•
Sep 30, 2022

PayPal Q3 2022 Earnings Report

PayPal delivered a solid third quarter with revenue and EPS outperformance.

Key Takeaways

PayPal's Q3 2022 results showed solid performance with net revenues of $6.85 billion, growing 11% (12% FXN). GAAP EPS was $1.15, and non-GAAP EPS was $1.08. The company raised EPS guidance, benefiting from ongoing productivity initiatives, and is working with Apple to enhance offerings.

Net revenues of $6.85 billion, growing 11% and 12% on an FX-neutral basis (FXN); excluding eBay, revenue grew 13% on a spot basis and 14% FXN

GAAP EPS of $1.15 compared to $0.92 in Q3'21, and non-GAAP EPS of $1.08 compared to $1.11 in Q3'21

Operating cash flow of $1.9 billion, growing 29%, and free cash flow of $1.8 billion, growing 37%

Total Payment Volume (TPV) of $337.0 billion, growing 9% and 14% FXN

Total Revenue
$6.85B
Previous year: $6.18B
+10.7%
EPS
$1.08
Previous year: $1.11
-2.7%
Active Accounts
432M
Previous year: 416M
+3.8%
Payment Transactions
5.64B
Previous year: 4.9B
+15.2%
Transactions per Account
50.1
Previous year: 44.2
+13.3%
Gross Profit
$3.49B
Previous year: $3.35B
+4.2%
Cash and Equivalents
$6.66B
Previous year: $7.78B
-14.4%
Free Cash Flow
$1.77B
Previous year: $1.29B
+36.9%
Total Assets
$76.4B
Previous year: $74.5B
+2.6%

PayPal

PayPal

PayPal Revenue by Geographic Location

Forward Guidance

PayPal provided Q4'22 and FY'22 financial guidance.

Positive Outlook

  • Net revenues expected to reach ~$7.375 billion, growing ~7% on a spot basis and ~9% FXN
  • Revenue excluding eBay expected to grow ~8% on a spot basis and ~10% FXN
  • GAAP earnings per diluted share expected to be in the range of ~$0.83-$0.85, compared to $0.68 in the prior year period
  • Non-GAAP earnings per diluted share expected to be in the range of ~$1.18-$1.20, compared to $1.11 in the prior year period
  • TPV expected to grow ~8.5% on a spot basis and ~12.5% FXN

Revenue & Expenses

Visualization of income flow from segment revenue to net income