SAN JOSE, Calif., Feb. 13, 2020 /PRNewswire/ -- eBay Inc. (Nasdaq:
EBAY), a global commerce leader that connects millions of buyers
and sellers around the world, today announced that it has completed
the sale of StubHub to viagogo for $4.05
billion in cash.
"The completed sale of StubHub to viagogo is a great outcome
both in terms of the $4.05 billion
sale price and the potential StubHub has with its new owner," said
Scott Schenkel, interim CEO of eBay
Inc. "The StubHub transaction reinforces our commitment to creating
shareholder value and is consistent with other steps we have taken
such as margin improvement, share buybacks and issuing dividends.
We are operating with discipline and focus, improving financial
performance and delivering improved customer experiences. On behalf
of the eBay team, we're excited to see how StubHub evolves in its
next phase and benefits fans, partners and employees."
The completion of this transaction results in net proceeds of
$3.1 billion. With the divestiture of
StubHub complete, the Company is updating its capital allocation
plans as well as first quarter and full year guidance figures.
Capital allocation – eBay is expanding its share buyback plans
for 2020 from $1.5 billion to
$4.5 billion.
First quarter 2020 – The Company now expects net revenue between
$2.31 billion and $2.36 billion, reflecting the impact of removing
StubHub. The Company now expects GAAP earnings per diluted share
from continuing operations in the range of $0.54 - $0.57 and
non-GAAP earnings per diluted share from continuing operations in
the range of $0.72 - $0.75. The increase versus previous guidance
reflects the benefit of share buybacks and investment timing,
partially offset by the impact of removing StubHub.
Full year 2020 – The Company now expects net revenue between
$9.56 billion and $9.76 billion, reflecting the impact of removing
StubHub. The Company now expects GAAP earnings per diluted share
from continuing operations in the range of $2.20 - $2.30 and
non-GAAP earnings per diluted share from continuing operations in
the range of $3.00 - $3.10. The increase versus previous guidance
reflects the benefit of share buybacks, partially offset by the
impact of removing StubHub.
Please reference the 8-Ks eBay filed today for further
information.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader including
the Marketplace and Classifieds platforms. Collectively, we connect
millions of buyers and sellers around the world, empowering people
and creating opportunity for all. Founded in 1995 in San Jose, California, eBay is one of the
world's largest and most vibrant marketplaces for discovering great
value and unique selection. For more information about the company
and its global portfolio of online brands, visit
www.ebayinc.com.
Non-GAAP Financial Measures
This press release includes the financial measures defined as
"non-GAAP financial measures" by the Securities and Exchange
Commission (SEC), including non-GAAP earnings per diluted share.
These non-GAAP financial measures are presented on a continuing
operations basis. These measures may be different from non-GAAP
financial measures used by other companies. The presentation of
this financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered in isolation of, or as a substitute for,
the financial information prepared and presented in accordance with
generally accepted accounting principles (GAAP). For a
reconciliation of non-GAAP earnings per diluted share to the
nearest comparable GAAP measure, see "Business Outlook" included in
this press release.
Forward Looking Statements
This press release contains forward-looking statements that are
based on our current expectations, forecasts and assumptions and
involve risks and uncertainties. These include statements regarding
the future performance of eBay Inc. and its consolidated
subsidiaries, including expected financial results for the first
quarter and full year 2020 and eBay's expectations and plans
regarding future share repurchases. Actual results could differ
materially from those predicted or implied and reported results
should not be considered as an indication of future performance.
Other factors that could cause or contribute to such differences
include, but are not limited to: changes in political, business and
economic conditions, any regional or general economic downturn or
crisis and any conditions that affect ecommerce growth or
cross-border trade, including any public health crisis; the
company's ability to realize expected growth opportunities in
payments intermediation and advertising; the outcome of the
strategic portfolio review; fluctuations in foreign currency
exchange rates; the company's need to successfully react to the
increasing importance of mobile commerce and the increasing social
aspect of commerce; an increasingly competitive environment for its
business; changes to the company's capital allocation, including
the timing, declaration, amount and payment of any future dividends
or levels of the company's share repurchases, or management of
operating cash; the company's ability to increase operating
efficiency to drive margin improvements and enable reinvestments;
the company's ability to manage its indebtedness, including
managing exposure to interest rates and maintaining its credit
ratings; the company's need to manage an increasingly large
enterprise with a broad range of businesses of varying degrees of
maturity and in many different geographies; the ability to
successfully intermediate payments on the company's marketplace
platform; the company's need and ability to manage regulatory, tax,
data security and litigation risks; whether the operational,
marketing and strategic benefits of the separation of the eBay and
PayPal businesses can be achieved; the company's ability to timely
upgrade and develop its technology systems, infrastructure and
customer service capabilities at reasonable cost while maintaining
site stability and performance and adding new products and
features; and the company's ability to integrate, manage and grow
businesses that have been acquired or may be acquired in the
future.
