Technology
eBay Inc. Reports Fourth Quarter and Full Year 2024 Results
Published
1 year agoon
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Revenue of $2.6 billion, up 1% on an as-reported and FX-Neutral basis Gross Merchandise Volume (“GMV”) of $19.3 billion, up 4% on an as-reported basis and up 3% on an FX-Neutral basisGAAP and Non-GAAP earnings per diluted share of $1.40 and $1.25, respectivelyGAAP and Non-GAAP operating margins of 21.1% and 27.0%, respectivelyReturned $1.0 billion to stockholders in Q4, including $900 million of share repurchases and $128 million paid in cash dividends
SAN JOSE, Calif., Feb. 26, 2025 /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 fourth quarter and full year ended December 31, 2024.
“eBay achieved three consecutive quarters of GMV growth to end 2024, and we took significant steps toward our vision of reinventing the future of ecommerce for enthusiasts,” said Jamie Iannone, Chief Executive Officer at eBay. “I’m proud of how the team has innovated for our buyers and sellers, which has driven significant value for shareholders.”
“eBay delivered strong results in the fourth quarter, as we met or exceeded expectations across our key financial metrics,” said Steve Priest, Chief Financial Officer at eBay. “We created a solid foundation to build upon in 2025, and our outlook reflects our confidence in eBay’s ability to drive sustainable, long-term growth.”
Fourth Quarter Financial Highlights
Revenue was $2.6 billion, up 1% on an as-reported and foreign exchange (“FX”) neutral basis.GMV was $19.3 billion, up 4% on an as-reported basis and up 3% on an FX-Neutral basis.GAAP net income from continuing operations was $680 million, or $1.40 per diluted share.Non-GAAP net income from continuing operations was $607 million, or $1.25 per diluted share.GAAP and Non-GAAP operating margins were 21.1% and 27.0%, respectively.Generated $677 million of operating cash flow and $560 million of free cash flow.Returned $1.0 billion to stockholders, including $900 million of share repurchases and $128 million paid in cash dividends.
Full Year Financial Highlights
Revenue was $10.3 billion, up 2% on an as-reported and FX-Neutral basis.GMV was $74.7 billion, up 2% on an as-reported basis and up 1% on an FX-Neutral basis.GAAP net income from continuing operations was $2.0 billion, or $3.95 per diluted share.Non-GAAP net income from continuing operations was $2.4 billion, or $4.88 per diluted share.GAAP and Non-GAAP operating margins were 22.5% and 28.1%, respectively.Generated $2.4 billion of operating cash flow and $2.0 billion of free cash flow.Returned $3.7 billion to stockholders, including $3.1 billion of share repurchases and $533 million paid in cash dividends.
Business Highlights
eBay made a significant investment in the U.K. market to improve the customer experience for consumer-to-consumer (C2C) sellers, including introducing a simplified listing flow on mobile, launching eBay Balance and Managed Shipping, and revamping local pickup and discovery capabilities. eBay also eliminated final value fees and regulatory operating fees for U.K. C2C sellers across all categories, excluding motor vehicles.eBay expanded its artificial intelligence (AI)-powered magical bulk listing tool from Sports Trading Cards to all categories in the U.S., making it faster and easier for sellers to create detailed, eye-catching listings and get more inventory in front of buyers.eBay’s total advertising offerings generated $445 million of revenue in the fourth quarter, representing 2.3% of GMV. The company’s first-party advertising products delivered $434 million of revenue in the fourth quarter, up 18% on an as-reported basis and up 16% on an FX-Neutral basis.After a successful launch in Germany, eBay introduced Klarna’s ‘buy now, pay later’ payment options to millions of shoppers in the U.K., Austria, France, Italy, the Netherlands and Spain. Additionally, Klarna users in these countries can now resell items bought through the Klarna app on eBay in minutes, with automatic listing details and images, giving people more flexibility in how they sell.To offer more locally relevant payment methods, eBay partnered with Riverty to offer buyers in Germany the option to pay using a monthly invoice, one of the most popular ways German consumers pay online.eBay announced the latest in its series of exclusive drops from the closets of some of fashion and entertainment’s most influential figures with ‘From The Collection: Margherita Maccapani Missoni.’ The collection features exclusive pre-owned, vintage and archival pieces curated by the fashion designer.
