|Wed Mar 11 2009 16:09:10|
eBay Analyst Day Notes, Part 3
By: Ina Steiner
Bob Swan will dimensionize everything for you. Joined in 2006, had an impact on eBay. Focus on capital discipline. He guards our capital very closely. Brings cost focus to the company. Enable us to go after opportunity.
Will talk about a quick recap, little bit about bus model, secondly what you can expect in the future - our assumptions and #s are if global economy returns to some sense of normalcy in 2010 & 11
We play in big markets, early stages of their development. We have 3 of biggest brands on the web.
Marketplace: leading player today in ecommerce. PayPal. Skype. We believe a powerful portfolio of bus in a relatively attractive markets. Proven business model.
Naturual synergies between eBay and PayPal. One makes the other better. Flexibility to deply captial on acquisitions to make us stronger
M&A: Geographic strengthening. Extend formats & products by leverage large user base. New technologies. (Gave examples of acquisitions.)
While full year (2008) performance relatively okay was truly a tale of two halves. 2nd half flat. We said in January, 2009 will be challenging. (talked about some of those challenges in financial speak)
We're pretty confident we're taking right steps to position our portfolio of businesses in the future. Recipe to win:
1) Capitalize on PayPal's potential. (We're only beg. to win in Merchant Services game. PayPal on eBay - more merchants get us more consumers gets us more merchants. Focused on its enormous potential.)
2) Transition eBay platform for today's consumer multi format. (FP format - doubled in last 2.5 years, now $22 billion format. will continue to grow by double digits. Complementary formats - essentially did not exist in our portfolio 4 years ago. Advertising & Classifieds - in relatively early days, will double over next years. Auction format - $23 Billion in GMV, $2 billion in revenue, auction format has been declining. We expect auction bus to decline over next several years. Marketplaces going through transition. Will be smaller in 2009 than in 2008. Will get back to growth rates in 2010, 2011.)
3) Enable Skype to make it all it can be. (Generated 0 revenues in 2003. Expect well over 1 billion in 2011. More active users, more minutes, more monetization; more devices; not just in the home or on the road, but in work environment. Will double over next 3 years.)
4) Operate smarter
PayPal will be single biggest contributor to growth going forward. Will grow portfolio 20 - 40 percent, but we have to make some investments. We need to operate smarter to fund those investments. To make portfolio all we think it can be. Can save $2 Billion. Job cuts ("simplifying"), customer support, lower payment processing costs
We have a great portfolio, ... attractive business models, summary slide.