PayPal Revenues And Revenue Growth From 2012 To 2016

Revenue growth is the most commonly analyzed financial metric. Revenue Growth is the percent increase (or decrease) of a company’s revenue between two time periods. It is computed by using the following formula: ((revenues during the time period two – revenues during the time period one) / revenues during the time period one)*100. If the time periods are two consecutive years, then the revenue growth is referred to as the annual revenue growth year-over-year. If the time periods are two consecutive quarters, then the revenue growth is referred to as the quarterly revenue growth quarter-over-quarter. If the time periods refer to the same quarter in the two consecutive years, then the revenue growth is referred to as quarterly revenue growth year-over-year. In case the time periods are two non-consecutive years, then the revenue CAGR (Commutative Annual Growth Rate) is computed.

Revenue growth analysis is important for a number of reasons. First, it helps in understanding how a business is performing. If the revenue growth rates are positive, it means the business is performing well and the revenues are increasing. If the revenue growth rates are negative, it means the revenues are declining and the company needs to take measures to increase them. If they don’t, the company will continue to shrink. Second, a company’s historical revenue growth analysis along with the market size and market share analysis helps in forecasting the future revenues of a company. Third, a comparison of a company’s growth rates with its competitors helps in determining who is winning more business. A revenue growth higher than the industry average translates into increasing market share. Companies with very high revenue growth rates have the potential to be the industry disrupters.

With $10.8 billion revenues, PayPal ranked number 271 in the R&P; Research list of top-3000 public companies in the US by revenues during 2016. Each one of the top-3000 companies generated more than $50 million of annual revenues during 2016.

The top-20 companies in the US by revenues during 2016 were:

1. Walmart ($482.1 billion)
2. ExxonMobil ($226.1 billion)
3. Berkshire Hathaway ($223.6 billion)
4. Apple ($215.6 billion)
5. McKesson ($190.9 billion)
6. UnitedHealth Group ($184.8 billion)
7. CVS Health ($177.5 billion)
8. General Motors ($166.4 billion)
9. AT&T; ($163.8 billion)
10. Ford Motor ($151.8 billion)
11. AmerisourceBergen ($146.8 billion)
12. Amazon ($136 billion)
13. Verizon ($126 billion)
14. General Electric ($123.7 billion)
15. Cardinal Health ($121.5 billion)
16. Costco ($118.7 billion)
17. Walgreens Boots Alliance ($117.4 billion)
18. Chevron ($114.5 billion)
19. Kroger ($109.8 billion)
20. Express Scripts Holding ($100.3 billion)

For the purpose of performance benchmarking of a company with a sector or industry average, R&P; Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For example, Life Sciences sector is comprised of following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments.

PayPal is associated with Technology Sector and Internet Industry.

With $10.8 billion revenues, PayPal ranked number 30 of all the companies in the US Technology sector. There were a total of 406 public companies in the US Technology sector that had revenues greater than $50 million during 2016.

The top-10 companies in the US Technology sector by revenues during 2016 were:

1. Apple ($215.6 billion)
2. Amazon ($136 billion)
3. Alphabet ($90.3 billion)
4. Microsoft ($85.3 billion)
5. IBM ($79.9 billion)
6. Intel ($59.4 billion)
7. Hewlett Packard Enterprise ($50.1 billion)
8. Cisco Systems ($49.2 billion)
9. HP ($48.2 billion)
10. Oracle ($37 billion)

Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:

• Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
• Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
• Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
• IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
• Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
• Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
• Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.

With $10.8 billion revenues, PayPal ranked number 4 of all the companies in the US Internet industry. There were a total of 74 public companies in the US Internet industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Internet industry by revenues during 2016 were:

1. Amazon ($136 billion)
2. Alphabet ($90.3 billion)
3. Facebook ($27.6 billion)
4. PayPal ($10.8 billion)
5. Priceline Group ($10.7 billion)
6. eBay ($9 billion)
7. Netflix ($8.8 billion)
8. Expedia ($8.8 billion)
9. Yahoo ($5.2 billion)
10. Wayfair ($3.4 billion)