PYPL beats and raises 2024 guidance, margins improve

“PayPal delivered a strong second quarter and first half, and I’m confident we’re on the right track. We delivered our best transaction margin dollar growth since 2021, and we are making steady progress on our strategic transformation, while investing in innovation and operating more efficiently.
Given the strength of our business, we are raising our 2024 guidance and increasing share repurchases. We are operating from a position of strength, delivering for our customers, and focusing on long-term profitable growth.”

Alex Chriss
President and CEO

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PayPal (PYPL) 2Q'24:

Financial Performance
– Net Revenues: Up 8% to $7.9 billion; 9% FXN.
– Transaction Margin Dollars: Increased 8% to $3.6 billion.
– GAAP Operating Income: Rose 17% to $1.3 billion; Non-GAAP operating income up 24% to $1.5 billion.
– Operating Margin: GAAP expanded 126 basis points to 16.8%; Non-GAAP expanded 231 basis points to 18.5%.
– Earnings Per Share (EPS): GAAP EPS increased 17% to $1.08; Non-GAAP EPS increased 36% to $1.19.

Margins was a big concern for investors as of late ^

Operational Metrics:
– Total Payment Volume: Increased 11% to $416.8 billion; 11% FXN.
– Payment Transactions: Up 8% to 6.6 billion.
– Payment Transactions per Active Account: Increased 11% to 60.9 over the trailing 12 months.
– Active Accounts: Slight decrease of 0.4% to 429 million; Sequential increase of 0.4% (1.8 million new accounts).

Cash Flow:
– Operating Cash Flow: $1.5 billion.
– Free Cash Flow: $1.4 billion.
– Adjusted Free Cash Flow: $1.1 billion (excluding BNPL receivables impact).

Balance Sheet and Liquidity:
– Cash and Investments: Totaled $18.3 billion as of June 30, 2024.
– Debt:Totaled $12.2 billion as of June 30, 2024.
– Shareholder Returns: Returned $1.5 billion by repurchasing 24 million shares; $5.0 billion returned over the trailing 12 months by repurchasing 82 million shares.