PayPal stock gains 5% after Q1 earnings meet consensus
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PayPal Holdings (NASDAQ:PYPL) stock is rising 5.7% in Wednesday after-hours trading after Q1 earnings met the consensus estimate and revenue topped expectations. The payment company adjusted down its expectations for net new accounts for the year.
Guidance fell short of consensus estimates. The company expects Q2 adjusted EPS of ~$0.86 vs. consensus estimate of $1.11 and Q2 revenue growth of ~9% on a spot basis.
For full-year 2022, PayPal (PYPL) expects adjusted EPS of $3.81-$3.93, down from its prior range of $4.60-$4.75 and less than the consensus estimate of $4.62; guides for revenue growth of ~11%-13% at current spot rates, down from its prior range of ~15%-17%.
Guidance for 10M net new active accounts in 2022 compares with prior range of 15M-20M.
Q1 non-GAAP EPS of $0.88 matched the consensus and fell from $1.11 in Q4 2021 and $1.22 in Q1 2021. The current quarter includes a negative impact of about ~$0.03 due to suspension of transactional services in Russia and includes a $0.06 benefit from the release of credit loss reserves.
Net new active accounts added during the quarter were 2.4M vs. 9.8M in Q4.
Q1 revenue of $6.48B topped the $6.41B consensus, fell from $6.92B in Q4 and increased from $6.03B in Q1 2021.
Q1 transaction revenue of $6.00B vs. $6.38B in Q4 and $5.62B in Q1 2021; number of payment transactions were 5.16B vs. 5.34B in Q4 and 4.37B in the year-ago quarter; Q1 total payment volume of $323.0B vs. $339.5B in the prior quarter and up 13% Y/Y on a spot basis.
Venmo processed $57.8B in TPV in the quarter, up 12% Y/Y and compares with $60.6B in Q4 2021.
Cash flow from operations of $1.2B fell 29% Y/Y; free cash flow of $1.1B slid 32%.
Conference call at 5:00 PM ET
Earlier, PayPal (PYPL) non-GAAP EPS of $0.88 in-line, revenue of $6.5B beats by $90M