Impact
Through eBay for Charity, buyers and sellers around the world contributed nearly $49 million in Q4, up 11% year-over-year, and more than $192 million for the full year, up 18% year-over-year.In 2024, the eBay Foundation granted nearly $18 million to strategic nonprofit organizations focused on advancing inclusive entrepreneurship.eBay received many accolades in 2024, including being named as one of the Most Innovative Companies by Fortune, The World’s Most Sustainable Companies by Time, the World’s Top Companies for Women by Forbes, and Best Employers for New Grads by Forbes.Further reinforcing the company’s commitment to sustainability, eBay sourced 100% of its electricity consumption for eBay-controlled offices and data centers from renewable sources in 2024, reaching its renewable energy goal one year early. More recently, in 2025, eBay has set a 2045 net-zero carbon emission target, validated by the Science Based Targets initiative (SBTi).
Fourth Quarter and Full Year 2024 Financial Highlights (presented in millions, except per share data and percentages)
Fourth Quarter
Full Year
2024
2023
Change
2024
2023
Change
eBay Inc.
Net revenues
$ 2,579
$ 2,562
$ 17
1 %
$ 10,283
$ 10,112
$ 171
2 %
GAAP – Continuing Operations
Net income
$ 680
$ 728
$ (48)
(7) %
$ 1,981
$ 2,775
$ (794)
(29) %
Earnings per diluted share
$ 1.40
$ 1.40
$ —
— %
$ 3.95
$ 5.21
$ (1.26)
(24) %
Non-GAAP – Continuing Operations
Net income
$ 607
$ 560
$ 47
8 %
$ 2,445
$ 2,260
$ 185
8 %
Earnings per diluted share
$ 1.25
$ 1.07
$ 0.18
16 %
$ 4.88
$ 4.24
$ 0.64
15 %
Other Selected Financial and Operational Results
Operating margin – GAAP operating margin increased to 21.1% for the fourth quarter of 2024, compared to 16.0% for the same period last year. Non-GAAP operating margin increased to 27.0% for the fourth quarter of 2024, compared to 26.7% for the same period last year.Taxes – The GAAP effective tax rate for continuing operations for the fourth quarter of 2024 was (10.3)%, compared to 29.4% for the fourth quarter of 2023. The non-GAAP effective tax rate for continuing operations for the fourth quarter of 2024 was 16.5%(1).Cash flow – The company generated $677 million of operating cash flow and $560 million of free cash flow during the fourth quarter of 2024.Capital returns – The company repurchased $900 million of its common stock, or approximately 14 million shares, in the fourth quarter of 2024. The company’s total repurchase authorization remaining as of December 31, 2024 was approximately $3.3 billion. The company also paid cash dividends of $128 million during the fourth quarter of 2024.Cash and cash equivalents and non-equity investments – The company’s cash and cash equivalents and non-equity investments portfolio totaled $7.2 billion as of December 31, 2024.
Business Outlook
eBay is providing the following guidance for the first quarter 2025.
In billions, except per share data and percentages
Q1 2025 Guidance
Revenue
$2.52 – $2.56
FX-Neutral Y/Y Growth
(1)% – 1%
Gross Merchandise Volume
$18.3 – $18.6
FX-Neutral Y/Y Growth
0% – 1%
Diluted GAAP EPS
$0.98 – $1.02
Diluted Non-GAAP EPS
$1.32 – $1.36
Dividend Declaration
eBay’s Board of Directors has declared a cash dividend of $0.29 per share of the company’s common stock. The dividend is payable on March 28, 2025 to stockholders of record as of March 14, 2025.
