eBay Inc. (
EBAY)
Q1 2009 Earnings Call Transcript
April 22, 2009 5:00 p.m. ET
Executives
Mark Rowen Vice President, Investor Relations
John Donahoe President and Chief Executive Officer
Bob Swan Senior Vice President, Finance & Chief Financial Officer
Analysts
Scott Devitt Morgan Stanley
Christa Quarles - Thomas Weisel Partners
Mark Mahaney - Citigroup
Douglas Anmuth - Barclays Capital
Jeffrey Lindsay - Sanford C. Bernstein & Co.
James Mitchell Goldman Sachs & Co.
Justin Post Bank of America/Merrill Lynch
Heath Terry FBR Capital Markets
Naved Khan - Jefferies & Company
Presentation
Operator
Please stand by. We are about to begin. Good day and welcome everyone to eBay''s first quarter 2009 earnings results conference call. This call is being recorded. With us today from the company is the President and Chief Executive Officer, Mr. John Donahoe, and the Chief Financial Officer, Mr. Bob Swan. At this time, I would like to turn the call over to Mark Rowen, VP of Investor Relations. Please go ahead, sir.
Mark Rowen
Thank you, operator. Good afternoon, everyone. Thank you for joining us and welcome to eBay''s earnings release conference call for the first quarter of 2009. Joining me today on the call are John Donahoe, our President and Chief Executive Officer, and Bob Swan, our Chief Financial Officer.
We are providing a slide presentation to accompany Bob''s commentary during the call. This conference call is also being broadcast on the Internet and both the presentation and call are available through the Investor Relations section of the eBay website at investor.ebay.com.
Before we begin, I''d like to remind you that during the course of this conference call we will discuss some non-GAAP measures in talking about our company''s performance. You can find the reconciliation of those measures to the nearest comparable GAAP measures in the slide presentation accompanying the conference call.
In addition, management may make forward-looking statements relating to our future performance that are based on our current expectations, forecasts, and assumptions, and involve risks and uncertainties, including those relating to the company''s ability to grow its businesses, user base and user activity. Our actual results may differ materially from those discussed in this call for a variety of reasons including, but not limited to, the impact of recent global economic events and the global economic downturn, foreign exchange rate fluctuations, changes in political, business, and economic conditions, the impact and integration of recent and future acquisitions, our increasing need to grow revenues from existing users in established markets, an increasingly competitive environment for our businesses, the complexity of managing a growing company with a broad range of businesses, our need to manage regulatory tax, IP, and litigation risks, including risks specific to PayPal and the financial industry and risks specific to Skype''s technology and to the VoIP industry, and our need to upgrade our technology and customer service infrastructure at reasonable costs, while adding new features and maintaining site stability.
You can find more information about factors that could affect our operating results in our most recent annual reports on our Form 10-K and our subsequent quarterly reports on Form 10-Q also available at investor.ebay.com. You should not unduly rely on any forward-looking statements and we assume no obligation to update them. All information in the presentation is as of April 22, 2009, and we do not intend and undertake no duty to update this presentation.
And with that, I''ll turn it over to John.
John Donahoe
Thank you, Mark. And good afternoon everyone and welcome to our Q1 earnings call. We delivered solid Q1 results, exceeding expectations in a tough economy. Revenue was just over $2 billion and our non-GAAP EPS was $0.39. We managed our expenses well during the quarter and generated free cash flow of close to $600 million. All in all, we are a strong company operating in a challenging global environment.
I think its fair to say that we have had an active start to 2009. In addition to executing against our priorities, we held an Analyst Day at which we detailed our three-year growth plans. And last week we made some important announcements that reinforced those plans and move us forward strategically.
Before discussing our Q1 results in greater detail, let me recap the strategies and priorities we outlined at our Analyst Meeting last month.
Our company connects buyers and sellers and we are focusing our portfolio on two core growth engines that accomplish this - payments and e-commerce. PayPal is the leading online global payments network and we intend to approximately double this business over the next three years. PayPal has unmatched advantages and will be the leader in online global payments.
