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.

Income Statement

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.

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eBay Inc., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 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 income
Interest expense
Gains on investments and sale of business
Other
Interest and other, net
Income from continuing operations 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-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

The analysis of the annual financial data reveals several noteworthy trends and patterns over the five-year period ending in 2018.

Net Revenues
Net revenues show an initial sharp decline from 17,902 million USD in 2014 to 8,592 million USD in 2015. Subsequently, revenues gradually increased year-over-year, reaching 10,746 million USD in 2018, indicating recovery and growth after the initial drop.
Cost of Net Revenues and Gross Profit
Cost of net revenues decreased significantly from -5,732 million USD in 2014 to -1,771 million USD in 2015. This cost then increased slightly over the following years to -2,382 million USD in 2018. Correspondingly, gross profit followed the revenue pattern with a steep decline in 2015 to 6,821 million USD from 12,170 million USD in 2014, followed by gradual improvement to 8,364 million USD by 2018, reflecting improved operational efficiency in terms of margin as costs grew more slowly than revenues.
Operating Expenses
Operating expenses steadily declined from -8,656 million USD in 2014 to -4,624 million USD in 2015, remaining relatively stable around this level in 2016 and 2017, before increasing to -6,142 million USD in 2018. Among components, sales and marketing expenses decreased sharply initially but showed a resurgence to -3,391 million USD by 2018, suggesting increased investment in market outreach. Product development and general administrative expenses trended downward initially, with slight increases towards 2018, indicating a balancing of cost control and strategic investments.
Income from Operations
Income from operations declined significantly from 3,514 million USD in 2014 to 2,197 million USD in 2015. It then exhibited a modest increase during 2016 and 2017, stabilizing around 2,200 million USD by 2018. This overall trend mirrors gross profit performance tempered by oscillations in operating expenses.
Interest and Other Income/Expenses
Interest income remained relatively stable, with a slight upward trend from 133 million USD in 2014 to 176 million USD in 2018. Interest expense progressively increased from -123 million USD in 2014 to -326 million USD in 2018, indicating rising financing costs. Gains on investments and sale of business showed volatility, initially absent in 2014, peaking at 1,343 million USD in 2016, and declining thereafter but with spikes in 2018 (663 million USD). Other interest and net items showed irregular changes, impacting overall net financial income variably.
Income Before Taxes and Tax Provision
Income from continuing operations before income taxes decreased from 3,531 million USD in 2014 to 2,276 million USD in 2017, with a recovery to 2,718 million USD in 2018. The income tax provision demonstrated significant volatility, showing substantial negative provisions in 2014 and 2017 (-3,485 million USD and -3,288 million USD respectively), but turning positive in 2016 (3,634 million USD), greatly affecting net results.
Net Income
Net income reflected large fluctuations. It dropped steeply from 46 million USD in 2014 to a loss of -1,016 million USD in 2017, with exceptional spikes to 7,266 million USD in 2016 and a positive rebound to 2,530 million USD in 2018. These swings appear to be influenced heavily by changes in income tax provisions and gains on investments.
Discontinued Operations
Losses from discontinued operations were recorded in 2015 and 2016, but these were relatively minor compared to overall net income fluctuations, with nominal values close to zero from 2017 onward.

In summary, the financial data indicate a period of major restructuring or business changes around 2014-2015, reflected in significant reductions in revenues, costs, and operating expenses. Subsequent years show recovery with gradual growth in revenues and profits. The notable volatility in net income seems tied to fluctuating tax provisions and investment gains, underscoring the influence of non-operational factors on profitability during the period.