eBay Inc. (EBAY) Q4 2022 Earnings Call Transcript

eBay Inc. (NASDAQ:EBAY) Q4 2022 Earnings Conference Call February 22, 2023 5:00 PM ET

Company Participants

John Egbert - Senior Director, Investor Relations

Jamie Iannone - Chief Executive Officer

Steve Priest - Chief Financial Officer

Conference Call Participants

Colin Sebastian - Baird

Tom Champion - Piper Sandler

Nikhil Devnani - Bernstein

Ross Sandler - Barclays

Stephen Ju - Credit Suisse

Doug Anmuth - JPMorgan

Deepak Mathivanan - Wolfe Research

Mark Mahaney - Evercore

Operator

Ladies and gentlemen, convey you for opinionated by. My sanction is Brent, and I will beryllium your convention usability today. At this time, I would for illustration to invited everyone to nan eBay Fourth Quarter Earnings Conference Call. All lines person been placed connected shut up to forestall immoderate inheritance noise. After nan speakers’ remarks, location will beryllium a question-and-answer session. [Operator Instructions]. Thank you.

It is now my pleasance to move nan telephone complete to Mr. John Egbert, Senior Director of Investor Relations. Sir, please spell ahead.

John Egbert

Good afternoon. Thank you for joining america for eBay's 4th fourth 2022 net convention call. Joining maine coming connected nan telephone are Jamie Iannone, our Chief Executive Officer; and Steve Priest, our Chief Financial Officer. We're providing a descent position to travel Jamie's and Steve's commentary during nan call, which is disposable done nan Investor Relations conception of nan eBay website astatine investors.ebayinc.com.

Before we begin, I'd for illustration to punctual you that during this convention call, we will talk definite non-GAAP measures related to our performance. You tin find nan reconciliation of these measures to nan nearest comparable GAAP measures successful our accompanying descent presentation. Additionally, each maturation rates noted successful our prepared remarks will bespeak FX neutral year-over-year comparisons, unless indicated otherwise.

During this convention call, guidance will make forward-looking statements, including, without limitation, statements regarding our early capacity and expected financial results. These forward-looking statements impact known and chartless risks and uncertainties. Our existent results whitethorn disagree materially from our forecast for a assortment of reasons. You tin find much accusation astir risks, uncertainties and different factors that could impact our operating results successful our astir caller periodic reports on Form 10-K, Form 10-Q and our net merchandise from earlier today. You should not trust connected immoderate forward-looking statements. All accusation successful this position is arsenic of February 22, 2023, and we do not intend and undertake nary work to update this information.

With that, I'll move nan telephone complete to Jamie.

Jamie Iannone

Thanks, John. Good afternoon, everyone, and convey you for joining america today. 2022 was a twelvemonth of accordant execution for eBay, arsenic we made important advancement against our semipermanent objectives. Our focused categories drove underlying maturation successful our business, arsenic we expanded world sum for our 16 cardinal Enthusiast Buyers.

In motors, parts and accessories, aliases P&A maturation accelerated arsenic we improved our fitting capabilities, accrued proviso of OEM parts and enhanced spot signals for buyers. We extended authentication to caller categories for illustration trading cards and good jewelry and opened authentication centers successful respective caller countries for handbags. We opened nan Vault to shop and usually transact valuable items and take has grown steadily week complete week. We retired bequest technology, simplified nan architecture of our halfway services and improved our tech velocity.

Our advertizing maturation accelerated arsenic we scaled our 3 newer Promoted Listings products, optimize capacity and automated much elements of campaigns. We expanded our financial services portfolio by adding FX conversion caller forms of payments for illustration Klarna and Afterpay, faster debit paper payouts and a integer wallet. And we balanced our investments successful invention pinch prudent costs subject to found a beardown instauration for sustainable profitable maturation for galore years to come.

Now turning to nan 4th quarter. We delivered an operating separator of adjacent to 30%, while making captious investments successful merchandise and trading to support our semipermanent maturation strategy. Non-GAAP net per stock for nan 4th were $1.07, up 2% year-over-year.

Our focused class strategy was a awesome constituent of our beardown financial capacity during nan 4th quarter. Focus categories grew much than 7 points faster than nan remainder of our marketplace during Q4, which was 2 points faster than nan anterior quarter. Establishing a crippled changing level of spot betwixt sellers and buyers has been an important driver of nan momentum successful our attraction categories.

Authenticity Guarantee enables spot successful our luxury categories for illustration watches, sneakers, handbags and good jewelry. We person observed notable turnarounds successful GMV maturation since we launched authentication, improved nan merchandise acquisition and grew consciousness to nan awesome inventory successful these categories.

In aggregate, our luxury focused categories person grown astatine astir double-digit CAGR since Q4 of 2019, proving these investments person been highly effective. We dramatically improved spot successful our refurbished offering by introducing warranties and half of returns, which attracted much marque and caller categories to our marketplace. Those investments paid dividends successful Q4 and pinch affirmative year-over-year GMV maturation and nan biggest income week ever for refurbished equipment during Cyber Week.

Trust successful our motors, parts and accessories class is astir reliant connected equipement for ensuring nan compatibility of car parts pinch a circumstantial vehicle. During nan past fewer months, we person taken awesome steps guardant pinch our fitment capabilities. We acquired myFitment successful Q3 to thief sellers populate their listings pinch meticulous fitment data, which ensures compatibility for buyers.

In Q4, we began making myFitment's exertion accessible to each buyers, starting pinch a aviator group of P&A sellers. Listings enhanced by this exertion are seeing a measurable uplift successful conversion, and we will grow this programme further successful 2023. Our important investments successful fitment complete nan past fewer years allowed america to motorboat a salient Fit Your Vehicle badge successful Q4.

Similar to nan Authenticity Guaranteed logo, we show connected luxury goods, this badge provides a clear denotation of which parts fresh your conveyance passim nan purchaser travel crossed search, merchandising, position point and checkout. This is nary mini feat pinch complete 500 cardinal progressive P&A listings connected eBay and nan expanding complexity of vehicles successful nan marketplace.

These advancements person importantly elevated our capabilities for P&A shoppers, and I'm pleased to stock a caller programme we launched conscionable past week called eBay Guaranteed Fit. This programme is nan breakthrough for spot and P&A that Authenticity Guarantee is successful luxury and warranties are for eBay refurbished. It provides buyers pinch assurance that eBay will guidelines down them if a portion doesn't fresh their vehicle. Guaranteed Fit is simply a immense milestone for nan P&A class and nan culmination of our multiyear fitment journey.

I'm incredibly proud of our teams for executing nan foundational work, making this programme imaginable and I'm looking guardant to seeing their continued invention successful nan category.

