NASDAQ$PYPL

PayPal Holdings · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

PayPal reported better-than-expected results for the fourth quarter of 2023, driven by the commitment of the PayPal team to delivering more value to customers. The company is focused on driving significant transformation and making necessary changes to drive profitable growth. Key talent was added to the leadership team, innovation was accelerated, and cost savings were realized and reinvested in important initiatives.

PayPal's Q4 2023 results showed a 9% increase in revenue to $8.0 billion, with GAAP EPS at $1.29 and non-GAAP EPS at $1.48. The company's total payment volume grew by 15% to $409.8 billion. PayPal is focusing on execution in 2024 to position the company for long-term success.

  • Net revenues increased 9% to $8.0 billion.
  • GAAP EPS increased 61% to $1.29, and non-GAAP EPS increased 19% to $1.48.
  • Total Payment Volume (TPV) increased 15% to $409.8 billion.
  • Payment transactions increased 13% to 6.8 billion.

Headline financials

Total Revenue

$8.03B

Previous: $7.38B+8.7%
EPS (adj)

$1.48

Previous: $1.24+19.4%
Total payment volume

$410B

Previous: $357B+14.7%
Active accounts

426.0M

Previous: 435.0M-2.1%
Payment transactions

6.8B

Previous: 6.0B+12.7%
Transactions per account

58.7

Previous: 51.4+14.2%
Capital Expenditures

-$145M

Previous: $158M-191.8%
Net Income

$1.4B

Previous: $921M+52.2%
Operating Income

$1.73B

Previous: $1.2B+44.0%
Gross Profit

$3.67B

Previous: $3.67B+0.0%
R&D Expense

$770M

No prior period
Stock-Based Comp

$388M

Previous: $294M+32.0%

Revenue & EPS history

PayPal · Revenue · Quarterly

$8.03B

Q4 2023+8.7%vs Q4 2022
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

For Q1 2024, PayPal expects net revenues to increase approximately 6.5% to 7% FXN, GAAP earnings per diluted share to increase mid-single digits compared to $0.70 in the prior year period, and non-GAAP earnings per diluted share to increase mid-single digits compared to $1.17 in the prior year period. For FY 2024, GAAP earnings per diluted share are expected to be approximately $3.60, and non-GAAP earnings per diluted share are expected to be in line with $5.10 in the prior year.

Tailwinds

  • Net revenues expected to increase approximately 6.5% and 7% FXN in Q1 2024.
  • GAAP earnings per diluted share expected to increase mid-single digits compared to $0.70 in the prior year period for Q1 2024.
  • Non-GAAP earnings per diluted share expected to increase mid-single digits compared to $1.17 in the prior year period for Q1 2024.
  • GAAP earnings per diluted share expected to be approximately $3.60 for FY 2024.
  • Non-GAAP earnings per diluted share expected to be in line with $5.10 in the prior year for FY 2024.

Headwinds

  • Estimated non-GAAP amounts for Q1 2024 reflect adjustments of approximately $600 million.
  • Stock-based compensation expense and related payroll taxes of approximately $400 million for Q1 2024.
  • An estimated restructuring charge of approximately $120 million for Q1 2024.
  • GAAP earnings per diluted share expected to be approximately $3.60, compared to $3.84 in the prior year for FY 2024.
  • Estimated non-GAAP amounts for FY 2024 reflect adjustments of approximately $1.8 billion.

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 2023

Historical avgQ4 2023

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro