Technology
eBay Inc. Reports Second Quarter 2024 Results
Published
2 months agoon
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Revenue of $2.6 billion, up 1% on an as-reported basis and up 2% on an FX-Neutral basis Gross Merchandise Volume of $18.4 billion, up 1% on an as-reported and FX-Neutral basisGAAP and Non-GAAP earnings per diluted share of $0.45 and $1.18, respectivelyGAAP and Non-GAAP operating margin of 21.3% and 27.9%, respectivelyReturned $1.1 billion to stockholders in Q2, including $1.0 billion of share repurchases and $135 million paid in cash dividends
SAN JOSE, Calif., July 31, 2024 /PRNewswire/ — eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its second quarter ended June 30, 2024.
“eBay’s strong Q2 results mark another step toward achieving sustainable, long-term growth,” said Jamie Iannone, Chief Executive Officer at eBay. “The continued momentum in Focus Categories contributed to our increase in GMV, while new AI capabilities are driving innovation across the platform and transforming the experience for eBay customers around the world.”
“Q2 was another strong quarter for eBay as we exceeded expectations across our key financial metrics,” said Steve Priest, Chief Financial Officer at eBay. “We achieved positive year-over-year GMV growth, driven by our execution against strategic initiatives, despite an uneven discretionary demand environment in our major markets.”
Second Quarter Financial Highlights
Revenue was $2.6 billion, up 1% on an as-reported basis and up 2% on a foreign exchange (FX) neutral basis.Gross Merchandise Volume (GMV) was $18.4 billion, up 1% on an as-reported and FX-Neutral basis.GAAP net income from continuing operations was $226 million, or $0.45 per diluted share.Non-GAAP net income from continuing operations was $602 million, or $1.18 per diluted share.GAAP and Non-GAAP operating margin was 21.3% and 27.9%, respectively.Generated $367 million of operating cash flow and $278 million of free cash flow.We completed the previously announced sale of Adevinta shares in exchange for $2.4 billion in cash and shares of a newly privatized entity, Aurelia, which are valued at $1.9 billion at the closing of the transactions.Returned $1.1 billion to stockholders, including $1.0 billion of share repurchases and $135 million paid in cash dividends.
Business Highlights
eBay closed a series of transactions with Collectors, including the acquisition of Goldin from Collectors, the sale of the eBay vault, and a commercial agreement for more streamlined grading, storage and selling experiences.eBay enabled Venmo as an additional payment method during the quarter. Known for its popularity among Gen Z and Millennials, Venmo gives eBay buyers in the U.S. even more choice and flexibility during the checkout experience.The company expanded its eBay Refurbished program to include refurbished golf clubs, bringing warranties and hassle-free returns to thousands of previously owned clubs from the world’s top brands.In June, the company announced a sustainability collaboration with Seagate, a global leader in data storage solutions. Seagate’s official storefront on eBay now offers direct sales of factory recertified hard drives, which can eliminate a significant amount of e-waste by extending the lifecycles of these products.The company launched a number of innovative product features to simplify and enhance the buying and selling experience for customers. In the U.S. and U.K., eBay introduced Shop the look, a generative-AI powered discovery feature for fashion buyers. The company also launched its AI-powered background enhancement tool to 100% of iOS and Android users in the U.S., U.K. and Germany, enabling even more sellers to apply a variety of backgrounds to their listing images.The company introduced improved selling and buying experiences for pre-owned apparel in the U.K. For sellers, these changes included a new selling flow that makes it considerably easier to list on eBay, with image guidance, simpler item aspect collection, and a streamlined shipping module. For buyers, we introduced new Generative AI-powered features, like Shop the look and Explore, which offer more inspirational shopping experiences for fashion enthusiasts.eBay and Certilogo launched a new ‘click-to-resell’ feature, making it easier for sellers to list pre-owned clothing on eBay and verify authenticity through Certilogo’s AI-based system. Italian outerwear brand Save The Duck is the first to pilot the new feature.eBay’s consignment service expanded in the U.S. to include luxury watches, footwear and fine jewelry. In partnership with Linda’s Stuff, this service gives casual sellers the opportunity to leverage experts to list and sell luxury items on their behalf.The company partnered with Condé Nast to spotlight pre-loved apparel at some of fashion’s biggest moments like the Met Gala and Vogue World in Paris.eBay became an Official Partner of the McLaren Formula 1 Team, enabling both brands to reach new audiences through unique storytelling opportunities with their respective fans and customers. As part of the multi-year collaboration, eBay branding is being featured on the race cars of drivers Lando Norris and Oscar Piastri for four races across the 2024 season: the Miami, British, United States and Las Vegas Grands Prix.
Impact
In May, eBay released its 2023 Impact Report showcasing how the company has leveraged its global marketplace to create economic opportunities, promote sustainable commerce, and foster a diverse and inclusive workforce.eBay also published its latest Recommerce Report highlighting the many benefits of shopping pre-loved items.eBay launched “Rocket Man Resale,” a partnership with Elton John, who released a personal collection of pre-loved fashion items exclusively on eBay through auctions and fixed-priced listings. The partnership included a pop-up shop in the West Village of New York City. All proceeds benefited the Elton John AIDS Foundation.During the quarter, eBay Foundation granted nearly $7 million to strategic nonprofit partners across the U.S., which are addressing and removing barriers to entrepreneurship for people who identify with historically excluded groups.eBay for Charity contributed more than $47 million globally in Q2, up 22% year-over-year.
