PayPal Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

PayPal (PYPL) reported Q4 and full-year 2024 results, showing mixed performance. Q4 net revenues increased 4% to $8.4 billion, while total payment volume grew 7% to $437.8 billion. The company's Q4 GAAP operating income decreased 17% to $1.4 billion, with GAAP EPS declining 15% to $1.11.

For full-year 2024, net revenues rose 7% to $31.8 billion, with total payment volume reaching $1.68 trillion. Active accounts increased by 8.8 million to 434 million. The company generated $6.8 billion in free cash flow for 2024 and returned $6.0 billion to stockholders through share repurchases.

Notably, PayPal's Board authorized a new $15 billion stock repurchase program, in addition to the $4.86 billion remaining from its June 2022 program.

Positive

• Net revenues increased 7% to $31.8 billion for FY2024
• Total Payment Volume grew 10% to $1.68 trillion in FY2024
• Active accounts increased by 8.8 million to 434 million
• New $15 billion share repurchase authorization announced
• Generated $6.8 billion in free cash flow for FY2024

Negative

• Q4 GAAP operating income decreased 17% to $1.4 billion
• Q4 GAAP operating margin contracted 431 basis points to 17.2%
• Q4 GAAP EPS decreased 15% to $1.11
• Q4 payment transactions decreased 3% to 6.6 billion

SAN JOSE, Calif., Feb. 4, 2025 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced its fourth quarter and full year 2024 results for the period ended December 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 5:00 a.m. Pacific time (8:00 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.

PayPal Reports Fourth Quarter and Full Year 2024 Results

PayPal delivered solid fourth quarter and 2024 results; begins 2025 with strong foundation for continued transformation and new $15 billion share repurchase authorization

SAN JOSE, Calif., (February 4, 2025) – PayPal Holdings, Inc. (NASDAQ: PYPL) today reported results for the fourth quarter and full year ending December 31, 2024.

“PayPal had a strong finish to a successful 2024 with results that were better than we expected. We set out at the beginning of 2024 to narrow our focus, improve execution, and reposition the business. One year later, I’m proud that we’ve laid a strong foundation for long-term, profitable growth across the company’s most important areas. The improvements we made to branded checkout, peer-to-peer, and Venmo, plus the progress we made on our price-to-value strategy, are beginning to show up in our results.

The strong momentum we’ve created sets us up well for 2025, which is about scaling adoption. I’m excited to share more at our Investor Day later this month.”

Alex Chriss
President and CEO

4Q'24 Financial Results

• Net revenues increased 4% to $8.4 billion; 4% currency-neutral (“FXN”).
• Transaction margin dollars increased 7% to $3.9 billion.
• GAAP operating income decreased 17% to $1.4 billion; non-GAAP operating income increased 2% to $1.5 billion.
• GAAP operating margin contracted 431 basis points to 17.2%; non-GAAP operating margin contracted 34 basis points to 18.0%.
• GAAP EPS decreased 15% to $1.11; non-GAAP EPS increased 5% to $1.19.

FY'24 Financial Results

• Net revenues increased 7% to $31.8 billion; 7% FXN.
• Transaction margin dollars increased 7% to $14.7 billion.
• GAAP operating income increased 6% to $5.3 billion; non-GAAP operating income increased 14% to $5.8 billion.
• GAAP operating margin contracted 14 basis points to 16.7%; non-GAAP operating margin expanded 116 basis points to 18.4%.
• GAAP EPS increased 4% to $3.99; non-GAAP EPS increased 21% to $4.65.

4Q'24 & FY'24 Operating Results

• 4Q'24 total payment volume (“TPV”) increased 7% (7% FXN) to $437.8 billion; FY'24 TPV increased 10% (10% FXN) to $1.68 trillion.
• 4Q'24 payment transactions decreased 3% to 6.6 billion; FY'24 payment transactions increased 5% to 26.3 billion.
• Payment transactions per active account on a trailing 12-month basis increased 3% to 60.6.
• Active accounts increased 2.1%, or by 8.8 million, to 434 million. In 4Q'24, active accounts increased sequentially by 0.6%, or by 2.6 million.

Notes:

1. “Non-GAAP Measures of Financial Performance” and subsequent tables at the end of this press release provide reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
2. 4Q'24 GAAP EPS includes ~$0.04 negative impact from PayPal’s strategic investment portfolio. 4Q'23 GAAP EPS includes ~$0.01 negative impact from PayPal’s strategic investment portfolio and ~$0.25 positive impact from the gain on sale of Happy Returns.
3. FY'24 GAAP EPS includes ~$0.23 negative impact from PayPal’s strategic investment portfolio. FY'23 GAAP EPS includes ~$0.14 positive impact from PayPal’s strategic investment portfolio and ~$0.24 positive impact from the gain on sale of Happy Returns.

Cash Flow

• 4Q'24 cash flow from operations of $2.4 billion and free cash flow of $2.2 billion; FY'24 cash flow from operations of $7.5 billion and free cash flow of $6.8 billion.
• Adjusted free cash flow of $2.1 billion in 4Q'24 and $6.6 billion in FY'24, which excludes the net timing impact between originating European buy now, pay later ("BNPL") receivables as held for sale and the subsequent sale of these receivables.

Balance Sheet and Liquidity

• Cash, cash equivalents, and investments totaled $15.4 billion as of December 31, 2024.
• Debt totaled $11.1 billion as of December 31, 2024.
• Returned $1.2 billion to stockholders by repurchasing approximately 15 million shares of common stock in 4Q'24.
• For full year 2024, returned $6.0 billion to stockholders by repurchasing approximately 92 million shares of common stock.
• Announced today that PayPal’s Board of Directors has authorized a new $15 billion stock repurchase program. This new repurchase authorization is in addition to the Company’s June 2022 stock repurchase program, which had $4.86 billion remaining authorization as of December 31, 2024.

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. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.

Investor Relations Contact
investorrelations@paypal.com 

Media Relations Contact
mediarelations@paypal.com

View original content:https://www.prnewswire.com/news-releases/paypal-reports-fourth-quarter-and-full-year-2024-results-302367417.html

SOURCE PayPal Holdings, Inc.

FAQ

What were PayPal's (PYPL) Q4 2024 revenue and earnings?

PayPal reported Q4 2024 net revenues of $8.4 billion, up 4%, and GAAP EPS of $1.11, down 15% year-over-year.

How much is PayPal's (PYPL) new share repurchase program worth?

PayPal announced a new $15 billion share repurchase program, in addition to $4.86 billion remaining from its June 2022 program.

What was PayPal's (PYPL) total payment volume for full-year 2024?

PayPal's total payment volume for full-year 2024 reached $1.68 trillion, representing a 10% increase year-over-year.

How many active accounts did PayPal (PYPL) have at the end of 2024?

PayPal had 434 million active accounts at the end of 2024, adding 8.8 million accounts during the year.

What was PayPal's (PYPL) free cash flow in 2024?

PayPal generated $6.8 billion in free cash flow for the full year 2024.