I'm besides excited astir our team's activity successful collectibles, which has benefited from a dependable cadence of merchandise improvement and partnerships, including astir recently, our unrecorded commerce beta. During Q4, we scaled up a number of eBay unrecorded events pinch prime sellers, bringing a patient level of viewers, engagement and GMV to participating sellers. We besides introduced nan eBay Live Hub, wherever users tin subscribe to channels and person notifications astir early events. This hub will service arsenic a cardinal find constituent arsenic we broaden nan readiness of unrecorded commerce to much sellers and categories this year.

Our acquisition of TCGplayer has besides greatly enhanced our collectibles category. And successful Q4, we began processing synergies betwixt our respective marketplaces. In summation to its customer guidelines of astir 800,000 hobbyists, a awesome competitory advantage for TCGplayer is its narration pinch thousands of section brick-and-mortar hobby shops pinch galore subscribing to its constituent of waste and transmission guidance solution.

Due to this software, sellers tin now much easy streamline listings and inventory connected some TCGplayer and eBay. TCGplayer besides further diversified its marketplace by introducing Comex during Q4, which is simply a earthy adjacency to collectible paper games.

eBay's humanities income information enabled TCGplayer to motorboat Comex pinch robust pricing intelligence, which will thief america standard this offering. While our integration is successful its early days, I'm incredibly excited to spot what TCGplayer organization will bring to eBay complete time.

One of nan cardinal pillars of our strategy is being nan level of prime for sellers. eBay's standard and world footprint correspond cardinal advantages for our level arsenic we activity toward achieving this vision.

In 2022, astir one-fifth of our GMV was facilitated done cross-border trade. Sellers who activate their listings internationally tin scope buyers successful complete 200 countries globally. However, little than half of nan inventory successful our apical 3 markets is presently disposable for export owed to nan clash associated pinch these transactions.

To unlock much valuable inventory for world buyers, past fall, we announced a awesome revamp of our cross-border capabilities pinch nan motorboat of eBay International Shipping. Under this program, eBay handles immoderate customs forms, coordinates duties pinch buyers, and intermediates returns.

Sellers are protected from point not received complaints, while buyers use from greater action and little shipping costs. The programme is resonating good arsenic we gradually ramp enrollment for sellers, while purchaser restitution connected eBay International Shipping transactions reached 80%. Steve will talk nan financial implications of this program, and I'm assured it will summation cross-border inventory and thrust incremental GMV for eBay.

Investments successful AI are besides improving customer cognition of our shipping capabilities. In Q4, we deployed a caller instrumentality learning exemplary for estimated transportation day successful nan US and prime world markets, enabling america to make much meticulous transportation predictions to buyers.

Applying this exemplary successful nan US reduced nan mean transportation estimate by 1 and a half days for each home listings, resulting successful a noticeable uplift successful conversion. A abstracted exemplary deployed for eligible Authenticity Guarantee products resulted successful an mean simplification of astir 2 days for US listings. These rollouts are conscionable nan latest illustration of our expertise to leverage AI to make our existing processes much efficient, which will beryllium a continued attraction for america successful 2023 and beyond.

Moving connected to ads. Our marketplace continues to use from invention successful our advertizing business, which delivered beardown maturation successful Q4 contempt headwinds successful nan broader integer advertisement market.

Promoted Listings drove first-party advertisement gross of $276 million, up 27% aliases much than 30 points faster than GMV growth. Over 2 cardinal sellers adopted a azygous advertisement merchandise successful Q4 and we eclipsed $700 cardinal unrecorded voted listings.

Additionally, our full advertisement gross is nearing 1.8% penetration of GMV. Promoted Listing Standard was again nan largest contributor to growth, some connected a sequential and an yearly ground arsenic optimization gains from anterior quarters proceed to use advertisement rates.

In Q4, we besides improved our merchandising algorithms to show a greater diverseness of products, which improves purchaser satisfaction, while besides preserving relevance and conversion.

Our newer advertisement products besides continued to standard nicely successful Q4 and grew much than 20% quarter-over-quarter. Promoted Listings Advanced, our costs per click merchandise continues to beryllium a standout among nan caller products. Seller take of Advanced has grown, arsenic we person expanded entree and automated much elements of run guidance to make this powerful advertisement portion easier to use.

In Q4, we launched Quick Setup, a one-click run creation solution for sellers, wherever eBay automates and optimizes nan run structure, advertisement groups targeting and keyword bids for CPC advertisers. We besides introduced multiuser relationship entree crossed our afloat suite of promoted listings, which enables eBay sellers to delegate run guidance to trusted 3rd parties for illustration brands aliases advertisement agencies.

Turning to payments. We proceed to rotation retired further costs services to support precocious ASP transactions and amended occurrence conversion. During Q4, we introduced divided payments successful nan US for transactions complete $1,000, enabling buyers to dispersed ample purchases crossed 2 in installments cards. We've already processed transactions from thousands of buyers astatine an mean bid worth of complete $3,000, and we're excited to grow this offering globally later this twelvemonth to amended support our attraction categories.

Additionally, building connected nan occurrence of Afterpay, we precocious collaborated pinch Zip to present a suite of bargain now salary later options to our Australian buyers. Zip supports purchases of up to $10,000, extending our ASP sum successful this valuable market. By managing our end-to-end payments process, we are besides capable to leverage our ain proprietary consequence models to measure transaction requests crossed our marketplace.

Last year, our consequence and protection squad without enhanced controls that allowed america to o.k. transactions that whitethorn person different been declined successful nan past, enabling complete $0.5 cardinal of annualized GMV and reducing imaginable escalations to customer service. In relationship pinch consequence management, we proceed to put successful nan information of our marketplace to guarantee our capabilities stay world-class.

Last week, we announced nan acquisition of 3PM Shield, a supplier of state-of-the-art marketplace compliance tool. 3PM Shield offers effective solutions for nan prevention and recognition of counterfeit listings and prohibited items. Combining this exertion pinch our proprietary data, will further heighten nan integrity of our marketplace.

Before we move on, I'd for illustration to touch connected nan actions we've taken to sharpen our attraction arsenic a institution and tally our business much efficiently, peculiarly successful ray of nan uncertain economical environment. Earlier this month, we made nan difficult determination to destruct astir 500 jobs aliases astir 4% of our world worker base. This determination followed a thoughtful reappraisal of our statement to guarantee our group and roles were aligned pinch priorities that beforehand eBay's committedness to semipermanent sustainable growth. These changes supply further elasticity for america to put efficiently and create caller roles successful precocious imaginable areas of our business for illustration caller technologies, trusted customer experiences and cardinal markets. There is nary easy measurement to opportunity goodbye to our talented colleagues, their passion and accomplishments complete nan past fewer years person helped america get america to wherever we are today. We are incredibly thankful for their contributions and are committed to supporting them done this difficult transition.

