8-KEarnings & ResultsExhibits & Filings

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

Filed July 26, 2017For Securities:PYPL

Summary

This 8-K filing from PayPal Holdings, Inc. (PYPL), dated July 26, 2017, primarily announces the company's financial results for the quarter ended June 30, 2017. The report directs investors to an attached press release (Exhibit 99.1) for detailed financial performance information. A key aspect of this filing is PayPal's use and explanation of various 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. The company emphasizes that these non-GAAP measures are presented to aid in the comparison of operating results between periods, particularly in light of its separation from eBay Inc. in July 2015. They also introduce non-GAAP pro forma measures to facilitate year-over-year comparisons, reflecting adjustments for items directly attributable to the separation expected to have a continuing impact. Investors should note that the filing also contains forward-looking statements regarding future results, operations, and plans. PayPal advises that undue reliance should not be placed on these statements, as they are based on current projections and subject to various risks and uncertainties detailed in their Form 10-K and subsequent 10-Q filings. The company does not assume an obligation to update these forward-looking statements. For a comprehensive understanding, investors are encouraged to review the full press release and the reconciliations of GAAP to non-GAAP measures provided within it.

Key Highlights

  • 1PayPal Holdings, Inc. announced its financial results for the quarter ended June 30, 2017.
  • 2The filing includes detailed financial performance data in an attached press release (Exhibit 99.1).
  • 3PayPal utilizes and explains 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.
  • 4Non-GAAP pro forma measures are introduced to enhance year-over-year comparability, reflecting adjustments related to the company's separation from eBay Inc.
  • 5The company states that these non-GAAP measures are provided to help investors better compare operating results across different periods.
  • 6The report contains forward-looking statements concerning future financial performance and operational plans.
  • 7Investors are cautioned against placing undue reliance on forward-looking statements due to inherent risks and uncertainties.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce PayPal Holdings, Inc.'s financial results for the quarter ended June 30, 2017. It directs investors to an attached press release for the specific financial details and commentary.

Non-GAAP financial measures are metrics that are not calculated according to Generally Accepted Accounting Principles (GAAP). PayPal is using them, such as non-GAAP net income and non-GAAP EPS, to provide additional insight into its core operating performance. They are presented to facilitate easier comparison of operating results between periods, especially following its separation from eBay.

Non-GAAP pro forma measures are a specific type of non-GAAP measure that includes adjustments for items directly related to PayPal's separation from eBay Inc. on July 17, 2015. These adjustments are intended to provide a more consistent basis for investors to review the company's performance across different periods, particularly for year-over-year comparisons.

The detailed financial results, along with explanations and reconciliations of the non-GAAP financial measures to their closest GAAP equivalents, are provided in the press release attached as Exhibit 99.1 to this 8-K filing.