eBay 2003 Annual Report Download - page 4

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PART I
FORWARD LOOKING STATEMENTS
This report contains statements that involve expectations, plans or intentions (such as those relating to
future business or Ñnancial results, new features or services, or management strategies). These statements
are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You
can identify these forward-looking statements by words such as ""may,'' ""will,'' ""should,'' ""expect,''
""anticipate,'' ""believe,'' ""estimate,'' ""intend,'' ""plan'' and other similar expressions. You should consider
our forward-looking statements in light of the risks discussed under the heading ""Risk Factors That May
AÅect Results of Operations and Financial Condition'' in Item 7, as well as our Consolidated Financial
Statements, related notes, and the other Ñnancial information appearing elsewhere in this report and our
other Ñlings with the Securities and Exchange Commission. We assume no obligation to update any
forward-looking statements.
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.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 an Internet-
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 platform, 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 our trading platform while, at the same time, supporting
the growth and success of our community of users.
Our Trading 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, enabling sellers to list items for sale in either auction
or Ñxed-price formats, buyers to bid for and 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 and services Ì such as Turbo Lister, Seller's Assistant, Selling Manager
and Selling Manager Pro, which help automate the selling process; the Shipping Calculator, which makes
it easier for buyers and sellers to calculate shipping costs; the eBay Toolbar, which helps eBay users stay
connected with eBay wherever they are on the Internet; and PayPal, which facilitates the online exchange
of funds Ì are all designed to make our trading process easier and more eÇcient. Whether provided by us
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