Delaware | 000-24821 | 77-0430924 |
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
of incorporation) | Identification No.) |
99.1 | Press release dated October 16, 2013 |
eBay Inc. | ||
(Registrant) | ||
Date: October 16, 2013 | /s/ Michael R. Jacobson | |
Michael R. Jacobson | ||
Title: Senior Vice President, Legal Affairs, | ||
General Counsel and Secretary | ||
Exhibit Number | Description |
99.1 | Press release dated October 16, 2013 |
Third Quarter | ||||
2013 | 2012 | Change | ||
eBay Inc. | ||||
Net revenue | $3,892 | $3,404 | $488 | 14% |
Enabled commerce volume (ECV) | $51,507 | $42,593 | $8,914 | 21% |
GAAP | ||||
Net income | $689 | $597 | $92 | 15% |
Earnings per diluted share | $0.53 | $0.45 | $0.07 | 16% |
Non-GAAP | ||||
Net income | $837 | $718 | $119 | 17% |
Earnings per diluted share | $0.64 | $0.55 | $0.09 | 17% |
Third Quarter | ||||
2013 | 2012 | Change | ||
Business Units | ||||
Payments | ||||
Net revenue | $1,620 | $1,367 | $253 | 19% |
Net total payment volume | $43,837 | $35,159 | $8,678 | 25% |
Marketplaces | ||||
Net revenue | $2,027 | $1,806 | $221 | 12% |
Gross merchandise volume (GMV), excl. vehicles | $18,360 | $16,281 | $2,079 | 13% |
Enterprise | ||||
Net revenue | $238 | $226 | $12 | 5% |
Merchandise Sales | $787 | $698 | $89 | 13% |
• | Operating margin — GAAP operating margin increased to 20.5% for the third quarter of 2013, compared to 19.6% for the same period last year. Non-GAAP operating margin increased to 26.8% in the third quarter, compared to 26.3% for the same period last year. |
• | Taxes — The GAAP effective tax rate for the third quarter of 2013 was 21%, compared to 11% for the third quarter of 2012. The increase in the company's GAAP effective tax rate was due to an increase in earnings in higher tax jurisdictions and the repayment of the Kynetic note receivable and the sale of our investments in RueLaLa and ShopRunner. For the third quarter of 2013 and 2012, the non-GAAP effective tax rate was 19% and 20%, respectively. |
• | Cash flow — The company generated $1.3 billion of operating cash flow and $1.0 billion of free cash flow during the third quarter of 2013. The company's investing activities benefited from proceeds of $485 million from the repayment of the Kynetic note receivable and the sale of our investments in RueLaLa and ShopRunner. |
• | Stock repurchase program — The company repurchased approximately $146 million of its common stock in the third quarter of 2013. |
• | Cash and cash equivalents and non-equity investments — The company's cash and cash equivalents and non-equity investments portfolio totaled $13.0 billion at September 30, 2013, up from $11.5 billion at December 31, 2012. |
• | Fourth quarter 2013 — the company expects net revenues in the range of $4,500 - $4,600 million with GAAP earnings per diluted share in the range of $0.67 - $0.69 and non-GAAP earnings per diluted share in the range of $0.79 - $0.81. The company’s fourth quarter outlook assumes that the pending acquisition of Braintree will close late in the fourth quarter of 2013. |
Investor Relations Contact: | Tracey Ford; Tom Hudson | tford@ebay.com; thhudson@ebay.com |
Media Relations Contact: | Amanda Miller | press@ebay.com |
Investor Information Request: | 408-376-7493 | |
Company News: | http://www.ebayinc.com/news | |
Investor Relations website: | http://investor.ebayinc.com |