Next, I'd for illustration to stock a fewer milestones from our ESG efforts past year, starting pinch e-commerce. In 2022, our marketplace generated $4.6 cardinal successful affirmative economical effect done nan waste of pre-loved and refurbished goods. This activity avoided 1.6 cardinal metric tons of c emissions and kept 73,000 metric tons of discarded from going into landfills. E-commerce continues to supply important economical use for sellers and buyers during these uncertain times. And buying pre-loved items shows nary motion of slowing down. In fact, conscionable yesterday, we published our 3rd yearly e-commerce report, which recovered that 90% of surveyed respondents engaged successful e-commerce during 2022.

Cost savings were nan astir celebrated motivator for buying pre-loved particularly among Gen Z buyers. 64% of whom said its financial savings arsenic a superior logic for shopping e-commerce and sustainability was nan 2nd astir important facet pinch group progressively turning to pre-loved to thief nan environment. This positions america good arsenic we proceed to pave nan measurement arsenic an manufacture leader enabling economical empowerment and sustainability done our platform.

Now, let's move to impact. I'm ever amazed by nan tremendous generosity of nan eBay community. In Q4, eBay for Charity enables sellers and buyers to raise much than $35 million. And for nan year, customers raised complete $163 million. This represents an all-time precocious successful money raised done eBay for Charity, since we started this programme 20 years ago.

The eBay Foundation granted astir $23 cardinal successful 2022, chiefly to non-profit organizations advancing, inclusive entrepreneurship and done our worker matching gift programs. This represents different all-time precocious for yearly instauration grants.

I americium fortunate to lead a purpose-driven institution pinch a squad dedicated to helping communities astir nan world, while protecting our planet. For nan 4th twelvemonth successful a row, eBay was included successful nan Dow Jones Sustainability World and North American indices. We were besides included connected CDP's A List for 2022, which recognizes companies that are starring nan measurement successful biology transparency and capacity connected ambiance change. Additionally, eBay ranks number 1 connected cross-border commerce Europe's database of nan apical sustainable marketplaces operating successful Europe.

Looking to 2023, I'm incredibly excited astir nan roadworthy representation up of us. Today, I'll connection conscionable a glimpse of a fewer areas wherever you should expect to spot advancement from america this year. We'll proceed to innovate for customers successful our attraction categories and widen to caller countries and categories this year. We will proceed our activity successful P&A by expanding nan guaranteed FIT programme and fifth-year conveyance badge globally. We'll besides turn our tyre installation capabilities aft we began improving nan end-to-end tyre shopping acquisition and broaden our web of installation partners successful 5 markets during Q4.

We'll ramp assets successful nan vault and widen eligibility for much collectible items. While integrations pinch TCG subordinate and known Origin will fortify our worth proposition for collectors. We will besides proceed to iterate next-gen shopping features for illustration unrecorded commerce to amended prosecute pinch enthusiasts. And we will further create nan class landing pages we debut for sneakers, watches and handbags successful Q4, which connection trending inventory and personalized recommendations, powered by instrumentality learning.

Sellers crossed our marketplace will use from nan description of our world shipping programme to much markets, which will thrust incremental GMV arsenic sellers pat into our world demand. We will proceed to standard our advertizing offering arsenic we way toward our adjacent $1 cardinal by 2025, and – we'll simplify and turn take of float listings advance, present much AI-driven optimization and further grow our ads portfolio.

Finally, conscionable arsenic we person done successful attraction categories, this year, we will accommodate our one-size-fits-all approach, to build much applicable and compelling localized experiences successful immoderate of our European markets. We will heighten section discoverability, trim clash done simplified trading experiences, connection caller section forms of costs and reside different market-specific acquisition gaps successful search, connection and return policies.

In closing, I would for illustration to convey our bonzer eBay labor for their accomplishments this year. Their unrelenting attraction connected serving our organization has supported our sellers and buyers during these challenging economical times. I'm assured that pinch our talented eBay team, our strategical imagination and a persistent attraction connected operational excellence we will proceed to create compelling experiences for customers and create semipermanent worth for our shareholders.

With that, I'll move nan telephone complete to Steve to supply much specifications connected our financial performance. Steve, complete to you.

Steve Priest

Thank you, Jamie, and convey you each for joining america today. I'll statesman pinch highlights from nan 4th fourth connected Slide 9 of our net presentation. Next, I'll reappraisal our cardinal operating and financial metrics successful greater detail. Finally, I'll supply our outlook for nan first 4th and immoderate further colour connected 2020 fresh earlier we statesman Q&A.

As usual, my comments will bespeak year-over-year comparisons connected an FX-neutral basis, unless I statement otherwise. We delivered coagulated results successful Q4 arsenic our cardinal financial metrics exceeded expectations and landed adjacent nan precocious extremity aliases supra our expected guidance astatine Aegis. Gross merchandise measurement declined 6% to $18.2 billion, while FX was a 6-point headwind to reported growth.

Revenue was down 1% to astir $2.5 billion, which outpaced measurement by 5 points, chiefly owed to FX and robust maturation wrong our advertizing business. Non-GAAP operating separator was 29.9%, down 1.8 points owed to measurement deleverage and continued finance astatine nan trading to support nan strategical initiatives. We delivered $1.07 of non-GAAP net per share, up 2% year-over-year, and we generated $533 cardinal of free rate flow, up 43% year-over-year, while returning $419 cardinal to shareholders done repurchases and dividends.

Our Q4 results show nan continued resilience of our marketplace amid economical uncertainty. I'm highly proud of our teams delivering connected their quarterly financial commitments, maintaining prudent costs subject and executing cardinal deliverables successful support of our semipermanent maturation objectives.

Let's return a person look astatine our financial capacity during nan 4th quarter. Gross merchandise measurement is down 6% year-over-year, decelerating astir 1 constituent sequentially. Our business remains resilient contempt headwinds from geopolitical uncertainty, inflationary pressures, debased user assurance and rising liking rates. Additionally, FX was a headwind of astir 6 points of GMV astir 0.5 constituent greater than Q3.

Momentum successful focused categories continues to thrust underlying maturation successful our business. In aggregate, focused categories outgrew nan remainder of our marketplace by complete 7 points year-over-year during Q4, astir 2 points faster than nan anterior 4th delta. Motus Parts accessories maturation accelerated sequentially and stay nan largest contributor to this outperformance. And we are excited to spot what caller rollouts for illustration hole you conveyance badge and Guaranteed Fit programme will do for momentum successful this category.

Refurbished equipment besides contributed positively to maturation successful Q4, arsenic we proceed to grow to caller brands and categories. We've besides made nan onboarding process for third-party sellers much scalable to summation nan breadth and extent of refurbished action connected our marketplace. Within our luxury and trading cards categories, we proceed to spot patient trends successful authenticated point transactions successful Q4, which has mitigated nan macro driven ASP unit observed crossed these industries successful caller months.

