eBay 2009 Annual Report Download - page 61

Outlook
We are cautiously optimistic about the current economic environment for fiscal 2010. We will continue to
focus on driving operational efficiencies designed to enable us to reallocate resources into strategies and
initiatives that we believe will directly benefit our customers and increase activity on our platforms.
In 2010, we plan to continue our emphasis on becoming a more customer-focused and technology driven
company with clear priorities for our Marketplaces and Payments businesses.
The 2010 strategy for our Marketplaces business is to make more progress in trust, value and selection by:
• Offering buyers great experiences they can trust;
• Providing innovative shopping experiences that deliver great value and selection; and
• Providing tools and pricing to make eBay more attractive to entrepreneurial sellers, casual consumer
sellers and large sellers.
The 2010 strategy for our Payments business is to strengthen and expand its position as a leader in on-line
payments by:
• Growing our Merchant Services business through merchant acquisition and increased consumer
preference as we expand our global footprint;
• Continuing to penetrate the eBay Marketplace, especially internationally; and
• Launching new products and accelerating innovation off our platform.
Results of Operations
Net Revenues
We generate two types of net revenues: net transaction revenues and marketing services and other revenues.
Our net transaction revenues are derived principally from listing fees and final value fees (which are fees payable
on transactions completed on our Marketplaces trading platforms), fees paid by merchants for payment
processing services and, until the sale of Skype on November 19, 2009, fees charged to users to connect Skype’s
Internet communications products to traditional fixed-line and mobile telephones. Our marketing services
revenues are derived principally from the sale of advertisements, revenue sharing arrangements, classifieds fees
and lead referral fees. Other revenues are derived principally from interest earned on certain PayPal customer
account balances, interest and fees earned on the Bill Me Later portfolio of receivables from loans and from
contractual arrangements with third parties that provide services to our users.
We generate the majority of our revenue internationally and, accordingly, fluctuations in foreign currency
exchange rates impact our results of operations. We have a foreign exchange risk management program that is
designed to reduce our exposure to fluctuations in foreign currencies; however, the effectiveness of this program
in mitigating the impact of foreign currency fluctuations on our results of operations varies from period to period,
and in any given period our operating results are usually affected, sometimes significantly, by changes in
currency exchange rates. For the year ended December 31, 2009, foreign currency movements against the U.S.
dollar negatively impacted net revenues by approximately $354.2 million compared to the prior year. On a
business segment basis for the year ended December 31, 2009, foreign currency movements against the U.S.
dollar negatively impacted Marketplaces, Payments and Communications net revenues by approximately
$247.7 million, $62.1 million and $44.4 million, respectively, compared to the prior year. For the year ended
December 31, 2008, foreign currency movements against the U.S. dollar positively impacted net revenues by
approximately $70.7 million compared to the prior year. On a business segment basis for the year ended
December 31, 2008, foreign currency movements against the U.S. dollar positively impacted Marketplaces,
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