Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
Payment solutions provider $PYPL posted 1Q16 net income of $365MM or $0.30 per diluted share vs. $255MM or $0.21 per diluted share in 1Q15. Non-GAAP diluted EPS was $0.37 vs. $0.29 in 1Q15. Net revenue rose 19% to $2.54Bil vs. $2.14Bil in 1Q15, helped by increased revenues of 31% in US.
$PYPL said it has some modest assumptions about monetizing Venmo going into 2018. The company is encouraged by the launch of Pay with Venmo with 2MM merchants currently and will continue to expand this. The 2018 guidance of approx. 20% revenue growth and 20% earnings growth includes some assumptions about Venmo.
During 3Q17, $PYPL’s merchant services volume grew 34% on a currency neutral basis to $98.6Bil. This represented 86.5% of total volume. Volume associated with eBay represented 13.5% of the total compared to 16% for 3Q16. P2P volume, which is a component of merchant services, grew 47% to $24Bil and represented about 21% of total payment volume.
$PYPL recently announced that Venmo's broad base of customers will now be able to pay with Venmo at over 2MM PayPal merchants across the United States. This is an important milestone for the company as it adds differentiated functionality for Venmo consumers and begins to monetize Venmo.
During 3Q17, $PYPL 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. $PYPL also announced the expansion of its partnership with $MA into Canada, Europe, Latin America and the Caribbean and the Middle East and Africa. $PYPL acquired Swift Financial in 3Q17.
For FY17, $PYPL expects revenue to grow 19-20% to $12.92-12.98Bil. GAAP EPS is expected to be $1.34-1.36 and adjusted EPS is expected to be $1.86-1.88. For 4Q17, $PYPL expects revenue to grow 20-22% to $3.57-3.63Bil. GAAP EPS is expected to be $0.37-0.39 and adjusted EPS is expected to be $0.50-0.52.
$PYPL reported an 18% increase in 3Q17 earnings. Net income was $380MM or $0.31 per share compared to $323MM or $0.27 per share in 3Q16. GAAP EPS grew 17% during 3Q17. Adjusted net income was $560MM or $0.46 per share in 3Q17. Net revenues grew 21% to $3.23Bil versus last year.
$PYPL has appointed Rodney C. Adkins to its BoD. Mr. Adkins will serve on $PYPL’s Audit, Risk and Compliance Committee. His appointment was effective September 26, 2017. Mr. Adkins is President of 3RAM Group LLC, a privately-held company specializing in capital investments, business consulting services and property management.
$PYPL announced the launch of the new PayPal Cashback Mastercard issued by Synchrony Bank. It is designed exclusively for PayPal members, offers cardholders 2% cash back every day, on every purchase, wherever Mastercard is accepted. There is no annual cash back limit, minimum redemption amount, restrictions on spending cash rewards or expiration.
$PYPL and $AAPL have expanded their iTunes integration enabling customers to buy games, music, movies and in-app purchases with PayPal, on their iPhones and iPads in the Apple App Store, iBooks, Apple Music and iTunes stores in 12 countries including the US, Australia and parts of Europe. This integration is expected to expand in the coming months.
$PYPL's open technology platform has enabled expanded partnerships with $GOOG, $AAPL, $FB and Samsung. In April, $GOOG announced an expansion of its partnership to make it easy for consumers to use PayPal as a payment method in Android Pay in-store, in app and online. $FB also announced additional commerce experiences with PayPal on Messenger.
In 2Q17, $PYPL gained 6.5MM net new active accounts, the largest organic quarterly gain in the past three years and up over 80% from a year ago. $PYPL ended 2Q17 with 210MM active accounts including 17MM merchant accounts, growing its base at 12% YoY. The company expects net new active additions to exceed 25MM for 2017.
$PYPL announced a partnership with $BAC which will enable Bank of America customers to transact with PayPal in stores and seamlessly link their Bank of America cards into PayPal. Bank of America cards will be tokenized for customers wishing to use PayPal for in-store purchases, across MasterCard and Visa portfolios in the US.
$PYPL processed $106Bil in total payments volume (TPV) in 2Q17. Approx. 34% of payment volume came through a mobile device and mobile payment volume increased 50% over 2Q16 to approx. $36Bil. Venmo, the company's social payments platform, processed $8Bil of TPV, growing 103% over 2Q16.
$PYPL reported a 27% increase in 2Q17 earnings. Net income grew to $411MM or $0.34 per share from $323MM or $0.27 per share in 2Q16. Adjusted net income was $554MM or $0.46 per share in 2Q17. Net revenues grew 18% to $3.13Bil versus last year.