Paypal PYPL Q2 2021 Earnings


Results

  • EPS: $1.15 vs $1.12 expected, slightly beating expectations

  • Revenue: $6.24 billion vs $6.27 billion, a slight miss for revenue

- 19% YoY growth

  • Added 11.4 million net new active accounts, for a total of 403 million

  • Total payment volume (TPV) of $311 billion, up 40% YoY

- Venmo payment volume grew 58% to $58 billion

  • 43.5 payment transactions per active account TTM, up 11%

  • FCF of $1.06 billion, declining 33%

Q3 Guidance

  • EPS: $1.07, below market expectations of $1.14

  • Revenue: $6.15-6.25 billion, below market expectations of $6.44 billion

FY21 Guidance

  • TPV growth between 33%-35%

  • Revenue of $27.75 billion, growth of 20%

  • EPS of $4.70, up 21%

  • 52-55 million NNAs added

Market Reaction

  • - Fell 8% after-close, has climbed back up to be 5.3% below the market Venmo’s Crypto Play

  • Began supporting cryptocurrency services in April,

  • With its network of 32 million retailers, PayPal’s crypto ambitions have positioned the company as a rival to Coinbase, the country’s most popular crypto exchange.

Other Commentary

  • eBay is transitioning off of its platform, which is causing a “short-term drag” on growth but says the eBay transition will be completed by the end of the third quarter.

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