(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 fourth quarter and full year 2024 results at 2:00 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 and social media channels 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, Securities and Exchange Commission (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 2024, eBay enabled $75 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 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 “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 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 first quarter and full year 2025 and expected drivers thereof, the future growth in our business, our ability to drive sustainable long-term growth, the effects and potential of current and contemplated strategic initiatives and offerings including with respect to artificial intelligence, payment plans and options and partnerships 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, elevated interest rates and geopolitical events such as the ongoing wars in Ukraine and in the Middle East, terrorist activities and public health events; 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, including the impact of potential changes in tariffs or sanctions and escalating trade wars; 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 recent and 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
December 31,
2024
December 31,
2023
(In millions)
ASSETS
Current assets:
Cash and cash equivalents
$ 2,433
$ 1,985
Short-term investments
3,457
2,533
Equity investment in Adevinta
—
4,474
Customer accounts and funds receivable
962
1,013
Other current assets
715
1,011
Total current assets
7,567
11,016
Long-term investments
2,439
1,129
Property and equipment, net
1,263
1,243
Goodwill
4,269
4,267
Operating lease right-of-use assets
427
493
Deferred tax assets
2,936
3,089
Other assets
464
383
Total assets
$ 19,365
$ 21,620
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt
$ 1,673
$ 750
Accounts payable
257
267
Customer accounts and funds payable
1,018
1,054
Accrued expenses and other current liabilities
2,184
2,196
Income taxes payable
966
253
Total current liabilities
6,098
4,520
Operating lease liabilities
320
387
Deferred tax liabilities
1,405
2,408
Long-term debt
5,752
6,973
Other liabilities
632
936
Total liabilities
14,207
15,224
Total stockholders’ equity
5,158
6,396
Total liabilities and stockholders’ equity
$ 19,365
$ 21,620
eBay Inc.
Unaudited Condensed Consolidated Statement of Income
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(In millions, except per share amounts)
Net revenues
$ 2,579
$ 2,562
$ 10,283
$ 10,112
Cost of net revenues (1)
718
710
2,880
2,833
Gross profit
1,861
1,852
7,403
7,279
Operating expenses:
Sales and marketing (1)
609
573
2,319
2,217
Product development (1)
375
399
1,479
1,544
General and administrative (1)
241
365
914
1,196
Provision for transaction losses
87
101
353
360
Amortization of acquired intangible assets
6
4
20
21
Total operating expenses
1,318
1,442
5,085
5,338
Income from operations
543
410
2,318
1,941
Interest and other:
Gain (loss) on equity investments and warrant, net
44
636
(76)
1,832
Interest expense
(65)
(65)
(259)
(263)
Interest income and other, net
95
50
295
197
Income from continuing operations before income taxes
617
1,031
2,278
3,707
Income tax benefit (provision)
63
(303)
(297)
(932)
Income from continuing operations
680
728
1,981
2,775
Loss from discontinued operations, net of income taxes
(1)
(4)
(6)
(8)
Net income
$ 679
$ 724
$ 1,975
$ 2,767
Income per share – basic:
Continuing operations
$ 1.43
$ 1.41
$ 4.00
$ 5.24
Discontinued operations
—
(0.01)
(0.01)
(0.02)
Net income per share – basic
$ 1.43
$ 1.40
$ 3.99
$ 5.22
Income per share – diluted:
Continuing operations
$ 1.40
$ 1.40
$ 3.95
$ 5.21
Discontinued operations
—
(0.01)
(0.01)
(0.02)
Net income per share – diluted
$ 1.40
$ 1.39
$ 3.94
$ 5.19
Weighted average shares:
Basic
477
518
496
530
Diluted
485
521
501
533
(1) Includes stock-based compensation as follows:
Cost of net revenues
$ 14
$ 13
$ 54
$ 53
