PayPal stock slides on soft guidance for new active accounts, Q4 revenue
Justin Sullivan

PayPal Holdings (NASDAQ:PYPL) stock sank 7.8% in Thursday after-hours trading after it said net new active accounts in 2022 could fall below its previous guidance and sees Q4 revenue falling short of the Street consensus.
The fintech payment company now expects 8M-10M net new actives in FY 2022 vs. its previous guidance of 10M.
PayPal (PYPL) guides for Q4 adjusted EPS of $1.18-$1.20 vs. consensus estimate of $1.18 and sees net revenue of ~$7.38B vs. $7.74B consensus.
For 2023, the company is targeting at least 100 basis points of non-GAAP operating margin expansion and at least 15% non-GAAP EPS growth.
Q3 adjusted EPS of $1.08, topping the $0.96 consensus, increased from $0.93 in Q2 and fell from $1.11 in Q3 2021.
Net new active accounts were 2.9M in the quarter, up from 0.4M in Q2. Total active accounts stand at 432M, up 4% Y/Y.
Q3 revenue of $6.85B, exceeding the $6.82B consensus, rose from $6.81B in Q2 and from $6.18B in the year-ago period; Q3 total payment volume ("TPV") of $337.0B slipped from $339.8B in Q2 and rose from $309.9B in Q3 2021.
Venmo processed $63.6B in TPV, up 6% Y/Y and up from $61.4B in Q2. The company didn't disclose Buy Now, Pay Later volume in its shareholder letter or presentation.
Q3 total operating expenses of $5.31B declined from $5.50B in Q2 and increased from $4.71B in Q3 2021.
Cash flow from operations of $1.95B vs. $1.47B in Q2 and $1.51B in Q3 2021; free cash flow of $1.77B vs. $1.29B in the previous quarter and $1.29B in the year-ago quarter.
Conference call at 5:30 PM ET.
Earlier, PayPal (PYPL) Q3 non-GAAP EPS, revenue beats, FY22 EPS outlook raised, revenue guidance lowered