10-KPeriod: FY2013

EBAY INC Annual Report, Year Ended Dec 31, 2013

Filed January 31, 2014For Securities:EBAY

Summary

eBay Inc.'s 2013 Form 10-K filing showcases a year of robust growth, with net revenues reaching $16.0 billion, 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 $2.18, 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 billion 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.

Financial Highlights

56 data points
Beta

Revenue

$8.26B

81.9% Gross Margin

Net Income

$2.86B

34.6% Net Margin

EPS (Diluted)

$2.18

Total Assets

$41.49B

Cash & Equivalents

$2.85B

Free Cash Flow

$4.32B

Financial Statements
Beta
Revenue$8.26B
Cost of Revenue$1.49B
Gross Profit$6.76B
R&D Expenses$915.00M
Operating Expenses$4.31B
Operating Income$2.45B
Interest Expense$95.00M
Net Income$2.86B
EPS (Basic)$2.20
EPS (Diluted)$2.18
Shares Outstanding (Basic)1.29B
Shares Outstanding (Diluted)1.31B

Key Highlights

  • 1Net revenues grew 14% year-over-year to $16.0 billion in 2013.
  • 2Operating margin remained strong at 21% for both 2013 and 2012.
  • 3Diluted earnings per share increased to $2.18 in 2013, up from $1.99 in 2012.
  • 4Cash flow from operations was robust at $5.0 billion in 2013.
  • 5Mobile commerce volume exceeded $22 billion in 2013, a 70% increase year-over-year.
  • 6The company repurchased approximately $1.3 billion in common stock in 2013 and announced a new $5 billion repurchase program in early 2014.
  • 7The Payments segment, driven by PayPal, saw a 19% increase in net revenues.

Frequently Asked Questions

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.

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.

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.

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.