8-KEarnings & ResultsExhibits & Filings

PayPal Holdings, Inc. 8-K Report, Financial Results (Jan 26, 2017)

Filed January 26, 2017For Securities:PYPL

Summary

This 8-K filing by PayPal Holdings, Inc. (PYPL) announces the company's financial results for the fourth quarter and full year ended December 31, 2016. The filing primarily serves to attach the press release containing these results, which is incorporated by reference. Investors should note that the press release utilizes several non-GAAP financial measures, including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP effective tax rate, and free cash flow, to provide a clearer view of operational performance and facilitate period-over-period comparisons, especially following its separation from eBay. The company also presents non-GAAP pro forma measures for net revenue, which include adjustments related to the eBay separation to ensure comparability. The filing emphasizes that these non-GAAP measures are not prepared under GAAP and should not be considered a substitute for GAAP financial information. Comprehensive reconciliations between GAAP and non-GAAP measures are provided within the attached press release. Investors are encouraged to review these reconciliations and the forward-looking statements within the press release, while being mindful of the risks and factors disclosed in PayPal's other SEC filings.

Key Highlights

  • 1PayPal Holdings, Inc. (PYPL) announced its financial results for the quarter and year ended December 31, 2016.
  • 2The 8-K filing's primary purpose is to furnish the press release containing these financial results (Exhibit 99.1).
  • 3The press release includes several non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, non-GAAP operating margin, non-GAAP effective tax rate, and free cash flow.
  • 4PayPal is presenting non-GAAP pro forma measures for net revenue, which incorporate adjustments related to the company's separation from eBay Inc. on July 17, 2015, to enhance comparability.
  • 5The company stresses that non-GAAP measures are supplementary and not a substitute for GAAP financial statements.
  • 6Reconciliations between GAAP and non-GAAP financial measures are available within the attached press release.
  • 7The filing includes forward-looking statements, with a disclaimer advising investors not to place undue reliance on them.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce and provide access to PayPal's financial results for the fourth quarter and full year ended December 31, 2016, through an attached press release (Exhibit 99.1).

Non-GAAP financial measures are financial performance metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) financial results. PayPal uses them to offer a clearer view of its core operational performance and to facilitate comparisons between periods, particularly after its separation from eBay. These measures may include metrics like non-GAAP net income, non-GAAP EPS, and free cash flow.

No, the non-GAAP results are supplementary and not a substitute for financial information prepared in accordance with GAAP. The filing and its attached press release provide reconciliations within the document to show how these non-GAAP measures relate to the most directly comparable GAAP measures. Investors should always refer to the GAAP figures and the provided reconciliations for a complete financial picture.

Non-GAAP pro forma measures, specifically for net revenue in this filing, include adjustments related to PayPal's separation from eBay Inc. These adjustments are designed to be factually supportable, directly attributable to the separation, and expected to have a continuing impact. PayPal uses these pro forma measures to help investors compare the company's operating results across different periods more consistently.