As you'll recall, we closed nan acquisition of TCGplayer astatine nan extremity of October. A partial 4th of GMV gross and expenses are included successful our financials for Q4. But based connected nan timing of nan woody close, TCGplayer's publication is not worldly to results.

Looking astatine our business connected a geographic basis. Our US GMV declined 9% year-over-year decelerating by astir 2 points versus nan anterior quarter. International GMV declined 4% connected an FX neutral basis, which was unchangeable sequentially. Compared to Q4 of 2019, our full marketplace grew 2%, a deceleration from 6% past 4th versus 2019, US GMV roseate 12% successful Q4 while world GMV was down 5%. Although macro headwinds stay much pronounced successful Europe, our focused class strategy continued to thrust underlying maturation internationally, including affirmative year-over-year maturation successful P&A and notable spot successful luxury categories during Q4.

Moving to progressive buyers. 134 cardinal progressive buyers shopped connected eBay during nan trailing 12 months. We had 132 cardinal progressive buyers, excluding our TCGplayer acquisition and bias from our Turkey business, wherever we ceased operations successful July. Excluding these impacts, progressive buyers were down astir $1 cardinal sequentially arsenic a gradual betterment successful purchaser reactivation complete nan past fewer quarters has led to humble stabilization successful our progressive purchaser counts. Enthusiast buyers accounted for complete 16 cardinal of our progressive buyers successful Q4, little than $0.5 cardinal sequentially from churn wrong enthusiasts remains de minimis.

The nett downward migration of enthusiast is nan mid-value group was besides nan lowest we observed since we began disclosing these purchaser groups arsenic lapping unit has eased successful caller quarters. Average walk per enthusiast roseate again sequentially and proceed to beryllium patient astatine supra $3,000 annually.

Turning to revenue. You'll announcement successful our Q4 net merchandise and upcoming 10-K that we are now presenting a azygous nett revenues line, which amended aligns our reporting pinch really our business is operated. We provided 1 last 4th of trading services and different gross successful descent 12 of our net presentation.

Today, I'm moving guardant erstwhile we r efer to return rate, we will beryllium referencing our all-in nett gross divided by GMV. Net gross was down 1% to complete $2.5 cardinal during nan 4th quarter, 1 constituent acceleration versus Q3. Our return complaint was 13.8% successful Q4 astatine astir 40 ground points sequentially. Although FX hedge gains were nan astir important driver of our sequential return complaint accrued successful Q4, we proceed to spot patient contributions successful some advertizing and payments revenue.

Our advertizing business continues to build momentum. Total advertisement gross grew 19% during nan quarter. Our first-party ads grew 27%, outpacing measurement by much than 30 points for nan 2nd consecutive quarter. This bonzer consequence was chiefly driven by optimization and capacity improvements successful our modular promoted listings product. Healthy maturation successful our newer products, astir notably our costs per click arsenic besides contributed meaningfully. Our bequest third-party show ads were weaker successful Q4 owed to industry-wide headwinds complete nan Holloway, but these ads correspond an progressively smaller information of our mix. Managed payments contributed astir 10 ground points to our sequential return complaint description driven by caller financial work offerings. These see purchaser and seller FX conversion that facilitates cross-border trade, faster debit paper payouts, and caller precocious SP transaction services supporting our luxury categories. Importantly, some advertizing and payments stay connected way to meet our multiyear gross targets we discussed astatine our Investor Day.

Moving to profitability. Non-GAAP operating separator was 29.9% successful Q4, up astir 1 constituent sequentially but down 1.8 points year-over-year. Gross margins were down modestly year-over-year owed to measurement deleverage and authentication costs, partially offset by little costs processing fees.

Sales and trading roseate by complete 1 constituent arsenic a percent of gross arsenic we invested successful afloat chimney trading to support our focused categories, while merchandise improvement was comparatively level arsenic immoderate one-time impacts offset continued hiring of method talent.

Our G&A disbursal emergence arsenic a percent of gross owed to charitable contributions and different one-time items. In Q4, we recognized a GAAP complaint wrong G&A disbursal of $50 cardinal related to pending ineligible matters. You'll spot these adjustments including our GAAP to non-GAAP reconciliations successful nan appendix of our net presentation. Additional specifications connected this accrual will beryllium provided successful our upcoming Form 10-K.

We generated $1.07 of non-GAAP net per stock successful Q4, up 2% year-over-year, benefiting from a 12% simplification successful stock count from our stock repurchase. We delivered GAAP net per stock of $1.23, pinch nan delta being driven by a betterment successful our equity finance portfolio.

Turning to our equilibrium expanse and superior allocation. Free rate travel grew 43% to $533 cardinal successful Q4, driven chiefly by nan lapping of rate taxation payments connected finance income successful nan anterior year.

Our equilibrium expanse position remains beardown arsenic we ended nan 4th pinch rate and non-equity investments of $5.9 cardinal and gross indebtedness of $8.9 billion, pursuing a successful $1.2 cardinal indebtedness raise successful November.

We repurchased astir $300 cardinal of shares astatine an mean value of astir $42 during Q4 and person complete $2.8 cardinal remaining nether our existent authorization. We paid a quarterly rate dividend of $119 cardinal successful December aliases $0.22 per share.

Our finance portfolio is elaborate connected descent 20 of our net presentation. Our equity investments were weighted astatine astir $3.4 cardinal astatine nan extremity of nan 4th quarter. Following nan waste of a de minimis number of shares successful December to fulfill regulatory requirements, our $404 cardinal Adevinta shares were weighted astatine astir $2.7 billion. Our Adyen finance worth is calculated based connected nan probability of our remaining warrant tranche successful.

In summation to nan acquisitions we completed successful 2022, we proceed to measure inorganic opportunities to accelerate our strategical objectives by our Build By Partner framework. We closed nan acquisition of 3PM Shield past week, which will fortify spot successful our marketplace, they're helping america forestall and observe problematic listings pinch moreover greater precision.

Moving connected to our outlook. For nan first quarter, we forecast GMV betwixt $18 cardinal and $18.3 billion, representing integrated FX neutral maturation betwixt antagonistic 5% and antagonistic 4% year-over-year. This GMV outlook includes an estimated $100 cardinal from one-time benefits already recognized successful Q1 and expect an FX headwind to reported maturation betwixt 2 and 3 points. We expect to make gross betwixt $2.46 cardinal and $2.5 billion, representing integrated FX neutral maturation betwixt level and up 2% year-over-year.

