eBay(EBAY) - 2023 Q2 - Quarterly Report

Financial Performance - Net revenues for Q2 2023 were $2,540 million, an increase of 4.9$2,422 million in Q2 2022[13]. - Gross profit for the first half of 2023 reached $3,632 million, up from$3,553 million in the same period last year, reflecting a growth of 2.2%[13]. - The company reported a net income of $171 million for Q2 2023, a significant recovery from a net loss of$531 million in Q2 2022[16]. - Basic earnings per share for continuing operations were $0.32 in Q2 2023, compared to a loss of$0.96 in Q2 2022[13]. - eBay reported a net income of $738 million for the six months ended June 30, 2023, compared to a net loss of$1,872 million for the same period in 2022[20]. - The company generated $1,442 million in net cash provided by operating activities for the six months ended June 30, 2023, an increase from$841 million in the prior year[20]. - Net revenues increased by 5% to $2,540 million for the three months ended June 30, 2023, compared to the same period in 2022, primarily due to investments in focus categories and higher take rates[195]. - For the first half of 2023, net revenues reached$5,050 million, up 3% from $4,905 million in the same period of 2022[202]. Assets and Liabilities - Total assets decreased to$19,956 million as of June 30, 2023, down from $20,850 million at the end of 2022[11]. - Total liabilities were$14,688 million as of June 30, 2023, a decrease from $15,697 million at the end of 2022[11]. - The company’s total stockholders' equity increased to$5,268 million as of June 30, 2023, from $5,153 million at the end of 2022[11]. - Cash and cash equivalents increased to$2,268 million as of June 30, 2023, compared to $2,154 million at the end of 2022[11]. - As of June 30, 2023, total long-term debt amounted to$7,721 million, a decrease from $8,871 million as of December 31, 2022[123]. Stockholder Activities - The company repurchased$503 million of common stock during the six months ended June 30, 2023, compared to $2,730 million in the same period of 2022[20]. - The company declared dividends of$140 million in the second quarter of 2023, compared to $124 million in the same quarter of 2022[18]. - The company paid a total of$133 million in cash dividends during the three months ended June 30, 2023, compared to $121 million in the same period of 2022[170]. - A quarterly cash dividend of$0.25 per share was declared in July 2023, to be paid on September 15, 2023[197]. Investment and Equity - The company experienced a loss of $214 million on equity investments in Q2 2023, compared to a loss of$1,221 million in Q2 2022[13]. - The company reported unrealized losses of $210 million for the three months ended June 30, 2023, compared to$829 million for the same period in 2022, related to equity investments[72]. - The fair value of the equity investment in Adevinta was $2,656 million as of June 30, 2023, down from$2,692 million as of December 31, 2022[72]. - The company’s equity investments totaled $3,308 million as of June 30, 2023, a decrease from$3,377 million as of December 31, 2022[67]. Operational Metrics - Operating expenses for Q2 2023 totaled $1,304 million, slightly higher than$1,234 million in Q2 2022, reflecting a 5.6% increase[13]. - Operating margin decreased to 20.4% for the three months ended June 30, 2023, down from 21.7% in the same period in 2022[195]. - Cash flow from continuing operating activities was $605 million for the three months ended June 30, 2023, compared to$577 million in the same period in 2022[196]. Legal and Regulatory Matters - The company is involved in ongoing legal and regulatory proceedings, with potential liabilities that could materially impact its financial results[151]. - The company accrued for probable losses of approximately $64 million in connection with ongoing government inquiries and civil actions[162]. - The company is under examination by tax authorities for the 2010 to 2021 tax years, with potential adjustments that could significantly change in the next 12 months[176]. Currency and Foreign Exchange - Foreign currency movements had an unfavorable impact of$9 million on net revenues in Q2 2023, compared to an unfavorable impact of $95 million in Q2 2022[206]. - The strengthening of the U.S. dollar against the British pound and euro has impacted financial results, with expectations of continued foreign currency volatility throughout 2023[205]. - The company actively monitors foreign currency volatility through hedging programs to mitigate risks associated with international revenues[205].