NASDAQ$PYPL

PayPal Holdings · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

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

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

Headline financials

Total Revenue

$6.85B

Previous: $6.18B+10.7%
EPS (adj)

$1.08

Previous: $1.11-2.7%
Total payment volume

$337B

Previous: $310B+8.7%
Active accounts

432.0M

Previous: 416.0M+3.8%
Payment transactions

5.6B

Previous: 4.9B+15.2%
Transactions per account

50.1

Previous: 44.2+13.3%
Capital Expenditures

-$548M

Previous: -$695M+21.2%
Free Cash Flow

$782M

Previous: $392M+99.5%
Net Income

$1.33B

Previous: $1.09B+22.4%
Operating Income

$1.12B

Previous: $1.04B+7.2%
Gross Profit

$6.85B

Previous: $6.18B+10.7%
Cash & Equivalents

$6.66B

Previous: $7.78B-14.4%
Total Assets

$76.4B

Previous: $74.5B+2.6%
Stock-Based Comp

$226M

Previous: $300M-24.7%

Revenue & EPS history

PayPal · Revenue · Quarterly

$6.85B

Q3 2022+10.7%vs Q3 2021
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 Q4'22 and FY'22 financial guidance.

Tailwinds

  • 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

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 Q3 2022

Historical avgQ3 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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