eBay Inc. (NASDAQ:EBAY) Q4 2014 Earnings Conference Call - Final Transcript

Jan 21, 2015 • 05:00 pm ET


eBay Inc. (NASDAQ:EBAY) Q4 2014 Earnings Conference Call - Final Transcript


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Q & A
John J. Donahoe

great deals, so we're growing our Deals business. We're growing the $2 billion deals business and putting less emphasis on adding more full-priced inventory on the site. On delivery, our core consumer wants free delivery or they want to buy online and pick it up in store so they don't pay for delivery and they get to shop. And we're spending less on same-day delivery, which is really something that's geared toward the convenience user. Similarly, on trust, our core consumer likes eBay buyer guarantee. That's what they like and there's some other trust initiatives that have less value.

So it's really a re-prioritization on the more specific focused things that our core consumer represent, and we want to grow our $80 billion marketplace into the $4 trillion opportunity.


Paul Vogel, Barclays.

Paul A. Vogel

Two quick questions. One, of the 7% reduction in force. Just any breakdown by division where those cuts are coming from? And then just the second question, on the

Unidentified Participant

SEO issues that keep -- that have (inaudible) marketplaces for a while now, just any additional color on sort of what's taking so long to fix that and sort of how you're going about fixing that problem so it gets better going forward?

Unidentified Speaker

First, just on the workforce reductions, at this stage all I would say is that 2,400 positions will be eliminated. That will be a little bit higher on the marketplace side and a little bit lower on the PayPal side. And the reasons and rationale differ a little bit by business, where Devin -- John highlighted, where Devin is more focused and therefore he's aligning his cost structure to be more focused.

I think as Dan sees the opportunities in PayPal and the need to accelerate the rate of innovation, he thinks there's opportunities to simplify the structure that exists. So the reasons they're a little bit different by business, in the aggregate, that's roughly 7%. And at this stage, all I would say is a little bit higher on the marketplace side and a little bit lower on PayPal side.

John J. Donahoe

And Paul, the SEO, it -- the foundation of the issue is what I talked about last quarter, which is Google's SEO is most tuned to what retailers have, which I would call structured data and use of product catalogs. And eBay is kind of a unique beast. We have the world's largest collection of unstructured data. And our listings, by the very nature of the marketplace, turn over every 7 to 14 days.

And so it's always been a struggle for us to get that to work sustainably and effectively in Google's SEO. And we have the sort of repeated pattern where every a couple of years, there's a rule change that impacts our business. So Devin and team have set out to fix this the right way, which involves us in essence creating our own product catalog and creating it in a way so that it has more sustainable performance in SEO and