By Sabela Ojea


PayPal Holdings Inc. reported earnings for the fourth quarter on Thursday. Here's what you need to know:


--REVENUE: PayPal reported revenue of $7.38 billion for the last three months of 2022, slightly missing analysts expectations of $7.39 billion for the quarter, according to FactSet. This compares with 6.92 billion for the same period a year earlier. In November, the company said it forecast revenue reaching $7.38 billion in the fourth quarter.

--ADJUSTED EARNINGS PER SHARE: Stripping out one-time items, the digital payments giant's earnings per share came in at $1.24, beating analysts expectations of $1.20, according to FactSet. Three months ago, PayPal said it expected to report adjusted earnings per share in the range of $1.18 and $1.20 for the fourth quarter.


WHAT WE WATCHED:


-TOTAL PAYMENT VALUE: The company's fourth-quarter total payment value grew 5% to $357.38 billion, it said.

-MONTHLY ACTIVE USERS: The company's total active accounts increased 2% to 435 million by the end of the year, the company said. It added 2.9 million net new active accounts in the fourth quarter.

-1Q GUIDANCE: PayPal expects revenue to grow 7.5% in the first quarter of 2023 and adjusted earnings per share to be in the range of $1.08 to $1.10 a share from $0.88 for the same period a year earlier.

-2023 GUIDANCE: The company also forecasts adjusted earnings per share to grow to $4.87 for 2023 from $4.13 a year earlier.

-1Q RESTRUCTURING CHARGE: PayPal said it expects to book an estimated restructuring charge of about $100 million in the first quarter of 2023. Late in January, the company said it would cut its global workforce by about 7%, or about 2,000 employees, to adjust to current macroeconomic conditions.

-CEO TO RETIRE: PayPal said that Chief Executive Dan Schulman intends to leave the company on Dec. 31 but will remain on the board. The company didn't name a successor, but said it is working with a search firm to find Mr. Schulman's replacement. He joined the group in 2014.

-TIES WITH APPLE INC.: The company didn't provide an update on its ties with Apple. In November, PayPal said expanding ties with Apple could benefit PayPal and Venmo merchants and consumers. Additionally, PayPal said that customers would be able to add PayPal and Venmo network-branded credit and debit cards to Apple Wallet in 2023, and use them wherever Apple Pay is accepted, among other offerings.

-SHARE REPURCHASES: PayPal conducted $4.2 billion of share repurchases during 2022, representing 82% of its free-cash flow. In 2023, share repurchases are expected to represent about 75% of the company's free-cash flow, it added.


Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix


(END) Dow Jones Newswires

02-09-23 1728ET