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Dec 31, 2019
PayPal Q4 2019 Earnings Report
PayPal reported strong Q4 2019 results with revenue growth and increased active accounts.
Key Takeaways
PayPal's Q4 2019 results showed strong growth with a 17% increase in revenue to $4.96 billion and a 24% increase in non-GAAP EPS to $0.86. The company added 9.3 million net new active accounts, bringing the total to 305 million. TPV grew by 22% to $199 billion, and engagement rose to 40.6 transactions per active account.
Revenue grew 17% to $4.96 billion, with 18% FX-neutral growth.
GAAP EPS was $0.43, while non-GAAP EPS reached $0.86.
Net new active accounts increased by 9.3 million, totaling 305 million.
Total Payment Volume (TPV) grew 22% to $199 billion.
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 provided financial guidance for the full year 2020 and the first quarter of 2020.
Positive Outlook
- Full year 2020 revenue is expected to grow approximately 17 - 18% at current spot rates and approximately 18 - 19% on an FX-neutral basis, to a range of $20.8 - $21.0 billion.
- Full year 2020 GAAP earnings per diluted share are expected to be in the range of $1.84 - $1.95.
- Full year 2020 non-GAAP earnings per diluted share are expected to be in the range of $3.39 - $3.46.
- First quarter 2020 revenue is expected to grow 16 - 17% at current spot rates and 17 - 18% on an FX-neutral basis, to a range of $4.78 - $4.84 billion.
- First quarter 2020 non-GAAP earnings per diluted share are expected to be in the range of $0.76 - $0.78.
Challenges Ahead
- Full year 2020 GAAP earnings per diluted share guidance includes an estimated $0.02 of unrealized gains from PayPal’s strategic investment portfolio.
- In 2020, non-GAAP earnings per diluted share will exclude the impact of realized and unrealized gains and losses on PayPal's strategic investment portfolio.
- The dilutive impact of acquisitions is estimated to be in the range of $0.68 - $0.70 on GAAP earnings per diluted share, including an estimated $0.30 of negative impact related to taxes associated with the acquisition of Honey.
- First quarter 2020 GAAP earnings per diluted share guidance includes an estimated $0.02 of unrealized gains from PayPal’s strategic investment portfolio.
- The dilutive impact of acquisitions is estimated to be in the range of $0.41 - $0.43 on GAAP earnings per diluted share, including an estimated $0.30 of negative impact related to taxes associated with the acquisition of Honey.
Revenue & Expenses
Visualization of income flow from segment revenue to net income