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PayPal
🇺🇸 NASDAQ:PYPL
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Dec 31, 2023

PayPal Q4 2023 Earnings Report

PayPal reported better-than-expected results for the fourth quarter of 2023, driven by the commitment of the PayPal team to delivering more value to customers. The company is focused on driving significant transformation and making necessary changes to drive profitable growth. Key talent was added to the leadership team, innovation was accelerated, and cost savings were realized and reinvested in important initiatives.

Key Takeaways

PayPal's Q4 2023 results showed a 9% increase in revenue to $8.0 billion, with GAAP EPS at $1.29 and non-GAAP EPS at $1.48. The company's total payment volume grew by 15% to $409.8 billion. PayPal is focusing on execution in 2024 to position the company for long-term success.

Net revenues increased 9% to $8.0 billion.

GAAP EPS increased 61% to $1.29, and non-GAAP EPS increased 19% to $1.48.

Total Payment Volume (TPV) increased 15% to $409.8 billion.

Payment transactions increased 13% to 6.8 billion.

Total Revenue
$8.03B
Previous year: $7.38B
+8.7%
EPS
$1.48
Previous year: $1.24
+19.4%
Active Accounts
426M
Previous year: 435M
-2.1%
Payment Transactions
6.8B
Previous year: 6.03B
+12.7%
Transactions per Account
58.7
Previous year: 51.4
+14.2%
Gross Profit
$3.67B
Previous year: $3.67B
+0.0%
Cash and Equivalents
$9.08B
Previous year: $7.78B
+16.8%
Free Cash Flow
$2.47B
Previous year: $1.43B
+72.3%
Total Assets
$82.2B
Previous year: $78.7B
+4.4%

PayPal

PayPal

Forward Guidance

For Q1 2024, PayPal expects net revenues to increase approximately 6.5% to 7% FXN, GAAP earnings per diluted share to increase mid-single digits compared to $0.70 in the prior year period, and non-GAAP earnings per diluted share to increase mid-single digits compared to $1.17 in the prior year period. For FY 2024, GAAP earnings per diluted share are expected to be approximately $3.60, and non-GAAP earnings per diluted share are expected to be in line with $5.10 in the prior year.

Positive Outlook

  • Net revenues expected to increase approximately 6.5% and 7% FXN in Q1 2024.
  • GAAP earnings per diluted share expected to increase mid-single digits compared to $0.70 in the prior year period for Q1 2024.
  • Non-GAAP earnings per diluted share expected to increase mid-single digits compared to $1.17 in the prior year period for Q1 2024.
  • GAAP earnings per diluted share expected to be approximately $3.60 for FY 2024.
  • Non-GAAP earnings per diluted share expected to be in line with $5.10 in the prior year for FY 2024.

Challenges Ahead

  • Estimated non-GAAP amounts for Q1 2024 reflect adjustments of approximately $600 million.
  • Stock-based compensation expense and related payroll taxes of approximately $400 million for Q1 2024.
  • An estimated restructuring charge of approximately $120 million for Q1 2024.
  • GAAP earnings per diluted share expected to be approximately $3.60, compared to $3.84 in the prior year for FY 2024.
  • Estimated non-GAAP amounts for FY 2024 reflect adjustments of approximately $1.8 billion.

Company Overview

Full financial data and analysis

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