PayPal Stories Archive

PayPal Reports First Quarter 2018 Results
GAAP EPS grew 33% to $0.42; non-GAAP EPS grew 29% to $0.57
Revenue grew 24% to $3.69 billion; 22% FX-neutral revenue growth
SAN JOSE, Calif. - April 25, 2018 - Global technology platform and digital payments leader PayPal Holdings, Inc. (NASDAQ: PYPL) today announced first quarter results for the period ended March 31, 2018.
"After a strong 2017, we entered 2018 with continued momentum.  Our partner relationships in the U.S. and across the globe continue to grow and flourish.  As the digital economy gathers speed, we are excited to provide new and innovative capabilities to better serve our consumer and merchant customers,” said Dan Schulman, President and CEO of PayPal.
Financial highlights for first quarter 2018 include:
  • Revenue growth of 24% to $3.69 billion, or 22% on a foreign currency-neutral (FX-neutral) basis
  • GAAP operating margin of 14.5%, with non-GAAP operating margin of 22.5%
  • GAAP EPS growth of 33% to $0.42, with non-GAAP EPS growth of 29% to $0.57
  • Repurchased 23.6 million shares of common stock, returning $1.83 billion to stockholders
Operating highlights for first quarter 2018 include:
  • 8.1 million active accounts added, with net new actives up 35%
  • 2.2 billion payment transactions, up 25%
  • $132 billion in total payment volume (TPV), up 32%, or 27% on an FX-neutral basis
  • 34.7 payment transactions per active account on a trailing twelve months basis, up 8%
PayPal's expanding value proposition
PayPal processed $132 billion in TPV in the first quarter, representing growth of 32%, or 27% on an FX-neutral basis. Merchant Services TPV grew 30% on an FX-neutral basis, and represented 87% of overall TPV for the quarter versus approximately 85% a year ago.  eBay Marketplaces volume grew 6% on an FX-neutral basis.
Person-to-Person (P2P) volume grew 50% to nearly $30 billion, and represented approximately 23% of TPV in the first quarter.  Venmo, the company's social payments platform, processed more than $40 billion of TPV over the past twelve months. In the first quarter, Venmo processed more than $12 billion of TPV, growing 80% over the same period last year.
Driven by strong mobile engagement on our platform, PayPal processed approximately $49 billion in mobile payment volume in the first quarter, representing approximately 52% growth year over year.  One Touch, PayPal's innovative checkout experience, ended the first quarter with 92 million consumers opted in.   At the end of the first quarter, 8.6 million merchants offered One Touch.
2018 Financial Guidance
Full year 2018 revenue and earnings guidance
  • PayPal expects revenue to grow 16 - 18% at current spot rates and 15 - 16% on an FX-neutral basis, to a range of $15.20 - $15.40 billion.  As previously disclosed, full year 2018 revenue guidance includes an expected impact related to the sale of U.S. consumer credit receivables to Synchrony Financial of ~3.5 percentage points for full year 2018, assuming the transaction closes on July 1, 2018.
  • PayPal expects GAAP earnings per diluted share in the range of $1.73 - $1.76 and non-GAAP earnings per diluted share in the range of $2.31 - $2.34.
  • Estimated non-GAAP amounts above for the twelve months ending December 31, 2018, reflect adjustments of approximately $1.00 - $1.04 billion, primarily representing estimated stock-based compensation expense and related payroll taxes in the range of $885 - $915 million.
Second quarter 2018 revenue and earnings guidance
  • PayPal expects revenue to grow 21% - 22% at current spot rates and 19% - 20% on an FX-neutral basis, to a range of $3.78 - $3.83 billion.
  • PayPal expects GAAP earnings per diluted share in the range of $0.41 - $0.43 and non-GAAP earnings per diluted share in the range of $0.54 - $0.56.
  • Estimated non-GAAP amounts above for the three months ending June 30, 2018, reflect adjustments of approximately $245 - $260 million, primarily representing estimated stock-based compensation expense and related payroll taxes in the range of $225 - $235 million.
Please see "Non-GAAP Financial Measures" and "Non-GAAP Measures of Financial Performance" for important additional information.
Quarterly conference call and webcast
PayPal Holdings, Inc. will host a conference call to discuss first quarter 2018 results at 2:00 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, can be accessed through the company's Investor Relations website at In addition, an archive of the webcast will be accessible for 90 days through the same link.
PayPal Holdings, Inc. uses its Investor Relations website (, its PayPal Stories Blog (, Twitter handle (@PayPal), Twitter handle (@PayPalNews), LinkedIn page (, Facebook page (, YouTube channel (, Dan Schulman’s LinkedIn profile (, John Rainey's  LinkedIn profile ( and Dan Schulman’s Facebook profile ( as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to PayPal’s press releases, SEC filings, public conference calls and webcasts.
