Investor Presentaiton
Continued Operating Margin Expansion
Non-GAAP operating margin expansion of ~200bps, driven by expense leverage
Total Expenses
($M)
Volume-based
Non-transaction
Expenses (¹) ($M)
Related Expenses (2)
($M)
5,440
5,140
3,725
3,186
GAAP and Non-GAAP Operating Margin
22.4%
22.9%
22.7%
20.7%
19.1%
16.3%
16.8%
14.2%
1,954
1,715
11.0%
11.2%
Q1-22
Q1-23
Y/Y Growth
% of Revenue
17.9%
79.2%
5.8%
77.3%
Q1-22 Q1-23
25.0%
49.1%
Q1-22
Q1-23
16.9%
52.9%
7.8%
(12.2%)
30.1%
24.4%
.
Q1-22
Q2-22
• Volume-based expenses grew 16.9%, driven by volume and funding mix (unbranded processing growth)
Non-transaction related expenses declined 12%, driven by an increased focus on cost control
Q3-22
Q4-22
Non-GAAP Operating Margin
GAAP Operating Margin
•
Non-GAAP operating margin expanded ~200bps
•
Non-GAAP operating income grew 19%, reaching $1.6B and accelerating 7pts from Q4-22 and 39pts from Q1-22
PayPal
©2023 PayPal Holdings, Inc.
Q1-23
Non-GAAP operating margin and expenses presented on a non-GAAP basis are non-GAAP financial measures. Please see the Supplemental Information for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
(1) Volume-based expenses include transaction expense and transaction and credit losses.
(2) Non-transaction related expenses include customer support & operations, sales & marketing, technology & development, and general & administrative.
Q1-23 Investor Update
• 17View entire presentation