Income Statement
Quarterly Data
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.
PayPal Holdings Inc., consolidated income statement (quarterly data)
US$ in millions
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 demonstrate a consistent long-term growth trajectory, increasing from 3,685 million US$ in March 2018 to a peak of 7,383 million US$ in December 2022. This upward trend reflects a steady expansion of the top line, although a slight contraction is noted in the first quarter of 2023.
- Revenue and Direct Cost Correlation
- Transaction expenses maintain a strong positive correlation with net revenues, scaling proportionally as the volume of activity increases. These expenses grew from 1,275 million US$ in early 2018 to 3,283 million US$ by March 2023. Transaction and credit losses exhibit higher volatility, notably peaking at 591 million US$ in March 2020, suggesting sensitivity to external economic shocks during that period before stabilizing.
- Operational Expenditure Trends
- Technology and development costs show a persistent increase over the analysis period, rising from 448 million US$ to a peak of 822 million US$ in December 2022, indicating sustained investment in infrastructure. In contrast, sales and marketing expenditures peaked in late 2021 and showed a downward trend toward March 2023, falling to 436 million US$. General and administrative expenses remained relatively stable between 400 million and 600 million US$, reflecting disciplined overhead management.
- Operating Income and Efficiency
- Operating income grew from the 500 million US$ range in 2018 to consistently exceeding 1,000 million US$ between 2021 and late 2022. This indicates that operating leverage improved as revenue growth outpaced the growth of fixed operational costs. However, a decline to 999 million US$ in March 2023 suggests a recent compression in operating margins.
- Net Income Volatility and Non-Operating Items
- While operating income remained positive throughout the period, net income experienced significant fluctuations driven by "Other income (expense), net" and tax adjustments. A notable anomaly occurred in June 2022, where a substantial non-operating loss of 715 million US$ resulted in a quarterly net loss of 341 million US$, despite a positive operating income of 764 million US$. This highlights a high dependence on non-core financial items for the final bottom-line result.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?