EBay Reports Q4

SAN JOSE, Calif. -- eBay Inc. (Nasdaq: EBAY; www.ebay.com) reported financial results for its fourth quarter and fullyear ended December 31, 2006.

eBay reported record consolidated Q4-06 net revenues of $1.7 billion, representing a growth rate of 29% year over year. GAAPoperating income was $450 million, an increase of 21% year over year, and represented 26% of net revenues. Excluding stock-basedcompensation, operating income increased 33% year over year to $525 million, or 30% of net revenues. Non-GAAP operating incomein Q4-06 was $575 million, representing a 33.4% operating margin and a 28% year-over-year increase.

GAAP net income in Q4-06 was $346 million, or $0.25 earnings per diluted share, an increase of 24% year over year. Excludingstock-based compensation, (net of tax effects), net income increased 35% year over year to $397 million, or $0.28 earnings per dilutedshare. Non-GAAP net income in Q4-06 was $431 million, or $0.31 earnings per diluted share, a 27% year-over-year increase.

For the full year, eBay generated consolidated net revenues of $6.0 billion, a 31% increase over the $4.6 billion generated in 2005.Consolidated net income increased 4% year over year to $1.1 billion, or $0.79 earnings per diluted share. Non-GAAP net income in2006 was $1.5 billion, or $1.05 earnings per diluted share, a 24% year-over-year increase.

The company repurchased approximately 31 million shares of its common stock at a total cost of approximately $1.0 billion during thequarter, for a cumulative total cost of approximately $1.7 billion since the program was announced in July 2006. The company maypurchase up to an additional $300 million of the company’s common stock under this stock repurchase program. In addition, thecompany’s board of directors has authorized an expansion of the stock repurchase program to provide for the repurchase of up to anadditional $2.0 billion of the company’s common stock within the next two years.

"Q4 was an excellent quarter for eBay, bringing 2006 to a very good close," said Meg Whitman, President and CEO of eBay Inc. "Allthree of the company's business units delivered impressive results this quarter, including record net revenues from our Marketplacesbusiness, strong total payment volume on PayPal, and a triple-digit increase in the number of Skype users."

eBay Inc. (Nasdaq: EBAY)