eBay Inc.

Good day and thank you for standing by and welcome to the eBay Q3 2021 earnings call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today.

Good afternoon. Thank you for joining us and welcome to eBay's earnings release conference call for the third quarter of 2021. Joining me today on the call are Jamie Iannone, our Chief Executive Officer, and Steve Priest, our Chief Financial Officer. We're providing a slide presentation to accompany Steve's commentary during the call. which is available through the investor relations section of the eBay website at investors.ebayinc.com. Before we begin, I'd like to remind you that during the course of this conference call, 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 slide presentation accompanying this conference call. Additionally, all revenue and GMV growth rates mentioned in Jamie's and Steve's remarks represent FX-neutral year-over-year comparisons, unless they indicate otherwise. In this conference call, management will make forward-looking statements 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 and our earnings released from earlier today. You should not rely on any forward-looking statements. All information in this presentation is as of October 27, 2021, and we do not intend and undertake no duty to update this information. With that, let me turn it over to Jamie.

Thanks, Joe. Good afternoon, everyone, and thank you for joining us. Today, we'll begin the call with key highlights from the third quarter. Then I will share some updates on the progress we are making towards our strategic vision. At the end of my remarks, I will turn the call over to Steve, who will discuss our financial performance and outlook in greater detail. Q3 was another strong quarter, driven by our team's relentless focus on sellers and buyers. I'm excited by the positive impact this is having on the underlying health of the business. The changes we are making to the marketplace are improving results today and are also putting us in a better position to deliver sustainable growth. We remain confident in our long-term vision to grow the core, become the seller platform of choice, and cultivate lifelong trusted relationships with buyers. Let me highlight a few achievements from the quarter that brought us one step closer to this vision. Our business delivered better than expected revenue and earnings growth on the high end of our guidance. Our strategic playbook continues to improve customer satisfaction and build trust and is leading to faster GMV growth in our focus categories. The managed payments migration, which is nearly complete, is helping sellers and buyers by reducing friction, lowering costs, and enabling new capabilities. Our advertising business continues to grow faster than marketplace volume, and our product innovation provides sellers new tools to help them scale their eBay businesses. We are also making great strides in our ESG efforts. Recently, we received approval from the Science-Based Targets Initiative for our multi-year carbon emission reduction goals. And importantly, we announced that eBay will be 100% carbon neutral this year and will remain so going forward. I am pleased to report that all key business metrics either met or surpassed our expectations in Q3. Revenue overperformed, growing 10%, driven by acceleration in the payments migration and promoted listings growth. We also delivered 90 cents of non-GAAP EPS at the high end of expectations while increasing technology investments. GMB performed in line with expectations globally, declining 12% versus last year and increasing 9% compared to 2019. Excluding transitory macro impacts, we continue to see modestly positive underlying growth in the business. Global active sellers remained unchanged at 19 million and total active buyers were 154 million. Over the past year, we have focused on attracting and retaining high-value buyers by innovating in focus categories and targeting enthusiasts with upper funnel marketing. We have also discontinued legacy couponing that skewed towards low-value buyers. These actions are resulting in a gradual evolution of our buyer base over time. Compared to the third quarter of 2019, high-value buyers are up 6%. Another ongoing transformation of our marketplace is managed payments, which progress quickly during the quarter. In Q3, we processed over 90% of on-platform GMV and remain on track to finish by the end of this year. I am thrilled that we are close to migrating all of our global sellers to a next-gen product experience. While we are close to completing the transition, we are only at the beginning of realizing our full payments potential. Owning the entire seller and buyer journey unlocks opportunities to remove friction, improve trust, and provide new capabilities to sellers and buyers. We are already starting down this path, and here are a few examples. Last quarter, we effectively eliminated unpaid items on fixed-price transactions and have continued to reduce this issue for best offers. In the U.K., we are paying many sellers as quickly as next business day after buyer payment is confirmed. Based on community feedback, we reduced another pain point for trusted sellers by increasing protection against fraudulent returns by requiring photos and providing return shipping credits. In addition, we continue to improve our stores experience to make eBay the seller platform of choice. We've been increasing our traffic to stores and providing more CRM capabilities to make managing their businesses on eBay easier than ever. Sellers are leveraging these new features to drive repeat purchases. For example, in only six months since launch, more than 2.5 million buyers have completed a repeat purchase from a store using our new seller-funded coupons. To further build sellers' brands, we are testing video integration on high traffic pages to help them tell their unique and compelling stories to enthusiast buyers. Our advertising revenue continues to outpace volume due to promoted listings, which drove over $207 million in revenue in Q3, up 9%. We also tested three new promoted listings products and are starting to offer these features to more sellers. In September, we opened up Promoted Listings Express to more sellers in the US, UK, Germany, and Australia. This feature allows sellers to boost visibility of auction listings for a one-time fee, regardless of whether the item is sold. Early adopters have seen substantial growth in impressions and clicks. Last month, we invited eligible sellers to try Promoted Listings Advanced, enabling them to create campaigns on a cost-per-click basis with more budget control. In parallel, we launched a suite of tools to create campaigns, monitor performance, and optimize returns. We are also providing training and webinars to drive trial and adoption. During Q3, we explored ways to syndicate ads off eBay through external promoted listings. Through the eBay Partner Network, we are testing tools and incentives for affiliates to drive enthusiast buyers to existing promoted listing sellers. We are also experimenting with other forms of seller-funded marketing across various channels. Our new advertising products are in the early days, and we're excited about their long-term potential. Moving to our focus