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Compared to the 2021 Q1, PayPal spiked 13% to $323.05 billion in its total payment volume for the last quarter.
Financial technology company PayPal Holdings Inc (NASDAQ: PYPL) started the year on a good note with better-than-expected revenue growth, according to its 2022 Q1 financial results. Net revenue (GAAP) jumped 8% year-over-year to $6.5 billion. Also, operating income (GAAP) stood at $0.7 billion, a 32% gain year-over-year, while earnings per share (GAAP) increased 53% year-over-year to $0.43. PayPal onboarded additional 2.4 million new accounts, bringing its total active accounts to 429 million.
PayPal CEO Dan Schulman commented on the financial report for 2022 Q1, saying:
“I’m pleased our first quarter results exceeded our guidance on revenue and earnings, and we continue to grow faster than the rate of ecommerce. We have much to be proud of but we know we can continue to do even better. We are fortunate to have the opportunity to shape the future of the digital economy by transforming financial services and commerce.”
Moving forward, PayPal intends to ‘double down” on its digital wallet.” The CEO believes that the digital wallet has a significant role to play in the growth of the company. Schulman said digital payment is the future of PayPal and the financial technology industry. Also, he revealed that PayPal is seeing an increasing number of its customers using the company’s digital wallet. The company is planning to make its digital wallets an integral part of its “customers’ daily financial lives.”
PayPal Announces 2022 Q1 Financial Results
Compared to the 2021 Q1, PayPal spiked 13% to $323.05 billion in its total payment volume for the last quarter. Net revenues also grew 8%to $6.5 billion year-over-year. Meanwhile, GAAP operating margin lost 630 basis points to 11.0%. The non-GAAP operating margin was 20.7%, losing 702 basis points. Like many other companies, PayPal suspended its operation in Russia, which has impacted the company negatively.
PayPal warned ahead of its 2022 Q1 report that rising inflation is affecting consumers, which is taking a toll on the company. Chief financial officer John Rainey also referred to the lack of new stimulus and supply chain pressures. PayPal made a surprising announcement earlier this month about the exit of its chief financial officer. The company said Rainey was moving to Walmart (NYSE: CFO) to become its CFO. Speaking on the last quarter result, the exiting CFO said:
“As I close out my time at PayPal, I am so proud of the progress PayPal has made on our strategic priorities, investing in high growth initiatives, and expanding our platform’s scale and diversification. I look forward to cheering on the team as they continue to shape the future of financial services and commerce.”
PayPal’s shareholders are hoping for a turnaround from losses as the company has declined over 69% in a year. PYPL stock has also worsened by nearly 48% in the last three months and 28.57% over the past month.