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10-QPeriod: Q3 FY2015

PayPal Holdings, Inc. Quarterly Report for Q3 Ended Sep 30, 2015

Filed October 29, 2015For Securities:PYPL

Summary

PayPal Holdings, Inc. reported strong financial performance for the nine months ended September 30, 2015, reflecting its successful separation from eBay Inc. and operation as an independent entity. Net revenues grew 15% year-over-year to $6.69 billion, driven by a 19% increase in Total Payment Volume (TPV). Operating income saw a healthy increase of 14% to $1.05 billion. The company also reported a significant surge in net income to $861 million, largely due to a substantial decrease in income tax expense compared to the prior year. This period marks PayPal's first as a standalone public company, showcasing its robust growth trajectory and operational efficiency.

Financial Statements
Beta
Revenue$2.26B
R&D Expenses$197.00M
Operating Expenses$1.93B
Operating Income$330.00M
Net Income$301.00M
EPS (Basic)$0.25
EPS (Diluted)$0.25
Shares Outstanding (Basic)1.22B
Shares Outstanding (Diluted)1.23B

Key Highlights

  • 1Net revenues increased by 15% to $6.69 billion for the nine months ended September 30, 2015.
  • 2Total Payment Volume (TPV) grew by 19% year-over-year, indicating strong transaction activity.
  • 3Operating income rose by 14% to $1.05 billion, demonstrating effective cost management and revenue growth.
  • 4Net income significantly increased to $861 million, primarily driven by a substantial reduction in income tax expense.
  • 5The company generated $1.8 billion in cash from operating activities, highlighting strong cash flow generation.
  • 6PayPal completed three acquisitions in the first nine months of 2015: Paydiant, CyActive, and another smaller acquisition, indicating strategic expansion.
  • 7As of September 30, 2015, PayPal had $6.67 billion in cash, cash equivalents, and available-for-sale investments, demonstrating a strong liquidity position.

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