8-KEarnings & ResultsExhibits & Filings

PayPal Holdings, Inc. 8-K Report, Financial Results (Oct 20, 2016)

Filed October 20, 2016For Securities:PYPL

Summary

This 8-K filing from PayPal Holdings, Inc. (PYPL), dated October 20, 2016, announces the company's financial results for the third quarter ended September 30, 2016. The report primarily serves to furnish the press release containing these results, which includes key financial metrics. Investors should note that PayPal is presenting several non-GAAP financial measures, such as non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP effective tax rate, and free cash flow. The company emphasizes that these non-GAAP measures are provided to offer a clearer comparison of operating results over time, especially given the company's separation from eBay Inc. on July 17, 2015. Pro forma adjustments are included to reflect this separation and are expected to have a continuing impact on operational results, aiding in period-to-period comparisons. The press release also contains forward-looking statements regarding the company's future performance. Investors are cautioned to refer to the company's Form 10-K and 10-Q filings for a more comprehensive discussion of risks and operational details, and not to place undue reliance on these forward-looking statements without consulting the full context provided in those filings. The information presented is as of the filing date and PayPal assumes no obligation to update these statements.

Key Highlights

  • 1PayPal Holdings, Inc. announced its financial results for the third quarter ended September 30, 2016.
  • 2The filing includes a press release containing key financial results and information.
  • 3The company is reporting several non-GAAP financial measures, including non-GAAP net income, EPS, operating margin, effective tax rate, and free cash flow.
  • 4Pro forma adjustments are included in non-GAAP net revenue to reflect the separation from eBay Inc.
  • 5These non-GAAP and pro forma measures are intended to facilitate easier comparison of operating results between periods.
  • 6The press release contains forward-looking statements about future performance.
  • 7Investors are advised to consult the company's 10-K and 10-Q filings for comprehensive risk factors and MD&A.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce and furnish PayPal's financial results for the third quarter ended September 30, 2016, by attaching the press release that details these results.

PayPal is using non-GAAP financial measures, along with pro forma adjustments, to provide investors with metrics that they believe better reflect the company's ongoing operational performance and facilitate year-over-year comparisons, particularly following its separation from eBay Inc.

Pro forma adjustments are presented to reflect items directly attributable to the company's separation from eBay Inc. on July 17, 2015, which are expected to have a continuing impact on PayPal's results, thereby helping to compare performance across different periods.

Investors should refer to PayPal's annual reports on Form 10-K and quarterly reports on Form 10-Q for a more thorough discussion of financial condition, results of operations, and risk factors, as mentioned in the 8-K filing.