NASDAQ$PYPL

PayPal Holdings · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

PayPal reported strong Q4 2019 results with revenue growth and increased active accounts.

PayPal's Q4 2019 results showed strong growth with a 17% increase in revenue to $4.96 billion and a 24% increase in non-GAAP EPS to $0.86. The company added 9.3 million net new active accounts, bringing the total to 305 million. TPV grew by 22% to $199 billion, and engagement rose to 40.6 transactions per active account.

  • Revenue grew 17% to $4.96 billion, with 18% FX-neutral growth.
  • GAAP EPS was $0.43, while non-GAAP EPS reached $0.86.
  • Net new active accounts increased by 9.3 million, totaling 305 million.
  • Total Payment Volume (TPV) grew 22% to $199 billion.

Headline financials

Total Revenue

$4.96B

Previous: $4.23B+17.4%
EPS (adj)

$0.86

Previous: $0.69+24.6%
Total payment volume

$199B

Previous: $164B+21.8%
Active accounts

305.0M

Previous: 267.0M+14.2%
Payment transactions

3.5B

Previous: 2.9B+20.7%
Transactions per account

40.6

Previous: 36.9+10.0%
Capital Expenditures

$174M

Previous: $224M-22.3%
Free Cash Flow

$1.09B

Previous: $910M+19.8%
Net Income

$507M

Previous: $584M-13.2%
Operating Income

$799M

Previous: $598M+33.6%
Gross Profit

$2.67B

Previous: $2.31B+15.6%
Cash & Equivalents

$7.35B

Previous: $7.58B-3.0%
Total Assets

$51.3B

Previous: $43.3B+18.5%
Stock-Based Comp

$285M

Previous: $230M+23.9%

Revenue & EPS history

PayPal · Revenue · Quarterly

$4.96B

Q4 2019+17.4%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

PayPal · $4.96B total across 2 segments · Q4 2019

  • Transaction revenue
    $4.54B
  • Other value-added
    $426M

Forward guidance

PayPal provided financial guidance for the full year 2020 and the first quarter of 2020.

Tailwinds

  • Full year 2020 revenue is expected to grow approximately 17 - 18% at current spot rates and approximately 18 - 19% on an FX-neutral basis, to a range of $20.8 - $21.0 billion.
  • Full year 2020 GAAP earnings per diluted share are expected to be in the range of $1.84 - $1.95.
  • Full year 2020 non-GAAP earnings per diluted share are expected to be in the range of $3.39 - $3.46.
  • First quarter 2020 revenue is expected to grow 16 - 17% at current spot rates and 17 - 18% on an FX-neutral basis, to a range of $4.78 - $4.84 billion.
  • First quarter 2020 non-GAAP earnings per diluted share are expected to be in the range of $0.76 - $0.78.

Headwinds

  • Full year 2020 GAAP earnings per diluted share guidance includes an estimated $0.02 of unrealized gains from PayPal’s strategic investment portfolio.
  • In 2020, non-GAAP earnings per diluted share will exclude the impact of realized and unrealized gains and losses on PayPal's strategic investment portfolio.
  • The dilutive impact of acquisitions is estimated to be in the range of $0.68 - $0.70 on GAAP earnings per diluted share, including an estimated $0.30 of negative impact related to taxes associated with the acquisition of Honey.
  • First quarter 2020 GAAP earnings per diluted share guidance includes an estimated $0.02 of unrealized gains from PayPal’s strategic investment portfolio.
  • The dilutive impact of acquisitions is estimated to be in the range of $0.41 - $0.43 on GAAP earnings per diluted share, including an estimated $0.30 of negative impact related to taxes associated with the acquisition of Honey.

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 Q4 2019

Historical avgQ4 2019

-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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