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Mar 31, 2023

PayPal Q1 2023 Earnings Report

PayPal reported a strong start to 2023 with revenue and EPS outperformance.

Key Takeaways

PayPal's Q1 2023 results showed a strong start to the year, with revenue and EPS exceeding expectations. The company reported TPV of $354.5 billion, net revenues of $7.04 billion, and GAAP EPS of $0.70. PayPal raised its full-year EPS guidance due to this strong performance and cost initiatives.

Total Payment Volume (TPV) reached $354.5 billion, a 10% increase (12% FXN).

Net revenues were $7.04 billion, up by 9% (10% FXN).

GAAP EPS was $0.70, a 61% increase, while non-GAAP EPS was $1.17, a 33% increase.

The company is raising its full-year EPS guidance, reflecting confidence in momentum and cost initiatives.

Total Revenue
$7.04B
Previous year: $6.48B
+8.6%
EPS
$1.17
Previous year: $0.88
+33.0%
Active Accounts
433M
Previous year: 429M
+0.9%
Payment Transactions
5.84B
Previous year: 5.16B
+13.1%
Transactions per Account
53.1
Previous year: 47
+13.0%
Gross Profit
$3.32B
Previous year: $3.3B
+0.5%
Cash and Equivalents
$7.1B
Previous year: $4.86B
+46.1%
Free Cash Flow
$1B
Previous year: $1.05B
-4.9%
Total Assets
$77.2B
Previous year: $75.8B
+1.8%

PayPal

PayPal

PayPal Revenue by Geographic Location

Forward Guidance

PayPal provided guidance for Q2 2023 and FY 2023. Revenue for Q2 is expected to grow approximately 6.5%-7% and non-GAAP EPS is expected to grow 24-26%. GAAP EPS for FY 2023 is expected to be ~$3.42 and non-GAAP EPS is expected to grow ~20%.

Positive Outlook

  • Net revenues expected to grow ~6.5%-7% on a spot basis and ~7.5%-8% FXN for Q2 2023
  • GAAP earnings per diluted share expected to be $0.81-$0.83 for Q2 2023
  • Non-GAAP earnings per diluted share expected to grow 24%-26% to $1.15-$1.17 for Q2 2023
  • GAAP earnings per diluted share expected to be ~$3.42 for FY 2023
  • Non-GAAP earnings per diluted share expected to grow ~20% to ~$4.95 for FY 2023