Connect with us

Technology

eBay Inc. Reports Fourth Quarter and Full Year 2023 Results

Published

on

Revenue of $2.6 billion, up 2% on an as-reported basis and up 3% on an FX-Neutral basis Gross Merchandise Volume of $18.6 billion, up 2% on an as-reported basis and nearly flat on an FX-Neutral basisGAAP and Non-GAAP earnings per diluted share of $1.40 and $1.07, respectively, on a continuing operations basisGAAP and Non-GAAP operating margin of 16.0% and 26.7%, respectivelyReturned $379 million to shareholders in Q4, including $250 million of share repurchases and $129 million paid in cash dividendsIn February 2024, the Board of Directors declared a cash dividend for the first quarter of 2024 of $0.27 per share, an 8% increase from the prior quarterly dividend. The Board also authorized an additional $2.0 billion stock repurchase program, increasing the company’s remaining stock repurchase authorization to $3.4 billion

SAN JOSE, Calif., Feb. 27, 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 fourth quarter and full year ended December 31, 2023.

“Last year, we made significant progress toward our vision to reinvent the future of ecommerce for enthusiasts,” said Jamie Iannone, Chief Executive Officer at eBay. “Our organic GMV growth improved year-over-year during each quarter of 2023, while navigating a challenging macroeconomic environment. Our results demonstrate the strength of our strategy, and I’m proud of our accelerated pace of innovation as we work to fundamentally enhance the customer experience on eBay.”

“I’m pleased that we met or exceeded expectations across our key financial metrics in Q4,” said Steve Priest, Chief Financial Officer at eBay. “Our fortress balance sheet and durable financial model enabled us to invest in our strategic pillars while protecting earnings growth and delivering robust capital returns. I’m proud of the strong execution throughout 2023 and I’m confident our strategy will drive long-term shareholder value.”

Fourth Quarter Financial Highlights

Revenue was $2.6 billion, up 2% on an as-reported basis and up 3% on a foreign exchange (FX) neutral basis.Gross Merchandise Volume (GMV) was $18.6 billion, up 2% on an as-reported basis and nearly flat on an FX-Neutral basis.GAAP net income from continuing operations was $728 million, or $1.40 per diluted share.Non-GAAP net income from continuing operations was $560 million, or $1.07 per diluted share.GAAP and Non-GAAP operating margin was 16.0% and 26.7%, respectively.Generated $123 million of operating cash flow and reported $(3) million of free cash flow.Returned $379 million to shareholders, including $250 million of share repurchases and $129 million paid in cash dividends.

Full Year Financial Highlights

Revenue was $10.1 billion, up 3% on an as-reported basis and up 4% on an FX-Neutral basis.GMV was $73.2 billion, down 1% on an as-reported and FX-Neutral basis.GAAP net income from continuing operations was $2.8 billion, or $5.21 per diluted share.Non-GAAP net income from continuing operations was $2.3 billion, or $4.24 per diluted share.GAAP and Non-GAAP operating margin was 19.2% and 27.4%, respectively.Generated $2.4 billion of operating cash flow and $2.0 billion of free cash flow.Returned $1.9 billion to shareholders, including $1.4 billion of share repurchases and $528 million paid in cash dividends.

Business Highlights

Revenue Initiatives

eBay’s first-party advertising products delivered $368 million of revenue in the fourth quarter, up 33% on an as-reported basis and up 30% on an FX-Neutral basis.The company’s total advertising offerings generated $393 million of revenue in the fourth quarter, representing 2.1% of GMV.

Strategic Initiatives

In Q4, eBay opened its newest authentication center in Japan. The Tokyo-based hub provides an added layer of trust, enabling the company to authenticate luxury items on a global scale.In the Motors Parts & Accessories category, eBay rolled out a multi-warehouse shipping optimization API to U.S. sellers, allowing buyers to see more accurate estimated delivery dates when purchasing from sellers with multiple warehouses.During the quarter, eBay Motors introduced predictive maintenance for users with cars in My Garage. Leveraging eBay’s database of more than 100 million vehicles, this capability offers AI-driven auto part recommendations based on a specific vehicle’s mileage.eBay announced a commercial agreement and investment in sports trading card company COMC. The deal expands COMC’s technology-based listing and management model and offers collectors a more extensive selection and improved listing capabilities.During the quarter, eBay completed the global rollout of its enhanced background removal tool, which leverages AI to effortlessly remove visual background “noise” from product images.eBay launched a new generative AI-powered social caption generator, making social sharing easier for sellers.The company introduced combined shipping with eBay International Shipping, enabling buyers to purchase multiple items from one seller and pay reduced shipping costs.

