eBay Inc. (EBAY) Earnings Call Transcript & Summary

Hello. Before we start our event today, I think it's important to begin with a few words about Russia's invasion of Ukraine. This is a terrible moment in history, one that will be remembered with pain and great tragedy for the people of Ukraine as well as its impact on Europe and the rest of the world. At our core, eBay exists to help people and communities around the world. It's part of our purpose, and it's why so many of us work here. And so for us, it's very clear. We stand with Ukraine. We understand the gravity of this situation and we know there are limitations to what one company can do to help, but we are doing what we can. We are taking steps to support our sellers in the region. We've also paused all transactions for buyers and sellers with addresses in Russia. To the people of Ukraine, our hearts are with you. We support you, and we [ grieve ] with you. Even in the midst of this crisis, we continue to hope for peace and safety. Thank you.

Good morning, and welcome to eBay's 2022 Investor Day. I am Joe Billante, Vice President of Investor Relations. We are thrilled that you could join us today as we share more about how we are accelerating the tech-led reimagination of eBay. Throughout the course of the day, you'll meet several members of our world-class leadership team. Let's have a look at the agenda. Jamie Iannone will start by discussing our strategic priorities, the progress we have made and where we are headed. Stefanie Jay will follow and speak about the incredible community of eBay's enthusiast buyers. Jordan Sweetnam and Rob Hattrell will discuss our focused category playbook that is increasing customer satisfaction and growing GMV. Pete Thompson will share how we are expanding our powerful selling platform. Alex Kazim will outline how our robust advertising business is driving growth for eBay's diverse seller base. Julie Loeger will talk about how payments is fueling new and exciting growth opportunities. And finally, Steve Priest will share our long-term financial outlook, taking into account all the plans you hear about today. We will also host 2 live Q&A sessions with members of the leadership team during today's event. Given the current environment, we chose to make this a virtual event. All presentations, with the exception of the live Q&A sessions, were prerecorded last week. The Q&A sessions will take place at a venue on our campus in San Jose, California. We hope to gather together in person for our next event. Before we begin, I'd like to remind you that during the course of this event, we will discuss some non-GAAP measures related to our performance. You can find the reconciliation of these measures to the nearest comparable GAAP measures in the appendix section of the slide presentation accompanying this event. Additionally, all revenue and GMV growth rates mentioned in today's remarks represent FX-neutral year-over-year comparisons unless they indicate otherwise. Management will make forward-looking statements at today's event, including, without limitation, statements regarding our future performance and expected financial results. These forward-looking statements involve known and unknown risks and uncertainties, and our actual results may differ materially from our forecasts for a variety of reasons. You can find more information about risks, uncertainties and other factors that could affect our operating results in our most recent periodic reports on Form 10-K and Form 10-Q. You should not rely on any forward-looking statements. All information in this presentation is as of March 10, 2022, and we do not intend and undertake no duty to update this information. Finally, there are a few housekeeping items. If you experience technical difficulties during the event, please click on the support link located on the right side of your screen, below the questions box. Closed captioning is available by clicking on the CC button located on the screen. [Operator Instructions] Questions may be submitted any time during the event, and we will answer as many questions as we can in the allotted time. A replay of today's webcast and associated presentation materials will be available on our Investor Relations website shortly following the conclusion of today's event. Before you hear from our CEO, Jamie, we're excited to share with you a short video inspired by our community. They are, after all what makes eBay so special. [Presentation]

Hi, everyone. Thank you for joining eBay's 2022 Investor Day. We're grateful for your interest in eBay and in learning about the opportunities we see ahead. I'm honored to be with you today, our first Investor Day since I was appointed CEO. As many of you know, I returned to eBay in April of 2020 after being part of its success in the early 2000s. And as excited as I was to return to the special company, I'm even more excited for what lies ahead. I'm confident you'll leave today with a clear understanding that our new strategy is working. We're accelerating eBay's tech-led reimagination to deliver long-term sustainable growth. In less than 2 years, we have fundamentally changed the trajectory of our marketplace and are now building an eBay for the future. The future is most of what you'll hear me talk about today. But before we look ahead, I want to be sure everyone knows what makes eBay so unique. eBay's purpose is and always has been to connect people and build communities in order to create economic opportunity for all. We built the world's most trusted and sustainable community commerce platform, connecting millions of sellers and buyers around the world. And our purpose is a powerful differentiator. No other company brings together the scale, depth, breadth and unique inventory on a single trusted platform the way we do. When sellers and buyers connect on eBay, many times it's more than just a transaction. They're enthusiasts with shared interest and similar passions, whether it's a rare coin from a century ago, the latest gaming console or in my case, a vintage 1939 Hammond B3 Church Organ that I sold to a local parish and built a great connection with the choir director. Many of the items on our marketplace can only be found on eBay. Our connection with our seller community is truly unique. We don't compete with our sellers. We partner with them. From the first day sellers open their virtual doors, we're there for them every step of the way. We enable sellers to start and grow their own businesses with our tools and support. And success for us happens together, and that's the unique and unmatched power of the eBay platform. Okay. So now let's turn to the accomplishments we've made with our tech-led reimagination. In less than 2 years, we have pursued a strategic pivot that included 3 significant areas of change: First, we simplified our portfolio to drive focus and deliver on what matters most on the eBay core marketplace. In doing so, not only did we return value to our shareholders, but we structured our balance sheet to have the capacity to invest, consider appropriate acquisitions and continue to return value through dividends and share buybacks. Second, we built a world-class leadership team with a vision for the future. And third, we changed direction to compete in the areas of the market where we are uniquely positioned to win. Without question, these 3 changes are working. And we've seen compelling results to date. Our focused categories are returning to market rates of growth. High-value buyers are growing and spending more. Sellers have new tools to drive growth and build their brand at a lower cost, and we've dramatically simplified the end-to-end experience, leading to higher customer satisfaction. While doing all of this, we also modernized and transformed our tech infrastructure, completed our multiyear managed payments migration right on schedule, achieved $1 billion in ads revenue and rewarded our shareholders with strong earnings growth and significant capital returns. Now let's take a closer look at the structural changes we've made to our business. In recent years, we've divested noncore assets, including StubHub, eBay Classifieds and our South Korean businesses. These transactions converted roughly 20% of our earnings into $20 billion of value at closing. In the past 2 years, we have grown our operating income by over $1 billion on an apples-to-apples basis. That's more than the amount of income we sold off as part of the divestitures. We've reinvested proceeds from these deals back into the business. We've increased product and technology investments to accelerate growth in focus categories, build a robust advertising business and create a leading payments platform. As a result, our shareholders have been rewarded. Since early 2020, we've returned close to $13 billion to shareholders through buybacks and dividends. The value of our company has appreciated significantly, outpacing many of our e-commerce peers during that same period. The second major change we made was to our leadership team. eBay is a complex global business, and I needed best-in-class talent to tackle the ambitious strategy we've laid out. I purposely set out to assemble a team with diverse backgrounds that could drive transformation at scale. I also wanted to ensure they were leaders who shared my relentless focus on customer centricity. Today, over 2/3 of the leadership is new to eBay or in a new role. It is a combination of eBay veterans and new talent. All have extensive experience in highly competitive and dynamic operating environments. Collectively, they have deep experience and successful track records in e-commerce, retail, technology and financial services. From Jordan, who is a long-time eBayer and an e-commerce veteran, to Julie, who has 3 decades of experience in marketing and financial services, to Rob, who has a depth of international expertise from a multichannel retailer, we now have a stellar team with diversity of thought and a steadfast commitment to reimagining eBay. This is an exceptionally strong and talented group, and it's truly a privilege to lead this team and work with them every day as we build the future of eBay. I look forward to them sharing our strategies with you and you will see the customer focus and passion when you hear from them later today. And with these great leaders in place, we're attracting and retaining top talent at all levels of the company. Even in this hypercompetitive environment, we are able to recruit world-class talent because of our scale, technology innovation, purpose and our culture. In fact, I'm incredibly honored that we were awarded with Glassdoor's 2022 Employees' Choice Award. It feels great to be recognized by the people who make eBay the company it is. Okay. The third major change was a shift in our growth strategy. Previously, it has been largely focused on competing for buyers and sellers of new in-season products. This strategy strayed from the original purpose of eBay, and it wasn't working. We needed to refocus on what eBay does best, connecting sellers and buyers of [ non-new in-season ] products. And by recentering on what we do best, we sized the incredibly compelling growth potential in [ non-new in-season ] products. It's something that had been there all along, and it's only growing stronger. Winning requires category expertise and unwavering focus on attracting unique inventory, giving buyers and sellers creative and inspiring transactional tools and inventing technology enhancements for each category, keeping us way ahead of our competitors. We firmly believe eBay will win here. By investing in these areas and sharpening our focus, we have untold opportunities in this space. Let's take a closer look. Approximately 90% of our GMV in the U.S., U.K. and Germany comes from categories such as preowned, refurbished, outlet and unbranded goods. These new nonseasoned products are growing faster than new in-season products, a trend we expect to continue. And customer and market trends are very attractive. Categories like luxury, collectibles, refurbished electronics and apparel e-commerce are growing at strong double-digit rates. We believe this is just the beginning and see a tremendous runway for growth from here. The opportunity in [ non-new in-season ] is ours to win. And this is exactly the reason we decided to focus on these categories. Additionally, our scale, capabilities, strategy and unique assets puts us in a strong position to lead in this space. Winning in these categories requires deep knowledge of enthusiast sellers and buyers. We have reorganized and focused on driving industry-leading customer satisfaction and only eBay can deliver best-in-class vertical experiences and rapidly and seamlessly scale them across categories and around the world. That's the beauty of eBay model. Take authenticity guarantee. When we first launched authentication in luxury watches, it took us months to develop the experience. But in only a few weeks, we were able to launch the same capability in sneakers. And since then, we've expanded to handbags and most recently, trading cards. Another huge advantage of eBay is our ability to replicate success internationally. As of today, we have domestic authentication centers in 5 countries, and we're also authenticating cross-border trade across multiple quarters. Customer satisfaction is higher in every category we touched with this service around the world. And the early results of this playbook have been terrific. Based on the feedback we are seeing from our customers, our strategy is clearly resonating. We are delivering best-in-class customer satisfaction scores and in turn, it's leading to faster GMV growth. For example, in Q4, focused categories grew 15 points faster than the rest of the marketplace. We are significantly changing the long-term trajectory of focused categories on eBay. And this success is driving us to go faster to create world-class experiences across our global marketplace. We've addressed close to 20% of our total volume to date. And by the end of 2024, we'll plan to cover half of our global GMV with this playbook. It will take time and investment, but we know that best-in-class customer satisfaction leads to market rates of growth. Later today, you'll hear more from Jordan and Rob about our focused category plans. Jordan has deep knowledge of e-commerce and passion as a longtime eBayer, and Rob leverages his retail strategy and transformation background for our customers across Europe. I'm particularly excited for them to announce a new feature that is going to transform one of our biggest categories. Now let's talk about our buyers. Two quarters ago, we shared that we shifted our focus to high-value buyers. As a reminder, these are buyers who purchase frequently and are highly engaged and are active across multiple categories. They also drive an astonishing 3/4 of our global GMV. I've had the chance to meet many of these loyal buyers. They're the ones who open up their app every day, check prices, check inventory just to see what's new and available on the platform that day. Buyers like Tom Exton, a luxury watch collector in London. Tom has loved watches ever since he first saw his grandfather's Omega. Now he's got his own prized collection, and he's always on our marketplace looking for his next favorite timepiece, and he calls his eBay watch list never ending. The habits of these high-value buyers demonstrate another great multiplier effect of eBay, cross-category shopping. When a buyer shops in their favorite category, they go on to discover we have so much more to offer. And the average enthusiast shops frequently in their favorite category, but the huge and unique benefit of the eBay model is they spend even more outside their favorite category. Let me give you an example. In our focused categories, the average buyer spends hundreds of dollars on their favorite items, but they also spend even more in other categories across the marketplace. For example, take our handbag buyers. They spend about $3,000 on handbags, but close to $5,000 on everything else. Finally, I get a lot of questions about the younger generation of eBay buyers. So I wanted to note that today, eBay attracts millions of Gen Z buyers to our marketplace. Today, you'll see many examples of how we're appealing to the younger generation, including next-generation design, a tailored marketing approach to reach them where they are and leaning in on recommmerce and sustainability, both areas of importance to this group. We'll continue to make this a focus in pursuit of becoming the marketplace of choice for the next generation of enthusiasts. You'll hear much more about how we're focusing on the buyer experience from Stef, who brings deep expertise in global strategy and corporate development and has a strong track record of building high-performance teams, especially in e-commerce. Now let's talk about eBay sellers. There are millions of stories of seller success happening every single day only on eBay. And my favorite part of leading this company is having the chance to meet our sellers, hear their stories and realize the impact eBay has made on their lives. When I meet them, I always ask, how did you start selling on eBay and their answers are as diverse as the sellers themselves. They talk about being inspired to provide for their families or being motivated by a lifelong passion or needing income but wanting to earn it on their own terms; and finally, finding a home on eBay. Like Liz O'Kane, who I spoke with recently. After 2 decades in the Air Force, she wanted to be her own boss. So when she chose her second career, she decided it will be selling preowned fashion on our marketplace. Now she sets her own schedule, help support her family and even started a podcast with tips for other sellers. And she said it's all thanks to eBay. I'm so proud we are here to help sellers like Liz every day. Though sellers have their own individual stories and passions, the common thread is how they found success on our marketplace. And the beauty of eBay is you have consumer sellers selling right alongside business sellers. And in fact, many of these small businesses were created because they started casually selling on eBay and discovered that they can thrive selling on eBay. They're what I call accidental entrepreneurs. Take for example, John Derringer, who I met with recently. Nearly 15 years ago, John got his start on eBay selling a set of used tires out of his dad's woodshed. Today, he runs a thriving small business called Driven Products, where he employs a team of 4 in Washington State. And as I toured his warehouse, it was inspiring to hear John tell the story of his success on eBay. This is just one of millions of sellers who thrive on our marketplace every day. eBay is the platform to become an entrepreneur. No other platform provides a seamless experience and immediate opportunities to get up and running in the same day. Only on eBay can sellers quickly create a listing, set up their own store and within minutes, reach nearly 150 million buyers in 190 markets around the world. And we're here to help with everything from payments to shipping. In fact, our global shipping program is so helpful that in many of my conversations with sellers, they've mentioned they have to go online and search a country they were shipping to because they've never heard of it before. Our seller base ranges from Gen Z-ers who may be exploring new interest to long-established businesses that generate hundreds of millions in sales each year. Regardless of a seller's size, we provide all of our sellers with a number of unique advantages. Our diverse mix of sellers who offer unique global products and the ability for sellers and buyers to connect directly is part of what makes eBay so special. Later today, Pete, who brings leadership experience from building new products at multiple large tech companies will tell you how we plan to make the platform even more powerful for our sellers. From enhancements to eBay stores to the inclusion of video all across the platform to a whole new messaging capability that more easily connects sellers and buyers. In fact, one of the most important tools we offer sellers is our suite of advertising capabilities. These capabilities provide sellers one of the most effective ways to build their businesses and accelerate growth at a better return on ad spend than on other platforms. We have transformed our advertising business over the past few years. We retired legacy ad products that compromise the buyer experience, and we replaced them with powerful growth tools for sellers while providing buyers a streamlined eBay experience. We scaled Promoted Listings, an ad product that keeps buyers on eBay and help sellers drive incremental sales. And along the way, we've doubled our ad revenue from 2017 to 2021, growing to over $1 billion. Even though we are primarily an e-commerce business, eBay has now become also a top advertising platform. But this was just the beginning. Over the past year, we invested in a more robust advertising portfolio, one that serves all types of seller needs. We started rolling out new products, and early tests are demonstrating that the next wave of advertising growth is already underway. Alex Kazim, our Head of Advertising, who is also an entrepreneur and a seasoned technology leader, will provide more insights on our strategy and discuss our plans to double the business again in the next 4 years. Now turning to another important area for growth and innovation, payments. 4 years ago, we set out to build our own capability to manage payments on our platform. By transitioning to fully managing the payments flow on eBay, we added an incremental $2 billion in revenue. It was a huge undertaking, and I'm so proud of the team who worked tirelessly to deliver this game-changing experience. The work we've been doing through managed payments is now opening up valuable new opportunities for our community. With our payments migration complete, we have an even greater ability to remove friction for sellers and buyers. One example that sellers love is the elimination of unpaid items. By managing the money flows on our marketplace, we can ensure that our seller gets paid for each sale. In fact, as I mentioned during our earnings call a few weeks ago, last year, we removed friction on over 10 million transactions. And this year, we plan to expand this capability to our unpaid items in our best offer format. I love hearing from our sellers that this has saved them time and money. With our own payments capability, we can now offer new compelling features. And today, I'm thrilled to announce eBay's first digital wallet where you can store a cash balance. Customers will soon be able to easily accumulate a balance in their eBay account to spend on their next favorite item. Allowing customers to seamlessly turn their sales into purchases is yet another example of a unique eBay multiplier effect. With our scale, resources and talent, the opportunities for payments are just endless. Julie, who has decades of experience in financial services and marketing will walk you through more exciting financial services updates later today. Finally and most importantly, we've begun a massive transformation of our infrastructure as we build new world-class technologies, and we're using tech in completely different ways. Let me give you an example. Mazen, our CTO and his team have hundreds of AI specialists and data scientists all working together. They're creating customer-centric solutions to complex problems. These range from how our call centers are using voice technologies to computer vision models that recognize every image to even something as simple as how we're classifying sales tax on billions of transactions, which we use a sophisticated model based on AI that saves our sellers' and buyers' money. These are just a few of the examples of the AI we've recently built, and we're using technology to modernize eBay and make it compelling, much more seamless and relevant to the next generation of customers. And all of this is powered by more than 25 years of data. Only eBay can leverage 83 billion lifetime listings and with it, 37 billion points of feedback and almost 3 trillion customer behavior data points. Think what we can do with this data over the coming quarters and years. Recently, you've seen us roll out features like price guides for trading cards, cross-border fitment for parts and accessories and my collections, but we're just getting started, finding new ways to leverage our data to make both the selling and buying experience richer and more expansive because only eBay has this unique treasure trove, the transactional supply and demand commerce data at this scale. Just imagine what else is possible on our marketplace as we continue to apply this next-gen technology. We are doing all of this amazing work while staying true to what eBay has always been, a purpose-driven company. We exist to connect people and build communities in order to create economic opportunity for all. And I'm especially proud of what we're doing for the planet and for our global community. We are the pioneers of circular commerce, which we like to call recommerce. Every day, we help extend the life of products through the resale of refurbished products and pre-owned or as we like to say, pre-loved items on our marketplace. By keeping products in circulation longer, we contribute to a more robust economy that's essential for the sustainability of our planet. Our community enthusiastically embraces this as demand for preowned and refurbished goods continues to rise. We recently completed our second annual recommerce report, which will be published in early April. We found an astonishing 83% of respondents have consistently been selling secondhand goods, and 32% of Gen Z sellers starting in the last year. And they're not just selling. 74% of sellers globally purchased secondhand goods in the last year, half of them at least once a month. And Gen Z-ers are leading this charge with 80% having bought preowned goods in the last year. More and more people are selling and buying preowned goods in an effort to boost their income to save money and to live sustainably. Recommerce has been part of our purpose from the very first day of eBay, and now we're significantly increasing our dedication in this space. We've set a new commitment to create $20 billion in positive economic impacts and avoid over 7 million metric tons of carbon emissions by 2025 through sales of pre-loved and refurbished items on our marketplace. Over the past year, we've also set a series of new sustainability goals. These objectives integrate best practices to support a healthier planet for our community for generations to come. We're investing in clean energy with a goal to source 100% renewable energy by 2025, and we're already 3/4 of the way there through power purchase agreements and local programs. Last year, we set a science-based target to prevent the worst effects of climate change, and we pledged to become carbon neutral for all of our offices and data centers, a goal, I'm thrilled to say we've already achieved. However, our efforts go well beyond environmental sustainability. 20 years ago, I had the privilege of being part of the team that built eBay for Charity. This capability enables sellers and buyers around the world to easily contribute to the causes they care about. Think about it. A seller is able to clear out their no longer used items, donate them to their favorite nonprofits and get a tax receipt. The buyer gets the item they're looking for, but also feels great about donating to a nonprofit. And the nonprofit gets what they can use most, which is cash. It's a win-win-win. And through the power of our community, eBay for Charity has seen over $1.1 billion in donations since 2003 for nonprofits around the world. And we're on track to hit our 2025 goal of raising another $600 million. It's truly incredible how our community comes together to help those in need. We're also using our technology to fuel positive change. At the start of the pandemic, the U.K. National Health Services reached out to eBay and asked how we could help deliver PPE to health care workers at no cost. Our engineering teams jumped at the chance to help, and they created a custom portal in just 10 days, leveraging the power of our APIs and our developer network. And I'm proud to say now that over 6 million PPE items have since been distributed through this portal. That's the power of eBay. Before I conclude, I'd like to spend some time on a high-level view into our financial outlook. As I mentioned earlier, eBay has provided shareholders significant returns over the last couple of years. Our financial model, earnings power and cash generation are incredibly strong. Looking ahead of the next 3 years, I'm excited about our sharpened focus on the customer and the value the tech-LED reimagination is creating. These plans present a compelling financial profile. By the end of 2024, our focused categories will cover half of our business and will grow near market rates. Advertising and payments will drive incremental revenue growth. We will continue to invest in technology and marketing while increasing operating income between '22 and '24. Our strong cash flow allows us to continue returning capital to shareholders while pursuing growth opportunities through M&A, and all of these factors together will lead to sustainable double-digit earnings growth. Steve will go into more detail about our financial outlook later today. Before you hear from the rest of the team, I'd like to thank our sellers and buyers throughout the world and thousands of developers and other partners who help extend our eBay ecosystem. And I'd be remiss if I didn't mention and give a huge thank you to our incredible eBayers. They have worked tirelessly on everything I've covered today. They are a passionate, hard-working and dedicated group of amazing people, and they truly inspire me every day. So thank you, team. Thank you for making eBay what it is today and what it will become in the future. Thank you all for spending time with us. And now I'll turn it over to Stef Jay, who will tell you more about our buyers, and I look forward to answering your questions later today. [Presentation]

