PayPal Q3 2024 Earnings Report
Key Takeaways
PayPal reported a 6% increase in net revenues to $7.8 billion and a 22% increase in non-GAAP EPS to $1.20. Total payment volume increased by 9% to $422.6 billion. The company is raising its full year non-GAAP guidance.
Net revenues increased 6% to $7.8 billion, or 6% currency-neutral.
GAAP operating income increased 19% to $1.4 billion; non-GAAP operating income increased 18% to $1.5 billion.
Total payment volume increased 9% to $422.6 billion, or 9% currency-neutral.
Payment transactions increased 6% to 6.6 billion.
PayPal
PayPal
PayPal Revenue by Segment
PayPal Revenue by Geographic Location
Forward Guidance
PayPal anticipates low single-digit revenue growth for Q4 2024, reflecting the impact of their price-to-value strategy and prioritization of profitable growth. GAAP EPS is expected to be between $1.03 and $1.07. Non-GAAP EPS is projected to decrease by a low to mid-single-digit percentage, influenced by increased marketing spend to support key initiatives and new products.
Positive Outlook
- Revenue growth is expected to be in the low single-digit range.
- GAAP EPS is projected to be between $1.03 and $1.07.
- Company is prioritizing profitable growth.
- Company is focused on key initiatives and new products.
- Capital return program with stock repurchases.
Challenges Ahead
- Non-GAAP EPS is expected to decrease by a low to mid-single-digit percentage.
- Elevated marketing spend to support key initiatives and new products will impact earnings.
- Strategic investment portfolio had a negative impact of ~$0.14 on GAAP EPS.
- General economic uncertainty could impact future results.
- Competition in the market remains intense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income