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1q21 revenue of $6 billion, net profit increased by 1206% year on year From PayPal

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On May 6, 2021, PayPal, a payment service provider, today released its financial results for the first quarter of fiscal year 2021. According to the report, PayPal’s net revenue in the first quarter was US $6.033 billion, up 31% from US $4.618 billion in the same period of last year, with a year-on-year growth of 29% excluding the impact of exchange rate changes; Net profit was $1097 million, up 1206% from $84 million in the same period last year.

PayPal’s first quarter revenue and adjusted diluted earnings per share exceeded Wall Street analysts’ previous expectations, and its second quarter and 2021 full year performance outlook also exceeded expectations, driving its after hours share price up nearly 5%.

Financial performance and operational indicators:

In the quarter ended March 31, PayPal’s net profit was $1097 million, up 1206% from $84 million a year earlier; Diluted earnings per share was $0.92, up 1200% from $0.07 in the same period last year. Excluding some one-time items (not in accordance with U.S. GAAP), PayPal’s adjusted net profit in the first quarter was $1.455 billion, up 85% from $786 million in the same period last year; Adjusted earnings per share was $1.22, up 84% from $0.66 a year earlier, exceeding analysts’ expectations. According to data provided by Yahoo Finance Channel, 38 analysts had expected PayPal’s first quarter earnings per share to reach $1.01 on average.

PayPal’s net revenue in the first quarter was US $6.033 billion, up 31% from US $4.618 billion in the same period last year. Excluding the impact of exchange rate changes, PayPal’s net revenue increased 29% year on year, which also exceeded analysts’ expectations. According to data provided by Yahoo Finance Channel, 36 analysts had expected PayPal’s first quarter revenue to reach $5.9 billion on average.

PayPal’s total payment (TPV) in the first quarter was US $285.447 billion, up 50% from US $190.567 billion in the same period last year. Excluding the impact of exchange rate changes, it increased 46% year on year.

PayPal’s total operating expenses in the first quarter were $4.991 billion, compared with $4.220 billion a year earlier. Among them, the transaction expenditure was US $2.275 billion, compared with us $1.739 billion in the same period of last year; Transaction and loan losses were US $273 million, compared with us $591 million in the same period last year; Customer support and operating expenses were $518 million, compared with $399 million in the same period last year; Sales and marketing expenses were US $602 million, compared with us $371 million in the same period last year; The technology and development expenditure was 741 million US dollars, compared with 605 million US dollars in the same period of last year; General and administrative expenditure was US $524 million, compared with us $486 million in the same period of last year; Restructuring and other expenses were $58 million, compared with $29 million a year earlier.

PayPal’s operating profit in the first quarter was $104.2 billion, compared with $398 million in the same period last year; Operating profit margin was 17.3%, up 865 basis points from 8.6% in the same period last year. Not in accordance with U.S. GAAP, PayPal’s adjusted operating profit in the first quarter was $1.673 billion, compared with $908 million in the same period last year; The adjusted operating profit margin was 27.7%, up 807 basis points from 19.7% in the same period last year.

PayPal’s cash flow from operating activities in the first quarter was $1.758 billion, up 24% from $1.421 billion in the same period last year; Free cash flow was $1537 million, up 27% from $1215 million in the same period last year. As of December 31, 2021, PayPal held $19.1 billion in cash and cash equivalents and non equity investments, with total liabilities of $8.9 billion. The effective tax rate of PayPal in the first quarter was – 25.8%, down 93.9 percentage points from 68.1% in the same period of last year; Not in accordance with U.S. GAAP, PayPal’s effective tax rate in the first quarter was 10.4%, down 2.0 percentage points from 12.4% in the same period last year. PayPal returned $1.3 billion in cash to shareholders in the first quarter by repurchasing about 5.3 million common shares.

PayPal added 14.5 million new active accounts in the first quarter, an increase of 21% over the same period last year, and the total number of active accounts reached 392 million. In the first quarter, PayPal handled 4.4 billion transactions, up 34% from a year earlier. In the past 12 months, PayPal has handled 42.2 transactions per active account, up 7% year on year.

Performance Outlook:

PayPal expects net revenue to reach US $6.25 billion in the second quarter of fiscal 2021, up 19% year-on-year. Excluding the impact of exchange rate changes, PayPal expects a year-on-year growth of 17%, exceeding expectations; Diluted earnings per share are expected to reach $0.76, compared with $1.29 in the same period last year; Earnings per share after adjustment not in accordance with U.S. GAAP is expected to reach $1.12, a year-on-year increase of 5%, also exceeding expectations. The second quarter earnings per share outlook includes an expected net unrealized earnings of about $0.58 per share, which comes from PayPal’s strategic portfolio; The second quarter’s non GAAP results reflect an adjustment of approximately $525 million, including an estimated $400 million in equity incentive payments and related payroll taxes. According to the statistics of Yahoo Finance Channel, 35 analysts had expected PayPal’s second quarter revenue to reach $6.16 billion on average, and 37 analysts had expected PayPal’s second quarter earnings per share to reach $1.10 on average.

PayPal predicts that the company’s net revenue will reach US $25.75 billion in fiscal 2021, a year-on-year increase of 20%. Excluding the impact of exchange rate changes, it will grow by 18.5% year-on-year, slightly exceeding expectations; Diluted earnings per share are expected to reach $3.33; Earnings per share is expected to reach US $4.70, a year-on-year increase of 21%, which is also higher than expected. The earnings per share outlook for fy2021 includes an expected net unrealized earnings of about $1.24 per share, which comes from PayPal’s strategic portfolio; The financial year 2021 results not in accordance with us gaap reflect an adjustment of about US $2.21 billion, including an estimated US $1.7 billion in equity incentive payments and related payroll taxes. According to the statistics of Yahoo Finance Channel, 47 analysts had expected PayPal’s annual revenue to reach $25.71 billion on average, and 47 analysts had expected PayPal’s annual earnings per share to reach $4.57 on average.

PayPal expects the company’s net new active accounts to be between 52 million and 55 million in fiscal 2021, with total payments expected to grow 30% year-on-year.

Changes in share price:

On the same day, PayPal shares fell $2.76, or 1.10%, to $247.40 in regular NASDAQ trading. In subsequent after hours trading up to 4:55 p.m. EST on Wednesday (4:55 a.m. Beijing time on Thursday), PayPal shares rose $12.10, or 4.89%, to $259.50. In the past 52 weeks, PayPal’s top price was $309.14 and its bottom price was $126.12.

Via Sina Technology

More reading: PayPal: 1q20 net profit of $84 million, down 87% compared with the same period last year; PayPal: 2q20 net profit of $1.53 billion, up 86% compared with the same period last year PayPal: 2014 global consumer online shopping behavior and preference survey report statista: 42% of eBay’s revenue is achieved through PayPal time: 2014 global mobile wallet market details it will take time to replace credit card iResearch: 2012 Q1 transaction scale of China’s online payment industry reaches 776 billion, market grows steadily Tencent: all over the world in 2014 Yiguan International: in Q4 of 2010, the transaction scale of China’s Internet online payment reached 360.2 billion yuan. Yiguan International: in Q1 of 2011, the transaction scale of China’s third-party Internet online payment market reached 397.3 billion yuan. IResearch: Six inventory of China’s third-party payment industry in 2011

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