September 30, 2013 | December 31, 2012 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 5,280 | $ | 6,817 | |||
Short-term investments | 4,991 | 2,591 | |||||
Accounts receivable, net | 772 | 822 | |||||
Loans and interest receivable, net | 2,434 | 2,160 | |||||
Funds receivable and customer accounts | 9,073 | 8,094 | |||||
Other current assets | 926 | 914 | |||||
Total current assets | 23,476 | 21,398 | |||||
Long-term investments | 4,138 | 3,044 | |||||
Property and equipment, net | 2,763 | 2,491 | |||||
Goodwill | 8,566 | 8,537 | |||||
Intangible assets, net | 863 | 1,128 | |||||
Other assets | 261 | 476 | |||||
Total assets | $ | 40,067 | $ | 37,074 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 408 | $ | 413 | |||
Accounts payable | 288 | 301 | |||||
Funds payable and amounts due to customers | 9,073 | 8,094 | |||||
Accrued expenses and other current liabilities | 2,008 | 1,916 | |||||
Deferred revenue | 164 | 137 | |||||
Income taxes payable | 87 | 63 | |||||
Total current liabilities | 12,028 | 10,924 | |||||
Deferred and other tax liabilities, net | 914 | 972 | |||||
Long-term debt | 4,123 | 4,106 | |||||
Other liabilities | 235 | 207 | |||||
Total liabilities | 17,300 | 16,209 | |||||
Total stockholders' equity | 22,767 | 20,865 | |||||
Total liabilities and stockholders' equity | $ | 40,067 | $ | 37,074 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Net revenues | $ | 3,892 | $ | 3,404 | $ | 11,517 | $ | 10,079 | |||||||
Cost of net revenues (1) | 1,224 | 1,022 | 3,587 | 2,992 | |||||||||||
Gross profit | 2,668 | 2,382 | 7,930 | 7,087 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing (1) | 755 | 726 | 2,223 | 2,120 | |||||||||||
Product development (1) | 433 | 389 | 1,318 | 1,157 | |||||||||||
General and administrative (1) | 415 | 369 | 1,242 | 1,131 | |||||||||||
Provision for transaction and loan losses | 185 | 148 | 553 | 413 | |||||||||||
Amortization of acquired intangible assets | 81 | 83 | 245 | 251 | |||||||||||
Total operating expenses | 1,869 | 1,715 | 5,581 | 5,072 | |||||||||||
Income from operations | 799 | 667 | 2,349 | 2,015 | |||||||||||
Interest and other, net | 74 | 5 | 89 | 74 | |||||||||||
Gain on divested business | — | — | — | 118 | |||||||||||
Income before income taxes | 873 | 672 | 2,438 | 2,207 | |||||||||||
Provision for income taxes | (184 | ) | (75 | ) | (432 | ) | (348 | ) | |||||||
Net income | $ | 689 | $ | 597 | $ | 2,006 | $ | 1,859 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.53 | $ | 0.46 | $ | 1.55 | $ | 1.44 | |||||||
Diluted | $ | 0.53 | $ | 0.45 | $ | 1.53 | $ | 1.42 | |||||||
Weighted average shares: | |||||||||||||||
Basic | 1,295 | 1,292 | 1,296 | 1,291 | |||||||||||
Diluted | 1,310 | 1,314 | 1,314 | 1,311 | |||||||||||
(1) Includes stock-based compensation as follows: | |||||||||||||||
Cost of net revenues | $ | 9 | $ | 13 | $ | 45 | $ | 41 | |||||||
Sales and marketing | 38 | 35 | 112 | 99 | |||||||||||
Product development | 42 | 34 | 120 | 101 | |||||||||||
General and administrative | 51 | 40 | 135 | 119 | |||||||||||
$ | 140 | $ | 122 | $ | 412 | $ | 360 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 689 | $ | 597 | $ | 2,006 | $ | 1,859 | |||||||
Adjustments: | |||||||||||||||
Provision for transaction and loan losses | 185 | 148 | 553 | 413 | |||||||||||
Depreciation and amortization | 357 | 311 | 1,033 | 882 | |||||||||||
Gain on sale of RueLaLa and ShopRunner | (75 | ) | — | (75 | ) | — | |||||||||
Gain on divested business | — | — | — | (118 | ) | ||||||||||
Stock-based compensation | 140 | 122 | 412 | 360 | |||||||||||
Changes in assets and liabilities, net of acquisition effects | 38 | (24 | ) | (647 | ) | (943 | ) | ||||||||
Net cash provided by operating activities | 1,334 | 1,154 | 3,282 | 2,453 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (317 | ) | (362 | ) | (969 | ) | (961 | ) | |||||||
Changes in principal loans receivable, net | (212 | ) | (180 | ) | (395 | ) | (335 | ) | |||||||
Purchases of investments | (3,702 | ) | (126 | ) | (5,726 | ) | (1,470 | ) | |||||||
Maturities and sales of investments | 912 | 309 | 2,710 | 938 | |||||||||||
Acquisitions, net of cash acquired | (70 | ) | (10 | ) | (85 | ) | (143 | ) | |||||||
Repayment of Kynetic note receivable and sale of RueLaLa and ShopRunner | 485 | — | 485 | — | |||||||||||
Proceeds from divested business, net of cash disposed | — | — | — | 144 | |||||||||||
Other | — | (61 | ) | (14 | ) | (77 | ) | ||||||||
Net cash used in investing activities | (2,904 | ) | (430 | ) | (3,994 | ) | (1,904 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of common stock | 57 | 134 | 301 | 359 | |||||||||||
Repurchases of common stock | (146 | ) | (47 | ) | (1,088 | ) | (642 | ) | |||||||
Excess tax benefits from stock-based compensation | 19 | 27 | 180 | 95 | |||||||||||
Tax withholdings related to net share settlements of restricted stock units and awards | (21 | ) | (20 | ) | (247 | ) | (152 | ) | |||||||
Net (repayments) and borrowings under commercial paper program | — | (550 | ) | — | (550 | ) | |||||||||
Proceeds from the issuance of debt, net of issuance costs | — | 2,976 | — | 2,976 | |||||||||||
Funds receivable and customer accounts, net | (61 | ) | (511 | ) | (979 | ) | (839 | ) | |||||||
Funds payable and amounts due to customers, net | 61 | 511 | 979 | 839 | |||||||||||
Other | — | (4 | ) | — | (4 | ) | |||||||||
Net cash (used in) provided by financing activities | (91 | ) | 2,516 | (854 | ) | 2,082 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 86 | 53 | 29 | 9 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (1,575 | ) | 3,293 | (1,537 | ) | 2,640 | |||||||||
Cash and cash equivalents at beginning of period | 6,855 | 4,038 | 6,817 | 4,691 | |||||||||||
Cash and cash equivalents at end of period | $ | 5,280 | $ | 7,331 | $ | 5,280 | $ | 7,331 |
Net Revenues by Type | |||||||||||||||
Three Months Ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2013 | 2013 | 2013 | 2012 | 2012 | |||||||||||
Net transaction revenues | (In millions, except percentages) | ||||||||||||||
Marketplaces | $ | 1,668 | $ | 1,637 | $ | 1,608 | $ | 1,672 | $ | 1,490 | |||||
Current quarter vs prior quarter | 2 | % | 2 | % | (4 | )% | 12 | % | — | % | |||||
Current quarter vs prior year quarter | 12 | % | 10 | % | 13 | % | 16 | % | 10 | % | |||||
Percent of Marketplaces revenue from international | 54 | % | 55 | % | 55 | % | 56 | % | 55 | % | |||||
Payments | 1,493 | 1,475 | 1,435 | 1,432 | 1,264 | ||||||||||
Current quarter vs prior quarter | 1 | % | 3 | % | — | % | 13 | % | 2 | % | |||||
Current quarter vs prior year quarter | 18 | % | 20 | % | 18 | % | 24 | % | 22 | % | |||||
Percent of Payments revenue from international | 56 | % | 56 | % | 55 | % | 56 | % | 55 | % | |||||
Enterprise | 185 | 194 | 186 | 333 | 170 | ||||||||||
