Investor Presentaiton
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
(In Millions/Unaudited)
Three Months Ended
Note
March 31,
2023
December 31, September 30,
2022
2022
June 30,
March 31,
2022
2022
December 31, September 30,
2021
2021
June 30,
2021
March 31,
2021
December 31,
2020
Year Ended December 31,
2022
2021
2020
GAAP operating expenses:
Transaction expense
Transaction and credit losses
Customer support and
operations
Sales and marketing
3,283 $
442
3,324 $
2,988 $
3,044 $
2,817 $
2,952 $
2,564 $
2,524 $
2,275 $
388
367
448
369
350
268
169
273
2,330 $
366
12,173 $ 10,315 $ 7,934
1,572
(a)
1,060
1,741
Stock-based compensation expense.
488
541
509
536
534
532
504
521
518
507
2,120
2,075
1,778
(b)
436
524
544
595
594
666
549
628
602
605
2,257
2,445
1,861
Employer payroll taxes on stock-
based compensation.
Technology and development
721
822
801
815
815
796
755
746
741
732
3,253
3,038
2,642
General administrative
507
515
463
514
607
570
498
522
524
569
2,099
2,114
2,070
(c)
Restructuring and other changes
164
25
56
90
36
2
1
1
58
Total operating expenses
$
6,041 $
6,139 $
5,728 $
6,042 $
5,772 $
5,868 $
5,139 $
5,111 $
4,991 $
44
5,153
207
62
139
Amortization of acquired intangible
assets.
$ 23,681 $ 21,109 $ 18,165
(d)
Restructuring.
Non-GAAP operating expense
adjustments:
(e)
Acquisition-related transaction
Customer support and operations
(a)
(72)
(b)
(4)
Sales and marketing
(a)
(43)
(b)
(4)
(c)
(41)
Technology and development
(a)
(148)
(132)
(b)
(7)
(c)
(9)
General administrative
(a)
(94)
D T D =
(8)
Restructuring and other charges
(d)
(117)
(g)
(47)
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(73)
(56)
(67)
(73)
(58)
(56)
(77)
(72)
(71)
(269)
(263)
(250)
expense.
(6)
(2)
(1)
(3)
(16)
(1)
(6)
(22)
(9)
(37)
(27)
(42)
(45)
(41)
(38)
(48)
(48)
(41)
(151)
(175)
(172)
(f)
(1)
(5)
(1)
(2)
(5)
(13)
(1)
(6)
(21)
(12)
(55)
(54)
(53)
(53)
(51)
(39)
(39)
(38)
(40)
(215)
(167)
(170)
Award for a legal proceeding and
expenses related to pre-acquisition
contingencies of an acquired
company.
(115)
(129)
(136)
(112)
(117)
(147)
(139)
(145)
(512)
(515)
(529)
.
(1)
(12)
(2)
(5)
(34)
(2)
(13)
(41)
(21)
(g)
(58)
(59)
(57)
(58)
(64)
(63)
(61)
(61)
(232)
(246)
(252)
(66)
(41)
(88)
(188)
(120)
(100)
(129)
(119)
(130)
(383)
(468)
(460)
(1)
(14)
(26)
(4)
(15)
(34)
(19)
(7)
(7)
(7)
(7)
(7)
(24)
(28)
(28)
(20)
(18)
(23)
(71)
(20)
5
(32)
(35)
(122)
(27)
(109)
Asset impairment charges for right-of-
use lease assets and related leasehold
improvements in conjunction with
exiting certain leased properties,
charges associated with early lease
termination, a charge associated with
exiting a leased property and a loss
incurred upon designation of an
owned property as held for sale.
(33)
(19)
(16)
Total operating expenses
$
(601) $
(449) $
(414) $
(538) $
(632) $
(2)
(457) $
(1)
(6)
(26)
(427) $
(527) $
(631) $
(9)
(547) $
(85)
(2,033) $
(35)
(30)
(2,042) $ (2,099)
Non-GAAP operating expenses:
Transaction expense
Transaction and credit losses
3,283
3,324
2,988
3,044
2,817
2,952
2,564
2,524
2,275
2,330
$
12,173 $
10,315 $
7,934
442
388
367
448
369
350
268
169
273
366
1,572
1,060
1,741
Customer support and
412
468
453
469
455
472
447
441
430
435
1,845
1,790
1,519
operations
Sales and marketing
348
432
463
499
491
573
470
536
503
523
1,885
2,082
1,507
Technology and development
557
632
628
626
610
624
574
531
507
524
2,496
2,236
1,840
General and administrative
398
446
415
418
398
440
389
383
372
428
1,677
1,584
1,525
Total operating expenses
PayPal
$
5,440 $
5,690 $
5,314 $
5,504 $
5,140 $
5,411 $
4,712 $
4,584 $
4,360 $
4,606
$ 21,648 $ 19,067 $ 16,066
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Q1-23 Investor Update
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