NASDAQ$PYPL
PayPal Holdings · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
PayPal experienced strong growth in total payment volume and revenue.
PayPal's Q3 2020 results showed strong growth, with revenue increasing by 25% and a significant rise in GAAP EPS of 121%. The company also added 15.2 million Net New Active Accounts, reaching a total of 361 million.
- Total Payment Volume (TPV) reached $247 billion, a 38% increase.
- Revenue grew by 25% to $5.46 billion.
- GAAP EPS increased by 121% to $0.86, and non-GAAP EPS grew by 41% to $1.07.
- Net New Active Accounts (NNAs) increased by 15.2 million, bringing the total to 361 million.
Headline financials
Revenue & EPS history
PayPal · Revenue · Quarterly
$5.46B
Revenue by segment
PayPal · $7.42B total across 2 segments · Q3 2023
- Transaction revenue$6.65B—89.7%
- Other value-added$764M—10.3%
Forward guidance
PayPal provided revenue and earnings guidance for the fourth quarter of 2020, expecting TPV growth in the low to mid 30% range and revenue growth between 20%-25%.
Tailwinds
- TPV growth on a percentage basis to be in the range of low to mid 30%.
- Revenue to grow in the range of 20%–25% at current spot rates and 20%–25% on an FXN basis.
- GAAP earnings per diluted share to grow in the range of 45%–47%.
- Non-GAAP earnings per diluted share to grow in the range of 17%–18%.
- Excludes the impact of net realized and unrealized gains and losses on PayPal’s strategic investment portfolio.
Headwinds
- GAAP and non-GAAP earnings per diluted share exclude the impact of incremental credit loss reserves due to macroeconomic projections.
- Includes estimated stock-based compensation expense and related payroll taxes of approximately $385 million.
- The dilutive impact of acquisitions is estimated to be approximately $0.10 on GAAP earnings per diluted share.
- The dilutive impact of acquisitions is estimated to be approximately $0.03 on non-GAAP earnings per diluted share.
- In the fourth quarter of 2019, GAAP earnings per diluted share included approximately $0.03 of net unrealized gains from 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 Q3 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
| Quarter | Report date | Reaction (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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