PayPal Reports Strong Q2 Results, Raises Full-Year Guidance
PayPal reported second-quarter results that exceeded expectations with revenue up 5%, total payment volume rising 9% on a currency-neutral basis to $486 billion, and non-GAAP earnings per share (EPS) of $1.38. Growth was driven by Venmo, Braintree, and credit products, although branded checkout volume increased only modestly at 2%. The company raised its full-year outlook for transaction margin dollars to approximately $15.6 billion and non-GAAP EPS to $5.38. PayPal also expects adjusted free cash flow of at least $6 billion in the year ahead and plans roughly $6 billion in share repurchases, having already spent $1.5 billion during Q2 alone. The company remains focused on cost savings initiatives with a target of achieving at least $1.5 billion in gross run-rate savings over two to three years while reinvesting part into growth areas like Venmo monetization and Braintree expansion. The financial services portfolio, including credit and buy now pay later offerings, is expected to grow revenue twice as fast as the overall company this year. Buy now, pay later volume grew 26% in Q2, Pay with Venmo increased by 44%, and Venmo total payment volume rose 14%. PayPal also modernized its Venmo app during the quarter.
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Topics: financial_results guidance_update revenue_growth transaction_volume