PayPal stock slides after in-line Q2 earnings, active accounts number slips
JasonDoiy
PayPal Holdings (NASDAQ:PYPL) stock fell 7.6% in Wednesday after-hours trading after it posted Q2 earnings in line with the Wall Street consensus and reiterated 2023 non-GAAP EPS guidance.
Meanwhile, the number of active accounts continued to slip from the previous quarter. Net cash from operating activities turned negative due to European buy now, pay later loans that are set to be sold.
The fintech company expects Q3 adjusted EPS of $1.22-$1.24, meeting or beating the average analyst estimate of $1.22. For the year, it reiterated its adjusted EPS of ~$4.95; $4.94 consensus.
Share repurchases in 2023 are now expected to reach ~$5B.
Q2 adjusted EPS of $1.16, matching the consensus, slipped from $1.17 in Q1 and increased from $0.93 in Q2 2022.
Total active accounts totaled 431M at June 30, 2023, down from 433M at March 31, its second straight Q/Q decline. Meanwhile, transactions per active account increased to 54.7 from 53.1 in Q1 and from 48.7 in Q2 2022.
Q2 revenue of $7.29B, topping the $7.27B consensus, rose from $7.04B in the previous quarter and from $6.81B in the year-ago period. Q2 total payment volume (TPV) of $367.5B rose from $354.5B in Q1 and from $339.8B in Q2 2022.
Venmo processed $67B in TPV during the quarter vs. $63B in Q1.
Net cash provided by operating activities was -$0.2B, down from $1.17B in Q1 and from $1.3B in Q2 2022; free cash flow of -$0.4B declined from $1.00B in the previous quarter and from $B a year ago. Both cash flow figures included the $1.2B negative impact from European buy now, pay later loans originated at HFS and expected to be sold in H2 2023.
Conference call at 5:00 PM ET.
Earlier, PayPal (PYPL) non-GAAP EPS of $1.16 in-line, revenue of $7.3B beats by $30M

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