Impact

eBay published its fourth annual Task Force for Climate Related Financial Disclosure report, showing eBay’s continued commitment to climate disclosure, assessment and planning.eBay was included in the Dow Jones Sustainability World and North American Indices for the fifth consecutive year, recognizing the company for its commitment to sustainability and responsible business.eBay for Charity contributed more than $43 million globally in Q4 and nearly $162 million throughout 2023.In Q4, the eBay Foundation hosted its second annual Giving Week encouraging eBayers around the world to donate, volunteer and connect with local communities. In a single week, employees donated more than $660 thousand to more than a thousand different causes in 25 countries.In 2023, the eBay Foundation granted more than $19 million to nonprofit organizations advancing inclusive entrepreneurship.

 

Fourth Quarter and Full Year 2023 Financial Highlights (presented in millions, except per share data and percentages)

Fourth Quarter

Full Year

2023

2022

Change

2023

2022

Change

eBay Inc.

Net revenues

$    2,562

$    2,510

$         52

2 %

$  10,112

$    9,795

$       317

3 %

GAAP – Continuing Operations

Net Income (loss) 

$       728

$       671

$         57

8 %

$    2,775

$  (1,274)

$    4,049

**

Earnings (loss) per diluted share

$      1.40

$      1.23

$      0.17

13 %

$      5.21

$    (2.28)

$      7.49

**

Non-GAAP – Continuing Operations

Net income

$       560

$       581

$        (21)

(4) %

$    2,260

$    2,312

$        (52)

(2) %

Earnings per diluted share

$      1.07

$      1.07

$          —

— %

$      4.24

$      4.11

$      0.13

3 %

**  Not meaningful

Other Selected Financial and Operational Results

Operating margin – GAAP operating margin decreased to 16.0% for the fourth quarter of 2023, compared to 22.5% for the same period last year. Non-GAAP operating margin decreased to 26.7% for the fourth quarter of 2023, compared to 29.9% for the same period last year.Taxes – The GAAP effective tax rate for continuing operations for the fourth quarter of 2023 was 29.4%, compared to 19.1% for the fourth quarter of 2022. The non-GAAP effective tax rate for continuing operations for the fourth quarter of 2023 was 16.5%(1).Cash flow – The company generated $123 million of operating cash flow and reported $(3) million of free cash flow from continuing operations during the fourth quarter of 2023.Capital returns – The company repurchased $250 million of its common stock, or 6 million shares, in the fourth quarter of 2023. The company’s total repurchase authorization remaining as of December 31, 2023 was approximately $1.4 billion. The company also paid cash dividends of $129 million during the fourth quarter of 2023.Cash and cash equivalents and non-equity investments – The company’s cash and cash equivalents and non-equity investments portfolio totaled $5.1 billion as of December 31, 2023.

Business Outlook

eBay is providing the following guidance for the first quarter 2024.

In billions, except per share data and percentages

Q1 2024 Guidance

Revenue

$2.50 – $2.54

FX-Neutral Y/Y Growth

0% – 2%

Diluted GAAP EPS

$0.86 – $0.90

Diluted Non-GAAP EPS

$1.19 – $1.23

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 March 25, 2024 to stockholders of record as of March 11, 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 fourth quarter and full year 2023 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 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 first quarter and full year 2024 and the future growth in our business, the effects and potential of current and contemplated strategic initiatives and offerings, 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 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 into international markets; the impact of inflationary pressure, fluctuations in foreign currency exchange rates, increasing 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 our company, 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 our disclosures related to our environmental, social and governance goals; current and potential litigation and regulatory and government inquiries, investigations and disputes involving our company 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, including the proposed transactions involving Adevinta.

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,
2023

December 31,
2022

(In millions)

ASSETS

Current assets:

Cash and cash equivalents

$              1,985

$              2,154

Short-term investments

2,556

2,625

Equity investment in Adevinta

4,474

2,692

Customer accounts and funds receivable

1,013

763

Other current assets

988

1,056

Total current assets

11,016

9,290

Long-term investments

1,133

1,797

Property and equipment, net

1,243

1,238

Goodwill

4,267

4,262

Operating lease right-of-use assets

493

513

Deferred tax assets

3,089

3,169

Other assets

379

581

Total assets

$            21,620

$            20,850

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Short-term debt

$                 750

$              1,150

Accounts payable

267

261

Customer accounts and funds payable

1,054

768

Accrued expenses and other current liabilities

2,196

1,866

Income taxes payable

253

226

Total current liabilities

4,520

4,271

Operating lease liabilities

387

418

Deferred tax liabilities

2,408

2,245

Long-term debt

6,973

7,721

Other liabilities

936

1,042

Total liabilities

15,224

15,697

Total stockholders’ equity

6,396

5,153

Total liabilities and stockholders’ equity

$            21,620

$            20,850

 

eBay Inc.

Unaudited Condensed Consolidated Statement of Income

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023

2022

(In millions, except per share amounts)

Net revenues

$            2,562

$            2,510

$         10,112

$            9,795

Cost of net revenues (1)

710

681

2,833

2,680

Gross profit

1,852

1,829

7,279

7,115

Operating expenses:

Sales and marketing (1)

573

554

2,217

2,136

Product development (1)

399

340

1,544

1,330

General and administrative (1)

365

288

1,196

963

Provision for transaction losses

101

81

360

332

Amortization of acquired intangible assets

4

1

21

4

Total operating expenses

1,442

1,264

5,338

4,765

Income from operations

410

565

1,941

2,350

Interest and other:

Gain (loss) on equity investments and warrant, net

636

319

1,832

(3,786)

Interest expense

(65)

(62)

(263)

(235)

Interest income and other, net

50

7

197

70

Income (loss) from continuing operations before income taxes

1,031

829

3,707

(1,601)

Income tax benefit (provision)

(303)

(158)

(932)

327

Income (loss) from continuing operations

728

671

2,775

(1,274)

Income (loss) from discontinued operations, net of income taxes

(4)

1

(8)

5

Net income (loss)

$               724

$               672

$            2,767

$          (1,269)

Income (loss) per share – basic:

Continuing operations

$              1.41

$              1.24

$              5.24

$            (2.28)

Discontinued operations

(0.01)

0.00

(0.02)

0.01

Net income (loss) per share – basic

$              1.40

$              1.24

$              5.22

$            (2.27)

Income (loss) per share – diluted:

Continuing operations

$              1.40

$              1.23

$              5.21

$            (2.28)

Discontinued operations

(0.01)

0.00

(0.02)

0.01

Net income (loss) per share – diluted

$              1.39

$              1.23

$              5.19

$            (2.27)

Weighted average shares:

Basic

518

541

530

558

Diluted

521

544

533

558

(1) Includes stock-based compensation as follows:

Cost of net revenues

$                 13

$                 13

$                 53

$                 51

Sales and marketing

24

16

92

73

Product development

70

62

272

222

General and administrative

42

37

158

148

$               149

$               128

$               575

$               494

 

eBay Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023

2022

(In millions)

Cash flows from operating activities:

Net income (loss)

$              724

$              672

$           2,767

$         (1,269)

(Income) loss from discontinued operations, net of income taxes

4

(1)

8

(5)

Adjustments:

Provision for transaction losses

101

81

360

332

Depreciation and amortization

98

107

403

442

Stock-based compensation

149

128

575

494

Loss (gain) on investments and other, net

1

14

(5)

21

Deferred income taxes

160

27

255

(780)

Change in fair value of warrant

(190)

(16)

(150)

230

Change in fair value of equity investment in Adevinta

(451)

(282)

(1,782)

2,691

Change in fair value of equity investment in Adyen

—

—

—

261

Change in fair value of equity investment in Gmarket

13

(5)

96

294

Change in fair value of equity investment in KakaoBank

(13)

(28)

(2)

293

Changes in assets and liabilities, net of acquisition effects

(473)

(11)

(94)

(377)

Net cash provided by continuing operating activities

123

686

2,431

2,627

Net cash used in discontinued operating activities

(1)

(2)

(5)

(373)

Net cash provided by operating activities

122

684

2,426

2,254

Cash flows from investing activities:

Purchases of property and equipment

(126)

(153)

(456)

(449)

Purchases of investments

(3,267)

(3,311)

(13,874)

(18,534)

Maturities and sales of investments

3,003

2,379

14,502

20,626

Proceeds from sale of shares in Adevinta

—

8

—

8

Proceeds from sale of shares in Adyen

—

—

—

800

Proceeds from sale of shares in KakaoBank

105

—

106

287

Acquisition of TCGplayer, net of cash acquired

—

(208)

—

(208)

Other

5

(9)

(38)

(71)

Net cash provided by (used in) continuing investing activities

(280)

(1,294)

240

2,459

Net cash provided by discontinued investing activities

—

—

—

2

Net cash provided by (used in) investing activities

(280)

(1,294)

240

2,461

Cash flows from financing activities:

Proceeds from issuance of common stock

35

32

83

87

Repurchases of common stock

(283)

(315)

(1,401)

(3,143)

Payments for taxes related to net share settlements of restricted stock units and awards

(35)

(30)

(171)

(160)

Payments for dividends

(129)

(119)

(528)

(489)

Proceeds from issuance of long-term debt, net

—

1,143

—

1,143

Repayment of debt

—

—

(1,150)

(1,355)

Net funds receivable and payable activity

33

33

717

125

Net cash provided by (used) in financing activities

(379)

744

(2,450)

(3,792)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

21

32

5

(57)

Net increase (decrease) in cash, cash equivalents and restricted cash

(516)

166

221

866

Cash, cash equivalents and restricted cash at beginning of period

3,009

2,106

2,272

1,406

Cash, cash equivalents and restricted cash at end of period

$           2,493

$           2,272

$           2,493

$           2,272

 

eBay Inc.

Unaudited Summary of Consolidated Net Revenues

Three Months Ended

December 31,
2023

September 30,
2023

June 30,
2023

March 31,
2023

December 31,
2022

(In millions, except percentages)

Total net revenues (1)(2)

$          2,562

$          2,500

$          2,540

$          2,510

$          2,510

Current quarter vs prior year quarter

2 %

5 %

5 %

1 %

(4) %

Percent from international

50 %

50 %

50 %

50 %

51 %

(1) Hedge gain/(loss)

$                 11

$                   2

$                 14

$                 29

$                 89

(2) Foreign currency impact

$                 63

$                 43

$                 (9)

$               (45)

$               (67)

 

eBay Inc.

Unaudited Supplemental Operating Data

Three Months Ended

December 31,
2023

September 30,
2023

June 30,
2023

March 31,
2023

December 31,
2022

(In millions, except percentages)

Active Buyers (1)

132

132

132

133

134

Current quarter vs prior year quarter

(2) %

(3) %

(4) %

(7) %

(9) %

Active Buyers excluding GittiGidiyor and TCGplayer (2)

131

131

131

131

132

Current quarter vs prior year quarter

(1) %

(1) %

(3) %

(5) %

(8) %

Gross Merchandise Volume (3)

U.S.

$          8,891

$          8,638

$          8,702

$          9,010

$          8,894

Current quarter vs prior year quarter

0 %

(1) %

(3) %

(3) %

(9) %

International

$          9,700

$          9,353

$          9,512

$          9,400

$          9,333

Current quarter vs prior year quarter

4 %

4 %

(1) %

(7) %

(15) %

Total Gross Merchandise Volume

$        18,591

$        17,991

$        18,214

$        18,410

$        18,227

Current quarter vs prior year quarter

2 %

2 %

(2) %

(5) %

(12) %

(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.

