
For the three months ended September 30, 2024, eBay's cost of net revenues was $727 million, up from $705 million in Q3 2023, marking a 3% increase. The cost of net revenues for the nine months ended September 30, 2024 was $2,162 million, compared to $2,123 million in the same period in 2023, reflecting a 2% increase.
| Period | Cost of Net Revenues (in millions) | Operating Expenses (in millions) |
|---|---|---|
| Q3 2024 | $727 | $1,254 |
| Q3 2023 | $705 | $1,340 |
| 9M 2024 | $2,162 | $3,767 |
| 9M 2023 | $2,123 | $3,896 |
Key Metrics
Key operating metrics for eBay include GMV and take rate, which are essential for understanding revenue generation:
- GMV for Q3 2024 was $18,306 million, compared to $17,991 million in Q3 2023.
- The take rate increased to 14.08% in Q3 2024, up from 13.90% in Q3 2023.
Cash Flow and Investments
For the nine months ended September 30, 2024, eBay generated cash flow from continuing operating activities of $1,737 million, down from $2,308 million in the same period in 2023. Cash flows from investing activities reported a net cash inflow of $951 million, while cash used in financing activities was $2,814 million.
| Cash Flow Activities (in millions) | 9M 2024 | 9M 2023 |
|---|---|---|
| Operating Activities | $1,737 | $2,308 |
| Investing Activities | $951 | $520 |
| Financing Activities | ($2,814) | ($2,071) |
Balance Sheet Overview
As of September 30, 2024, eBay reported total assets of $19,915 million and total liabilities of $14,495 million. Stockholders' equity stood at $5,420 million.
| Balance Sheet Item (in millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $19,915 | $21,620 |
| Total Liabilities | $14,495 | $15,224 |
| Stockholders' Equity | $5,420 | $6,396 |
Dividends
In October 2024, eBay's Board of Directors declared a quarterly cash dividend of $0.27 per share, to be paid on December 13, 2024, to stockholders of record as of November 29, 2024.
Market Presence
eBay generates approximately half of its net revenues internationally, with significant contributions from the U.S. and key international markets such as the UK, Germany, and China. For Q3 2024, U.S. revenues were $1,302 million, while international revenues totaled $1,274 million.
| Geography | Net Revenues (in millions) |
|---|---|
| U.S. | $1,302 |
| International | $1,274 |
Investment Activities
As of September 30, 2024, eBay had $3,302 million in short-term investments and $1,534 million in long-term investments. The company has also engaged in significant equity investments, including a notable investment in Adevinta.
Debt Structure
eBay's total debt as of September 30, 2024, was $6,175 million, with a notable commercial paper outstanding of $450 million at a weighted average interest rate of 5.09% per annum.
| Debt Item (in millions) | September 30, 2024 |
|---|---|
| Total Debt | $6,175 |
| Commercial Paper Outstanding | $450 |
How eBay Inc. (EBAY) Makes Money
Revenue Sources
eBay generates its revenue primarily from several key sources:
- Final Value Fees
- Listing Fees
- Promoted Listings Fees
- Payment Services Fees
- Subscription Fees for Stores
- Revenue from Advertising
- Shipping Fees
Financial Performance Metrics
The following table summarizes eBay's financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023 (in millions, except percentages):
| Metric | Three Months Ended September 30 | Nine Months Ended September 30 |
|---|---|---|
| Net Revenues | $2,576 | $7,704 |
| Cost of Net Revenues | $727 | $2,162 |
| Gross Profit | $1,849 | $5,542 |
| Operating Expenses | $1,254 | $3,767 |
| Net Income | $634 | $1,296 |
Gross Merchandise Volume (GMV)
Gross Merchandise Volume (GMV) is a key performance indicator for eBay, representing the total value of transactions conducted on its platforms. The following table illustrates GMV metrics for the same periods:
| Metric | Three Months Ended September 30 | Nine Months Ended September 30 |
|---|---|---|
| GMV | $18,306 | $55,347 |
| Take Rate | 14.08% | 13.92% |
Geographic Revenue Distribution
eBay's revenue is generated from both the U.S. and international markets. The following table outlines the net revenues by geography for the three and nine months ended September 30, 2024:
| Geography | Three Months Ended September 30 | Nine Months Ended September 30 |
|---|---|---|
| U.S. | $1,302 | $3,897 |
| International | $1,274 | $3,807 |
| Total Net Revenues | $2,576 | $7,704 |
Operating Expenses Breakdown
The following table presents the breakdown of eBay's operating expenses for the three and nine months ended September 30, 2024:
| Expense Type | Three Months Ended September 30 | Nine Months Ended September 30 |
|---|---|---|
| Sales and Marketing | $592 | $1,710 |
| Product Development | $374 | $1,104 |
| General and Administrative | $194 | $673 |
Cash Flow from Operations
eBay's cash flow from continuing operating activities for the three months ended September 30, 2024, was $755 million, compared to $862 million in the same period in 2023.
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Article updated on 8 Nov 2024
Resources:
- eBay Inc. (EBAY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of eBay Inc. (EBAY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View eBay Inc. (EBAY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.