PayPal Sees Stable Growth in Payment Volume and Transaction for Q1 2023

PayPal Holdings, Inc. (PayPal) announced its first quarter 2023 results for the period ended March 31, 2023 (Q1 2023), seeing continued volume and transaction growth.

Financial Highlights

• Net revenues totaled $7.04 billion for the quarter, up 9% compared to $6.48 billion in Q1 2022.

• GAAP operating income of $1.0B, growing 41%; non-GAAP operating income of $1.6B, growing 19%.

• GAAP operating margin of 14.2%, expanding 322 basis points; non-GAAP operating margin of 22.7%, expanding 201 basis points.

• GAAP EPS of $0.70, compared to $0.43 in Q1'22; non-GAAP EPS of $1.17, compared to $0.88 in Q1'22.

• Operating cash flow of $1.2 billion, down 4% on a yearly basis; free cash flow of $1.0 billion, down 3% on a yearly basis.

Operating Highlights

• Total Payment Volume (TPV) totaled $354.51 billion for the quarter, up 10% compared to $322.98 billion in Q1 2022.

• Payment transaction amounted to 5.8 billion, up 13% on a yearly basis.

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

• Active accounts reached 433 million, up 1% on a yearly basis.

Dan Schulman, President and CEO of PayPal, commented: "PayPal had a very good start to 2023 and delivered stronger than expected performance in the first quarter. We're working hard to continually improve our already popular checkout and digital wallet experiences, and it is beginning to pay off. We are confident in our momentum and are raising our full-year EPS guidance as a result."

Gabrielle Rabinovitch, Acting CFO and SVP, Investor Relations and Treasurer at PayPal, added: "We are proud of our first quarter results which reflect both the diversification of PayPal's platform and ongoing benefits from productivity initiatives. We remain focused on advancing our strategic priorities while operating with discipline in what remains a dynamic environment."