We expect a non-GAAP operating separator betwixt 29.1% and 29.7%, and we forecast non-GAAP net per stock betwixt $1.05 and $1.09 and representing EPS maturation betwixt level and up 3% year-over-year. Although, we are not providing afloat twelvemonth guidance astatine this time, fixed nan move operating environment, we will stock immoderate directional colour connected really we are presently reasoning astir 2023.

Our baseline anticipation is that nan outer request situation does not materially amended during nan first half of nan year, arsenic a consequence of continued macro uncertainty crossed our largest markets. While we do spot imaginable for an betterment successful underlying economical conditions arsenic nan twelvemonth progresses, it is excessively early to foretell nan 2nd half recovery, buying retired pinch confidence.

As a result, we presently expect our sequential GMV maturation beyond Q1 to astir approximately seasonality we observed during 2022, excluding nan effect of currency. For nan afloat year, we expect to turn full non-GAAP expenses, inclusive of costs of gross by astir 2% year-over-year connected a spot basis, arsenic we proceed to put successful strategical maturation initiatives successful 2023. This forecast contemplates one-time impacts to our P&L from caller M&A and nan rollout of nan eBay International Shipping programme this year. These one-time factors mixed are expected to correspond a year-over-year headwind for operating separator of astir 120 ground points versus 2022. Our disbursal maturation forecast is besides nett of astir $100 cardinal of OpEx savings from our structural costs programme arsenic we proceed to look inward for costs efficiencies successful our business.

I'd for illustration to stock immoderate further discourse connected nan one-time effect to margin. Over nan past year, we accelerated our advancement towards respective halfway strategical objectives done nan acquisitions of TCGplayer, KnownOrigin, myFitment, and 3PM Shield. While we are excited astir nan synergies and semipermanent maturation imaginable of these assets, lowering them into a standard successful nan marketplace pinch our level of profitability does coming a earthy resistance connected margins successful nan short-term, which will diminish arsenic our integration activity progresses.

The rollout of eBay International Shipping will amended seller velocity and world readiness of unsocial inventory complete nan agelong run. Our domiciled successful intermediating shipping and returns successful this programme will displacement america to main narration pinch sellers versus being an agency successful our erstwhile world shipping program.

From an accounting perspective, this intends gross from nan caller programme will beryllium recognized connected a gross basis, while nan immense mostly of expenses are adaptable and admit nan costs of revenue, while nan operating separator headwind from this programme will abate arsenic we progressively standard it done 2023. It's chiefly adaptable costs aliases effect to our reported gross margins. We expect this programme to make incremental operating profit this twelvemonth contempt representing a headwind of 30 ground points of gross separator successful Q1, rising to 120 ground points successful Q4.

Additionally, we expect overseas speech to correspond a headwind of astir 1% of GMV successful 2023 and betwixt 3% to 4% to non-GAAP EPS, pursuing nan unwinding of caller US dollar strength. We forecast our non-GAAP taxation complaint to stay astatine 16.5% passim 2023.

On nan superior allocation front, I'm pleased to denote our Board precocious approved a 14% summation to our quarterly dividend, raising to $0.25 per stock successful 2023. We proceed to target returning astir 125% of free rate travel to shareholders betwixt 2022 and 2024, and our broader superior allocation priorities stay unchanged.

Our wall equilibrium expanse is simply a tremendous competitory advantage successful this situation that enables america to put organically successful our business, accelerate our strategical objectives pinch disciplined inorganic investments, while still delivering patient superior return to shareholders.

In nan existent macro environment, we judge it is prudent to equilibrium nan timing and magnitude of stock repurchases pinch our superior needs from quarter-to-quarter. Our first privilege is offsetting dilution, and we expect to beryllium opportunistic pinch respect to larger repurchases.

In closing, our Q4 results capped disconnected a resilient twelvemonth for eBay successful 2022 arsenic we made meaningful advancement towards our semipermanent strategy, contempt important macro uncertainty. We exceeded statement expectations for GMV, gross and EPS during Q4. Our focused categories proceed to outperform and are driving underlying maturation successful our business.

Our advertizing gross continues to meaningfully outpace measurement growth, while costs initiatives proceed to standard successful statement pinch expectations. We achieved a afloat twelvemonth operating separator of 30% contempt contending pinch a much challenging macro situation than we anticipated astatine nan opening of nan year.

We generated astir $2.2 cardinal successful free rate travel successful 2022 and returned complete $3.6 cardinal to shareholders done repurchases and dividends, equating to astir 170% of our free rate flow.

I'm proud that eBay continues to pave nan measurement arsenic an manufacture leader, enabling economical empowerment and sustainability to our platform. We erstwhile again achieved c neutrality successful 2022 and stay committed to reducing 90% of our c emissions from our operations by 2030.

I'm incredibly appreciative of our team's attraction and execution during 2022, arsenic we delivered connected a number of our halfway strategical objectives, contempt navigating uncertain macro environment. I'm assured our investments successful 2022 enabled america to exit nan twelvemonth stronger than erstwhile we entered it, keeping america connected a way to sustainable semipermanent growth.

With that, Jamie and I will now return your questions.

Question-and-Answer Session

Operator

[Operator Instructions] Your first mobility is from nan statement of Colin Sebastian pinch Baird. Your statement is open.

Colin Sebastian

Great. Thanks, and bully afternoon, guys. A mates of questions for me. Maybe, Jamie, astatine a precocious level, first off, you look mostly satisfied pinch nan strategical attraction connected enthusiast buyers and nan non-new-in-season conception that you outlined a twelvemonth ago. But I wonder, if you could talk astir immoderate ways successful which you'd opportunity this strategy has evolved done nan twelvemonth arsenic you scheme for nan adjacent mates of years? Some of that whitethorn beryllium much nuanced, but funny connected your views there.

And then, Steve, I conscionable wanted to drill down a small spot much connected nan 2023 outlook. I deliberation we understand nan GMV position and immoderate of nan separator impacts. On nan return rate, should we presume that, that spread betwixt GMV and gross maturation continues to grow, fixed nan expanding publication of advertizing and payments done nan year? Thank you.

Jamie Iannone

Yes. So first connected nan benignant of wherever we are, we're pleased pinch nan advancement that we're seeing. So if you deliberation astir focused categories outgrowing nan remainder of nan business by 7 points, nan double-digit alteration that we've seen successful customer satisfaction, we took connected our largest attraction class astatine nan extremity of past twelvemonth pinch parts and accessories, and we're seeing that return to marketplace stock growth, which is great. It's a very ample business. We outlined that astatine Investor Day being complete $10 billion.

And nan displacement that we made to non-new-in-season, I think, is really helping us, particularly successful these challenging economical times. All nan activity we did and refurbished to build that arsenic a beardown class connected eBay. Now we're seeing -- we had our largest week ever during Cyber Week. And during challenging economical times, group really move to value. And I deliberation we're leaning into wherever nan user is headed. I'd constituent you to nan re-commerce Report, which we put retired yesterday, which said 90% of nan respondents bought re-commerce successful 2022 and Gen Z, 64% of them said it was because of nan financial worth that's provided. So, we deliberation we're correct successful there.

We're going to proceed to heighten and build connected that strategy. We're doing a batch of further activity successful artificial intelligence and bringing that not only to our focused categories, but besides to our horizontal businesses. I talk astir nan activity that we did successful hunt arsenic 1 illustration of that, nan activity that we did successful advertizing pinch nan merchandising location arsenic a 2nd one. And past you spot america continuing to grow what we're doing connected nan horizontal side. I'd conscionable extremity pinch eBay International Shipping.

Cross-border waste and acquisition is now 1 successful 5 transactions connected eBay. It's 1 of nan unsocial worth propositions that we have, particularly for nan individual consumer. And we're making that a full batch easier pinch what we're doing pinch eBay International Shipping, and that's different benignant of immense opportunity crossed nan committee connected nan horizontal side. So complete nan people of nan year, I'll get into much and much specifications astir it, but we consciousness really bully astir nan vector that we're on. Steve, do you want to return nan 2nd part?

Steve Priest

Yes. Hi, bully afternoon, Colin. With respect to arsenic payments, versus opportunity is really pleased pinch nan execution from nan teams did a tremendous occupation and we're search good towards nan guidance that we gave astatine Investor Day successful position of our medium-term targets successful position of payments and ads. We don't springiness immoderate circumstantial guidance connected nan telephone associated pinch that successful payments for '23, but you should expect them to proceed to outpace GMV, arsenic they did successful 2022. So, awesome execution from nan teams and pleased pinch wherever we are.

Colin Sebastian

Great. Thank you.

Operator

Your adjacent mobility is from nan statement of Tom Champion pinch Piper Sandler. Your statement is open.

Tom Champion

Hey bully afternoon, guys. Steve, possibly a speedy 1 for you. Could you please talk astir nan GMV maturation you've seen internationally, it looks for illustration world FX-neutral exceeded home for nan 2nd 4th successful a row. And I'm conscionable curious, if you're benignant of amazed by that result. I deliberation you referenced P&A and possibly luxury driving that. And past funny that nan $100 cardinal benefit, I believe, to – to GMV successful nan guidance. I deliberation location was immoderate reference to that successful nan guidance.

Maybe, Jamie, conscionable a speedy 1 for you, if I could, tin you conscionable talk astir authenticity and really you consciousness for illustration you are executing and whether you've turned a area there. I deliberation astir of nan caller acquisitions person been centered astir authenticity and removing clone goods. How do you consciousness astir your advancement there? And really overmuch further do you request to go? Thank you.

Steve Priest

Hi, Tom, I'll prime up nan first one. Obviously, we're seeing different dynamics based connected our world business and nan US business based connected nan macro environment, nan move macro situation that we've been operating in. And obviously, immoderate of those challenges were much pronounced than nan world business earlier than nan US, and we called retired immoderate colour pinch regards to that arsenic we guided nan 4th fourth really successful position of immoderate of nan US softness that we saw successful October coming done that.

The point I would opportunity is that, nan execution our ain focused categories, some successful Europe and nan US is seeing underlying momentum P&A, for example, we're number 1 successful a mates of nan cardinal markets successful Europe, successful nan UK and Germany and number 2 successful nan US and things for illustration P&A, luxury, refurb are seeing bully momentum some internationally and successful nan US.

Specifically, pertaining to nan $100 cardinal that we laid retired successful nan prepared comments, this is simply a circumstantial GMV use arsenic a one-time point successful Q1, which we do not expect to proceed done nan year. It's astir notably astir Chinese sellers, keeping their stores unfastened done nan Lunar New Year, which is not emblematic for this clip of year. Jamie complete to you?

Jamie Iannone

Yes, Tom. So connected authenticity, we're emotion awesome astir what we're seeing successful position of nan effect that it's having connected customer restitution and nan execution of it. If you deliberation astir it for those focused categories for illustration luxury handbag, sneakers, watches, authenticity is what provides nan game-changing level of trust. That's different successful different categories. So successful refurbish, for example, it's nan two-year warranties and nan 30-day hassle-free returns.

And past thing for illustration P&A, we conscionable launched this week Guaranteed Fit, which is really nan game-changing level of trust, which is guaranteeing that, that portion is going to fresh your product, which is really key. The acquisition that we did precocious pinch 3PM Shield, it's really a state-of-the-art marketplace compliance capacity that they've built utilizing really precocious AI technologies to thief support prohibited items disconnected nan platform. And that's really conscionable continuing nan taxable of building spot connected nan marketplace, and eBay arsenic a trusted spot to shop, which has paid monolithic dividends, giving america a awesome ROI from nan investments that we've made to-date, and we consciousness really bully astir nan advancement and wherever we are.

Tom Champion

Got it. Thank you.

Operator

Your adjacent mobility is from nan statement of Nikhil Devnani pinch Bernstein. Your statement is open.

Nikhil Devnani

Hey, guys. Thank you for taking nan question. I had a mates connected GMV growth, please. Steve, you mentioned that US softness that you called retired successful October, did that persist, aliases did you spot immoderate benignant of changes successful trends location amended aliases worse? And past successful position of nan 2023 maturation framework, acknowledgment for that, but is 22% nan correct twelvemonth to usage for seasonality fixed Omicron and conscionable post-COVID dynamics it feels for illustration you started nan twelvemonth well. Just wondering why GMV would measurement down successful Q2, Q3, particularly arsenic you put successful nan marketplace arsenic good to make it better? Thanks a lot.

Steve Priest

Hi, Nikhil, convey you for nan questions. First of all, pinch regards to nan 4th fourth and coming in, arsenic we said successful our prepared comments, really pleased to spot immoderate of nan execution peculiarly successful a mates of cardinal attraction categories for illustration P&A and refurb proceed to benignant of beryllium highlights for nan 4th fourth arsenic we came done it.

As we've mentioned, came done towards nan apical extremity of nan guide. And really, we did person little headwind arsenic we'd expected connected an speech complaint basis, pinch nan US dollars we went through. But immoderate halfway spot successful a mates of nan attraction categories arsenic we travel done nan 4th quarter.

With regards to nan sequencing, we're dealing pinch an incredibly move macro situation and we wanted to springiness immoderate colour for nan investor organization arsenic we commencement to deliberation astir 2023. And obviously, nan macro move has been challenged during 2022. And truthful successful that directional color, we've fixed a broad guideline for nan first quarter. We proceed to execute successful nan underlying business. But based connected nan uncertainty that we are facing astatine nan infinitesimal and nan continuation of that macro situation we felt it was astir prudent conscionable to benignant of laic retired that sequencing relating to 2023.

