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Sep 30, 2021
PayPal Q3 2021 Earnings Report
Demonstrated solid growth on top of a record year, teaming up with Amazon to enable customers in the U.S. to pay with Venmo at checkout.
Key Takeaways
PayPal Holdings, Inc. reported Q3 2021 results with a TPV of $310 billion, a growth of 26%, and 416 million active accounts. Net revenue was $6.18 billion, up 13%, with a GAAP EPS of $0.92 and a non-GAAP EPS of $1.11.
TPV reached $310 billion, growing 26%, and 24% on an FX-neutral basis.
Net revenue of $6.18 billion, growing 13% on a spot and FXN basis.
GAAP EPS of $0.92 compared to $0.86 in Q3’20; non-GAAP EPS of $1.11 compared to $1.07 in Q3’20.
Added 13.3 million Net New Active Accounts (NNAs), ending the quarter with 416 million active accounts.
PayPal
PayPal
PayPal Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
PayPal provided financial guidance for Q4 2021 and full year 2021.
Positive Outlook
- Net revenue expected to be in the range of ~$6.85 billion to ~$6.95 billion, representing growth of ~12%-14% at current spot rates for Q4 2021.
- Non-GAAP diluted earnings per share to grow ~4% to ~$1.12 for Q4 2021.
- Expects to add ~55 million NNAs, including ~3 million active accounts from the acquisition of Paidy for FY'21
- TPV growth to be in the range of ~33%-34% at current spot rates and ~31%-32% on an FXN basis for FY'21.
- Net revenue to be in the range of ~$25.3 billion to ~$25.4 billion, representing growth of ~18% at current spot rates and ~17% on an FXN basis for FY'21.
Challenges Ahead
- GAAP diluted earnings per share to be ~$0.79, compared to $1.32 in the prior year period for Q4 2021.
- GAAP EPS guidance does not include any expectation of net realized and unrealized gains and losses on PayPal’s strategic investment portfolio for Q4 2021.
- GAAP EPS to be ~$3.62 for FY'21.
- GAAP EPS guidance includes ~$0.24 of net realized and unrealized gains on PayPal’s strategic investment portfolio for FY'21.
- Estimated non-GAAP amounts for the twelve months ending December 31, 2021 reflect adjustments of approximately $2.1 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income