PayPal Releases Financial Results for Q4 and Full Year 2022

PayPal Holdings, Inc. (PayPal) announced its financial results for the fourth quarter (Q4) and full year 2022, seeing continued volume and transaction growth.

Financial Highlights

Q4'22: Net revenues increased 7% and 9% FX-neutral basis (FXN)

• Net revenues of $7.4 billion, 7% growth and 9% FXN.

• GAAP operating income of $1.2 billion, growing 18%; non-GAAP operating income of $1.7 billion, growing 12%.

• GAAP operating margin of 16.8%, expanded 167 basis points; non-GAAP operating margin of 22.9%, expanded 115 basis points.

• GAAP EPS of $0.81, compared to $0.68 in Q4'21; non-GAAP EPS of $1.24, compared to $1.11 in Q4'21.

• GAAP EPS includes a negative impact of ~$0.11 on PayPal's strategic investment portfolio, compared to a negative impact of ~$0.18 in Q4'21.

FY'22: Net revenues increased 8% to $27.5 billion with ex-eBay growth of 12%

• Net revenues of $27.5 billion, 8% growth and 10% FXN.

• Revenue excluding eBay grew 12% on a spot basis, on top of 29% growth in FY'21.

• GAAP operating income of $3.8 billion, declined 10%; non-GAAP operating income of $5.9 billion, declined 7%.

• FY'21 GAAP and non-GAAP operating income included a ~$312 million benefit from the release of credit reserves.

• GAAP operating margin of 13.9%, declined 286 basis points; non-GAAP operating margin of 21.3%, declined 352 basis points.

• GAAP EPS of $2.09, compared to $3.52 in FY'21; non-GAAP EPS of $4.13, compared to $4.60 in FY'21.

• GAAP EPS includes a negative impact of ~$0.20 on PayPal's strategic investment portfolio, compared to a positive impact of ~$0.06 in FY'21.

Operating Highlights

Q4'22: Continued volume and transaction growth.

• $357.4 billion in Total Payment Volume (TPV), up 5% on a spot basis and 9% FXN.

• Venmo processed $62.5 billion in TPV, growing 3%, on top of 29% growth in Q4'21.

• 6.0 billion payment transactions, up 13%.

• 51.4 payment transactions per active account on a trailing twelve month basis, growing 13%.

• 2.9 million net new actives (NNAs) added, with total active accounts of 435 million, up 2%.

FY'22: $1.36 trillion in TPV, with >22 billion transactions up 16%.

• $1.36 trillion in TPV, up 9% on a spot basis and 13% FXN.

• TPV excluding eBay grew 11% on a spot basis and 14% FXN, representing 98% of TPV.

• Venmo processed $245.3 billion in TPV, growing 7%, on top of 44% growth in FY'21.

• 22.3 billion payment transactions, up 16%.

• 8.6 million NNAs added, with total active accounts of 435 million, up 2%.