eBay 2001 Annual Report Download - page 6

PART I
FORWARD LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements based on our current
expectations about our company and our industry. You can identify these forward-looking statements when
you see us using words such as ""expect,'' ""anticipate,'' ""estimate'' and other similar expressions. These
forward-looking statements involve risks and uncertainties. Our actual results could diÅer materially from
those anticipated in these forward-looking statements as a result of the factors described in the ""Risk
Factors'' section of Management's Discussion and Analysis of Financial Condition and Results of
Operations and elsewhere in this report. We undertake no obligation to publicly update any forward-
looking statements for any reason, even if new information becomes available or other events occur in the
future.
ITEM 1: BUSINESS
eBay Inc. was formed as a sole proprietorship in September 1995, and was incorporated in California
in May 1996. In April 1998, we reincorporated in Delaware and completed the initial public oÅering of our
common stock in September 1998. Our principal executive oÇces are located at 2145 Hamilton Avenue,
San Jose, California, 95125, and our telephone number is [phone]. When we refer to ""we'' or
""eBay'' in this Annual Report on Form 10-K, we mean the current Delaware corporation (eBay Inc.) and
its California predecessor, as well as all of our consolidated subsidiaries. When we refer to ""eBay.com,'' we
mean the online trading platform located at www.ebay.com.
Business Overview
eBay pioneered online trading by developing a Web-based community in which buyers and sellers are
brought together in an eÇcient and entertaining format to browse, buy and sell items such as collectibles,
automobiles, high-end or premium art items, jewelry, consumer electronics and a host of practical and
miscellaneous items. The eBay trading platform is a fully automated, topically arranged, intuitive, and
easy-to-use service that supports an auction format in which sellers list items for sale and buyers bid on
items of interest, and a Ñxed-price format in which sellers and buyers trade items at a Ñxed price
established by sellers. As of December 31, 2001, through our wholly owned and partially owned
subsidiaries and aÇliates, we operated online trading platforms directed towards the United States,
Australia, Austria, Belgium, Canada, France, Germany, Ireland, Italy, Japan, the Netherlands,
New Zealand, Singapore, South Korea, Spain, Sweden, Switzerland and the United Kingdom.
From December 31, 1998 to December 31, 2001, the number of conÑrmed registered eBay users grew
from approximately 2 million to approximately 42.4 million. In 2001, eBay users listed more than
423 million items and completed transactions with an aggregate value of more than $9.3 billion.
Industry Background
Internet and Online Commerce Growth
The Internet has emerged as a global medium enabling millions of people worldwide to share
information, communicate and conduct electronic commerce transactions. According to Nua Internet
Surveys, as of November 2001, more than 513 million people worldwide had access to the Internet either
at home or work. And, according to Forrester Research, the total value of global electronic commerce
transactions in 2002 is expected to be more than $2.2 trillion, an 83% increase from the approximate
$1.2 trillion estimate for 2001.
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