PayPal Holdings, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, net revenues were $3,744 million against $2,981 million a year ago. Operating income was $843 million against $460 million a year ago. Income before income taxes was $864 million against $469 million a year ago. Net income was $620 million against $390 million a year ago. Net income per diluted share was $0.50 against $0.32 per basic and diluted share a year ago. Net cash used in operating activities was $147 million against cash provided by operating activities of $923 million a year ago. Purchases of property and equipment were $180 million against $152 million a year ago. Non-GAAP net revenues were $3,705 million against $2,981 million a year ago. Non-GAAP operating income was $807 million against $619 million a year ago. Non-GAAP net income was $670 million against $512 million a year ago. Non-GAAP diluted net income per share was $0.55 against $0.42 a year ago. Revenue grew by 24%, and this is their third consecutive quarter of accelerating revenue growth. The strong revenue performance, combined with disciplined OpEx management, drove non-GAAP EPS of $0.55, which was up 30% year-over-year. Capital expense -- expenditures were $108 million or approximately 5% of revenue.

For the year, net revenues were $13,094 million against $10,842 million a year ago. Operating income was $2,127 million against $1,586 million a year ago. Income before income taxes was $2,200 million against $1,631 million a year ago. Net income was $1,795 million against $1,401 million a year ago. Net income per diluted share was $1.47 against $1.15 per basic and diluted share a year ago. Net cash provided by operating activities was $2,531 million against $3,158 million a year ago. Purchases of property and equipment were $667 million against $669 million a year ago. Non-GAAP net revenues were $13,055 million against $10,842 million a year ago. Non-GAAP operating income was $2,755 million against $2,174 million a year ago. Non-GAAP net income was $2,318 million against $1,825 million a year ago. Non-GAAP diluted net income per share was $1.90 against $1.50 a year ago.

The company provided earnings guidance for the full year ending December 31, 2018 and first quarter ending March 31, 2018. The company expects revenue to grow 15% - 17% at current spot rates and 14% - 16% on an FX-neutral basis, to a range of $15.00 - $15.25 billion. Full year 2018 revenue guidance includes an expected impact related to the sale of U.S. consumer credit receivables to Synchrony Financial of 3.5 percentage points for full year 2018, assuming the transaction closes on July 1, 2018. The company expects GAAP earnings per diluted share in the range of $1.79 - $1.86 and non-GAAP earnings per diluted share in the range of $2.24 - $2.30. Estimated non-GAAP amounts above for the twelve months ending December 31, 2018, reflect adjustments of approximately $910 million - $950 million, primarily representing estimated stock-based compensation expense and related payroll taxes in the range of $820 million - $850 million. The company anticipated their non-GAAP effective tax rate to be between 17% and 20%. They anticipate free cash flow to exceed $4.5 billion. This is higher than normal due to the sale of their credit receivables next year.

The company expects revenue to grow 20% - 22% at current spot rates and 20% - 21% on an FX-neutral basis, to a range of $3.58 billion - $3.63 billion. The company expects GAAP earnings per diluted share in the range of $0.41 - $0.43 and non-GAAP earnings per diluted share in the range of $0.52 - $0.54. Estimated non-GAAP amounts for the three months ending March 31, 2018, reflect adjustments of approximately $215 million - $230 million, primarily representing estimated stock-based compensation expense and related payroll taxes in the range of $190 million - $200 million.