PayPal Earnings Beat. Payment Volume Edges By Estimates Amid Apple Worries

Feb 8, 2024

PayPal Holdings (PYPL) on Wednesday reported December-quarter earnings and revenue that topped consensus estimates. PYPL stock dipped in late trading as total payment volume processed from merchant customers edged by views amid market share loss to Apple (AAPL).


On the stock market today, PYPL stock fell more than 3% to 61.32 in extended trading.

PayPal did not offer 2024 revenue guidance. The company didn’t offer 2023 revenue guidance a year earlier. But the digital payments company provided annual revenue guidance in better times.

PayPal earnings for the fourth quarter rose 19% to $1.48 per share on an adjusted basis. Revenue climbed 9% to $8 billion.

Analysts expected PayPal earnings of $1.36 a share on revenue of $7.88 billion. A year earlier, PayPal earned $1.24 a share on sales of $7.38 billion.

How Will Job Cuts Affect PYPL Stock

Total payment volume processed from merchant customers in the quarter climbed 15% to $409.8 billion. Analysts had projected total payment volume of $405.5 billion.

For full-year 2024, PayPal predicted adjusted earnings of $5.10, missing estimates amid higher investments. Analysts had called for earnings of $5.51 a share.

PayPal said its profit outlook included “adjustments of approximately $1.8 billion, including estimated stock-based compensation expense and related payroll taxes of approximately $1.4 billion and an estimated restructuring charge of approximately $120 million.”

New CEO Alex Chriss took the helm in late September. Also, PayPal named a new chief financial officer: Jamie Miller, formerly CFO at consultancy EY.

Meanwhile, PayPal plans to cut 9% of its workforce, or 2,500 employees, in 2024.

San Jose, Calif.-based PayPal has evolved from an online checkout site to a mobile shopping and person-to-person payments site. Meanwhile, competition has heated up with Apple, Square-parent Block (SQ) and others.

Heading into the PayPal earnings report, shares were up 4% in 2024 but down 23% over the past year.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.


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