(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

March 31, 2024

(In billions, except per share amounts)

GAAP

Non-GAAP (a)

Net revenues

$2.50 – $2.54

$2.50 – $2.54

Diluted EPS from continuing operations

$0.86 – $0.90

$1.19 – $1.23

(a) Estimated non-GAAP amounts above for the three months ending March 31, 2024 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $8 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $145 – $155 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, 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 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,

2023

2022

2023

2022

(In millions, except percentages)

GAAP operating income

$           410

$           565

$        1,941

$        2,350

Stock-based compensation expense and related employer payroll taxes

151

130

587

507

Amortization of acquired intangible assets within cost of net revenues and operating expenses

9

5

35

9

Restructuring

99

—

141

—

Legal matters

15

50

65

50

Other general and administrative expenses

2

—

3

23

Total non-GAAP operating income adjustments

276

185

831

589

Non-GAAP operating income

$           686

$           750

$        2,772

$        2,939

GAAP operating margin

16.0 %

22.5 %

19.2 %

24.0 %

Non-GAAP operating margin

26.7 %

29.9 %

27.4 %

30.0 %

*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,

2023

2022

2023

2022

(In millions, except per share amounts and percentages)

GAAP income (loss) from continuing operations before income taxes

$        1,031

$           829

$        3,707

$      (1,601)

GAAP (provision) benefit for income taxes

(303)

(158)

(932)

327

GAAP net income (loss) from continuing operations

$           728

$           671

$        2,775

$      (1,274)

Non-GAAP adjustments to net income (loss) from continuing operations:

Non-GAAP operating income from continuing operations adjustments (see table above)

$           276

$           185

$           831

$           589

Change in fair value of equity investment in Adevinta

(451)

(282)

(1,782)

2,691

Change in fair market value of warrant

(190)

(16)

(150)

230

Change in fair market value of other equity investments

18

(18)

113

645

Realized change in fair market value of equity investments

(13)

(2)

(13)

216

Other significant gains, losses or charges

—

—

—

(1)

Income tax effects and adjustments

192

43

486

(784)

Non-GAAP net income from continuing operations

$           560

$           581

$        2,260

$        2,312

Diluted net income (loss) from continuing operations per share:

GAAP

$          1.40

$          1.23

$          5.21

$        (2.28)

Non-GAAP

$          1.07

$          1.07

$          4.24

$          4.11

Shares used in GAAP diluted net income (loss) per share calculation

521

544

533

558

Shares used in non-GAAP diluted net income per share calculation

521

544

533

562

GAAP effective tax rate – Continuing operations

29.4 %

19.1 %

25.1 %

20.4 %

Income tax effects and adjustments to net income (loss) from continuing operations

(12.9) %

(2.6) %

(8.6) %

(3.9) %

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,

2023

2022

2023

2022

(In millions)

Net cash provided by continuing operating activities

$               123

$               686

$            2,431

$            2,627

Less: Purchases of property and equipment

(126)

(153)

(456)

(449)

Free cash flow

$                  (3)

$               533

$            1,975

$            2,178

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ebay-inc-reports-fourth-quarter-and-full-year-2023-results-302073214.html

SOURCE eBay Inc.

Continue Reading

Technology

Alethios Unveils a Comprehensive Decentralized Data Collection Suite for Human Health Research

Published

on

By

Live, no-code integrations let researchers combine participant-reported outcomes, wearables and sensors, AI-powered digital biomarkers, and at-home lab tests in a single study at a fraction of the cost of traditional research.

SAN FRANCISCO, Oct. 22, 2026 /PRNewswire/ — Alethios, the software platform delivering research infrastructure for human health, today launched a comprehensive suite of decentralized data collection tools. Researchers can now combine participant-reported outcomes, wearable and sensor data, digital biomarkers, and at-home biomarker testing in a single study, without writing code, managing multiple vendors, or requiring clinic visits.

