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PayPal Quarterly Update - Q1 2021

PerformanceCorporate Announcements

PayPal just completed the strongest quarter in our history, which demonstrated sustained momentum in our business as the world shifts into the digital economy. PayPal has become an essential platform for both consumers and merchants, and we will continue to accelerate our customers' digital engagement through the rapid innovation of our digital wallet and merchant commerce platform. 

 

Key Q1 highlights include: 

 

 

Q1 News Highlights

  • PayPal’s cryptocurrency offerings expanded to enable U.S. customers to transact using cryptocurrency to fund commerce.
  • Buy-hold-sell cryptocurrency experiences launched for Venmo customers in April.
  • The Venmo-branded credit card now fully ramped and available for all eligible Venmo users to apply.
  • The December 2020 Coronavirus (COVID-19) relief bill allowed for second round eligibility for the U.S. Small Business Administration’s Paycheck Protection Program. Since the inception of the COVID-19 relief bill, PayPal has facilitated ~$3 billion in loans under the PPP program to approximately 100,000 businesses.
  • PayPal and Venmo waived check-cashing fees for third round of government-issued stimulus checks.
  • PayPal, Uber and Walgreens launched a new Vaccine Access Fund that allows customers to donate to vaccine access efforts to help connect people without transportation to COVID-19 vaccination sites, particularly those in underserved communities. 
  • PayPal and the San Jose Earthquakes announced a multi-year sponsorship agreement that included the naming rights for the Major League Soccer (MLS) team's stadium located in San Jose, California now called PayPal Park. 
  • PayPal acquired Curv, a leading provider of cloud-based infrastructure for digital asset security based in Tel Aviv, Israel.
  • PayPal Ventures invested in TaxBit, Codat and Cameo.
  • PayPal entered into multi-year partnerships with CodeHouse, INROADS and the National Association of Black Accountants to develop and hire Black and diverse talent.
  • Cravings by Chrissy Teigen announced a multi-year partnership that introduces PayPal as the exclusive Buy Now, Pay Later provider for the lifestyle brand’s online store. 

 

PayPal’s Global Impact Report

  • PayPal released its fourth annual Global Impact Report, which highlights the company's key environmental, social and governance (ESG) strategies, activities and progress during the last year.
    • Key facts from the report:
      • Small Business Resilience: Provided more than $4.6B in access to capital to small and medium-businesses (SMBs), including more than $2B in Paycheck Protection Program (PPP) loans through the U.S. Small Business Administration.
      • $535M Commitment: Deployed over $300M of our $535M commitment to help address economic inequality and bolster internal programs to drive transformative social change.
      • Charitable Giving: The PayPal community donated nearly $17B to nonprofits and causes, including over $2M raised for 40K campaigns through the Generosity Network, our new crowdfunding platform.
      • Employee Financial Health: Reached at least 18% PayPal-estimated net disposable income for our U.S. employees, making significant progress towards our goal of 20% globally as part of our Employee Financial Wellness initiative.
      • Climate Action: Set a commitment to reach net-zero greenhouse gas (GHG) emissions across our operations and value chain by 2040.

 

Q1 Earnings Highlights

  • Highest TPV growth in our history
    • Grew 50% to $285B (above consensus)
    • Trailing 12-month TPV surpassed $1 trillion for the first time ever
  • Strong revenue growth
    • Grew 31% to $6.03B (above consensus)
  • Added 14.5M NNAs
    • Ended the quarter with 392M active accounts, up 21%
    • Grew merchant accounts by 1.5 million to 31 million merchants
  • 4.4 billion transactions with highest ever levels of engagement
    • Grew transactions 34%
    • 42.2 transactions per active account
    • ~33% growth in daily active accounts using PayPal core experiences
  • Continued strong performance from Venmo
    • More than $51B of Venmo TPV, up 63% (above consensus)
    • Remain confident in remain confident in our $900 million revenue target for 2021.
  • We’re raising our revenue and earnings outlook for the full year based on strong Q1 and the momentum we are seeing in April
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