Current quarter vs prior quarter | (5 | )% | 4 | % | (44 | )% | 97 | % | 3 | % | |||||
Current quarter vs prior year quarter | 9 | % | 18 | % | 2 | % | 13 | % | 14 | % | |||||
Percent of Enterprise revenue from international | 4 | % | 5 | % | 5 | % | 3 | % | 3 | % | |||||
Total net transaction revenues | 3,346 | 3,306 | 3,229 | 3,437 | 2,925 | ||||||||||
Current quarter vs prior quarter | 1 | % | 2 | % | (6 | )% | 17 | % | 1 | % | |||||
Current quarter vs prior year quarter | 14 | % | 14 | % | 14 | % | 19 | % | 15 | % | |||||
Marketing services and other revenues | |||||||||||||||
Marketplaces | 359 | 364 | 349 | 378 | 316 | ||||||||||
Current quarter vs prior quarter | (1 | )% | 4 | % | (8 | )% | 20 | % | (2 | )% | |||||
Current quarter vs prior year quarter | 14 | % | 13 | % | 15 | % | 15 | % | 5 | % | |||||
Percent of Marketplaces revenue from international | 75 | % | 75 | % | 75 | % | 72 | % | 75 | % | |||||
Payments | 127 | 149 | 113 | 109 | 102 | ||||||||||
Current quarter vs prior quarter | (15 | )% | 32 | % | 4 | % | 7 | % | (17 | )% | |||||
Current quarter vs prior year quarter | 25 | % | 21 | % | 22 | % | 32 | % | 37 | % | |||||
Percent of Payments revenue from international | 3 | % | 3 | % | 4 | % | 5 | % | 6 | % | |||||
Enterprise | 53 | 52 | 50 | 65 | 57 | ||||||||||
Current quarter vs prior quarter | 2 | % | 4 | % | (23 | )% | 14 | % | — | % | |||||
Current quarter vs prior year quarter | (7 | )% | (9 | )% | (9 | )% | (6 | )% | 4 | % | |||||
Percent of Enterprise revenue from international | — | % | — | % | — | % | — | % | — | % | |||||
Corporate and other | 14 | 14 | 12 | 12 | 11 | ||||||||||
Total marketing services and other revenues | 553 | 579 | 524 | 564 | 485 | ||||||||||
Current quarter vs prior quarter | (4 | )% | 10 | % | (7 | )% | 16 | % | (5 | )% | |||||
Current quarter vs prior year quarter | 14 | % | 13 | % | 15 | % | 16 | % | 13 | % | |||||
Elimination of inter-segment net revenue and other (1) | (7 | ) | (8 | ) | (5 | ) | $ | (9 | ) | $ | (6 | ) | |||
Total net revenues | $ | 3,892 | $ | 3,877 | $ | 3,748 | $ | 3,992 | $ | 3,404 | |||||
Current quarter vs prior quarter | — | % | 3 | % | (6 | )% | 17 | % | — | % | |||||
Current quarter vs prior year quarter | 14 | % | 14 | % | 14 | % | 18 | % | 15 | % |
(1) | Represents revenue generated between our reportable segments. |
Net Revenues by Geography (1) | Three Months Ended | ||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2013 | 2013 | 2013 | 2012 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
U.S. net revenues | $ | 1,873 | $ | 1,870 | $ | 1,789 | $ | 1,949 | $ | 1,637 | |||||
Current quarter vs prior quarter | — | % | 5 | % | (8 | )% | 19 | % | 2 | % | |||||
Current quarter vs prior year quarter | 14 | % | 16 | % | 13 | % | 17 | % | 15 | % | |||||
Percent of total | 48 | % | 48 | % | 48 | % | 49 | % | 48 | % | |||||
International net revenues | 2,019 | 2,007 | 1,959 | 2,043 | 1,767 | ||||||||||
Current quarter vs prior quarter | 1 | % | 2 | % | (4 | )% | 16 | % | (1 | )% | |||||
Current quarter vs prior year quarter | 15 | % | 12 | % | 16 | % | 19 | % | 15 | % | |||||
Percent of total | 52 | % | 52 | % | 52 | % | 51 | % | 52 | % | |||||
Total net revenues | $ | 3,892 | $ | 3,877 | $ | 3,748 | $ | 3,992 | $ | 3,404 | |||||
Current quarter vs prior quarter | — | % | 3 | % | (6 | )% | 17 | % | — | % | |||||
