Payment service provider PayPal today announced the company's fourth-quarter and full-year financial results for fiscal 2021. According to the report, PayPal's fourth-quarter net revenue was $6.918 billion, an increase of 13% compared with $6.116 billion in the same period last year, and a year-on-year increase of 13% excluding the impact of exchange rate changes; net profit was $801 million, PayPal's fourth-quarter adjusted net income was $1.319 billion, excluding certain one-time items (not in accordance with GAAP), compared to $1.567 billion in the prior-year million dollars, an increase of 3%.
PayPal's fourth-quarter revenue beat Wall Street analysts' estimates, but its fourth-quarter adjusted EPS and outlook for both the first quarter and full year of fiscal 2022 missed expectations, leading to its after-hours earnings report. Shares fell sharply by nearly 14%.
Key results for the fourth quarter:
In the quarter ended Dec. 31, PayPal's net profit was $801 million, down 49% from $1.567 billion in the same period a year earlier; diluted earnings per share were $0.68, compared with $1.32 a year earlier Compared with the decline of 49%. Excluding certain one-time items (not in accordance with U.S. GAAP), PayPal's fourth-quarter adjusted net income was $1.319 billion, up 3% from $1.281 billion in the prior-year period; adjusted earnings per share were $1.11, an increase of 4% compared with $1.08 in the same period last year, this performance fell short of analysts' previous expectations. According to data compiled by the Yahoo Finance website, 35 analysts had expected PayPal's fourth-quarter earnings per share to reach $1.12 on average.
PayPal's fourth-quarter net revenue was $6.918 billion, an increase of 13% compared with $6.116 billion in the same period last year. Excluding the impact of currency changes, it was also a year-on-year increase of 13%, which exceeded analysts' previous expectations. According to data compiled by the Yahoo Finance website, 34 analysts had expected PayPal's fourth-quarter revenue to reach $6.86 billion on average.
By region, PayPal's fourth-quarter U.S. business net revenue was $3.901 billion, an increase of 27% compared to $3.073 billion in the same period last year; it accounted for 56% of total net revenue, compared to The proportion in the same period last year was 50%. PayPal's international revenue in the fourth quarter was $3.017 billion, down 1% from $3.043 billion in the same period last year, and also down 1% excluding the impact of currency changes; The proportion was 44%, compared with 50% in the same period last year.
By business, PayPal's fourth-quarter transaction revenue was $6.377 billion, an increase of 12% compared to $5.682 billion in the same period last year; it accounted for 92% of total net revenue, compared to the same period last year The proportion is 93%. PayPal's fourth-quarter revenue from other value-added services was $541 million, an increase of 25% from $434 million in the same period last year; and accounted for 8% of total net revenue, compared with all of the same period last year. The proportion is 7%.
Fourth-quarter financial details:
PayPal's total payment volume (TPV) in the fourth quarter was $339.530 billion, an increase of 23% compared to $277.072 billion in the same period last year, and a 23% year-on-year increase excluding the impact of currency changes.
PayPal's total operating expenses in the fourth quarter were $5.868 billion, up from $5.153 billion a year earlier. Among them, transaction expenses were $2.952 billion, up from $2.330 billion in the same period last year; transaction and loan losses were $350 million, down from $366 million in the same period last year; customer support and operating expenses were $532 million, up from $532 million. $507 million in the prior year; sales and marketing expenses were $666 million, up from $605 million in the prior year; technology and development expenses were $796 million, up from $732 million in the prior year; general and administrative expenses $570 million, up from $569 million a year earlier; restructuring and other expenses were $2 million, compared to $44 million a year earlier.
PayPal's fourth-quarter operating profit was $1.050 billion, up from $963 million a year earlier; operating margin was 15.2%, down 57 basis points from 15.7% a year earlier. Excluding certain one-time items (not in accordance with GAAP), PayPal's fourth-quarter adjusted operating profit was $1.507 billion, down slightly from $1.510 billion a year earlier; adjusted operating margin was 21.8% , down 291 basis points from 24.7% a year earlier.
