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Dec 31, 2022

PayPal Q4 2022 Earnings Report

PayPal demonstrated margin expansion and EPS growth through operating discipline.

Key Takeaways

PayPal's Q4 2022 results showed a return to margin expansion and EPS growth, driven by operating discipline. Net revenues reached $7.4 billion, growing 7% (9% FXN), and GAAP EPS was $0.81, compared to $0.68 in Q4 2021. Total Payment Volume (TPV) reached $357.4 billion, up 5% (9% FXN).

Net revenues reached $7.4 billion, growing 7% (9% FXN).

GAAP EPS was $0.81, compared to $0.68 in Q4'21; non-GAAP EPS was $1.24, compared to $1.11 in Q4'21.

Total Payment Volume (TPV) reached $357.4 billion, up 5% (9% FXN).

Added 2.9 million net new active accounts, bringing the total to 435 million.

Total Revenue
$7.38B
Previous year: $6.92B
+6.7%
EPS
$1.24
Previous year: $1.11
+11.7%
Active Accounts
435M
Previous year: 426M
+2.1%
Payment Transactions
6.03B
Previous year: 5.3B
+13.8%
Transactions per Account
51.4
Previous year: 45.4
+13.2%
Gross Profit
$3.67B
Previous year: $3.62B
+1.5%
Cash and Equivalents
$7.78B
Previous year: $5.2B
+49.6%
Free Cash Flow
$1.43B
Previous year: $1.55B
-7.5%
Total Assets
$78.7B
Previous year: $75.8B
+3.8%

PayPal

PayPal

PayPal Revenue by Geographic Location

Forward Guidance

PayPal provided financial guidance for Q1 2023 and full year 2023.

Positive Outlook

  • Q1'23 net revenues expected to grow ~7.5% on a spot basis and ~9% FXN
  • Q1'23 GAAP EPS expected to be $0.62-$0.64
  • Q1'23 non-GAAP EPS expected to grow 23%-25% to $1.08-$1.10
  • FY'23 GAAP EPS expected to be ~$3.27
  • FY'23 non-GAAP EPS expected to grow ~18% to ~$4.87