PayPal shifted its mindset in developing guidance, CEO Dan Schulman says
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Coming off the back end of the pandemic, PayPal Holdings (NASDAQ:PYPL) "clearly got ahead of ourselves" in assumptions for how things would play out, PayPal President and CEO Dan Schulman said during an industry conference.
Since then the payment tech company has changed the way it thinks about guidance, philosophically. "We now believe that In our guidance we need to incorporate the likelihood that things get worse going forward âthat they donât necessarily stabilize or get better," he said.
"And we ought to make sure that what we are setting out as our expectation, that we feel very comfortable that we can deliver or over-deliver," Schulman said.
In April, PayPal (PYPL) slashed its FY2022 adjusted EPS guidance to $3.81-$3.93 from its prior range of $4.60-$4.75.
The company will also focus on fewer things, chiefly its check-out product, digital wallet, infrastructure investment and operating leverage.
It will "de-focus" on many of the "long-tail" international countries where the regulatory environment is more difficult and would require a lot of investment. "We have so much we can do in our core markets of North America, Western Europe, China, Japan, Singapore, Australia, Mexico, and Brazil," Schulman said.
Previously (April 28), PayPal (PYPL) shares rise after analysts consider guidance reset