Alethios powers studies across nutraceuticals, functional foods, academia, consumer health, medical devices, biotech, and the life sciences. Study designs range from consumer perception studies to pivotal, randomized, double-blind, placebo-controlled trials all run on the same software platform. Customers  including Givaudan, Thorne, PLT Health Solutions, Applied Food Sciences, Hofseth BioCare, Helaina, Samphire Neuroscience, and Sonoran University use the platform to generate rigorous evidence from participants’ homes. The new integrations build on the company’s founding belief that rigorous, multimodal research should be within reach for teams of every size and budget, across the human health ecosystem.

The suite spans four layers of data, each available as a no-code integration within the Alethios Study Planner and Study Operator:

Reported data: participant-submitted photo, video, audio, and text, plus a library of clinically validated instruments, both publicly available and licensed.Generated health data: personal wearables and health platforms including Apple Watch, Google Health, Garmin, Oura, Whoop, and Fitbit, and sensors including Abbott’s continuous glucose monitors and Withings and InBody bioimpedance scales.Digital biomarkers: validated cognitive batteries powered by BrainHQ, skin health selfies for dermatology and cosmetic studies powered by Haut.ai, and 3D body composition scans powered by Prism Labs.At-home biomarker testing: dried blood spot cards, Tasso blood collection devices, and at-home microbiome kits. Standard panels, including male and female hormones, cardiovascular, metabolic, inflammation, vitamin D, and hydration, run through Choose Health. Next-generation tests include epigenetic clocks from Muhdo and TruDiagnostic, and gut and vaginal microbiome sequencing from GutID and other shotgun metagenomic sequencing partners.

Adding a data type takes a few clicks. In the Study Planner, researchers select the data types their study needs and place each one on the participant schedule. For at-home kits, Alethios can handle ordering, shipping, and unique ID verification to keep every sample matched with the right participant, and results flow back into the platform. Once a study is live, the Study Operator brings every data stream into one real-time monitoring dashboard.

Compliant Data Collection by Default

Every integration runs on the platform’s existing infrastructure, where validation and data integrity assurances are built in and each one is designed to encourage participant adherence without compromising data quality. Researchers can:

Schedule each integration on the study timeline, so every data point is accurately time-stamped.Tie completion and compliance to milestone-based tracking and compensation, for example releasing a $50 gift card once a participant’s kit is accessioned at the lab.Monitor adherence across multiple data types in real-time from the Study Operator, so missed wearable syncs, late surveys, or unreturned kits are caught before they turn into missing data.

Every data point is cleaned and aligned to its participant automatically, so research teams receive one analysis-ready dataset rather than stitching together exports from multiple vendors.

“We built Alethios for researchers across human health,” said Zeenia Framroze, Founder and CEO of Alethios. “There are so many new ways to collect data at home, and we want to give research teams the best of them, wherever they sit. Whether someone is designing a claims substantiation study for a supplement or running post-marketing surveillance for a drug, we want to make it easy to collect robust subjective and objective data from Alethiad participants around the nation. The better and more accessible data collection is, the more we move the needle on our understanding of all of human health.”

A Home for Next-Generation Health Measurement

“So many novel devices and at-home tests are being developed today,” said Gurpreet Atwal, CTO of Alethios. “We want Alethios to be the tool scientists and innovators use to rapidly develop and validate new methods of data collection, and the home for the newest, best-in-class technologies for measuring human health. With rapid recruitment through the Alethiad Participant Community, those technologies can be tested with diverse, representative participants from day one.”

Companies developing novel devices, tests, or digital biomarkers can apply to integrate with Alethios here.

About Alethios

Alethios is a software platform delivering research infrastructure for human health. Its AI-powered, full-stack software delivers the capabilities of a study team without the overhead. The platform unifies protocol design, IRB coordination, recruitment, participant management, multimodal data collection, and reporting for decentralized clinical trials. Principal investigators, sponsors, and CROs rely on Alethios to generate rigorous real-world evidence across human health industries, setting up a study in minutes with plans starting at $100 per month. Through the Study Planner, Study Operator, and the Alethiad Participant Community, research teams can use the software in a self-service, hybrid, or fully turn-key model, at a fraction of the cost of traditional research.Alethios is a 2026 Nutra Healthspan Innovator Award winner, a 2026 Vitafoods Europe Startup Challenge finalist, and a 2025 NutraIngredients-USA Startup Award finalist. Get started at Alethios.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/alethios-unveils-a-comprehensive-decentralized-data-collection-suite-for-human-health-research-302916518.html

SOURCE Alethios, Inc.

