eBay (EBAY) 22 Feb 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the eBay Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank

my Mr. now Sir, turn call the go It Egbert, pleasure Senior to John Relations. Director over ahead. is to of please Investor

XXXX us Good eBay's for Thank call. joining afternoon. fourth you quarter earnings conference for

of which Jamie Investor Jamie's Joining Executive eBay our during and the Chief Officer. Steve's Officer; me slide Relations a call, our Chief We're Priest, commentary Iannone, providing investors.ebayinc.com. call is Steve presentation at today the the Financial on section available are through and to website the accompany

Before we during to will non-GAAP begin, I'd remind you related like discuss this that to our measures we conference performance. call, certain

You measures our to can measures these in reconciliation accompanying GAAP find of the slide nearest the comparable presentation.

reflect year-over-year all indicated otherwise. unless FX neutral noted growth remarks Additionally, rates comparisons, in our will prepared

make unknown call, These financial and expected forward-looking including, conference performance our and without results. regarding this management known limitation, risks future involve statements, statements During and uncertainties. forward-looking statements will

of for may results differ actual variety Our our materially forecast a reasons. from

You our operating about can earlier affect reports our release recent most XX-Q our that in on earnings risks, other periodic factors and find from uncertainties XX-K, results could Form and today. more Form information

as statements. and undertake You any not on presentation XX, to update information duty we no February forward-looking rely this in is do should not and of XXXX, All intend this information.

I'll that, over the turn Jamie. With to call

consistent eBay, thank everyone, for long-term and was joining of our us year for progress afternoon, you Good John. Thanks, we execution objectives. made against XXXX a as significant today.

Enthusiast Buyers. global our as expanded million for underlying coverage our in growth focused XX drove business, categories Our we

authentication capabilities, buyers. of the valuable OEM and accelerated authentication trading In new retired We P&A and categories and countries and week technology, velocity. new tech simplified week. enhanced as We and trust motors, improved and has We increased parts over our growth handbags. core or opened store for legacy jewelry items fitting services grown our parts fine accessories, extended cards like adoption several our centers usually to to architecture the for signals we of supply opened and Vault transact steadily in improved

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up sellers, viewers, scaled healthy number engagement eBay select to events we sellers. bringing participating a level with QX, During of a of GMV and live

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collectibles And respective of has also TCGplayer QX, developing we synergies greatly our enhanced began category. acquisition marketplaces. Our in our between

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launch to which TCGplayer with robust this Comex offering. enabled intelligence, data help pricing sales historical scale us eBay's will

days, TCGplayer While our community what integration eBay time. in to over its early will bring excited I'm incredibly to is see

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can was XXX In cross-border of in XXXX, activate GMV Sellers trade. over through roughly our internationally countries buyers listings globally. their one-fifth who reach facilitated

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leverage a half reduced continued listings, in one Authenticity ability and the conversion. be A uplift reduction in deployed average resulted to us example model days for for are a rollouts in eligible products by the delivery days AI to US Applying more for processes this for will existing focus the Guarantee just average domestic US all resulting of of in a in XXXX latest efficient, approximately beyond. noticeable two our separate listings. model an and make our These estimate which

ads. to on Moving

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than of $XXX than drove points $XXX voted we live adopted up faster Promoted X million, in Over listings. XX product more Listings eclipsed ad revenue million and first-party a sellers XX% growth. million single GMV QX or ad

largest quarters rates. is on to was Promoted total basis to Additionally, a as contributor ad of nearing prior continue optimization annual and both penetration growth, sequential our from ad Listing Standard again an X.X% GMV. benefit gains the revenue

algorithms of which and preserving buyer also show products, improves satisfaction, also improved In merchandising relevance diversity to we QX, a conversion. greater while our

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parties to of suite full ad delegate our across enables brands like access account sellers management listings, multiuser third eBay campaign to introduced agencies. also We promoted which or trusted

Turning to payments.

high to We continue improve to support fire conversion. ASP services roll transactions out additional payment and

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more in collectible assets items. eligibility ramp extend and We'll the for vault

collectors. TCG integrations our Origin player strengthen for proposition with and known While will value