Hi, everyone. Now I want to talk about our buyers, more specifically, our best and most valuable buyers. Since last year, we've been sharing details around what we call our high-value buyers. These are avid collectors, category fanatics and buyers who also sell. And today, we're going to share even more detail on the best of the best, who we call enthusiast buyers. Let me start by grounding you in our entire base. Our global buyer community is 147 million strong, and they are as diverse as the inventory they shop for. Now why do these buyers come to eBay? It's because they are sure to find whatever they're looking for. Not only can they find unique inventory, they can find it at a great value. They come for inspiration and discovery, and they don't mind splurging on the perfect find. And for some, shopping is a thrilling adventure. Whether it's a Balenciaga bag sold by a collector in Berlin, a used iPhone offered by a 20-something from San Francisco or a new set of rims from a car parts expert in Malaysia, it's all on eBay. And every day, our passionate buyers and sellers connect over these items of value and meaning. Our buyers are especially important to our ecosystem because they also attract sellers. Nowhere else can sellers have immediate access to 147 million potential customers around the world. Now that we know what our buyer base looks like, let's recap what we call our high-value buyers and why they're so important to us. 20% or 28 million buyers are high value. Within high-value buyers, there are 2 groups: our enthusiast buyers and our occasional buyers who also sell. Occasional buyers who also sell are active on both sides of the flywheel. Both groups are important to us, but today, I'm going to focus on our enthusiasts. They are our most productive buyers and are essential to our growth strategy. They drive the vast majority of our GMV. They're high frequency, high spend and many of them sell. These enthusiast buyers drive 71% of our GMV. They are the most powerful buyer base on our marketplace, and depending on the category, they spend 9x more than the average buyer. We know them. We learn from them, and we invest in them. We have 19 million enthusiast buyers, and on average, most of them shop with eBay over 30 days a year and spend more than $3,000. Let me just pause on this point because it's a really important one. These buyers shop more than 30 separate times per year. That's a key differentiator for us because they aren't just buying all these items at once, say, during their holiday shopping spree. They're coming to us regularly throughout the year. From day 1, these enthusiast buyers are extremely engaged. In their first year, they visit the site more often, they purchase more frequently, and they're more interactive with our seller community. And they're super sticky. On average, new enthusiasts increase their spend and purchase days by 50% after year 1 on eBay. Okay. So who are they? They're people like my friend, Marty, who's a motorcycle collector and trader. He tells me that he's on eBay all the time, checking to see what's available. He knows which sellers to follow and just enjoys the hunt for the next bike or parts. These buyers are people who've made it a habit to engage with eBay every day or in Marty's case several times a day. Enthusiasts are at the center of the eBay buyer flywheel. To me, they're so inspiring. They're super passionate about their hobbies and over time, many become successful sellers. Take Yinka for example. He started buying when he was still in high school. He's a sneaker lover who bought so many sneakers they were spilling out of every room in his home. Because he knew our platform so well and trusted us, he turned to eBay and started selling his collection to make room for more. He now has a thriving business on eBay and connects with other passionate enthusiasts. Yinka is a perfect example of what Jamie calls an accidental entrepreneur. Let's take a look. [Presentation]

I just love that video. All right. So let's talk about this unique multiplier effect that occurs on eBay because of our scale and our business model. I'm going to set the framework for you before we dive into the details. Here's a visual to help us walk through it. As I mentioned, these enthusiast buyers spend more, buy more often, and they remain very sticky. They start with an amazing entry experience where trust is built with the first purchase and then they cross shop in other categories and international merchandise. And eventually, they start selling. Once we have them buying and selling, loyalty kicks in and really spins the flywheel. Let's take an example. In our motors, parts and accessory category, a typical enthusiast spends $1,200 per year on parts and accessories. But then they spend another $1,500 in other categories and international items, bringing their total value to $2,700. And then on top of that, when they start selling, they then drive more spend by other buyers, so you can really see that multiplier effect at work. So let's start with why that initial introduction and entry category to our marketplace is so important. You've been hearing a lot about our focused category strategy. And one element of that strategy is to drive greater initial consideration through a new approach to full-funnel marketing. We're targeting enthusiasts across the funnel and increasing top-of-mind awareness and consideration amongst this really valuable group. For example, we recently launched a new ad campaign for eBay Motors that focuses on real people and enthusiasts, celebrating the type of P&A customer who comes to eBay for exactly what they need. You may have seen some of them and especially if you're a car enthusiast. We're also targeting the next generation of buyers, connecting with them wherever they are and becoming more active on social platforms. Take TikTok. We recently launched a [ relief fund ] campaign with the [ hashtag Step and Flex ]. And so far, it's received over 12 billion views and growing every single day. It's also inspired about 2 million user-generated videos. In the coming year, you'll see us reaching out more and more to enthusiast buyers through full-funnel marketing campaigns. So once we've brought them on to the marketplace, we serve out a great experience with features like authenticity guarantee, grading and fitment. And after they have that great first trusted experience, they're more open to cross-category shopping. To encourage the expansion from one category to multi-category, we're training our AI and computer vision models to guide our customers and make recommendations in differentiated ways, including introducing buyers to new categories. Take a buyer searching for a vintage Gucci handbag. Our visual technology leverages our vast image catalog to recommend similar handbags so we can surface options better than any others, delivering credibility and depth. And while the buyer is shopping for that handbag, we're also able to suggest apparel that completes the look or items in adjacent categories like home decor. Soon, we will also give these enthusiast buyers the opportunity to share their specific interest with us. And in the coming quarters, we're launching our unified experience platform, a critical AI tool that provides tailored messages and exposure to new products, which leads to that great next category. Other players may do this, but none of them have eBay's breadth and depth of unique inventory to power those recommendations. The data behind cross-category shopping on our site is already really promising. In fact, we know that enthusiast buyers on average shop 8 other categories. We're leaning into this even more to drive growth. So we don't just get cross-category multiplier, but we also get a global buying multiplier. In addition to increasing the inventory options, our cross-border trade capabilities offer a seamless experience while making borders invisible to our buyers. Nearly 90% of enthusiast buyers have purchased from international sellers. And with our new payment functionality, faster shipment features and forward deployment of inventory, it's easier than ever to purchase across borders. Now let's talk about another multiplier factor in the model, enthusiast buyers who sell. You've heard Jamie mention that our buyers who sell are more than twice as valuable, and right now, 1/4 of our enthusiast buyers are selling on eBay. These are people who are embracing tradable assets, vintage fashion or refurbished electronics. Cultivating buyers who sell is a big focus for growing our Gen Z base. These young enthusiasts are often flippers or traders. They shop electronics more than other eBay buyers, particularly refurbished, not only because of the value but also because they care about keeping items out of landfills. They sell and trade up when their assets or trends change and with millions of Gen Z buyers globally and an understanding of what they've purchased, we have the opportunity to encourage them to also sell on eBay. I was recently listening to a Gen Z-er during a customer feedback panel, and this young woman was talking about being able to both buy and sell authentic concert T-shirts on eBay. She was thrilled because she was able to clean out her closet, sell her pre-loved clothes and earn enough money to fund different wardrobe pieces. Gen Z-ers collect and trade just as much as the rest of our enthusiasts. Lastly, let's talk about engagement and loyalty. Our seller strategy complements our buyer strategy, furthering the multiplier effect. Pete will share more about how we've completely overhauled our stores feature and now sellers can present offers directly to loyal buyers. This kind of engagement builds loyalty and community between buyers and sellers. Over time, we'll continue to build even more tools for sellers to drive repeat buyers, similar to the buyer-specific promotions we now offer. This is pretty magical. EBay and the seller are working in tandem to build buyer loyalty. And then things like our Top Star rewards program for top enthusiasts, which Rob is going to talk about more in a minute, and adding an eBay digital wallet, which will further build loyalty and sellers' monies will be waiting for them when they are ready to make a purchase. You'll hear from Julie about this exciting launch later today. I've covered a lot of ground in the last few minutes. Collectively, these actions create a powerful multiplier model. It's worth repeating. Enthusiast buyers shop with eBay over 30 days a year and spend more than $3,000. We're nurturing and growing this incredibly important and productive customer base. We offer them unique and differentiated opportunities which, in turn, enable a number of levers that we can pull to drive growth and create strong engagement and loyalty, leading to an incredibly healthy long-term business. When I joined eBay a year ago, I was really struck by the amazing passion that is running through the customer base. eBay is truly an enthusiast marketplace. These buyers are at the heart of our eBay community and the flywheel. EBay is a daily habit for them. Also, seeing firsthand the joy and energy of a card collector talk about [ greeting ] or a vintage T-shirt collector describe what it was like to find that hard-to-find T-shirt has been incredibly eye-opening. It's really fun, inspiring, and it's no wonder that this energy powers our multiplier model. The buyer strategy and focus categories are inherently connected. Incredibly, 94% of our enthusiast buyers shop in our focus categories. So if we continue to get that right, the opportunities are endless. Jordan and Rob are up next, and they're going to go deep into our game-changing focus categories.