Nikhil Devnani

Got it. Thanks a lot.

Operator

Your adjacent mobility is from nan statement of Ross Sandler pinch Barclays. Your statement is open.

Ross Sandler

Hey, guys. Just a speedy follow-up to that GMV sequencing reply connected that past one. So it doesn't sound for illustration you really ascribe to nan mentation that consumers whitethorn displacement immoderate wallet stock distant from services and backmost to equipment successful 2023, which is benignant of nan other of what happened successful 2022. So immoderate remark connected that?

And past I guess, conscionable what would it return to get backmost to that GMV model that you laid retired astatine Analyst Day. Is location thing other successful your power that you tin spot to get those GMV maturation rates up to nan mid-singles? And past nan 2nd mobility is conscionable we're seeing a batch of ostentation astir nan world, different rates successful different countries. You guys person a batch of cross-border corridor. So really is little ostentation successful nan US perchance than places for illustration nan UK and Germany impacting your business arsenic acold arsenic nan cross-border? Thanks a lot.

Steve Priest

Hi, Ross, I'll return those. So pinch respect to nan GMV sequencing, we haven't guided nan afloat year. We're conscionable trying to springiness immoderate directional alignment. We're conscionable trying to scheme our business efficaciously astir nan move macro situation that we're seeing. Again, put a very broad guideline up for nan first quarter, really pleased pinch nan execution of nan strategy, which is moving good and leaning into nan attraction categories that we're still to execute.

We mentioned nan truth that we do spot arsenic galore commentators say, a very, very challenged and definite first half of nan year. Again, we're conscionable fixed immoderate guidance connected alignment astir really we deliberation astir things arsenic we navigate done 2023. So conscionable providing immoderate colour accordingly.

With regards to nan Investor Day GMV framework, we're leaning successful precisely wherever we said we would, whether it's luxury, whether it's P&A, Jamie talked extensively astir nan benefits of authentication impacting nan business. And truthful we are seeing underlying affirmative maturation successful our business arsenic we execute nan strategy, proceed to beryllium fueled by nan momentum that we're seeing pinch payments and ads.

In position of nan timing of nan GMV model that we laid retired astatine Investor Day, that's really a usability of nan imaginable severity and long of nan macro situation that we're operating in, which will evidently person an denotation successful position of nan timing of erstwhile we get to those longer-term targets.

And past finally, pinch regards to inflation, arsenic you imagine, ostentation is impacting a number of our businesses crossed nan US and successful Europe. Europe has been much pronounced complete caller quarters because of -- peculiarly because of nan power challenges arsenic we spell forward. And successful addition, you've sewage immoderate labour unit being impacted successful Europe arsenic good that's impacting nan business.

Specifically, astir eBay, we do person a resilient business, but however, wide ostentation does person a, I suppose, a mixed effect connected our business because we lead into non-new-in-season items, that really conscionable helped effect wherever consumers are looking for value, and we person a batch of pre-loved and refurbished items connected our level and that capacity successful Q4 was a awesome reflection of that.

However, because of nan macro challenges, we're not immune to nan inflationary pressures connected nan discretionary user spending. So, hopefully, that gives you a small spot of colour successful position of really we deliberation astir nan business.

Operator

Your adjacent mobility is from nan statement of Stephen Ju pinch Credit Suisse. Your statement is open.

Stephen Ju

Thank you. So, Jamie, I deliberation we spent rather a spot of clip talking done nan re-commerce opportunity connected this call. Now, fixed eBay's history pinch cataloging, I person to deliberation that having accrued parameters connected really mildly aliases not mildly utilized nan aforesaid point whitethorn beryllium and really that's described from seller-to-seller, that's astir apt creating a unsocial sorting problem. So, tin you talk astir really you are tapping nan opportunity and ultimately, benignant of nan correct results to nan user?

Jamie Iannone

Yes, Stephen, I fundamentally would conscionable constituent you, for example, nan parts and accessories, right? What we're doing location is utilizing our knowledge astir fitments and each nan investments that we've made complete nan past mates of quarters and being capable to say, if you're looking connected nan tract successful parts and accessories, you're going to spot these large greenish cheque marks, let's say, Fits Your Vehicle.

And now pinch what we've released conscionable past week, we're really going to opportunity it's guaranteed to fit. Think astir that arsenic for illustration authenticity guarantee for vehicles. So, we're continuing to category-by-category, find nan champion measurement to amended that hunt experience.

And thing for illustration refurbished it's certifying nan value of that refurbishment and saying we're going to guidelines down that pinch a 30-day hassle-free return eBay Money-Back Guarantees.

So, nan operation of nan awesome activity that our hunt squad does pinch AI to really thrust much relevance connected nan level thrust amended callback successful our hunt results, et cetera, mixed pinch nan category-specific activity that we're doing to really optimize that acquisition connected a category-by-category basis, is really nan intersection of those two. It's what's moving out, I think, truthful good for america and why we're seeing beardown numbers successful nan strategy and successful nan focused categories that we've rolled out.

Stephen Ju

Thank you.

Operator

Your adjacent mobility is from nan statement of Doug Anmuth pinch JPMorgan. Your statement is open.

Doug Anmuth

Great. Thanks truthful much. I conscionable want to displacement gears and inquire astir expenses, Steve, and nan 2% maturation successful non-GAAP expenses and successful 2023. If you could conscionable talk astir immoderate of nan cardinal investments present and puts and takes? And I guess, successful particular, really we should beryllium reasoning astir income and marketing, assuming that you'll proceed to do afloat chimney separator connected nan attraction categories? Thanks.

Steve Priest

Good afternoon, Doug. I deliberation astatine a macro level, I would opportunity that we will continue, arsenic we ever person been to thin into nan short-term to thrust operational efficiencies done nan likes of nan system costs programme wherever we're going very heavy connected nan organization, while astatine nan aforesaid clip proceed to put for nan early for nan semipermanent trajectory and maturation of nan business.

In position of nan investments we'll beryllium making successful 2023 is proceed nan strategical playbook. It's continuing to put successful merchandise that customers want to proceed to put successful spot connected nan level and past proceed to put successful afloat chimney trading successful position of making judge that we get nan connection matters retired to our customers. The 2% summation successful year-over-year non-GAAP disbursal maturation includes nan 120 ground points of separator headwinds that we talked astir associated pinch M&A and nan eBay International Shipping program, and it's nett of $100 cardinal of nan structural costs programme that we've laid out.

So if I guidelines back, we've sewage a mates of headwinds pinch those 2 items I've talked about. We're leaning successful to thrust costs efficiencies, and we're continuing to put for nan early semipermanent sustainability of nan business.

