Stock Analysis on Net
Stock Analysis on Net

eBay Inc. (NASDAQ:EBAY)

$22.49

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

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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
Cost of net revenues
Gross profit
Sales and marketing
Product development
General and administrative
Provision for transaction losses
Amortization of acquired intangible assets
Operating expenses
Income from operations
Interest and other, net
Income before income taxes
Income tax (provision) benefit
Income (loss) from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net income (loss)

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).

Gross Profit and Cost of Net Revenues
The gross profit margin consistently represented a strong majority of net revenues, fluctuating between approximately 67.5% and 80.1% over the observed quarters. Notably, there was a significant jump in gross margin around March to December 2015, ranging near 80%, followed by a general decline stabilizing in the high 70% range thereafter. Correspondingly, the cost of net revenues decreased sharply in early 2015 to roughly 20%, from around 32% in 2014, indicating improved efficiency or cost control, before rising gradually to approximately 23-24% in later periods.
Operating Expenses
Operating expenses as a share of net revenues exhibited variability but generally occupied a substantial portion, averaging between 45.9% and 62% throughout the analysis period. Sales and marketing expenses increased notably from about 19%-21% in 2014 to levels often exceeding 30% by 2018, suggesting intensified investment in customer acquisition or brand promotion. Product development spending remained relatively stable, typically around 10-13%, though with a slight dip toward the end of 2018. General and administrative expenses oscillated mostly between 9% and 14%, with peaks in mid-2017 and mid-2018 indicating periodic fluctuations in corporate overhead. The combined effect of these expenses resulted in total operating expenses consistently absorbing over 45% of revenues, with higher peaks correlating with elevated sales and marketing activity.
Income from Operations
Income from operations demonstrated moderately variable margins, generally ranging between 15% and 28%. The highest operation income margins occurred in late 2015 and late 2016, reaching near 28%, coinciding with periods of lower operating expense ratios. Conversely, sharper increases in operating expenses in 2018 coincided with lower operating margins, dropping to near 15%, indicating pressure on operational profitability during those times.
Non-Operating Items and Income Taxes
Interest and other net items displayed high volatility, with anomalous spikes in late 2016 (up to 57%) and notable negative values in other quarters, suggesting irregular or one-time financial events influencing profitability. Income tax provisions varied widely, exhibiting some periods with substantial negative values (indicative of benefits) and others with positive expense impacts. This volatility affected net income stability, with some quarters showing extraordinarily high tax benefits or expenses, impacting the effective tax rate considerably.
Net Income and Income from Continuing Operations
Net income margins displayed large fluctuations with a general positive trend after early losses. Early 2014 showed a significant negative result (-54.58%), followed by a recovery to positive territory in subsequent quarters. Notably, the company experienced exceptional spikes in net income in late 2016 (close to 248%) and late 2017 (around -99%), likely due to extraordinary items or tax events. Excluding such anomalies, net income remained mostly positive, fluctuating between approximately 11% and 30%, with some quarters dipping slightly below 15%. Income from continuing operations mirrored this pattern closely, suggesting that most income volatility originated from ongoing business activities rather than discontinued operations.
Other Observations
Discontinued operations were generally minimal and sporadic, with minor impacts on overall profitability. The data indicates variable cost management effectiveness and strategic investment cycles, particularly in marketing and administrative functions, that influenced profitability dynamics. Overall profitability tended to improve from 2014 through 2019, albeit with significant quarter-to-quarter variability attributed to operating expenses, non-operating impacts, and tax effects.