Core Insights - Investors often avoid stocks around earnings announcements due to high volatility, but post-earnings, opportunities arise as volatility decreases [1][2] Group 1: eBay Inc. (NASDAQ: EBAY) - eBay's stock experienced a decline of up to 9.5% following its latest quarterly earnings, leading to concerns about performance expectations [3][5] - Analysts from Benchmark reiterated a Buy rating and raised their valuation target for eBay from $65 to $75 per share, indicating a potential upside of 20% [4][5] - Institutional investors, such as Ameriprise Financial, increased their holdings in eBay by 12.4%, bringing their total position to $1.8 billion, reflecting bullish sentiment [6] Group 2: Snowflake Inc. (NYSE: SNOW) - Snowflake's 12-month stock price forecast is set at $202.92, suggesting a 14.8% upside, supported by a moderate Buy rating from analysts [7][8] - The increasing reliance on cloud-based services as the global economy digitizes justifies the premium valuation of Snowflake's stock [9] - UBS Asset Management Americas raised their holdings in Snowflake by 16.4%, increasing their net position to $347.9 million, indicating positive investor sentiment [10] Group 3: Salesforce Inc. (NYSE: CRM) - Salesforce's stock forecast indicates a potential upside of 22.74%, with a target price of $365.32, supported by a moderate Buy rating from analysts [11] - Analysts from Canaccord Genuity Group have set a new valuation target of $400 per share for Salesforce, suggesting a 36% upside from current trading levels [12] - A 2.5% decline in Salesforce's short interest over the past month indicates a shift in sentiment towards bullishness, aligning with positive fundamental and technical factors [13]

Group 1 - The Q4 earnings season has negatively impacted many rebound rallies, with stock markets near all-time highs, leading investors to seek perfection in their investments as reasons to continue buying stocks are diminishing [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and advising startups, contributing to discussions on themes shaping the industry since 2017 [2]