About PayPal
Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal Holdings, Inc. (NASDAQ: PYPL) is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy. Our open digital payments platform gives PayPal’s 237 million active account holders the confidence to connect and transact in new and powerful ways, whether they are online, on a mobile device, in an app, or in person. Through a combination of technological innovation and strategic partnerships, PayPal creates better ways to manage and move money, and offers choice and flexibility when sending payments, paying or getting paid. Available in more than 200 markets around the world, the PayPal platform, including Braintree, Venmo and Xoom, enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies. For more information on PayPal, visit For PayPal Holdings, Inc. financial information, visit
All growth rates represent year-over-year comparisons, except as otherwise noted. FX-neutral results are calculated by translating the current period local currency results by the prior period exchange rate. FX-neutral growth rates are calculated by comparing the current period FX-neutral results with the prior period results, excluding the impact from hedging activities. All amounts in tables are presented in U.S. dollars, rounded to the nearest millions, except as otherwise noted. As a result, certain amounts and rates may not sum or recalculate using the rounded dollar amounts provided.
As previously disclosed, we have updated our definitions of Active Accounts and Total Payment Volume (TPV) to capture the diversification of PayPal’s products and services through strategic partnerships, new products and acquisitions. Prior period metric results for Active Accounts, TPV, Number of Payment Transactions, and Payment Transactions Per Active Account have been revised to reflect the updated definitions of the metrics. For additional details, please see PayPal’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 10, 2018. 
Non-GAAP financial measures
This press release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission (SEC): non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate and free cash flow. For an explanation of the foregoing non-GAAP measures, please see “Non-GAAP Measures of Financial Performance” included in this press release. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles (GAAP). For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see “Non-GAAP Measures of Financial Performance,” “GAAP Operating Margin to Non-GAAP Operating Margin,” “Reconciliation of GAAP Net Income to Non-GAAP Net Income, GAAP Diluted EPS to Non-GAAP Diluted EPS and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate,” and “Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow.”
Forward-looking statements
This press release contains forward-looking statements relating to, among other things, the future results of operations, financial condition, expectations and plans of PayPal Holdings, Inc. and its consolidated subsidiaries that reflect PayPal’s current projections and forecasts. Forward-looking statements can be identified by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” “forecast” and other similar expressions. Forward-looking statements include, but are not limited to, statements regarding projected financial results for the second quarter and full year 2018, and projected future growth of PayPal’s businesses. Forward-looking statements are based upon various estimates and assumptions, as well as information known to PayPal as of the date of this press release, and are inherently subject to numerous risks and uncertainties. Accordingly, actual results could differ materially from those predicted or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: changes in political, business, economic, market and trade conditions, including any regional or general economic downturn or crisis and any conditions that affect payments or e-commerce growth; fluctuations in foreign currency exchange rates; the competitive, regulatory, payment card association-related and other risks specific to the PayPal, PayPal Credit, Braintree, Venmo, Xoom and other products, especially as PayPal continues to expand geographically and introduce new products and as new laws and regulations related to payments and financial services come into effect; the impact of PayPal's customer choice initiatives, including on its funding mix and transaction expense; PayPal’s ability to successfully compete in an increasingly competitive environment for its businesses, products and services, including competition for consumers and merchants and the increasing importance of mobile payments and mobile commerce; the outcome of legal and regulatory proceedings and PayPal's need and ability to manage regulatory, tax and litigation risks as its products and services are offered in more jurisdictions and applicable laws become more restrictive; changes to PayPal's capital allocation or management of operating cash; uncertainty surrounding the implementation and impact of the United Kingdom's formal notification of its intent to withdraw from the European Union; cyberattacks and security vulnerabilities in PayPal products and services that could disrupt business, reduce revenue, increase costs, harm us competitively, or lead to liability; the effect of management changes and business initiatives; any changes PayPal may make to its product offerings; the effect of any natural disasters or other business interruptions on PayPal or PayPal's customers; PayPal's ability to timely upgrade and develop its technology systems, infrastructure and customer service capabilities at reasonable cost; PayPal's ability to maintain the stability, security and performance of its Payment Platform while adding new products and features in a timely fashion; the risk that the planned transaction with Synchrony Financial will not be completed or that we may not realize the expected benefits of the transaction; risks that planned acquisitions will not be completed on contemplated terms, or at all, and that any businesses PayPal may acquire will not perform in accordance with its expectations; and PayPal's ability to profitably integrate, manage and grow businesses that have been acquired or may be acquired in the future. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.
More information about factors that could adversely affect PayPal's results of operations, financial condition and prospects or that could cause actual results to differ from those expressed or implied in forward-looking statements is included under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in PayPal’s most recent annual report on Form 10-K and its subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting PayPal's Investor Relations website at or the SEC's website at All information in this release is as of April 25, 2018. For the reasons discussed above, you should not place undue reliance on the forward-looking statements in this press release. PayPal assumes no obligation to update such forward-looking statements.


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