Income Statement
Quarterly Data
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
eBay Inc., consolidated income statement (quarterly data)
US$ in millions
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 financial performance from early 2014 through late 2019 reveals a significant structural shift in revenue generation and high volatility in net income resulting from non-operating items.
- Revenue and Gross Profit Trends
- Net revenues experienced a sharp contraction between the fourth quarter of 2014 and the first quarter of 2015, dropping from US$ 4,921 million to US$ 2,061 million. Following this adjustment, a consistent upward trajectory is observed, with revenues growing from approximately US$ 2.1 billion in early 2015 to US$ 2.6 billion by the third quarter of 2019. Gross profit margins remained relatively stable throughout this period, with the cost of net revenues consistently representing approximately 23% to 25% of total net revenues.
- Operating Expense Dynamics
- Operating expenses exhibited a general increase between 2015 and 2019. Sales and marketing expenses showed the most significant growth, rising from a range of US$ 500 million to US$ 600 million per quarter in 2015 to peaks of over US$ 900 million by late 2018. Product development costs also trended upward, moving from approximately US$ 230 million per quarter in 2015 to over US$ 300 million by 2019. General and administrative expenses remained more stable, although a spike was noted in the second quarter of 2018.
- Operating Income Performance
- Income from operations demonstrates a degree of stability relative to the bottom line, generally fluctuating between US$ 400 million and US$ 700 million per quarter from 2015 onward. Despite the increase in operating expenses, the growth in net revenues provided a partial offset, though operating income in the third quarter of 2019 (US$ 532 million) remained lower than the peaks seen in 2014.
- Net Income Volatility and Non-Operating Items
- Net income is characterized by extreme volatility that does not align with operating performance. Significant anomalies are observed in the tax provision and other income categories. For instance, a massive net loss of US$ 2.3 billion was recorded in the first quarter of 2014, and another loss of US$ 2.6 billion occurred in the fourth quarter of 2017, both driven by substantial income tax provisions. Conversely, the fourth quarter of 2016 showed a net income spike to US$ 5.9 billion, resulting from a combination of US$ 1.36 billion in other income and a US$ 3.94 billion tax benefit.
- Discontinued Operations
- Impacts from discontinued operations were most prominent in 2015, specifically a loss of US$ 347 million in the second quarter. In subsequent years, the contribution from discontinued operations became negligible, often fluctuating near zero.
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