NASDAQ$PYPL

PayPal Holdings · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

PayPal drove strong results, reflecting some of the best performance in its history.

PayPal Holdings, Inc. reported strong second-quarter results with TPV reaching $311 billion and active accounts surpassing 400 million. Net revenue grew 19% to $6.24 billion, and non-GAAP EPS increased by 8% to $1.15.

  • TPV reached $311 billion, growing 40% (36% FXN).
  • Net revenue was $6.24 billion, growing 19% (17% FXN).
  • GAAP EPS was $1.00, and non-GAAP EPS was $1.15.
  • Added 11.4 million Net New Active Accounts (NNAs), ending the quarter with 403 million active accounts.

Headline financials

Total Revenue

$6.24B

Previous: $5.26B+18.6%
EPS (adj)

$1.15

Previous: $1.07+7.5%
Total payment volume

$311B

Previous: $222B+40.1%
Active accounts

403.0M

Previous: 346.0M+16.5%
Payment transactions

4.7B

Previous: 3.7B+26.5%
Transactions per account

43.5

Previous: 39.2+11.0%
Capital Expenditures

-$468M

Previous: -$399M-17.3%
Free Cash Flow

$716M

Previous: $1.13B-36.7%
Net Income

$1.18B

Previous: $1.53B-22.6%
Operating Income

$1.13B

Previous: $951M+18.5%
Gross Profit

$6.24B

Previous: $5.26B+18.6%
Cash & Equivalents

$5.75B

Previous: $6.35B-9.6%
Total Assets

$73.8B

Previous: $63.2B+16.9%
Stock-Based Comp

$390M

Previous: $352M+10.8%

Revenue & EPS history

PayPal · Revenue · Quarterly

$6.24B

Q2 2021+18.6%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

PayPal provided guidance for Q3 2021 and updated its full-year 2021 outlook.

Tailwinds

  • PayPal expects to add NNAs in the range of 52–55 million.
  • PayPal expects TPV growth to be in the range of ~33%-35% on a spot and FXN basis.
  • PayPal expects net revenue to grow ~20% at current spot rates and ~18.5% on an FXN basis, to ~$25.75 billion.
  • PayPal expects GAAP EPS to be ~$3.49.
  • PayPal expects non-GAAP EPS to grow ~21% to ~$4.70.

Headwinds

  • PayPal expects GAAP earnings per diluted share to be ~$0.68, compared to $0.86 in the prior year period, and for non- GAAP earnings per diluted share to be approximately ~$1.07, in-line with the prior year period
  • GAAP EPS guidance does not include any expectation of net realized and unrealized gains and losses on PayPal’s strategic investment portfolio
  • In the third quarter of 2020, GAAP EPS included a net gain of $0.13 on PayPal’s strategic investment portfolio
  • Estimated non-GAAP amounts for the three months ending September 30, 2021 reflect adjustments of approximately $510 million, including estimated stock-based compensation expense and related payroll taxes of approximately $400 million
  • GAAP EPS guidance includes ~$0.11 of net realized and unrealized gains on PayPal’s strategic investment portfolio

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 Q2 2021

Historical avgQ2 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%

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