PayPal Reports Third Quarter 2023 Results

Rhea-AI Summary

PayPal reports solid Q3'23 performance with total payment volume of $387.7 billion, growing 15% on an FX-neutral basis. Net revenues reached $7.4 billion, growing 8% on a GAAP basis. GAAP EPS was $0.93 compared to $1.15 in Q3'22. Operating cash flow was $1.3 billion with free cash flow of $1.1 billion. FY'23 net revenues expected to grow ~6%-7% on a spot basis in Q4'23. GAAP EPS expected to be ~$1.20 in Q4'23. FY'23 GAAP EPS now expected to be ~$3.75 compared to $2.09 in FY'22. FY'23 share repurchases expected to reach ~$5 billion.

Positive

• Total payment volume reached $387.7 billion, growing 15% on an FX-neutral basis.
• Net revenues grew 8% on a GAAP basis, reaching $7.4 billion.
• Operating cash flow was $1.3 billion with free cash flow of $1.1 billion.
• FY'23 net revenues expected to grow ~6%-7% on a spot basis in Q4'23.
• FY'23 GAAP EPS expected to be ~$3.75 compared to $2.09 in FY'22.
• FY'23 share repurchases expected to reach ~$5 billion.

Negative

• None.

Q3'23: Solid third quarter performance delivering on both revenue and EPS

• Total payment volume (TPV) of $387.7 billion, growing 15% and 13% on an FX-neutral (FXN) basis
• Net revenues of $7.4 billion, growing 8% and 9% FXN
• GAAP operating income of $1.2 billion, growing 4%; non-GAAP operating income of $1.6 billion, growing 8%
• GAAP EPS of $0.93 compared to $1.15 in Q3'22; non-GAAP EPS of $1.30 compared to $1.08 in Q3'22, growing 20%
• Operating cash flow of $1.3 billion¹ with free cash flow of $1.1 billion¹

FY'23: Ongoing operating discipline driving earnings growth

• Q4'23 net revenues expected to grow ~6%-7% on a spot basis and ~7%-8% FXN
• Q4'23 GAAP EPS expected to be ~$1.20; non-GAAP EPS expected to grow ~10% to ~$1.36
• FY'23 GAAP EPS now expected to be ~$3.75 compared to $2.09 in FY'22; non-GAAP EPS now expected to grow ~21% to ~$4.98
• FY'23 share repurchases expected to reach ~$5 billion

SAN JOSE, Calif., Nov. 1, 2023 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced its third quarter 2023 results for the period ended September 30, 2023. The earnings release and related materials discussing these results can be found on PayPal's investor relations website at https://investor.pypl.com/financials/quarterly-results/default.aspx.

PayPal Holdings, Inc. will host a conference call to discuss these results at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) today. A live webcast of the conference call will be available at https://investor.pypl.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.

About PayPal

PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering hundreds of millions of consumers and merchants in more than 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com.

Investor Relations Contact
investorrelations@paypal.com

Media Relations Contact
mediarelations@paypal.com

 

View original content:https://www.prnewswire.com/news-releases/paypal-reports-third-quarter-2023-results-301974835.html

SOURCE PayPal Holdings, Inc.

FAQ

What are PayPal's Q3'23 total payment volume and net revenues?

PayPal's Q3'23 total payment volume was $387.7 billion, growing 15% on an FX-neutral basis. The net revenues reached $7.4 billion, growing 8% on a GAAP basis.

What was PayPal's Q3'23 GAAP EPS?

PayPal's Q3'23 GAAP EPS was $0.93, compared to $1.15 in Q3'22.

What is the expected growth in net revenues for Q4'23?

PayPal expects net revenues to grow ~6%-7% on a spot basis in Q4'23.

What is the expected GAAP EPS for Q4'23?

PayPal expects Q4'23 GAAP EPS to be ~$1.20.

What is the revised FY'23 GAAP EPS expectation?

PayPal now expects FY'23 GAAP EPS to be ~$3.75, compared to $2.09 in FY'22.

What is the expected amount of share repurchases in FY'23?

PayPal expects share repurchases to reach ~$5 billion in FY'23.