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PayPal
🇺🇸 NASDAQ:PYPL
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Jun 30, 2021

PayPal Q2 2021 Earnings Report

PayPal drove strong results, reflecting some of the best performance in its history.

Key Takeaways

PayPal Holdings, Inc. reported strong second-quarter results with TPV reaching $311 billion and active accounts surpassing 400 million. Net revenue grew 19% to $6.24 billion, and non-GAAP EPS increased by 8% to $1.15.

TPV reached $311 billion, growing 40% (36% FXN).

Net revenue was $6.24 billion, growing 19% (17% FXN).

GAAP EPS was $1.00, and non-GAAP EPS was $1.15.

Added 11.4 million Net New Active Accounts (NNAs), ending the quarter with 403 million active accounts.

Total Revenue
$6.24B
Previous year: $5.26B
+18.6%
EPS
$1.15
Previous year: $1.07
+7.5%
Active Accounts
403M
Previous year: 346M
+16.5%
Payment Transactions
4.74B
Previous year: 3.74B
+26.5%
Transactions per Account
43.5
Previous year: 39.2
+11.0%
Gross Profit
$3.55B
Previous year: $2.98B
+19.0%
Cash and Equivalents
$5.75B
Previous year: $6.35B
-9.6%
Free Cash Flow
$1.06B
Previous year: $2.2B
-51.9%
Total Assets
$73.8B
Previous year: $63.2B
+16.9%

PayPal

PayPal

PayPal Revenue by Geographic Location

Forward Guidance

PayPal provided guidance for Q3 2021 and updated its full-year 2021 outlook.

Positive Outlook

  • PayPal expects to add NNAs in the range of 52–55 million.
  • PayPal expects TPV growth to be in the range of ~33%-35% on a spot and FXN basis.
  • PayPal expects net revenue to grow ~20% at current spot rates and ~18.5% on an FXN basis, to ~$25.75 billion.
  • PayPal expects GAAP EPS to be ~$3.49.
  • PayPal expects non-GAAP EPS to grow ~21% to ~$4.70.

Challenges Ahead

  • PayPal expects GAAP earnings per diluted share to be ~$0.68, compared to $0.86 in the prior year period, and for non- GAAP earnings per diluted share to be approximately ~$1.07, in-line with the prior year period
  • GAAP EPS guidance does not include any expectation of net realized and unrealized gains and losses on PayPal’s strategic investment portfolio
  • In the third quarter of 2020, GAAP EPS included a net gain of $0.13 on PayPal’s strategic investment portfolio
  • Estimated non-GAAP amounts for the three months ending September 30, 2021 reflect adjustments of approximately $510 million, including estimated stock-based compensation expense and related payroll taxes of approximately $400 million
  • GAAP EPS guidance includes ~$0.11 of net realized and unrealized gains on PayPal’s strategic investment portfolio

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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