eBay 2001 Annual Report Download - page 28

Net Revenues
Percent Percent
1999 Change 2000 Change 2001
(in thousands, except percent changes)
Online net revenues:
TransactionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $179,895 94% $348,174 73% $602,671
Third-party advertising ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,030 541% 13,022 544% 83,853
End-to-end services and promotions ÏÏÏÏÏÏÏ 608 4,959% 30,756 (9)% 27,881
Total online net revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 182,533 115% $391,952 82% 714,405
ButterÑeldsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31,319 (6)% 29,405 (14)% 25,251
Kruse ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10,872 (7)% 10,067 (9)% 9,165
Total oÉine net revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 42,191 (6)% 39,472 (13)% 34,416
Total net revenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $224,724 92% $431,424 74% $748,821
U.S. net revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $222,130 81% $402,446 58% $634,659
International net revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,594 1,017% 28,978 294% 114,162
Total net revenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $224,724 92% $431,424 74% $748,821
Percent Percent
1999 Change 2000 Change 2001
(in millions, except percents and per listing amounts)
Supplemental Operating Data:
ConÑrmed registered users at end of year ÏÏ 10.0 125% 22.5 89% 42.4
Number of items listedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 129.6 104% 264.7 60% 423.1
Gross merchandise salesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 2,805 93% $ 5,422 72% $ 9,319
Our net revenues result from fees associated with our online and oÉine services. Online transaction
revenue is derived primarily from listing, feature and Ñnal value fees paid by sellers, as well as Ñnal value
fees paid by buyers for ""premium'' priced items. In addition, we receive online revenues from third-party
advertising and end-to-end services and promotions. Unlike our online auction transactions, third-party
advertising and end-to-end services and promotions revenues are highly concentrated among a few
customers and are subject to considerable uncertainty. See ""Risk Factors Ì Our revenue from third-party
advertising and end-to-end services and promotions is subject to factors beyond our control'' and
""Note 1 Ì The Company and Summary of SigniÑcant Accounting Policies, Revenue Recognition to the
Consolidated Financial Statements.'' OÉine revenue is derived from a variety of sources including seller
commissions, buyer premiums, bidder registration fees and auction-related services including appraisal and
authentication.
The successive year-over-year growth in net revenues from 1999 through 2001, was primarily the
result of increased online auction transaction activity, reÖected in the growth in the number of registered
users, listings and gross merchandise sales. Fee increases in the U.S. on January 31, 2001, and fee
increases in various other international locations, combined with the consolidation of revenues from our
acquisition of a majority ownership interest in Internet Auction in South Korea, also had a positive impact
on revenues for the year ended December 31, 2001. The revenue from our acquisitions of Internet Auction
in February 2001, and iBazar S.A. in May 2001, are consolidated and reÖected in our net revenues and
represent less than 3% of our net revenues during the period from acquisition through December 31, 2001.
In September 2001, we exchanged our equity interest in iBazar Com Ltda, a Brazilian subsidiary of
iBazar, for a 19.5% interest in MercadoLibre, which is a leading online auction site serving Latin America.
The net revenues of MercadoLibre are not consolidated and are not included in our net revenues.
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