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Dec 31, 2021

PayPal Q4 2021 Earnings Report

Solid finish to a strong year, with TPV growing and strategic initiatives advancing.

Key Takeaways

PayPal reported a solid Q4 2021 with TPV reaching $339.5 billion and revenue of $6.9 billion. The company added 9.8 million NNAs, including 3.2 million from the Paidy acquisition. GAAP EPS was $0.68, and non-GAAP EPS was $1.11.

Total Payment Volume (TPV) reached $339.5 billion, a 23% increase.

Net revenues were $6.9 billion, reflecting a 13% growth.

Added 9.8 million Net New Active Accounts (NNAs), including 3.2 million from Paidy.

GAAP EPS was $0.68, while non-GAAP EPS was $1.11.

Total Revenue
$6.92B
Previous year: $6.12B
+13.1%
EPS
$1.11
Previous year: $1.08
+2.8%
Active Accounts
426M
Previous year: 377M
+13.0%
Payment Transactions
5.3B
Previous year: 4.4B
+20.5%
Transactions per Account
45.4
Previous year: 40.9
+11.0%
Gross Profit
$3.62B
Previous year: $3.42B
+5.7%
Cash and Equivalents
$5.2B
Previous year: $4.79B
+8.4%
Free Cash Flow
$1.55B
Previous year: $1.12B
+38.4%
Total Assets
$75.8B
Previous year: $70.4B
+7.7%

PayPal

PayPal

Forward Guidance

PayPal provided revenue and earnings guidance for Q1 2022 and FY 2022.

Positive Outlook

  • TPV expected to grow ~19%-22% at current spot rates and ~21%-23% on an FXN basis for FY22
  • Revenue expected to grow ~15%-17% on a spot and FXN basis for FY22
  • Revenue excluding eBay expected to grow ~19%-21% for FY22
  • Revenue expected to grow ~6% on a spot and FXN basis for Q1 2022
  • Revenue excluding eBay expected to grow ~14% for Q1 2022

Challenges Ahead

  • GAAP earnings per diluted share expected to be in the range of ~$2.97-$3.15 compared to $3.52 in FY’21
  • Non-GAAP earnings per diluted share to be in the range of ~$4.60-$4.75, compared to $4.60 in FY’21
  • GAAP earnings per diluted share of ~$0.50, compared to $0.92 in the prior year period for Q1 2022
  • Non-GAAP earnings per diluted share of ~$0.87, compared to $1.22 in the prior year period for Q1 2022
  • Estimated non-GAAP amounts for the twelve months ending December 31, 2022 reflect adjustments of approximately $2.4 billion, including estimated stock-based compensation expense and related payroll taxes of approximately $1.9 billion