eBay(US:EBAY)2024-05-02 20:52Financial Performance - Net revenues for Q1 2024 were $2,556 million, an increase of 1.8% compared to $2,510 million in Q1 2023[12] - Gross profit for Q1 2024 was $1,856 million, up from $1,810 million in Q1 2023, reflecting a gross margin improvement[12] - Operating income increased to $631 million in Q1 2024, compared to $558 million in Q1 2023, representing a growth of 13.1%[12] - Net income for Q1 2024 was $438 million, down from $567 million in Q1 2023, indicating a decrease of 22.8%[14] - Basic net income per share for continuing operations was $0.85 in Q1 2024, compared to $1.06 in Q1 2023, a decline of 19.8%[12] - Operating margin improved to 24.7% for Q1 2024, up from 22.2% in Q1 2023, reflecting enhanced operational efficiency[159] Cash Flow and Assets - Cash and cash equivalents increased to $2,130 million as of March 31, 2024, compared to $1,985 million at the end of 2023, a rise of 7.3%[9] - Net cash provided by operating activities decreased to $615 million from $841 million year-over-year, reflecting a decline of 26.8%[19] - Cash provided by continuing operating activities was $615 million for the three months ended March 31, 2024, down from $841 million in the same period in 2023[200][202] - Total current assets decreased to $10,406 million as of March 31, 2024, from $11,016 million at the end of 2023, a reduction of 5.5%[9] - Total cash flows from investing activities provided $250 million in Q1 2024, a decrease from $701 million in Q1 2023[19] Equity and Investments - The company reported a total stockholders' equity of $6,273 million as of March 31, 2024, down from $6,396 million at the end of 2023[9] - The equity investment in Adevinta decreased from $4,474 million to $4,240 million, reflecting a $234 million unrealized loss in Q1 2024[63] - The company reported net losses of $246 million on equity investments for the three months ended March 31, 2024, compared to net gains of $160 million for the same period in 2023[71] - The total gain (loss) on equity investments and warrant, net was $(97) million for the three months ended March 31, 2024, compared to a gain of $198 million in 2023, primarily driven by changes in fair value of equity investments[192] Liabilities and Debt - Total liabilities decreased slightly to $15,145 million as of March 31, 2024, from $15,224 million at the end of 2023[9] - As of March 31, 2024, eBay's total debt was $7.725 billion, slightly up from $7.723 billion on December 31, 2023[101] - The company had no commercial paper notes outstanding as of March 31, 2024, maintaining a borrowing capacity of $2 billion under its credit agreement[111] Expenses - Total operating expenses decreased by 2% to $1,225 million for the three months ended March 31, 2024, compared to $1,252 million in 2023[181] - Sales and marketing expenses increased by 6% to $541 million for the three months ended March 31, 2024, primarily due to a $38 million increase in advertising and marketing program costs[181][183] - General and administrative expenses decreased by 20% to $238 million for the three months ended March 31, 2024, mainly due to a $51 million decrease in restructuring costs[181][188] Dividends and Stock Repurchase - The company declared dividends of $0.27 per share in Q1 2024, up from $0.25 per share in Q1 2023[16] - The stock repurchase program was authorized for an additional $2.0 billion in February 2024, totaling $6.0 billion since 2022[137] - The Company paid a total of $139 million in cash dividends during the three months ended March 31, 2024[138] Legal and Regulatory Matters - The Company accrued for probable losses of $64 million as of March 31, 2024, related to ongoing legal and regulatory proceedings[131] - The Company paid $59 million as part of a settlement agreement with the DEA, resolving allegations of noncompliance under the Controlled Substances Act[128] - Legal and regulatory proceedings are subject to significant uncertainties, and unfavorable outcomes could materially impact the Company's financial condition[125] Market Performance - U.S. net revenues increased to $1,302 million in Q1 2024 from $1,261 million in Q1 2023, representing a 3.3% growth[50] - The U.S. market contributed $1,302 million to net revenues, a 3% increase from $1,261 million in Q1 2023, while international revenues remained flat at $1,254 million[169] - The company experienced reduced traffic in most markets due to geopolitical events and inflationary pressures, which are expected to continue affecting consumer spending in 2024[156][176]