PayPal Holdings Inc (NASDAQ:PYPL) stock rose 1.17% (As on February 10, 11:38:56 AM UTC-4, Source: Google Finance) after the company beat expectations for quarterly earnings and said CEO Dan Schulman plans to retire at the end of the year. The board will retain a search firm to help find a successor to Schulman, who joined it in 2014 as it was being separated from eBay. Total payment volume came in a little below expectations for the fourth quarter, around $357.4B, representing a 5% increase, versus forecasts for $360B. For the full-year 2022, PayPal said revenue rose 8%, to $27.5B, and total payment volume rose 9% to $1.36 trillion. The company delivered non-GAAP operating income of $1.7 billion, growing 12% and ; non-GAAP operating margin of 22.9%, expanded 115 basis points. Cash, cash equivalents, and investments totaled $15.9 billion as of December 31, 2022. Debt totaled $10.8 billion as of December 31, 2022. In Q4’22, the company generated cash flow from operations of $1.6 billion, and free cash flow of $1.4 billion
PYPL in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.24, beating the analysts’ estimates for the adjusted earnings per share of $1.20. The company had reported the adjusted revenue growth of 7 percent to $7.4 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $7.39 billion. ◦ Revenue excluding eBay grew 12% on a spot basis, on top of 29% growth in FY’21. The company reported $357.4 billion in TPV, up 5% on a spot basis and 9% FXN. Venmo processed $62.5 billion in TPV, growing 3%, on top of 29% growth in Q4’21 and 6.0 billion payment transactions, up 13%.
Additionally, in Q4’22, the company repurchased approximately 12 million shares of common stock, returning $1.0 billion to stockholders
For the first quarter of 2023, the company is forecasting net revenue to rise 7.5% and adjusted earnings per share of $1.08 to $1.10, slightly below expectations for $1.07 a share. It expects full-year adjusted EPS to be around $4.87, above expectations. FY’23 share repurchases expected to represent ~75% of FCF.
Meanwhile, the company continues to test and onboard merchants to a simplified in-app checkout experience powered by our new native software developer kit (SDK). It has rolled out new PayPal Rewards program to the digital wallet, giving customers an easy way to shop and earn rewards all in one place.