Second Quarter 2024 Financial Highlights (presented in millions, except per share data and percentages)
Second Quarter
2024
2023
Change
eBay Inc.
Net revenues
$ 2,572
$ 2,540
$ 32
1 %
GAAP – Continuing Operations
Net income
$ 226
$ 172
$ 54
31 %
Earnings per diluted share
$ 0.45
$ 0.32
$ 0.13
39 %
Non-GAAP – Continuing Operations
Net income
$ 602
$ 555
$ 47
8 %
Earnings per diluted share
$ 1.18
$ 1.03
$ 0.15
15 %
Other Selected Financial and Operational Results
Operating margin – GAAP operating margin increased to 21.3% for the second quarter of 2024, compared to 20.4% for the same period last year. Non-GAAP operating margin increased to 27.9% for the second quarter of 2024, compared to 26.9% for the same period last year.Taxes – The GAAP effective tax rate for continuing operations for the second quarter of 2024 was 31.1%, compared to 39.7% for the second quarter of 2023. The non-GAAP effective tax rate for continuing operations for the second quarter of 2024 was 16.5%(1).Cash flow – The company generated $367 million of operating cash flow and $278 million of free cash flow during the second quarter of 2024.Capital returns – The company repurchased $1.0 billion of its common stock, or approximately 19 million shares, in the second quarter of 2024. The company’s total repurchase authorization remaining as of June 30, 2024 was approximately $1.9 billion. The company also paid cash dividends of $135 million during the second quarter of 2024.Cash and cash equivalents and non-equity investments – The company’s cash and cash equivalents and non-equity investments portfolio totaled $6.3 billion as of June 30, 2024.
Business Outlook
eBay is providing the following guidance for the third quarter 2024.
In billions, except per share data and percentages
Q3 2024 Guidance
Revenue
$2.50 – $2.56
FX-Neutral Y/Y Growth
1% – 3%
Diluted GAAP EPS
$0.82 – $0.87
Diluted Non-GAAP EPS
$1.15 – $1.20
Dividend Declaration
eBay’s Board of Directors has declared a cash dividend of $0.27 per share of the company’s common stock. The dividend is payable on September 13, 2024 to stockholders of record as of August 30, 2024.
(1) We use a non-GAAP effective tax rate for evaluating our operating results. Based on our current long-term projections, we are using a non-GAAP tax rate of 16.5%. This non-GAAP tax rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss second quarter 2024 results at 2:30 p.m. Pacific Time today. Investors and participants can access the call by dialing (855) 761-5600 in the U.S. and (646) 307-1097 internationally. The passcode for the conference line is 7435074. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company’s Investor Relations website at https://investors.ebayinc.com. In addition, an archive of the webcast will be accessible for at least three months through the same link.
eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor this website, in addition to following our press releases, SEC filings, public conference calls and webcasts.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. In 2023, eBay enabled more than $73 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.
Presentation
All growth rates represent year-over-year comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not sum or recalculate using the rounded dollar amounts provided. References to “revenue” refer to “net revenues” as reported in the company’s consolidated statement of income.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission (SEC): non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and FX-Neutral basis. These non-GAAP financial measures are presented on a continuing operations basis. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles (GAAP). For a reconciliation of these non-GAAP financial measures, except for figures in this press release presented on an “FX-Neutral basis,” to the nearest comparable GAAP measures, see “Business Outlook,” “Non-GAAP Measures of Financial Performance,” “Reconciliation of GAAP Operating Income to Non-GAAP Operating Income,” “Reconciliation of GAAP Net Income to Non-GAAP Net Income and Reconciliation of GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate” and “Reconciliation of Operating Cash Flow to Free Cash Flow” included in this press release. For figures in this press release reported “on an FX-Neutral basis,” we calculate the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company’s current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of eBay Inc. and its consolidated subsidiaries, including management’s vision for the future of eBay and our ability to accomplish our vision, expected financial results for the third quarter and full year 2024 and the future growth in our business, the effects and potential of current and contemplated strategic initiatives and offerings including with respect to artificial intelligence and partnership with other companies, the effects of new product features or programs, the effects of geopolitical events, foreign currency volatility, and inflationary pressure on our business and operations and our ability to respond to such effects, operating efficiency and margins, reinvestments, dividends and share repurchases. Actual results could differ materially from those expressed or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: fluctuations in, and our ability to predict, our results of operations and cash flows; our ability to convert visits into sales for our sellers, attract and retain sellers and buyers and execute on our business strategy; our ability to compete in the markets in which we participate; our ability to generate revenue from our foreign operations and expand in international markets; the impact of inflationary pressure, fluctuations in foreign currency exchange rates, changing interest rates and geopolitical events such as the ongoing wars in Ukraine and in Israel and Gaza, including the related disruptions to international shipping in the Red Sea; our ability to keep pace with rapid technological developments or continue to innovate and create new initiatives to provide new programs, products and services; our ability to operate and continuously develop our payments system and financial services offerings; the impact of evolving domestic and foreign government laws, regulations, rules and standards that affect us, our business and/or our industry; our reliance on third-party providers; our ability to protect or enforce our intellectual property rights; our ability to deal effectively with fraudulent activities on our platforms; the impact of any security breaches, cyberattacks or system failures and resulting interruptions; our ability to attract, retain and develop highly skilled employees; our ability to accomplish or accurately track and report results related to our environmental, social and governance goals; current and potential litigation and regulatory and government inquiries, investigations and disputes involving us or our industry; our ability to generate sufficient cash flow to service our indebtedness; the impact of evolving sales and other tax regimes in various jurisdictions and anticipated tax liabilities; and the success of our pending or potential acquisitions, dispositions, joint ventures, strategic partnerships and strategic investments.
The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.
More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations website at https://investors.ebayinc.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.
eBay Inc.
Unaudited Condensed Consolidated Balance Sheet
June 30,
2024
December 31,
2023
(In millions)
ASSETS
Current assets:
Cash and cash equivalents
$ 1,963
$ 1,985
Short-term investments
3,203
2,533
Equity investment in Adevinta
—
4,474
Customer accounts and funds receivable
1,071
1,013
Other current assets
1,032
1,011
Total current assets
7,269
11,016
Long-term investments
1,722
1,129
Equity investment in Aurelia
1,910
—
Property and equipment, net
1,285
1,243
Goodwill
4,285
4,267
Operating lease right-of-use assets
439
493
Deferred tax assets
3,011
3,089
Other assets
457
383
Total assets
$ 20,378
$ 21,620
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt
$ 1,551
$ 750
Accounts payable
319
267
Customer accounts and funds payable
1,113
1,054
Accrued expenses and other current liabilities
2,004
2,196
Income taxes payable
812
253
Total current liabilities
5,799
4,520
Operating lease liabilities
332
387
Deferred tax liabilities
1,814
2,408
Long-term debt
6,174
6,973
Other liabilities
734
936
Total liabilities
14,853
15,224
Total stockholders’ equity
5,525
6,396
Total liabilities and stockholders’ equity
$ 20,378
$ 21,620
eBay Inc.
Unaudited Condensed Consolidated Statement of Income
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(In millions, except per share amounts)
Net revenues
$ 2,572
$ 2,540
$ 5,128
$ 5,050
Cost of net revenues (1)
735
718
1,435
1,418
Gross profit
1,837
1,822
3,693
3,632
Operating expenses:
Sales and marketing (1)
577
566
1,118
1,077
Product development (1)
379
392
730
744
General and administrative (1)
241
251
479
548
Provision for transaction losses
86
90
177
174
Amortization of acquired intangible assets
5
5
9
13
Total operating expenses
1,288
1,304
2,513
2,556
Income from operations
549
518
1,180
1,076
Interest and other:
Loss on equity investments and warrant, net
(222)
(214)
(319)
(16)
Interest expense
(65)
(65)
(131)
(133)
Interest income and other, net
66
46
134
88
Income from continuing operations before income taxes
328
285
864
1,015
Income tax provision
(102)
(113)
(199)
(274)
Income from continuing operations
226
172
665
741
Loss from discontinued operations, net of income taxes
(2)
(1)
(3)
(3)
Net income
$ 224
$ 171
$ 662
$ 738
Income per share – basic:
Continuing operations
$ 0.45
$ 0.32
$ 1.31
$ 1.38
Discontinued operations
—
—
(0.01)
(0.01)
Net income per share – basic
$ 0.45
$ 0.32
$ 1.30
$ 1.37
Income per share – diluted:
Continuing operations
$ 0.45
$ 0.32
$ 1.30
$ 1.37
Discontinued operations
—
—
(0.01)
(0.01)
Net income per share – diluted
$ 0.45
$ 0.32
$ 1.29
$ 1.36
Weighted average shares:
Basic
503
534
509
536
Diluted
507
537
513
539
(1) Includes stock-based compensation as follows:
Cost of net revenues
$ 14
$ 14
$ 27
$ 27
Sales and marketing
25
25
48
45
Product development
77
74
141
133
General and administrative
38
41
84
77
$ 154
$ 154
$ 300
$ 282
eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(In millions)
Cash flows from operating activities:
Net income
$ 224
$ 171
$ 662
$ 738
Loss from discontinued operations, net of income taxes
2
1
3
3
Adjustments:
Provision for transaction losses
86
90
177
174
Depreciation and amortization
77
101
153
208
Stock-based compensation
154
154
300
282
Loss on investments and other, net
132
34
138
44
Deferred income taxes
(563)
(111)
(523)
(78)
Change in fair value of warrant
174
(31)
25
(69)
Change in fair value of equity investment in Adevinta
(84)
210
156
36
Changes in assets and liabilities, net of acquisition effects
165
(14)
(109)
108
Net cash provided by continuing operating activities
367
605
982
1,446
Net cash used in discontinued operating activities
—
(4)
—
(4)
Net cash provided by operating activities
367
601
982
1,442
Cash flows from investing activities:
Purchases of property and equipment
(89)
(113)
(232)
(245)
Purchases of investments
(4,601)
(4,144)
(7,913)
(7,687)
Maturities of investments
2,996
3,978
6,699
8,382
Proceeds from sale of shares in Adevinta
2,417
—
2,417
—
Other
(71)
2
(69)
(26)
Net cash provided (used in) by investing activities
652
(277)
902
424
Cash flows from financing activities:
Proceeds from issuance of common stock
55
48
55
48
Repurchases of common stock
(1,030)
(250)
(1,483)
(492)
Payments for taxes related to net share settlements of restricted stock units and awards
