eBay Inc.

eBay IPO

eBay was founded by Pierre Omidyar in September 1995 and its initial public offering (IPO) took place on September 21, 1998. The company went public on the NASDAQ stock exchange under the ticker symbol “EBAY.” The IPO was a significant milestone for eBay, as it provided the necessary capital to expand its operations and solidify its position as a leading online marketplace.

eBay IPO Prospectus

A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find eBay’s Prospectus here.

Company Overview & History

eBay is a multinational e-commerce corporation based in San Jose, California. The company operates an online platform that connects millions of buyers and sellers worldwide. eBay’s mission is to provide a global marketplace where individuals and businesses can buy and sell a wide range of products and services.

Since its inception, eBay has experienced remarkable growth and has become one of the world’s largest online marketplaces. The company started as a platform for online auctions, allowing people to buy and sell items through bidding. Over time, eBay expanded its services to include fixed-price sales and introduced various features to enhance the user experience.

eBay has also made strategic acquisitions to expand its reach and diversify its business. One notable acquisition was the purchase of PayPal in 2002, a leading online payment platform. However, eBay and PayPal split into separate companies in 2015, with PayPal becoming an independent entity.

Financial Performance

Year	Revenue($B)	Net Income($B)	EBITDA($B)	Operational Cash Flow($B)
2022	10.27	0.54	2.5	3.2
2021	10.27	0.59	2.5	3.2
2020	10.27	0.54	2.5	3.2
2019	10.8	1.79	2.8	3.1
2018	10.75	2.53	2.3	2.7
2017	9.57	-1.01	2.6	2.6
2016	8.98	7.27	2.3	2.5
2015	8.59	1.83	2.4	2.8
2014	17.94	0.67	3.1	3.8
2013	16.05	2.86	3.2	3.9
2012	14.07	2.61	3.1	3.8
2011	11.65	3.23	2.7	3.2
2010	9.16	1.8	2.4	2.8
2009	8.73	2.39	2.4	2.8
2008	8.54	1.78	2.3	2.7
2007	7.67	0.35	2.1	2.5
2006	6.0	0.35	1.4	1.7
2005	4.55	0.1	1.0	1.2
2004	3.27	0.14	0.8	0.9
2003	2.17	0.25	0.5	0.6
2002	1.21	0.1	0.2	0.3
2001	0.74	0.05	0.1	0.1
2000	0.43	0.05	0.1	0.1
1999	0.22	0.02	0.0	0.0
1998	0.05	0.0	0.0	0.0

Business Model

eBay operates on a unique business model that enables individuals and businesses to sell products and services to a global customer base. The company provides an online platform that facilitates transactions between buyers and sellers. Sellers can list their items for sale, while buyers can browse and purchase products through various formats, including auctions and fixed-price listings.

eBay generates revenue primarily through transaction fees, listing fees, and advertising. Sellers pay fees for listing their items and a percentage of the final transaction value. Additionally, eBay offers various optional services and tools for sellers to enhance their listings and reach a wider audience, which further contributes to the company’s revenue stream.

To ensure a safe and trustworthy marketplace, eBay implements buyer and seller protection programs and enforces policies to prevent fraud and maintain user trust. The company also invests in technology and innovation to improve its platform, enhance the user experience, and provide value-added services to its customers.

Market Cap Over the Years

Year	Market Cap($B)
2022	41.5
2021	38.7
2020	34.2
2019	30.1
2018	28.5
2017	27.4
2016	25.9
2015	34.2
2014	70.0
2013	67.8
2012	68.3
2011	43.9
2010	39.3
2009	29.7
2008	25.7
2007	38.6
2006	45.6
2005	52.5
2004	52.8
2003	29.8
2002	14.9
2001	8.7
2000	17.6
1999	3.8
1998	0.7

Risk Factors

Like any company operating in the dynamic e-commerce industry, eBay faces certain risk factors that could impact its business and financial performance. These risks include:

• Intense competition: eBay operates in a highly competitive market with several established e-commerce players and emerging startups. Competitors with innovative business models or significant market share could pose a threat to eBay’s growth.

• Technological advancements: Rapid technological changes could impact the way people buy and sell products online. eBay needs to continuously adapt and invest in technology to remain competitive and meet evolving customer expectations.

• Cybersecurity threats: As an online platform, eBay faces the risk of cyberattacks and data breaches. Protecting customer data and maintaining a secure environment is crucial to maintain user trust and prevent potential legal and financial consequences.

• Economic conditions: Economic downturns or fluctuations in consumer spending can affect e-commerce businesses, including eBay. Changes in global economic conditions may impact consumer behavior and purchasing patterns, which could impact the company’s revenue.

• Regulatory and legal challenges: eBay operates in multiple jurisdictions and must comply with various laws and regulations. Changes in regulations or legal challenges related to e-commerce, intellectual property, taxation, or data protection could affect the company’s operations and profitability.

It’s important to note that these risk factors are not exhaustive and may evolve over time. eBay actively monitors and manages these risks to mitigate their potential impact on the company.

Market Opportunity

eBay operates in the vast and ever-growing e-commerce market, which presents significant opportunities for expansion and growth. The increasing adoption of online shopping, the proliferation of mobile devices, and the globalization of trade contribute to the favorable market conditions for eBay.

The company has a global presence, serving customers in over 190 countries. This expansive reach enables eBay to connect buyers and sellers worldwide, providing a platform for cross-border trade. As more people gain access to the internet and embrace online shopping, eBay has the opportunity to tap into new customer segments and expand its market share.

Additionally, eBay benefits from the growing trend of consumer-to-consumer (C2C) e-commerce. The platform allows individuals to sell items they no longer need, creating a sustainable and cost-effective way to monetize assets. eBay’s C2C model aligns with the increasing interest in sustainability and the circular economy, presenting an opportunity to attract environmentally-conscious consumers.

Furthermore, the rise of e-commerce has opened doors for niche markets and specialized product categories. eBay can leverage its platform to cater to specific consumer needs and interests, fostering a vibrant community of buyers and sellers within various niches.

Overall, eBay is well-positioned to capitalize on the expanding e-commerce market and leverage its strengths to drive sustainable growth and maintain its competitive edge.

Competitors

• Alibaba
• Walmart
• Amazon
• Rakuten
• Etsy
• MercadoLibre
• Flipkart
• JD.com

Key/Fun Company Facts

• eBay was originally called “AuctionWeb” when it was first launched by Pierre Omidyar. The name was later changed to “eBay” in 1997.
• The first item ever sold on eBay was a broken laser pointer for $14.83. It was purchased by a collector who found it interesting despite being broken.
• eBay’s most expensive sale to date is a yacht named “Tian,” which sold for $168 million in 2006.
• In 2020, eBay celebrated its 25th anniversary since its founding.
• The eBay logo features different colors in each letter, representing the diverse range of products and people on the platform.