Workforce and Human Capital - As of December 31, 2024, the company employed approximately 11,500 people globally, with about 7,000 located in the United States[49]. - The company has a robust human capital management strategy overseen by its Compensation and Human Capital Committee, emphasizing talent recruitment, development, and retention[49]. - The company has introduced a wellness program called Thrive Global in 2024 to promote overall well-being among employees[54]. - The company is committed to fostering diversity and inclusion within its workforce, which it believes enhances innovation and strengthens customer connections[53]. - The company has announced restructuring plans, including workforce reductions, which may impact employee morale and corporate culture[132]. Technology and Innovation - The company is focused on modernizing its Marketplace platforms through technologies like AI, aiming to create highly personalized shopping experiences[43]. - The company is investing in AI technologies, including large language models, to enhance its products and services, but faces competition and potential delays in development[97]. - The company must adapt to the increasing importance of Gen AI technologies in ecommerce to remain competitive[76]. - The company’s technology infrastructure is designed to reduce downtime and enhance the reliability of its Marketplace platforms[42]. Intellectual Property and Legal Risks - The company has been actively pursuing the registration of its intellectual property, including trademarks and patents, to protect its proprietary technology[46]. - The company faces ongoing legal proceedings regarding intellectual property rights, which could impact its business operations[48]. - The company faces ongoing challenges in protecting its intellectual property rights, which may be costly and time-consuming to enforce[112]. - The company is exposed to significant litigation costs from claims related to third-party sales on its platform[141]. - The company has been involved in various patent suits and may face more claims related to AI technologies and open-source software[117]. - Legal and regulatory developments regarding immigration could affect the company's ability to attract and retain skilled employees[130]. Competition and Market Dynamics - The company faces substantial competition from well-established brands like Amazon, Alibaba, and others, which have greater resources and larger user communities[69]. - The competitive landscape has intensified due to improved user experiences, lower shipping costs, and faster delivery times offered by competitors[70]. - The company emphasizes specialized categories, referred to as Focus Categories, which include motor parts, collectibles, and authenticated luxury items, to drive growth[79]. - The company faces challenges in meeting the unique needs of focus category buyers and sellers, which could lead to customer loss if not addressed promptly[79]. Financial Performance and Risks - The company generates approximately half of its net revenues outside the United States, making it sensitive to fluctuations in foreign currency exchange rates[84]. - International operations, particularly in the UK, Germany, and Australia, have contributed to about half of the company's net revenues in recent years[86]. - The company has substantial indebtedness, which may limit cash flow and liquidity if not managed properly[178]. - The Federal Reserve's interest rate hikes have significantly impacted borrowing costs, which may adversely affect financial results[175]. - The fair market value of fixed-rate investment securities was negatively affected by rising interest rates, although recent declines in rates may improve investment income[177]. Regulatory Compliance and Data Protection - The company is subject to increasing regulatory scrutiny regarding privacy, data protection, and cybersecurity laws globally, which may evolve and increase compliance costs[145]. - Compliance with the California Consumer Privacy Act (CCPA) requires the company to provide new rights to individuals, such as access, deletion, and correction of personal data[147]. - The Digital Services Act (DSA) imposes fines of up to 6% of annual global revenues for non-compliance, creating additional operational burdens[155]. - The company has implemented policies to ensure compliance with applicable laws, but there is no assurance against violations by customers or third parties[140]. - The company maintains cybersecurity insurance, but it may not be sufficient to cover potential liabilities from data breaches[126]. Currency and Taxation Risks - The company is subject to foreign currency risk due to significant international revenues and costs, primarily in British pounds and euros[314]. - The company maintains a foreign exchange exposure management program to mitigate risks associated with currency fluctuations[315]. - The company uses foreign exchange derivative contracts to protect forecasted U.S. dollar-equivalent earnings from adverse currency exchange rate changes[316]. - The company is exposed to potential tax liabilities due to indirect tax claims from various jurisdictions, which could harm its business if successful[181]. - Legislative changes regarding tax collection could make the company's Marketplace platforms less attractive to buyers, impacting overall business[184]. Cybersecurity and Fraud Prevention - Cybersecurity threats have increased, with a significant data breach in 2014 affecting up to 145 million users, highlighting vulnerabilities in the company's systems[124]. - The company has implemented measures to combat fraudulent activities on its Marketplace platforms, but effectiveness remains uncertain[120]. - Future cyberattacks are expected to be more sophisticated, particularly with the rise of AI technologies[124]. - The company collects and processes a significant amount of sensitive user information, increasing the risk of data breaches[122].

Core Viewpoint - eBay's stock experienced a significant decline following the release of its Q4 2024 financial results, reflecting investor disappointment over slow growth expectations despite modest revenue increases [1][4]. Financial Performance - eBay reported Q4 revenue of $2.6 billion, representing a 1% year-over-year increase, driven by a 4% rise in gross merchandise volume [2]. - For the full year 2024, eBay's revenue reached $10.3 billion, marking a 2% increase from 2023 [2]. Future Guidance - Management's guidance for Q1 2025 indicates revenue growth of at most 1%, which aligns with recent trends but fell short of investor expectations due to potential growth from partnerships with Meta Platforms [3][4]. - Investors had anticipated stronger growth following news of eBay listings being allowed on Facebook Marketplace, leading to disappointment when guidance confirmed ongoing slow growth [4]. Earnings and Shareholder Returns - eBay expects earnings per share (EPS) to rise from $0.85 in Q1 2024 to approximately $1 in the upcoming quarter, reflecting nearly 18% growth attributed to a lower share count [5]. - The company demonstrated strong profitability, returning $1 billion to shareholders in Q4 through share repurchases and dividends, alongside a 7% increase in its quarterly dividend [6]. Investment Potential - Despite the lack of top-line growth, eBay's stability in generating bottom-line growth and increasing dividends may present a buying opportunity at the right price [6][7]. - Future partnerships, particularly with Meta Platforms, could potentially enhance growth and provide returns for shareholders [7].

eBay Inc. EBAY shares are trading lower on Thursday following fourth-quarter results and soft first-quarter revenue guidance reported on Wednesday.The company reported earnings per share of $1.25, which beat the analyst consensus estimate of $1.20, and revenue of $2.579 billion marginally exceeded the analyst consensus estimate of $2.571 billion.The company sees first-quarter adjusted EPS of $1.32-$1.36, versus the $1.33 estimate, and revenue of $2.52 billion-$2.56 billion, versus the $2.59 billion estimate ...

