eBay 2005 Annual Report Download - page 2

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increased to $2.010 billion in 2005, a jump of 56 percent over 2004. And free cash flow1 climbed by 59 percent
to $1.574 billion. Few ten year-old companies can deliver this kind of financial performance.
The Power of Community
Our businesses are unique in their strong partnerships with our users. None of these businesses, in fact,
would exist without the millions of men and women who have made them part of their everyday lives. Simply
put, our businesses enable people to take advantage of the Internet to its fullest potential.
An entrepreneurial spirit is core to eBay's community and many of our members are driven by the dream
of owning their own businesses. According to surveys by AC Nielsen, there are now more than 724,000 sellers
in the US who use eBay as their primary or secondary source of income. And more than 170,000 sellers in
Europe do the same.
By connecting people around the globe in new ways, eBay is enabling people to pursue their passions. A
vintage clothing collector is able to source hard-to-find items from the comfort of her own home. A small
manufacturer is able to expand by purchasing equipment on eBay. A couple in Arkansas who started selling
books on eBay is opening their first bricks-and-mortar store. And a single mom in Nebraska is able to spend
more time with her children by selling products to customers all over the world.
The power of community is just as apparent in our other businesses as well. A woman who makes
handmade soaps can accept payments in different currencies through PayPal. Siblings living in London,
Chicago and S¿ao Paulo can send one another money via PayPal to buy an anniversary gift for their parents.
Using Skype, a man in the UK stays in touch with family members on three continents. And a small business
owner is able to provide quality customer support worldwide due to cost savings achieved through Skype.
The Internet offers unlimited possibilities for connecting people in new ways. And on eBay, PayPal,
Skype and our other businesses, we try to deliver on that promise every day.
Our Future
In 2005, the continued advancement of the Internet provided an excellent environment for our company to
expand and flourish. In 2006, we plan to focus on further developing each of our businesses Ì Marketplaces,
Payments and Communications Ì while leveraging the combined synergies of all three. As a result, we believe
that eBay Inc. is well-positioned to grow ecommerce in both existing and new markets and that these efforts will
result in increased value for our stockholders.
We would like to extend our appreciation and gratitude to our communities of users worldwide and thank our
partners, employees and stockholders for their ongoing support and confidence. We look forward to a successful
2006.
Pierre Omidyar Meg Whitman
Founder and Chairman of the Board President and CEO
1eBay defines free cash flow as operating cash flow less net purchases of property and equipment as well as payment of
lease obligations for corporate headquarters, which in 2005 were $2.01 billion, $310 million and $126 million, respectively.