NASDAQ$PYPL

PayPal Holdings · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

PayPal delivered a solid set of results in Q1 2024, showing progress against its go-forward strategy and strengthened foundation.

PayPal's Q1 2024 results showed a 9% increase in revenue to $7.7 billion, and a GAAP EPS increase of 18% to $0.83. The company is focused on executing its key strategic initiatives, realizing cost savings, and reinvesting to position itself for future growth.

  • Net revenues increased 9% to $7.7 billion, or 10% on a currency-neutral basis.
  • GAAP operating income increased 17% to $1.2 billion; non-GAAP operating income increased 15% to $1.4 billion.
  • Total payment volume increased 14% to $403.9 billion.
  • Active accounts decreased 1% to 427 million, but increased sequentially by 0.4%, or 2 million.

Headline financials

Total Revenue

$7.7B

Previous: $7.04B+9.4%
EPS (adj)

$1.08

Previous: $1.17-7.7%
Capital Expenditures

-$154M

Previous: -$170M+9.4%
Free Cash Flow

$734M

Previous: $625M+17.4%
Net Income

$888M

Previous: $795M+11.7%
Operating Income

$1.17B

Previous: $999M+16.9%
Gross Profit

$7.7B

Previous: $7.04B+9.4%
Cash & Equivalents

$9.69B

Previous: $7.1B+36.5%
Total Assets

$83.3B

Previous: $77.2B+8.0%
R&D Expense

$742M

No prior period
Stock-Based Comp

$365M

Previous: $345M+5.8%

Revenue & EPS history

PayPal · Revenue · Quarterly

$7.7B

Q1 2024+9.4%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

PayPal anticipates net revenues to increase approximately 6.5% and 7% FXN for Q2 2024. GAAP earnings per diluted share are expected to be $0.83, and non-GAAP earnings per diluted share are expected to increase by a low double-digit percentage compared to $0.87 in the prior year period.

Tailwinds

  • Net revenues expected to increase approximately 6.5% and 7% FXN for Q2 2024.
  • Non-GAAP earnings per diluted share expected to increase by a low double-digit percentage compared to $0.87 in the prior year period.
  • Estimated non-GAAP adjustments for the three months ending June 30, 2024 reflect adjustments of approximately $150 million.
  • Includes estimated restructuring charges of approximately $70 million to $90 million.
  • GAAP earnings per diluted share expected to be $0.83.

Headwinds

  • GAAP earnings per diluted share expected to be $0.83 compared to $0.92 in the prior year period.
  • In the second quarter of 2023, GAAP EPS included a positive impact of approximately $0.09 from PayPal’s strategic investment portfolio.
  • Estimated non-GAAP amounts for the three months ending June 30, 2024 reflect adjustments of approximately $150 million.
  • Includes estimated restructuring charges of approximately $70 million to $90 million.
  • GAAP earnings per diluted share expected to be $0.83.

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 2024

Historical avgQ1 2024

-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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