(45)
(68)
(96)
(160)
Payments for dividends
(135)
(133)
(274)
(267)
Repayment of debt
—
—
—
(1,150)
Net funds receivable and payable activity
35
333
7
563
Other
1
—
(14)
—
Net cash used in financing activities
(1,119)
(70)
(1,805)
(1,458)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(6)
(11)
(17)
(6)
Net increase (decrease) in cash, cash equivalents and restricted cash
(106)
243
62
402
Cash, cash equivalents and restricted cash at beginning of period
2,661
2,431
2,493
2,272
Cash, cash equivalents and restricted cash at end of period
$ 2,555
$ 2,674
$ 2,555
$ 2,674
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
Three Months Ended
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
(In millions, except percentages)
Total net revenues (1)(2)
$ 2,572
$ 2,556
$ 2,562
$ 2,500
$ 2,540
Current quarter vs prior year quarter
1 %
2 %
2 %
5 %
5 %
Percent from international
50 %
49 %
50 %
50 %
50 %
(1) Hedge gain/(loss)
$ (10)
$ (10)
$ 11
$ 2
$ 14
(2) Foreign currency impact
$ (11)
$ 14
$ 63
$ 43
$ (9)
eBay Inc.
Unaudited Supplemental Operating Data
Three Months Ended
June 30,
2024
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
(In millions, except percentages)
Active Buyers (1)
132
132
132
132
132
Current quarter vs prior year quarter
0 %
(1) %
(2) %
(3) %
(4) %
Active Buyers excluding GittiGidiyor, TCGplayer and Goldin (2)
131
131
131
131
131
Current quarter vs prior year quarter
0 %
0 %
(1) %
(1) %
(3) %
Gross Merchandise Volume (3)
U.S.
$ 8,798
$ 8,974
$ 8,891
$ 8,638
$ 8,702
Current quarter vs prior year quarter
1 %
0 %
0 %
(1) %
(3) %
International
$ 9,620
$ 9,649
$ 9,700
$ 9,353
$ 9,512
Current quarter vs prior year quarter
1 %
3 %
4 %
4 %
(1) %
Total Gross Merchandise Volume
$ 18,418
$ 18,623
$ 18,591
$ 17,991
$ 18,214
Current quarter vs prior year quarter
1 %
1 %
2 %
2 %
(2) %
(1)
Active Buyers consist of all buyers who paid for a transaction on our platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account.
(2)
On June 20, 2022 we announced the closure of our marketplace business in Turkey, GittiGidiyor. On October 31, 2022, we completed the acquisition of TCGplayer. On May 16, 2024, we completed the acquisition of Goldin.
(3)
Gross Merchandise Volume consists of the total value of all paid transactions between users on our platforms during the applicable period inclusive of shipping fees and taxes.
eBay Inc.
Business Outlook
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the company’s future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.
The company’s future performance involves risks and uncertainties, and the company’s actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company’s operating results are set forth under the caption “Forward-Looking Statements” above in this press release. More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting eBay’s investor relations website at https://investors.ebayinc.com or the SEC’s website at www.sec.gov.
eBay Inc.
Three Months Ending
September 30, 2024
(In billions, except per share amounts)
GAAP
Non-GAAP (a)
Net revenues
$2.50 – $2.56
$2.50 – $2.56
Diluted EPS
$0.82 – $0.87
$1.15 – $1.20
(a) Estimated non-GAAP amounts above for the three months ending September 30, 2024 reflect adjustments that exclude the estimated amortization of
acquired intangible assets of approximately $9 – $11 million, estimated stock-based compensation expense and associated employer payroll tax expense
of approximately $140 – $150 million, and estimated adjustment between our GAAP and non-GAAP tax rate of approximately $25 – $35 million. The estimated
GAAP diluted EPS above does not assume any gains or losses on our equity investments.
eBay Inc.
Non-GAAP Measures of Financial Performance
To supplement the company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and figures in this press release presented on an “FX-Neutral basis.” These non-GAAP financial measures are presented on a continuing operations basis.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company’s results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company’s results of operations in conjunction with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release, except for figures in this press release presented on an “FX-Neutral basis,” can be found in the tables included in this press release. For figures in this press release reported on an “FX-Neutral basis,” the company calculates the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company’s financial reporting.
