สรุปสาระสำคัญ
08 February 2024
PayPal Holdings, Inc.
PYPL
Bloomberg PYPL.US
Reuters PYPL.OQ
PayPal surpasses Q4 profit forecasts, yet projects stable growth ahead.
Earnings Result
PayPal Holdings, Inc. has reported positive growth in its Q4 and FY 2023 financial results compared to the previous quarter. In Q4 2023, the company saw a 15% year-over-year growth in total payment volume, a 9% increase in GAAP net revenues, and a significant rise in operating income and net income. Earnings per diluted share also experienced a substantial increase. For the full year 2023, PayPal reported a 13% year-over-year growth in total payment volume, an 8% increase in GAAP net revenues, and significant rises in operating income, net income, and earnings per diluted share. These results highlight the company's strong growth and profitability, indicating a positive outlook for its future performance.
Net profit growth QoQ and YoY
The net profit growth for Q4 2023 compared to Q4 2022 is 52% YoY. The net profit growth for FY 2023 compared to FY 2022 is 76% YoY and also beating market estimate.
Revenue beat expectation due to strong total payment volume
In Q4 2023, revenue increased by 9% to $8 billion, surpassing expectations of $7.87 billion. Total payment volume rose by 15% in Q4 2023 compared to Q4 2022, and by 13% for FY 2023 compared to FY 2022. Each business segment demonstrated positive growth in total payment volume, net revenues, operating income, net income, and earnings per diluted share, although there were variations in cash flow and adjusted free cash flow.
Operating margin
The operating margin for the company increased in both Q4'23 and FY'23. In Q4'23, the GAAP operating margin expanded by 468 basis points to 21.5%, while the non-GAAP operating margin expanded by 39 basis points to 23.3%. In FY'23, the GAAP operating margin expanded by 295 basis points to 16.9%, and the non-GAAP operating margin expanded by 110 basis points to 22.4%. This indicates improved profitability and efficiency in the company's operations.
Business Outlook in 2024
PayPal expects unchanged adjusted earnings of $5.10 a share for 2024 and plans a 9% workforce reduction to increase profits, as stated by CEO Alex Chriss. The company aims for efficiency improvements and plans a $5 billion stock buyback.
Risks and concerns
The current risk that the company is facing includes legal and regulatory proceedings, reliance on third parties, damage to reputation or brands, fluctuations in foreign currency exchange rates, changes in tax rates, and exposure to additional tax liabilities. The company's plan should involve managing these risks effectively, upgrading technology systems and infrastructure, and attracting and retaining highly talented employees.
PayPal Holdings, Inc. has reported positive growth in its Q4 and FY 2023 financial results compared to the previous quarter. In Q4 2023, the company saw a 15% year-over-year growth in total payment volume, a 9% increase in GAAP net revenues, and a significant rise in operating income and net income. Earnings per diluted share also experienced a substantial increase. For the full year 2023, PayPal reported a 13% year-over-year growth in total payment volume, an 8% increase in GAAP net revenues, and significant rises in operating income, net income, and earnings per diluted share. These results highlight the company's strong growth and profitability, indicating a positive outlook for its future performance.
Net profit growth QoQ and YoY
The net profit growth for Q4 2023 compared to Q4 2022 is 52% YoY. The net profit growth for FY 2023 compared to FY 2022 is 76% YoY and also beating market estimate.
Revenue beat expectation due to strong total payment volume
In Q4 2023, revenue increased by 9% to $8 billion, surpassing expectations of $7.87 billion. Total payment volume rose by 15% in Q4 2023 compared to Q4 2022, and by 13% for FY 2023 compared to FY 2022. Each business segment demonstrated positive growth in total payment volume, net revenues, operating income, net income, and earnings per diluted share, although there were variations in cash flow and adjusted free cash flow.
Operating margin
The operating margin for the company increased in both Q4'23 and FY'23. In Q4'23, the GAAP operating margin expanded by 468 basis points to 21.5%, while the non-GAAP operating margin expanded by 39 basis points to 23.3%. In FY'23, the GAAP operating margin expanded by 295 basis points to 16.9%, and the non-GAAP operating margin expanded by 110 basis points to 22.4%. This indicates improved profitability and efficiency in the company's operations.
Business Outlook in 2024
PayPal expects unchanged adjusted earnings of $5.10 a share for 2024 and plans a 9% workforce reduction to increase profits, as stated by CEO Alex Chriss. The company aims for efficiency improvements and plans a $5 billion stock buyback.
Risks and concerns
The current risk that the company is facing includes legal and regulatory proceedings, reliance on third parties, damage to reputation or brands, fluctuations in foreign currency exchange rates, changes in tax rates, and exposure to additional tax liabilities. The company's plan should involve managing these risks effectively, upgrading technology systems and infrastructure, and attracting and retaining highly talented employees.
| Revenue - %Chg YoY | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24E |
|---|---|---|---|---|---|
| United States | 13.0% | 9.0% | 7.0% | 8.0% | 5.2% |
| International | 2.9% | 4.6% | 10.2% | 9.7% | 10.9% |
| Sentiment | 1Q23 | 2Q23 | 3Q23 | 4Q23 |
|---|---|---|---|---|
| net profit | Positive | Positive | Negative | Positive |
| margin | Positive | Positive | Neutral | Positive |
| revenue | Neutral | Positive | Positive | Positive |
| Stock data | |
|---|---|
| Market Cap (USD Million) | 67.79 |
| Beta | 1.72 |
| Last close | 63.24 |
| 12-m Low / High | 50.3 / 82.9 |
| Target price | 70.00 |
| Return Potential | 10.7 % |
| % of Buy / Sell rating | 46.0 % / 4.0 % |
| Valuation data | 12m Forward | 5-Yr Average |
|---|---|---|
| P/E | 11.68 | 58.04 |
| P/B | 2.74 | 8.35 |
| P/S | 2.12 | 7.62 |
| EV/EBITDA | 8.89 | 14.72 |
| Dividend Yield | 0.0 % |
PayPal Holdings, Inc.
PayPal Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides technology platform that enables digital and mobile payments on behalf of consumers and merchants. The Company offers online payment solutions. PayPal Holdings serves customers worldwide.
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