PayPal Stories Archive

PayPal Reports Third Quarter 2018 Results
As of April 19, 2022, the PayPal Cash Out feature is no longer available in the PayPal app. Customers looking to make a cash withdrawal from their PayPal balance can do so with their PayPal Cash Card. More information can be found here. 

GAAP EPS of $0.36, increasing 17%; non-GAAP EPS of $0.58, increasing 26%
Announces partnerships with American Express and Walmart
Global technology platform and digital payments leader PayPal Holdings, Inc. (NASDAQ: PYPL) today announced third quarter results for the period ended September 30, 2018.
Financial highlights for third quarter 2018
  • Revenue growth of 14% to $3.68 billion on both a spot and foreign currency-neutral (FX-neutral or FXN) basis.  The completion of the sale of the U.S. consumer credit receivables portfolio to Synchrony in July 2018 negatively affected revenue growth by approximately seven percentage points.
  • GAAP operating margin expanded 24 basis points to 13.3%; non-GAAP operating margin expanded 142 basis points to 21.4%
  • GAAP EPS of $0.36, increasing 17%; non-GAAP EPS of $0.58, increasing 26%
Operating highlights for third quarter 2018
  • 9.1 million active accounts added versus an increase of 8.2 million in Q3 2017, and ended the quarter with 254 million active accounts, up 15%
  • 2.5 billion payment transactions, up 27%
  • $143 billion in total payment volume (TPV), up 24%, or 25% on an FX-neutral basis
  • 36.5 payment transactions per active account on a trailing twelve months basis, up 9.5%
“PayPal had another excellent quarter.  New partnerships with American Express and Walmart will increase the value that we can offer to our customers.  Our strong balance sheet and cash flow enable us to aggressively invest in innovation and growth, creating sustainable and long-term value for our shareholders.” said Dan Schulman, President and CEO of PayPal.
PayPal's expanding value proposition
PayPal processed $143 billion in TPV in the third quarter, representing growth of 24%, or 25% on an FX-neutral basis. Merchant Services TPV grew 28% on an FX-neutral basis.  eBay Marketplaces volume grew 3% on an FX-neutral basis, and represented 11% of overall TPV for the quarter versus approximately 13% a year ago.  Person-to-Person (P2P) volume grew 50% to more than $36 billion, and represented approximately 25% of TPV in the third quarter.
Strong mobile engagement on PayPal’s platform contributed to approximately $57 billion in mobile payment volume, growing approximately 45%.  In the third quarter, mobile payment volume represented 40% of overall TPV.  Venmo, the company’s social payments platform, processed approximately $17 billion of TPV in the third quarter, growing 78%.  On a trailing twelve month basis, Venmo processed approximately $54 billion of TPV.
As part of PayPal’s efforts to further improve its value proposition for merchants, Funds Now was launched in the third quarter.  This initiative gives merchants instant access to funds by eliminating holds, delays and reserves and is now available to sellers in the U.S., UK and Australia.
In the third quarter, PayPal closed the acquisition of iZettle, a leading small business commerce platform in Europe and Latin America.  This acquisition expands PayPal’s suite of products and services for small businesses.
PayPal partners with American Express and Walmart
PayPal and American Express announced a comprehensive strategic partnership today.  The agreement will allow PayPal to access American Express tokens and enables a deep integration of PayPal capabilities with the American Express platform, including the ability to transfer and use American Express rewards points at PayPal merchants.
In October 2018, PayPal announced a partnership with Walmart to offer PayPal cash in and cash out money services at Walmart retail stores.  Using the PayPal mobile app, customers can load cash into and withdraw money from their PayPal balance at all Walmart stores in the U.S.  Additionally, PayPal Cash Mastercard customers can use their PayPal balance to shop in store, on a mobile device and online at Walmart, as well as withdraw cash at the register or from Walmart’s ATM locations nationwide.
2018 Financial Guidance
Full year 2018 revenue and earnings guidance
  • PayPal expects revenue to grow 18 - 19% at current spot rates and 17 - 18% on an FX-neutral basis, to a range of $15.420 - $15.500 billion. As previously disclosed, full year 2018 revenue guidance includes an expected decline related to the sale of U.S. consumer credit receivables to Synchrony of approximately 3.5 percentage points for full year 2018.
  • PayPal expects GAAP earnings per diluted share in the range of $1.65 - $1.69 and non-GAAP earnings per diluted share in the range of $2.38 - $2.40.
  • Estimated non-GAAP amounts above for the twelve months ending December 31, 2018, reflect adjustments of approximately $1.15 - $1.21 billion, primarily representing estimated stock-based compensation expense and related payroll taxes in the range of $895 - $915 million.
  • Estimated GAAP and non-GAAP results include the expected impact of completed acquisitions and acquisitions that have been announced and are expected to close before the end of 2018.
Fourth quarter 2018 revenue and earnings guidance
  • PayPal expects revenue to grow 13 - 15% at current spot rates and 13 - 15% on an FX-neutral basis, to a range of $4.195 - $4.275 billion.
  • PayPal expects GAAP earnings per diluted share in the range of $0.43 - $0.47 and non-GAAP earnings per diluted share in the range of $0.65 - $0.67.
  • Estimated non-GAAP amounts above for the three months ending December 31, 2018, reflect adjustments of approximately $310 - $370 million, primarily representing estimated stock-based compensation expense and related payroll taxes in the range of $210 - $230 million.
  • Estimated GAAP and non-GAAP results include the expected impact of completed acquisitions and acquisitions that have been announced and are expected to close before the end of 2018.
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 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 handles (@PayPal and @PayPalNews), LinkedIn page (, Facebook page (, YouTube channel (, Dan Schulman’s LinkedIn profile (, John Rainey's LinkedIn profile (, Bill Ready's LinkedIn profile ( and Dan Schulman’s Facebook page ( as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information that is posted 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 254 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 financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission (SEC) including: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate, free cash flow and adjusted 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,” 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 fourth quarter and full year 2018, impact and timing of acquisitions, 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 we may not realize the expected benefits of the sale of U.S. consumer credit receivables to Synchrony Financial; 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; the timing and possible outcome of the UK Competition and Markets Authority’s review of the acquisition of iZettle; 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 speaks as of October 18, 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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