NASDAQ$PYPL

PayPal Holdings · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

PayPal had a solid start to the year with better-than-expected revenue growth.

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.

Headline financials

Total Revenue

$6.48B

Previous: $6.03B+7.5%
EPS (adj)

$0.88

Previous: $1.22-27.9%
Total payment volume

$323B

Previous: $285B+13.1%
Active accounts

429.0M

Previous: 392.0M+9.4%
Payment transactions

5.2B

Previous: 4.4B+18.1%
Transactions per account

47

Previous: 42.2+11.4%
Capital Expenditures

-$191M

Previous: -$221M+13.6%
Free Cash Flow

$318M

Previous: $876M-63.7%
Net Income

$509M

Previous: $1.1B-53.6%
Operating Income

$711M

Previous: $1.04B-31.8%
Gross Profit

$6.48B

Previous: $6.03B+7.5%
Cash & Equivalents

$4.86B

Previous: $5.72B-15.0%
Total Assets

$75.8B

Previous: $72.5B+4.5%
Stock-Based Comp

$429M

Previous: $368M+16.6%

Revenue & EPS history

PayPal · Revenue · Quarterly

$6.48B

Q1 2022+7.5%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

PayPal · $7.42B total across 2 segments · Q3 2023

  • Transaction revenue
    $6.65B
  • Other value-added
    $764M

Forward guidance

PayPal provided financial guidance for Q2 2022 and full year 2022.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.4%

Avg return

Earnings day

-1.8%

Avg return

5 days after

-1.1%

Avg return

30 days after

56%

28 / 50 earnings

Positive

+16.6%

Q1 2020

Best reaction

-22.9%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%-10.0%-15.2%
Q4 2025-20.1%-22.8%-9.0%
Q3 2025+4.7%-1.4%-12.0%
Q2 2025-8.7%-14.2%-10.4%
Q1 2025+2.1%+3.6%+9.2%
Q4 2024-13.2%-13.6%-23.9%
Q3 2024-6.4%-7.6%+3.6%
Q2 2024+11.6%+5.2%+24.1%
Q1 2024-1.3%-1.9%-6.7%
Q4 2023-11.9%-5.7%-7.4%
Q3 2023+6.3%+5.4%+15.2%
Q2 2023-15.0%-14.7%-15.8%
Q1 2023-12.1%-17.7%-14.6%
Q4 2022+1.4%-3.1%-7.9%
Q3 2022-5.4%+2.1%-6.0%
Q2 2022+10.6%+7.6%+4.6%
Q1 2022+10.0%+9.4%+1.8%
Q4 2021-22.9%-26.7%-41.1%
Q3 2021-9.0%-7.7%-12.6%
Q2 2021-5.8%-9.8%-7.4%
Q1 2021+0.7%-2.6%+5.1%
Q4 2020+8.6%+13.3%-4.0%
Q3 2020-3.4%+8.9%+14.2%
Q2 2020+9.2%+11.8%+16.0%
Q1 2020+16.6%+14.8%+24.4%
Q4 2019+0.5%-0.0%-7.3%
Q3 2019+7.8%+9.5%+4.5%
Q2 2019-4.2%-7.3%-11.8%
Q1 2019+3.1%+5.2%+2.8%
Q4 2018-2.6%+0.6%+8.4%
Q3 2018+5.9%+9.3%+6.2%
Q2 2018-2.5%-9.9%-1.4%
Q1 2018+1.0%-0.9%+7.5%
Q4 2017-6.4%-10.8%-5.9%
Q3 2017+5.5%+4.4%+13.6%
Q2 2017+3.2%+0.5%+2.9%
Q1 2017+5.5%+6.3%+14.5%
Q4 2016-3.5%-4.6%+3.3%
Q3 2016+9.7%+7.6%-0.4%
Q2 2016-6.6%-5.9%-4.9%
Q1 2015-2.1%
Q1 2016+0.9%
Q4 2014+4.3%
Q4 2015+7.1%
Q3 2014-1.4%
Q3 2015-0.1%
Q2 2015+2.3%
Q4 2013+2.3%
Q2 2014+2.3%
Q1 2014+2.3%

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