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Mar 31, 2022
PayPal Q1 2022 Earnings Report
PayPal had a solid start to the year with better-than-expected revenue growth.
Key Takeaways
PayPal's Q1 2022 results exceeded its guidance on revenue and earnings, growing faster than the rate of ecommerce. Total Payment Volume (TPV) grew by 13%, and net revenues increased by 7%. The company added 2.4 million Net New Active Accounts (NNAs).
Total Payment Volume (TPV) reached $323.0 billion, growing 13% (15% FXN).
Net revenues were $6.5 billion, growing 7% (8% FXN); excluding eBay, revenue grew 15%.
GAAP EPS was $0.43, compared to $0.92 in Q1’21, and non-GAAP EPS was $0.88, compared to $1.22 in Q1’21.
2.4 million Net New Active Accounts (NNAs) were added, bringing the total to 429 million.
PayPal
PayPal
PayPal Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
PayPal provided financial guidance for Q2 2022 and full year 2022.
Positive Outlook
- Net revenues expected to grow ~9% on a spot and FXN basis for Q2 2022.
- Revenue excluding eBay expected to grow ~14% on a spot basis for Q2 2022.
- TPV expected to grow ~13%-15% on a spot basis and ~15%-17% FXN for FY’22.
- Net revenues expected to grow ~11%-13% on a spot and FXN basis for FY’22.
- Revenue excluding eBay expected to grow ~15%-17% on a spot basis for FY’22.
Challenges Ahead
- GAAP earnings per diluted share expected to be in the range of ~$0.44-$0.46 compared to $1.00 in the prior year period for Q2 2022.
- Non-GAAP earnings per diluted share of ~$0.86, compared to $1.15 in the prior year period for Q2 2022.
- GAAP earnings per diluted share expected to be in the range of ~$2.19-$2.34, compared to $3.52 in FY’21.
- Non-GAAP earnings per diluted share expected to be in the range of ~$3.81-$3.93, compared to $4.60 in FY’21.
- Estimated non-GAAP amounts for the twelve months ending December 31, 2022 reflect adjustments of approximately $2.2 billion, including estimated stock-based compensation expense and related payroll taxes of approximately $1.6 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income