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we build in year, experiences compelling relevant European as this approach, just some Finally, in focus one-size-fits-all adapt have we markets. and our categories, our done localized of will more to

of forms address and policies. market-specific language other experiences, discoverability, local enhance gaps return experience offer local in will friction search, simplified new payment through selling We and reduce

would buyers our during I serving for supported times. accomplishments on employees challenging their closing, thank extraordinary like sellers to these our year. unrelenting Their community eBay In focus economic this has and customers excellence develop confident a our operational to eBay compelling create talented our will shareholders. on continue for I'm persistent for long-term and strategic that with and value vision focus team, our our we experiences

the provide on to turn over I'll call over performance. you. to our to Steve that, Steve, With financial more details

with Thank joining begin you, Jamie, fourth our thank all highlights for earnings you X from I'll presentation. Slide on the and today. of us quarter

detail. financial key review Next, and I'll in metrics our operating greater

color Finally, additional our Q&A. on for outlook first and the begin fit I'll quarter provide some XXXX we before

As our usual, end at or headwind expectations We comments reflect expected merchandise QX the volume basis, key Aegis. to financial otherwise. declined $XX.X on X% billion, will was metrics exceeded solid my comparisons to unless guidance landed an in I and FX-neutral reported our as delivered near Gross while high year-over-year note FX growth. results X-point above a

XX% million share, $X.XX marketing of up while year-over-year, and strategic dividends. approximately to by continued due to the We $X.X business. was investment shareholders flow, within the growth $XXX to advertising our delivered and and Revenue through to per points, year-over-year, was support operating due earnings volume XX.X%, generated returning volume X.X X% non-GAAP billion, margin to which up we $XXX initiatives. repurchases free X% primarily million deleverage robust X cash of Non-GAAP points down and down at outpaced FX

results amid of cost their uncertainty. delivering resilience maintaining marketplace economic and continued objectives. long-term of in financial support executing prudent proud on demonstrate I'm deliverables teams extremely of key the discipline Our our our our quarterly growth QX commitments,

Let's take at financial sequentially. a roughly down decelerating the X% X closer Gross during merchandise look volume quarter. fourth year-over-year, point is performance our

low pressures, consumer geopolitical remains inflationary interest confidence resilient headwinds rates. uncertainty, business despite rising from Our and

points greater Additionally, than FX of of approximately point GMV headwind QX. was X a roughly X.X

And points over focused aggregate, continues year-over-year prior during of marketplace will in categories delta. and QX, sequentially business. like vehicle the focused excited roughly what for X we points see accelerated category. are quarter and this to in in our Motus contributor than to you program drive growth the fix the Fit largest growth Momentum categories our two faster this outgrew rollouts underlying badge to Guaranteed recent accessories outperformance. remain remainder by Parts momentum In do

see selection We've brands in we across also and Refurbished more item months. goods process to industries pressure QX, luxury our as the and trends scalable mitigated trading depth sellers QX, which onboarding also recent ASP positively third-party to the categories. increase on contributed to has macro continue and new these observed transactions to expand to our authenticated marketplace. refurbished in continue driven healthy of growth categories, cards made for breadth the Within we in in

of As of TCGplayer's close, end the you'll the to recall, not GMV we material of of financials closed the timing at But October. is TCGplayer contribution are acquisition included the QX. partial based A quarter on in and expenses our results. deal revenue for

Looking at a our business geographic on basis.

Our sequentially. X% basis, quarter of last down roughly prior from GMV decelerating while QX X% neutral stable our the GMV X%, quarter. an grew rose declined by on X% to GMV XXXX, versus in GMV which XX% FX declined US a US two QX marketplace points total was International year-over-year international versus Compared XXXX, deceleration X%. was

more remain pronounced categories underlying including growth year-over-year QX. internationally, strategy category in notable in luxury focused positive continued headwinds during macro P&A strength Although to in and growth our drive Europe,

active buyers during buyers, buyers. XXX ceased the business, we operations TCGplayer XXX months. active where and trailing our million to in million excluding on acquisition bias from had active our Moving eBay shopped July. We XX Turkey

