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Sep 30, 2023
PayPal Q3 2023 Earnings Report
Delivered solid third quarter performance with revenue and EPS ahead of expectations.
Key Takeaways
PayPal's Q3 2023 results showed solid performance with 8% revenue growth to $7.4 billion and non-GAAP EPS of $1.30, up 20% year-over-year. The company focused on disciplined expense management and capital allocation to drive profitable growth.
Total payment volume (TPV) reached $387.7 billion, a 15% increase, or 13% on an FX-neutral basis.
Net revenues grew by 8% to $7.4 billion, with a 9% increase on an FX-neutral basis.
GAAP operating income increased by 4% to $1.2 billion, while non-GAAP operating income rose by 8% to $1.6 billion.
GAAP EPS was $0.93, compared to $1.15 in Q3 2022; non-GAAP EPS was $1.30, up 20% from $1.08 in Q3 2022.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
PayPal anticipates net revenue growth of ~6-7% for Q4 2023 on a spot basis and ~7-8% on an FXN basis. GAAP EPS is expected to be ~$1.20, with non-GAAP EPS projected to grow ~10% to ~$1.36. For FY 2023, GAAP EPS is now expected to be ~$3.75, and non-GAAP EPS is projected to grow ~21% to ~$4.98.
Positive Outlook
- Net revenues expected to grow ~6%-7% on a spot basis and ~7%-8% FXN for Q4 2023
- GAAP earnings per diluted share expected to be ~$1.20 for Q4 2023
- Non-GAAP earnings per diluted share expected to grow ~10% to $1.36 for Q4 2023
- GAAP earnings per diluted share now expected to be ~$3.75 for FY 2023
- Non-GAAP earnings per diluted share now expected to grow ~21% to ~$4.98 for FY 2023
Challenges Ahead
- Q3'23 includes a ~$0.8 billion negative impact from European buy now, pay later (BNPL) loans originated as held for sale (HFS).
- GAAP EPS includes a positive impact of ~$0.02 from PayPal’s strategic investment portfolio, compared to a positive impact of ~$0.34 in Q3'22
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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