PayPal stock drops after soft Q1, 2022 earnings guidance
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PayPal Holdings (NASDAQ:PYPL) stock slides 12% in after-hours trading after its guidance trails consensus estimates.
The company expects Q1 adjusted EPS of ~$0.87 vs. $1.16 consensus; it also expects Q1 revenue to increase ~6% on a spot basis, with revenue, excluding eBay (NASDAQ:EBAY), to rise ~14%.
For 2022, the payment tech firm expects adjusted EPS of $4.60-$4.75 vs. $5.26 consensus; guides for revenue growth ~15-17% at current spot rates, with revenue, excluding eBay, expected to grow ~19%-21%.
PayPal also expects to add 15M-20M net new active accounts this year, and total payment volume growth of 19%-22% at current spot rates, that's less than the 23% TPV growth it had in 2021.
Q4 non-GAAP EPS of $1.11, trails the average analyst estimate of $1.12 by a penny, matched $1.11 in Q3 and increased from $1.08 in Q4 2020.
Net new active accounts added during the quarter were 9.8M vs. 13.3M in Q3; ends 2021 with 426M active accounts.
Q4 revenue of $6.92B topped the $6.89B consensus increased from $6.18B in Q3; rose 13% from $6.12B in Q4 2020.
Q4 transaction revenue of $6.38B vs. $5.61B in Q3; number of payment transactions 5.34B vs 4.9B in Q3, and Q4 total payment volume of $339.5B vs. $310B in Q3 and rose 23% Y/Y on a spot basis.
Venmo processed $60.6B in TPV in the quarter, up 29% Y/Y and compares with ~$60B in Q3.
Cash flow from operations of $1.8B rose 31% Y/Y and free cash flow of $1.6B, up 38%.
Conference call at 5:00 PM ET.
Earlier, PayPal (PYPL) non-GAAP EPS of $1.11 misses by $0.01, revenue of $6.92B beats by $30M