PayPal stock climbs as Q3 earnings beat, Amazon deal announced

Nov. 08, 2021 4:39 PM ETPayPal Holdings, Inc. (PYPL)AMZNBy: Liz Kiesche, SA News Editor79 Comments

PayPal phone

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  • PayPal Holdings (NASDAQ:PYPL) stock gains 1.5% in after-hours trading after Q3 earnings top the average analyst estimate and the payment tech firm says Venmo users will be able to pay with Venmo on Amazon.com (NASDAQ:AMZN) starting in 2022.
  • "Our third quarter results show solid growth on top of a record year," said President and CEO Dan Schulman. "We’re thrilled that we are teaming up with Amazon to enable customers in the U.S. to pay with Venmo at checkout."
  • PayPal (PYPL) sees Q4 revenue of ~$6.85B-~$6.95B, less than the consensus of $7.24B and Q4 EPS of ~$1.12 vs. $1.27 consensus.
  • Sees ~55M net new active accounts added in 2021 vs. prior guidance of 52M-55M.
  • Q3 non-GAAP EPS of $1.11, topping the average analyst estimate of $1.08, decreased from $1.15 in Q2 and increased from $1.07 in Q3 2020.
  • Q3 net new active accounts of 13.3M vs. 11.4M in Q2; ends quarter with 416M active accounts.
  • Q3 revenue of $6.18B misses the $6.23B consensus and decreased from $6.24B in Q2, but rose 13% Y/Y on spot and forex-neutral basis.
  • Q3 transaction revenue of $5.61B fell from $5.80B in Q2 and increased from $5.08B in Q3 2020.
  • 4.9B payment transactions vs. 4.7B in Q2, and up 22% Y/Y.
  • Q3 total payment volume of $310B, up 26% Y/Y on a spot basis.
  • Venmo processed ~$60B in TPV in the quarter, up 36% Y/Y; compares with ~$58B in Q2.
  • Generated cash flow from operations of $1.51B, up 15% Y/Y, and free cash flow of $1.29B, up 20%.
  • Conference call at 5:00 PM ET.
  • Earlier, PayPal higher as Amazon deal outweighs soft outlook.

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