Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 9, 2023.

Income Statement
Quarterly Data

Paying user area


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

PayPal Holdings Inc., consolidated income statement (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net revenues
Transaction expense
Transaction and credit losses
Customer support and operations
Sales and marketing
Technology and development
General and administrative
Restructuring and other charges
Operating expenses
Operating income
Other income (expense), net
Income before income taxes
Income tax (expense) benefit
Net income (loss)

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).


Net Revenues
Net revenues exhibit a general upward trend over the period analyzed, increasing from approximately $3,685 million in Q1 2018 to a peak around $7,383 million in Q4 2022, followed by a slight decline to $7,040 million in Q1 2023. This trajectory reflects consistent growth with occasional seasonal fluctuations.
Transaction Expense
Transaction expenses increased steadily from approximately $1,275 million in Q1 2018 to over $3,283 million in Q1 2023. The growth in these expenses correlates with rising net revenues, indicating higher costs associated with transaction processing. There is a noticeable acceleration in expense growth beginning in early 2020.
Transaction and Credit Losses
Transaction and credit losses show variability, peaking at $591 million in Q1 2020, likely due to specific external factors impacting credit risk. Subsequently, losses declined, reaching a relatively lower level in 2021, but displayed renewed increases near the end of the time frame, ending at $442 million in Q1 2023.
Customer Support and Operations
The expenses in customer support and operations have gradually increased over the years, rising from $342 million in Q1 2018 to $488 million in Q1 2023. The increase suggests ongoing investment in operational capacity and customer service functions, though the growth rate appears moderate compared to revenues.
Sales and Marketing
Sales and marketing costs experienced fluctuations, with an initial rise to a peak of $666 million in Q4 2021, followed by a gradual decline to $436 million in Q1 2023. The reduction in early 2023 may indicate efforts to optimize marketing spending or shifts in strategic priorities.
Technology and Development
Spending on technology and development rose steadily from $448 million in Q1 2018 to a high near $822 million in Q4 2022, before falling significantly to $721 million in Q1 2023. This pattern demonstrates sustained investment in technological advancements with a recent scaling back.
General and Administrative
General and administrative expenses show a fluctuating pattern, generally ranging between $347 million and $607 million. There was a peak in Q4 2020 and Q1 2022, but these costs declined toward the end of the period, stabilizing near $507 million in Q1 2023.
Restructuring and Other Charges
Restructuring and other charges are irregular, with occasional spikes, notably including $164 million in Q1 2023. The variable nature of these expenses suggests episodic organizational adjustments and one-off costs impacting financials sporadically.
Operating Expenses
Operating expenses grew significantly over time, from around $3,151 million in Q1 2018 to more than $6,000 million by Q1 2023. This increase aligns with the growth in net revenues and expanding operational scale, though the rate of expense growth may imply efficiency challenges.
Operating Income
Operating income demonstrates a generally positive trajectory with some volatility. It started at $534 million in Q1 2018, experienced a dip in early 2020 to $398 million, then rose sharply to peaks above $1,200 million in late 2022, before decreasing to just under $1,000 million in Q1 2023.
Other Income (Expense), Net
The item exhibits substantial volatility, ranging from negative values like -$715 million in Q3 2022 to positive spikes such as $896 million in Q4 2020. These fluctuations suggest exposure to variable non-operating income sources or expenses, which significantly affect profitability in certain quarters.
Income Before Income Taxes
Income before income taxes shows marked volatility, with notable peaks in Q2 2020 ($1,799 million) and Q4 2022 ($1,578 million) contrasting with lower amounts in several quarters, including a minimal $49 million in Q3 2022. This pattern mirrors the fluctuations in other income and operating income combined.
Income Tax (Expense) Benefit
Income tax expense varies widely, sometimes showing benefits (negative expenses) such as in Q4 2020 and Q4 2021, and generally corresponding to the fluctuations in pre-tax income. The tax impact is a critical component of net profitability volatility during the timeline.
Net Income (Loss)
Net income follows a broadly increasing trend from $511 million in Q1 2018 to peaks over $1,500 million in several quarters of 2020 and early 2021. Following this, results show more variability with a significant loss recorded in Q3 2022 (-$341 million), but recovery ensued with positive net income amounts in subsequent periods, ending at $795 million in Q1 2023.