eBay 2013 Annual Report Download - page 6

PART I
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934, including statements that involve expectations, plans or intentions (such as those
relating to future business, future results of operations or financial condition, new or planned features or services, or management strategies).
You can identify these forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,”
“believe,” “estimate,” “intend,” “plan” and other similar expressions. These forward-looking statements involve risks and uncertainties that
could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and
uncertainties include, among others, those discussed in “Item 1A: Risk Factors” of this Annual Report on Form 10-K, as well as in our
consolidated financial statements, related notes, and the other information appearing elsewhere in this report and our other filings with the
Securities and Exchange Commission, or the SEC. We do not intend, and undertake no obligation, to update any of our forward-looking
statements after the date of this report to reflect actual results or future events or circumstances. Given these risks and uncertainties, readers are
cautioned not to place undue reliance on such forward-looking statements.
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 in September 1998, we completed the initial public offering of our common stock. Our principal executive
offices are located at 2065 Hamilton Avenue, San Jose, California 95125, and our telephone number is [phone]. When we refer to “we,”
“our,” “us” 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 its consolidated subsidiaries. When we refer to “eBay.com,” we mean the online marketplace located at
www.ebay.com and its localized counterparts. When we refer to “PayPal,” we mean the online payments platform located at www.paypal.com
and its localized counterparts. When we refer to “Enterprise,” we mean the ecommerce and marketing solutions provided by eBay Enterprise,
formerly GSI Commerce, which we acquired in June 2011.
We enable global commerce and payments on behalf of users, merchants, retailers and brands of all sizes. The technologies and services
we provide are designed to enable users and merchants worldwide to organize and offer their inventory for sale and buyers to find, buy and pay
for it virtually anytime and anywhere. We enable commerce through three reportable segments: Marketplaces, Payments and Enterprise. Driven
by the ubiquity of the Internet and the proliferation of mobile devices, we believe that the way consumers engage with each other, brands and
services is fundamentally changing, blurring the lines between offline retail and online ecommerce, and effectively creating one market for
commerce and reinforcing the connections between commerce and payments. We believe that this trend has expanded our addressable market.
We measure our footprint in this addressable market using a metric that we call “Enabled Commerce Volume." Enabled Commerce Volume, or
ECV, is the total commerce and payment volume that runs through our platforms which we enable on behalf of our users, merchants, retailers
and brands. We define ECV as the total commerce and payment volume across all three segments consisting of GMV, PayPal Merchant Services
TPV and Merchandise Sales not earned on eBay or paid for via PayPal or Bill Me later during the period. ECV excludes volume transacted
through the Magento platform. See the definitions of “GMV,” “Merchant Services net TPV” and “Merchandise Sales” in our Marketplaces,
Payments and Enterprise discussions, respectively, below.
Our primary focus is on our customers. Our company is only successful when the users and merchants we enable are successful. Whether
online, through the mobile channel or in the physical world, we are primarily a transaction-based business that generates revenue from the
transactions and payments that we successfully enable. We also generate revenue through marketing services, classifieds and advertising. In
addition, we have created an open source platform that provides software developers and merchants access to our applications programming
interfaces, or APIs, to develop software and solutions for commerce. Our developer community includes more than 1.8 million members. As of
December 31, 2013, our Marketplaces segment had more than 128 million active users and more than 550 million listings globally, while our
Payments segment had 143 million active registered accounts. See the definitions of "active user" and “active registered accounts” in our
Marketplaces and Payments discussions, respectively, below.
For additional financial information about our reportable segments as well as the geographic areas where we conduct business, please see
"Note 5 - Segments" to the consolidated financial statements included in this Annual Report on Form 10-K. Additionally, please see the
information in "Item 1A: Risk Factors" under the caption "There are many risks associated with our international operations," which describes
risks associated with the foreign operations of our reportable segments.
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