PayPal Reports Mixed Q3 2024 Earnings with EPS $1.20, Revenue $7.85B, Raises FY24 EPS Outlook

Oct 29, 2024, 11:10 AM

PayPal Holdings Inc. reported its Q3 2024 earnings, showing mixed results. The company posted an adjusted EPS of $1.20, surpassing the forecast of $1.07 and marking a 22% year-over-year increase. GAAP EPS increased 6% to $0.99. However, net revenue slightly missed estimates, coming in at $7.85 billion against the expected $7.88 billion, though it still represented a 6% year-over-year growth. PayPal also reported an increase in active customer accounts to 432 million, exceeding the forecast of 429.42 million. The company raised its FY24 non-GAAP EPS growth outlook to the high teens from the previous low to mid-teens. GAAP operating income increased 19% to $1.4 billion, and transaction margin dollars increased 8% to $3.7 billion. Payment volume reached $422.64 billion, surpassing the estimate of $421.64 billion. Despite these positive indicators, PayPal's stock initially dropped by nearly 7% in pre-market trading but later recovered to be down around 2%.