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rose to above enthusiast the at migration healthy spend lapping since $X,XXX we eased mid-value Average as these again continue annually. sequentially has in disclosing lowest began recent downward the observed group buyer of be we pressure groups is net quarters. per enthusiast and The also was

revenue. to Turning

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QX sequentially. was basis roughly XX Our rate points XX.X% take in at

were in FX we in contributions healthy the of our and driver hedge rate sequential gains revenue. QX, Although increased significant continue see to payments advertising take both most

ad revenue build quarter. advertising Total Our business the during to continues grew XX% momentum.

Our first-party extraordinary meaningfully. promoted second volume primarily growth result by This standard improvements in contributed per products, points as click than more Healthy quarter. in ads and grew our was XX%, driven newer outpacing XX straight the for by optimization listings performance also our most our notably cost product.

third-party weaker an contributed due portion over Managed increasingly XX these our ads FX legacy seller sequential take financial in buyer of service represent categories. our ads offerings. but facilitates Our cross-border payments include rate transaction our expansion by and nearly industry-wide that QX payouts, points Holloway, mix. basis faster trade, headwinds conversion and high display were to new luxury driven the debit smaller These card supporting SP new to services

track Importantly, on meet remain discussed we multiyear at Day. both targets revenue to payments our advertising and Investor our

and Moving margins down Non-GAAP point offset nearly fees. lower processing but sequentially to year-over-year. to XX.X% operating authentication deleverage were Gross by due was modestly year-over-year margin points X.X in one QX, up costs, payment partly volume profitability. down

some support while categories, and invested relatively hiring development in a rose flat percentage of over continued technical by to point revenue impacts one-time offset marketing we our Sales of funnel product marketing full focused as as talent. one as was

GAAP revenue recognized million pending within expense expense In charge matters. charitable rise $XX one-time other percentage G&A related and of G&A to a of contributions items. a QX, Our legal we to as due

of our our including adjustments in these presentation. GAAP non-GAAP see to appendix reconciliations earnings You'll the

our Form accrual Additional provided in details be this upcoming XX-K. on will

with our year-over-year, share We by repurchase. non-GAAP GAAP We share driven equity earnings QX, benefiting investment from being X% earnings from our portfolio. count a in a generated delta $X.XX, per $X.XX in of of recovery up XX% in reduction per share delivered share the

sales million capital the in to tax balance on and $XXX prior Turning of driven investment Free QX, to in sheet the payments lapping our by grew cash year. flow allocation. primarily XX% cash

ended we a $X.X balance sheet debt and Our debt with and cash gross in November. successful investments non-equity $X.X raise of remains the position quarter strong as following $X.X billion billion, of billion

of of per of million paid under an during million quarterly a at $XXX have approximately roughly and December repurchased price our $X.X $X.XX QX $XXX average shares or remaining We current cash over in We share. billion authorization. $XX dividend

our Our detailed portfolio slide is on presentation. of earnings XX investment

Our end equity approximately investments were quarter. of at $X.X billion at valued the the fourth

minimis satisfy de a in shares number of our Adevinta $X.X were requirements, at sale regulatory December million valued billion. the $XXX roughly shares of Following to

investment successful. tranche based probability the of our Adyen Our on remaining calculated is value warrant

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Moving our on to outlook.

estimated For negative the FX includes billion from negative between $XX first This anticipate outlook one-time growth to quarter, and we growth headwind and between forecast neutral recognized three year-over-year. reported QX an GMV already organic two representing million billion, X% X% benefits FX and an in $XX.X points. GMV $XXX between and

between flat year-over-year. representing We $X.XX X% neutral expect FX growth revenue generate between and billion and up organic $X.X to billion,

XX.X% XX.X%, and representing earnings flat and share per EPS between a non-GAAP anticipate up X% and between margin year-over-year. growth non-GAAP we forecast and and operating $X.XX between We $X.XX

are are directional we thinking guidance we full the operating not on share dynamic about we XXXX. Although, environment, currently color providing time, how at given this some year will

