eBay Analyst Day recap: eBay Inc. expects double-digit annual revenue and earnings growth over next 3 years

Richard Brewer-Hay

I was fortunate enough to sit in on my second eBay Inc. analyst day today (although anyone with a computer monitor and an Internet connection could have done so too by accessing the live webcast). The company projected double-digit annual revenue and earnings growth for 2011-2013, with revenues expected to reach at least$13 billion in 2013 compared to approximately $9 billion in 2010.


“New rules of retail are being written today,” said eBay Inc. President and CEO John Donahoe. “Online and offline commerce are changing and converging, and technology is dramatically influencing how consumers connect, shop and pay. We are at the forefront of shopping innovation. We believe we have core businesses, platforms and assets that strongly position us to compete, win and lead on a global scale. We are confident that we will lead the next generation of commerce.”



Based on current business trends and expectations, the company provided the following financial outlook for 2011-2013:

* Total company revenues are expected to reach $13 billion to $15 billion in 2013, up from $9.2 billion in 2010, led by continued innovation in both of the company’s core businesses.

* The company expects compound annual non-GAAP earnings growth of 10-14 percent.

* Free cash flow is anticipated to be between $7.5 billion and $8.5 billion and operating cash flow is expected to be between $10.0 billion and $11.3 billion over the three-year period from 2011-2013.

* PayPal is expected to significantly increase revenue to $6 billion to $7 billion in 2013, driven by consumer preferences, market expansion, and innovation in the areas of mobile, digital, social and local.

* The company’s eBay Marketplaces business is expected to achieve revenues of $7 billion to $8 billion in 2013, driven by technology-led innovation and tailored customer experiences that enable buyers and sellers to connect around the world.

Scott Thompson Presents

I’ll share more images and video as they become available. In the meantime, check out the more than 500 tweets coming out of the event by viewing the #eBayInc hashtag.