PayPal (PYPL) Tops Q2 EPS by 3c; Raises Outlook
PayPal (NASDAQ: PYPL) reported Q2 EPS of $0.46, $0.03 better than the analyst estimate of $0.43. Revenue for the quarter came in at $3.14 billion versus the consensus estimate of $3.09 billion.
- 6.5 million active customer accounts added with net new additions up 80%
- Ended the quarter with 210 million active customer accounts, including 17 million merchant accounts
- 1.8 billion payment transactions, up 23%
- 32.3 payment transactions per active account on a trailing twelve months basis, up 10%
- $106 billion in total payment volume (TPV), up 23%, or 26% on an FX-neutral basis
“The accelerating and extensive scale of our two-sided global platform creates a strong foundation for PayPal’s growth, enabling consumers and merchants to transact in new contexts and across operating systems, technologies and platforms,” said Dan Schulman, President and CEO of PayPal. “Our strong results reflect PayPal’s transformation from a single product to a platform company, from a vendor to a strategic partner to both merchants and ecosystem players, and from a checkout option to an increasingly more central way for consumers to manage and move their money.”
GUIDANCE:
PayPal sees FY2017 EPS of $1.80-$1.84, versus the consensus of $1.78.
2017 Financial Guidance
Full Year 2017 Revenue and Earnings Guidance Raised
- PayPal expects revenue to grow 18 - 19% at current spot rates and 19 - 20% on an FX-neutral basis, to a range of $12.775 - $12.875 billion.
- PayPal expects GAAP earnings per diluted share in the range of $1.32 - $1.36 and non-GAAPearnings per diluted share in the range of $1.80 - $1.84.
- Estimated non-GAAP amounts above for the twelve months ending December 31, 2017, reflect adjustments of approximately $840 - $880 million, primarily representing estimated stock-based compensation expense and related employer payroll taxes in the range of $690 - $720 million.
Third Quarter 2017 Revenue and Earnings Guidance
- PayPal expects revenue to grow 18% - 20% at current spot rates and 18% - 20% on an FX-neutral basis, to a range of $3.140 - $3.190 billion.
- PayPal expects GAAP earnings per diluted share in the range of $0.30 - $0.32 and non-GAAPearnings per diluted share in the range of $0.42 - $0.44.
- Estimated non-GAAP amounts above for the three months ending September 30, 2017, reflect adjustments of approximately $200 - $215 million, primarily representing estimated stock-based compensation expense and related employer payroll taxes in the range of $180 - $190 million.
For earnings history and earnings-related data on PayPal (PYPL) click here.