Core Viewpoint - eBay Inc. reported strong fourth-quarter 2024 results with non-GAAP earnings per share of $1.25, exceeding estimates and showing a 16% year-over-year increase [1][2] Financial Performance - Net revenues for the quarter were $2.57 billion, slightly missing estimates by 0.02%, but reflecting a 1% increase year-over-year [2] - eBay's total gross merchandise volume (GMV) reached $19.3 billion, growing 4% year-over-year, driven by solid consumer demand during the holiday season [4] - The company's active buyer base increased to 134 million, up 1% year-over-year, surpassing consensus expectations [3] Advertising and Revenue Streams - First-party advertising generated revenues of $434 million, marking an 18% increase year-over-year [2] - Total advertising offerings yielded $445 million, representing 2.3% of gross merchandise volume [3] Operating Metrics - Gross margin for the quarter was 72.16%, remaining stable year-over-year, while operating expenses decreased by 8.6% [6] - Non-GAAP operating margin expanded to 27%, reflecting operational efficiencies [7] Balance Sheet and Cash Flow - As of December 31, 2024, cash equivalents and short-term investments rose to $5.89 billion, while long-term debt decreased to $5.75 billion [8] - The company generated $677 million in cash from operating activities and had a free cash flow of $560 million [9] Future Guidance - For Q1 2025, eBay expects revenues between $2.52 billion and $2.56 billion, with a projected GMV of $18.3 billion to $18.6 billion [10] - Non-GAAP earnings per share are anticipated to be between $1.32 and $1.36 [11]

Core Insights - eBay experienced a transformative year in 2024 by deploying AI tools for employees, sellers, and buyers, launching proprietary large language models (LLMs) [1][2] - The company utilized its extensive eCommerce data to create specialized LLMs, enhancing efficiency in various tasks and launching numerous customer-facing features [2] - eBay's collaboration with OpenAI's Operator aims to create a new online shopping channel, potentially increasing seller reach and buyer exposure [3][4] AI and Productivity - The introduction of new AI tools improved productivity in engineering and customer service, enhanced search results, and assisted sellers in generating product listings and automating social media [2] - By the end of 2024, dozens of features powered by LLMs were launched across various aspects of the platform, including search, payments, and marketing [2] Payment Innovations - eBay expanded payment methods, including the introduction of Klarna's buy now, pay later option in six European countries and a partnership with Riverty for monthly invoice payments in Germany [4][5] - The company focuses on adding locally relevant payment options to enhance buyer choice and optimize payment mix [5] Strategic Acquisitions - eBay's acquisition of Caramel, an online automotive transaction solution provider, aims to enhance trust in vehicle purchases and simplify the complexities of vehicle sales [6] - The improved vehicle transaction experience is expected to drive synergies in other categories, as vehicle buyers typically spend significantly on parts and accessories [7]

