Common-Size Income Statement
Quarterly Data
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Transaction Expense
- The transaction expense consistently represents a significant portion of net revenues, exhibiting an overall upward trend from approximately 34.6% in early 2018 to over 46% by the first quarter of 2023. Notably, there was a steady increase starting in mid-2020 through 2022, peaking around 45-46%. This indicates rising costs associated with transactions relative to revenues, which may impact margins.
- Transaction and Credit Losses
- Transaction and credit losses fluctuated between 5% and 8% of net revenues for most quarters, with a notable spike to nearly 13% in March 2020, possibly due to external economic factors affecting credit risk. After this spike, losses declined significantly, reaching a low below 3% in mid-2021, before moderately increasing again but remaining below 7% by early 2023.
- Customer Support and Operations
- This expense category showed relative stability, generally ranging between 6.9% and 9.5% of revenues. A slight downward trend is observed over time, decreasing from above 9% in early 2018 to below 7% in early 2023, suggesting improved efficiency or cost management in operational support functions.
- Sales and Marketing
- Sales and marketing expenses maintained a varied pattern, mostly oscillating around 7% to 10% of net revenues. There was a peak near 10% in 2020 and early 2021 followed by a gradual decline to approximately 6.2% by the first quarter of 2023. This downward shift could indicate strategic cost reductions or changes in marketing focus.
- Technology and Development
- Technology and development spending remained relatively consistent, ranging from about 10% to 13% of net revenues. Despite minor fluctuations, a slight decreasing tendency is evident in 2022 to early 2023, declining towards 10%. This stability reflects ongoing commitment to technology investment with some recent moderation in expenditure relative to revenues.
- General and Administrative Expenses
- General and administrative expenses showed a downward trend from over 10% in early 2018 to around 7% by early 2023. The reduction in this category may reflect improved administrative efficiencies or cost control measures.
- Restructuring and Other Charges
- Restructuring and other charges were irregular, with some negative values indicating recoveries or reversals, and generally contributed less than 1% to net revenues in most quarters. However, the last reported quarter in early 2023 showed a notable increase to approximately -2.3%, suggesting an exceptional charge during that period.
- Operating Expenses
- Operating expenses as a whole fluctuated between approximately 81% and 91% of net revenues, with a notable increase to above 91% during the early phase of the pandemic in 2020, indicating higher overall costs relative to revenues at that time. More recently, operating expenses have tended to decrease slightly, fluctuating around 83% to 85%.
- Operating Income
- Operating income generally ranged from roughly 8.6% to 18%. There was a significant dip to about 8.6% in early 2020, coinciding with increased operating expenses, followed by recovery and stabilization mainly between 15% and 18% through 2021 and 2022. The early 2023 figure shows a decrease to about 14.2%, reflecting some pressure on operating profitability.
- Other Income (Expense), Net
- Other income and expenses showed high variability, including large positive spikes such as 16.1% in mid-2020 and 14.7% at the end of 2020. Offsetting these are several periods of negative values, with some significant detractors in 2019 and 2022. This volatility suggests occasional non-operating gains or losses impacting overall profitability.
- Income Before Income Taxes
- Income before income taxes demonstrated a wide range from slightly below 1% up to above 34%. The impact of other income and operating income is evident, with peaks corresponding to periods of significant non-operating gains, especially in 2020. Most recently, income before taxes settled in the mid-teens percentage-wise, implying somewhat stable pre-tax earnings.
- Income Tax (Expense) Benefit
- Income tax expense generally ranged between -6% and -1%, with some quarters showing tax benefits (positive values), especially in late 2020 and early 2022. The fluctuation in tax rates relative to net revenues may reflect changes in effective tax rate or tax planning outcomes.
- Net Income (Loss)
- Net income as a percentage of net revenues varied significantly, with lower profitability or losses observed in early 2020 and mid-2022. Peaks in net income occurred during 2020 and 2021, reaching nearly 29% in mid-2020 and around 25% at year-end 2020, indicating strong profitability during these periods. The net income margin declined in late 2022, including a loss indicated by a negative figure in mid-2022, before recovering to around 11% by early 2023.