PayPal Quarterly Update – Q2 2021
Aug 3, 2021

Corporate

Following a record year, PayPal has continued to drive strong results in the second quarter, demonstrating some of the best performance in our history. As digital payment trends accelerate, PayPal continues to serve as an essential and trusted platform for both consumers and merchants, across all forms of commerce, payments and basic financial services.

Key Q2 highlights include:

 

Q2 News Highlights

  • We launched PayPal Zettle in the U.S., a digital point-of-sale solution enabling small businesses to seamlessly sell across in-person and online channels.
  • We expanded ‘Buy Now, Pay Later’ offerings in key international markets, launching Pay in 4 in Australia and announced the upcoming expansion of pay later options in Germany, including more flexible repayment periods.
  • Our buy, sell, hold cryptocurrency experiences fully ramped to Venmo users following initial April launch.
  • We acquired Chargehound and Happy Returns, which enhance our merchant value proposition by adding capabilities related to chargeback automation and returns solutions.
  • PayPal Ventures invested in VNLife, Shiprocket, Talos, TRM Labs, and Codat.
  • We appointed Enrique Lores, president and CEO of HP Inc., to our board of directors, effective June 29, 2021.

 

Paypal's Racial Equity and Social Impact Initiatives

  • We announced a new partnership initiative with the Anti-Defamation League to fight extremism and hate through the financial industry and across at-risk communities.
  • We deposited $135 million in financial institutions serving Black and underserved communities and invested an additional $50 million in Black and Latinx-led venture capital funds as part of our $535 million commitment to advance racial equity. 
  • We committed over $100 million to advance financial inclusion and economic empowerment for women and girls around the world through several internal and external commitments over the next five years.
  • Chipotle, Chobani, Even, Prudential Financial, Verizon, and other leading companies joined PayPal and JUST Capital in the Worker Financial Wellness Initiative, a coalition aimed at making workers' financial security and health a C-suite and investor priority.
  • In 2021, we have provided access to ~$1 billion in loans through the U.S. Small Business Administration’s Paycheck Protection Program (PPP) to ~43,000 small businesses, with an average loan size of ~$22,700.

PayPal Small Business Confidence Index by Morning Consult Finds SMBs More Optimistic and Focused on Digitization

  • The second PayPal Small Business Confidence Index by Morning Consult improved 29 points from November 2020 to April 2021, showing that small businesses are increasingly optimistic about the future 
  • In April 2021, 22% more small business owners felt increased optimism about economic conditions impacting their businesses in the next year, compared to November 2020 
  • In both November 2020 and April 2021, small businesses that sell online-only or across channels scored higher on the confidence index compared to those who sell only in-person 
  • SMBs expect 43% of their business will be online when the pandemic ends, up 6% compared to before the pandemic
  • Read the full report here

Q2 Earnings Highlights

  • We raised full year guidance in Q1 and maintained that guidance at our Q2 report based on strong expectations for the second half; we also raised our 2021 TPV guidance
    • TPV: 33% to 35% growth; previous guidance was 30% growth 
    • Revenue: ~$25.75 billion dollars, representing 20% growth on a spot basis 
    • Non-GAAP EPS: ~$4.70 cents, or growth of approximately 21%
    • NNAs: 52-55M
  • We hit two important milestones in Q2: we surpassed $300B in TPV and now have more than 400M active accounts on our platform
    • TPV grew 40% to $311B and our annualized run rate now is approximately $1.25T
    • Ended Q2 with 403M active accounts, up 16%, with 32M merchants
  • Consumers and merchants are using PayPal more frequently
    • Transactions per active account accelerated 11% to 43.5 times
    • 27% jump in transactions from Q2 last year 
  • Venmo continues to grow 
    • $58B Venmo TPV, up 58%
    • 76 million Venmo active accounts, up from 70 million active accounts at the end of 2020
  • Trends that drove our strong results are:
    • Elevated e-commerce spending that was well above pre-pandemic levels in markets that have reopened
    • Resurgence in travel and events volumes
    • Incremental bill payment volumes
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