Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2015
- Price to Book Value (P/BV) since 2015
- Price to Sales (P/S) since 2015
- Analysis of Debt
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PayPal Holdings Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Net Revenues
- Net revenues showed a consistent upward trend from 2018 to 2022. Starting at $15.45 billion in 2018, revenues increased each year, reaching $27.52 billion by 2022. This reflects robust growth over the five-year period.
- Transaction Expense
- Transaction expenses also increased steadily, from $5.58 billion in 2018 to $12.17 billion in 2022. The rising expense aligns with growing revenues, indicating higher costs associated with transaction volumes or pricing pressures.
- Transaction and Credit Losses
- Transaction and credit losses varied, with an initial increase from $1.27 billion in 2018 to $1.74 billion in 2020, then a decrease to $1.06 billion in 2021, followed by an increase again to $1.57 billion in 2022. The fluctuations suggest variability in credit losses management or external factors affecting defaults.
- Customer Support and Operations
- Expenses related to customer support and operations increased gradually over the period, from $1.41 billion in 2018 to $2.12 billion in 2022, indicating expanding operational support consistent with business growth.
- Sales and Marketing
- Sales and marketing expense rose from $1.31 billion in 2018 to a peak of $2.45 billion in 2021, then decreased slightly to $2.26 billion in 2022. This suggests a strategic investment in marketing before a modest reduction.
- Technology and Development
- Investment in technology and development steadily increased from $1.83 billion in 2018 to $3.25 billion in 2022, reflecting ongoing commitments to innovation and platform enhancement.
- General and Administrative
- General and administrative expenses showed a moderate increase from $1.54 billion in 2018 to a peak of $2.11 billion in 2021, then a slight decline to $2.10 billion in 2022, indicating relatively stable overhead costs with minor fluctuations.
- Restructuring and Other Charges
- Restructuring and other charges decreased significantly after 2018, with a low of $62 million in 2021, but increased again to $207 million in 2022. This may indicate episodic costs related to organizational changes or one-time charges.
- Operating Expenses
- Operating expenses increased consistently from $13.26 billion in 2018 to $23.68 billion in 2022, reflecting broad increases across categories consistent with scaling operations.
- Operating Income
- Operating income rose from $2.19 billion in 2018 to a peak of $4.26 billion in 2021, followed by a decline to $3.84 billion in 2022. The peak in 2021 suggests strong operational profitability, with the decline in 2022 possibly signaling margin pressure or increased costs.
- Interest Income and Expense
- Interest income fluctuated, peaking at $197 million in 2019 and dipping to $57 million in 2021 before rising again to $174 million in 2022. Interest expense steadily increased, from $77 million in 2018 to $304 million in 2022, indicating higher borrowing costs or increased debt levels.
- Net Gains on Strategic Investments and Other Income (Expense)
- Net gains on strategic investments spiked dramatically in 2020 to $1.91 billion but fell sharply to $46 million in 2021 and a loss of $304 million in 2022, indicating significant volatility in investment outcomes. Other income (expense), net, followed a similar pattern with a large gain in 2020 but moved to negative territory in subsequent years.
- Income Before Taxes
- Income before taxes grew from $2.38 billion in 2018 to $5.07 billion in 2020, then declined to $3.37 billion in 2022, reflecting the impact of fluctuating investment gains and operational profit trends.
- Income Tax Expense (Benefit)
- Income tax expense increased in absolute terms over the period, with a notable tax benefit recorded in 2021. This irregularity may be due to tax adjustments or credits that temporarily reduced the effective tax burden.
- Net Income
- Net income rose significantly from $2.06 billion in 2018 to $4.20 billion in 2020, remained stable in 2021 at $4.17 billion, then decreased substantially to $2.42 billion in 2022. The decline in the latest year aligns with reduced operating income and investment losses.