eBay 2001 Annual Report Download - page 39

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Risk Factors That May AÅect Results of Operations and Financial Condition
The risks and uncertainties described below are not the only ones facing eBay. Additional risks and
uncertainties not presently known to us or that we currently deem immaterial also may impair our
business operations. If any of the following risks or such other risks actually occur, our business could be
harmed.
Our operating results may Öuctuate.
Our operating results have varied on a quarterly basis during our operating history. Our operating
results may Öuctuate signiÑcantly as a result of a variety of factors, many of which are outside our control.
Factors that may aÅect our quarterly operating results include the following:
‚ our ability to retain an active user base, to attract new users who list items for sale and who
purchase items through our service and to maintain customer satisfaction;
‚ our ability to keep our websites operational and to manage the number of items listed on our
service at a reasonable cost;
‚ the amount and timing of operating costs and capital expenditures relating to the maintenance and
expansion of our business, operations and infrastructure;
‚ foreign, federal, state or local government regulation, including investigations prompted by items
improperly listed or sold by our users;
‚ the success of our geographical and product expansion;
‚ the introduction of new sites, services and products by us or our competitors;
‚ volume, size, timing and completion rate of trades on our websites;
‚ consumer willingness to consummate transactions with other users who are not known to them;
‚ consumer conÑdence in the safety and security of transactions on our websites;
‚ our ability to upgrade and develop our systems, infrastructure and customer service capabilities to
accommodate growth at a reasonable cost;
‚ our ability to successfully integrate and manage our acquisitions, including our purchase of a
majority interest in Internet Auction and our acquisition of iBazar in the Ñrst half of 2001;
‚ technical diÇculties or service interruptions involving our site or services (such as photo hosting or
payments) provided to our users by third parties;
‚ our ability to attract new personnel in a timely and eÅective manner;
‚ our ability to retain key employees in both our online businesses and our acquisitions;
‚ our ability to expand our product oÅerings involving Ñxed-price trading successfully;
‚ the ability of our land-based auction businesses to acquire high quality properties for auction;
‚ the timing, cost and availability of advertising in traditional media and on other websites and online
services;
‚ the cost and demand for advertising on our own websites;
‚ the timing of payments to us and of marketing and other expenses under existing and future
contracts;
‚ consumer trends and popularity of some categories of items;
‚ the success of our brand building and marketing campaigns;
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