PayPal reported solid third-quarter earnings and revenue figures. Earnings and revenue figures came above Wall Street expectations.
Here are the key figures from the PayPal earnings report:
The company announced that Net revenues came up to $6.85 billion, growing 11% and 12% on an FX-neutral basis. Analysts’ expectations were for revenue of $6.81 billion.
The GAAP EPS came at $1.15 compared to $0.92 in the third quarter of 2021, and the non-GAAP EPS of $1.08 compared to $1.11 in the same quarter of the previous year. Wall Street forecasts were for $0.96 per share.
The Operating cash flow rose almost 29% to $1.9 billion, and free cash flow increased by 37% to $1.8 billion,
Total Payment Volume (TPV) rose by 9% and 14% FXN to $337.0 billion below the forecasts of $343.25 billion
Total Payment Volume (TPV) excluding eBay grew 10% on a spot basis and 15% FXN, representing 98% of TPV
Venmo processed $63.6 billion in Total Payment Volume (TPV), growing 6%, on top of 36% growth in the third quarter of 2021
2.9 million NNAs added, with total active accounts of 432 million, up 4%
Payment transactions, increased by 15% to 5.6 billion
50.1 payment transactions per active account on a trailing 12-month basis, growing 13%
PayPaL Cash, cash equivalents, and investments totalLed $16.1 billion in the end of September 30.
Debt totalled $10.7 billion as of September 30, 2022
In the third quarter the company generated cash flow from operations of $1.9 billion, increasing 29%, and free cash flow of $1.8 billion, increasing 37%.
PayPal Q4 Guidance
Paypal now expects for the Q4, net revenues of ~$7.375 billion, growing ~7% on a spot basis and ~9% FXN
Revenue excluding eBay is forecasted to grow ~8% on a spot basis and ~10% FXN
The GAAP earnings are estimated to be between ~$0.83-$0.85, compared to $0.68 in the prior year period.
For the full year 2022, Paypal expects TPV to grow about 8.5% on a spot basis and about 12.5% FXN
Net revenues are expected to reach ~$27.5 billion, growing ~8.5% on a spot basis and ~10% FXN
Revenue excluding eBay is expected to grow ~12% on a spot basis and ~13% FXN
Paypal now expects GAAP earnings per diluted share to the range of ~$2.11-$2.13, compared to $3.52 in 2021, and the non-GAAP earnings per diluted share to the range of ~$4.07-$4.09, compared to $4.60 in 2021.
PayPal finished the trading session 3.65% lower at $76.55, and the market capitalization now stands at $91.88 billion. The stock has a 52-week trading range between $67.58 to $231.92. Paypal stock all-time high is at $310.16 from July 26, 2021.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).