In our 26-year history, many things about eBay have been dramatically altered: the way the site looks, the functionality and the way we pay. But one thing hasn't changed; eBay connects buyers and sellers, 147 million buyers and 17 million sellers all over the world. In every category, eBay was the original place for enthusiasts to come together. We catapulted the Beanie Babies craze of '90s, created the secondary market for sneakers and have auctioned an incredible 20 lunches with Warren Buffett to raise millions of dollars for charity. We are and will remain a community of enthusiasts. For enthusiast shoppers, the bar has always been high. They want the best place to find everything and to be able to buy and sell with complete confidence. And the #1 driver of that is trust. It is the foundation of every transaction dating back to our beginnings. We stood for trust then as the first peer-to-peer marketplace and are doubling down on trust now. While eBay's tech has made it easier than ever to shop and shipping enhancements have made it faster and cheaper to receive things, the innovations we're making when it comes to customer confidence are truly exciting. Delivering the most trusted experience does look slightly different category by category. So to give you a sense of the spectrum, in sneakers, luxury and collectibles, it's about the seal of authenticity. In parts and accessories, it's about the perfect fitment for your car, truck or motorcycle. And in heavy equipment and refurbished tech, it's about condition grading. We know this is eBays to win. Today, I'm going to tell you about the steps we've taken to evolve the business and where we're going next. Our playbook is threefold: number one, understand the customer and their needs; number two, build experiences they will love and do it at scale; number three, tell our story in new and different ways. First, we focused on particular categories, starting with the customer. With our roots in enthusiast shoppers, there was no doubt that if we set our sights on a particular target, we would be successful. However, we had to change the way we worked and started by hiring new leaders with deep expertise. We recruited entrepreneurs, CEOs and enthusiasts to lead what we call our focus categories. These are experts who have grown up in these categories. They wake up each day with a clear focus and work with their dedicated teams to build businesses that delight our customers and develop them to scale. So what does scalability really mean? It means we build something for one category that can then be slightly tweaked and customized in order to easily expand that same offering to another category or even another country. Tech is the enabler here, the product, the infrastructure and the logistics. The goal was to determine what mattered most to customers; and for many of these categories, it was about nailing the fundamentals of trust. We made our first big move 18 months ago and launched Authenticity Guarantee, eBay's official program that uses industry experts to vet and verify inventory for both luxury watches and sneakers. So any watch over $2,000 or sneaker over $100 was automatically sent to an authentication center and inspected by an expert and then shipped on to the buyer. eBay was now taking control of the user experience and authenticating items that were high passion and high value. And we were managing other parts of the experience as well from payments and shipping, to the communication between buyers and sellers. These are all things that eBay is now doing to ensure that every part of that transaction is trusted. So why did we start with watches and sneakers? Well, we knew these shoppers wanted to know, above all else, that they were getting authentic inventory. These are fast-growing categories, younger audiences and enthusiast customers who shop across eBay. This customer is key to eBay's success. As you heard from Stef, the average enthusiast buyer shops across 8 categories, creating what we call the eBay multiplier effect. When we serve these shoppers well in their passion category, they stay with us and spend elsewhere in other categories on eBay. Let me tell you a little bit more about how Authenticity Guarantee actually works. As of today, eBay offers multi-point physical authentication inspection for items in 4 key categories: watches, sneakers, handbags and our most recent addition is trading cards. After a high-value item leaves a sellers' hands, but before reaching a buyer, it is sent to an authenticator who acts as an intermediary of the product's authenticity. For watches, our independent authentication partner confirms the watch is consistent with the listing title, description and images. Then they perform a multi-point inspection that focuses on all the following: the crown, the bezel, the dial, the clasp and buckle, the hands, the end links and the serial number. As for sneakers, we recently acquired Sneaker Con, an industry-leading sneaker authentication service. The in-house team professionally trained authenticators verify the box and checks everything from the sizing labels, the soles, the stitching, the logo, the heel tabs and the laces. They even inspect the condition of the box, which is really important to sneakerheads. So check out this video to see how it works. [Presentation]

We handle nearly 5,000 items per day with the help of 200-plus incredible authenticators in centers around the world. Since introducing Authenticity Guarantee, we have authenticated more than 2 million items in 4 categories. And in the next 24 months, we expect to surpass 5 million items, more than any other player will have done in their lifetime. So is it working? The answer is yes. Trust is the most important element and solving it moves customer satisfaction, also known as CSAT. Compared to Q4 2019, CSAT has risen significantly and high-value buyers are up. We're seeing happy customers spending more across the site, and they're coming back more often. So why does this matter? An increase in CSAT moves GMV. In both sneakers and watches, we were losing share and our business was performing below market. What did we do? We applied our playbook, we fixed CSAT, and we turned the business around through higher repeat rates and increase customer acquisition. You can see in these charts how we changed the trajectory. Now in categories where we've enhanced the experience, our growth rate is outpacing the rest of the platform by 15 points. This is significant. Tech has played a major role in our transformation. For sneakers, NFC-enabled tags are attached to each shoe before being shipped to the buyer. These tags are high-tech digital records with authentication information that let customers discover the history of the item, when it was purchased, when it was authenticated and all the relevant details like size and average price. What's awesome for customers is that when they're ready to sell down the road, they can simply hold up their phone, scan the tag with the eBay app, and it opens up a prepopulated listing that is almost as simple as a single click. Last year, we also introduced enhanced 3D tools. This allows sellers to display their items on our site in a really interactive, high-definition 3D view. You're able to see the item from all angles, just like a store owner could hold it up for a buyer in real life and the amazing zoom functionality lets you study every crease, smudge or detail. We built this feature after talking to our top sellers. And what we heard is that especially for preowned high-passion items like a one-of-a-kind Gucci handbag, they wanted a better way to show the exact details of their unique products. Even the best 2D images can't deliver a wow moment like this. It's perfect for the unique inventory on eBay, and it gives buyers the confidence to make these high-value purchases. I'm now going to hand over to Rob, who will share how the strategy is scaling to other categories and other countries.

Hi, I'm Rob Hattrell. I'm the Senior Vice President of eBay in Europe. In the U.K., a sneaker is a trainer, but an enthusiast is still an enthusiast. And eBay is a global marketplace and the strategy is the same regardless of continent or country. Sure, the U.S. is a larger footprint, but what we activate there is applicable across the world. Once the foundation is ready, we are able to move quickly to multiple countries and categories. But I want to double-click on scale. Since the beginning, our strategy was always about how we would scale. It wasn't enough to change a tiny fraction of the site with each new category, with each new country, it gets easier and faster as we become more efficient. It took us 5.5 months to launch authentication for watches, but then only 5 weeks to launch sneakers. We've expanded to 4 categories across 5 countries since the 2020 debut. And we've kept up the pace. In fact, on average, we added a new country or category every 8 weeks. We're seeing tremendous growth with international buyers. We will authenticate 200% more items in international markets year-on-year, and that rate is accelerating. It's crazy to think that we went from 0 to 2 million items in just 2 years, and we aren't slowing down. We just walked you through our playbook for what we did to evolve the business, understand our customer and their needs, build experiences they would love at scale and tell our story. Knowing and delivering what customers want is crucial, but what we also need to do is find new ways to help them realize we're a very different eBay. And on this front, we're engaging with them and telling our story in totally new ways. More and more, we're going to where our audiences connect, discover and influence. This includes pioneering a TikTok experience, investing in Twitter and establishing communities like eBay Seller Club on Instagram. We even took authentication on the road, setting up mobile authentication centers in top markets, allowing us to introduce the community to authentication and work with top athletes, musicians and social media influencers who shared passions in these categories. Did you know that Miami Heat's PJ Tucker is one of our biggest buyers? He's a legend within the sneaker community and often promotes eBay by telling his fans why he shops with us. Once people get to know the real eBay and what we have to offer, they're our biggest advocates. One thing we know about enthusiasts, both buyers and sellers, is they love to tell their story, whether a latest purchase or that unique item on their wish list. And that's why we've created a new loyalty program called Top Star, specifically for those buyers who want to share their eBay experiences. This has been really effective in categories like sneakers, where tens of thousands of people have asked to become more involved. And we tripled new buyers and they're spending more. We're deepening our connection with enthusiast communities, and this doesn't happen by accident. Instead, we're marketing them differently and engaging with the right voices and the right mix of influencers. We're excited about the results to date. But where do we go next? The 2 largest categories on eBay are parts and accessories and collectibles. So here's how we're going to take the playbook there, starting with P&A. In a nutshell, P&A is an enthusiast category at scale. There are more than 40 million P&A buyers worldwide shopping our marketplace with 0.5 billion live listings. This is a large and established business where eBay is already a leader. And in this category, it all comes down to confidence; confidence in quality, confidence in value, and most importantly, confidence the buyer will receive the exact item they need and that will be a perfect fit for their vehicle. And despite short-term inventory challenges in the overall industry, our supply continues to grow as more sellers are attracted every day to the scale of our marketplace. In P&A, the inventory is deep, and we have the right data. What's important to buyers is finding the right parts for their vehicle that will enhance their experience of owning it. But that's complicated. There are 3 million different types of cars, trucks and motorcycles on the road. Each contains around 25,000 parts. Many of those parts are unique, where only 1 product expertly designed and manufactured would do the job. And eBay solves this buyer and seller problem with our fitment and finders experience. We've integrated the best of market data with our own technology and proprietary eBay data. And that means tens of thousands of buyers able to get their exact right part from a cross-section of our sellers. And on any given day, a customer in the U.K. might buy an original hood emblem from a seller in Canada for their vintage roadster made in Germany. And we'll continue to expand. 1 out of every 3 eBay shoppers buys parts and accessories as an explosion in growth in new and emerging areas of vehicles, green parts, electrical vehicle parts, boat parts and parts for quad bikes. More customers want their parts to store from home or near their home. They want to be able to book online through a trusted experience. We will build on our base of buyers and sellers, enabling them to get their part and then also will help with the installation. In short, our business is amazing in the U.S. and unstoppable in Europe. We're the #1 online marketplace for parts and accessories in the U.K. and Germany. We have unmatched scale and a vibrant community, and this is just the beginning for us in P&A. So now I'm going to hand it back to Jordan, but first, here's an ad spot from our new P&A marketing campaign that brings our story to life for our enthusiasts. [Presentation]

Thanks, Rob. So let's talk about another amazing category where eBay is a leader, trading cards and collectibles. There has been exponential growth both here in the U.S. and around the world. Cards and collectibles have surged over the last 3 years, and this is not a fad. Within cards and collectibles, you'll find enthusiast buyers who sell and sellers who buy almost like a continuous loop. It represents the next generation of customers. Often, they are moving from cards and collectibles as a hobby to investing in collectibles and NFTs as an entirely new asset class. The core enthusiast and collectors are a foundation, but through new tech capabilities and greater confidence, this audience is continuing to expand. These categories include high-value items, and we're breaking new records all the time. In fact, just last month, we sold a Tom Brady rookie card for an incredible $2.3 million the day after he announced his retirement. So let's take a look at this video. It lays out where we are today, where we're going next quarter and what we expect the next 3 years could look like on this category. [Presentation]

You just saw an unprecedented suite of offerings, and I'd like to spend a few minutes talking about something that will be a game changer for us. Today, we are announcing the Vault, which we'll launch in the U.S. next quarter. This will be a 31,000 square foot secure storage facility and digital marketplace for trading cards, collectibles and with a future expansion to luxury goods. First, the Vault provides peace of mind for our customers. They know their valuables are secure and can manage their portfolios digitally. And here's where things get really exciting. Once an item is in the Vault, instant sale becomes a new reality. Ownership can transfer from a seller to a buyer in a matter of seconds. There's actually no need to reauthenticate and there's no need to ship the item anywhere. So I know a lot of collectors who will gladly leave their items safely in our Vault for years. But one of the things that I get really excited about is what this means for enthusiasts and investors who could actually buy and sell the hottest rookie cards based on how plays are unfolding during a game. In fact, with no shipping, you could actually buy and sell instantly multiple times based upon the winning plays in the final mode of a tight game. Keeping inventory within our ecosystem represents significant GMV and revenue upside. And with no shipping or transaction risk, when items trade within the Vault, the cost [indiscernible] on these transactions is a fraction of a traditional sale. The Vault is the intersection of physical and digital and is the future for collectors. Within a few years, we expect our Vault will hold up to $3 billion in assets. This would make it one of the largest stores of nongovernmental assets in the world. And then there's live commerce. In a category like cards, can you imagine the advantages for buyers and sellers? For example, a hobby shop owner could spend half an hour talking viewers through his rare inventory and an enthusiast 5,000 miles way who's looking to complete her collection could buy the exact thing she wants with the seal of authenticity. The Vault will allow us to do cool new things, and one example of that is fractionalization. For example, someone could sell 20 shares of their Jordan rookie card from the Vault. eBay is the connector, in this case, matching a seller with multiple buyers. This is all a natural evolution as we see enthusiasts investing differently and cards, collectibles and NFTs becoming their own asset class. 18 months ago, this all would have been unimaginable. Everything has built to this. We established the right teams with deep expertise and the best product experiences. We spent 1.5 years demonstrating how eBay has built a more trusted marketplace. Now collectible enthusiasts are turning to eBay to price, manage and store their high-value collections, all with complete confidence. By the end of 2024, half of each dollar spent on eBay will be in one of these focus categories where we are wowing our customers. By now, you can hopefully envision where we're heading. We started with sneakers, watches and handbags, are expanding to cards, collectibles and parts and accessories; and there are many more exciting categories to come. For enthusiast everywhere, we're nailing the fundamentals of our trust strategy and then innovating to meet and exceed customer expectations. These communities are vibrant on eBay, and we will over-serve them. Though the current focus categories might not touch on every seller's business or inventory, it reinforces eBay as a trusted marketplace and helps drive new business and consumer loyalty. We know that delivering in these enthusiast categories has an incredible impact site-wide. In fact, 2/3 of their spend comes outside of their passion category. This is a very different eBay. We aren't just leaning into the best of our marketplace. We're going faster and getting even sharper to delight our customers. We've changed the way we work and are taking bolder moves than ever before. When record-setting results happen, it means our strategy is sound, smart and durable. It also means that as these particular committees thrive on eBay, buyers are engaging with other sellers across the entire marketplace, and that's the key. eBay has a remarkable combination of inventory breadth and community. Our platform goes beyond reviews and brings together people who are passionate about their interests. They get information from one another, and they want to share their expertise. No other marketplace can deliver that kind of community at our scale. [Presentation]