The forward-looking statements in this release do not include
the potential impact of any acquisitions or divestitures that may
be announced and/or completed after the date hereof.
More information about factors that could affect the company's
operating results is included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the company's most recent Annual Report
on Form 10-K and subsequent quarterly reports on Form 10-Q, copies
of which may be obtained by visiting the company's Investor
Relations website at https://investors.ebayinc.com or the SEC's
website at www.sec.gov. Undue reliance should not be placed on the
forward-looking statements in this press release, which are based
on information available to the company on the date hereof. The
company assumes no obligation to update such statements.
eBay Inc.
Business Outlook
The guidance figures provided below and elsewhere in this
press release are forward-looking statements, reflect a number of
estimates, assumptions and other uncertainties, and are approximate
in nature because the company's future performance is difficult to
predict. Such guidance is based on information available on the
date of this press release, and the company assumes no obligation
to update it.
The company's future performance involves risks and
uncertainties, and the company's actual results could differ
materially from the information below and elsewhere in this press
release. Some of the factors that could affect the company's
operating results are set forth under the caption "Forward-Looking
Statements" above in this press release. More information about
factors that could affect the company's operating results is
included under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in its most recent annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q, copies of which may
be obtained by visiting eBay's investor relations website
at https://investors.ebayinc.com or the SEC's website
at www.sec.gov.
|
|
Three Months
Ending
|
|
|
|
March 31,
2020
|
|
(in billions, except
per share amounts)
|
|
GAAP
|
|
Non-GAAP
(a)
|
|
Net
Revenue
|
|
$2.31 -
$2.36
|
|
$2.31 -
$2.36
|
|
Diluted EPS from
continuing operations
|
|
$0.54 -
$0.57
|
|
$0.72 -
$0.75
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ending
|
|
|
|
December 31,
2020
|
|
(in billions, except
per share amounts)
|
|
GAAP
|
|
Non-GAAP
(b)
|
|
Net
Revenue
|
|
$9.56 -
$9.76
|
|
$9.56 -
$9.76
|
|
Diluted EPS from
continuing operations
|
|
$2.20 -
$2.30
|
|
$3.00 -
$3.10
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ending
|
|
(in
billions)
|
|
December 31,
2020
|
|
Net cash provided by
continuing operations (c)
|
|
$1.6 -
$2.0
|
|
Less: Purchase of
property and equipment, net
|
|
$(0.5) -
$(0.7)
|
|
Free cash
flow
|
|
$1.1 -
$1.3
|
|
|
|
|
|
(a)
|
Estimated non-GAAP
amounts above for the three months ending March 31, 2020 reflect
adjustments that exclude the estimated amortization of acquired
intangible assets of approximately $8-$13 million, estimated
stock-based compensation expense and associated employer payroll
tax expense of approximately $100-$110 million and an adjustment
that excludes the net deferred tax impact related to the step-up in
the tax basis of intangible assets of approximately $35-$45
million.
|
|
|
|
|
|
|
|
|
(b)
|
Estimated non-GAAP
amounts above for the twelve months ending December 31, 2020
reflect adjustments that exclude the estimated amortization of
acquired intangible assets of approximately $40-$50 million,
estimated stock-based compensation expense and associated employer
payroll tax expense of approximately $480-$500 million and an
adjustment that excludes the net deferred tax impact related to the
step-up in the tax basis of intangible assets of approximately
$140-$160 million.
|
|
|
|
|
|
|
|
|
(c)
|
Includes ~$1 billion
cash tax payment related to business divestiture.
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/ebay-completes-sale-of-stubhub-301004896.html
SOURCE eBay Inc.