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Jun 30, 2023
PayPal Q2 2023 Earnings Report
PayPal had a solid performance in Q2 2023, with revenue at the high end of guidance and continued investment in key initiatives.
Key Takeaways
PayPal's Q2 2023 results demonstrated continued momentum, with revenue at the high end of guidance. The company's investments are paying off, and they are well-positioned to grow their leadership in digital payments. Total Payment Volume grew by 11% and Net Revenues increased by 7%.
Total payment volume (TPV) of $376.5 billion, growing 11% on a spot and FX-neutral (FXN) basis
Net revenues of $7.3 billion, growing 7% and 8% FXN
GAAP EPS of $0.92 compared to ($0.29) in Q2'22; non-GAAP EPS of $1.16 compared to $0.93 in Q2'22, growing 24%
In Q2'23, repurchased approximately 22 million shares of common stock, returning $1.5 billion to stockholders
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 anticipates net revenues to reach approximately $7.4 billion in Q3 2023, reflecting an approximate 8% growth on a spot and FXN basis. GAAP earnings per diluted share are projected to be between $0.85 and $0.87. Non-GAAP earnings per diluted share are expected to grow by 13%-14% to $1.22-$1.24.
Positive Outlook
- Net revenues expected to reach ~$7.4 billion, growing ~8% on a spot and FXN basis
- GAAP earnings per diluted share expected to be $0.85-$0.87
- Non-GAAP earnings per diluted share expected to grow 13%-14% to $1.22-$1.24
- Reiterating non-GAAP earnings per diluted share, expected to grow ~20% to ~$4.95
- FY'23 share repurchases now expected to reach ~$5 billion
Challenges Ahead
- GAAP earnings per diluted share expected to be $0.85-$0.87, compared to $1.15 in the prior year period
- Q2'23 operating cash flow of ($0.2) billion
- Q2'23 free cash flow of ($0.4) billion, which include a ~$1.2 billion negative impact from European buy now, pay later (BNPL) loans originated as held for sale (HFS), expected to be sold in H2'23
- Cash flow from operations and free cash flow include the $1.2 billion negative impact from European buy now, pay later loans originated as HFS, expected to be sold in H2'23
- Effective tax rate 21 %
Revenue & Expenses
Visualization of income flow from segment revenue to net income