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 Highlights
47 data pointsBeta
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.
Frequently Asked Questions
For the nine months ended September 30, 2015, PayPal's net revenues increased by 15% to $6.69 billion compared to the same period in the prior year. The three months ended September 30, 2015, also saw a 14% increase in net revenues, reaching $2.26 billion.
PayPal's profitability showed significant improvement. Operating income for the nine months ended September 30, 2015, increased by 14% to $1.05 billion. Net income surged to $861 million from $133 million in the prior year, largely due to a significant decrease in income tax expense. Diluted earnings per share also saw a substantial increase.
As of September 30, 2015, PayPal maintained a strong liquidity position with $6.67 billion in cash, cash equivalents, and available-for-sale investment securities, excluding assets related to customer accounts.
During the nine months ended September 30, 2015, PayPal completed three acquisitions: Paydiant, CyActive, and another smaller acquisition, aimed at expanding its capabilities in mobile payments and information security. The company also announced an agreement to acquire Xoom Corporation for approximately $890 million, expected to close in Q4 2015.