eBay 2002 Annual Report Download - page 4

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PART I
FORWARD LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements based on our current
expectations about our company and our industry. You can identify these forward-looking statements when
you see us using words such as ""may,'' ""will,'' ""should,'' ""expect,'' ""anticipate,'' ""believe,'' ""estimate,''
""intend,'' ""plan'' and other similar expressions. You can also identify forward-looking statements by
discussions of strategy, plans or intentions. These forward-looking statements involve risks and
uncertainties. Our actual results could diÅer materially from those anticipated in these forward-looking
statements as a result of the factors described in the ""Risk Factors That May AÅect Results of Operations
and Financial Condition'' section of Management's Discussion and Analysis of Financial Condition and
Results of Operations and elsewhere in this report. We undertake no obligation to publicly update any
forward-looking statements for any reason, even if new information becomes available or other events
occur in the future.
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 oÅering of our common stock. Our principal executive oÇces are located at 2145 Hamilton
Avenue, San Jose, California, 95125, and our telephone number is (408) 376-7400. When we refer to
""we,'' ""our'' 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 our consolidated subsidiaries. When we refer to
""eBay.com,'' we mean the online marketplace located at www.ebay.com. When we refer to ""PayPal,'' or
""PayPal.com,'' we mean the global payments platform located at www.paypal.com.
Our Mission
Our mission is to build the world's most eÇcient and abundant marketplace in which anyone,
anywhere, can buy or sell practically anything. We pioneered online trading by developing a Web-based
marketplace in which a community of buyers and sellers are brought together in an entertaining, intuitive,
easy-to-use environment to browse, buy and sell an enormous variety of items. Through our PayPal service,
we enable any business or consumer with email to send and receive online payments securely, conveniently
and cost-eÅectively.
Our Marketplace
Our marketplace exists as an online trading platform that enables a global community of buyers and
sellers to interact and trade with one another. Our role is to create, maintain, and expand the technological
functionality, safety, ease-of-use, and reliability of the trading platform while at the same time, supporting
the growth and success of our community of users.
Our Platform
Our trading platform is a fully automated, topically arranged, intuitive and easy-to-use online service
that is available, 24 hours-a-day, seven days-a-week (subject to a weekly scheduled two-hour maintenance
period), enabling sellers to list items for sale in either auction or Ñxed-price formats, buyers to bid for
and/or purchase items of interest, and all eBay users to browse through listed items from any place in the
world at any time. The platform includes software tools and services available either for no charge or for a
fee, that allow buyers and sellers to more easily trade with one another. Our software tools such as: eBay
Anywhere, which provides wireless connectivity to eBay; Seller's Assistant, Turbo Lister, and Selling
Manager, which automate the selling process; the Freight Resource Center, which allows users to calculate
shipping costs; and PayPal, which facilitates online exchange of funds, are all designed to make our trading
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