PayPal has reported better-than-expected fourth-quarter earnings and revenue, exceeding analyst estimates. The company also issued guidance that topped expectations.
The company’s total payment volume rose 10% in the quarter from a year earlier, driven by Venmo’s growth. PayPal’s earnings per share were $1.19, adjusted for non-cash items, compared to $1.12 expected by analysts.
In its first-quarter outlook, PayPal expects adjusted earnings per share of $1.15 to $1.17, beating the average analyst estimate of $1.13. The company also announced a new $15 billion share buyback program and plans to repurchase around $6 billion in 2025.
Revenue increased about 4% in the quarter from last year, with total payment volume coming in at $437.8 billion, slightly below estimates. However, PayPal’s transaction margin rose to 47%, driven by its acquisition of Braintree and growth in Venmo’s business.
The company’s stock is up 43% in the past year, as CEO Alex Chriss focuses on prioritizing profitable growth and better monetizing key acquisitions like Braintree and payments app Venmo. Chriss has emphasized the importance of Venmo’s debit card and Pay With Venmo, which have seen significant growth in monthly active accounts.
In 2024, PayPal launched two new products: Fastlane, a one-click payment option for online sales, and PayPal Everywhere, which offers 5% cash back for using a PayPal debit card within the mobile app. These initiatives are expected to drive growth and improve profitability.
“The improvements we made to branded checkout, peer-to-peer, and Venmo, plus the progress we made on our price-to-value strategy, are beginning to show up in our results,” said Chriss in the earnings statement.
Source: https://www.cnbc.com/2025/02/04/paypal-pypl-q4-earnings.html