NASDAQ$PYPL

PayPal Holdings · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

PayPal delivered solid results as the platform saw record growth through February and accelerated digital payments adoption in April.

PayPal Holdings, Inc. reported a 12% increase in revenue and a GAAP EPS of $0.07 for Q1 2020. The company added 20.2 million net new active accounts. Total Payment Volume grew by 18%.

  • 20.2 million net new active accounts were added, including 10.2 million from the acquisition of Honey.
  • TPV grew 18% (19% FX-neutral).
  • Revenue increased by 12% (13% FX-neutral).
  • GAAP EPS was $0.07, and non-GAAP EPS was $0.66, which includes a $0.17 negative impact from increasing credit loss reserves.

Headline financials

Total Revenue

$4.62B

Previous: $4.13B+11.9%
EPS (adj)

$0.66

Previous: $0.78-15.4%
Total payment volume

$191B

Previous: $161B+18.6%
Active accounts

325.0M

Previous: 277.0M+17.3%
Capital Expenditures

-$206M

Previous: -$218M+5.5%
Free Cash Flow

-$122M

Previous: $449M-127.2%
Net Income

$84M

Previous: $667M-87.4%
Operating Income

$398M

Previous: $518M-23.2%
Gross Profit

$1M

Previous: $2M-50.0%
Cash & Equivalents

$7.85B

Previous: $4.52B+74.0%
Total Assets

$54.3B

Previous: $46.3B+17.3%
Stock-Based Comp

$283M

Previous: $247M+14.6%

Revenue & EPS history

PayPal · Revenue · Quarterly

$4.62B

Q1 2020+11.9%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

PayPal · $7.42B total across 2 segments · Q3 2023

  • Transaction revenue
    $6.65B
  • Other value-added
    $764M

Forward guidance

PayPal expects revenue to grow approximately 13% at current spot and approximately 15% FXN. PayPal expects non-GAAP EPS to grow 15%–20% and GAAP EPS to decline by 28%–34%.

Tailwinds

  • Revenue to grow ~13% at current spot rates.
  • Revenue to grow ~15% FXN.
  • Non-GAAP EPS to grow 15%–20%.
  • The company is helping its customers affected by COVID-19.
  • April business trends are accelerating.

Headwinds

  • The company is withdrawing its full year 2020 revenue and earnings guidance.
  • GAAP EPS to decline by 28%–34%.
  • The guidance does not include any expectation of unrealized gains or losses from strategic investments.
  • The company is unable to predict the impact of COVID-19.
  • The company is unable to predict the impact of future acquisitions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

-1.8%

Avg return

5 days after

-1.1%

Avg return

30 days after

56%

28 / 50 earnings

Positive

+16.6%

Q1 2020

Best reaction

-22.9%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%-10.0%-15.2%
Q4 2025-20.1%-22.8%-9.0%
Q3 2025+4.7%-1.4%-12.0%
Q2 2025-8.7%-14.2%-10.4%
Q1 2025+2.1%+3.6%+9.2%
Q4 2024-13.2%-13.6%-23.9%
Q3 2024-6.4%-7.6%+3.6%
Q2 2024+11.6%+5.2%+24.1%
Q1 2024-1.3%-1.9%-6.7%
Q4 2023-11.9%-5.7%-7.4%
Q3 2023+6.3%+5.4%+15.2%
Q2 2023-15.0%-14.7%-15.8%
Q1 2023-12.1%-17.7%-14.6%
Q4 2022+1.4%-3.1%-7.9%
Q3 2022-5.4%+2.1%-6.0%
Q2 2022+10.6%+7.6%+4.6%
Q1 2022+10.0%+9.4%+1.8%
Q4 2021-22.9%-26.7%-41.1%
Q3 2021-9.0%-7.7%-12.6%
Q2 2021-5.8%-9.8%-7.4%
Q1 2021+0.7%-2.6%+5.1%
Q4 2020+8.6%+13.3%-4.0%
Q3 2020-3.4%+8.9%+14.2%
Q2 2020+9.2%+11.8%+16.0%
Q1 2020+16.6%+14.8%+24.4%
Q4 2019+0.5%-0.0%-7.3%
Q3 2019+7.8%+9.5%+4.5%
Q2 2019-4.2%-7.3%-11.8%
Q1 2019+3.1%+5.2%+2.8%
Q4 2018-2.6%+0.6%+8.4%
Q3 2018+5.9%+9.3%+6.2%
Q2 2018-2.5%-9.9%-1.4%
Q1 2018+1.0%-0.9%+7.5%
Q4 2017-6.4%-10.8%-5.9%
Q3 2017+5.5%+4.4%+13.6%
Q2 2017+3.2%+0.5%+2.9%
Q1 2017+5.5%+6.3%+14.5%
Q4 2016-3.5%-4.6%+3.3%
Q3 2016+9.7%+7.6%-0.4%
Q2 2016-6.6%-5.9%-4.9%
Q1 2015-2.1%
Q1 2016+0.9%
Q4 2014+4.3%
Q4 2015+7.1%
Q3 2014-1.4%
Q3 2015-0.1%
Q2 2015+2.3%
Q4 2013+2.3%
Q2 2014+2.3%
Q1 2014+2.3%

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