PayPal Earnings Reaction
- The company reported revenue of $6.8 billion, up 9% year over year (YOY), and earnings per share of $0.93, down 19% YOY.
- Venmo ended the quarter with approximately 90 million users, and total payment volume is expected to reach a quarter of a trillion dollars.
- Management also reiterated its 50%-plus revenue growth guidance for Venmo.
- PayPal added 400,000 net new active accounts and ended the quarter with 429 million active accounts, up 6%.
- PayPal ended the quarter with free cash flow of $1.3 billion and is expecting to end the year with over $5 billion in free cash flow.
- The company authorized a new $15 billion share repurchase program.
- Management expects margin expansion to start in Q4 of this year and continue in 2023.