For its internal budgeting process, and as discussed further below, the company’s management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments including changes in fair value, changes in foreign currency exchange rates and the impact of any related foreign exchange derivative instruments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company’s management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.
The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin and non-GAAP effective tax rate:
Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company’s stock price and the vesting of restricted stock by employees and the timing and size of stock option exercises, over which management has limited to no control, and as such management does not believe it correlates to the company’s operation of the business.
Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, significant gains or losses and transaction expenses from the acquisition or disposal of a business and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company’s business.
Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
Other certain significant gains, losses, or charges that are not indicative of the company’s core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results. These amounts include changes in fair value and the related change in foreign currency exchange rates of equity securities with readily determinable fair values, globally.
Change in fair market value of warrant. These are gains or losses associated with a warrant agreement that the company entered into with Adyen, which are attributable to changes in fair value during the period.
Income tax effects and adjustments. We use a non-GAAP tax rate for evaluating our operating results. Based on our current long-term projections, we are using a non-GAAP tax rate of 16.5%. This non-GAAP tax rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
In addition to the non-GAAP measures discussed above, the company also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company’s business, make strategic acquisitions, repurchase stock and pay dividends. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period and does not exclude certain non-discretionary expenditures, such as mandatory debt service requirements.
eBay Inc.
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income*
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(In millions, except percentages)
GAAP operating income
$ 549
$ 518
$ 1,180
$ 1,076
Stock-based compensation expense and related employer payroll taxes
158
158
308
290
Amortization of acquired intangible assets within cost of net revenues and operating expenses
9
8
17
18
Restructuring
3
—
(6)
42
Non-recurring legal matters
—
—
(6)
—
Other general and administrative expenses
1
—
1
2
Total non-GAAP operating income adjustments
171
166
314
352
Non-GAAP operating income
$ 720
$ 684
$ 1,494
$ 1,428
GAAP operating margin
21.3 %
20.4 %
23.0 %
21.3 %
Non-GAAP operating margin
27.9 %
26.9 %
29.1 %
28.3 %
*Presented on a continuing operations basis
Reconciliation of GAAP Net Income to Non-GAAP Net Income and
GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(In millions, except per share amounts and percentages)
GAAP income from continuing operations before income taxes
$ 328
$ 285
$ 864
$ 1,015
GAAP provision for income taxes
(102)
(113)
(199)
(274)
GAAP net income from continuing operations
$ 226
$ 172
$ 665
$ 741
Non-GAAP adjustments to net income from continuing operations:
Non-GAAP operating income from continuing operations adjustments (see table above)
$ 171
$ 166
$ 314
$ 352
Change in fair value of equity investment in Adevinta
—
210
234
36
Realized change in fair value of shares sold in Adevinta
(84)
—
(78)
—
Change in fair market value of warrant
174
(31)
25
(69)
Change in fair market value of other equity investments
23
35
29
49
Fair value of Aurelia option
109
—
109
—
Income tax effects and adjustments
(17)
3
(48)
46
Non-GAAP net income from continuing operations
$ 602
$ 555
$ 1,250
$ 1,155
Diluted net income from continuing operations per share:
GAAP
$ 0.45
$ 0.32
$ 1.30
$ 1.37
Non-GAAP
$ 1.18
$ 1.03
$ 2.43
$ 2.14
Shares used in GAAP diluted net income per share calculation
507
537
513
539
Shares used in non-GAAP diluted net income per share calculation
507
537
513
539
GAAP effective tax rate – Continuing operations
31.1 %
39.7 %
23.0 %
27.0 %
Income tax effects and adjustments to net income from continuing operations
(14.6) %
(23.2) %
(6.5) %
(10.5) %
Non-GAAP effective tax rate – Continuing operations
16.5 %
16.5 %
16.5 %
16.5 %
Reconciliation of Operating Cash Flow to Free Cash Flow
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(In millions)
Net cash provided by operating activities
$ 367
$ 605
$ 982
$ 1,446
Less: Purchases of property and equipment
(89)
(113)
(232)
(245)
Free cash flow
$ 278
$ 492
$ 750
$ 1,201
View original content to download multimedia:https://www.prnewswire.com/news-releases/ebay-inc-reports-second-quarter-2024-results-302211340.html
SOURCE eBay Inc.
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LYT ANNOUNCES DEPLOYMENT OF TRANSIT PRIORITY SOLUTIONS BY PARTNERING WITH ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA)
Published
26 mins agoon
September 19, 2024By
LYT.Transit Will Move Bus Transit Vehicles Through Congested Harbour Blvd. Corridor Safer and Faster
SANTA CLARA, Calif., Sept. 19, 2024 /PRNewswire/ — LYT, a leader in NextGen intelligent connected traffic technology solutions, announced today it has signed a contract with the Orange County Transportation Authority (OCTA) and the city of Fullerton for a one-year pilot program and the implementation of LYT’s leading NextGen transit priority solution (TSP), LYT.transit.