Hi, everyone. It's great to be here with you today. So far, you've heard from Stef, Rob and Jordan. They've told you how we're recentering our focus on our most valuable buyers. We're creating experiences that attract enthusiasts, and we're pivoting our strategy to areas where we can win. Now let's talk about our sellers, and let's look at how we empower them as part of this strategy. We partner together. When our sellers succeed, we all succeed. So we want our technology to enable our sellers to reach these enthusiasts and to do so at scale. eBay is the only online marketplace where someone can open their virtual store and immediately access millions of buyers around the world across enthusiast communities in all categories. Sellers can build their own brand through our global marketplace and robust technology. Whatever their size and their needs, eBay enables them to succeed through flexible services and tools. How are we doing this? We're making it simpler for sellers to onboard inventory. We're removing transactional friction for both buyers and sellers, and we're enabling sellers to build their brand, so they can create lasting relationships with enthusiast buyers. It's a win-win for all of our customers. Whether it's trading cards, vintage handbags or cool tech toys, whatever people's passions, they come to eBay to buy it and to sell it. We know that the average household has thousands of dollars worth of goods lying around their home. Our consumer sellers often start out by selling these preowned items. Regina Michelle is a great example. An avid thrifter, she had closets full of vintage fashion. So she puts some on eBay, and that started her passion for selling. In addition to her day job, she's now turned her hobby into extra income, and she hopes one day to sell on eBay full time. Our shoppers want to find an endless, rich supply of goods at their fingertips, and our mix of sellers is key to providing that inventory across all categories and conditions. So we're making it simpler for sellers like Regina to get their inventory onto the marketplace and making those items available to buyers around the world. We're excited to announce that we'll be rolling out a brand-new way to list across all platforms. We call it our unified listing experience. It's built on a completely modern tech stack. We're using AI to ease the hard work, so sellers can focus on selling. And we have an enormous amount of data. Our new listing flow leverages that data to take the guesswork out of the process. Sellers are excited about our new features. We're providing robust guidance in the unified listing tool. Sellers can see the average price of what they're selling on our marketplace, and they're just one click away from seeing recent sales trends and insights to help them perfectly price their items. Sellers can also get information that simplify shipping with automated defaults and shipping recommendations based on their specific items. Soon, everyone who's on our new listing tool can upload videos in their listings, so sellers can truly bring their product descriptions to life. Imagine a P&A seller showing how to install a windshield wiper, a musician showing the full range and sound of their instrument, a fashion seller showing the movement of a dress. This is a game changer, and it's all designed for sellers to maximize their time and profit. We're already seeing the benefits for business sellers using our new listing tool. Listing time is now cut by 30%, and this modern tech stack allows us to innovate more quickly with the ability to customize the selling experience in each category. In 2021, we built a new capability backed by computer vision where sellers can use their phone to magically recognize their item and then automatically pre-fill a listing. And now I'm thrilled to share that we'll bring this experience to life for sneakers, also using computer vision and text recognition. It's another brand-new capability we're about to launch. Sellers just simply scan a shoe label, and the listing information is automatically filled in. It's straightforward and quick, and we look forward to expanding this to more focused categories in the future. We've brought together a world-class AI team with a world-class library of billions of images and items to create an incredible experience. This is the power of eBay. And for sellers, we know the experiences we build need to be smooth and frictionless. So we've started introducing new features and tools to make sure this happens. As Jamie mentioned, in 2021, we implemented new transaction flows and policies to address unpaid items. Today, we've effectively eliminated unpaid items on fixed-price transactions. Now that we're fully migrated to our managed payments platform, we'll make similar improvements to our best offer format. This will ensure that sellers are paid immediately. We also use community connections to make the seller experience more seamless. When new sellers want help, they can turn to mentors within the seller community for advice, and in the past year, we've created new tools that help sellers get up and running faster. We've created an interactive service that allows them to get advice from more experienced sellers. As these new sellers scale, they absolutely love the encouragement and guidance they get from real expert sellers across areas like shipping, multiple offers and Time Away settings, and it helps to accelerate and empower their growth within eBay. We've realized that smoothing the way forward must include making all of our sellers' supply available to buyers around the world. Our enthusiast span the globe, so our sellers must be able to meet them with ease. We want Regina to just to seamlessly sell a vintage jumpsuit from her home in Alabama to someone in Japan or Australia as she does to a buyer in California. Our global shipping program already streamlines cross-border trade, making international shipping as straightforward as domestic shipping for sellers, and later this year, we'll start to significantly expand the global shipping program. We'll remove the complexities of taxes, duties, international claims and returns for even more of our sellers' inventory. It will further open opportunities for sellers, so they can ship hassle-free around the world, while we make sure the details are taken care of. And buyers around the world, they'll get access to significantly more inventory. We're unlocking new demand within our cross-border trade business. eBay is unique in our ability to connect sellers directly with buyers around items of meaning and passion, and we empower people around the world to develop their own styles, brands and customer communities. To help our sellers create a loyal customer base and strengthen brand awareness, we completely overhauled eBay stores over the past year. This was part of our tech-led reimagination to modernize the tech stack supporting our marketplace. We also increased the entry points across the site to direct buyers to these storefronts. This builds trust and deepens connections between sellers and buyers. So sellers like Kimberly and Matthew Miller, who you're seeing in this video, they can tell their story. They can talk about why their products have meaning, and they can build relationships with their customers. They can reach out and update their customers through store newsletters. They can introduce themselves and promote their products through new in-store videos and videos and listings, and they can merchandise their own storefront, sending offers and coupons to interested buyers. These capabilities are really working for sellers. Over 6 million buyers made purchases with seller-initiated coupons since we launched this offering, and stores are attracting our top buyers. Buyers who visit a store have a 20% higher repeat purchase rate with that same seller than those who didn't. Later, you'll hear from Alex about new ways we'll make it easier for sellers to promote their stores. Another way we're building community is by launching a new messaging platform this spring where sellers can communicate directly with buyers. We'll phase out our decade-old, e-mail-based platform, and in its place, we'll introduce a modern chat experience with integrated functionality. Sellers will now be able to easily track multiple message threads with buyers. They'll see links to the specific item in question, and over time, they can streamline activities such as offers, refunds or shipping information straight from the messaging platform, all while continuing to build connections with buyers. We expect over 1.5 billion messages will be sent this year alone. Unlike other transactional marketplaces at eBay, sellers can build brands and communicate directly with their customers to develop long-term relationships. Each seller has their own story to tell, so we're offering new ways for sellers to showcase their brand and the products they sell and to enrich their engagement with buyers and to build a following. Items will have video. Stores will have video, and as you heard from Jordan and Rob, we'll be piloting live commerce on eBay soon. They say a picture is worth a thousand words. Now we can take that one step further with video and live streaming. We can have live case breaks with trading cards. We can have shop-alongs with influencers, and we can raise auctions to the next level. We're putting these dynamic tools in the hands of our seller community, and we're thrilled to see where they will take them. Through these actions, we're enabling all of our sellers everywhere to grow and thrive on our platform. You heard Stef talk about our multiplier effect for buyers. Well, for sellers, we're creating that same effect through features that drive higher loyalty, build brand recognition and power cross-border trade. Only on eBay can an individual sell alongside a multimillion dollar brand. Only on eBay kind of small business in a small town get immediate access to 147 million buyers across 190 markets around the world. And only on eBay will you find accidental entrepreneurs, the people who start by casually selling their hobbies, then turn that into a thriving business. No other marketplace delivers this kind of scale, reach and community. This is why eBay is unique, powered by technology made for people open to everyone.

Well, thank you, Pete. Today, I'm so thrilled to share with you our progress and plans for the next phase in our advertising business. Our first-party ads business began just over 6 years ago with the launch of Promoted Listings, a way to increase sales for our sellers on eBay. Fast forward to today, and our ads business already compares to some of the largest advertising companies in the world. And the success of Promoted Listings has allowed us to reduce our reliance on legacy third-party ads that take buyers off the site while creating the foundation for an even larger business. Now Promoted Listings was successful because it's the best advertising format for our small business sellers who drive half of our volume, sellers like [ Luigi Sosei ], who sells used designer sunglasses. While sellers like Luigi needed a way to increase sales, they also needed it to be easy, given that they don't have many employees, and more importantly, they needed it to be low risk as cash flow is critical for their business. Promoted Listings fill these needs by automating buyer targeting, increasing their rank in search results and providing access to merchandising placements all over the site. And what was really unique for marketplace advertising, we used a cost-per-action ad format that gave sellers control over their cash flow as they only paid the ad fees if the item sold successfully, and that meant that small businesses like Luigi's could finally manage both the cost and the complexity of advertising. And sellers have loved the feature. In 2021, over 3 million sellers used Promoted Listings, and on average, these sellers saw a double-digit lift in their conversion rates versus non-promoted items. And this ad format alone led to over $800 million in revenue for eBay. So Promoted Listings, now called Promoted Listing Standard, is a powerful feature, but it's not all things to all people. While small businesses need to closely manage their risk, large merchants are focused on increasing sales volume while having more control over their keyword targeting and their daily budgets, and they wanted to work similarly to the advertising they do on other channels. For these sellers, we created Promoted Listings Advanced. Advanced is a cost-per-click ad format where sellers bid on keywords that are relevant to their item. They can specify the maximum bid and daily budget, and the promoted item has first look at the top of search results, which is our most valuable real estate. We launched Advanced last year as a beta product, and we're continuing to work closely with our sellers and third-party developers to create a truly great experience. And while it's still very early days, we're excited by what we're seeing. Large sellers who adopted best practices are seeing a 45% lift in their daily sales with some sellers seeing multiples of that. Let me now switch to consumer sellers. Consumer sellers, particularly those using auctions, are looking for the easy button. But as important for their auctions is the need to have a known advertising cost, given the unknown sale price of the item. We solve this with Promoted Listings Express, which combines a one-click setup, automated product targeting and a fixed fee upfront price. And even though we launched Express late last year, the early results look great. On average, sellers are seeing a 50% increase in clicks over a non-promoted auction and close to a 20% increase in the number of bids, and that drives better price realization. We think Express is a feature that can truly turbocharge the auction format. And while Promoted Listings are a great way to accelerate sales on the site, it can also accelerate sales by bringing new buyers to eBay. We've historically listed items into performance marketing channels to drive buyers for our sellers, and these pay channels drive about 10% of eBay's traffic. Promoted Listings allows us to be more aggressive in these channels by, for example, bidding higher for promoted laptops in Google product listing ads or paying a watch blog higher commissions for featuring a promoted Panerai. And the great news for our sellers is that there's no extra work. Everything is automated, and they pay the same ad fee, whether the buyer started out on-site or offsite. This is a win on multiple levels. Our promoted sellers are seeing a 50% increase in buyers coming from off-site to their eBay items. Our content partners benefit because they can earn more money by sending more traffic to eBay, and finally, the economics for promoted items enables us to spin the performance marketing flywheel even faster. Now of course, we're not stopping there. Over the next few quarters, you'll see us continuously improve the ease of use and the underlying performance while we drive adoption. Specifically for Advanced, we'll continue to iterate on the beta product with more automation; for example, which items to promote, AI models for relevance and performance and tools like broad keyword match. For Express, we're using AI to optimize price performance while adding reporting and in-product adoption drivers. And for offsite ads, we're building new capabilities that will give sellers more control over the amount of traffic that they can drive to their eBay items. And I'm excited to announce that later this year, we'll be launching a new ad format to help promote our sellers' eBay stores. Many of our larger sellers are focused on establishing their brand and driving repeat buyers. This new format will allow these sellers to drive traffic directly to their eBay store by targeting both keywords and products. It's really the first time our store sellers have had the opportunity to reach out to new buyers, and we're excited to see how this grows their business. We'll be launching a new format in the second half of this year, so stay tuned for more details. So taken together, we're building a more complete advertising product line that gives sellers more choice and control based on their size and needs. Let me now switch to what we're evolving towards. Our growth won't happen overnight as it will take time to optimize our new features. That said, we're excited about what's ahead. For Advanced, over the next few years, we'll grow by expanding the slots in search and increasing the average cost per click through seller demand. With our core standard format, we'll focus on smaller businesses and increased performance and the overall ad rate through algorithmic improvements. For Express, we'll drive adoption with auctions, particularly with consumer sellers, where we see a lot of runway. And with offsite ads, we'll expand our go-to-market efforts with affiliate partners, given the clearly better economics that they will see. So factoring in all of these levers, we believe we can double advertising revenue from $1 billion in 2021 to $2 billion in 2025 and eventually achieve 3% of gross merchandise volume, and that's effectively adding another $1 billion-plus business to eBay. But more than that, ads fundamentally drives greater sales for our sellers, and that's why we help multiply eBay's growth. It's been a remarkable 6 years of promoted listings. We created one of the largest advertising businesses by focusing on driving success for our sellers. Last year, we kicked off a new phase, building out a more complete portfolio that meets the diverse needs of our marketplace. And this year, we'll continue to build on that momentum by driving adoption for and continuously improving these new features. We're excited to see where this stage takes us and look forward to sharing more with you in the future. Thank you. And now let me hand you over to Julie.

Thanks, Alex. And now I want to talk to you about eBay Payments, another very important area of growth and innovation. Completing the payments migration was a huge milestone for the company. From my extensive experience in financial services, I know for a fact this is a remarkable achievement. It not only unlocked customer value through more choice and control but also drove $2 billion in revenue. Because of the team's incredible efforts, we are now processing $85 billion in payments across 190 markets around the world. We are also servicing over 17 million sellers on our platform. Today, you'll hear more about many new and exciting innovations that will fuel growth and improve seller and buyer experience. Having the entire seller and buyer payments journey on our platform is already helping us create a more streamlined experience. It's generating value for both our customers and for us. For example, customers like [ Sherry Smith ] told us how eBay's new payment experience streamlined her operations and boosted sales. Let's take a listen. [Presentation]

The video is proof of how our new payments experience simplifies running an online business. Sellers like [ Sherry ] can now manage operations all in one place, and as Pete mentioned earlier, it also is removing friction of unpaid items. At the same time, all this magic is happening, we are generating revenue on every sale. But what's even more exciting is where we're headed. It's all about innovating on behalf of our customers to fuel growth, efficiency and revenue. Let me share more about what's next, starting with our buyers. For buyers, we know they want to use their preferred method of payment. It must be relevant for their country, currency and their cart size. Today, we offer buyers a variety of payment options. These include credit and debit as well as Apple Pay, Google Pay and PayPal. And in Australia, Afterpay has been a huge success for us. Customers love the convenience of buy-now-pay-later options, particularly Gen Z who use Afterpay twice as much as other age groups. And this year, we're working to expand our payment options even further. For the first time, we will offer 2 of the top payment methods in Germany, Klarna Invoice and Financing. With this addition, we will appeal to the majority of the German e-commerce market. Klarna and Afterpay are just the beginning. We'll be announcing more payment methods soon to position eBay as a go-to shopping destination for the next generation of new and existing buyers. Starting in Q2, we'll also extend buyers a choice of currency options, so they can take advantage of eBay's cross-border presence. They will be able to shop in the currency of their choice. It's one of the many ways we are taking friction out of the buying experience. Another way we're improving the experience for buyers is by offering additional choices for high-ASP transactions. For the first time, we will offer buyers with larger carts, more payment solutions like wire transfers and split payments. We're building trust and credibility with each sale and letting customers know eBay is standing behind them. For instance, take the customer that bought a 4-carat emerald cut diamond engagement ring for over $23,000 last month or the shopper who snagged a bundle of Oculus VR headsets for $90,000 or even the collector that found a rare set of vintage Hot Wheels for $4,000. These types of purchases are happening every day in our platform, and all these customers will soon have even more payment options to choose from. Servicing high-ASP transactions offers greater buyer protection and security through a checkout experience that begins and ends at eBay, ultimately empowering the customer with more choice, convenience and confidence. We're also building on this strong foundation to give our sellers more flexibility and control as well. Let me tell you more about what's ahead for them. As Jamie mentioned, we are launching our first digital wallet this year. For the millions of sellers who want to use their proceeds from a sale to fund their next eBay purchase, eBay's wallet is going to be a game changer. With our digital wallet, earnings will be available almost immediately, and because the majority of our global sellers also shop with us, we see huge opportunity. It's a convenient way to allow sellers to use their funds to purchase their next wish list item or even pay for their selling expenses. The eBay Wallet helps us nurture and grow customers that both buy and sell while also fueling continued loyalty by putting sales proceeds right back into the platform. Another way we will give sellers more flexibility and control is around payouts. This month, we will be offering on-demand or scheduled payouts, including options for monthly, biweekly, weekly or daily. And later this year, sellers in a rush will have the option to send available funds directly to their debit card within 30 minutes for a fee. It's all about making sure sellers can get access to their payouts how and when they want it. And we are not stopping there. Now that we are processing $85 billion in payments across the 147 million active buyers, we will double down and use our data and scale to expand our financial services partnerships. Starting in Q2, we will begin offering sellers working capital that will be integrated within the eBay experience. They will have access to the capital they need and, in certain markets, will be able to pay it back from earnings from their sales. It reduces friction and makes accessing and managing credit seamless. We will also have the opportunity to offer ways to protect businesses such as insurance products that help small- and medium-sized businesses thrive. All of this gives our sellers seamless access to resources within our platform. It's a one-stop shop to create, build and grow their businesses. And there's even more opportunity as we build deeper relationships that add value for both our customers and for eBay. The Chase Freedom quarterly 5% cash back program is a great example. Our collaboration, which launched in Q1, gives us broad reach that helps us increase top-of-funnel awareness. Over the coming quarters, you will see more opportunities like this that boost consideration with new customers and deepen engagement with existing buyers. We're also working on ways to enable pay with rewards on our platform. This would allow customers to pay for eBay purchases with their credit card rewards, another valuable payment option for customers that also increases buyer spend and loyalty on eBay. It's all about helping our communities of sellers and buyers not just survive but thrive. We want to be there every step of the way to meet their financial needs and do it in a way that is uniquely eBay, never losing sight of our goal to create economic opportunity for all. Supporting and building our community of buyers and sellers is at the heart of who we are as a company. We built one of the largest payment platforms in the world, processing $85 billion in payments. That's larger than the GDP of more than 100 countries. So what does this all add up to? We are using our scale and reach to expand our services and partner ecosystem to enable even more innovation and growth. We'll see incremental revenue as we deliver faster payout options, service high-ASP transactions in new ways and offer a choice of currency, and at the same time, we will drive efficiency gains through eBay's first digital wallet, adding new payout providers and other cost optimizations. These examples highlight just a few of the ways we're using eBay's payments platform to unlock value. Over the next 3 years, we expect to deliver nearly $300 million in incremental revenue, along with cost efficiencies that will help fund our other growth initiatives. We will continue to put our customers at the heart of everything we do as we drive growth, innovation and revenue for eBay and for our millions of sellers and buyers around the world.

