2007 Annual Meeting of eBay Shareholders

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® 2007 Annual Meeting of Stockholders June 14, 2007

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Presented on 14 June 2007

Transcript of 2007 Annual Meeting of eBay Shareholders

  • 1. 2007 Annual Meeting ofStockholdersJune 14, 2007

2. This presentation contains non-GAAP measures relating to the company's performance. You can find the reconciliation of those measures to GAAP measures in the tables of our earnings release which is available through our investor relations website located at http://investor.ebay.com/downloads/Reconciliation.pdf.This presentation may contain forward-looking statements regarding matters that involve risk and uncertainty, including those relating to the companys ability to grow its businesses, user base and user activity. Our actual results may differ materially from those discussed for a variety of reasons, including our increasing need in established markets to grow revenues from existing users as well as from new users; an increasingly competitive e-commerce environment; the complexity of managing a growing company with a broad range of businesses; the impact of the companys recently announced pricing and product changes; regulatory, tax, and litigation risks (including financial industry risks specific to PayPal and risks specific to Skypes technology and to the VoIP industry); our need to upgrade our technology and customer service infrastructure to accommodate growth at reasonable cost while adding new features and maintaining site stability; our need to successfully extend our platforms to new countries and new types of merchandise and sellers; foreign-exchange-rate fluctuations; and the impact and integration of recent and future acquisitions.You can find more information about factors that could affect our results in our annual report on our Form 10-K and our quarterly reports on Form 10-Q (available at http://investor.ebay.com). You should not unduly rely on any forward-looking statements, and we assume no obligation to update them. 2 eBay Inc. - Proprietary & Confidential 3. eBays vision is to help people everywhere connect, discover andinteract with each other throughcommerce 4. Buy PayCommunicateMarketplacesPaymentsCommunicationscraigslist 5. Large and growing core business 222Confirmed Registered Users (M)233MQ1-07 56%CAGR 37 global markets 10 $1,800 GMV per second 19992006Gross Merchandise Volume$52B$14.3B 6.4M daily new listingsQ1-07 52%CAGR 50,000 API developers * As of Mar 31, 2007 $3B19992006 6. Significant opportunities for growth Growing beyond GMV Growing GMV+ New formats Enhance our product New monetization models Improve Trust & Safety Extend our offering 7. Growing GMV: Enhance our productImprove the Finding Experience New Search Results 8. Growing GMV: Enhance our productImprove the Finding Experience New Search Results New Search Landing Pages 9. Growing GMV: Enhance our productImprove the Finding Experience New Search Results New Search Landing Pages New Relevancy Based Listings Sort Best Match 10. Growing GMV: Enhance our productImprove the Shopping Experience Bid Assistant 11. Growing GMV: Enhance our productImprove the Shopping Experience Bid Assistant Detailed Seller Ratings -Feedback 2.0 12. Growing GMV: Enhance our productImprove the Shopping Experience Bid Assistant Detailed Seller Ratings -Feedback 2.0 Improved eBay Checkout 13. Growing GMV: Enhance our productImprove the Shopping Experience Bid Assistant Detailed Seller Ratings -Feedback 2.0 Improved eBay Checkout Motors 2.0 14. Growing GMV: Improve Trust & SafetySafeguarding Member IDs Selling limits on items favoredby counterfeitersEnhanced buyer protection 15. Growing GMV: Extend our offering eBay Express Convenience oriented buyer New search engine Shopping cart 16. Growing GMV: Extend our offering eBay Express Tickets - StubHub A leading secondary tickets marketplace Best in class buying/selling experience 17. Growing Beyond GMVNew Formats Shopping.com 60 million products, 280 categories globally The leading comparison shopping site in theUS International presence in UK, France,Germany and AustraliaA Better Way to Shop A Better Way to Sell 18. Growing Beyond GMVNew Formats Shopping.com Classifieds Buyer appeal: Local market transactions eBay c2c classifieds sites have a leading position in 21 markets and hundreds of cities Strong growth in unique visitors 19. Growing Beyond GMVNew Monetization Models Advertising / Click to Call In the US: Ramping up on selling our graphical inventory and have expanded graphical to more areas on the site Increased to nearly full exposure of text ads on null search results Continue