eBay 2003 Annual Report Download - page 26

Net Revenues Summary
Percent Percent
2001 Change 2002 Change 2003
(in thousands, except percent changes)
Segment Net Revenues:
U.S. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $617,011 32% $ 816,596 30% $1,062,834
InternationalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 114,162 165% 302,136 120% 664,640
Payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,648 440% 95,368 359% 437,622
Total net revenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $748,821 62% $1,214,100 78% $2,165,096
Transaction net revenues:
U.S. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $474,970 51% $ 718,239 43% $1,024,915
InternationalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 110,802 168% 297,485 121% 657,874
Payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,899 452% 93,303 360% 429,453
Total transaction net revenues ÏÏÏÏÏÏÏÏÏ 602,671 84% 1,109,027 90% 2,112,242
Advertising and other non-transaction net
revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 146,150 (28)% 105,073 (50)% 52,854
Total net revenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $748,821 62% $1,214,100 78% $2,165,096
Geographical Net Revenues:
U.S. ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $634,659 41% $ 897,701 57% $1,406,512
InternationalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 114,162 177% 316,399 140% 758,584
Total net revenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $748,821 62% $1,214,100 78% $2,165,096
Net revenues are allocated between U.S. and International geographies based upon the country in
which the seller, payment recipient, advertiser or service provider is located.
The U.S. segment includes our U.S. online trading platforms, excluding those of our PayPal and
Billpoint subsidiaries. The International segment includes our international online trading platforms
excluding those of our PayPal and Billpoint subsidiaries. The Payments segment includes our global
payments platform including the operations of our PayPal and Billpoint subsidiaries. The Payments
segment reÖects Billpoint's historical operations and PayPal's operations for the periods subsequent to
October 3, 2002. We completed our planned wind-down of Billpoint in the Ñrst half of 2003.
Our net revenues result from fees associated with our transaction, advertising and other services in our
U.S., International and Payments segments. Transaction net revenues are derived primarily from listing,
feature and Ñnal value fees paid by sellers and fees from payment processing services. Net revenues from
advertising are derived principally from the sale of online banner and sponsorship advertisements for cash
and through barter arrangements. Other net revenues are derived principally from contractual arrangements
with third parties that provide transaction services to eBay and PayPal users and also from oÉine services
provided by our ButterÑelds and Kruse subsidiaries, which were divested in the second half of 2002.
The successive year-over-year growth in net revenues from 2001 through 2003, was primarily the
result of increased auction and Ñxed-price transaction activity, reÖected in the growth in the number of our
conÑrmed registered users, user activity, listings, gross merchandise sales and payment transactions
processed by PayPal. Our net revenue growth during the year ended December 31, 2003, also reÖects a
full year of payment transactions processed by PayPal, which we acquired on October 3, 2002.
The number of conÑrmed registered users from our U.S. and International segments increased 54%
during 2003 to 94.9 million at December 31, 2003. ConÑrmed registered users increased 45% during 2002
to 61.7 million at December 31, 2002, from 42.4 million at December 31, 2001. The increase in registered
users reÖects steady growth across our U.S. and international platforms.
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