01—Abstract
Summary
Summary of the 10-K filed January 31, 2014. Cited figures are marked; the original filing is the authoritative source.
eBay Inc.'s 2013 Form 10-K filing showcases a year of robust growth, with net revenues reaching $16.0 billiona, a 14% increase over the prior year.
This growth was propelled by strong performance across all three reportable segments: Marketplaces, Payments (driven by PayPal), and Enterprise. The company achieved an operating margin of 21% for both 2013 and 2012, demonstrating consistent profitability. Diluted earnings per share saw an increase to $2.18b, up from $1.99 in 2012, primarily attributed to revenue growth, though partially offset by a higher effective tax rate.
Cash flow from operations was particularly strong, generating approximately $5.0 billionc in 2013, a significant increase from $3.8 billion in 2012, indicating healthy operational cash generation. The company also actively managed its capital structure, repurchasing approximately $1.3 billion of its common stock during 2013 and authorizing an additional $5 billion repurchase program in January 2014, signaling confidence in its financial position and a commitment to returning value to shareholders. Investors should note the continued expansion of mobile commerce, with over $22 billion transacted across eBay's platforms in 2013, representing over 70% growth year-over-year.
02—Key points
Key Highlights
- Net revenues grew 14% year-over-year to $16.0 billion in 2013.
- Operating margin remained strong at 21% for both 2013 and 2012.
- Diluted earnings per share increased to $2.18 in 2013, up from $1.99 in 2012.
- Cash flow from operations was robust at $5.0 billion in 2013.
- Mobile commerce volume exceeded $22 billion in 2013, a 70% increase year-over-year.
- The company repurchased approximately $1.3 billion in common stock in 2013 and announced a new $5 billion repurchase program in early 2014.
- The Payments segment, driven by PayPal, saw a 19% increase in net revenues.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, eBay Inc kept $0.35.
- Revenue$8.26B100.0%
- Cost of revenue−$1.49B18.1%
- Gross profit$6.76B81.9%
- Operating costs−$4.31B52.2%
- Operating income$2.45B29.7%
- Interest, other & tax$402.0M4.9%
- Net income$2.86B34.6%
Where FY2013 revenue went
$8.26B- Other operating costs: $3.40B, 41% of revenue
- Operating income: $2.45B, 30% of revenue
- Cost of revenue: $1.49B, 18% of revenue
- R&D: $915.0M, 11% of revenue
Kept 30% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed January 31, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $8.26B$14.07B | −41.3% |
| Cost of Revenue | $1.49B$4.22B | −64.6% |
| Gross Profit | $6.76B$9.86B | −31.4% |
| R&D Expenses | $915.00M$1.57B | −41.8% |
| Operating Expenses | $4.31B$6.97B | −38.1% |
| Operating Income | $2.45B$2.89B | −15.0% |
| Interest Expense | $95.00M$63.00M | +50.8% |
| Net Income | $2.86B$2.61B | +9.5% |
| EPS (Basic) | $2.20$2.02 | +8.9% |
| EPS (Diluted) | $2.18$1.99 | +9.5% |
| Shares Outstanding (Basic) | 1.29B1.29B | +0.2% |
| Shares Outstanding (Diluted) | 1.31B1.31B | 0.0% |
05—Questions
Frequently Asked Questions
What were the key drivers of eBay's revenue growth in 2013?
eBay's revenue growth in 2013 was driven by increases in net revenues across all three segments: Marketplaces, Payments (PayPal), and Enterprise. Marketplaces benefited from continued growth in Gross Merchandise Volume (GMV), while Payments saw strong growth in Total Payment Volume (TPV). The Enterprise segment experienced growth driven by Merchandise Sales.
How did eBay manage its cash in 2013?
eBay generated strong cash flow from operations, amounting to $5.0 billion in 2013. The company also actively returned capital to shareholders through stock repurchases, buying back approximately $1.3 billion of its common stock. Additionally, eBay maintained significant liquidity with $12.8 billion in cash and investments at the end of 2013.
What is the significance of mobile commerce for eBay?
Mobile commerce is a significant growth area for eBay. In 2013, over $22 billion in mobile commerce volume was transacted across its platforms, marking a substantial increase of over 70% compared to 2012, highlighting its growing importance to the company's business.
Did eBay pay any dividends to shareholders in 2013?
No, eBay has never paid cash dividends on its stock and stated in its 2013 10-K that it does not anticipate paying cash dividends in the foreseeable future. The company's focus for returning value to shareholders is through stock repurchases.
06—Continue