NASDAQ$PYPL

PayPal Holdings · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

PayPal's strongest first quarter results were achieved, showcasing sustained momentum and growth in the digital economy.

PayPal reported a strong first quarter with significant growth in TPV, revenue, and active accounts. The company raised its full-year guidance for NNAs, TPV, revenue, and earnings.

  • Total Payment Volume (TPV) reached $285 billion, a 50% increase, or 46% on an FX-neutral basis.
  • Revenue was $6.03 billion, reflecting a 31% growth, or 29% on an FX-neutral basis.
  • GAAP EPS was $0.92, a significant increase from $0.07, while non-GAAP EPS was $1.22, up from $0.66.
  • The company added 14.5 million Net New Active Accounts (NNAs), ending the quarter with a total of 392 million active accounts.

Headline financials

Total Revenue

$6.03B

Previous: $4.62B+30.6%
EPS (adj)

$1.22

Previous: $0.66+84.8%
Total payment volume

$285B

Previous: $191B+49.4%
Active accounts

392.0M

Previous: 325.0M+20.6%
Payment transactions

4.4B

No prior period
Transactions per account

42.2

No prior period
Capital Expenditures

-$221M

Previous: -$206M-7.3%
Free Cash Flow

$876M

Previous: -$122M+818.0%
Net Income

$1.1B

Previous: $84M+1206.0%
Operating Income

$1.04B

Previous: $398M+161.8%
Gross Profit

$6.03B

Previous: $1M+603200.0%
Cash & Equivalents

$5.72B

Previous: $7.85B-27.2%
Total Assets

$72.5B

Previous: $54.3B+33.6%
Stock-Based Comp

$368M

Previous: $283M+30.0%

Revenue & EPS history

PayPal · Revenue · Quarterly

$6.03B

Q1 2021+30.6%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

PayPal · $6.03B total across 2 segments · Q1 2021

  • Transaction revenue
    $5.62B
  • Other value-added
    $412M

Forward guidance

PayPal provided guidance for Q2 2021 and full year 2021. The company expects revenue to grow approximately 19% in Q2 and 20% for the full year. They anticipate adding 52-55 million new active accounts in 2021.

Tailwinds

  • Revenue expected to grow ~19% at current spot rates and ~17% on an FXN basis, to ~$6.25 billion for Q2 2021.
  • TPV growth to be ~30% on a spot and FXN basis for FY21.
  • Revenue to grow ~20% at current spot rates and ~18.5% on an FXN basis, to ~$25.75 billion for FY21.
  • Expects to add NNAs in the range of 52–55 million for FY21.
  • Non-GAAP EPS expected to grow ~21%, to ~$4.70 for FY21.

Headwinds

  • PayPal expects GAAP earnings per diluted share to be ~$0.76, compared to $1.29 in the prior year period for Q2 2021.
  • GAAP and non-GAAP EPS guidance does not include any expectation of any incremental adjustments to credit loss reserves for Q2 2021.
  • GAAP EPS guidance does not include any expectation of net realized and unrealized gains and losses on PayPal’s strategic investment portfolio for Q2 2021.
  • GAAP EPS guidance includes ~$0.09 of net realized and unrealized losses on PayPal’s strategic investment portfolio for FY21.
  • GAAP and non-GAAP EPS guidance does not include any expectation of any incremental adjustments to credit loss reserves for FY21.

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 2021

Historical avgQ1 2021

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro