Paypal Stock (PYPL) CEO
Paypal Stock (PYPL) CEO on 19% Revenue Growth in 2021 on Q4 2020 and Full Year Earnings Call
Q4’20: Outstanding finish to a record year
• Total Payment Volume (TPV) of $277 billion, growing 39%, and 36% on an FX-neutral basis (FXN); revenue of $6.12 billion, growing 23% on a spot and FXN basis
• GAAP EPS of $1.32, up 208% and non-GAAP EPS of $1.08, up 29%
• Added 16.0 million Net New Active Accounts (NNAs)
FY’20: Strongest performance in PayPal’s history
• TPV of $936 billion, growing 31% on a spot and FXN basis; revenue of $21.45 billion, growing 21%, and 22% FXN
• GAAP EPS of $3.54, up 71% and non-GAAP EPS of $3.88, up 31%
• ~$5.9 billion in Operating Cash Flow and ~$5.0 billion in Free Cash Flow
• Added 72.7 million NNAs
FY’21: Expect ongoing momentum with strong TPV growth and NNAs
• TPV expected to grow in the high 20’s on a percentage basis for the year
• Revenue expected to grow ~19% at current spot rates and ~17% on an FXN basis, to approximately ~$25.5 billion
• GAAP EPS is expected to be ~$3.20, compared to $3.54 in FY’20, which benefitted from ~$1.24 in net gains on strategic investments; non-GAAP EPS is expected to grow ~17%
• ~50 million NNAs expected to be added to PayPal’s platform in FY’21
Q4’20: Sustained revenue and earnings growth
• Revenue of $6.12 billion; growing 23% on a spot and FXN basis.
• GAAP operating margin of 15.7%, declining 36 basis points;
non-GAAP operating margin of 24.7%, expanding 104 basis points.
• GAAP EPS of $1.32, up 208%; non-GAAP EPS of $1.08, up 29%; GAAP EPS includes a net gain of $0.60 on strategic investments.
FY’20: Revenue and earnings acceleration
• Revenue of $21.45 billion; growing 21% on a spot basis and 22% FXN.
• GAAP operating margin of 15.3%, in-line with the prior year;
non-GAAP operating margin of 25.1%, expanding 187 basis points.
• GAAP EPS of $3.54 up 71%; non-GAAP EPS of $3.88, up 31%; GAAP EPS includes a net gain of ~$1.24 on strategic investments.
Q4’20: Continued momentum with double-digit account growth
• 16.0 million NNAs added, bringing total active accounts to 377 million, up 24%.
• 4.4 billion payment transactions, up 27%.
• $277 billion in TPV, up 39% on a spot basis and 36% FXN.
• Merchant Services volume grew 42% on a spot basis and 40% FXN, and represented 94% of TPV.
• Venmo processed approximately $47 billion in TPV, growing 60%.
FY’20: Record growth in NNAs and TPV
• 72.7 million NNAs added, bringing total active accounts to 377 million accounts, up 24%.
• 15.4 billion payment transactions, up 25%.
• $936 billion in TPV, up 31% on a spot and FXN basis.
• Merchant Services volume grew 33% on a spot and FXN basis.
• Venmo processed approximately $159 billion in TPV, growing 56%.
• 40.9 payment transactions per active account on a trailing twelve months basis, growing 1%. Adjusting for the acquisition of Honey in January 2020, 42.7 payment transactions per active account on a trailing twelve months basis, up 5%.
Balance Sheet and Liquidity
Strong balance sheet growth and cash-flow generation
• PayPal’s cash, cash equivalents, and investments totaled $19.2 billion as of December 31, 2020.
• PayPal’s debt totaled $8.9 billion as of December 31, 2020.
• In Q4’20, PayPal generated cash flow from operations of $1.35 billion, increasing 46%, and free cash flow of $1.12 billion, increasing 50%. In FY’20, PayPal has generated cash flow from operations of $5.85 billion, growing 44%, and free cash flow of $4.99 billion, growing 48%.
• In Q4’20, PayPal repurchased approximately 1.3 million shares of common stock, returning $265 million to stockholders.
Strategic Initiatives and Business Updates
Advancing our digital wallet and merchant value proposition
• PayPal introduced a new Cash a Check feature, enabling Venmo users to access a quick, easy and secure way to cash paper checks. The new feature allows select Venmo customers to cash checks directly from the Venmo app.
• PayPal launched QR code payments in iZettle’s point of sale app, allowing small businesses across the UK - from retailers to florists and cafes - to accept safe and secure touch-free payments from customers.
• Xoom, PayPal’s money transfer service, introduced secure and convenient money transfers directly to mobile wallets in 12 key markets across Africa with a focus on the underbanked segment - with plans to include more markets in 2021.
• CVS Pharmacy implemented touch-free checkout using PayPal and Venmo QR codes at 8,200 standalone retail locations.
• Approximately 600,000 merchants now accept PayPal and Venmo QR codes.
As you have heard PayPal
As you have heard PayPal has acquired Honey for 4 Billion dollars and in this video I will go over what the takeover means for most of the consumers using Honey and how will PayPal change that. PayPal has been known to lose market share among other payment processors purchasing Honey might be one of their ways of taking back some of the control. Honestly Honey can easily spiral down as the only thing that’s holding them is the extension. PayPal might be taking a risk but let me know about the PayPal buying Honey for $4 Billion and if you think its worth it and why is PayPal buying Honey for. We also learn how and what does Honey Science store in their User Data which will benefit PayPal the most.
Again, thanks for watching my latest video PayPal’s Honey,
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Excellent project i will invest in the
hey very interesting but the truth is that paypal has lost a lot of its market due to its account blocking policies many people lose their money for this reason that is why they have chosen to use other methods but well we will see that it will come out of all this I hope it is good
This is essential and extremely important for accounts that use, such as paypal
I am going to try this system as soon as possible
good review, everything is clear, thanks