PayPal Holdings, Inc. (NASDAQ:PYPL) Q3 2019 Earnings Conference Call - Final Transcript
Oct 23, 2019 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to PayPal's Third Quarter 2019 Earnings Conference Call. [Operator Instructions] After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]
I would now like to introduce your host for today's call Ms. Gabrielle Rabinovitch, Head of Investor Relations. Please go ahead.
Thank you, Andrew. Good afternoon and thank you for joining us. Welcome to PayPal Holdings earnings conference call for third quarter 2019. Joining me today on the call are Dan Schulman, our President and CEO and John Rainey, our Chief Financial Officer and EVP Global Customer Operations. We're providing a slide presentation to accompany our commentary. This conference call is also being webcast and both the presentation and call are available through the Investor Relations section of our website.
We will discuss some non-GAAP measures in talking about our company's performance. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in the presentation accompanying this call.
In addition, management will make forward-looking statements that are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include our guidance for the fourth quarter and full year 2019, our preliminary outlook for 2020, our medium-term outlook and the impact of our acquisitions. Our actual results may differ materially from these statements. You can find more information about risks, uncertainties and other factors that could affect our results in our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC and available on the Investor Relations section of our website. You should not rely on any forward-looking statements. All information in this presentation is as of today's date, October 23, 2019. We expressly disclaim any obligation to update the information.
With that, let me turn the call over to Dan.
Thank you, Gabrielle and thanks everyone for joining us on today's call. I'm pleased to report that PayPal had a very strong quarter across all of our key metrics. Revenues grew by 19% on an FX-neutral and spot basis to $4.38 billion. Our revenue growth was driven by strong transaction and TPV volumes. For the first time ever, we processed over 1 billion transactions per month in the quarter, up 25% year-over-year to 3.1 billion transactions. TPV growth accelerated 80 basis points from last quarter and was up 27% on an FX-neutral basis to $179 billion.
TPV excluding eBay grew by 31%, up 240 basis points from Q3, 2018. EBay TPV declined by 3% and now represents just 8% of our total TPV, down approximately 300 basis points from Q3 last year. As of now, our best estimate is that eBay will be approximately 6% of our total TPV at the end of the operating agreement in July 2020.
Excluding unrealized losses associated discretely with our investments in MercadoLibre and Uber, we delivered a very strong $0.79 of non-GAAP EPS as compared to our guidance on a similar basis of $0.69 to $0.71. Excluding the