Stock Analysis on Net
AI Tokens
Stock Analysis on Net

eBay Inc. (NASDAQ:EBAY)

This company has been moved to the archive! The financial data has not been updated since October 24, 2019.

Common-Size Income Statement
Quarterly Data

eBay Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Net revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of net revenues -23.67 -23.45 -22.74 -21.48 -22.95 -22.61 -21.67 -22.58 -23.08 -24.10 -23.23 -22.51 -22.46 -22.11 -22.32 -21.23 -20.63 -20.57 -19.94 -32.51 -31.91 -31.88 -31.70
Gross profit 76.33% 76.55% 77.26% 78.52% 77.05% 77.39% 78.33% 77.42% 76.92% 75.90% 76.77% 77.49% 77.54% 77.89% 77.68% 78.77% 79.37% 79.43% 80.06% 67.49% 68.09% 68.12% 68.30%
Sales and marketing -30.43 -30.41 -28.07 -32.85 -32.16 -31.74 -29.30 -26.37 -26.03 -27.36 -25.35 -25.39 -27.06 -27.89 -25.18 -25.62 -26.92 -27.87 -25.18 -19.20 -21.20 -20.93 -18.89
Product development -11.82 -11.98 -11.24 -10.15 -11.59 -13.33 -12.95 -12.13 -13.12 -13.45 -12.54 -12.19 -12.99 -13.23 -11.18 -9.86 -11.48 -11.00 -10.72 -10.34 -11.74 -11.45 -11.26
General and administrative -10.68 -10.20 -11.69 -8.52 -9.36 -13.94 -10.47 -10.14 -10.54 -11.47 -11.05 -10.40 -10.10 -9.78 -9.78 -11.20 -9.86 -16.73 -14.65 -9.65 -10.15 -10.56 -10.91
Provision for transaction losses -2.87 -2.64 -2.72 -2.88 -2.45 -2.50 -2.79 -3.02 -2.82 -2.71 -2.80 -2.46 -2.53 -2.87 -2.43 -3.10 -3.10 -3.08 -3.35 -5.55 -5.72 -5.31 -4.79
Amortization of acquired intangible assets -0.45 -0.45 -0.49 -0.45 -0.49 -0.49 -0.39 -0.38 -0.42 -0.39 -0.41 -0.42 -0.41 -0.31 -0.37 -0.47 -0.48 -0.47 -0.49 -1.18 -1.33 -1.67 -1.85
Operating expenses -56.25% -55.68% -54.22% -54.85% -56.06% -62.01% -55.89% -52.05% -52.93% -55.37% -52.14% -50.86% -53.09% -54.08% -48.95% -50.26% -51.83% -59.15% -54.39% -45.93% -50.15% -49.93% -47.70%
Income from operations 20.08% 20.88% 23.04% 23.67% 20.99% 15.38% 22.44% 25.37% 23.99% 20.53% 24.63% 26.64% 24.45% 23.81% 28.73% 28.51% 27.54% 20.28% 25.67% 21.56% 17.94% 18.19% 20.60%
Interest and other, net -5.36 -1.90 2.42 -5.74 14.80 11.40 -1.24 -3.90 4.94 -0.77 0.54 57.04 -0.41 -0.36 -1.08 -0.52 4.14 5.88 0.49 -0.14 0.46 0.21 -0.12
Income before income taxes 14.72% 18.98% 25.46% 17.94% 35.79% 26.78% 21.20% 21.47% 28.93% 19.76% 25.17% 83.67% 24.04% 23.45% 27.66% 27.99% 31.68% 26.16% 26.15% 21.42% 18.40% 18.39% 20.48%
Income tax (provision) benefit -3.02 -3.98 -5.75 8.59 -8.61 -2.61 -5.43 -120.86 -7.22 -18.60 21.52 164.68 -5.19 -3.86 -5.10 -5.47 -5.72 -5.78 -4.37 -0.63 -2.94 -2.91 -75.06
Income (loss) from continuing operations 11.70% 15.00% 19.71% 26.52% 27.18% 24.17% 15.78% -99.39% 21.71% 1.16% 46.68% 248.35% 18.85% 19.60% 22.55% 22.52% 25.96% 20.38% 21.79% 20.79% 15.46% 15.48% -54.58%
Income (loss) from discontinued operations, net of income taxes 0.00 -0.04 -0.11 -0.10 0.04 0.15 0.00 -0.15 0.00 0.00 0.00 -0.50 -0.23 -0.09 0.00 -1.98 -0.29 -16.45 8.59 0.00 0.00 0.00 0.00
Net income (loss) 11.70% 14.96% 19.60% 26.42% 27.22% 24.32% 15.78% -99.54% 21.71% 1.16% 46.68% 247.85% 18.63% 19.51% 22.55% 20.54% 25.68% 3.93% 30.37% 20.79% 15.46% 15.48% -54.58%

Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).

An analysis of the common-size income statement reveals a significant structural shift in cost management and a steady increase in operating expenditures over the period from 2014 to 2019. The most prominent transition occurred between late 2014 and early 2015, where the cost of net revenues decreased substantially, leading to a permanent expansion of the gross profit margin.

Gross Margin Performance
Gross profit margins improved from approximately 68% in 2014 to a range between 76% and 80% starting in 2015. This was driven by a reduction in the cost of net revenues, which fell from an average of 32% of net revenues in 2014 to approximately 22% for the remainder of the period. This suggests a significant optimization of the direct cost structure or a change in the revenue mix.
Operating Expense Trends
Total operating expenses exhibited an upward trend, rising from roughly 46% to 50% of revenue in 2014 to between 54% and 62% by 2019. This increase is primarily attributed to Sales and Marketing expenses, which grew from approximately 20% of revenue in 2014 to over 30% by 2019. Product development and general and administrative expenses remained relatively stable, with product development fluctuating between 10% and 13% and G&A generally holding around 10% to 11% of net revenues.
Operating Income Stability
Despite the rise in operating expenses, income from operations remained relatively resilient, generally fluctuating between 20% and 28% of net revenues. A notable contraction occurred in June 2018, where operating income dipped to 15.38%, coinciding with a peak in sales and marketing and general and administrative spending.
Non-Operating Volatility and Net Income
Net income exhibited extreme volatility due to non-operating items and tax provisions rather than core operational performance. A massive anomaly is observed on December 31, 2016, where net income surged to 247.85% of net revenues, driven by a substantial interest and other net gain (57.04%) and a significant income tax benefit (164.68%). Conversely, on December 31, 2017, a severe net loss of 99.54% of revenue was recorded, resulting from a large negative income tax provision of 120.86%.

In summary, the operational core of the business transitioned to a higher gross margin profile, which provided a buffer allowing for increased investment in sales and marketing. While operating profitability remained consistent, the bottom-line net income was heavily influenced by irregular tax events and non-operating gains or losses.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?