PayPal Reports Mixed Q3 Earnings; CEO Alex Chriss Marks First Year
Published September 26, 2024
Introduction
PayPal, a leading digital payments platform, recently reported its third-quarter earnings for the 2023-2024 fiscal year. While the company posted better-than-expected earnings per share, its revenue fell slightly below analyst expectations. This marks the first earnings report under the tenure of CEO Alex Chriss, who took the helm in September 2023.
Financial Performance in Q3
Better Earnings but Lower Revenue
- Earnings per share: $1.20, adjusted (vs. $1.07 expected)
- Revenue: $7.85 billion (vs. $7.89 billion expected)
- Revenue Growth: 6% year-over-year
- Net Income: $1.01 billion (compared to $1.02 billion a year earlier)
Revenue Comparison
While revenue grew by 6% year-over-year to $7.85 billion, it dropped slightly below the analyst’s expectations of $7.89 billion.
÷ Series of Charts ÷
Impact of CEO Alex Chriss’ Measures
Focusing on Profitable Growth
CEO Alex Chriss has made several strategic changes since taking over, focusing on profitable growth and better monetizing key acquisitions like Braintree. His tenure has seen the PayPal stock rise by 36% year-to-date and 42% since his joining in 2023.
FastLane and Other Initiatives
PayPal’s recent product innovation FastLane, unveiled in August, aims to simulate a one-click payment experience, rivaling Apple Pay and Shop Pay. This initiative was opened to Adyen for U.S. businesses and plans further global expansion, aligning with PayPal’s broader checkout strategy.
Total Payment Volume and Diversification
Total payment volume rose by 9% to $422.6 billion, meeting Wall Street expectations. PayPal’s Venmo also saw a 8% increase in total payment volume, driven by partnerships with businesses like DoorDash, Starbucks, and Ticketmaster.
Guidance and Future Outlook
For the fourth quarter, PayPal expects low single-digit growth, with revenue projections around $8.46 billion. The company forecasted adjusted earnings per share between $1.07 and $1.11, slightly higher than the average analyst estimate of $1.10.
CEO Commentary
CEO Alex Chriss commented on the strong financial and operational performance, attributing it to productive initiatives and strategic partnerships.
What to Watch Next
PayPal earnings call for analysts is scheduled for 8 a.m. Eastern Time.
Call-to-Action
Stay informed about PayPal’s financial performance and strategic initiatives by keeping up with our latest updates. Subscribe to our newsletter or follow us on social media for the latest news and analysis in the digital payments industry.