This is Joe Billante. Welcome to the first of 2 live Q&A segments. We are coming to you from our headquarters in San Jose. With us now are all the speakers you heard from this morning. As a reminder, you may submit questions using the Q&A box on the right side of your screen. Let's begin.

The first question comes from Ygal Arounian from Wedbush Securities. The pace of authentication growth has been great to see. Investors often want to understand the pace of scale, the investments around it and what is required to build it out to the rest of the categories and geographies as well as the timeline to get there. Can you share more color around that?

Yes. Maybe I'll turn that over to Rob, who leads our European business. Rob, do you want to take that one? 8:46 PM.

Yes. Cool, Jamie. Look, I think the answer to the question is really, this is about accelerating our execution. I mean when we started out with sneakers, it took us just over 5 months to get sneakers launched, and we followed it up fairly quickly afterwards 5 weeks with the next rollout. And since then, we're getting faster and faster and faster in terms of our execution. We're now, on average, about 8 weeks to either get to a category or an individual country. And that acceleration is because we're getting better and better operationally. We work as a global organization and that allows us to get to scale fast and understand customers on a global basis. The key to unlock to that, though, really is about how we use our technology. And I think Pete -- maybe you can comment on how you think about the technology solution.

Yes. Thanks, Rob. This is a great example of our tech-led reimagination that we started over 18 months ago. We're doing things differently now at eBay. We're actually competing vertically, as Jordan talked about, but we're building horizontally, and we're doing things at scale. We think about multiple focus categories as we're building these service platforms so that once we get through one, we can quickly increase our velocity and go to others, and that's what Rob talked about, every 8 weeks going to a new focus category or a new country. This is exciting. Customers are starting to see it. They're feeling it, and this is the velocity that's just going to keep getting better and better.

Our next question comes from Ross Sandler at Barclays. Do you have any data from back in the day when PayPal was under the same roof about how much GMV comes from saving funds in the digital wallet? How big of an opportunity could this new wallet be in terms of driving buyer GMV?

Thanks, Ross, for that question. I'll turn that over to Julie, who leads our payments initiatives. Julie, you want to take that.

Sure. Thanks, Jamie. We're really excited about our first eBay Wallet launching in 2Q. I will have to say it is obviously early days. It hasn't even launched. But following that seller need about being able to access a cash balance in their wallet and then being able to buy things on the platform as well as cover their seller costs could be a huge win for us and obviously for our sellers. So we'll continue to innovate on behalf of our customers, and we're really super excited about being able to launch this new first eBay Cash wallet in the second quarter.

Our next question comes from Shweta Khajuria at Evercore. It's a 2-part question. First, how should we think about normalized buyer growth over the long term post optimizing for high-value buyers? And second, what will be the key drivers in your marketing channels to do that?

Stef, do you want to take that one?

Yes. Sure. We see a lot of opportunity to grow this incredibly important base, as we've talked about. This is a really productive base. The enthusiasts, as we've talked about, are 71% of our GMV. And so we'd really expect this group and the spend to grow in line with our overall GMV for the next 3 years. We're going to grow them both in count and in spend. And as Jordan and Rob talked about, part of our focus categories, strategy is around growing CSAT, which then also drives GMV. So there's a lot of interconnectivity between there. Enthusiast buyers right now are higher in count than pre-pandemic, and we've seen continued growth. You'll see some COVID lapping potentially over the next couple of quarters and maybe some movement between mid-value and high value. But as that settles through, I think we'll have really solid growth over the next 3 years. There's a lot of levers to drive that growth, as we talked about, from a multiplier standpoint, whether that be cross category or selling or different pieces like that. And so we see a lot from there continuing to drive that growth here.

Our next question comes from Eric Sheridan at Goldman Sachs. It's a 2-part question. First, in thinking about the Vault, do you imagine such an initiative bringing new buyers to eBay that are digital or fractional ownership first in their mindset? How far afield do you imagine the categories that could adopt such an approach to ownership? And second, of what was announced today, how should we think about the level of innovation that still must be built and/or what is ready for wider deployment and scaling in the near to medium term?

Yes, I'm really excited for the Vault and how it blends physical and digital. Jordan, maybe you want to talk about some of the answers to his questions. awesome.

Awesome. Thanks, Jamie. Yes. The Vault is kind of amazing because once a card is physically involved you can instantly buy and sell to other people without it ever actually physically changing hands. And so that puts eBay in a position now to have digital exchange your goods. And so from there, you're only a short step away to think about expanding that into NFTs and a fractional ownership. And as you've seen from those categories, they are just increasing the total addressable population for collectors, collectors of all kinds of asset classes, whether that be sports cards, digital moments or even art pieces from our incredible software representing artist community. So as we think about launching Vault, we think it's going to increase the number of customers that come on to the platform, both the current shoppers but also next-generation customers for our platform. I don't know, Pete, do you want to take the second part?

Yes. Sure. Again, this is really about sort of our tech-led reimagination. And when we started on this journey, our pace was too slow. We had a lot of technical debt. We were working in silos. We've worked past all of that. I'm really happy with the pace we're on, and it's continuing to accelerate. Just as an example, 18 months ago, when we would do our app -- our mobile app, we would deploy new updates every month on a monthly basis. Over time, we got to weekly, and now we can do daily deployments. That's just a microcosm across the entire site of how we're moving faster and bringing better quality. So I feel great about the ability to add these new features now, and again, everybody will start seeing this and feeling the difference with eBay, with our modern design and our modern code that's going to be able to really bring us forward and do, not just in a small innovation, but really big innovation that's going to delight our customers.

And some of the things you saw in the video that Jordan shared, some are coming soon like the actual Vault and the ability to store it there, and others are things that we're going to work on in the future. Things like fractionalization will be to come as we build our Vault capabilities. And as Jordan likes to say, it opens up a world of possibilities for what eBay can do, and it's exciting for us.

Our next question comes from a number of listeners today on the webcast who've asked the same question. Many people want to know, when will eBay accept crypto as a form of payment?

Yes. We don't currently accept crypto as a form of payment, but we're continuing to look at new forms of payment to add now that we've got the rollout of Global Payments complete. I'm excited for the announcement today, an important new payment form in our German market. Julie, maybe you want to talk about the new forms of payment?

Sure. So we're announcing this today that Klarna in Germany will be partnering with us to offer both Financing and Invoicing, Klarna Financing and Invoicing, in the German market. We're really excited to partner with them. They're a great brand, great partner, and we're very excited to have that launch in Q2.

Yes. It's exciting. It's a very important form of payment for our German business and excited to see that come live this year.

Our next question comes from Richard Kramer at Arete Research. For all the talk about communities, when is eBay going to have some form of in-house social commerce option? And secondly, what are you doing to fix the antiquated messaging system?

Thank you for the question. So hopefully, this question came before we showed the new member-to-member messaging system because I am really excited by it. I agree with you, Richard. It's a very antiquated system today, but I've been playing with the closed beta of the member-to-member messaging system, and it is fantastic. So much easier to use. It's a chat-like interface. It's so relevant. Pete, do you want to talk about that and maybe some of the things we're doing in social?

Sure. Let me just give a few examples. First of all, on the messaging, the ability for people to just be able to talk back and forth and take action in that chat service, that's going to be revolutionary for where eBay has been. And we're really listening to our sellers' feedback. One feature that we're going to be adding shortly is the ability to have a flag for the sellers to see that it's a repeat buyer when they're having a conversation. And they can click right on that flag, and they can see all the items that, that buyer had purchased in the past. These are going to be the tools you typically try to give to customer service reps. We're now giving them to our sellers, and it's just exciting to see how this is going to drive the communication. Our unified listing experience is another great example. So we're making it very seamless and easy to be able to post your listing and your store's link onto off-eBay social networks to be able to have broader advertising and broader visibility of what our sellers are doing. That's another great example. And then finally, live commerce. So excited. It's just taking off in terms of Asia of how shopping is being done, and we want to bring that experience to our sellers and our buyers, especially with this engaged community that we have. We think it's going to be really interesting to give the tools to sellers and see where they take it.

Our next question comes from Youssef Squali at Truist. You increased your final value fees collected from sellers in March, and you also ended high-value seller fee discounts in the U.K. Can you please speak to merchants' reception of both so far? And any impact on the business?

Yes. Rob, maybe you can take that one.

Yes. Sure. Well, Youssef, so what we did in -- back in March was actually just removed the high-value seller fee discounts in the U.K. It's a relatively small number of sellers by count of the overall U.K. seller base. At the same time, actually, we also reduced seller fees in a number of different categories and different -- a number of different price points to try and stimulate supply and seller engagement yet further. So this is part of us costly adjusting the business. What we're trying to do is always provide a fair and balanced playing field for all our sellers to compete on the platform for our buyers, and that's -- this is us just continuing to work out on a regular basis as part of our operations. In terms of impact on the business, all within everything we expected and no negative reaction so far. So we're pleased continually with the work we're doing.

Our next question comes from Ygal Arounian at Wedbush. On the strategy to turn buyers into sellers and vice versa, how is the volume of sellers right now in eBay relative to the amount of inventory needed to accelerate GMV? In other words, do you have a shortage of sellers or inventory whereby bringing on more sellers can help drive better GMV growth?

Yes, Ygal. Let me start with that, and then I'll turn it over to Pete. So 18 months ago, when I laid out the tech-led reimagination, one of the key elements was being the seller platform of choice. It's why you've seen us do innovations in eBay stores. That's why we worked on member-to-member communications that Pete just talked about. It's why we allowed sellers to do couponing directly to repeat buyers. But on the consumer side, we've really been focused on how do we make this incredibly easy to list on the platform. So we like to talk about, during a TV commercial or a commercial while you're streaming a show, how can you actually get a product up on eBay that fast. And so a lot of the innovations that you're seeing on the platform are things like the computer vision that we showed in the video today where you can just scan the label of the sneaker, and we'll prepopulate everything there, really not even needing to use the keyboard on your phone when you go to list an item on eBay. And that's the vision, and that's going to be a constant march to just make it extremely easy to sell on eBay. And we really haven't talked before today about the unified listing experience that we've been working on for quite some time, but the whole vision was, for that product was to make it much easier for sellers, both consumer sellers and business sellers, to list on the site and to unify our technology platforms so that we could innovate with more speed. And we've put a number of features in that product to make it faster to list. Pete, maybe you want to talk about the price guidance or some of the other features we put in the unified listing experience.

Sure. Let me go a little deeper on it. Again, the unified listing experience is all about maniacally taking friction out of the experience, and remember that treasure trove of data that we have, bringing that and bringing the intelligence to our sellers to be able to have a better experience and be able to grow their business faster. Just a couple of examples of things sellers have asked us to do that we're bringing with this new experience. One is photo guidance, being able to tell people exactly what kind of photos that they should have in there. And as Jamie mentioned, another one is price guidance, and I'm really excited about this one because just at the click of a finger, sellers can see other comps or comparables of other listings of what they've sold for all the data showing that so that they can really figure out. Regardless of their cost basis, they can figure out what's the perfect price to be able to sell it at. And we are giving them all kinds of data and analysis to be able to help them on that path, and that's something our sellers have been asking us for.

Yes. It's been a key pain point, and so we're making it much easier there. The team's made shipping a whole lot easier with what we've done in shipping partnerships around the globe and making that easier to use in the product. We talked today a little bit about making international shipping easier for our sellers, too. So all of these features come back to that original premise of being the seller platform of choice, and that's going to be a continued journey for us over the next couple of years, and I'm excited by what we've got in the works.

Our next question comes from Brian Fitzgerald at Wells Fargo. It's a 2-part question. First, Jamie talked about extending the playbook to 50% of GMV. Could you talk about extensibility beyond that 50%? And second, how much GMV is outside of non-new in-season, either new or commodity, where maybe you don't have as much differentiation? Is that GMV declining? Any color or dynamics there?

Yes. So first, I'll start with the non-new in-season and then the categories, and I'll let Jordan or Rob chime in, too. When you look at the TAM market that we have in non-new in-season and in new in-season, non-new in-season is actually growing faster, and it's a massive opportunity. It's where 90% of the inventory that we have since today. So incredibly important for us. So that is kind of strategically where we're headed across the board category by category. I'd separate that a little bit from our focus category strategy, which is really about vertical by vertical, building the best customer satisfaction that we can. GMV follows. Buyer and seller follows. That playbook is working. It's worked for our first 20%, and we feel great about getting it to 50% over the next couple of years. Jordan, maybe you want to add in as the person who's been leading the charge on our strategy.

Yes. I think you nailed it, Jamie. I mean the playbook is what do customers need. In most categories, trust is the #1 driver. How do we build solutions to that and do it at scale, some go to other categories and go to other countries like Europe and around the world, and how do we get out there and tell our story? The first 50% is where we started. There's clear and obvious opportunity for us to grow and differentiate there, but the playbook can go beyond the 50%. The best part, though, is even while we're on the journey, as you may have seen in my earlier presentation, where we are building these new experiences in delighting customers, CSAT is going up. They're shopping more in these categories. But as Stef talked about in her section, the eBay multiplier effect, they're shopping in other categories. So even outside the 50% if they are not touching in this first phase, those categories will see growth as a result of these happier customers.

Our next question comes from Dan Salmon at BMO Capital Markets. What is your baseline expectation for growth of retail media advertising? Said another way, if eBay doubles the ad business over the next 4 years, will it be a share winner versus competitors? And would you look at M&A to accelerate your offsite business?

Yes. Maybe I'll turn that over to Alex, who leads our advertising business.

Thanks, and thanks, Daniel. So it's interesting because we actually don't think about the competition. We're really focused on delivering a really great advertising experience for our sellers, and you can see that in the numbers, right? We've been able to grow Promoted Listings from 0 to over $800 million in revenue in 6-plus years. And that's really what we're looking forward to and looking forward to building the next billion dollars in the business. As far as M&A goes, we're always going to look at inorganic options as a way to accelerate our strategy, but we have no plans right now.

And one moment while we queue up the next question. We have another investor question. Between the various initiatives highlighted across advertising, standard, advanced, off-site, et cetera, what do you expect to be the most impactful in driving an incremental $1 billion in ad revenue by 2025? What assumptions are you making on underlying marketplace growth to get there? And can advertising grow even if GMV faces challenges?

Yes. Alex, do you want to take that one, too?

Sure. Sure. And so I think that from our standpoint, the Promoted Listing Standard format, which is our core format, like I just said, was over $800 million in revenue, we think there's actually quite a bit of runway to continue to optimize that format and grow that, and it will continue to be the lion's share of the business in the near future. For the new formats, Advanced, Express and off-site, these are all really new, and it's very early days, but we're really excited by the early results we're seeing.

Yes. And just to summarize, yes, we do plan to have advertising outpace GMV. We've talked about that for a while, and we continue to see that opportunity in the future. As Alex talks about, the 3 new products that we launched this year, I think, are strategically right. When you look at the mix of sellers that we have, the mix of formats, it allows us to go after incremental advertising opportunities. And the one that we talked about today as a new format also gives stores, sellers, just more capabilities. So it does take time for them to learn to adopt these for us to optimize them, but strategically, we think these are the right new products for us to drive that level of growth.

Our next question comes from James Lee at Mizuho. Can you give us more color on your plans to upgrade motors, parts and accessories? What's the GMV contribution of this category? And which verticals do you see the most opportunity to upgrade going forward? How about your core verticals such as home and garden, electronics and apparel? How are you going to upgrade those?

Yes. Who wants to take that? Rob, do you want to take this?

So just to remind you from the previous sort of things I was talking about. I mean our P&A business is already a huge business at scale. It's got enthusiast buyers -- nearly 40 million buyers already shopping on eBay. We are #1 in the U.K., we're #1 in Germany, and we're a really strong second here in the U.S. And so this is an enormous business scaled with enthusiast buyers already in it. In terms of overall contribution, that business is in excess of over $10 billion of GMV on an annual basis, and we will continue to invest in it, and the real themes of that investment are along these lines. I mean, the fundamental challenge with parts and accessories as a consumer is there are around about 3 million cars on the road. There are about 25,000 parts in every single car. And when you are coming shopping for a part, you specifically want that unique part which fits your, vehicle and you're trying to find that, and there's a whole range of choices from original parts through to used, which you're trying to navigate. Because of our experience in the category and the history of it and the data we've built up and our ability to combine that with market-leading data and our technology, we're able to help that buyer find that specific item that he or she is looking for at that moment in time, and that gives us an enormous advantage competitively in differentiating against any of our competitors in this sector. And what we're going to do is basically start to apply that, not only in the motors, specifically cars, but also then you can start to extend it into other vehicles, green parts, boats and the likes. So there's plenty of other sort of motorized vehicles we can extend that logic to. And the other dimension that we'll continue to expand on is many customers now seek and want the ability to be partnered up with someone who can help with the installation. So we will start to connect and work with other parties who can help buyers get installation services. The second part of the question is really about how do we take that beyond, and I think Jordan covered it earlier, particularly in his presentation, about how we continue to take this playbook onwards into home and garden, electronics and refurb and ultimately into clothing. And it's always the same principle, is what we're trying to do is always we understand what our customer needs. We then build brilliant experiences, which are anchored on improving trust, and we'll find the trust unlocked in each of those categories, and then we tell our story in a different way. We know that playbook is repeatable, and we'll continue to work across all these different categories as we extend into the rest of the business.

Thank you. Our next question comes from Justin Post at Bank of America. How are you thinking about the sustainability of growth in categories that have been improved after the initial uptick?

Yes. We've seen some great results there. Justin, thanks for the question. Maybe, Jordan, do you want to take that?

Yes. It's -- in all honesty, it's been very exciting for us. And it seems somewhat simple, but when you build experiences that customers love, they come and shop. And when they are delighted, I mean, you saw in some of the videos of the unboxing experience and seeing the sneakers with the NFC tag on it, that experience is now being replicated across sneakers, watches, handbags. We recently launched trading cards. And when customers have experiences they love, they shop again, and they tell their friends. And so we have seen the growth rate to be sustainable, and as we have laid out in our multiyear plan, we think the growth rate in these focus categories will be at or above market, which is pretty exciting.

Okay. Our next question comes from Tom Champion at Piper Sandler. It's a 2-part question. The first part is, I'd be curious to hear more about the experience of sellers with video. And then the second question is about the $19 million enthusiast buyer opportunity is very impressive. Just curious how this has trended over time and the opportunity to grow this segment.

Yes. Let me start, and then Pete can jump in on the video. So I'm incredibly excited for what video means to eBay. When I look at the experiences that sellers are putting out there, leveraging video, it's a real game changer. So if you think about an eBay store able to tell their story of how they source their products or in the video, we show a custom jewelry seller and how they make their jewelry. It really brings their brand to life, and that's one of the unique value propositions of eBay is as a seller, you can really bring your brand to life and build a community of repeat buyers. And so that's the first part that's really compelling. On the item level, it's a real game changer across the board. So you think about what Rob was talking about with parts and accessories and the ability to see how is this installed or where does this product go and is there an actual great fit. You think about musical instruments. I bought an oboe on the site about a year ago from my daughter. Fabulous experience with the seller, but God, it would have been really nice to actually hear the instrument live. You can think about people showing off apparel in different ways. And so I think it's a real game changer. It's really appealing for our Gen Z audience to have that video capability on the site, and we're actually putting it in some of our new tools. Do you want to talk about it, Pete?

Yes. Sure. Likewise, I think this is going to transform the experience. And when I first got here and talked to sellers, they all would ask me, "Why can't we put video into our listings into our stores?" and it makes a ton of sense. We have this breadth and depth of inventory, and as Jamie mentioned, it's a way to really bring things to life. And not only that, Jordan talked about trust. One of the things that I'm personally really excited about with video is by being able to use video with the listings, with stores, with the 3D partnership we're doing with Unity. All of this is a way to be able to make sure sellers are able to convey what it is they're selling, and buyers can really see before they transact what it is that they're going to get. That's a game changer. We're putting it in -- as I mentioned, in my part, we're putting it into listings, and that's going really well. We've just started to roll out the unified listing experience, and we're seeing good uptake across different videos. Obviously, adding videos for large sellers is easy. They already have them. In small sellers, we're making it super simple for them with tools to be able to create their own videos, and then we moderate everything before it goes live to make sure that we're keeping a safe, trusted environment. And you'll see that with stores. You'll see it with listings, and then you'll see video brought into our live commerce pilot. So excited about all these.

And Tom, to your question on enthusiast buyers and how has that trended over time, I'd just ask you to hold in for the next segment because Steve is actually going to detail that out. What I'd say briefly is that because during the COVID and pandemic period, we had a lot of mid-value buyers moved to high-value buyers. And so we'll see that come down a bit as we lap because that's a 12-month metric. But as Stef said, the whole premise of the eBay multiplier effect is really being able to take the tools that we have and leverage to grow our enthusiast buyers over time, and enthusiast buyers driving 71% are really critical to the health of the business. So we can come back to that in the second Q&A, but hopefully, we'll get that answered for you.

Our next question comes from John Colantuoni at Jefferies. You're planning to launch a number of payment services like consumer and merchant credit and buy now pay later. Can you give us a sense for the size of the TAM for each of these services you'll be launching? Also, what capabilities are you building to assess credit for the end user of these services?

Yes. Thanks for the question. We learned a lot launching Afterpay in Australia. Julie, maybe you want to take that question?

Sure. Exactly. Afterpay in Australia has been a great success for us, particularly with Gen Z-ers. It's a huge opportunity for them to decide on choice and control over how they want to pay. It won't stop there. Obviously, as I just mentioned, our Klarna partnership is another great opportunity for us to offer choice in the form of payment in Germany, and our partnership with Klarna is another example. And then as it relates to buyer and seller financing, that's something that we're very focused on in the financial services space in creating partnerships. We'll have an upcoming announcement in the next few months. As it relates to seller financing and working capital, again, offering the ability to do everything on our platform to eliminate friction and to really be customer-focused and to serve our customers the best way possible.

We have time for one more question in this session. The last question comes from Deepak Mathivanan at Wolfe Research. Do you see any M&A opportunities to accelerate many initiatives that you've highlighted so far? Can you talk about what can help accelerate these efforts?

Yes. M&A has been and will continue to be a key tenet of our capital allocation policy. Of -- specifically where we think we can accelerate something that we're doing in an asset-light way that makes a lot of sense for the business. So the 2 recent ones that I would point you to Jordan talked about how trust is such a game changer for the focus category initiatives that we have. So doing the relationship with Sneaker Con and that acquisition was really important to us. They have authentication centers in 5 different countries. And if you look at just what's happened in our sneakers business with the growth charts that we shared, you'll see what a game changer this was for the business. So another example of that was the investment with bidadoo in our business and industrial space also bringing trust in those categories. So we'll continue to look for those opportunities, and we always look at build by partner. And so in some cases, it's an acquisition. In some cases, like Adyen or what we announced today with Klarna, it's a partnership. And in other cases, like a lot of the computer vision work that Pete's team has done, it's a build scenario, and we'll continue to use this build-by-partner framework to make sure we're moving the strategy forward as fast as we can.

Thank you. This concludes the first Q&A segment. We will now pause for a 10-minute break. Please enjoy the video. [Presentation]

