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CASE 10 • EBAY INC. — 2009 107

EXHIBIT 3 eBay Consolidated Income Statement
Year Ended December 31
5 Year
Consolidated Statement 2006 2007 2008
of Income: (in thousands, except per share amounts)
Net revenues $ 5,969,741 $ 7,672,329 $ 8,541,261
Cost of net revenues 1,256,792 1,762,972 2,228,069
Gross profit 4,712,949 5,909,357 6,313,192
Operating expenses:
Sales and marketing 1,587,133 1,882,810 1,881,551
Product development 494,695 619,727 725,600
General and administrative 744,363 904,681 998,871
Provision for transaction
and loan losses 266,724 293,917 347,453
Amortization of acquired
intangible assets 197,078 204,104 234,916
Restructuring — — 49,119
Impairment of goodwill — 1,390,938 —
Total operating expenses 3,289,993 5,296,177 4,237,510
Income from operations 1,422,956 613,180 2,075,682
Interest and other income, net 130,017 154,271 115,919
Interest expense (5,916) (16,600) (8,037)
Income before income taxes 1,547,057 750,851 2,183,564
Provision for income taxes (421,418) (402,600) (404,090)
Net income $ 1,125,639 $ 348,251 $ 1,779,474
Net income per share:
Basic $ 0.80 $ 0.26 $ 1.37
Diluted $ 0.79 $ 0.25 $ 1.36
Weighted average shares:
Basic 1,399,251 1,358,797 1,303,454
Diluted 1,425,472 1,376,174 1,312,608

Source: eBay 10K SEC Filing; Annual Report (2009), eBay.com.

EXHIBIT 4 eBay Net Revenues by Segment and Geography (in thousands, except percent changes)

Net transaction revenues
Marketplaces $ 3,864,502 21% $ 4,680,835 1% $ 4,711,057
Payments 1,401,824 31% 1,838,539 26% 2,320,495
Communications 189,110 93% 364,564 44% 525,803
Total net transaction revenues 5,455,436 26% 6,883,938 10% 7,557,355
Marketing services and other revenues
Marketplaces 469,788 45% 683,056 28% 875,694
Payments 38,706 128% 88,077 (6)% 83,174
Communications 5,811 197% 17,258 45% 25,038

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