Summary
PayPal Holdings, Inc. (PYPL) reported a net revenue of $6.85 billion for the third quarter of 2022, an 11% increase year-over-year. Net income for the quarter rose 22% to $1.33 billion, or $1.15 per diluted share, up from $1.09 billion, or $0.92 per diluted share, in the same period last year. This growth was driven by an increase in Total Payment Volume (TPV) and a favorable impact from hedging, alongside contributions from Venmo. However, for the first nine months of 2022, net income saw a significant 56% decrease to $1.50 billion, impacted by a substantial rise in operating expenses and a decrease in other income (expense), net, largely due to losses on strategic investments and increased income tax expense. Despite the year-over-year growth in the third quarter, the company highlighted increased transaction expenses and transaction and credit losses. For the nine-month period, operating expenses grew 15%, outpacing revenue growth and leading to a 19% decrease in operating income. The company also reported a significant increase in credit losses within transaction and credit losses, particularly for consumer receivables which grew 59%. PayPal also announced a substantial $15.0 billion stock repurchase program authorization in June 2022, demonstrating a commitment to returning capital to shareholders. The company ended the quarter with $6.66 billion in cash and cash equivalents.
Financial Highlights
51 data points| Revenue | $6.85B |
| Operating Expenses | $5.73B |
| Operating Income | $1.12B |
| Interest Expense | $87.00M |
| Net Income | $1.33B |
| EPS (Basic) | $1.15 |
| EPS (Diluted) | $1.15 |
| Shares Outstanding (Basic) | 1.15B |
| Shares Outstanding (Diluted) | 1.16B |
Key Highlights
- 1Net revenues increased by 11% to $6.85 billion in Q3 2022 compared to Q3 2021.
- 2Net income increased by 22% to $1.33 billion in Q3 2022, with diluted EPS growing to $1.15 from $0.92 in Q3 2021.
- 3Total Payment Volume (TPV) grew by 9% year-over-year in Q3 2022.
- 4Operating expenses increased by 11% in Q3 2022, primarily due to higher transaction expenses and transaction and credit losses.
- 5For the nine months ended September 30, 2022, net income decreased by 56% to $1.50 billion compared to the same period in 2021.
- 6Consumer loans and interest receivable balance increased by 59% year-over-year, reaching $4.4 billion.
- 7The company authorized an additional $15.0 billion stock repurchase program in June 2022.