PayPal stock slips after Q1 earnings beat, Q2 guidance disappoints
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PayPal Holdings (NASDAQ:PYPL) stock dropped 3.5% in Monday after-hours trading after the company issued soft Q2 guidance. Its full-year earnings guidance was raised to reflect its stronger-than-expected Q1 earnings, helped by its cost-cutting actions.
The payment tech company expects Q2 adjusted EPS of $1.15-$1.17, compared with the average analyst estimate of $1.17. Meanwhile, PayPal (PYPL) raised 2023 adjusted EPS guidance to ~$4.95 from its previous outlook of ~$4.87, vs. $4.89 consensus.
Q1 adjusted EPS of $1.17, topping the $1.10 consensus, fell from $1.24 in Q4 2022 and rose from $0.88 in Q1 2022. Keep in mind that Q4 includes the holiday shopping season.
The current quarter earnings reflect "diversification of PayPal's (PYPL) platform and ongoing benefits from productivity initiatives," said Acting CFO Gabrielle Rabinovitch. 
Total active accounts stand at 433M down from 435M at Dec. 31, 2022 and up from 429M at March 31, 2022.
Q1 revenue of $7.04B, vs. $6.99B consensus, fell from $7.38B in the prior quarter and increased from $6.48B in the year-ago quarter; Q1 total payment volume (TPV) of $354.5B slipped from $357.4B in Q4 2022 and grew from $323.0B in Q1 2022.
Venmo processed $62.7B in TPV during the first quarter of the year vs. $62.5B in Q4 2022.
Q1 total operating expenses of $6.04B declined from $6.14B in Q4 2022 and increased from $5.77B in Q1 2022.
Net cash provided by operating activities was $1.17B vs. $1.59B in Q4 2022 and from $1.22B in Q1 2022; free cash flow of $1.00B declined from $1.43B in the prior quarter and from $1.03B in the year-ago period.
Conference call at 5:00 PM ET.
Earlier, PayPal (PYPL) Q1 results eat on e-commerce growth, cost-cutting initiatives, guidance raised
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