PayPal Reports First Quarter 2024 Results

Rhea-AI Summary

PayPal Holdings, Inc. (NASDAQ: PYPL) released its first quarter 2024 results, reporting a 9% increase in revenue to $7.7 billion, with a 10% increase on a currency-neutral basis. The company saw an 18% increase in GAAP EPS to $0.83 and a 27% increase in non-GAAP EPS to $1.08. PayPal also reported growth in total payment volume, payment transactions, and active accounts. The company returned $1.5 billion to stockholders through share repurchases.

Positive

• 9% increase in revenue to $7.7 billion, with a 10% increase on a currency-neutral basis

• 18% increase in GAAP EPS to $0.83

• 27% increase in non-GAAP EPS to $1.08

• 14% increase in total payment volume to $403.9 billion

• 11% increase in payment transactions to 6.5 billion

• 1% increase in active accounts sequentially

• Cash flow from operations of $1.9 billion and free cash flow of $1.8 billion

• Returned $1.5 billion to stockholders through share repurchases

Negative

• Active accounts decreased 1% to 427 million

• Adjusted free cash flow of $1.9 billion excludes certain impacts

• Debt totaled $11.0 billion as of March 31, 2024

Insights

Financial Analyst

PayPal's reported increase in Q1'24 revenue by 9% and 10% on a currency-neutral basis is significant for identifying trends in consumer behavior and the payment processing industry. A 27% increase in non-GAAP EPS indicates operational efficiency and a stronger profitability model, especially considering the integration of stock-based compensation into the non-GAAP calculations. The company's stock repurchase of $1.5 billion, representing approximately 25 million shares, also signals confidence in future performance and a commitment to returning value to shareholders.

Market Research Analyst

PayPal’s expansion of the GAAP operating margin by 98 basis points to 15.2% and non-GAAP operating margin by 84 basis points to 18.2% suggests an effective cost management strategy. The 14% increase in total payment volume is reflective of PayPal's growing market penetration. However, active accounts showing only a marginal increase on a sequential basis could be a point of concern and warrants monitoring to assess user engagement and possible market saturation.

Investment Analyst

Investors will appreciate the emphasis on free cash flow, with PayPal reporting $1.9 billion in adjusted free cash flow for Q1'24. This metric is vital for assessing the company's liquidity and financial health. Moreover, PayPal's guidance for Q2'24 and FY'24, with expected non-GAAP EPS growth in low double-digit and mid to high single-digit percentages respectively, despite an anticipated decrease in GAAP EPS compared to the prior year, reflects strategic optimism balanced with cautionary awareness of market conditions.

SAN JOSE, Calif., April 30, 2024 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced its first quarter 2024 results for the period ended March 31, 2024. The earnings release and related materials discussing these results can be found on PayPal's investor relations website at https://investor.pypl.com/financials/quarterly-results/default.aspx.

PayPal Holdings, Inc. will host a conference call to discuss these results at 5:30 a.m. Pacific time (8:30 a.m. Eastern time) today. A live webcast of the conference call will be available at https://investor.pypl.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.

About PayPal

PayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.

Investor Relations Contact
investorrelations@paypal.com 

Media Relations Contact
mediarelations@paypal.com

View original content:https://www.prnewswire.com/news-releases/paypal-reports-first-quarter-2024-results-302131537.html

SOURCE PayPal Holdings, Inc.

FAQ

What was PayPal's Q1'24 revenue?

PayPal's Q1'24 revenue increased 9% to $7.7 billion.

What was the increase in GAAP EPS for Q1'24?

The GAAP EPS for Q1'24 increased by 18% to $0.83.

How many payment transactions were recorded in Q1'24?

Q1'24 saw an 11% increase in payment transactions to 6.5 billion.

What was the total payment volume in Q1'24?

The total payment volume in Q1'24 increased by 14% to $403.9 billion.

What was the balance of cash and investments as of March 31, 2024?

As of March 31, 2024, cash, cash equivalents, and investments totaled $17.7 billion.