eBay 2008 Annual Report Download - page 4

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time, PayPal’s total payment volume (the total value of all payments made via PayPal) off eBay equaled volume on
eBay, and PayPal Merchant Services revenue nearly reached the billion-dollar mark, up 45 percent year over year.
Skype had a terrific 2008. Revenue of $551 million was up 44 percent, and registered users reached 405 million, up
47 percent from the prior year. More and more people discovered how easily Skype helps family and friends stay
connected, regardless of where they are in the world.
Across our portfolio, technology has always been a key enabler of our growth and a tool to connect and empower
millions of people globally. In 2008, we were recognized for this contribution: eBay Inc. became the first Internet
company to be awarded the National Medal of Technology and Innovation, which is America’s highest honor for
technological and scientific achievement. We’re proud of our technology heritage ... and excited about how we can
build on it in the years to come.
Within our organization, we strategically invested $1.4 billion in our portfolio and still maintained a healthy balance
sheet, ending the year with more than $3 billion in cash. During the year, we also strengthened our management
team and drove greater operating discipline across our company. As the economy began to turn, we took decisive
action early and quickly to simplify our organization, reducing our global workforce. As a result, we entered 2009
with a more prudent cost structure.
Our actions have helped us exit 2008 a stronger company, with a more diversified portfolio than ever; more effective
and diverse ways to monetize our platforms; and a proven business model that has significant growth opportunities
ahead.
A strong company getting stronger
For more than 13 years, eBay has led e-commerce by connecting buyers and sellers. In the process, eBay Inc. has
become a strong company with a leadership position in three of the Internet’s most common activities: e-commerce,
payments and Internet voice communications. Our aim is to become even stronger in 2009 and beyond.
We still have a lot of work to do in our core eBay business. Our priorities around making eBay safer and easier to
use, and improving value and selection, remain consistent for 2009. We are making the necessary, albeit tough,
changes, and we are doing so with focus and conviction.
At the same time, we have a powerful portfolio, one that we believe is not fully credited in the value of the company.
During 2009, we expect that PayPal, advertising, classifieds, StubHub and our other businesses will continue to
contribute more revenue, more earnings, and more opportunities as we grow, scale and diversify the ways in which
we connect buyers and sellers and monetize traffic. We are the global e-commerce leader, and we intend to maintain
and extend that position.
We expect that the macro-economic environment will continue to be extremely challenging in 2009, and so we have
planned conservatively. But tough times create opportunities for strong companies to get stronger. We expect to do
just that in 2009 and beyond. On behalf of our 16,200 employees worldwide, thank you for your ongoing support
and belief in our future.
Pierre Omidyar John Donahoe
Founder and Chairman of the Board President and CEO