Financial Data and Key Metrics Changes - eBay reported a GMV growth of over 2% to $19.3 billion in Q4 2024, with revenue growing 1% to $2.58 billion [48][49] - Non-GAAP operating income increased approximately 2% to $698 million, and non-GAAP earnings per share rose over 16% to $1.25 [48][60] - The company returned more than $1 billion to shareholders through repurchases and dividends [60] Business Line Data and Key Metrics Changes - Focus category GMV grew over 6% in Q4, significantly outpacing core categories, which saw modest growth [51][52] - Trading cards volume experienced double-digit growth, becoming the largest contributor to GMV growth in Q4 [15][51] - Motors Parts and Accessories (P&A) also contributed to growth, with double-digit inventory growth and mid-single-digit GMV growth for the second consecutive year [17][52] Market Data and Key Metrics Changes - U.S. GMV grew by 1% in Q4, driven by improved traffic trends and strong late-season holiday demand [52] - International GMV grew over 3% on an FX-neutral basis, with strong trends in cross-border trade, particularly from Greater China and Japan [53] - The U.K. initiative provided an incremental boost to both C2C and overall volumes, with double-digit improvements in C2C GMV growth [22][53] Company Strategy and Development Direction - eBay aims to continue innovating within existing focused categories and extend its playbook to new categories, particularly in collectibles and fashion [39][41] - The company plans to leverage AI to enhance user experiences and improve merchandising [39][44] - eBay is focused on optimizing the C2C experience in the U.K. and Germany while investing in its global buying hub [41][39] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains dynamic, with resilient demand in the U.S. but weaker trends in the U.K. and Germany [110] - The company expects low-single-digit GMV growth in 2025 on an FX-neutral basis, with advertising, shipping, and financial services as key revenue drivers [71][74] - Management expressed confidence in the company's ability to generate sustainable long-term growth despite macro uncertainties [80] Other Important Information - eBay has set a 2045 net zero carbon emissions target and achieved 100% renewable energy sourcing for its offices and data centers in 2024 [37][38] - The company is targeting share repurchases of at least $2 billion in 2025 and has declared a quarterly dividend of $0.29 per share for Q1 2025 [79][80] Q&A Session Summary Question: eBay's position and exposure to changes in de minimis shipping, particularly regarding China - eBay's exposure to China accounts for approximately 10% of GMV, with 75% of Greater China volume already subject to tariffs [84] Question: Thoughts on the e-commerce discovery funnel and collaboration with OpenAI - eBay is focused on building agentic technology and sees partnerships as opportunities to enhance seller exposure and improve the shopping experience [88][90] Question: Focus category growth expectations for 2025 - Management expects continued momentum in focus categories, with significant growth opportunities in P&A and fashion [95][97] Question: Details on the Facebook Marketplace partnership - The partnership aims to broaden seller reach and enhance buyer trust through eBay's authenticity guarantee and checkout process [101][102] Question: Overall health of the consumer and its impact on eBay - Demand in the U.S. remains resilient, while trends in the U.K. and Germany are weaker due to lower consumer confidence [110] Question: GMV outlook and factors influencing growth - The company anticipates a deceleration from Q4 to Q1 due to strong holiday demand in Q4 and macroeconomic challenges [120][121] Question: Benefits from AI and proprietary LLMs - Over 10 million unique sellers have utilized eBay's Gen AI features, generating several billion dollars in GMV with high customer satisfaction rates [128]

© 2025 eBay | Business & Financial Highlights Q4'24 © 2025 eBay | Business & Financial Highlights Q4'24 2 © 2025 eBay | Business & Financial Highlights Q4'24 © 2025 eBay | Business & Financial Highlights Q4'24 Reconciliations of Non-GAAP measures are included in the Appendix of this presentation * Enthusiast Buyers are defined as buyers with at least 6 purchase days and $800+ (or local currency Enthusiast Buyers* Diluted Non-GAAP EPS Non-GAAP Operating Margin Revenue Gross Merchandise Volume equivalent) ann ...

Group 1 - eBay reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and showing an increase from $1.07 per share a year ago, representing an earnings surprise of 4.17% [1] - The company posted revenues of $2.58 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.02%, and showing a slight increase from $2.56 billion year-over-year [2] - eBay has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - eBay shares have increased approximately 14.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $2.6 billion, and for the current fiscal year, it is $5.23 on revenues of $10.59 billion [7] Group 3 - The Internet - Commerce industry, to which eBay belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - The performance of eBay's stock may also be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5][8]