By
Bhushan Akolkar
April 23rd, 2024
Along with the announcement about Dan Schulman stepping down, PayPal has also released its fourth-quarter and full-year 2022 results.
Payment giant PayPal Holdings Inc (NASDAQ: PYPL) has started looking for a new CEO as its current President and CEO Dan Schulman decided to leave the company, with retirement effective from December 31, 2023. After leaving, Schulman will continue working with the Board of Directors on “a smooth leadership transition.”
Dan Schulman and His Journey as PayPal CEO
Dan Shulman joined PayPal back in 2014 after the company separated from eBay. Under his leadership, PayPal made a number of acquisitions, including digital money transfer company Xoom Corporation, Swedish payment processor iZettle, tech company Honey, dispute automation and fraud prevention company Chargehound, and more. PayPal shares have also skyrocketed by about 130% since 2015. Its market cap growth outpaced the S&P 500 with revenue increasing to $27.5 billion in 2022 from $9.2 billion in 2015.
Besides, PayPal has significantly expanded its reach since Dan Shulman joined the Board. Currently, PayPal is available in 202 countries and in 25 currencies around the world, with more than 325 million accounts globally.
Announcing his retirement, Dan Shulman said:
“PayPal makes a difference every day for its customers and communities and the Company is positioned for a great future. It has been a huge privilege to have the opportunity to lead this great company for the past 8 1/2 years. However, I’m at a point in my life where I want to devote more time to my passions outside the workplace. I remain 100 percent committed to working closely with the Board and my eventual successor for a smooth transition and to ensure we keep our positive momentum on track.”
Under Dan Schulman, PayPal has also received a number of awards. It became one of the top companies on JUST Capital and Forbes’ JUST 100 list, ranked as one of the world’s most trusted brands and became the top on Fortune’s Companies that Change the World list.
Recently, PayPal announced its decision to lay off 2,000 employees, or around 7% of its workforce, as a result of an uncertain and challenging macroeconomic environment.
PayPal’s Q4 2022 Earnings
Along with the announcement about Dan Schulman stepping down, PayPal has also released its fourth-quarter and full-year 2022 results.
For Q4 2022, PayPal generated net revenue of $7.4 billion, with the total payment volume reaching as much as $357.4 billion. Notably, this is the first time in PaqyPal’s history that it exceeded $7 billion of revenue in the quarter. In addition, for the first time ever, PayPal exceeded 6 billion transactions in a quarter, resulting in 51.4 transactions per active account growing 13% year over year.
Further, the company came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.20 per share.
In 2023, PayPal is planning to sharpen its focus and improve its processes in order to effectively cut costs and modernise its architecture and capabilities. By the end of this year, PayPal is targeting to have the appropriate cost structure to ensure that it delivers profitable growth with consistent and healthy non-GAAP EPS growth.