NASDAQ$PYPL

PayPal Holdings · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

PayPal delivered strong financial and operating results, made solid progress in transformation, brought new innovations to market, forged important partnerships, and drove awareness and engagement through new marketing campaigns.

PayPal reported a 6% increase in net revenues to $7.8 billion and a 22% increase in non-GAAP EPS to $1.20. Total payment volume increased by 9% to $422.6 billion. The company is raising its full year non-GAAP guidance.

  • Net revenues increased 6% to $7.8 billion, or 6% currency-neutral.
  • GAAP operating income increased 19% to $1.4 billion; non-GAAP operating income increased 18% to $1.5 billion.
  • Total payment volume increased 9% to $422.6 billion, or 9% currency-neutral.
  • Payment transactions increased 6% to 6.6 billion.

Headline financials

Total Revenue

$7.85B

Previous: $7.42B+5.8%
EPS

$0.99

Previous: $1.30-23.8%
Total payment volume

$423B

Previous: $388B+9.0%
Active accounts

432.0M

Previous: 428.0M+0.9%
Payment transactions

6.6B

Previous: 6.3B+5.7%
Transactions per account

61.4

Previous: 56.6+8.5%
Venmo TPV

$74.8B

No prior period
Capital Expenditures

-$480M

Previous: -$478M-0.4%
Free Cash Flow

$530M

Previous: $542M-2.2%
Net Income

$1.01B

Previous: $1.02B-1.0%
Operating Income

$1.39B

Previous: $1.17B+19.1%
Gross Profit

$7.85B

Previous: $7.42B+5.8%
Cash & Equivalents

$7.27B

Previous: $6.82B+6.7%
Total Assets

$83.5B

Previous: $76.4B+9.3%
Stock-Based Comp

$284M

Previous: $379M-25.1%

Revenue & EPS history

PayPal · Revenue · Quarterly

$7.85B

Q3 2024+5.8%vs Q3 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 low single-digit revenue growth for Q4 2024, reflecting the impact of their price-to-value strategy and prioritization of profitable growth. GAAP EPS is expected to be between $1.03 and $1.07. Non-GAAP EPS is projected to decrease by a low to mid-single-digit percentage, influenced by increased marketing spend to support key initiatives and new products.

Tailwinds

  • Revenue growth is expected to be in the low single-digit range.
  • GAAP EPS is projected to be between $1.03 and $1.07.
  • Company is prioritizing profitable growth.
  • Company is focused on key initiatives and new products.
  • Capital return program with stock repurchases.

Headwinds

  • Non-GAAP EPS is expected to decrease by a low to mid-single-digit percentage.
  • Elevated marketing spend to support key initiatives and new products will impact earnings.
  • Strategic investment portfolio had a negative impact of ~$0.14 on GAAP EPS.
  • General economic uncertainty could impact future results.
  • Competition in the market remains intense.

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 2024

Historical avgQ3 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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