Current quarter vs prior year quarter | 14 | % | 14 | % | 14 | % | 18 | % | 15 | % |
(1) | Revenues are attributed to U.S. and international geographies primarily based upon the country in which the seller, payment recipient, customer, website that displays advertising, or other service provider, as the case may be, is located. |
Three Months Ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2013 | 2013 | 2013 | 2012 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
ECV (1) | $51,507 | $50,597 | $48,795 | $50,186 | $42,593 | ||||||||||
Current quarter vs prior quarter | 2 | % | 4 | % | (3 | %) | 18 | % | 2 | % | |||||
Current quarter vs prior year quarter | 21 | % | 21 | % | 19 | % | N/A | N/A |
(1) | Represents the total commerce and payment volume across all three business units consisting of Marketplaces GMV, PayPal Merchant Services TPV and Merchandise Sales not earned on eBay or paid for via PayPal or Bill Me Later during the period. Excludes volume transacted through the Magento platform. PayPal Merchant Services TPV is the total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, Bill Me Later accounts and Zong during the period, excluding PayPal's payment gateway business and payments for transactions on our Marketplaces and Enterprise platforms. |
Three Months Ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2013 | 2013 | 2013 | 2012 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
Active registered accounts (1) | 137.4 | 132.4 | 127.7 | 122.7 | 117.4 | ||||||||||
Current quarter vs prior quarter | 4 | % | 4 | % | 4 | % | 5 | % | 4 | % | |||||
Current quarter vs prior year quarter | 17 | % | 17 | % | 16 | % | 15 | % | 14 | % | |||||
Net number of payments (2) | 729.4 | 700.6 | 681.6 | 691.7 | 589.2 | ||||||||||
Current quarter vs prior quarter | 4 | % | 3 | % | (1 | )% | 17 | % | 4 | % | |||||
Current quarter vs prior year quarter | 24 | % | 24 | % | 23 | % | 26 | % | 28 | % | |||||
Net total payment volume (3) | $43,837 | $42,813 | $41,040 | $41,471 | $35,159 | ||||||||||
Current quarter vs prior quarter | 2 | % | 4 | % | (1 | )% | 18 | % | 2 | % | |||||
Current quarter vs prior year quarter | 25 | % | 24 | % | 21 | % | 24 | % | 20 | % | |||||
On eBay net total payment volume as % of net total payment volume | 30 | % | 30 | % | 32 | % | 32 | % | 33 | % | |||||
Merchant Services net total payment volume as % of net total payment volume | 70 | % | 70 | % | 68 | % | 68 | % | 67 | % | |||||
Transaction rates | |||||||||||||||
Take rate | 3.70 | % | 3.79 | % | 3.77 | % | 3.72 | % | 3.89 | % | |||||
Transaction expense | 1.05 | % | 1.04 | % | 1.05 | % | 1.03 | % | 1.07 | % | |||||
Loss rate | 0.30 | % | 0.31 | % | 0.29 | % | 0.28 | % | 0.30 | % | |||||
Transaction margin (4) | 63.4 | % | 64.4 | % | 64.4 | % | 64.7 | % | 64.8 | % | |||||
Loan portfolio rates | |||||||||||||||
Risk adjusted margin (5) | 16.1 | % | 16.2 | % | 15.8 | % | 15.6 | % | 16.5 | % | |||||
Net charge-off rate (6) | 5.5 | % | 5.6 | % | 5.3 | % | 5.3 | % | 4.9 | % | |||||
90-day delinquency rate (7) | 3.2 | % | 2.7 | % | 2.7 | % | 2.7 | % | 2.9 | % |
(1) | All registered accounts that successfully sent or received at least one payment or payment reversal through the PayPal system or Bill Me Later accounts that are currently able to transact and that received a statement within the last 12 months. |
(2) | Number of payments, net of payment reversals, successfully completed through our Payments networks, Bill Me Later accounts and Zong during the quarter, excluding PayPal's payments gateway business. |
(3) | Total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, Bill Me Later accounts and Zong during the quarter, excluding PayPal's payment gateway business. |
(4) | Transaction margin calculation has been adjusted to include total revenues (including revenue from credit) less transaction expense (including credit cost of funds) less transaction loss (including credit loan losses), divided by global take rate (based on global total revenues divided by total TPV). |
(5) | The risk adjusted margin represents the annualized ratio of Bill Me Later revenue, excluding contra-revenue incentives to customers or merchants, less cost of funds, and less net credit and fraud losses relative to average loans receivable for the quarter. |
(6) | Net charge-off rate represents the annualized ratio of Bill Me Later net credit losses relative to average loans receivable for the quarter. |
(7) | 90-day delinquency rate is the ratio of Bill Me Later end of period account balances that have missed three or more consecutive payments relative to total ending loan receivables. |
Three Months Ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2013 | 2013 | 2013 | 2012 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
Active Users (1) | 123.6 | 119.7 | 116.2 | 112.3 | 108.3 | ||||||||||
Current quarter vs prior quarter | 3 | % | 3 | % | 3 | % | 4 | % | 3 | % | |||||
Current quarter vs prior year quarter | 14 | % | 14 | % | 13 | % | 12 | % | 10 | % | |||||
Gross Merchandise Volume (excluding vehicles) (2) | $18,360 | $18,292 | $18,326 | $19,105 | $16,281 | ||||||||||
Current quarter vs prior quarter | — | % | — | % | (4 | )% | 17 | % | 1 | % | |||||
Current quarter vs prior year quarter | 13 | % | 13 | % | 13 | % | 16 | % | 11 | % | |||||
U.S. GMV as % of total GMV | 40 | % | 40 | % | 40 | % | 38 | % | 40 | % | |||||
International GMV as % of total GMV | 60 | % | 60 | % | 60 | % | 62 | % | 60 | % | |||||
Vehicles Gross Merchandise Volume (3) | $1,765 | $1,805 | $1,686 | $1,727 | $1,994 | ||||||||||
Current quarter vs prior quarter | (2 | )% | 7 | % | (2 | )% | (13 | )% | (1 | )% | |||||
Current quarter vs prior year quarter | (11 | )% | (11 | )% | (10 | )% | (7 | )% | (7 | )% | |||||
Fixed Price Trading (4) as % of total gross merchandise volume | 71 | % | 69 | % | 68 | % | 68 | % | 66 | % |
(1) | All users, excluding users of Half.com, StubHub, and our Korean subsidiary, who bid on, bought, listed or sold an item within the previous 12-month period. Users may register more than once, and as a result, may have more than one account. |
(2) | Total value of all successfully closed items between users on Marketplaces trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction, excluding vehicles gross merchandise volume. |
(3) | Total value of all successfully closed vehicle transactions between users on Marketplaces trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction. |
(4) | Primarily, total gross merchandise volume related to eBay's “Buy It Now” feature on Marketplaces trading platforms relative to total gross merchandise volume during the quarter. |
Three Months Ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2013 | 2013 | 2013 | 2012 | 2012 | |||||||||||
(In millions, except percentages) | |||||||||||||||