Sales and marketing
21
24
91
92
Product development
70
70
281
272
General and administrative
37
42
162
158
$ 142
$ 149
$ 588
$ 575
eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(In millions)
Cash flows from operating activities:
Net income
$ 679
$ 724
$ 1,975
$ 2,767
Loss from discontinued operations, net of income taxes
1
4
6
8
Adjustments:
Provision for transaction losses
87
101
353
360
Depreciation and amortization
79
98
324
403
Stock-based compensation
142
149
588
575
Loss (gain) on investments and other, net
(64)
1
8
(5)
Deferred income taxes
(340)
160
(874)
255
Change in fair value of warrant
(38)
(190)
(158)
(150)
Change in fair value of equity investment in Adevinta
—
(451)
156
(1,782)
Change in fair value of equity investment in Adyen
57
—
57
—
Change in fair value of equity investment in Gmarket
1
13
13
96
Change in fair value of equity investment in KakaoBank
—
(13)
—
(2)
Changes in assets and liabilities, net of acquisition effects
73
(473)
(34)
(94)
Net cash provided by continuing operating activities
677
123
2,414
2,431
Net cash used in discontinued operating activities
—
(1)
—
(5)
Net cash provided by operating activities
677
122
2,414
2,426
Cash flows from investing activities:
Purchases of property and equipment
(117)
(126)
(458)
(456)
Purchases of investments
(2,383)
(3,267)
(13,855)
(13,874)
Maturities of investments
1,885
3,003
12,306
14,502
Exercise of options under warrant
(108)
—
(108)
—
Proceeds from sale of shares in Adevinta, net
—
—
2,410
—
Proceeds from sale of shares in Adyen, net
573
—
573
—
Proceeds from sale of shares in Aurelia, net
1,036
—
1,036
—
Proceeds from sale of shares in Gmarket, net
322
—
322
—
Proceeds from sale of shares in KakaoBank, net
—
106
—
106
Other
54
4
(13)
(38)
Net cash provided by (used in) investing activities
1,262
(280)
2,213
240
Cash flows from financing activities:
Proceeds from issuance of common stock
34
35
92
83
Repurchases of common stock
(911)
(283)
(3,149)
(1,401)
Payments for taxes related to net share settlements of restricted stock units and awards
(52)
(35)
(188)
(171)
Payments for dividends
(128)
(129)
(533)
(528)
Repayment of debt
—
—
(750)
(1,150)
Borrowings under commercial paper program
—
—
441
—
Net funds receivable and payable activity
75
33
305
717
Other
(10)
—
(24)
—
Net cash used in financing activities
(992)
(379)
(3,806)
(2,450)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(33)
21
(28)
5
Net increase (decrease) in cash, cash equivalents and restricted cash
914
(516)
793
221
Cash, cash equivalents and restricted cash at beginning of period
2,372
3,009
2,493
2,272
Cash, cash equivalents and restricted cash at end of period
$ 3,286
$ 2,493
$ 3,286
$ 2,493
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
Three Months Ended
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
December 31,
2023
(In millions, except percentages)
Total net revenues (1)(2)
$ 2,579
$ 2,576
$ 2,572
$ 2,556
$ 2,562
Current quarter vs prior year quarter
1 %
3 %
1 %
2 %
2 %
Percent from international
48 %
49 %
50 %
49 %
50 %
(1) Hedge gain/(loss)
$ (23)
$ (11)
$ (10)
$ (10)
$ 11
(2) Foreign currency impact
$ 5
$ (6)
$ (11)
$ 14
$ 63
eBay Inc.
Unaudited Supplemental Operating Data
Three Months Ended
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
December 31,
2023
(In millions, except percentages)
Active Buyers (1)
134
133
132
132
132
Current quarter vs prior year quarter
1 %
1 %
0 %
(1) %
(2) %
Gross Merchandise Volume (2)
U.S.
$ 9,043
$ 8,740
$ 8,798
$ 8,974
$ 8,891
Current quarter vs prior year quarter
2 %
1 %
1 %
0 %
0 %
International
$ 10,277
$ 9,566
$ 9,620
$ 9,649
$ 9,700
Current quarter vs prior year quarter
6 %
2 %
1 %
3 %
4 %
Total Gross Merchandise Volume
$ 19,320
$ 18,306
$ 18,418
$ 18,623
$ 18,591
Current quarter vs prior year quarter
4 %
2 %
1 %
1 %
2 %
(1)
Active Buyers consist of all buyers who paid for a transaction on our Marketplace platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account. Our acquisitions completed during the periods shown have not materially impacted Active Buyers.