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we sequential we of roughly approximately currency. observed excluding growth the during impact As to GMV seasonality a expect currently result, QX XXXX, our beyond

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forecast we look of cost program roughly structural growth inward to our as cost expense of savings continue Our for efficiencies net $XXX OpEx our is million also business. from in

I'd like to the to some share additional one-time context impact margin. on

year, Shield. through past progress KnownOrigin, several acquisitions accelerated the of XPM objectives myFitment, Over we our and towards strategic TCGplayer, core the

we excited in long-term the While them integration growth into on level and work about scale synergies are present as the natural our of potential profitability of in margins these which does a with progresses. a assets, our marketplace lowering will drag short-term, the diminish

velocity The Shipping seller rollout inventory unique long over and availability improve run. eBay of of global the International will

will us in Our versus being previous relationship global an to intermediating role shipping program and with this agency shift in shipping in our returns principal sellers program.

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increase share On Board our quarterly allocation the to I'm raising to XX% front, in capital XXXX. pleased our a $X.XX recently dividend, per approved announce to

and to target between cash XXX% priorities capital to free broader unchanged. shareholders continue and remain of XXXX, We approximately allocation flow returning XXXX our

fortress with environment inorganic balance us to shareholders. strategic competitive healthy to Our in while accelerate still tremendous our invest advantage our delivering investments, in disciplined business, this capital return is sheet objectives organically a that enables

quarter-to-quarter. it and share current to needs the our balance macro prudent of capital In with repurchases we from magnitude the environment, believe is timing

offsetting and be is regard first priority Our we to expect with larger to dilution, opportunistic repurchases.

as our for QX eBay a significant expectations closing, long-term macro resilient results progress for QX. consensus We GMV, we uncertainty. and In XXXX meaningful year revenue capped off our towards made despite strategy, exceeded EPS during in

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to a we payment continues despite expectations. more meaningfully while beginning initiatives the with year. to challenging at in macro anticipated revenue the with full of XX% growth, of operating volume than We achieved continue advertising margin line Our environment outpace year contending a scale

We generated nearly billion free $X.X flow shareholders to in cash and and returned our nearly $X.X repurchases free XXXX cash to through of billion equating flow. in dividends, XXX% over

eBay economic and XX% proud pave We an industry way in I'm our XXXX carbon as continues that from our to and emissions the to carbon enabling of achieved to empowerment operations again neutrality by leader, sustainability platform. committed once our remain reducing XXXX.

long-term despite I'm path delivered XXXX the exit to us I'm a investments year of our enabled number keeping when growth. team's us incredibly environment. macro core confident it, in appreciative than on we on objectives, as uncertain XXXX, strategic entered navigating of we our focus and sustainable execution a stronger during our to

will take With that, Jamie your and now questions. I

with the first question Colin of Instructions] Baird. Sebastian line from [Operator Your is

Your is line open.

Thanks, which year be focus Jamie, A as for off, you on first views the of ago. guys. there. Some of questions good ways and evolved a that may you a seem talk you couple generally at afternoon, on segment outlined with satisfied me. Maybe, the that But and year level, non-new-in-season Great. enthusiast the high strategic in next say through years? about but your for plan nuanced, this curious if couple wonder, of could more strategy you the any you'd I has buyers

more a on wanted the then, XXXX little to bit drill And outlook. down I Steve, just

impacts. and of margin the I GMV some we think understand the perspective

should payments you. rate, between take given the to year? On growth gap continues GMV and grow, the the that, through increasing advertising of and contribution we assume that revenue Thank

Yes.

are, So pleased first of the on with we're seeing. we're that we the where kind progress

to think focused at about you focus the of rest customer seen satisfaction, return largest on large business the category being parts of $XX we've last Day categories end share accessories, at if the by It's our took We with billion. outgrowing points, very we're So the that market we is year over great. that outlined Investor seven change in that seeing double-digit and growth, business. a which and

non-new-in-season, that the is as times. work to build refurbished made the shift economic that to All strong and I really And category a think, did especially in we we helping on eBay. these us, challenging

