Dan Schulman to retire after leading PayPal since eBay split

Dan Schulman to retire after leading PayPal since eBay split

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PayPal Holdings Inc. announced today that President and Chief Executive Officer Dan Schulman (pictured) will retire at the end of 2023, while also reporting better-than-expected earnings in the fourth quarter.

Schulman joined PayPal in September 2014, the same time then-owner eBay Inc. announced that it would be splitting PayPal off into a separate company. The transaction was subsequently completed in April 2015. Schulman, who turned 65 in January, said he will work with PayPal’s Board to ensure a smooth leadership transition and would continue to serve on the Board of Directors after retiring.

“I’m proud of what we have accomplished at PayPal and of the incredibly talented and committed people I work with every day,” Schulman said in a statement. “Together, we have reimagined financial services and e-commerce and worked to improve the financial health of our customers.”

During Schulman’s time leading PayPal, the company saw its revenue grow from $9.2 billion in 2015 to $27.5 billion in 2022, with total active accounts more than doubling to over 430 million in 200 markets. Total payment volume grew from $288 billion to $1.36 billion over the same period.

For the quarter that ended Dec. 31, PayPal reported non-generally accepted accounting principles earnings per share of $1.24, up 12% from the fourth quarter of 2021, on revenue of $7.38 billion, up 9% year-over-year. Analysts had expected earnings per share of $1.20 on revenue of $7.39 billion.

Operating income in the quarter was up 12% year-over-year to $1.7 billion, driven by total payment volume rising 9% to $357.4 billion. PayPal processed six billion transactions in the quarter, up 13%, with an average of 51.4 payments transactions per active account, also up 13%.

For the full year 2022, PayPal reported non-GAAP EPS of $4.13, down from $4.60 the year prior. Revenue totaled $27.5 billion, up 8%.

For the first quarter of 2023, PayPal said that it expected EPS of $1.08 to $1.10 and revenue growth of 7%. For the full year, the company expects EPS of approximately $4.13 but did not give a revenue outlook.

Reuters reports that in its earnings call, Acting Chief Financial Officer Gabrielle Rabinovitch explained that PayPal is committed to lowering expenses amid a backdrop of its key e-commerce segment slowing down. “The rate of e-commerce growth in our core markets has decelerated. Inflationary pressures have affected discretionary consumer spending and post-COVID spending patterns are still evolving,” Rabinovitch said.

Photo: Kris Klug/Wikimedia Commons

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