to optimize ad placement on non-null search results Internationally: Began testing text ads on both null and non null search results in Q107 20. Marketplaces revenue growth $1.25B Q1-07 $4.3B53% CAGR$0.2B 2006 1999 21. Giving Works$100M raised for charity to date! 22. The global online payments standard Trusted brand Industry leading fraud management Global reach Best-in-class product 23. Large and growing core business133Accounts (M)143MQ1-07 62%CAGR 36M active accounts 12 $2B+ stored balances 20012006$38BTotal Payment Volume$11.4B 177M transactions in Q1Q1-07 57%CAGR 190 markets & 17currencies $4B 20012006 24. PayPals value proposition Merchants like PayPal Consumers like PayPal Easy to use Easy, all-in-one payment solution Convenient, online wallet with Largest consumer base, with multiple payment options $2B+ in stored balances Secure Cost-effective and competitivepricing structure Protection from unauthorized access to Safer, less fraudulent accountstransactions buyer protection Direct relationship with Fast, transactions only take a few customers seconds 25. Platforms for growth+ Merchant ServicesPayPal on eBay Product innovation Product offering Global expansion Global / merchant expansion New platforms Sales channels 26. Platforms for growth PayPal on eBay59% of global Product innovationaddressable eBay GMV Guest checkout Integrated shipping Market specific products Improved payment flow Global expansion - localized 14 sites to date Language Currency Local banking infrastructure Local regulation 27. Platforms for growth PayPal on eBay 26% of Skypes New platforms and marketplacespayment volume* Skype Shopping.com Classifieds* As of March 2007 28. Platforms for growth - Merchant Services Enhanced product offering Suite of products for all merchant segments Virtual terminal Improved reporting tools Easier integration process 29. Platforms for growth - Merchant Services Expanding across merchant base and geographies Continuing to grow sole proprietor and SMBmarkets Beginning to penetrate large merchants More than doubled currencies to 17 and increasedmarkets to 190 Multiple sales channels Penetration of merchants*: 37% - SPs VeriSign Payment Gateway 5% - SMBs Yahoo1% - large merchants Paymentech Direct sales* US online merchants Source:Forrester, 2006 30. Merchant Services becoming ubiquitous 31. PayPal revenue growth$439MQ1-07$1.4B 49% CAGR$0.4B2003 20042005 2006 32. Enabling the worlds conversations Strong brand Great product Global reach Thriving ecosystem 33. Enabling the worlds conversations 196Registered Users (M) 9M+ peak online users 3B+ monthly call minutes Q104Q107 Skype-to-Skype Minutes (B)7.7 4.4% of total international long distance minutes* 28 languages and nearly every country* 2006 TelegeographyQ104Q107 34. Continued product innovation Skype Send Money Skype Prime Skype Find Video SMS messaging Skype Mobile Skypecasts Conference calls 10 way Skype for Business control panel Phone number recognition Multi-chat Customization 35. Constantly expanding ecosystem 4000+ Developers! 350+ Skype-enabled 400+ Hardware devices!Applications!Partnerships withworld-class companies! 36. Skype is everywhere Off-Desktop On The Web Pocket PC, WinMobileIn Other Skype Me Buttons Corded and Cordless Major OperatingApplicationsWeb Presence PhonesSystemsToolbars for Internet (e.g., Salesforce.com Polycom speaker phone WinXP, MacOS, Linux Explorer, Firefox, Outlook Six Apart blogs, Postbank)WiFi Phones On your desktop across the internet and beyond! 37. Skype revenue growthTripled annualrevenue 21% CQGR$79M$25MQ405Q107 38. An incredible set of stand-alone businesses#1 in voice# 1 in #1 in onlinecommunications eCommercepayments 39. Stronger as one portfolio 40. Our financial modelRobust revenue growthProductFinancialIncrease innovation andflexibility scale long-termshareholdervalueHigh operatingStrong marginscash flows 41. Strong growthOp Margin Free cash flow Top line growth Expansiongeneration$1.7B+8ppts $6.0B 32.8% 56% 51%CAGR 24.2%CAGR$0.7B$0.2B 20012006200120062001 2006 42. gives us financial flexibilityReinvest to expand market opportunity Merchant ServicesCommunications Comparison Shopping Local Markets* and return shareholder cash$4B Stock Repurchase over 28 months*Skype acquisition financed with both cash and stock 43. Our financial outlookGenerate Expand Grow thestrong cashoperating top-line flows margin 44. Our 2007 financial outlook Top-line Earnings perOperating growthshare margin EPSOperating Revenue Margin $1.30 - $1.34 $7.20 - $7.45B~33% 24% - 28%21% - 25% Growth Y/Y+ 20 bps Y/YGrowth Y/YBased on guidance issued April 18th, 2007 45. Incredible set of stand-alone businesses Strong platforms for growth A great business model