PayPal Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter Ending March 31, 2017 and Full Year Ending December 31, 2017
January 26, 2017 at 09:05 pm
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PayPal Holdings, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net revenues of $2,981 million against $2,556 million a year ago. Operating income was $460 million against $411 million a year ago. Income before income taxes was $469 million against $418 million a year ago. Net income was $390 million or $0.32 per basic and diluted share against $367 million or $0.30 per basic and diluted share a year ago. Net cash provided by operating activities was $923 million against $728 million a year ago. Purchases of property and equipment were $152 million against $164 million a year ago. Non-GAAP operating income was $619 million against $532 million a year ago. Non-GAAP net income was $512 million or $0.42 per diluted share against $443 million or $0.36 per diluted share a year ago. Free cash flow was $771 million against $564 million a year ago.
For the year, the company reported net revenues of $10,842 million against $9,248 million a year ago. Operating income was $1,586 million against $1,461 million a year ago. Income before income taxes was $1,631 million against $1,488 million a year ago. Net income was $1,401 million or $1.15 per diluted share against $1,228 million or $1.00 per basic and diluted share a year ago. Net cash provided by operating activities was $3,158 million against $2,546 million a year ago. Purchases of property and equipment were $669 million against $722 million a year ago. Non-GAAP operating income was $2,174 million against $1,975 million a year ago. Non-GAAP net income was $1,825 million or $1.50 per diluted share against $1,588 million or $1.29 per diluted share a year ago. Free cash flow was $2,489 million against $1,824 million a year ago.
For the first quarter ending March 31, 2017, the company expects revenue to grow 14% - 16% at current spot rates and 16% - 18% on an FX-neutral basis, to a range of $2.900 - $2.950 billion. The company expects GAAP earnings per diluted share in the range of $0.31 - $0.33 and non-GAAP earnings per diluted share in the range of $0.40 - $0.42.
For the full year ending December 31, 2017, the company expects revenue to grow 15 - 17% at current spot rates and 17 - 19% on an FX-neutral basis, to a range of $12.450 - $12.650 billion. The company expects GAAP earnings per diluted share in the range of $1.26 - $1.31 and non-GAAP earnings per diluted share in the range of $1.69 - $1.74.
PayPal Holdings, Inc. is one of the main global providers of online payment services. The company enables individuals and professionals to purchase and to sell goods and services, as well as make transfers and withdrawals. Paypal Holdings operates a technology platform equipped with solutions (Paypal, PayPal Credit, Venmo and Braintree brands) designed to facilitate safeguarded payments via merchant websites, mobile payment devices, and through shops. Net sales break down by source of revenue as follows:
- revenues from transactions (90.2%);
- revenues from value-added services (9.8%).
At the end of 2023, PayPal Holdings, Inc. has 426 million active accounts.
The United States accounts for 58% of net sales.
PayPal Holdings, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the First Quarter Ending March 31, 2017 and Full Year Ending December 31, 2017