We’ll see how tomorrow goes, but shares were up +5% in AH trading. EPS, revenue up double digit percentages YOY and beat expectations.
PayPal, the payments company, posted first-quarter earnings results after the bell on Wednesday. After surpassing analyst estimates with an adjusted 44 cents per share, compared to the 41 cents that many were predicting, shares rose 7 percent in initial after-hours trading. Net income was $384 million, up 5 percent from last year.
Revenue was also slightly better than expected, coming in at $2.975 billion, when compared to the $2.94 billion that analysts surveyed by FactSet were expecting. That’s growth of 17 percent year-over-year.
PayPal also announced a $5 billion share repurchase program.
Read more at https://techcrunch.com/2017/04/26/paypal-shares-up-7-after-b…
Here’s what CEO Dan Schulman said in the earnings press release:
“With another quarter of strong financial results, we continue to deliver on our vision to democratize financial services for our consumers and drive the global transition from cash to digital payments,” said Dan Schulman, President and CEO of PayPal. “We are deepening our merchant offerings and relationships, and expanding our network of strategic partnerships to make PayPal more available in new contexts and new markets.”
Read the entire press release at https://investor.paypal-corp.com/releasedetail.cfm?ReleaseID…
Here’s a look at the company’s earnings and revenue growth:
Revenues (millions) Q1 Q2 Q3 Q4
2014 1874 1983 1971 2193
2015 2137 2297 2258 2556
2016 2544 2650 2667 2981
2017 2975
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
Revenue Growth (billions)
2016 Q1 TTM Revenue = 9.655
2017 Q1 TTM Revenue = 11.273
YOY Revenue Growth = 16.75%, previous quarter 17.2%
EPS Growth (non-GAAP)
2016 Q1 TTM EPS = 1.36
2017 Q1 TTM EPS = 1.57
YOY EPS Growth = 15.4%, previous quarter 17.2%
Non-GAAP P/E (Check Current Price) = 44.41/1.57 = 28.29
1YPEG = 28.29/15.4 = 1.83
And here’s a look at some of the other metrics we follow:
of active accounts: 203M, +11% YOY
Payment transactions: 1.73B, +23% YOY
Payment transactions per active account: 31.7, +12% YOY
Total Payment Volume (TPV): 99.33B, +23% YOY
Transaction margin: 56.7%
Operating margin (non-GAAP): 21.6%
Venmo processed $6.8B TPV, +112% YOY
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
Payment Transactions (millions) Q1 Q2 Q3 Q4
2014 918 930 972 1144
2015 1123 1161 1216 1428
2016 1414 1448 1512 1755
2017 1732
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
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
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
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
I will be going through the conference call soon. Hopefully tomorrow.
Matt
Long PYPL
MasterCard (MA), Nestle (NSRGY), PayPal (PYPL), and Verizon (VZ) Ticker Guide
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx