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eBay Inc. (EBAY)
Q2 2009 Earnings Call
July 22, 2009 5:00 pm ET
Mark Rowen - Vice President, Investor Relations
John J. Donahoe - President, Chief Executive Officer, Director
Robert H. Swan - Chief Financial Officer, Senior Vice President - Finance
Christa Quarles - Thomas Weisel Partners
Jeffrey Lindsay - Sanford C. Bernstein
Benjamin Schachter - Broadpoint Amtech
Imran Khan - J.P. Morgan
Scott Devitt - Stifel Nicolaus
Mark Mahaney - Citi
James Mitchell - Goldman Sachs
Douglas Anmuth - Barclays Capital
Justin Post - Merrill Lynch
Steve Weinstein - Pacific Crest Securities
Previous Statements by EBAY
» eBay Q3 2009 Earnings Call Transcript
» eBay Inc. Q1 2009 Earnings Call Transcript
» eBay Inc. Q4 2008 Earnings Call Transcript
Thank you, Operator. Good afternoon. Thank you for joining us and welcome to eBay's earnings release conference call for the second quarter of 2009. Joining me on today’s call are John Donahoe, our President and Chief Executive Officer; and Bob Swan, our Chief Financial Officer.
We are providing a slide presentation to accompany Bob’s commentary during the call.
This conference call is also being broadcast on the Internet and both the presentation and call are available through the investor relations section of the eBay website at investor.ebay.com.
Before we begin, I’d like to remind you that during the course of this conference call we will discuss some non-GAAP measures in talking about our company’s performance. You can find the reconciliation of those measures to the nearest comparable GAAP measures in the slide presentation accompanying this conference call.
In addition, management may make forward-looking statements relating to our future performance that are based on our current expectations, forecasts, and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding expected financial results for the third quarter of 2009 and anticipated future stability and growth in the marketplace’s business unit.
Our actual results may differ materially from those discussed in this call for a variety of reasons, including but not limited to the impact of recent global economic events and the global economic downturn, foreign exchange rate fluctuations, changes in political, business, and economic conditions, the impact and integration of recent and future acquisitions, our increasing need to grow revenues from existing users in established markets; an increasingly competitive environment for our businesses; the complexity of managing an increasingly large enterprise with a broad range of businesses; our need to manage regulatory tax, IP and litigation risks, including risks specific to PayPal, Bill Me Later, and the financial industry and risks specific to Skype's technology and to the VOIP industry; and our need to upgrade our technology and customer service infrastructure at reasonable costs while adding new features and maintaining site stability.
You can find more information about factors that could affect our operating results in our most recent annual report on Form 10-K and our subsequent quarterly reports on Form 10-Q, available at investor.ebay.com. You should not unduly rely on any forward-looking statements and we assume no obligation to update them.
All information in the presentation is as of July 22, 2009 and we do not intend nor undertake no duty to update this presentation.
And now, I’ll turn the call over to John.
John J. Donahoe
Thank you, Mark and good afternoon, everybody, and welcome to our Q2 earnings call. Our second quarter results were solid. Revenue was almost $2.1 billion with organic growth up slightly over the prior year. Non-GAAP EPS was $0.37.
We’ve executed well and we’ve executed aggressively in the second quarter. We are focused on improving experiences for our buyers and sellers and strengthening our company. PayPal continues to gain share, driving penetration on eBay and rapidly adding new merchants across e-commerce. And our core marketplaces business is stabilizing with the economy as we execute against our turnaround priorities.
PayPal, eBay's fixed price format, classifieds, and stub hub all continue to outpace e-commerce growth rates. We are moving in the right direction -- a strong company getting stronger.
We are managing our business with discipline, focus, and accountability to meet today’s challenging environment.
However, for a strong company such as ours, these are not times to be timid. In this current economic cycle, decisions we make today will determine leadership tomorrow and we intend to lead.
We are leveraging our cash flow and our focus on operational excellence to make smart investments in our core e-commerce and online payments businesses. And we are taking the necessary actions and bold steps required to win.
Now we still have a lot of work to do to achieve our three-year growth targets but I am pleased with our pace, our progress, and our performance.
Before I comment on our Q2 results, let me remind you of the three-year growth goals that we outlined earlier this year. We intend to approximately double PayPal by 2011 and we believe PayPal is well-positioned to become the leader in global online payments.
Tomorrow PayPal will announce plans to become the first and only global payments platform open to third-party developers. This is a significant step, one which we expect will drive further acceptance of PayPal and will fuel payments innovation beyond e-commerce.
In our e-commerce business, we are steadily improving trust, value and selection, and transforming the user experience on eBay. We are also growing other formats, such as classifieds and stub hub and we are strengthening our e-commerce portfolio with acquisitions such as G-market in Korea, which we completed in Q2.