Good morning, good afternoon and good evening. Thanks again for joining us. I'm delighted you've had the opportunity to meet our incredible leadership team over the course of the day, and I'm looking forward to outlining how the strategic initiatives they have shared will translate into our financial outlook for the next few years. I'll begin with why eBay is so well positioned to execute the ambitious plans you just heard about. We operate an asset-light business with a highly engaged community at its core. We leverage sophisticated technology to reduce transactional friction and facilitate trust between sellers and buyers. As a third-party marketplace, we do not compete with our sellers. In fact, we frequently leverage our scale for the benefit of our community, whether it's reducing payments costs for sellers, providing discounts on shipping rates or ensuring authenticity for high-value transactions. Our scale creates value for customers, and the scale of eBay is truly unique in the world of e-commerce. We connect 147 million active buyers with 17 million sellers, making us one of the world's largest commerce platforms. EBay is a globally recognized brand and facilitates transactions across 190 markets with our largest being the U.S., the U.K. and Germany. Cross-border trade represents 1 in 5 transactions as our global seller base provides inventory that buyers cannot always get in their home country. The eBay marketplace is where scale demand meet scale supply, driven by a highly engaged community. And every week, more than 60 million people use eBay, and they visit us on average more than 10x each. The vast majority of visitors navigate directly to the eBay mobile app or website, while only 10% of our traffic comes from paid marketing channels. When we do drive buyers to eBay, it's typically a lower cost due to the wide range of inventory that we offer. eBay customers comprise 1.5 billion listings from sellers of all types, from large enterprises to small businesses to everyday consumers. The products they list are incredibly diverse, ranging from luxury items like a vintage Rolex to a refurbished Dyson or a missing piece from a child's favorite board game. eBay's extensive selection of items is a key reason why so many shoppers visit us so frequently. The breadth of scale categories on eBay sets us apart from our competitors, particularly vertical marketplaces. Our top 5 categories include motors' parts and accessories, electronics, collectibles, home & garden and fashion. All 5 of these categories individually generate over $10 billion in annual GMV. And to put this in perspective, eBay's annual volume is larger than the combined GMV of all of the competitors on the slide in front of you. Any single one of our top 5 categories compares favorably to most of these companies. We are the longest tenured player in the non-new-in-season market, and our scale provides us with a unique advantage. Our marketplace not only has scale, but it drives an incredibly durable financial model with best-in-class operating margins. Due to low capital intensity, most of our operating profit converts directly into free cash flow. Our resorting balance sheet strength puts eBay in an enviable position to both invest in our core business and deliver meaningful capital returns to shareholders. As attractive as our scale, business model and balance sheet are in their own right. A key differentiator for eBay is how we drive sustainability. The impact that eBay has on the environment and the communities we support is of paramount importance to us. Not only do we have ambitious environmental targets to reduce our impact on the planet, but driving the circular economy directly affects our business performance. As one of the world's largest commerce platforms, we have a responsibility to help mitigate the impact of climate change. We reached a major milestone in 2021 by achieving 100% carbon neutrality for Scope 1 and 2 emissions. We achieved this through a multiyear effort to reduce our carbon footprint and source more of our energy from renewable sources. Recommerce or the selling of preowned goods has been a foundational element of eBay's marketplace throughout its 26-year history. It's also one of the principal drivers of our sustainability efforts. And during 2021, in electronics and the power categories alone, we estimate Recommerce on eBay led to 540,000 metric tons of avoided CO2 emissions in the U.S., the U.K. and Canada. Recommerce not only supports a healthier planet, selling used goods can be a source of economic impairment for households seeking additional income. And according to a study we commissioned 18 months ago, the average U.S. household has nearly $4,000 worth of goods that could be resold on eBay. During the pandemic, recommerce emerged as a lifeline for countless households to mitigate their financial challenges and to make ends meet. Our tremendous scale, best-in-class margins we're letting us focus on supporting the environment and a long track record of success make eBay one of the world's most trusted and sustainable marketplaces. These foundational elements combined with a renewed strategy made me incredibly excited about the outlook for the years ahead. As it has been several years since our last Investor Day, I'd like to take a step back and look at some pre-pandemic trends in our business. Starting in late 2015, our business strategy focused on branded new in-season products. Volume grew modestly for a couple of years, but our operating income remained relatively flat. In 2018, the company expanded site-wide marketing permissions that drove short term GMV, but those investments did not lead to sustainable growth. By 2019, our GMV was declining 2%. This was in part due to a 1-point headwind related to the rollout of Internet sales tax in the U.S. And we exited down 4% that year. And while volume is declining, active buyers were still growing. While we shifted marketing from site-wide promotions to low ASP coupons, it drove a significant number of low-value buyers to the platform. But this approach did not cater to enthusiasts, and it failed to generate sustainable volume or operating income gains. As we entered 2020, our full year outlook assumed GMV would decline yet another 2%. And then, of course, the pandemic hit. It reduced consumer mobility and dramatically accelerated our growth. That summer, we took steps to transform our strategy and laid out the vision for a tech-led reimagination of eBay. This strategy has led to clear improvements in our underlying health. And excluding macro impacts during the pandemic, our GMV has been growing up modestly positive rates. In addition to improvements in volume growth, we have executed several other changes that drove substantial value. Our advertising business doubled in size over the past 4 years, eclipsing $1 billion to '21. Perhaps more importantly, the composition of our ad revenue was transformed over this period as we modernized our product portfolio. When I look back to 2017, over 85% of our advertising revenue was generated by third-party display ads that sent traffic off eBay. Last year, more than 80% of our ad business came from first-party promoted listings, which keeps traffic on eBay, enables sellers to gain exposure and delivers a better customer experience. Nearly all of our Promoted Listings revenue last year came from a single product. However, our recent portfolio expansion taps into incremental budgets from a broader group of sellers, which should drive ad revenue growth ahead of GMV for the years to come. In addition to incremental revenue, advertising delivers growth at healthy margins, which creates investment capacity to help fund our strategic initiatives. Another transformational change we delivered was payments. We have built our own enhanced payments platform to control the full end-to-end customer experience. The results exceeded the ambitious targets we set out to achieve as we migrated customers to the new platform in just 18 months. Buyers were given more options to pay, most sellers saw their fees lowered and transactional friction was reduced. Financially, we reached our annual run rate targets of $2 billion in revenue and $500 million in incremental operating profit by the end of 2021. Additionally, warrants acquired in connection with our Adyen partnership have created over $1 billion in value for shareholders to date. The payments transition was a huge success for eBay and has enabled new growth opportunities in financial services, which Julie outlined earlier. We have realized tremendous value by simplifying our portfolio. Since the beginning of 2020, we have completed the dispositions of StubHub, classifieds and our South Korean business. At closing, these deals were worth over $20 billion in aggregate, representing a multiple of over 28x non-GAAP operating income. Based on '22 consensus, this valuation is roughly 3x higher than our current multiple on an EV to up income basis. In the past 2 years, as Jamie mentioned, we have more than replaced the foregone income from these divestitures. Our portfolio simplification also benefited the company in other important ways, allowed us to focus on our core business and it improved our already best-in-class margin profile by 300 basis points. Our approach to capital allocation has remained consistent over time. We continue to evaluate both organic and inorganic investments using a build-buy partner framework. We first prioritized investments to drive organic growth, then evaluate opportunities to supplement it with disciplined investments and acquisitions. Over the last few years, we have strengthened our marketplace through each pillar of this framework. We are building numerous services in-house, including our advertising stack and computer vision technology and the Vault that you heard about from Jordan earlier today. We partnered with Adyen and [ Paydiant ] to enhance our payments infrastructure and teamed up with Unity to deliver our impressive 3D True View for sneakers. We strategically invested in bidadoo to enhance our business and industrial capabilities, and we acquired Sneaker Con to enhance our authentication technology and throughput. After funding our growth strategy, we have consistently returned excess capital to shareholders through dividends and opportunistic buybacks. We have repurchased over $5 billion of shares in each of the last 3 years, including roughly $7 billion in 2021. And after instituting a quarterly dividend in 2019, we have raised it by double-digit percentages in each of the last 3 years. As e-commerce tailwinds for mobility abate, it's clear that our company is in much stronger position now than when we entered the pandemic. Our focus categories are returning to market rates of growth due to improved customer satisfaction rates. Our high-value buyers, particularly enthusiast buyers, have grown over the last 2 years and continue to spend more. Innovations in managed payments and advertising have alleviated friction and help sellers grow their businesses. We're nearly 2 years into a tech-led reimagination, thus for eBay back on a growth trajectory, when we believe we can sustain over the long term. And earlier, I discussed the intrinsic qualities that make eBay well positioned for success in e-commerce. We see numerous pieces of evidence indicating our strategy is a winning one. The first proof point that gives us confidence is the market we operate in. We estimate our total addressable market or TAM, in online retail across our 3 largest markets alone amounted to $1.1 trillion in 2021. This TAM estimate incorporates both B2C and C2C transactions but exclude categories like grocery that eBay does not participate in. Our TAM is projected to grow at an 8% CAGR to $1.4 trillion by 2024. Roughly 2/3 of that growth is estimated to come from non-new-in-season categories. We're close to 90% of eBay GMV [indiscernible]. Non-new-in-season categories are expected to grow from $575 billion to $750 billion over the next 3 years. And this is 50% faster than branded new in season over the same period. In short, we are squarely focused on the largest and fastest-growing part of our market. Our expanding TAM provides tailwinds to our focus categories, which are demonstrating really encouraging early proof points. As Jordan and Rob noted earlier, we rolled out authenticity guarantee in luxury categories like sneakers and watches and handbags. We subsequently saw customer satisfaction rates dramatically improve and accelerated GMV growth has followed. We went from consistent market share losses in recent years to seeing these categories return to stable double-digit annualized growth. Our sneakers category is a great example of the impact that our innovation playbook can have. Years ago, we were the category leader in sneakers. However, between 2016 and 2019, sneakers over $100 declined at double-digit CAGR in the U.S. Vertical competitors were taking our market share. That turned after we implemented a series of changes including authenticity guarantee, pricing, marketing and significant improvement to the shopping experience. Our volume rebounded dramatically, with GMV growing at a 70% CAGR over the past 2 years. We truly believe our innovation playbook can similarly bend the curve in other categories over time. Focus categories also drive cross-category shopping behavior, which serves as a multiplier effect for our business and increases overall spend per buyer. As you'll see on the slide, shoppers in our focus categories spend far more than an average eBay shopper, and they do so across a broader range of products. Our shift in focus from total buyers to prioritizing high-value buyers is amplifying the underlying growth in our business. High-value buyers, particularly enthusiasts are growing faster and they are spending more. As Stef highlighted earlier, we have over 19 million enthusiast buyers who spend on average over $3,000 per year. This is rare territory for any e-commerce company. Our other buyer groups remain key sources of future eBay enthusiasts, and we will continue to invest in the features and levers that put them on that path. As we look to the future, we understand the key questions that you, our investors and analysts have for us. What level of GMV growth can we do over the long term? How much incremental revenue can add some payments deliver? As we continue to invest in the business, how much can operating income grow? And how are we approaching capital allocation in the current market environment? With those questions in mind, let's turn to where we're going as a company. 2 weeks ago, we outlined the first half, second half dynamics we expect during 2022. Our underlying growth picture should be clear in the second half when GMV turns positive, and we plan to exit the year at 2% to 3% volume growth. The investments we're making should carry that momentum into 2023 when we expect GMV to grow 4% year-over-year. We anticipate volume will accelerate further in 2024, with GMV growing approximately 5% year-over-year. At our level of scale, every point of year-over-year growth equates to nearly $1 billion of incremental economic activity. Expansion of our innovation playbook underpins our growth outlook. We expect focus category coverage will grow from 20% of GMV at the end of 2021 to approximately 50% of our volume by the end of 2024. In aggregate, these categories are expected to grow at double-digit rates in 2024, which would enable us to reach our multiyear growth targets with minimal contribution from other categories. Revenue should continue to outpace GMV for the foreseeable future, driven by adds and payments. We expect revenue to grow between 0% and 3% year-on-year at constant currency in 2022 with faster growth during the second half of the year. That momentum should carry into 2023 with revenue growing 5% to 6% year-over-year or 2 points faster than volume. We anticipate revenue growth of approximately 7% to 8% in 2024 or roughly 2 to 3 points ahead of GMV. As Alex detailed earlier, we expect to roughly double our ads business to over $2 billion by 2025, representing a CAGR of nearly 20% over the next 4 years. This implies ads penetration eclipses 2% of GMV by 2024, while our team sees a path to reaching 3% or higher over the long term. We expect managed payments to add $300 million in cumulative incremental revenue, independent of volume growth over the next 3 years. We continue to see additional opportunities for partnerships related to buyer and seller financing. We'll also introduce services like an eBay wallet that can reduce purchase friction and further optimize our cost of payments. Our investments supporting focus categories are key to driving accelerating growth I just laid out. We expect the investments in product and full funnel marketing to continue through 2024. However, volume leverage and operational efficiency should lead to margin expansion beyond 2022. Following operating margins between 30% and 31% this year, we expect margins to expand by a total of 100 basis points across the following 2 years. This outlook implies operating income will grow at CAGR between 8% and 9% from 2022 to 2024. In addition to investment fueled by volume leverage, we expect to reinvest approximately $300 million in cost savings through our structural cost program over the next 3 years. These savings will be fully reinvested into value-added growth initiatives. You should expect us to maintain a balanced and disciplined approach to capital allocation as our key tenants and targets remain unchanged. We'll continue to evaluate opportunities to supplement our organic growth with disciplined acquisitions and investments. We will continue to use the build, buy, partner framework I discussed earlier as our blueprint. The approach not only enables us to execute our strategy, but will also drive long-term value for shareholders. Our growth and margin targets should yield roughly $7 billion in free cash flow over the next 3 years, providing ample reserves for future capital returns. We plan to return approximately 125% of our free cash flow to shareholders over the next 3 years through repurchases and dividends. Turning to EPS. After mid- to high single-digit growth in non-GAAP EPS this year, we anticipate EPS to grow approximately 10% year-over-year in 2023. We expect EPS to accelerate to mid-teens growth in 2024. This outlook implies roughly 2/3 of our EPS growth in '23 and '24 is driven through operating income expansion. As I reflect on my first 9 months at eBay, I've been truly inspired by the passion employees have shown as they rally around our common vision, building the eBay of the future through a tech-led reimagination. With an uncompromising focus on customer centricity, we are building trust between sellers and buyers, leveraging our scale to benefit the communities we serve and accelerating the circular economy. In short, we are building the world's largest sustainable marketplace. Our focus categories are already fueling growth, and we are just getting started. We are moving faster category by category, country by country, delivering innovative new shopping experiences through technology. We expect this transformation to accelerate eBay's revenue growth in the years ahead in line with the healthy growth in our $1 trillion-plus market opportunity. Our fortress balance sheet and best-in-class margins provide the flexibility to invest in growth initiatives, generate consistently strong operating income and free cash flow, and increase total shareholder returns through repurchases and dividends. This is our path to generating sustainable growth on long-term value for shareholders while also supporting our people, our communities and our planet. I'd like to echo Jamie's comments from earlier today, by thanking our incredible eBay teams for their relentless execution. They are truly the reason our tech-led reimagination has come to life. Their passion for sellers and buyers is creating a more vibrant eBay and economic opportunity for all. With that, Jamie and I will now take your questions. Joe, over to you.

Thank you, Steve. With us now are Jamie Iannone and Steve Priest for our final Q&A segment. [Operator Instructions] We've had a number of questions come in on the expected business impact of the ongoing situation in Ukraine. Jamie, could you address your views on the conflict and its expected impact?

Yes. Steve, do you want to take that one?

Thank you, Jamie. First of all, I'd just like to reflect on the atrocities that are happening in Ukraine, and just say that all of us here at eBay stand by Ukraine as we go forward. I think it's fair to say that with a couple of our significant European markets, we're seeing a little bit of softness as a result of the atrocities that are happening, but it's not material. We put out guidance a couple of weeks ago, our earnings and our Q1 and full year guide for 2022 still remain intact.

Thank you. Our next question comes from Colin Sebastian at Baird. Outside of the pandemic, eBay's core marketplace has lost share and struggled to grow for a number of years. What should give investors confidence that this dynamic is poised to change with near-market growth?

Do you want to start?

Yes, I'll pick that up. Thanks, Colin, for the question. Good to hear from you. I think as I stand back, and I mentioned this in my prepared comments, thinking back 2019, the whole year, we were down minus 2%, the business was shrinking. The exit rate in [ 2019 ] was minus 4%. And as we entered 2020, pre-pandemic, we were planning for another 2% deceleration in the business. What we have seen over the last 18 months has been transformational. We've lent into the focus categories we've invested effectively, and we've seen sustainable underlying growth in our business. In fact, as we sort of see the first relatively clean lapping perspective in the second half of 2022, we are seeing an exit rate or anticipating an exit rate between 2% and 3%. And you can see what our expectations are that we've laid out today for '23 and '24. So I'm really excited about the tech-led reimagination and the transformation that is having in the business juxtapose with where we were before the pandemic.

Our next question comes from Brian Fitzgerald at Wells Fargo. It's been great to see how many buyers have responded to authentication. Could you talk about how that's improving seller confidence in the platform as well? Are there any learnings for items that maybe don't require authentication per se, but where maybe the item value is such that a buyer or seller might want to have a third-party verifying what is sent and what is received?

yes. Sorry. More?

Go ahead.

Okay. So let me take that question. So first on the authentication. Yes, it's very powerful for sellers because they know how much the buyers are going to trust the product that helps with their selling prices, it helps with bringing buyers onto the platform. So that's a real differentiator. I've even talked to some really experienced sellers. We have a seller called Watch Box, who's a very sophisticated watch seller, does amazing work authenticating their products themselves. I'd say, buyers love what we're doing on our platform even though they're a well-established watch seller because that level of trust is just game changing on the platform. So it's pretty significant. To the question of how do we build trust for things that we don't authenticate? I would probably point to like parts and accessories. Their trust is really about, is this part going to fit my vehicle, my boat, my RV, whatever it is. And that's why we're investing so much behind that. The other thing I would point you to is maybe our refurbished products. So we launched eBay Refurbished last year. Wonderful product. You can get like new products for 40% off what you would pay otherwise, and it comes with a 2-year warranty, 30-day hassle-free returns and eBay money back guarantee. So it's a like new product at amazing value, wrapped with all that trust. The last 2 laptops I bought from my family were actually Lenovos off of our Certified Refurbished. You really couldn't tell that they're not new products, and I got them at a great value. So we've started expanding that program to what we call seller refurbished. We're starting in our mobile phone area. And what that is, is when sellers have that level of trust and they've been [indiscernible] and meet that criteria, we offer a warranty with those products as well. As an example of, in addition to authentication, us really building a game-changing level of trust across the platform, as Jordan mentioned earlier, it's so important to what we're doing in our focus category strategy.

Our next question comes from Eric Sheridan at Goldman Sachs. Can you give greater level of clarity on the elements of the $300 million of incremental cost savings from current OpEx run rate levels?

I think it's really important that we take sort of responsibility within the company to help fuel and fund the growth that we've been seeing. When I stand back and think about watches and sneakers and handbags, the investments we have made have really fueled growth. And so we -- at the same time that we're investing in our products, we're going to drive operational efficiency. And so the $300 million that we're going to generate off the structural cost program over the next 3 years will really help us to fuel that growth and continue to drive the durability of our financial model while we continue to drive growth on the platform. So it's going to be a really, really important focus for us and a really key ingredient of our sort of financial model as we go forward.

Our next question comes from Doug Anmuth of JPMorgan. How should we think about the level of take rate going forward with managed payments now fully rolled out? And could you discuss some of the opportunities that can move take rate higher over time?

Thanks, Doug. So when I think about our take rate, we should think about our take rate being roughly about 12% today. And you've heard from Julie and you heard from Alex about some of the exciting opportunities we have going forward. Alex talked about our ads business and how we're going to double it again over the next 4 years. You heard about some of the innovation that Julie talked about in payments and how we're going to generate an incremental $300 million of payments over -- through sort of 2024. So I'm really excited about those opportunities. And obviously, they will continue to go forward towards our take rate and not only sort of drive the take rate, but give us a further opportunity to drive earnings growth for the enterprise.

Our next question comes from Brian Fitzgerald at Wells Fargo. You talked about the growth in preowned, particularly among younger buyers, and the sustainability push across the company. Can you talk a little bit more about the sustainability vision and how that aligns with younger buyer cohorts? Anything you could tell us about your brand awareness and association with sustainability among younger users or growth in those younger cohorts?

Yes. Look, eBay was really the pioneer of recommerce, back from starting with our original item, which was a broken laser pointer that Pierre sold 27 years ago. And so it's at the core of what we do is leaning into that opportunity. In fact, if you look at the strategic direction of where we're going with non-new in season with [indiscernible], with [ N-1 ] Fashion, with refurbished product, it leans right into what's so important to Gen Z, and that's the sustainability angle. They look at it very different than how a boomer looked at it, and that's what we're seeing in the experience. We did a recommerce report recently. And what we found from that was that 32% of Gen Z actually started in the last year selling secondhand goods online. And it's a trend that I think is only going to accelerate. So we're doing a lot of things to lean into it. Specifically, categories like our focus categories and sneakers are bringing a lot of Gen Z and Millennials forum. I talked earlier about some of the new marketing that's vertical specific that we're doing. Think about those TikTok campaigns. This is a very different eBay, 12 billion views on TikTok, 2 million user-generated videos off of our latest campaign there. So we're leveraging a new marketing capability with vertical-specific marketing leaning in to where the puck is going for our younger demographics, which is really around recommerce and sustainability and building a game-changing experience. Think the messaging piece that I talked about earlier, how it looks just like everything else that Gen Zs are using. So I think the combination of those 3 is really important to continue to accelerate what we're doing with our younger cohorts.

Our next question comes from Scott Devitt at Stifel. Can you talk more about the Vault? Will this be where a product requiring authentication passes through before going to the buyer, which I think you do versus via a third-party partner as well as a storage facility for goods that can be authenticated and traded without physical possession? How much of the business do you think can be benefited or enhanced by this type of offering?

