eBay Inc. Expects to Enable $300 Billion of Global Commerce in 2015
Company outlines to investors three-year growth strategies to
drive core business growth and enable new mobile, local and global
commerce experiences for consumers and retailers
Declaring mobile is leading a “commerce revolution” that will create
significantly different consumer and retail experiences worldwide, eBay
Inc. (NASDAQ:EBAY) today outlined its three-year growth strategies to
lead and innovate in this technology-driven, more connected new commerce
environment.
In a company-held meeting for the financial community, eBay said it
intends to drive strong continued growth in its core Marketplaces,
PayPal and GSI Commerce businesses. At the same time, the company is
focused on leveraging its global mobile commerce leadership and other
commerce technologies to enable new experiences for consumers and
retailers.
“Led by mobile, a commerce revolution is under way,” said eBay Inc.
President and CEO John Donahoe. “Technology is creating a new
web-enabled retail interface, a new seamless, multiscreen commerce
experience that connects consumers anytime, anywhere. This will expand
shopping beyond conventional store environments and e-commerce sites.
How we shop is being transformed, and eBay Inc. intends to be a leader
in this new commerce world.”
In 2015, the company expects to enable $300 billion of global commerce,
compared to $175 billion in 2012; the company expects revenues to grow
over 50 percent to at least $21.5 billion in 2015, up from $14.1 billion
in 2012. Enabled commerce volume is the total commerce and payment
volume across all three business units, consisting of Marketplaces gross
merchandise volume, PayPal merchant services net total payment volume
and GSI global ecommerce merchandise sales.
Donahoe outlined three advantages that he believes will drive the
company’s growth:
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An expanded addressable market. eBay Inc. is no longer just an
e-commerce company, but a global commerce leader, Donahoe said. That
means the company now has growth opportunities across the estimated
$10 trillion commerce market.
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Mobile commerce leadership and innovation. eBay Inc.’s mobile
innovation capabilities across all operating systems and devices are a
competitive advantage, Donahoe said. In 2013, the company expects to
generate $20 billion of mobile commerce and payments volume.
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A strong portfolio of technology assets and capabilities. The
company’s core businesses and assets well position eBay to capitalize
and win in the new commerce environment.
Outlook
Based on current business trends and expectations, the company provided
the following financial outlook for 2013-2015:
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Total company revenues are expected to reach $21.5 billion to $23.5
billion in 2015, up from $14.1 billion in 2012, led by continued
innovation in the company’s core businesses and the company’s mobile
commerce leadership.
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The company expects compound annual non-GAAP earnings per share growth
of 15-19 percent from 2012 to 2015.
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Free cash flow is anticipated to be greater than $11 billion over the
three-year period.
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Marketplaces is expected to achieve revenues of $10.5 billion to $11.5
billion in 2015, representing a 14% compound annual growth rate at the
midpoint.
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PayPal is expected to achieve revenue growth of $9.5 billion to $10.5
billion in 2015, representing a 22% compound annual growth rate at the
midpoint.
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GSI Commerce is expected to achieve revenue growth of $1.5 billion to
$1.7 billion in 2015, representing a 14% compound annual growth rate
at the midpoint.
About eBay Inc.
Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) is a global
commerce platform and payments leader connecting millions of buyers and
sellers. We do so through eBay, the world's largest online marketplace,
which allows users to buy and sell in nearly every country on earth;
through PayPal, which enables individuals and businesses to securely,
easily and quickly send and receive digital payments; and through GSI,
which facilitates ecommerce, multichannel retailing and digital
marketing for global enterprises. X.commerce harnesses the developer
community of Magento, an ecommerce platform, by providing technology
solutions and eBay Inc. capabilities to merchants of all sizes,
supporting eBay Inc.'s mission of enabling commerce. We also reach
millions through specialized marketplaces such as StubHub, the world's
largest ticket marketplace, and eBay classifieds sites, which together
have a presence in more than 1,000 cities around the world. For more
information about the company and its global portfolio of online brands,
visit www.ebayinc.com.
Non-GAAP Financial Measures
This press release includes the following financial measure defined as a
“non-GAAP financial measure” by the Securities and Exchange Commission,
or SEC: free cash flow. This measure 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 or as a substitute for the financial information prepared and
presented in accordance with generally accepted accounting principles.
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 company’s projected financial outlook for
2013-2015 and future growth in the Marketplaces, PayPal and GSI
businesses, mobile commerce and mobile payments. The company's actual
results could differ materially from those predicted 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: changes in political, business and
economic conditions, including any European or general economic downturn
or crisis and any conditions that affect ecommerce growth; fluctuations
in foreign currency exchange rates; the company's ability to profitably
integrate, manage and grow businesses that have been acquired recently
or may be acquired in the future; the company's need to successfully
react to the increasing importance of mobile payments and mobile
commerce and the increasing social aspect of commerce; the company's
ability to deal with the increasingly competitive ecommerce environment,
including competition for its sellers from other trading sites and other
means of selling, and competition for its buyers from other merchants,
online and offline; the company's need to manage an increasingly large
enterprise with a broad range of businesses of varying degrees of
maturity and in many different geographies; the effect of management
changes and business initiatives; the company's need and ability to
manage other regulatory, tax and litigation risks as its services are
offered in more jurisdictions and applicable laws become more
restrictive; any changes the company may make to its product offerings;
the competitive, regulatory, credit card association-related and other
risks specific to PayPal and Bill Me Later, especially as PayPal
continues to expand geographically and introduce new products and as new
laws and regulations related to financial services companies come into
effect; the company's ability to timely upgrade and develop its systems,
infrastructure and customer service capabilities, including GSI's v.11
initiative, at reasonable cost; and the company's ability to maintain
site stability and performance on all of its sites while adding new
products and features in a timely fashion. 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 http://investor.ebayinc.com
or the SEC's website at www.sec.gov.
Undue reliance should not be placed on the forward-looking statements in
this release, which are based on information available to the company on
the date hereof. eBay assumes no obligation to update such statements.