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Sep 30, 2024
PayPal Q3 2024 Earnings Report
PayPal delivered strong financial and operating results, made solid progress in transformation, brought new innovations to market, forged important partnerships, and drove awareness and engagement through new marketing campaigns.
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.
Revenue by Segment
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.
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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