(2)
Gross Merchandise Volume consists of the total value of all paid transactions between users on our Marketplace 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
March 31, 2025
(In billions, except per share amounts)
GAAP
Non-GAAP (a)
Net revenues
$2.52 – $2.56
$2.52 – $2.56
Gross Merchandise Volume
$18.3 – $18.6
$18.3 – $18.6
Diluted EPS
$0.98 – $1.02
$1.32 – $1.36
(a) Estimated non-GAAP amounts above for the three months ending March 31, 2025 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $10 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $135-$145 million and estimated adjustment between our GAAP and non-GAAP tax rate of approximately $15-$25 million. The estimated GAAP diluted EPS above does not assume any gains or losses on our remaining 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
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(In millions, except percentages)
GAAP operating income
$ 543
$ 410
$ 2,318
$ 1,941
Stock-based compensation expense and related employer payroll taxes
145
151
602
587
Amortization of acquired intangible assets within cost of net revenues and operating expenses
10
9
37
35
Restructuring
—
99
(10)
141
Non-recurring legal matters
—
15
(56)
65
Other general and administrative expenses
—
2
1
3
Total non-GAAP operating income adjustments
155
276
574
831
Non-GAAP operating income
$ 698
$ 686
$ 2,892
$ 2,772
GAAP operating margin
21.1 %
16.0 %
22.5 %
19.2 %
Non-GAAP operating margin
27.0 %
26.7 %
28.1 %
27.4 %
*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
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(In millions, except per share amounts and percentages)
GAAP income from continuing operations before income taxes
$ 617
$ 1,031
$ 2,278
$ 3,707
GAAP benefit (provision) for income taxes
63
(303)
(297)
(932)
GAAP net income from continuing operations
$ 680
$ 728
$ 1,981
$ 2,775
Non-GAAP adjustments to net income from continuing operations:
Non-GAAP operating income from continuing operations adjustments (see table above)
$ 155
$ 276
$ 574
$ 831
Change in fair value of equity investment in Adevinta
—
(451)
234
(1,782)
Realized change in fair value of shares sold in Adevinta
—
—
(78)
—
Realized change in fair value of shares sold in Adyen
57
—
57
—
Change in fair value of other equity investments
10
5
21
100
Change in fair value of warrant
(38)
(190)
(158)
(150)
Change in fair value of Aurelia option
(74)
—
—
—
Income tax effects and adjustments
(183)
192
(186)
486
Non-GAAP net income from continuing operations
$ 607
$ 560
$ 2,445
$ 2,260
Diluted net income from continuing operations per share:
GAAP
$ 1.40
$ 1.40
$ 3.95
$ 5.21
Non-GAAP
$ 1.25
$ 1.07
$ 4.88
$ 4.24
Shares used in GAAP diluted net income per share calculation
485
521
501
533
Shares used in non-GAAP diluted net income per share calculation
485
521
501
533
GAAP effective tax rate – Continuing operations
(10.3) %
29.4 %
13.0 %
25.1 %
Income tax effects and adjustments to net income from continuing operations
26.8 %
(12.9) %
3.5 %
(8.6) %
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
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(In millions)
Net cash provided by operating activities
$ 677
$ 123
$ 2,414
$ 2,431
Less: Purchases of property and equipment
(117)
(126)
(458)
(456)
Free cash flow
$ 560
$ (3)
$ 1,956
$ 1,975
View original content to download multimedia:https://www.prnewswire.com/news-releases/ebay-inc-reports-fourth-quarter-and-full-year-2024-results-302386541.html
SOURCE eBay Inc.
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Technology
SiMa.ai Wins Edge AI + Vision Alliance 2026 Product of the Year for Modalix SoM
Published
58 minutes agoon
April 20, 2026By
SAN JOSE, Calif., April 20, 2026 /PRNewswire/ — SiMa.ai, a leader in Physical AI, today announced it has been named the winner of the “Best Edge AI Board” by the Edge AI + Vision Alliance’s 2026 Product of the Year Awards — recognizing breakthrough innovation where machine intelligence meets real-world applications.
“We are moving from passive edge to Physical AI — where machines reason and act autonomously in the real world. Being recognized by the Edge AI and Vision Alliance affirms what SiMa.ai was founded to deliver: high performance without the power drain, and a true platform for this transition. Our purpose-built Modalix MLSoC, paired with Palette, our software suite, addresses the full spectrum of use cases — from computer vision to reasoning-based analytics. Combined with our deep partner collaboration, we are enabling customers across industries to get to market faster and more efficiently,” said Durga Peddireddy, Vice President of Product Management & Partnerships, SiMa.ai.
This recognition builds on the momentum of SiMa.ai’s Modalix™ MLSoC System-on-Module (SoM), launched in 2025. Modalix powers generative AI (GenAI), computer vision, and machine learning (ML) inference at the edge, combining Arm-based compute, advanced vision processing, and high-bandwidth I/O into a single, low-power module designed for power-constrained environments.
Physical AI deployments often face significant hurdles, including high power consumption, thermal limits, and the need for expensive hardware redesigns. The Modalix platform addresses these challenges by allowing customers to modernize existing systems quickly, bringing powerful AI closer to the data source without requiring a total infrastructure overhaul.
By enabling advanced perception, multimodal reasoning, and real-time decision-making directly on-device, the platform eliminates the need for high-power GPU hardware. This efficiency unlocks scalable deployments across industrial automation, robotics, and intelligent video applications.
The Edge AI + Vision Alliance brings together leading multinational companies and emerging innovators, connecting thousands of technical professionals across the industry. As the winner of the “Best Edge AI Board” category for the 2026 Product of the Year Awards, SiMa.ai is recognized for Modalix’s ability to deliver efficient, high-performance Physical AI at the edge in under 10W.
About SiMa.ai
SiMa.ai is a leader in Physical AI, delivering a purpose-built, software-centric platform that brings best-in-class performance, power efficiency, and ease of use to Physical AI applications. Focused on scaling Physical AI across robotics, automotive, industrial automation, aerospace & defense, smart vision, and healthcare, SiMa.ai is led by seasoned technologists and backed by top-tier investors. Headquartered in San Jose, California. Learn more at www.sima.ai.
View original content to download multimedia:https://www.prnewswire.com/news-releases/simaai-wins-edge-ai–vision-alliance-2026-product-of-the-year-for-modalix-som-302746512.html
SOURCE SiMa.ai
Technology
Critical Minerals Standards: ANSI Launches Initiative to Strengthen U.S. Supply Chains and Request for Information
Published
58 minutes agoon
April 20, 2026By
New initiative maps the standards landscape, convenes stakeholders, and builds toward a national strategy
NEW YORK, April 20, 2026 /PRNewswire/ — The American National Standards Institute (ANSI) is launching a multi-phase initiative to strengthen U.S. coordination on critical minerals standards — the shared rules and benchmarks that help ensure minerals are sourced responsibly, supply chains remain secure, and American industry stays competitive globally. This initiative moves forward thanks to the U.S. Department of Energy’s Advanced Mining and Mineral Production Technologies Office, whose partnership made it possible to act on one of the nation’s most pressing industrial priorities. It directly responds to U.S. government priorities to secure domestic supply chains and reduce dependence on foreign sources of critical minerals.
This effort brings together U.S. stakeholders to coordinate national standards priorities, positioning American industry and government to contribute meaningfully to the success of the G7 Critical Minerals Standards Roadmap while harnessing the momentum of the current administration’s focus on supply chain resilience and domestic competitiveness.
The initiative includes a standards landscape assessment, a webinar series, a two-day hybrid workshop, and a summary report with recommended next steps. A call for webinar speakers and a request for information for the standards landscape is open.
Why This Matters
Critical minerals are foundational to national defense, clean energy, advanced electronics, manufacturing, and infrastructure. Yet as global demand rises, the U.S. faces real risks: fragmented efforts at home, supply chain vulnerabilities, and growing urgency to align on the international rules that govern how these materials are sourced, processed, and traded.
Standards bring order to that complexity. They promote transparency and traceability across supply chains, help U.S. companies access global markets, and give the public and private sectors a common framework for investment. Without a coordinated approach, the U.S. risks ceding influence to competitors who are already moving.
What the Initiative Includes
ANSI connects the organizations that develop standards with the industries that rely on them. To accelerate U.S. leadership on critical minerals, ANSI will deliver:
A standards landscape assessment that maps the current state of play: which standards exist, which organizations develop them, where work is underway, and where gaps remain. The assessment will cover the full supply chain — from extraction through processing, manufacturing, and recovery — and consolidate prior mapping efforts into a single, accessible resource. A Request for Information (RFI) is open.A webinar series to raise awareness of existing standards and regulatory activities related to critical minerals, including a dedicated session for U.S. government stakeholders. Briefings will feature standards developers working across the supply chain. Speakers invited and registration is open.A two-day hybrid workshop convening federal agencies, standards organizations, and industry to identify high-priority needs, explore challenges, and inform the development of a U.S. critical minerals standards strategy this September in the Washington, DC area. A summary report will capture key findings, gaps, and recommended next steps.
Ongoing Coordination
ANSI also convenes a quarterly U.S. ISO Critical Minerals Standards Coordination Group for members of U.S. delegations to ISO Technical Committees. The group serves as a forum to share information, coordinate engagement, and align international standards activities. The next meeting is April 24 — registration is now open.
About ANSI
The American National Standards Institute (ANSI) is a private non-profit organization whose mission is to enhance both the global competitiveness of U.S. business and the U.S. quality of life by promoting and facilitating voluntary consensus standards and conformity assessment systems, and safeguarding their integrity. Its membership is comprised of businesses, professional societies and trade associations, standards developers, government agencies, and consumer and labor organizations.