Doug Anmuth

Great. Thank you, Steve.

Operator

Your adjacent mobility is from nan statement of Deepak Mathivanan pinch Wolfe Research. Your statement is open.

Deepak Mathivanan

Hey guys, acknowledgment for taking nan question. So first, tin you springiness america immoderate colour connected nan maturation successful attraction categories wherever you've had nan personification acquisition enhancements for a while now, specifically, sneakers and luxury watches and immoderate of those categories. I understand that macro is volatile, but are you seeing sustained stock gains successful these categories now? Any further colour connected caller maturation location would beryllium great.

And then, Steve, tin you unpack nan 2023 EPS guideline for america for a small bit? Clearly, we admit that there's a batch of uncertainties. But really should we deliberation astir nan magnitude and cadence of buybacks for this year? And possibly is it adjacent to usage 2022 seasonality besides arsenic a proxy for quarterly cadence connected EPS arsenic well?

Jamie Iannone

Yeah. So -- hi, Deepak, fto maine return nan first one. So yeah, we're really pleased pinch what we're seeing pinch focused categories. It's increasing 7 points faster than nan remainder of nan platform. The measurement to deliberation astir that is positive 2% if you look astatine it connected a quarter-over-quarter basis. When you look astatine our coverage, we're astatine astir 25% crossed nan full business. If you look astatine our large 3 markets wherever we've been focusing, it's astir 28% coverage, truthful making bully advancement there.

But it's not conscionable astir investing successful caller coverage. It's besides astir investing successful existing categories that are driving nan underlying maturation successful our business and balancing reinvestment there. And we're really pleased. We proceed to put successful sneakers, we launched 2 years ago, but we're continuing to put pinch negociate shipping, which we launched successful 2022. We talked connected nan telephone astir luxury equipment having astir double-digit maturation rates complete nan past mates of years. So we are seeing that marketplace stock -- return to marketplace stock maturation for those businesses, which is really healthy. And I'd opportunity nan largest 1 of which is P&A, and we're really excited by nan advancement that we're seeing successful P&A.

On nan merchandise side, nan activity we're doing successful fitment and Guaranteed Fit and making nan catalog disposable via nan apps. The caller acquisition pinch myFitment, further expanding our expertise to do there, mixed pinch nan trading that we're doing successful nan US, we're doing nan existent personalities from car talk successful nan UK were associated pinch Pimp My Ride. So we're really going aft that enthusiast buyer, and it's really working. So I'm really pleased pinch nan capacity connected attraction categories. Steve, possibly you want to return nan 2nd part?

Steve Priest

Yes. So Deepak, we've evidently gotten a very broad Q1 guide. And arsenic I mentioned earlier, because of nan uncertainty still nan move macro environment, we've not fixed a afloat twelvemonth guideline astatine this point. With respect to nan seasonality mobility that you had, that pertains to directional colour associated pinch GMV. And truthful that's really I would benignant of find that.

Specifically reasoning astir superior returns that we've laid out, conscionable benignant of taking a measurement back, successful 2022, we returned $3.6 cardinal to shareholders done dividends and buybacks, which is 170% of free rate flow. As you're reasoning astir superior returns, we stay committed to nan 125% of free rate travel target that we laid retired astatine nan investor arena betwixt 2022 and 2024. So we're benignant of search supra that.

And arsenic I deliberation astir 2023, our privilege really to commencement pinch is going to beryllium to beryllium committed to offsetting dilution successful position of nan specified stock count, while continuing to equilibrium nan superior needs of nan business. We person lent successful and done a 14% summation successful nan dividend from $0.22 to $0.25. But for me, our wall equilibrium expanse continues to beryllium a cardinal competitory advantage successful this situation to alteration america to proceed to put successful nan business. So I dream that gives you a small spot of colour astir really we're reasoning astir 2023.

John Egbert

Operator, tin we do 1 past question, please?

Operator

Your last mobility comes from Mark Mahaney pinch Evercore. Your statement is open.

Mark Mahaney

Thanks. Two questions, please. This advertizing continued ramp penetration now to 1.8% of GMV. As you've looked astatine third-party information points and possibly arsenic you've looked astatine that penetration wrong verticals, do you person a amended consciousness of really precocious that penetration tin emergence overall?

And past secondly, conscionable talk a small spot astir you had nan measurement up successful focused class trading walk and conscionable your assurance level that you're getting a bully return connected that. There's a clear deleverage successful nan model, but there's a batch of sound successful there. So conscionable really do you look astatine that and nan impervious that that's really moving retired for you? Thank you.

Jamie Iannone

Yes. Thanks, Mark. So connected nan advertisement side, for illustration we said astatine Investor Day, we person statement of show to 3%, which we still consciousness awesome about. If you look astatine nan performance, Promoted Listing Standard continues to beryllium nan workhorse of nan product, and we're continuing to thrust further penetration there, hitting 2 cardinal sellers and 700 cardinal listings. But we're besides excited by our caller products. They erstwhile again grew 20% quarter-over-quarter and we're making it easier for sellers.

I talked astir Quick Setup, which makes it overmuch easier to travel into nan programme and usage nan program. And past we're moving connected things for illustration multi-user access, which we conscionable launched which enables much elasticity to really bring successful an advertisement agency to thief you negociate your advertisement campaigns. So I consciousness awesome astir nan imaginable there, increasing 30-plus percent complete measurement and what we're seeing.

On nan focused class side, been really happy pinch nan capacity of nan trading spend. If you deliberation astir it, we've shifted our exemplary from being really benignant of little chimney optimization to doing much afloat funnel. And that's driving much enthusiast buyers into nan platform, and it's allowing nan wide walk to activity a small spot harder. But astatine nan aforesaid time, it's really allowing america to bring buyers successful and past leverage them crossed aggregate categories.

So if you deliberation astir for illustration a sneaker buyer, they will travel successful and bargain $450 successful sneakers, but past they'll bargain $1,900 successful different products successful different categories. A handbag purchaser will bargain $2,500, but past walk $5,000 elsewhere. So erstwhile you look astatine nan return connected trading spend, usually afloat chimney has a longer return connected it, but we deliberation it's nan absolute correct spend. We're seeing nan correct alteration successful information and we're really driving, I think, nan unsocial worth proposition that we person to connection astatine eBay. So, you're going to proceed to see, conscionable for illustration we've done successful parts, really circumstantial trading tailored to those enthusiasts pinch nan correct afloat chimney approach, because we for illustration nan capacity of what we're seeing.

Mark Mahaney

Thank you, Jamie.

Jamie Iannone

Thanks.

Operator

Ladies and gentlemen, convey you for participating. This concludes today's convention call. You whitethorn now disconnect.