PayPal (PYPL) Q1 Earning Beat, Revenue Miss Estimates
The company's strategic strategy investment in MercadoLibre MELI acted as a key catalyst in the quarter as According to his contribution from 8 cents to the reported EPS figure,
Net revenue of $ 4.18 billion missed the Zacks Consensus Estimate of $ 4,1[ads1]29 billion, but the figure increased by 12% from the previous quarter.
Top line growth Last year can be attributed to rapidly increasing net new active accounts and strengthening customer engagement on the company's platform, which resulted in a significant increase in overall active accounts in Continuously robust performance of Venmo and One Touch continued to
But sales of the US Synchrony's consumer demand portfolio has negatively impacted revenues. Without the influence, revenues had grown by 19%.
Coming to the price trend, PayPal has achieved 44.8% over a year and surpassed the industry's rally of 21.9%. "Data React =" 11 "> PayPal Holdings, Inc. PYPL delivered non-GAAP revenue of 78 cents per share in the first quarter of 2019, which surpassed the Zacks Consensus Estimate by 11 cents and increased 37 percent [19659007] The company's strategic investment in MercadoLibre MELI was a key catalyst in the quarter, as reflected in its contribution of 8 cents to the reported EPS figure.
Net revenue of $ 4,128 billion missed the Zacks Consensus Estimate of $ 4,129 billion. Increased 12% from last year's quarter.
Last year's top line growth can be attributed to rapidly increasing net new active accounts and strengthening customer engagement on the company's platform, which significantly boosted Total Active Accounts in the reported quarter. by Venmo and One Touch continued to contribute well to revenues.
However, the sales of the US Consumer Consumption Consumer Portfolio affected earnings. Without the influence, revenues had grown by 19%.
Coming to the price trend, PayPal has achieved 44.8% over a year and surpassed the industry's rally of 21.9%.
Top Line in Detail [19659007] By Type: Transaction revenue came to $ 3.731 billion (90.4% of net revenue), an increase of 17% from the quarter. Other value-added services generated revenues of $ 397 million (representing 9.6% of net revenues), a decrease of 18.6% the following year. The decrease is attributable to the sale of the US Consumer Demand Consumption Portfolio.
By Geography: US revenue came to $ 2.187 billion (53% of net revenue), up 8.1% on an annual basis. International revenue was $ 1.941 billion (47% of revenue), up 17% from the previous quarter.
Quarter in detail
PayPal's strategic partnership and portfolio strength continued to strengthen its customer as a trading base through the reported quarter, which in turn contributed to total payment volume (TPV).
During the first quarter, the company revealed a partnership with Facebook's FB Instagram. As per the agreement, it will process payment infrastructure on the latter Checkout on Instagram.
Furthermore, PayPal invested $ 750 million in MercadoLibre to make a foray into the e-commerce site. Furthermore, this move strengthens the company's international presence.
In addition, PayPal unveiled Instant Transfer in collaboration with JPMorgan Chase. This provides real-time payments for both consumers and sellers, allowing PayPal customers to access their money seamlessly.
Furthermore, the company's efforts to make money from Venmo remained positive throughout the quarter. The product's annual revenue rate exceeded $ 300 million in the first quarter.
Key Metrics to Consider
Supported by these trials, the company recorded an annual growth of 17% in total active accounts, with the addition of 9.3 million net new active accounts in the reported quarter. The total number of active accounts totaled NOK 277 million in the quarter, beating the Zacks Consensus Estimate of $ 274 million. Venmo is still an important growth driver in this metric metric over 40 million active customers.
In addition, the total number of payment transactions came to NOK 2.84 billion, an increase of 28.2% on an annual basis. The figure peaked at Zacks Consensus Estimate of 2.82 billion.
Furthermore, the company's payment transactions per asset spent 37.9 million, which increased 9.2% from the previous quarter. The figure delayed the Zacks Consensus Estimate by 38.2 million.
TPV came in at $ 161.5 billion in the reported quarter, showing annual growth of 22% and 25% on spot and currency neutral basis. However, the Zacks Consensus Estimate figure was missing $ 162.9 billion. eBay's EBAY volume, which was down 4%, remains a concern. Furthermore, it accounted for 9.7% of TPV, which contracted 300 bps from the quarter last year.