Serving as the primary contractor for TSP under the Master Service Agreement with Arcadis, a leading global design and consultancy organization for natural and built assets, LYT.transit will help solve congestion issues for traffic signals across the busy corridor of Harbour Blvd. The Orange County TSP deployment extends LYT’s rapid expansion throughout the west coast.
LYT’s leading transit signal priority solution, LYT.transit, moves bus transit vehicles through congested intersections faster, safer, and more intelligently. Harnessing the power of a single-edge device installed in the Traffic Management Center (TMC), bus transit vehicles speak directly to networked traffic signals through LYT’s open architecture cloud platform. This results in a consistent and reliable green light for every bus transit vehicle in the network.
Cities are realizing the distinct benefits of this technology due to LYT’s machine learning models and artificial intelligence technology that knows when to prioritize and activate a traffic signal. LYT’s system uses automotive data in an actionable way as it takes a broader traffic pattern ecosystem into account to have an impact on other surrounding signals, not just the one signal that traffic is heading toward.
“As the Southern California region continues to thrive, it is essential to implement advanced traffic signal prioritization technology to improve the daily commutes of Orange County residents,” said Tim Menard, CEO and Founder of LYT. “Our cutting-edge AI-powered technology ensures smoother traffic flow, reduces congestion, and enhances safety on today’s roads. By prioritizing public transportation and optimizing traffic signals, we are committed to creating a more efficient and sustainable transportation network that benefits all residents and businesses throughout Orange County.”
Gabriel Murillo, ITS and Connected Mobility Market Leader at Arcadis, said: “We are pleased to partner with LYT on LYT.transit, to help ease the impacts of traffic congestion for buses in Orange County. By harnessing the power of advanced AI and machine learning, LYT.transit is set to elevate transit efficiency, enhance safety, and contribute to a more sustainable transportation network for the residents and businesses of Orange County.”
About LYT
LYT is the leading provider of smart cities NextGen intelligent connected traffic technologies that orchestrates today’s Intelligent Transportation Systems. LYT’s AI-powered, open architecture, machine learning technology enables a suite of transit signal priority and emergency vehicle preemption solutions that utilize pre-existing vehicle tracking sensors and city communication networks to dynamically adjust the phase and timing of traffic signals to provide sufficient green clearance time while minimally impacting cross traffic. LYT is headquartered in Silicon Valley and serves municipalities across the US and Canada. Learn more at LYT.ai.
ABOUT ARCADIS
Arcadis is the world’s leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets. We are more than 36,000 architects, data analysts, designers, engineers, project planners, water management and sustainability experts, all driven by our passion for improving quality of life. As part of our commitment to accelerating a planet positive future, we work with our clients to make sustainable project choices, combining digital and human innovation, and embracing future-focused skills across the environment, energy and water, buildings, transport, and infrastructure sectors. We operate in over 30 countries, and in 2023 reported €5.0 billion in gross revenues. www.arcadis.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/lyt-announces-deployment-of-transit-priority-solutions-by-partnering-with-orange-county-transportation-authority-octa-302252300.html
SOURCE LYT
Technology
Safire Group Raises $8 Million in New Financing to Deliver Lithium-ion Battery Safety Technology to Government, Automotive Markets
Published
26 mins agoon
September 19, 2024By
Canaan Partners Leads Round to Establish SAFIRE™ Technology as New Benchmark for Battery Safety
KNOXVILLE, Tenn., Sept. 20, 2024 /PRNewswire/ — Safire Technology Group, Inc. (“Safire Group”), today announced $8 million in new financing led by Canaan Partners, with participation from Correlation Ventures, Higher Life Ventures, Ajinomoto Co., Inc., Automotive Ventures, Outpost Ventures, Potomac Angel Capital, and MaC Venture Capital. This Pre-Series A priced round of financing brings total funding to $11 million and fuels continued development of the company’s Safe, Impact-Resistant Electrolyte (SAFIRE™) technology to transform the safety benchmarks of Lithium-ion (Li-ion) batteries across government and automotive industries. Canaan’s Hrach Simonian will join co-founders John Lee and Mike Grubbs on the board of directors.
“We are grateful to have a highly regarded, deeply experienced, and values-aligned investor in Canaan, and we are eager to continue building Safire Group together,” said Mike Grubbs.
“Safire Group is revolutionizing Li-ion battery technology with a focus on safety. Their innovative solutions are addressing the critical issue of battery volatility and setting new standards in the industry,” said Hrach Simonian, General Partner of Canaan Partners. “Safety should be intrinsic to battery design, not an afterthought. Safire Group’s commitment to redefining how these batteries are used in mobility and government applications promises to unlock unprecedented opportunities on a global scale.”
SAFIRE is the world’s only patented and proprietary drop-in additive for Li-ion batteries that prevents fires through an instantaneous liquid to solid transformation upon kinetic impact, such as an electric vehicle (EV) crash or ballistic event. During an impact, Safire Group’s shear thickening electrolyte technology enables the battery to resist deformation and prevents a short circuit – providing EV makers with lightweight crash protection and enabling Li-ion batteries to be used in novel ways.
