Full caveat: I have not read through the conference call and only glanced at numbers but, once again, looks like a really solid quarter. Shares are up about 3% in AH trading. From Investor’s Business Daily:
PayPal Holdings (PYPL) reported adjusted first-quarter profit and revenue that topped expectations and forecast June quarter sales above estimates, sending shares in the digital payment processor up in late trading.
PayPal said Wednesday that adjusted first-quarter earnings were 57 cents a share, up 29% from a year ago, with revenue rising 24% to $3.69 billion, topping analyst estimates. A year earlier, PayPal earned 44 cents a share on sales of $2.98 billion.
Analysts expected PayPal to report earnings of 54 cents on sales of $3.59 billion for the period ended March 30.
From https://www.investors.com/news/technology/paypal-holdings-ea…
From the earnings release:
“After a strong 2017, we entered 2018 with continued momentum. Our partner relationships in the U.S. and across the globe continue to grow and flourish. As the digital economy gathers speed, we are excited to provide new and innovative capabilities to better serve our consumer and merchant customers,” said Dan Schulman, President and CEO of PayPal.
…
Driven by strong mobile engagement on our platform, PayPal processed approximately $49 billion in mobile payment volume in the first quarter, representing approximately 52% growth year over year. One Touch, PayPal’s innovative checkout experience, ended the first quarter with 92 million consumers opted in. At the end of the first quarter, 8.6 million merchants offered One Touch.
See the full release at https://investor.paypal-corp.com/releasedetail.cfm?ReleaseID…
Here’s a look at the numbers:
Revenues (millions) Q1 Q2 Q3 Q4
2014 1874 1983 1971 2193
2015 2137 2297 2258 2556
2016 2544 2650 2667 2981
2017 2975 3136 3239 3744
2018 3685
EPS (non-GAAP) Q1 Q2 Q3 Q4
2014 0.27 0.28 0.24 0.28
2015 0.29 0.32 0.31 0.36
2016 0.37 0.36 0.35 0.42
2017 0.44 0.46 0.46 0.55
2018 0.57
2018 Q1 Earnings (Current)
Revenue Growth (billions)
2017 Q1 TTM Revenue = 11.273
2018 Q1 TTM Revenue = 13.804
YOY Revenue Growth = 22.45%, previous quarter 20.77%
EPS Growth (non-GAAP)
2017 Q1 TTM EPS = 1.57
2018 Q1 TTM EPS = 2.04
YOY EPS Growth = 29.9%, previous quarter 27.33%
Non-GAAP P/E (Check Current Price) = 74.00/2.04 = 36.27
Trailing 1YPEG = 36.27/29.9 = 1.21
PayPal Metrics
Here is a look at some of PayPal’s other important metrics growth:
of active accounts: 237M, +15% YOY
Payment transactions: 2.214B, +25% YOY
Payment transactions per active account: 34.7, +8% YOY
Total Payment Volume (TPV): $132.36B, +32% YOY
Mobile Payment Volume: $49B, +52% YOY
Transaction margin: 57.1%
Operating margin (non-GAAP): 22.5%
Venmo processed $12B TPV, +80% YOY
Cash and cash equivalents: $7.8B
Short term borrowings: $3.0B
Repurchased 23.6M shares, approx. $1.8B
One Touch: 92M consumers, 8.6M merchants participating
And here’s a look at the historic growth of those numbers:
# of Active Accounts (millions) Q1 Q2 Q3 Q4
2014 148 152 157 162
2015 165 169 173 179
2016 184 188 192 197
2017 203 210 218 227
2018 237
Payment Transactions (millions) Q1 Q2 Q3 Q4
2014 918 930 972 1144
2015 1123 1161 1216 1428
2016 1414 1448 1512 1755
2017 1771 1817 1941 2240
2018 2214
Transactions Per Active Account Q1 Q2 Q3 Q4
2014 23 23 24 24.5
2015 25.2 26.1 26.9 27.5
2016 28.4 29.4 30.2 31.1
2017 31.7 32.3 32.8 33.6
2018 34.7
TPV (billions) Q1 Q2 Q3 Q4
2014 53.676 56.736 58.184 66.039
2015 63.021 67.482 69.738 81.523
2016 81.056 86.208 87.403 99.348
2017 99.327 106.44 114.05 131.45
2018 132.36
Transaction Margin (%) Q1 Q2 Q3 Q4
2014 65.0 65.7 63.1 63.5
2015 64.2 63.8 62.3 61.1
2016 60.4 59.8 58.7 57.7
2017 56.7 56.3 54.8 65.1
2018 57.1
Operating Margin (%)(non-GAAP) Q1 Q2 Q3 Q4
2014 18.4 20.4
2015 22.1 22.6 19.9 20.8
2016 21.1 19.9 18.4 21.1
2017 21.6 21.0 20.0 22.0
2018 22.5
Will be back over the weekend sometime after reading through the conference call. Any other thoughts/comments/concerns?
Matt
Long PYPL
MasterCard (MA), PayPal (PYPL), Skechers (SKX) and Square (SQ) Ticker Guide
See all my holdings at http://my.fool.com/profile/TMFCochrane/info.aspx