Now the re-commerce Z, challenging which And where bought largest XX% times, our Report, I that's to re-commerce is turn ever XX% headed. had we're was financial I'd Week. them we week of out during seeing leaning the said think in Cyber to point during of you value. really XXXX we're of consumer it respondents -- put And into people the we the value which and yesterday, provided. said because Gen economic

we're in we right So, think there.

going our us on as one expand of with to our side. eBay to that what work businesses. horizontal in did We're on there end see example artificial that the search to and additional you talk as work to second the And that we in and one. build doing not of then with horizontal intelligence in we're continuing about that, just merchandising International Shipping. lot a doing only I advertising work bringing the we the did focused I'd but enhance to strategy. that continue a We're also categories,

International of Cross-border consumer. especially we're Shipping, transactions across huge board the whole have, easier of trade the lot It's And on value eBay making that's with propositions we the opportunity that a in what five one side. one and on kind horizontal individual we're doing eBay. is with now another unique the that for

part? I'll the So on. more details the take get want over Steve, we're we about you the course vector to second good but year, feel about into really it, and that do of the more

you our but on outpace to terms Colin. regard With give payments tremendous continue expect as and we job is tracking at of direction the really in they with the to execution versus teams terms and say associated guidance call 'XX, in to Yes. specific that pleased ads. as for did don't that a from should the payments Investor with medium-term XXXX. in in did Hi, GMV, the afternoon, Day We targets them we're of towards well good any payments, gave

where we with pleased are. and teams the from execution great So,

Great. you. Thank

from of Piper question next Champion Sandler. line Your is the with Tom

open. Your is line

Could surprised curious, if Steve, it good like a kind FX-neutral in the just exceeded you. for maybe I'm result. one of by you've second And growth domestic the talk that about quarter international guys. internationally, quick a seen please GMV you're row. for Hey you afternoon, looks

you the think $XXX guidance. referenced curious that. P&A driving GMV benefit, maybe luxury to and million in then And I I believe, that – to the

I was in there think guidance. to reference the some that

turned a talk quick there. Jamie, could, how you one if authenticity feel a about and can like you whether for you Maybe, corner I executing are just you've just and you,

think go? the your you How have need of goods. authenticity to much do removing around there? Thank been acquisitions I and centered you how you. further do most recent fake And progress feel about

up called business business that on we in been based that October than Tom, regards business coming I'll different pick Obviously, we've fourth our those based softness earlier seeing that the Hi, we and were color the the out some dynamics operating of US the in that. of international actually And one. the the to some international pronounced we macro saw obviously, and through as than guided first macro environment, quarter terms in. some US US, we're challenges the on more environment dynamic the of with

momentum good Europe I in one the luxury, seeing both and in underlying seeing and thing we're execution own internationally couple would UK P&A, key our the that, US in are the the number momentum markets in in number things example, Europe, for say the US. Germany of P&A, like and The US the a focused and both two is refurb categories, and is in

that notably around the this to a year. item New which Jamie not benefit most prepared through GMV expect in for continue sellers, typical a we QX, do million Lunar specific as pertaining not you? open of to is we stores the Chinese over one-time the Specifically, out in comments, It's laid $XXX to which year. is Year, time keeping the their through this

Yes, Tom.

the of it's impact about having authenticity, we're that in it. So great customer execution satisfaction we're on feeling on what of terms and the seeing

handbag, If different level sneakers, focused of is the like for provides categories you think about watches, it other what authenticity trust. luxury in those game-changing categories. That's

XX-day two-year refurbish, and returns. example, the warranties for in hassle-free it's So the

is did really that that part key. game-changing just we launched week level using market P&A, they've which trust, built a paid going this to of trusted acquisition is shop, And Fit, then that, a dividends, Shield, fit the something to the state-of-the-art guaranteeing which really on investments a continuing capability Guaranteed place keep that your recently to-date, progress like marketplace, which us feel giving the we AI where with is it's is has The the which as prohibited really are. really advanced good we XPM we've the compliance help trust from and ROI to eBay really product, technologies great items of and made off we platform. just the building about massive And really and theme that that's

