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Mar 31, 2021
PayPal Q1 2021 Earnings Report
PayPal's strongest first quarter results were achieved, showcasing sustained momentum and growth in the digital economy.
Key Takeaways
PayPal reported a strong first quarter with significant growth in TPV, revenue, and active accounts. The company raised its full-year guidance for NNAs, TPV, revenue, and earnings.
Total Payment Volume (TPV) reached $285 billion, a 50% increase, or 46% on an FX-neutral basis.
Revenue was $6.03 billion, reflecting a 31% growth, or 29% on an FX-neutral basis.
GAAP EPS was $0.92, a significant increase from $0.07, while non-GAAP EPS was $1.22, up from $0.66.
The company added 14.5 million Net New Active Accounts (NNAs), ending the quarter with a total of 392 million active accounts.
PayPal
PayPal
PayPal Revenue by Segment
PayPal Revenue by Geographic Location
Revenue by Segment
Transaction Revenue
CapyFin.comOther VAS Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
PayPal provided guidance for Q2 2021 and full year 2021. The company expects revenue to grow approximately 19% in Q2 and 20% for the full year. They anticipate adding 52-55 million new active accounts in 2021.
Positive Outlook
- Revenue expected to grow ~19% at current spot rates and ~17% on an FXN basis, to ~$6.25 billion for Q2 2021.
- TPV growth to be ~30% on a spot and FXN basis for FY21.
- Revenue to grow ~20% at current spot rates and ~18.5% on an FXN basis, to ~$25.75 billion for FY21.
- Expects to add NNAs in the range of 52–55 million for FY21.
- Non-GAAP EPS expected to grow ~21%, to ~$4.70 for FY21.
Challenges Ahead
- PayPal expects GAAP earnings per diluted share to be ~$0.76, compared to $1.29 in the prior year period for Q2 2021.
- GAAP and non-GAAP EPS guidance does not include any expectation of any incremental adjustments to credit loss reserves for Q2 2021.
- GAAP EPS guidance does not include any expectation of net realized and unrealized gains and losses on PayPal’s strategic investment portfolio for Q2 2021.
- GAAP EPS guidance includes ~$0.09 of net realized and unrealized losses on PayPal’s strategic investment portfolio for FY21.
- GAAP and non-GAAP EPS guidance does not include any expectation of any incremental adjustments to credit loss reserves for FY21.
Revenue & Expenses
Visualization of income flow from segment revenue to net income