PayPal Stories Archive

PayPal Reports Third Quarter 2017 Results
Revenue increased 21% to $3.239 billion, 22% FX-neutral revenue growth
GAAP EPS increased 17% to $0.31, non-GAAP EPS increased 31% to $0.46
SAN JOSE, Calif. -- (BUSINESSWIRE) -- Global technology platform and digital payments leader PayPal Holdings, Inc. (NASDAQ:PYPL) today announced third quarter results for the period ended September 30, 2017.
Financial highlights for the third quarter include:
  • Revenue growth of 21% to $3.239 billion, or 22% on a foreign currency neutral (FX-neutral) basis
  • GAAP operating margin of 13.1% and non-GAAP operating margin of 19.9%
  • GAAP earnings per diluted share (EPS) growth of 17% to $0.31, non-GAAP EPS growth of 31% to $0.46
  • Operating cash flow of $1.006 billion, free cash flow of $841 million, up 36%
Operating highlights for the third quarter include:
  • 8.2 million active customer accounts added, with net new actives up 88%
  • 218 million active customer accounts, with more than 17 million merchant accounts
  • 1.9 billion payment transactions, up 26%
  • 32.8 payment transactions per active account on a trailing twelve months basis, up 9%
  • $114 billion in total payment volume (TPV), up 30%, or 29% on an FX-neutral basis
“PayPal delivered one of its strongest quarters since becoming an independent company.  Putting our customers first in everything we do, enhancing our suite of products and services, and partnering with some of the world’s most popular brands are delivering tangible results,” said Dan Schulman, President and CEO of PayPal. “In addition to our solid financial performance, we also reported record customer growth with the addition of 8.2 million net new actives.  As the world rapidly accelerates to digital payments, we have a tremendous opportunity in front of us.”
PayPal's Expanding Value Proposition
PayPal processed $114 billion in TPV in the quarter. Approximately 35% of payment volume came through a mobile device and mobile payment volume increased 54% over the same period last year to approximately $40 billion.
Person-to-Person (P2P) volume grew 47% to $24 billion, and represented approximately 21% of TPV.  Venmo, the company's social payments platform, processed approximately $30 billion of TPV over the past twelve months, growing 106% over the same period last year.  In the third quarter, Venmo processed approximately $9 billion of TPV, growing 93% over the same period last year.
PayPal continues to build on its partnership strategy to extend the relevance of its platform and add value for its consumers and merchants.  During the quarter, PayPal announced a partnership with Skype to allow users in 22 countries to send money to other Skype users with PayPal via their Skype mobile app.  PayPal also announced the expansion of its partnership with Mastercard into Canada, Europe, Latin America and the Caribbean and the Middle East and Africa.
In the third quarter, PayPal closed the acquisition of Swift Financial, a leading provider of working capital solutions to small businesses in the U.S.  The previously announced acquisition of TIO Networks also closed during the quarter.
2017 Financial Guidance
Full Year 2017 Revenue and Earnings Guidance
  • PayPal expects revenue to grow 19 - 20% at current spot rates and 20 - 21% on an FX-neutral basis, to a range of $12.920 - $12.980 billion.
  • PayPal expects GAAP earnings per diluted share in the range of $1.34 - $1.36 and non-GAAP earnings per diluted share in the range of $1.86 - $1.88.
  • Estimated non-GAAP amounts above for the twelve months ending December 31, 2017, reflect adjustments of approximately $890 - $905 million, primarily representing estimated stock-based compensation expense and related payroll taxes in the range of $730 - $740 million.
Fourth Quarter 2017 Revenue and Earnings Guidance
  • PayPal expects revenue to grow 20% - 22% at current spot rates and 20% - 22% on an FX-neutral basis, to a range of $3.570 - $3.630 billion.
  • PayPal expects GAAP earnings per diluted share in the range of $0.37 - $0.39 and non-GAAP earnings per diluted share in the range of $0.50 - $0.52.
  • Estimated non-GAAP amounts above for the three months ending December 31, 2017, reflect adjustments of approximately $225 - $240 million, primarily representing estimated stock-based compensation expense and related payroll taxes in the range of $205 - $215 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 third quarter 2017 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 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), LinkedIn page (, Facebook page (, YouTube channel (, Dan Schulman’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 (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 218 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 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 by 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.
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 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,” “Reconciliation of 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,” “Reconciliation of Operating Cash Flow to 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 fourth quarter and the full year 2017 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 and economic 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, Paydiant and TIO 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 react to the increasing importance of mobile payments and mobile commerce; PayPal’s ability to deal with the increasingly competitive environment for its businesses, including competition for consumers and merchants; the outcome of legal and regulatory proceedings and PayPal's need and ability to manage other 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; PayPal's need to manage an increasingly large enterprise with a broad range of businesses of varying degrees of maturity and in many different geographies; 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; 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 October 19, 2017. 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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