Thank you. it. Got

Your is with from the of next line Bernstein. Nikhil question Devnani

is open. line Your

that growth see Thank in out there right XXXX and changes the did post-COVID year well. you terms better did for Omicron mentioned you please. thanks started I to you the in any guys. that, framework, then US but the growth, question. had persist, GMV you or dynamics of Hey, taking use or the trends couple October, given for on like for that called worse? XX% in it is a softness feels of you year Steve, that seasonality just kind And

GMV marketplace as a especially Thanks why Just in step it the wondering down QX, to in invest well make QX, you lot. better? would as

questions. the for you thank Nikhil, Hi,

to in, the to a particularly and the of pleased First P&A and refurb sort of execution coming focus some for as our came to it. through fourth of really highlights be of said fourth continue quarter comments, in like prepared see the with quarter we categories all, we as in regards couple key

we the guide. through core we towards basis, end of we'd through rate top a an came mentioned, in have expected couple of the through. we've exchange headwind fourth some strength went focus did But the US And the quarter. As as come we as categories on less really, with dollars the

macro with With dealing to XXXX. community macro during wanted XXXX. and we an we're incredibly about environment the the to obviously, investor start to think challenged dynamic has we as the regards dynamic sequencing, been give for And some color

guide in the for that comprehensive given directional we've quarter. And so first a color,

we just in to of prudent felt we that the are to We on at uncertainty the lay based challenge relating facing continuation underlying continue and sequencing the of business. that sort But out the most it execute was that moment macro XXXX. to

Got a it. Thanks lot.

is of Your from the line Ross with next Sandler question Barclays.

is line open. Your

guys. Hey,

quick on a to follow-up that sequencing GMV one. that Just last answer

services to you sound away back which XXXX. in it is really shift that ascribe what goods theory and the some wallet XXXX, may the to doesn't consumers of share of from in So opposite like kind happened

So comment that? any on

And see that just the guess, I lot that that back to GMV can there mid-singles? different world, then And anything up at you Is else growth control Day. seeing your we're Analyst inflation just around take in different to framework laid you get it in of rates GMV the a those what question out would to get the then second is countries. rates to

You of guys cross-border have a corridor. lot

cross-border? impacting far the So Thanks lower places the Germany potentially like a and as US business in than as inflation UK your lot. how is the

Ross, I'll Hi, those. take

for quarter, to execute. which guide effectively up seeing. We're GMV trying we're trying into dynamic the focus plan of execution to our We're Again, alignment. and the environment sequencing, we that around first comprehensive very strategy, give working the the put some we're leaning to pleased just the regard year. to the well with that still the a macro full is haven't guided business So just directional really with categories

as think mentioned of half direction see certain about as we fact that through things challenged very We XXXX. very, say, we a Again, the the navigate we're year. alignment on many how first just about commentators given and do we some

just providing So accordingly. some color

would, whether Jamie the it's in framework, benefits the of business. about authentication leaning exactly P&A, luxury, Day to regards With we it's the extensively we're Investor talked GMV impacting where whether we said

And growth momentum we payments strategy, the so business as seeing with the by be in continue we fueled seeing underlying to we're execute positive are our and that ads.

Investor in, when get In out and a timing will function the duration we an timing of of macro longer-term of terms to the the Day, operating the of that potential obviously indication which those that terms really GMV severity the we we're in at targets. framework of environment laid that's of have

And impacted business. And well quarters the go impacting as then the is number energy forward. in labor particularly Europe. got Europe regards finally, more across businesses over addition, because our of you've pronounced in and a as because with inflation -- challenges in to has as you that's being been inflation, imagine, of Europe the US of some recent pressure impacting we

great we a items, a our we however, resilient are we have lead and suppose, because impact on consumers eBay, where just on a, around of lot impact but have items do value, and reflection that non-new-in-season for that helped of general does Specifically, have inflation I that. business, pre-loved performance was refurbished and looking business in our platform a into mixed QX really a

However, consumer because to of immune on the the the macro discretionary spending. not inflationary challenges, we're pressures

bit gives how of we in color terms of about that the business. a hopefully, you So, think little

