eBay 1998 Annual Report Download - page 61

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61
eBAY INC.
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share amounts)
Year Ended December 31,
1996 1997 1998
Net revenues ............................................................................................................. $ 372 $5,744 $47,352
Cost of net revenues.................................................................................................. 14 746 6,859
Gross profit ........................................................................................................... 358 4,998 40,493
Operating expenses:
Sales and marketing .............................................................................................. 32 1,730 19,841
Product development ............................................................................................ 28 831 4,606
General and administrative ................................................................................... 45 950 9,080
Amortization of acquired intangibles.................................................................... — — 805
Total operating expenses.................................................................................. 105 3,511 34,332
Income from operations ............................................................................................ 253 1,487 6,161
Interest and other income, net................................................................................... 1 59 908
Interest expense......................................................................................................... — (3) (39)
Income before income taxes ..................................................................................... 254 1,543 7,030
Provision for income taxes........................................................................................ (106) (669) (4,632)
Net income................................................................................................................ $ 148 $ 874 $ 2,398
Net income per share:
Basic ..................................................................................................................... $ 0.02 $ 0.04 $ 0.05
Weighted average shares—basic .......................................................................... 6,375 22,313 49,895
Diluted .................................................................................................................. $ 0.00 $ 0.01 $ 0.02
Weighted average shares—diluted........................................................................ 42,945 82,660 114,590
The accompanying notes are an integral part of these consolidated financial statements.