01—Abstract
Summary
Summary of the 10-K filed January 30, 2019. Cited figures are marked; the original filing is the authoritative source.
eBay Inc. reported strong performance for the fiscal year ended December 31, 2018, with net revenues increasing by 8% to $10.7 billiona.
This growth was primarily driven by the Marketplace and Classifieds segments. The company also saw an increase in diluted earnings per share from continuing operations to $2.55b, a significant improvement from the prior year's loss. A key strategic move in 2018 was the sale of its Flipkart investment for $1 billion, contributing to robust cash flow from operations of $2.7 billion.
In a significant development for shareholders, eBay announced the initiation of a quarterly cash dividend in January 2019, signaling a commitment to returning value. The company also continued its substantial share repurchase program, buying back approximately $4.5 billionc of its common stock in 2018, with an additional $4.0 billion authorized in early 2019. These actions, combined with solid operational performance, position eBay as a stable player in the e-commerce landscape.
02—Key points
Key Highlights
- Net revenues grew 8% to $10.7 billion in 2018, driven by Marketplace and Classifieds.
- Diluted EPS from continuing operations improved to $2.55, up from a loss in 2017.
- Sold Flipkart investment for $1 billion, generating significant cash proceeds.
- Initiated a quarterly cash dividend in January 2019, returning capital to shareholders.
- Repurchased approximately $4.5 billion of common stock in 2018, demonstrating commitment to shareholder returns.
- Ended 2018 with $8.6 billion in cash, cash equivalents, and non-equity investments, indicating strong liquidity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2018, eBay Inc kept $0.29.
- Revenue$8.65B100.0%
- Cost of revenue−$2.02B23.4%
- Gross profit$6.63B76.6%
- Operating costs−$4.88B56.4%
- Operating income$1.75B20.3%
- Interest, other & tax$778.0M9.0%
- Net income$2.53B29.2%
Where FY2018 revenue went
$8.65B- Other operating costs: $3.82B, 44% of revenue
- Cost of revenue: $2.02B, 23% of revenue
- Operating income: $1.75B, 20% of revenue
- R&D: $1.05B, 12% of revenue
Kept 20% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2018filed January 30, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $8.65B$9.93B | −12.9% |
| Cost of Revenue | $2.02B$2.22B | −8.9% |
| Gross Profit | $6.63B$7.71B | −14.0% |
| R&D Expenses | $1.05B$1.22B | −14.1% |
| Operating Expenses | $4.88B$5.44B | −10.4% |
| Operating Income | $1.75B$2.26B | −22.6% |
| Interest Expense | $326.00M$292.00M | +11.6% |
| Net Income | $2.53B-$1.02B | +348.8% |
| EPS (Basic) | $2.58$-0.95 | +371.6% |
| EPS (Diluted) | $2.55$-0.95 | +368.4% |
| Shares Outstanding (Basic) | 980.00M1.06B | −7.9% |
| Shares Outstanding (Diluted) | 991.00M1.06B | −6.9% |
05—Questions
Frequently Asked Questions
What was eBay's revenue performance in 2018?
eBay reported a strong increase in net revenues, growing by 8% to $10.7 billion in 2018. This growth was primarily attributed to the performance of its Marketplace and Classifieds platforms.
Did eBay return capital to shareholders in 2018?
Yes, eBay demonstrated a commitment to shareholder returns by repurchasing approximately $4.5 billion of its common stock in 2018. Furthermore, in January 2019, the company announced the initiation of a quarterly cash dividend, signaling a new phase of capital distribution.
How did eBay's profitability change in 2018?
Profitability saw a significant improvement in 2018. Diluted earnings per share from continuing operations rose to $2.55, a substantial increase from a loss of $0.95 per share in 2017, reflecting improved operational performance and strategic financial management.
What were eBay's key strategic activities in 2018?
Key strategic activities included the sale of its Flipkart investment for $1 billion, which provided a substantial cash inflow. The company also continued to invest in its platform transformation to enhance the buyer and seller experience, focusing on personalization and structured data.
06—Continue