NASDAQ$PYPL

PayPal Holdings · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$7.04B

Previous: $6.48B+8.6%
EPS (adj)

$1.17

Previous: $0.88+33.0%
Total payment volume

$355B

Previous: $323B+9.8%
Active accounts

433.0M

Previous: 429.0M+0.9%
Payment transactions

5.8B

Previous: 5.2B+13.1%
Transactions per account

53.1

Previous: 47+13.0%
Capital Expenditures

-$170M

Previous: -$191M+11.0%
Free Cash Flow

$625M

Previous: $318M+96.5%
Net Income

$795M

Previous: $509M+56.2%
Operating Income

$999M

Previous: $711M+40.5%
Gross Profit

$7.04B

Previous: $6.48B+8.6%
Cash & Equivalents

$7.1B

Previous: $4.86B+46.1%
Total Assets

$77.2B

Previous: $75.8B+1.8%
Stock-Based Comp

$345M

Previous: $429M-19.6%

Revenue & EPS history

PayPal · Revenue · Quarterly

$7.04B

Q1 2023+8.6%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
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 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%.

Tailwinds

  • 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

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 2023

Historical avgQ1 2023

-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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