In This Article:
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Transaction Margin Growth: 8% growth excluding last year's leap day.
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Non-GAAP Earnings Per Share: Increased 23% year-over-year.
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Total Active Accounts: Grew by 2% in the quarter.
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Branded Experiences TPV: Grew 8% excluding last year's leap day.
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Venmo Revenue Growth: 20% increase driven by online and in-store payments.
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Free Cash Flow: $1 billion generated in the first quarter.
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Non-GAAP Operating Margin: Increased to 20.7%, up 260 basis points.
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Share Repurchases: $1.5 billion completed in the quarter.
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Cash and Investments: Ended the quarter with $15.8 billion.
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Debt: $12.6 billion in debt at the end of the quarter.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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PayPal Holdings Inc (NASDAQ:PYPL) delivered its fifth consecutive quarter of profitable growth, with transaction margin dollars growing by 8%, excluding the impact from last year's leap day.
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Non-GAAP earnings per share increased 23% year-over-year, reflecting strong profitability.
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Branded experiences TPV grew 8% in Q1, highlighting the success of omnichannel initiatives and increased consumer engagement.
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Venmo achieved 20% revenue growth, driven by increased merchant availability and consumer adoption.
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PayPal Holdings Inc (NASDAQ:PYPL) is expanding its offerings with innovations like a dynamic smart wallet and agentic commerce, positioning itself as a strategic commerce partner for merchants.
Negative Points
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Despite a strong start to the year, PayPal Holdings Inc (NASDAQ:PYPL) is maintaining its full-year guidance due to macroeconomic uncertainties.
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Transaction take rate declined by 6 basis points to 1.68%, influenced by product and merchant mix.
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The PSP volume growth slowed to 2% compared to 6% in the previous quarter, as the company prioritizes profitable growth over volume.
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There is potential impact from geopolitical factors, such as tariffs, which could affect global economic activity and consumer spending.
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The competitive landscape in key markets like the UK remains challenging, requiring continued investment in product improvements and marketing.
Q & A Highlights
Q: How is the macroeconomic environment affecting PayPal's priorities, particularly regarding consumer and SMB health? A: Alex Chriss, CEO, stated that while they are closely monitoring the macroeconomic environment, they have not reordered priorities. PayPal sees opportunities in Buy Now, Pay Later (BNPL) and Venmo, emphasizing rewarding consumer payment methods. Jamie Miller, CFO, added that core credit portfolios show stable or improving charge-off rates, indicating healthy consumer and merchant conditions.