Merchandise Sales (1) | $787 | $815 | $807 | $1,595 | $698 | ||||||||||
Current quarter vs prior quarter | (3 | %) | 1 | % | (49 | %) | 129 | % | 4 | % | |||||
Current quarter vs prior year quarter | 13 | % | 21 | % | 13 | % | 17 | % | 16 | % |
(1) | Represents the retail value of all sales transactions, inclusive of freight charges and net of allowance for returns and discounts, which flow through our Enterprise Commerce Technologies, whether we record the full amount of such transaction as a product sale or a percentage of such transaction as a service fee. |
Three Months Ending (a) | |||
December 31, 2013 | |||
(In millions, except per share amounts) | GAAP | Non-GAAP (b) | |
Net Revenue | $4,500 - $4,600 | $4,500 - $4,600 | |
Diluted EPS | $0.67 - $0.69 | $0.79 - $0.81 |
(a) | For the three months ending December 31, 2013, the company’s outlook assumes that the pending acquisition of Braintree will close late in the fourth quarter of 2013. |
(b) | Estimated non-GAAP amounts above for the three months ending December 31, 2013, reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $95-$105 million and estimated stock-based compensation expense and employer payroll taxes on stock-based compensation expense of approximately $145-$155 million as well as the related tax impact. |
Three Months Ended | |||||||
September 30, | September 30, | ||||||
2013 | 2012 | ||||||
(In millions, except percentages) | |||||||
GAAP operating income | $ | 799 | $ | 667 | |||
Stock-based compensation expense and related employer payroll taxes | 141 | 125 | |||||
Amortization of acquired intangible assets within cost of net revenues | 19 | 20 | |||||
Amortization of acquired intangible assets within operating expenses | 81 | 83 | |||||
Total non-GAAP operating income adjustments | 241 | 228 | |||||
Non-GAAP operating income | $ | 1,040 | $ | 895 | |||
Non-GAAP operating margin | 26.8 | % | 26.3 | % |
Three Months Ended | |||||||
September 30, | September 30, | ||||||
2013 | 2012 | ||||||
(In millions, except per share amounts) | |||||||
GAAP income before income taxes | $ | 873 | $ | 672 | |||
GAAP provision for income taxes | (184 | ) | (75 | ) | |||
GAAP net income | $ | 689 | $ | 597 | |||
Non-GAAP adjustments to net income: | |||||||
Non-GAAP operating income adjustments (see table above) | 241 | 228 | |||||
Accretion of note receivable | (5 | ) | (4 | ) | |||
Acquisition related items | — | (2 | ) | ||||
Amortization of intangibles of investments | 2 | — | |||||
Gain on sale of RueLaLa and ShopRunner | (75 | ) | — | ||||
Gain on divested business | — | — | |||||
Tax effect of non-GAAP adjustments | (15 | ) | (101 | ) | |||
Non-GAAP net income | $ | 837 | $ | 718 | |||
Diluted net income per share: | |||||||
GAAP | $ | 0.53 | $ | 0.45 | |||
Non-GAAP | $ | 0.64 | $ | 0.55 | |||
Shares used in GAAP and non-GAAP diluted net income per-share calculation | 1,310 | 1,314 | |||||
GAAP effective tax rate | 21 | % | 11 | % | |||
Tax effect of non-GAAP adjustments to net income | (2 | )% | 9 | % | |||
Non-GAAP effective tax rate | 19 | % | 20 | % |
Three Months Ended | |||||||
September 30, | September 30, | ||||||
2013 | 2012 | ||||||
(In millions) | |||||||
Net cash provided by operating activities | $ | 1,334 | $ | 1,154 | |||
Less: Purchases of property and equipment | (317 | ) | (362 | ) | |||
Free cash flow | $ | 1,017 | $ | 792 |
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