PayPal (PYPL) Q4 2022: Earnings Call Summary

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In this PayPal earnings call summary, we summarize key metrics and topics discussed on the Q4 2022 call, including:

  • Earnings Call Summary
  • Revenue Highlights
  • New Initiatives
  • Key Partnerships
  • Guidance
  • Caller Q&A, and more

This earning call summary was partially done by our GPT-3 enabled earnings call assistant, which you can learn more about here.

Earnings Call Summary

PayPal Holdings held an earnings conference call for the fourth quarter and full year 2022 on February 9th, 2023.

  • The call was led by Dan Schulman, the company's president and CEO, and Gabrielle Rabinovitch, the Senior Vice President and acting CFO.
  • During the call, Dan Schulman discussed the company's performance and plans for the future, including their focus on deepening their focus, investing in innovation and their people, and strengthening their competitive advantages.
  • Gabrielle Rabinovitch discussed the company's cost discipline and pursuit of profitable growth, which resulted in a positive inflection point in the quarter.
  • She also discussed their expectations for foreign exchange, which includes a 150 basis point headwind from FX for the first quarter and a 1-point headwind to full year revenue growth.

Revenue Highlights

This quarter, the company reported total revenue of $7.38 billion, which was in line with their guidance of 9% FXN growth.

  • This represented a three-year revenue CAGR of 14% and 19%, excluding eBay.
  • Transaction revenue grew 5% to $6.7 billion, driven primarily by Braintree and Venmo.
  • Other value-added services revenue grew 26% to $681 million.

Relative to last year, this performance resulted from higher interest income on customer store balances and positive contributions from both their merchant and consumer credit products.