Your Suisse. next Credit of the from with Stephen question is Ju line

open. line Your is

you. Thank

quite a call. opportunity this spent we of think I Jamie, So, bit through re-commerce on time talking the

gently and problem. creating sorting with from seller-to-seller, the on unique not to same increased having how how parameters think probably item history have described that's a cataloging, eBay's used given I or may be Now, that gently that's

tapping opportunity correct can are the how of So, results about you ultimately, the the you to user? sort talk and

last able check Fits going looking Your Vehicle. say, if in What made and investments marks, the Stephen, couple the would right? basically the Yes, and doing you're example, let's and being to accessories, I that green accessories, these there of quarters you're you, on parts using see around point our to we've we're fitments just say, site for and is parts the knowledge over big all

going just released to Think about as And authenticity say last now for actually to week, like fit. we've guarantee guaranteed it's what with we're vehicles. that

experience. the that we're So, way category-by-category, continuing improve search best to to find

saying refurbished going behind stand certifying like Guarantees. And Money-Back hassle-free return refurbishment it's a we're and with eBay something quality of to the that that XX-day

search the what's combination the that great AI well rolled with It's better search our drive working why strategy more out. those that drive basis, and two. cetera, to of results, a et platform relevance the us of really doing on that is numbers categories that I in we're the intersection out, we've and strong the think, combined So, focused for in category-by-category work seeing the with experience team recall really on so optimize category-specific really our work to we're the in does

you. Thank

is Your next of question Doug from JPMorgan. Anmuth the line with

open. Your line is

and just expenses shift Great. and I ask growth expenses, about gears and Thanks want in non-GAAP much. XXXX. X% Steve, the to so in

assuming guess, you'll If some you should that thinking about on puts and key here And sales just Thanks. in funnel talk could continue and the particular, categories? full of takes? marketing, margin the I how focus investments we and about do be to

Doug. afternoon, Good

always for say program the of continue, as the I efficiencies continue while operational think trajectory through drive at at likes to to organization, the long-term for to the structured and we're into will business. that the we where invest a we going the the on lean deep short-term I been have same the growth of would level, macro future cost time very

eBay invest to is of that In the communication The and X% the invest continue and get strategic International of we've full $XXX the our points we'll of invest the marketing sure non-GAAP laid year-over-year trust platform making in includes out. funnel program in and in structural terms want of basis in expense the program, we that growth making customers. continuing continue XXX it's customers headwinds that matters associated of million net to continue we M&A that be the XXXX terms to playbook. about in increase to margin out cost the to then Shipping product talked on with It's investments in

about. got long-term we're continuing the sustainability and drive two So items in if efficiencies, the talked of leaning of I've headwinds business. couple back, for stand cost I a with to future invest to we've those We're

Thank Steve. you, Great.

of line question the is Research. Wolfe next Mathivanan Deepak from Your with

open. is line Your

for taking thanks guys, the question. Hey

specifically, a and share now? So that luxury Any on on color for would color is you of in growth recent the had categories. there growth you now, and are us watches first, some focus sneakers these seeing understand enhancements great. can where gains macro categories you've but those experience the I while sustained categories some give additional volatile, be user in

unpack how magnitude quarterly EPS cadence we you XXXX for it can of then, about Steve, Clearly, guide fair well? proxy cadence little a recognize also EPS for and uncertainties. But bit? think as should seasonality And buybacks is this And of we a the a maybe for on XXXX use year? the that there's lot as for to us

Yeah.

-- Deepak, take the So me first let one. hi,

look at seven So is The at our than focused about that It's plus really with yeah, we're faster pleased coverage, When what about quarter-over-quarter categories. rest X% the you think points at of look business. it if with to growing seeing basis. we're we're the on XX% platform. across way you whole a the

we've markets If making you three at so our progress been big it's XX% there. where focusing, look coverage, about nice

about just really and And driving there. not in our It's underlying growth it's existing are But investing coverage. the business in reinvestment categories new about pleased. we're also balancing that investing in

ago, but to talked call years we invest the launched rates the growth about over having of on two goods in manage XXXX. sneakers, which launched continuing We continue past we to invest shipping, we're in roughly We double-digit luxury years. with couple

largest say to the we're excited -- one by seeing market really which those that seeing P&A, are share in progress share which businesses, is I'd we So for return of really the P&A. is we're growth healthy. And market that and

UK with acquisition our the we're Guaranteed the On myFitment, doing Ride. associated car the and with My Pimp to we're were work marketing the actual talk in Fit fitment increasing the the the apps. and doing via doing product that with in in do new personalities available making from side, US, the catalog we're combined there, ability The further

going it's working. that after enthusiast really and buyer, we're really So

I'm take Steve, second performance categories. really part? the on maybe pleased the focus want with So to you

Yes.

not given very associated QX the as dynamic we've question point. because this macro you obviously at year directional Deepak, to I that And a environment, to gotten the with seasonality So had, GMV. mentioned uncertainty that still color the of a pertains earlier, guide With comprehensive regard guide. we've full

I how locate that's of that. sort so And would

flow. of step and XXX% that returns is just billion buybacks, out, of $X.X capital we XXXX, laid which returned through about cash we've free back, a thinking in Specifically taking dividends sort to shareholders

about event and thinking committed we between cash the the capital at laid remain XXXX to flow target investor free XXXX. you're As XXX% of returns, that we out

above So that. we're tracking sort of

And as to committed XXXX, about to needs of I be with going think capital business. terms continuing the to such share dilution to be balance is the of in while really our to priority offsetting count, start the

to sheet enable done key We environment invest in me, XX% from continues have advantage this fortress to the be the in continue a for competitive in to lent our But to to and in a $X.XX business. $X.XX. increase us dividend balance

how a about you thinking color gives little that hope XXXX. of bit I So we're about

question, can we Operator, last one do please?

question comes Mark from Evercore. with Mahaney final Your

Your line is open.

penetration This Thanks. of GMV. Two X.X% now ramp questions, please. to advertising continued

do and how third-party that a you As that data can points at rise maybe you've looked at sense penetration of have penetration you've verticals, within as overall? better looked high

And about lot spend little you a on of that. noise then marketing bit in up in deleverage secondly, a clear talk you're had your There's there. a model, and a the just confidence category focused step return there's just in the level that getting but good

that So that's just you? proof how you. actually Thank do you and at working out that for look the

Thanks, Yes. Mark.

about. like at feel we we sight side, which great have of still X%, ad said Investor line the on we Day, to So

to excited hitting there, million They for sellers. we're But at easier drive sellers we're making also we're performance, be the X and XX% the continues Listing our workhorse it of look by once again million you products. and new XXX Standard continuing If additional Promoted to listings. the quarter-over-quarter and product, grew penetration

I working we're just talked you the to launched program which which actually easier the in we Setup, And agency access, use and campaigns. to ad on flexibility your multi-user it then an come to help makes things Quick much more ad program. about manage which into enables like bring

great and there, over seeing. growing XX-plus what So feel potential the percent volume about I we're

side, happy really category been with marketing of the focused performance the the On spend.

really categories. harder. If about lower and leverage a the to same it's to being enthusiast in funnel to we've it's across more that's it, more overall time, our full at then really But them the bring us driving allowing And buyers shifted multiple and doing model kind platform, optimization you the of work allowing from think buyers funnel. little bit spend into

but about spend think like $XXX they sneaker in in come will if you So products $X,XXX other a in handbag and other $X,XXX, buyer categories. they'll buy buyer, elsewhere. sneakers, $X,XXX then then buy A in buy will but

look the value right you return offer the spend. longer it's on So change I at think, right return in unique proposition consideration we usually seeing the and a full think absolute on funnel the spend, have when We're at has driving, but marketing really we we're eBay. it, that to

tailored you're So, really of like in just because going those the continue we performance funnel specific marketing to done the we've right we're to with to full approach, see, parts, what seeing. enthusiasts like

Jamie. you, Thank

Thanks.

Ladies concludes This and for participating. you call. thank conference today's gentlemen,

now may You disconnect.