PayPal's effective tax rate for the fourth quarter was -13.5%, a decrease of 29.2 percentage points from 15.7 in the same period last year. Excluding certain one-time items (not in accordance with GAAP), PayPal's adjusted effective tax rate for the fourth quarter was 9.2%, down 3.4 percentage points from 12.6% a year earlier.
PayPal's fourth-quarter operating cash flow was $1.763 billion, compared with $1.347 billion in the same period last year, an increase of 31% year-over-year; free cash flow was $1.550 billion, compared with $1.121 billion in the same period last year, a year-on-year increase up 38%.
PayPal added 9.8 million net new active user accounts in the fourth quarter; total active user accounts at the end of the quarter reached 426 million, an increase of 13%. During the fourth quarter, PayPal processed 5.343 billion transactions, an increase of 21% from 4.408 billion a year earlier.
PayPal repurchased approximately 8 million shares of common stock in the fourth quarter, returning a total of $1.5 billion in cash to shareholders.
As of December 31, 2021, PayPal's cash and cash equivalents and investments totaled $16.3 billion and total debt was approximately $9 billion.
The main results of the year:
PayPal's full-year net revenue was $25.371 billion, compared with $21.454 billion in fiscal 2020, a year-on-year increase of 18%, excluding the impact of exchange rate changes, a year-on-year increase of 17%, slightly exceeding expectations; net profit was 41.69 billion, down from $4.202 billion in fiscal 2020; earnings per diluted share were $3.52, compared to $3.54 in fiscal 2020. Excluding certain one-time items (not in accordance with GAAP), PayPal's full-year adjusted net income was $5.455 billion, up from $4.605 billion in fiscal 2020; adjusted earnings per share were $4.60, compared to The next fiscal year 2020 was $3.88, which missed analysts' expectations.
According to data compiled by the Yahoo Finance website, 44 analysts had previously expected PayPal's full-year earnings per share to reach $4.61, and 45 analysts had previously expected PayPal's full-year revenue to reach $25.35 billion.
PayPal's net new active user accounts for the year was 48.9 million; the total number of active user accounts at the end of the year reached 426 million, an increase of 13%. PayPal's total payment volume for the year was $1.25 trillion, up 33% year-over-year, or 31% year-over-year excluding the impact of currency changes. PayPal processed 19.3 billion transactions for the year, up 25% year over year. PayPal's full-year cash flow from business operations was $6.3 billion, an increase of 8% year-on-year; free cash flow was $5.4 billion, an increase of 9% year-on-year.
Throughout fiscal 2021, PayPal repurchased approximately 15.4 million common stock, returning a total of $3.4 billion in cash to shareholders.
Performance Outlook:
PayPal expects the company's net revenue to grow 6% year-over-year in the first quarter of fiscal 2022, or 6% excluding the impact of currency changes; diluted earnings per share are expected to be $0.50, compared to $0.92 a year earlier; non-GAAP adjusted earnings per share are expected to be $0.87, compared with $1.22 a year earlier, a performance outlook that missed analysts' expectations. According to data provided by the Yahoo Finance website, 31 analysts had expected PayPal's first-quarter earnings per share to reach $1.16, and 29 analysts had expected PayPal's first-quarter revenue to reach $6.74 billion.
PayPal also expects that the company's total payment volume will increase by 19% to 22% year-on-year in fiscal 2022, or 21% to 23% year-on-year excluding the impact of currency changes; net revenue is expected to increase by 15% year-on-year. % to 17%, or 15% to 17% year-over-year excluding the impact of currency changes; EPS will be between $2.97 and $3.15, compared to $3.52 in fiscal 2021; not per U.S. GM GAAP adjusted earnings per share are expected to be in the range of $4.60 to $4.75, compared with $4.60 in fiscal 2021, a weaker-than-expected outlook. According to data provided by the Yahoo Finance website, 45 analysts had previously expected PayPal's full-year adjusted earnings per share to reach $5.25, and 45 analysts had previously expected PayPal's full-year revenue to reach $29.88 billion.
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