eBay Inc. (NASDAQ:EBAY) Q4 2019 Earnings Conference Call - Final Transcript

Jan 28, 2020 • 05:00 pm ET


eBay Inc. (NASDAQ:EBAY) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the eBay Q4 2019 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today Joe Billante, Vice President of Investor Relations. Thank you. Please go ahead.

Joe Billante

Good afternoon. Thank you for joining us, and welcome to eBay's earnings release conference call for the fourth quarter of 2019. Joining me today on the call are Scott Schenkel, our Interim Chief Executive Officer and Andy Cring, our Interim Chief Financial Officer.

We're providing a slide presentation to accompany Andy's commentary during the call, which is available through the Investor Relations section of the eBay website at investors.ebayinc.com.

Before we begin, I'd like to remind you that during the course of this conference call, we will discuss some non-GAAP measures related to our performance. You can find the reconciliation of these measures to the nearest comparable GAAP measures in the slide presentation accompanying this conference call. Additionally, all revenue and GMV growth rates mentioned in Scott and Andy's remarks represent FX-neutral year-over-year comparisons, unless they indicate otherwise.

In this conference call management will make forward-looking statements including without limitation, statements regarding our future performance and expected financial results. These forward-looking statements involve known and unknown risks and uncertainties and our actual results may differ materially from our forecast for a variety of reasons. You can find more information about risks, uncertainties and other factors that could affect our operating results in our most recent periodic reports on Form 10-K and Form 10-Q and our earnings release from earlier today. You should not rely on any forward-looking statements. All information in this presentation is as of January 28, 2020 and we do not intend and undertake no duty to update this information.

With that, let me turn the call over to Scott.

Scott Schenkel

Thanks, Joe. Good afternoon, everyone. As I mentioned last quarter, our focus was to deliver our Q4 and full-year commitments, execute on our growth initiatives of managed payments and advertising, improve the buyer experience and seller capabilities and make progress on our portfolio and operational reviews. For '20 and beyond, we would assess how to deliver for our buyers and sellers while ensuring focus -- we focus investments to serve our customers and shareholders.

Let me walk you through each of these in more detail. Specific to our Q4 commitments, volume was in line with our expectations, down 4%, while organic revenue was at the high end of our guide, up 1%. Margin was strong at over 29%, inclusive of our ongoing investment in managed payments. Non-GAAP EPS was $0.81, up 15%, substantially better than expected. In addition, we reached a deal to sell StubHub to viagogo for $4.05 billion, while following a disciplined process that led to a favorable valuation.

For the full year 2019, GMV was down 2%, while organic revenue growth was