PayPal Holdings, Inc. (NASDAQ:PYPL) announced non-GAAP earnings of $1.08 per share for the first quarter of 2024, marking a 27% increase compared to the previous year.

Using the company’s previous methodology, which excludes the impact of stock-based compensation expenses and related employer payroll taxes, adjusted earnings stood at $1.40 per share, surpassing the Consensus Estimate by 16.7%.

Net revenues amounted to $7.7 billion, showcasing a 10% year-over-year growth on an FX-neutral basis and 9% on a reported basis, exceeding the Consensus Estimate of $7.5 billion.

The growth in transaction revenues was a significant driver of the year-over-year increase in top-line performance. Additionally, accelerated revenues from both U.S. and international segments contributed positively.

Here’s a breakdown of the key revenue details:

Transaction revenues totaled $7.03 billion (91% of net revenues), up 11% from the previous year.

Other value-added services generated revenues of $665 million (9% of net revenues), experiencing a 2% decline year over year.

Geographically, revenues from the United States reached $4.5 billion (58% of net revenues), marking an 8% increase from the prior year. International revenues amounted to $3.2 billion (42% of net revenues), up 12% year over year.

Important metrics to consider:

Total active accounts experienced a slight year-over-year decline of 1%, totaling 427 million.

Total payment transactions reached 6.5 billion, marking an 11% increase from the previous year.

Payment transactions per active account increased by 13% to 60 million compared to the previous year.

Total payment volume reached $403.9 billion, indicating a 14% year-over-year growth on a spot-rate basis and on a currency-neutral basis.

Operating expenses for PayPal totaled $6.53 billion in the first quarter, up 8.1% from the prior year. However, as a percentage of net revenues, operating expenses contracted by 100 basis points year over year.

The non-GAAP operating margin expanded by 100 basis points to 15.2% compared to the previous year.

In terms of the balance sheet and cash flow:

Cash equivalents and investments stood at $14.3 billion as of March 31, 2024, compared to $14.1 billion as of December 31, 2023.

Long-term debt balance was $9.68 billion as of March 31, 2024, slightly up from $9.67 billion as of December 31, 2023.

PayPal generated $1.9 billion in cash from operations in the first quarter, with free cash flow at $1.8 billion.

The company repurchased 25 million shares, returning $1.5 billion to shareholders.

Looking ahead, for the second quarter of 2024, PayPal anticipates revenue growth of 6.5% on a spot rate basis and 7% on a currency-neutral basis compared to the previous year. Non-GAAP earnings per share are expected to rise in the low-double-digit percentage. For the full year 2024, PayPal expects non-GAAP earnings per share to increase in the mid to high-single-digit percentage.

Featured Image: Megapixl

Please See Disclaimer