However, Venmo, which amounted to $ 21 billion of TPV, increased 73% annually, driven by its strong performance. Furthermore, the increasing momentum in the core business summary (P2P) also contributed to $ 42 billion, an increase of 41% from the previous quarter. Also, the volume of merchant services up 29% helped offset the falling eBay contribution in the reported quarter.
Furthermore, mobile payments accounted for more than $ 66 billion of TPV, mainly driven by robust One Touch mobile control services that had 12.1 million buyers and 136 million customers at the end of the first quarter.
PayPal Holdings, Inc. Price, consensus and EPS Surprise | PayPal Holdings, Inc. Quote
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Operating Details "data response =" 52 "> Operating details
<p class =" canvas-atom texttext Mb (1.0em) Mb (0) – sm Mt em) – sm "type =" text "content = "PayPal's operating expenses were $ 3.61 billion in the first quarter, climbed 14.6% from the previous quarter.
Non-GAAP operating profit rose 12.7% year-on-year after $ 934 million. , 6%, and expanded 10 bp in year to year
Balance sheet and cash flow
As of March 31, 2019, cash equivalents and investments came in at $ 7.8 billion, down from $ 9.1 billion as of December 31, 2018.
PayPal generated $ 1.03 billion of cash from operations and free cash flow of $ 809 million in the quarter.
Further, the company repurchased 7.7 million shares worth $ 750 million. [19659002] Guidance
For the second quarter of 2019, PayPal expects revenue between $ 4.3 billion and $ 4.34 billion, and grows in the range of 11-13% with current spot rates and 12-13% on FX neutral basis . The Zacks Consensus Estimate for the top line is linked to $ 4.37 billion.
Non-GAAP earnings are expected to be in the range of 68-70 cents per share. The company's investment portfolio will probably contribute 1 per cent to EPS in the second quarter. The Zacks Consensus Estimate for the bottom line stands at 69 cents.
In 2019, PayPal estimates revenue between $ 17.85 billion and $ 18.1 billion, rising in the band 16-17% to both current spot rates and FX-neutral. The Zacks Consensus Estimate is estimated at $ 17.9 billion.
Furthermore, non-GAAP revenue is expected to be in the range of $ 2.94 – $ 3.01 per share. This includes the benefit of 8 cents from PayPal's investment in MercadoLibre. The Zacks Consensus Estimate is currently linked to $ 2.88 per share.
PayPal currently has a Zacks Rank # 2 (Buy). You can see the complete list of today's Zacks # 1 Rank (Strong Buy) files here.
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See the 7 breakthroughs now & gt; & gt; "data-reactid =" 53 "> PayPal Operating expenses were $ 3.61 billion in the first quarter and climbed 14.6% from the previous quarter.
Operating profit increased by 12.7% the year before to $ 934 million Furthermore, non-GAAP operating margin came to 22.6%, which expands 10 bps on an annual basis.
Balance sheet and cash flow
As of March 31, 2019, cash equivalents and investments came $ 7.8 billion, down from $ 9.1 billion on December 31, 2018.
PayPal generated $ 1.03 billion of cash from operations and free cash flow of $ 809 million in the quarter.
Furthermore, the company acquired 7.7 million shares worth $ 750 million.
Guidance
For the second quarter of 2019, PayPal revenues expect a $ 4.3 billion and $ 4.34 billion grow in the range of 11-13% to current spot rate and 12-13% on FX neutral basis. is related to $ 4.37 billion.
Non-GAAP earnings are expected to be in the range of 68-70 cents per share. The company's investment portfolio will probably contribute 1 per cent to EPS in the second quarter. The Zacks Consensus Estimate for the bottom line stands at 69 cents.
In 2019, PayPal estimates revenue between $ 17.85 billion and $ 18.1 billion, rising in the band 16-17% to both current spot rates and FX-neutral. The Zacks Consensus Estimate is estimated at $ 17.9 billion.
Furthermore, non-GAAP revenue is expected to be in the range of $ 2.94 – $ 3.01 per share. This includes the benefit of 8 cents from PayPal's investment in MercadoLibre. The Zacks Consensus Estimate is currently linked to $ 2.88 per share.
PayPal currently has a Zacks Rank # 2 (Buy). You can see the complete list of today's Zacks # 1 Rank (Strong Buy) files here.
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