Here's What Key Metrics Tell Us About Paypal (PYPL) Q1 Earnings
For the quarter ended March 2023, Paypal (PYPL) reported revenue of $7.04 billion, up 8.6% over the same period last year. EPS came in at $1.17, compared to $0.88 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $6.99 billion, representing a surprise of +0.69%. The company delivered an EPS surprise of +6.36%, with the consensus EPS estimate being $1.10.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Paypal performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total payment volume: $354.51 billion compared to the $348.26 billion average estimate based on nine analysts.
Transaction margin: 47.1% compared to the 49.14% average estimate based on nine analysts.
Total take rate: 1.99% compared to the 2.01% average estimate based on eight analysts.
Transaction take rate: 1.8% versus the eight-analyst average estimate of 1.85%.
Active customer accounts: 433 versus 438.11 estimated by seven analysts on average.
Transaction expense rate: 0.93% versus 0.88% estimated by six analysts on average.
Transaction and Credit loss rate: 0.12% compared to the 0.12% average estimate based on six analysts.
Number of payment transactions: 5835 versus 5812.96 estimated by six analysts on average.
Total Payment Volume - International TPV: $122.53 billion versus $121.59 billion estimated by three analysts on average.
Total Payment Volume - US TPV: $231.98 billion compared to the $231.18 billion average estimate based on three analysts.
Net Revenues- Other value added services: $676 million versus $628.76 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +39.4% change.
Net Revenues- Transaction: $6.36 billion versus the 10-analyst average estimate of $6.34 billion. The reported number represents a year-over-year change of +6.1%.
View all Key Company Metrics for Paypal here>>>
Shares of Paypal have remained unchanged over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