Invented after nearly a decade of research and development by the U.S. Department of Energy’s Oak Ridge National Laboratory (ORNL), SAFIRE is currently being deployed by the company in four distinct use cases across broad domains: a ruggedized electric motorcycle, a rapidly deployable sensor tower, an unmanned ground vehicle, and multifunctional body armor.
“There is significant demand across the government to integrate SAFIRE technology into novel, ruggedized applications. This financing allows us to expand our operations in the Knoxville, Tennessee area, continue collaboration with ORNL, and further demonstrate the benefits of SAFIRE in government and automotive markets,” said John Lee, CEO of Safire Group. “We are excited about our partnership with Canaan and the opportunities it brings for the next stages of growth in deploying safety solutions for energy systems. Our focus remains on protecting people and critical assets while driving innovation in safety.”
About SAFIRE
Safire Group is a venture-backed company developing advanced Li-ion battery technologies for government and automotive markets. The company’s core technology, SAFe Impact Resistant Electrolyte (SAFIRE™), is the world’s only patented and proprietary drop-in additive for Lithium-ion (Li-ion) batteries that prevents fire through an instantaneous liquid-to-solid transformation upon kinetic impact, such as an electric vehicle (EV) crash or ballistic event. For more information, visit: www.safire.co.
Media Contact
info@safire.co
Logo – https://mma.prnewswire.com/media/2508443/Safire_Technology_Group_logo.jpg
View original content:https://www.prnewswire.com/apac/news-releases/safire-group-raises-8-million-in-new-financing-to-deliver-lithium-ion-battery-safety-technology-to-government-automotive-markets-302253094.html
SOURCE Safire Technology Group, Inc.
Technology
Logistics Automation Market to Reach $55 Billion by 2030, Driven by E-Commerce and Supply Chain Transformation – LogisticsIQ
Published
26 mins agoon
September 19, 2024By
NEW DELHI, Sept. 19, 2024 /PRNewswire/ — According to LogisticsIQ‘s latest report (5th edition), Logistics Automation Market is expected to grow to $55 Billion by 2030, at a CAGR of 15% between 2024 and 2030. The drivers of growth are the growth in the e-commerce industry, multichannel distribution channels, digital services, increasing e-grocery penetration and dark stores, globalization of supply chain networks, emergence of autonomous mobile robots (AMRs) and increasing demand for same day / same hour delivery.
Market Trends and Key Drivers
E-Commerce Boom and Its Impact on Logistics
The exponential growth of the e-commerce industry has significantly transformed the $5 trillion global logistics industry. Online retail requires more complex logistical processes, including individual picking, packing, and shipping, which contrasts with the bulk transportation model of brick-and-mortar retail. This surge in online retail, coupled with the increasing need for faster delivery times, is putting immense pressure on logistics providers to automate.Challenges and Market Conditions (2021-2025)
In 2021, logistics automation companies had a huge order intake, however, revenue growth was constrained by supply chain disruptions. Thus, the industry entered in 2022 with a backlog of orders, which was eventually reduced by 2023 due to macroeconomic uncertainties. In 2024, order volumes began to rise again, but cautious capital expenditure from retailers slowed down investments due to inflation, low consumer spending, and geopolitical tensions. We expect order volumes expected to rebound in 2025 as retailers aim to meet increasing consumer demand.Emerging Technologies and Market Players
The past few years have seen the emergence of cutting-edge technologies like automated picking systems, mobile manipulators, and automated cold storage solutions. Significant investments in companies like Symbotic, Geek+, Fabric, and Exotec Solutions reflect this growth. At the same time, established players such as Dematic, Honeywell Intelligrated, SSI Schafer, and Toyota Advanced Logistics continue to innovate. Additionally, major retailers including Walmart, Kroger, Amazon, Ocado, and Carrefour are actively adopting these technologies to enhance their supply chain capabilities.Apart this, piece picking players such as Righthand Robotics, Nimble, Fizyr, Kindred, Covariant, OSARO, Plus One Robotics, Berkshire Grey, and AWL have established a new attractive capability for order picking in ecommerce fulfillment as picking is least automated process in existing warehouses.
Download a Free Sample of our report on the Logistics Automation Market
Industry Consolidation in Logistics Automation Market
Over the last decade, the logistics automation market has experienced significant consolidation. Traditional industry players are acquiring innovative technology leaders to stay competitive and address evolving market demands. Notable examples include:
Rockwell Automation’s acquisition of Clearpath Robotics and OTTO MotorsZebra’s acquisition of Fetch RoboticsToyota’s acquisition of Vanderlande, Bastian Solutions and ViaStoreHoneywell’s acquisition of Intelligrated and TransnormJungheinrich acquired Magazino and ArculusSSI Schafer acquired DS AutomotionABB acquired ASTI Mobile Robotics and SevensenseKPI Solutions acquired Kuecker Logistics Group, Pulse Integration, QC SoftwareKörber acquired Cohesio Group, Siemens Logistics, HighJumpTeradyne acquired MiR, Energid, AutoGuide Mobile Robots
These mergers and acquisitions reflect the ongoing shift towards automation and the integration of cutting-edge technologies across the supply chain.
