8-KEarnings & ResultsExhibits & Filings

PayPal Holdings, Inc. 8-K Report, Financial Results (Jul 21, 2016)

Filed July 21, 2016For Securities:PYPL

Summary

PayPal Holdings, Inc. filed an 8-K on July 21, 2016, to announce its financial results for the second quarter ended June 30, 2016. The report primarily directs investors to an attached press release (Exhibit 99.1) for detailed financial performance and outlook. A key aspect of the filing is its use of non-GAAP financial measures, including non-GAAP net income, earnings per diluted share, operating margin, effective tax rate, and free cash flow. The company also presented non-GAAP pro forma measures, which include adjustments related to its separation from eBay Inc. in July 2015, to facilitate year-over-year comparisons and provide a clearer view of ongoing operational performance. Investors should note that these non-GAAP measures are not prepared in accordance with GAAP and may differ from similar measures used by other companies. Reconciliations to the most directly comparable GAAP measures are available within the referenced press release. The filing also warns that the press release contains forward-looking statements, and investors should consult PayPal's other SEC filings (10-K, 10-Q) for a more comprehensive discussion of risks and financial condition.

Key Highlights

  • 1PayPal Holdings, Inc. announced its Q2 2016 financial results on July 21, 2016, via an 8-K filing.
  • 2The report primarily references an attached press release (Exhibit 99.1) for detailed financial information.
  • 3PayPal utilized several non-GAAP financial measures in its earnings release, including non-GAAP net income, EPS, operating margin, and free cash flow.
  • 4The company presented non-GAAP pro forma measures to account for the impact of its separation from eBay Inc. and facilitate period-over-period comparisons.
  • 5These pro forma adjustments are intended to reflect ongoing operational performance and provide a consistent basis for review.
  • 6The filing includes a disclaimer that non-GAAP measures are not GAAP-compliant and may differ from other companies' metrics.
  • 7Forward-looking statements were included in the press release, with investors directed to 10-K and 10-Q filings for a full risk assessment.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly announce PayPal Holdings, Inc.'s financial results for the second quarter ended June 30, 2016, and to provide investors with access to the accompanying press release which contains detailed financial information.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) reporting. PayPal uses them, including non-GAAP net income, EPS, and operating margin, to provide investors with a clearer view of the company's core operational performance and trends, particularly by excluding items related to its separation from eBay and other specific adjustments. They are intended to facilitate comparisons over time.

Non-GAAP pro forma measures, as used by PayPal in this filing, are non-GAAP measures that also include specific adjustments related to the separation from eBay Inc. on July 17, 2015. The company uses these to present results that it believes better reflect its ongoing business operations and allow for more meaningful year-over-year comparisons.

The detailed financial results and reconciliations of the non-GAAP and non-GAAP pro forma measures to their closest GAAP equivalents are found in the press release attached as Exhibit 99.1 to this 8-K filing. Investors should refer to that document for specific figures and explanations.