eBay Analyst day – Part I Intro and Donahoe Opening remarks.

March 11, 2009

Reminder – if any of the acronyms here are confusing, check the backgrounder here.

Background – the room is setup classroom style with three screens.  ebayinkblog has picture here for those curious about the setup.

8:15am – Kicking off with Mark Rowan, head of IR@eBay – holding Q’s until end of day (yikes). Disclaimers, blah blah blah.

JD intro

  • Making strong changes to keep up with the world of ecommerce
  • New focus on technology and innovations
  • No longer simply auctions co – ecommerce platform provider
  • We are a strong company (highlights skype+paypal)
  • eBay marketplace isn’t keeping up
    • Continues to fall short of our expectations – not acceptable
    • Held on to past too long
    • Made changes.  They were necessary but not enough
    • Dedicated to new eBay – focused on where we can win
  • Strengthening PayPal
    • Opportunity is bigger than eBay
  • eBay execs are accountable for driving change and results
  • Long piece about history of eBay – point is they realise ecommerce is rapidly changing.
    • Building portfolio of formats to address needs.
    • 5yrs ago – eBay marketplace was 75% of what we do.
  • Today – eBay Marketplace is 50% of what we do
    • FP is half of that
    • So when say no longer auctions – it’s only 25/30% – customer driven (I tend to disagree here)
  • Paypal will be 1/3 of what we do in 09
  • Skype growing rapidly

This slide shows mix:
Slide6

This slide was used to show growth in front of all business lines:

Slide7
Industry information – JD

  • Did his Walmart comp as he did at goldman
  • Multiple winners in shopping (ecommerce)
  • Few winners in payments.

Slide8

Paypal will be first today, reiterates how great and big opp is.

Marketplaces comments

  • Didn’t change the model fast enough
  • Throwing out the playbook
  • New in season -1 – where they see winning
  • Marketplace will tranform to wn there.
  • First fix the foundation, stand behind all transactions.
  • eBay to guarantee every transaction – JD has teaser on that. LN will cover
  • Grow complementary formats – ST will cover
  • Creating the new eBay – pace of change and innovation will accelerate – win secondary market.
  • Will take time!

Slides:
(This one has some weeble looking people that everyone on twitter thought was humorous)

Slide15

Here’s a list of auction “myths” they want to ‘pierce’:
Slide16

Here’s the ‘this will take time (011)’ slide:

Slide18 (1)

Skype
Lots of comments here – nothing new.  Not going to apologize for Skype any more.

Operating comments

  • Everyone comped on NPS –
  • Andreeson on board, new CTO
  • Funding platform efforts
  • Never been known for cost management.

Next up – ST from PayPal

SeekingAlpha Disclosure – long amazon and google