• Magdalena Gołębiewska

PayPal Reports Fourth Quarter and Full Year 2019 Results

Long story short:

Q4 2019 Revenue grew 17% to $4.96 billion;

18% FX-neutral revenue growth

Q4 2019 GAAP EPS of $0.43 with non-GAAP EPS of $0.86


29th of January, Global technology platform and digital payments leader PayPal Holdings, Inc. (NASDAQ: PYPL) announced fourth quarter and full year results for the period ended December 31, 2019.


I will start from a quote of my CEO, Dan Schulman, President and CEO of PayPal.:

"PayPal delivered strong results in 2019, achieving many records including revenue, net income and operating margin performance.  We added 37.3 million net new active accounts, bringing total active accounts to 305 million, up 14% year over year.  In Q4 alone, we processed nearly $200 billion of TPV and engagement grew 10% to 40.6 transactions per active account. We strengthened our value proposition for consumers and merchants, expanded our international scope and scale, and announced transformative strategic acquisitions, investments and commercial partnerships,"

And now, lets look at the details:

Financial highlights for fourth quarter 2019

  • Revenue of $4.96 billion; growing 17% on a spot basis and 18% on a foreign currency-neutral (FX-neutral or FXN) basis.

  • GAAP operating income of $0.8 billion, increasing 34%;

  • non-GAAP operating income of $1.2 billion, increasing 28%.

  • GAAP operating margin of 16.1% with non-GAAP operating margin of 23.6%.

  • GAAP EPS of $0.43, decreasing 13%; non-GAAP EPS of $0.86, increasing 24%.

  • GAAP and non-GAAP EPS include a net unrealized gain of $0.02 on strategic investments, driven primarily by MercadoLibre (NASDAQ: MELI).

  • GAAP EPS also includes an approximate $0.19 of negative impact from taxes related to the acquisition of iZettle.

  • Cash flow from operations of $1.3 billion with free cash flow of $1.1 billion.

  • Repurchased approximately 2.9 million shares of common stock, returning $305 million to stockholders.


Operating highlights for fourth quarter 2019

  • 9.3 million net new active accounts, bringing total active accounts to 305 million accounts, up 14%.

  • 3.5 billion payment transactions, up 21%.

  • $199 billion in total payment volume (TPV), up 22% on a spot and FX-neutral basis.

  • Merchant Services volume grew 25% on a spot basis and 26% on an FX-neutral basis.

  • Venmo processed more than $29 billion of TPV, growing 56%.


Financial highlights for full year 2019

  • Revenue of $17.77 billion; growing 15% on a spot and FX-neutral basis.

  • The completed sale of the U.S. consumer credit receivables portfolio to Synchrony in July 2018 negatively affected revenue growth by approximately three and one-half percentage points.

  • GAAP operating income of $2.7 billion, increasing 24%; non-GAAP operating income of $4.1 billion, increasing 23%.

  • GAAP operating margin of 15.3% with non-GAAP operating margin of 23.2%.

  • GAAP EPS of $2.07, increasing 21%; non-GAAP EPS of $3.10, increasing 28%.

  • GAAP and non-GAAP EPS include a net unrealized gain of $0.14 on strategic investments, driven primarily by MercadoLibre.

  • GAAP EPS also includes an approximate $0.19 of negative impact from taxes related to the acquisition of iZettle.

  • Cash flow from operations of $4.6 billion with free cash flow of $3.9 billion.Repurchased approximately 14 million shares of common stock, returning $1.4 billion to stockholders.


Operating highlights for full year 2019

  • 37.3 million net new active accounts, bringing total active accounts to 305 million accounts, up 14%.

  • 12.4 billion payment transactions, up 25%.

  • $712 billion in total payment volume (TPV), up 23%, or 25% on an FX-neutral basis.

  • Merchant Services volume grew 27% on a spot basis and 29% on an FX-neutral basis.

  • Venmo processed more than $102 billion, up 65%.

  • 40.6 payment transactions per active account on a trailing twelve months basis, up 10%.

Contact me at m.golebiewska@icloud.com or leave your email below and let's stay in tuoch. 

  • Instagram - White Circle
  • LinkedIn - White Circle

© 2019 by FTHours.