Yes. Thanks for the question, Scott. So look, we think this is an amazing new offering, really unique and leans into a sweet spot, which is eBay has always been the home for collectors and collectibles. So to your specific question, yes, when a product comes into the Vault it's actually going to be authenticated. This way, we know when a future buyer buys it, maybe the third or fourth buyer, they know that, that product has already been authenticated and is the product that they're buying. Because remember, they're not even going to touch or see the product by buying it once it's in the Vault. So that storage gives a lot of capabilities. I mean you could think about just something happening during a football game or a basketball game and people wanting to trade cars, and the ability of the Vault makes it what Jordan likes to call instant sale on the platform, and it's pretty exciting and compelling. There's some specialty Vaults out there, but no one is doing what we're doing at the scale. When you talk about, what's the opportunity? I think in Jordan's prepared speech upfront, he said, this, we could potentially have $3 billion in assets in the Vault. So we know that there's a lot of consumer demand for this product. But once again, we'll launch it, we'll see. As we've done with everything, we'll iterate and pivot, listen to our sellers and buyers and make it the best experience in.

The only thing I would add, Jamie, also is that when these assets are in the Vault, Jamie talked about their ability to trade. So really, once these items are there, it really can drive some really high ASP items first as we fuel the growth in these focus categories. So for me, as we think forward is, again, the Vault is a key ingredient for the commerce that we're having at eBay. And we're really leaning into these collectibles and these focus categories to fuel the future growth.

It's a good point. Jordan talked about the $2.3 million Tom Brady car that's sold on the platform. Julie talked about other high ASP transactions. So we do think it builds into that level an opportunity to trade even more expensive items on the platform.

Our next question comes from Stephen Ju at Credit Suisse. Can you share some details, please, into what inputs are going into the GMV growth outlook? Is this a bottoms-up build based on your expectations of buyers and sellers growth, and anticipated transaction velocity? Or is this a tops-down build based on your expanded TAM?

I'll pick that up. Thank you, Stephen. So as I stand back, let's just start with 2022. We came out 2 weeks ago and talked about the guide for the year. And as you would expect, we take a very thoughtful approach to when we're putting guidance out and a very balanced and disciplined approach to that. So in terms of 2022, we've made certain assumptions. We thought about mobility. Mobility is so stabilized over the last few quarters, and we wouldn't expect that to be any different. As we think about macro trends, think about GDP growth, think about inflation, I think about supply chain challenges. We expect those to continue to go through 2022 and then sort of moderate. The focus category growth is a key ingredient for us that is fueling the growth of the enterprise. We exited 2021 with 20% of our GMV getting touch phone focus categories. We expect that to accelerate during 2022. We took that length about [ P&I ] as we go forward. And then as you think about '23 and '24, it's continuing with that playbook. It's going category by category, country by country, investing in the product and really seeing the flywheel going forward. And that's why we are so confident in our growth trajectory for 2023 and '24 and beyond. And that's why we have that confidence about the 5% growth in 2024. And the final thing I would say is thinking about the TAM. The non-new-in-season TAM that we are very focused on, we see a great trajectory, and it's a great area for eBay to continue to play in as we drive the playbook going forward.

Our next question comes from Tom Champion at Piper Sandler. GMV sounds concentrated around 4 or 5 key categories. And just curious if there are any incremental verticals that look interesting. Also curious to what extent you're pursuing a global enthusiast buyer versus concentrating on the U.S., U.K. and Germany.

Yes. So thanks for the question. So first off, when you look at the stuff that Stef talked about earlier with the eBay multiplier effect, when we have a buyer that we get to buy in a focus category and they become an enthusiast buyer, they buy 8 other categories on the site. So that is a massive difference because you can actually get the global effect of them across a number of different verticals when we do that. So yes, we've talked about continuing to expand our efforts on focused categories. But in addition, there's that multiplier effect, which really helps the overall platform. To the question on geographically, really everyone across the world. And that's one of the unique benefits of eBay is our cross-border trade business. As Steve talked about, 1 in 5 transactions are done between a buyer and seller in different countries. And it's really important to these enthusiast buyers because it just opens up so much more inventory across the globe for them to buy. And so we've opened up quarters for sneakers in terms of cross-border trade. And so people are buying across boundaries through our new focus category product. It's always been important to eBay, but what we're trying to do this year is actually make it even easier. So we've launched this product called the global shipping product. We've got that live today. And when I talk to some sellers, they're like, "Wow, that's a fantastic product because it allows me to ship to 190 different countries with ease because we take care of the hard work. This year, we're going to be investing more in programs that make export even easier for our sellers, leaning into the opportunity that we have in our cross-border transaction business. So as Stef talked about it, it's the third rung of the eBay multiplier effect after we get them to more categories is expose them and get them buying across eBay's global inventory.

Our next question comes from a buy side investor. Per the advertising model, I continue to see many ads when I search that take me off eBay to another site. What percentage of ad revenues is via inventory that takes the user off the eBay site?

I'll start and then you can add in maybe. So one of the things I'm really proud of with our advertising program is how we've shifted it towards a 1P model. So if I look back a couple of years, 85% of our advertising revenue was actually taking people off of eBay. And over time, we've actually changed that ratio. So now 80% is our 1P business. So an incredibly strong 1P business driving growth is great for the marketplace. A, it keeps our buyers on the platform not driving them off of the platform. But in addition, it gives our sellers more capabilities to promote and drive velocity of their items, which is a healthy thing for the marketplace and in terms of driving demand, giving them a great ROAS or return on ad spend, et cetera. In addition, you think about the treasure trove of data that we have, right? Every search data, every watch data, who the customer is, what they've been browsing. And so that data and opening that up to our 1P business with things like merchandising modules, things like visually similar that we showed today will continue to be a great opportunity. So I'm pleased with the shift, and we'll stay in the range of having the majority of our business in this healthy 1P advertising.

And then the only thing I'd add to what Jamie said is just how excited I'm about ads in the future. I think Alex and the team have done a tremendous job over the last few years, not just pivoting from third party to first party, but continue to drive sustainable growth in our ads business. And I'm really excited about another doubling of that revenue over the next 4 years, which is going to be a tremendous contribution for our shareholders.

Our next question comes from John Colantuoni at Jefferies. Your outlook for $7 billion in free cash flow is below our estimate. Can you give us more color around your expectations for working capital and capital expenditures to help bridge the gap? Is the Vault, a meaningful capital investment?

Great question, John. So I'll step back and just reflect on how durable financial model is. We have best-in-class margins, a fortress balance sheet and very high conversion of operating income to free cash flow. I think if you reflect back, John, over the last few years, and I understand the question about the $7 billion, we do have a situation where we're [ lapping ] some working capital benefits that we saw as we rolled out the managed payments framework. And secondly, we have some onetime items associated with taxes as we go forward. But for me, the key element is this really durable financial model that we have going forward and just the sheer level of free cash flow that we'll be generating over the next few years. In terms of the second question, with regard to the Vault, it's not a meaningful capital investment for us as eBay. We put out our CapEx guide. It's main line with previous years, and it's obviously implied in our guide as we've gone forward for '22 and beyond. So really excited about the Vault how it's going to transform our collectibles business and really sort of type things forward for the future.

Our next question comes from Doug Anmuth at JPMorgan. GMV growth is accelerating to 5% in 2024. Should we think about 5% as a stable growth rate beyond '24? Or is there a path to further acceleration in GMV beyond '24?

Doug, I'll take that one. I'm really excited by the growth. As I mentioned in my prepared clients and obviously from the question we had earlier, we have seen accelerating and sustainable growth as we've gone through the last few years and continue to have growth aspirations as we go through '24. I'm not going to get ahead of myself. We've very clearly laid out for our investors a 3-year plan today in terms of our expectations, really is a reflection of the strategy we've embarked upon and the success of the tech-led reimagination, and I'm looking forward to us executing and driving significant value for shareholders in the year ahead.

Our next question comes from Seth Sigman at Guggenheim. Can you elaborate on the acquisition versus build strategy, specifically in the context of expanding the focus categories to 50%?

Yes, I would say we use a build, buy, partner framework across the board when we look at opportunities. Like I mentioned earlier, there's a lot of cases where the build is the best option and the fastest option for us to do so. I talked about our hundreds of AI and data scientists that we have at the company who are building these game-changing level experiences. At the same time, we want to be a better partner to other companies. We talked about Klarna today. We've talked about Adyen in the past. We talked about Afterpay in Australia, so those cases where people can bring a capability to us is great and we want to do more of those partnerships. Julie mentioned the Chase 5% cash back program that we had running to help drive traffic back, get a lot of impressions to bringing traffic to eBay. And then finally, on the buy scenario, I mentioned a couple of the ones that we've done with Sneaker Con and our investment in bidadoo. So we'll continue to look at all 3 of those as we have in the past, and move forward, which whatever we think, helps accelerate the strategy and get us to that vision that we ultimately have.

Our next question comes from Ross Sandler at Barclays. As advertising grows and you start to head towards the 3% of GMV you noted, do you see upside to the 32% operating margin target? What areas could drive upside or downside to your margin targets?

I'll pick that one up. Ross, I think it's about balance. You hear me say a lot about balance and discipline. And I think we've continued to exhibit that as we've gone through eBay over the past and as we look to it going forward. It's really important that we continue to invest in the business. You've seen the returns of those investments as we've gone through the last few years as we've lent into various categories going forward. For me, we still have best-in-class margins, and this has been a really, really effective tool for us as we go forward. You've seen as the guide that we've put out today that we see some increases in momentum with operating margin as we go from '22 through '23 to '24. Again, I'm not going to get ahead of myself beyond 2024, but I'm really proud of what the work that the team is doing, the durability of the financial model and operating margins are just one part of that, that really continues to drive great returns for our shareholders as we go forward.

Our next question comes from a buy-side investor. Can you please explain what the $450 million per year roughly of CapEx goes towards exactly? 4% to 6% of sales seems high for a marketplace model without fulfillment. Where does the money goes?

I'll pick that one up, Jamie. We have an incredibly capital-light model. If you think about our marketplace and as we go forward, again, we're very measured in terms of our investment and discipline as you go forward. As you would imagine, it will be the usual suspects in terms of real estate from sort of technology and sort of data center evolution and things like that. And obviously, the Vault that we talked about earlier is part of the guide as we're going forward, but it's not a material element of our CapEx profile. But again, I'd stand back and think about the overall durability of our financial model and having the balance between OpEx investment, CapEx investment and continue to drive those sustainable returns for our shareholders as we go forward.

Our next question comes from James Lee at Mizuho. Your full year '24 guidance assumes only 1.5 points of improvement in take rate while you spoke about an incremental 2 to 3 points from ads and payments. Are you simply being conservative? Or are we missing something?

As we stand back and we think about the years ahead, we looked at various puts and takes within our overall business. For me, I'm absolutely focused on top line growth, but particularly in earnings growth for the business as we go forward. And the component parts of take rate will obviously be our final value. Seller fees, there'll be a blend of ads, there'll be a blend of payments as we go forward. And there will continue to be puts and takes. But again, I'm really happy with the progress we've continued to make. I'm excited about the work that Judy is doing in payments, and Alex is doing in ads. And that will drive good momentum in our take rate going forward and great earnings power for our business.

Please stand by while we gather our next question. Our next question comes from Stephen Ju at Credit Suisse. There's a high level of manual work required to run some of these core categories, authentication and the creation of 3D imagery being some of the examples. Should we view these as being lower margin? Or should we think that these additional requirements will be reflected in the take rate?

Do you want to pick that one up?

Well, let me explain the 3D and then you can take over.

Sounds good.

So the 3D imaging, the whole idea with that is actually making it so easy that sellers could do it by themselves. So that's not eBay doing it, but sellers. And so what we've challenged our AI teams to do and computer vision teams is, how do we make this really seamless for sellers to do really quickly but create these beautiful, rich 3D models. Much like I talked about video, it's a game changer on the platform. What I'm excited by is what you saw in the demos that we showed today is technology that we're working on that doesn't require a big fancy studio to create. It can actually be done by sellers at a really minimal cost. So we're really conscious of how do we build products that actually scale out to our community and leverage them, and that's a good example. I don't know if you want to add to that, Steve.

I think I want to add is that, Jamie, it's about building trust on our platform and products that delight our customers. And as CFO, when I stand back from this enterprise, I think about the aggregate margin of our business. And these investments are fueling growth, and they're fueling shareholder returns. And so for me, it's about the margin of the enterprise, building trust, building sustainability and delighting our customers as we go forward.

We have time for one more question. That question comes from Deepak Mathivanan at Wolfe Research. You noted plans to return to 125% of free cash flow as capital returns to shareholders. You have capacity to return more. Is that just the initial plan? Or do you have a plan for a different capital structure?

Hi, Deepak. Again, I'll take a step back and think about, we've been really solid allocators of capital over the last few years. We returned a significant amount of returns to our shareholders over the last 3 years in particular. Think about the divestiture that we did. Think about the elements of like the $5 billion of returns that we've made over the last 3 years. As I always said, our first priority is to invest in the business to stimulate growth and to stimulate returns ultimately for shareholders through the build, buy, partner framework. And then when we have any excess capital over and above that, we'll drive those forward to balance the thoughtful capital return to shareholders by the dividend that we just increased and through buybacks as we go forward. So nothing has changed in terms of our philosophy around capital allocation, and I'm really pleased with the progress that we've made. And again, I'd say that we've been really good stewards of capital and will continue to be the same.

As we wrap, would you like to share any closing thoughts?

You want to start, and then I'll go.

The first thing I would say is just how excited I am about the growth trajectory that we have had and the growth trajectory ahead of us. As I mentioned earlier, we took a negative growing business. It was shrinking as we came into the pandemic. It's growing as we come out of it. And the strategy is clearly working. And as we sort of lean into the focus categories, I'm really excited about the growth trajectory going forward. The other thing I would say is about the durability of our financial model. We have best-in-class margins. We have a fortress balance sheet, and we have a very, very high conversion of operating income to free cash flow, which for any investor, as you sort of stand back, should be really excited about the opportunities ahead for eBay and the sustainable earnings both that, that would generate.

Yes, I'd just say I'm incredibly excited for what I'm calling kind of the new eBay. We've changed our strategy where we're focused on non-new in season. Our focused category playbook is working, our commitment to our seller community has changed radically, and that's really powerful. And so the first thing I'm happy with is just the trajectory, as Steve said, that we're on. Second thing I'm happy about is the speed of our technology innovation. I talked to many of you when I arrived that I was a little frustrated by the tech that we had and our pace of movement. And I've been really excited by how fast we're moving now, how much we've invested in tech velocity, talking to you about programs like the unified listing experience, which is a game-changing new platform. And so that pace we hope will continue to move over time. Lastly, I'm excited by the team, and I'm glad you got to spend some time with them today. You didn't get to meet the whole leadership team, but we put together a really world-class team, and even below that team and every level of the organization, we're bringing in incredible talent into the organization, and that's really exciting as well. I guess I want to close with a thank you. I first have to thank our buyers and our sellers. They are what makes this platform what it is today. They drive the incredible velocity that we have on the marketplace. They've done $1.1 billion in charity. And we've connected people who need stuff with people who have stuff like the PPE description that I talked about earlier. So thank you to our amazing community. Thank you to our eBay employees. They make eBay what it is. I love the energy that they bring. I'm excited as our campuses are now starting to come back in person to be able to move even faster with that proximity that we haven't had really for the last 2 years. Finally, I want to thank all of you. Thank you for spending a couple of hours with us today. Thank you for your interest in eBay, and I look forward to future conversations. Thanks.

Thank you very much.

We want to thank you for joining us today, and we look forward to meeting you in person in the future. As we wrap, we'd like to share a summary highlight video with you. Please enjoy. [Presentation]