The Institute represents and serves the diverse interests of more than 270,000 companies and organizations and 30 million professionals worldwide. ANSI is the official U.S. representative to the International Organization for Standardization (ISO) and, via the U.S. National Committee, the International Electrotechnical Commission (IEC). For more information, visit www.ansi.org and access the latest news and content on LinkedIn, X, and Facebook.
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SOURCE American National Standards Institute
Technology
Bobby Lehew Named commonsku’s Chief AI Officer — an Industry First in Promo
Published
2 hours agoon
April 20, 2026By
TORONTO, April 20, 2026 /CNW/ – commonsku, the connected workflow platform trusted by 950+ distributors driving $1.9 billion in network volume, today announced the creation of a dedicated AI + Strategy role, promoting Bobby Lehew to Chief AI Officer to lead the company’s AI initiative for customers and the platform. The move makes commonsku the first platform in the promotional products industry to invest at the leadership level in AI strategy shaped directly by distributor needs.
The new role bridges the gap between what AI can do and what commonsku’s customers need it to solve, owning the intelligence loop between customers, product, and the AI landscape. What makes the role distinct: it combines AI landscape intelligence, product strategy influence, direct customer engagement, and industry thought leadership in a single role.
A Natural Evolution
Lehew brings more than 30 years of experience in the promotional products industry to the role. Prior to joining commonsku, he was the CEO of Robyn Promotions, a company among the first wave of distributors who architected the model of technology driven e-commerce company stores in the industry, earning three consecutive Inc. 5000 rankings. Always tech-forward in his work, his industry recognition includes multiple Gold and Silver PPAI Pyramid Awards.
The shift to AI strategy is a natural next chapter for Lehew. At commonsku, he built the company’s content engine from scratch — co-hosting the skucast (350+ episodes, the #1 promotional products podcast) while leaning heavily into AI for all his work. He is editor of The AI Promo Brief, the industry’s go-to resource for AI developments in promotional products, and speaks frequently on the future of merch and the cultural shifts transforming how we sell. At PPAI Expo 2026, his AI session packed the room to capacity and was named a must-attend session by PPAI editors. The industry has been watching Lehew move deeper into AI for over a year. This role makes it official.
Investing in AI for Customers
“The industry is at an inflection point with AI, and distributors need a partner who understands their business,” said Catherine Graham, CEO of commonsku. “commonsku has always been built ‘by promo, for promo.’ Bobby has three decades of that expertise, a passion for helping our customers, and the strategic insight to shape AI tools for future growth. This role reflects our mission: making sure our AI tools solve real problems for real distributors.”
“The companies pulling ahead are the ones leading with customer intelligence – letting what they learn from their community shape what they build and advancing with the frontier of AI development. That’s what this role is designed to do. I’ll be talking with our customers at every level about AI and making sure the features we build make work smarter, drive growth, and eliminate friction.” said Lehew.
“Bobby and I have been creative partners for years, always pushing each other to see around corners for this industry,” said Mark Graham, President of commonsku. “We’ve launched multiple projects together and helped educate and raise the standard for what the future distributor can look like. This role is a natural evolution of that passion. He deeply understands the industry and the distributor’s pain points, and he sees with us an incredible opportunity with AI. We’re thrilled to build commonsku’s AI future together.”
commonsku’s AI investments are already in motion. The skubot Mockup Generator is in beta with Advanced and Enterprise customers, a new Opportunity Agent is entering beta as an AI-powered business intelligence tool, and the company’s immediate roadmap includes a Description Rewriter, Auto-Art Configuration, and a Presentation Generator with much more to come.
About commonsku
commonsku is the workflow platform of choice for the promotional products industry. Built by industry experts, it combines CRM, order management, and social collaboration tools in one cloud-based solution. Over 950 distributors and the industry’s largest suppliers rely on commonsku to power $1.9 billion in network volume. With commonsku, teams process more orders, work more efficiently, and grow their sales faster. Learn more at www.commonsku.com.
SOURCE commonsku
SiMa.ai Wins Edge AI + Vision Alliance 2026 Product of the Year for Modalix SoM
Critical Minerals Standards: ANSI Launches Initiative to Strengthen U.S. Supply Chains and Request for Information
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