categories, I am pleased with the pace of innovation and the positive reaction from our sellers and buyers. Volume from these categories continues to outperform the rest of the marketplace, and we are increasing customer satisfaction by improving trust. As you may recall, when we exited last quarter, we had applied our playbook to approximately 10% of global GMB. We remain on track to expand that to roughly 20% by the end of the year. Let me walk you through several examples. Our sneakers business in the U.S. continues to grow at healthy double-digit rates. During Q3, we launched authentication in Germany, added 30 more brands to our catalog, and improved SEO performance for top sneaker brands. We also leaned further into upper-frontal marketing and sponsored key industry events to strengthen our reputation with enthusiasts. Starting tomorrow, we'll be trialing a new 3D image capability on select sneaker listings. Leveraging AI and machine learning, the experience will allow buyers to interact with a detailed 360-degree view of the actual item they are buying. We're excited about the potential of this new technology, particularly the ability to reinforce buyer confidence at the point of purchase. Moving to luxury watches, this category is also growing at strong double-digit rates in the US. Buyers are finding more inventory on eBay than other marketplaces, as many brands have decreased production and pre-owned supply is limited on other platforms. Since launching authentication in luxury handbags, growth has accelerated in this category and was positive in Q3, outperforming the total US site by double digits. We are seeing the same high customer satisfaction as other authenticated categories. As I've mentioned in the past, part of our strategy is to drive enthusiasts to new trusted experiences and then leverage those buyers across our vast supply in other categories. The average buyer who purchases sneakers and luxury watches spends approximately $2,000 and $8,000 respectively in other categories. We are seeing the exact same behavior in our latest focus category. Buyers of authenticated handbags are spending over $5,000 outside of handbags. This cross-category benefit for sellers and buyers is a unique advantage for eBay. One of the reasons our growth has improved in luxury categories is the improvement in buyer and seller trust. We recently celebrated the one-year anniversary of authenticity guarantee, having now processed over 1.4 million items across multiple categories. Customer satisfaction has consistently exceeded 90%, and we are operating in five countries with a mix of in-house and third-party resources. Another focus category that is driving growth in the U.S. is trading cards, which is growing significantly faster than the total marketplace. In late July, we launched new features, including price guides and collections, which allow trading card enthusiasts to view, manage, and track the value of their portfolios. To date, close to 4 million cards have been added to customer collections. In addition, close to a quarter of a million buyers have used eBay's newly launched price guide to visualize the changing value of their favorite trading cards. These features cater to the needs of high-value enthusiasts and are increasing engagement and trust in eBay. The next focus category we're applying the Innovation Playbook to is Motors Parts and Accessories. Among the changes we are making is to take our entire parts inventory and add it to the eBay Motors app, creating a one-stop shop for vehicles and parts enthusiasts. We are excited by the potential of bringing together one of the world's largest vehicle collections with hundreds of millions of parts in one customized experience. We are exploring further changes to parts and accessories that leverage our strong market position to capture more untapped growth. ESG remains critical to our business health and to our customers, and I am pleased to announce that we have reached some significant milestones in our journey toward establishing eBay as the leading sustainability company in e-commerce. Just two weeks ago, we announced that our emission reduction goals were approved by the Science-Based Targets Initiative. We will reduce Scope 1 and 2 carbon emissions by 90% by 2030. This is the most ambitious designation available and aligned with the Paris Agreement. Additionally, we will reduce value chain emissions from downstream transportation by 20% in the same timeframe. To reduce emissions from goods shipped using our platform, we will partner with our logistics providers to encourage low carbon alternatives. I'm also proud that eBay will be carbon neutral for our offices and data centers in 2021. We expect to maintain this going forward as we continue efforts to reduce our overall carbon footprint. At eBay, one of our core values is to be for everyone. As part of this focus, supporting our seller community is critically important. Earlier this month, we issued a new report on equitable entrepreneurship, which revealed how selling on eBay helped women during the pandemic. We found that 82% of women who were new to eBay or increased their selling did so because of job loss, reduction of income, illness, loss of childcare, or some other hardships. This vast majority of women surveyed says the ability to sell on eBay was a benefit during the pandemic, citing the need to earn additional income for themselves or drive revenue for their businesses. I'm proud that our platform can provide flexibility and opportunity to so many during tough times so that they can earn extra income through selling on our marketplace. I'm also inspired by the continuous generosity of sellers and buyers on eBay. During Q3, approximately $35 million was raised through eBay for Charity, up 11%. Additionally, thousands of global employees helped select small businesses to receive grants totaling $3 million from the eBay Foundation. These grants are focused on serving underrepresented entrepreneurs and are used to provide training, coaching, and mentorship needed to help their businesses thrive. In closing, as I mentioned at the start of the call, Q3 was yet another strong quarter. We continue to make progress on our multi-year journey, and it is clear that our strategy is working. Enthusiasts are responding to innovation in our focus categories and are increasingly putting their trust in eBay. Managed Payments is on track to complete the migration this year and is driving friction out of the experience while opening up new capabilities for sellers and buyers. Our advertising business is innovating by providing a portfolio of tools our sellers can leverage to build and grow their businesses on eBay. And we are accomplishing all of this while setting and achieving ambitious climate goals and providing a platform where economic opportunity is available to all. I want to thank our passionate employees who have tirelessly worked to bring our vision and purpose to life. Their dedication to serving sellers and buyers is inspiring. Their relentless execution is driving innovation and making eBay a better marketplace, and I couldn't be prouder to lead this team. With that, I'll turn the call over to Steve to provide more details on our financial performance. Steve, over to you.