Continue Reading

Technology

7 out of 10 Individuals Hit by Data Breaches Via Third Party, Kroll Finds

Published

on

By

Breaches at technology and insurance firms affected the most individuals
in Kroll cases, highlighting the wider damage a single incident can cause

NEW YORK, Oct. 22, 2026 /PRNewswire/ — Kroll, the leading independent provider of financial and risk advisory solutions, today revealed that two-thirds of organizations surveyed (69%) suffered a data breach in the past year. More than a third (34%) were breached more than once, according to its 2026 annual Data Breach Outlook.

Further analysis showed that financial services accounted for the largest share of organizations breached in Kroll’s cases, at 20%, but a single breach at a technology provider can expose data belonging to customers of hundreds of businesses that use its services.

Of the incidents handled by Kroll in the twelve months between June 2025 and June 2026, 69% of affected individuals were impacted by a third-party breach. 79% of those individuals were affected by a breach from the technology sector, which is significantly higher compared to the finance (9%), insurance (6%) or healthcare (5%) sectors.

Breaches at technology firms accounted for the largest number of affected individuals, followed by insurers, despite ranking seventh and ninth respectively for the total number of organizations breached.

Data and Trends from the Kroll Data Breach Outlook 2026

Repeated breaches are common. Of the 250 leaders surveyed by Kroll, 69% said their organization had suffered a breach in the previous 12 months, while 34% reported experiencing more than one.IT teams are far more concerned about third parties than senior leaders. More than half (54%) of IT and technology leaders identified vendor and third-party breaches as their biggest compliance risk, compared with 40% of C-suite executives and 30% of risk and compliance leaders.Third-party relationships complicate the response. Dependence on vendors was among the top four challenges leaders faced when making breach-response decisions, cited by 41% of respondents.A small number of breaches can have a wide impact. Technology ranked seventh for the number of organizations breached but first for the total number of individuals affected. Insurance ranked ninth for the number of organizations breached but second for the total number of individuals affected.

Denyl Green, Global Head of Breach Notification at Kroll says, “Kroll handles thousands of incidents every year. Across most of the major incidents we handled over the past year, a vendor, software supplier or service provider was the link between the initial breach and the organizations affected. One incident can reach businesses and individuals who have never dealt directly with the company where the compromise began.”

“As AI agents are given more access to systems and sensitive data, breach risk rises across both human on non-human identities. Data and identity governance are becoming even more complex, and we expect AI to feature more prominently in Kroll’s Data Breach Outlook next year, both as a tool used by attackers and as a source of exposure for businesses adopting it.”

“When a supplier is breached, every client needs to determine whose data was affected and whether customers and regulators need to be notified. The businesses that respond most effectively have already mapped their third-party relationships and the subsequent domino effect, with an agreed plan in place before an incident happens. That preparation can reduce both the complexity and the cost of managing a breach, as well as give greater peace of mind.”

Katherine Keefe, Global Cyber Insurance Industry Lead at Kroll says, “Kroll’s breach data shows a single supplier breach can trigger dozens or even hundreds of cyber insurance claims from businesses whose only connection is that they use the same provider. These scenarios exponentially increase potential cyber insurance losses compared to breaches affecting a single business.”

“Cyber underwriters are already responding, not only by more closely scrutinizing how businesses manage their suppliers, but also by identifying potential single points of failure which may be caused by vendors and suppliers serving wide swaths of industry. Cyber insurance claims teams managing aggregated losses are also impacted and require efficient incident response and breach notification best practices when multiple policyholders are affected by the same event.”

“Cyber insurers now know that identifying dependencies on common vendors is critical to assessing and minimizing the risk that one breach will impact many policyholders.”

Kroll’s Cyber and Data Resilience (CDR) practice guides organizations through cyber crises, from incident response and cyber risk strategy to process and software controls and managed security operations. Within CDR, the Data Breach team handles some of the largest and most complex notification programs in the world. Often serving as part of a broader cyber incident response, Kroll’s data breach notification services help organizations rapidly navigate multi-jurisdictional requirements, including call center and credit monitoring services, to meet regulatory obligations and protect their reputation. Learn more: https://www.kroll.com/en/services/cyber/breach-notification.

About the Data Breach Outlook 2026 report

The Data Breach Outlook 2026, launched in October 2026, draws on two sources: an analysis of data breach incidents handled by Kroll’s Cyber and Data Resilience practice between June 2025 and June 2026, and a companion survey of 250 risk and compliance leaders and C-suite executives and board members, conducted by Kroll in 2026, examining how organizations experience and respond to breach events, including the role of vendor and third-party relationships.

About Kroll

As the leading independent provider of financial and risk advisory solutions, Kroll leverages our unique insights, data and technology to help clients stay ahead of complex valuation demands. Kroll’s team of more than 6,500 professionals worldwide continues the firm’s nearly 100-year history of trusted expertise spanning risk, governance, transactions and valuation. Our advanced solutions and intelligence provide clients the foresight they need to create an enduring competitive advantage. At Kroll, our values define who we are and how we partner with clients and communities. Learn more at kroll.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/7-out-of-10-individuals-hit-by-data-breaches-via-third-party-kroll-finds-302916280.html

SOURCE Kroll Associates

Continue Reading

Technology

Innodisk Launches All-in-One GMSL2™ Camera Starter Kit to Accelerate Edge AI Vision Deployment

Published

on

By

TAIPEI, Oct. 22, 2026 /PRNewswire/ — Innodisk, a leading global AI solution provider, today announced the Innodisk GMSL2™ Camera Starter Kit, an all-in-one vision solution that bundles four 3MP GMSL2™ camera modules, a capture card, FAKRA cables, and other necessary accessories.

A milestone in Innodisk’s edge AI vision strategy, the kit lets customers set up a multi-camera system and begin validation right out of the box, shortening the path from proof of concept (PoC) to deployment. Full camera source code is included, giving customers flexibility throughout development and maintenance.

As AI vision moves toward multi-camera perception in robotics and intelligent vehicles, integrating cameras, capture cards, drivers, and host platforms has become increasingly complex, often taking six months or more before validation. The starter kit’s pre-integrated hardware and software driver enable system integrators to speed up time-to-market.

All-in-One Multi-Camera Integration for Faster Setup and Validation

GMSL2™ is a high-speed video transmission technology that originated in automotive applications and offers long-distance connectivity. Unlike plug-and-play USB cameras, it requires a dedicated capture card and platform-specific drivers. The starter kit includes four 3MP fixed-focus GMSL2™ camera modules, a capture card, four FAKRA cables, a power adapter, power cords, and a quick start guide. It also provides camera source code for the widely adopted NVIDIA Jetson Orin Nano Super Developer Kit, so users can bypass component sourcing, system-level integration, driver debugging, and tuning.

“The biggest challenge in a multi-camera AI vision project is often not the AI application itself, but the camera integration and system tuning that come before it,” said CK Hsu, Senior Manager of the Camera Product Business Department at Innodisk. “With the GMSL2™ Camera Starter Kit, Innodisk takes on the complexity of early-stage integration so customers can focus on development and move into PoC sooner.”

Source Code Included for Seamless Customization

With the camera source code in hand, engineering teams can independently adapt the software driver to their own requirements and use the kit as a working foundation for further development. Innodisk also provides comprehensive customization services from hardware fine-tuning to application deployment, helping customers move smoothly into design-in and mass production.

Expanding GMSL2™ Portfolio for Diverse Edge AI Scenarios

The kit supports edge AI scenarios including blind spot detection and advanced driver assistance systems (ADAS) for heavy-duty vehicles, object recognition and environmental perception for humanoid robots and AMRs.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/innodisk-launches-all-in-one-gmsl2-camera-starter-kit-to-accelerate-edge-ai-vision-deployment-302916771.html

SOURCE Innodisk Corporation

Continue Reading

Trending