Read full report on the Logistics Automation Market Size, Growth, Share, Trends, and Forecast
Key Markets and Growth Opportunities
Top Markets: The United States, China, and Germany account for more than 50% of the demand for logistics automation, with strong market penetration in Europe, particularly in Germany, Italy, France, and the Netherlands. Western Europe represents around 30% of the global market. Emerging markets in APAC, particularly in India and Southeast Asia, are also showing strong growth potential, as are regions like the Middle East and Latin America.Emerging opportunities: Latin America is still under-penetrated with regards to automation; however, things are set to change and market is set to observe a high growth in Brazil and Mexico. Within Europe, Central and Eastern Europe is a fast-growing region, with Poland and Czech Republic emerging as logistics hub and showing good growth prospects.Grocery Industry: The grocery sector is a key area for logistics automation, driven by the need for high-frequency deliveries and the growing demand for online grocery services. Grocery distributors ship high cubic volumes of merchandise to retail stores with frequent deliveries to ensure product freshness. Grocery distribution center operations are amongst the most labour intensive of any industry. Grocery automation market is expected to reach over $7 billion by 2030.AGV and AMR Market Growth: The market for Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) is projected to experience rapid growth, with a CAGR of over 20% by 2030. AMRs, which can operate without external guidance systems like optical tape or sensors, are becoming increasingly popular due to their ease of deployment in existing warehouse infrastructures.We expect AGVs/AMRs to have more than 20% market share by 2030 in this market led by players such as Seegrid, Balyo, Hai Robotics, Geek+, GreyOrange, HikRobot, Quicktron, Locus Robotics, Fetch Robotics (Zebra), 6 River Systems (Ocado), Teradyne (MiR, AutoGuide Mobile Robots), Rocla, JBT, ek-robotics, Omron, Rockwell Automation (Clearpath Robotics, OTTO Motors). We further see more consolidation and M&A in the mobile robots space as larger System integrators look to complete their product portfolios.
Order Picking and Automation Trends
Manual vs. Automated Picking: The order picking process remains one of the most labor-intensive tasks in the warehouse, especially in e-commerce fulfillment. While manual picking is still preferred for operations with a large variety of SKUs, automated picking systems and robotic solutions are gaining traction. Technologies such as RFID, pick-to-light, and pick-to-voice systems help improve efficiency even in semi-automated environments.Piece Picking Robots: Companies such as Righthand Robotics, Berkshire Grey, Osaro, and Covariant are leading the charge in developing piece picking robots that are ideal for e-commerce fulfillment. These robots significantly reduce labor costs and increase throughput, offering a high return on investment for businesses.
What will you get in this report?
500+ Pages, 290+ Exhibits and 350+ Market tables for7 major Industry Verticals (eCommerce, Grocery, General Merchandise, Apparel, Food & Beverage, 3PL, Wholesale)10 Technologies (Mobile Robots, AS/RS, Conveyors, Sortation, Order Picking, Automatic Identification and Data Capture (AIDC), Palletizing and Depalletizing Robots, Overhead systems, Software (Warehouse Management, Warehouse Execution, and Warehouse Control), and MRO services.6 regions and 28 countries (United States, Canada, United Kingdom, Germany, France, Italy, Spain, Netherlands, Nordics, China, Japan, India, Australia, Thailand, Vietnam, Singapore, Indonesia, South Korea, Malaysia, Philippines, Taiwan, Saudi Arabia, UAE, Turkey, South Africa, Argentina, Brazil, Mexico)Pivot-friendly Excel file with 350+ market tables including forecast till 2030In-depth analysis of 700 companies in the ecosystem with more than 140+ company profilesFocus Group Discussion with 100+ key industry stakeholders across the value chain to collect the first-hand information to validate our analysis2 Analyst Sessions to brainstorm furtherInvestment details with 150+ M&A and 750+ funding dealsLogisticsIQ™ Exclusive Market Map (~700 Players across 15+ categories)
About LogisticsIQ
LogisticsIQ is a dedicated market research and advisory firm in Logistics & Supply Chain sector, empowering decision makers from top fortune 1000 companies, financial and research institutions, private equity and high potential start-ups with market insights to make better decisions. We enable this by analysing the right mix of the best data, the best research methodologies, and the best industry panel to deliver value to our clients.
Media Contact
Name: Sunny M.
Email: sunny@thelogisticsiq.com
Phone: +91-952-918-4938
Photo: https://mma.prnewswire.com/media/2509503/Logistics_Automation_Market.jpg
Logo: https://mma.prnewswire.com/media/2320412/LogisticsIQ_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/logistics-automation-market-to-reach-55-billion-by-2030-driven-by-e-commerce-and-supply-chain-transformation—logisticsiq-302252917.html
LYT ANNOUNCES DEPLOYMENT OF TRANSIT PRIORITY SOLUTIONS BY PARTNERING WITH ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA)
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Logistics Automation Market to Reach $55 Billion by 2030, Driven by E-Commerce and Supply Chain Transformation – LogisticsIQ
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