PayPal reported its third-quarter 2024 earnings on October 29, 2024, with net revenues increasing approximately 6% year-over-year to $7.42 billion, which missed analysts' expectations. The company's net income was $1.01 billion, or $0.99 per share, with adjusted earnings per share beating estimates.
Total Payment Volume (TPV) rose 9% from a year earlier to $422.6 billion, slightly above analyst estimates. The operating margin was 18.8%, surpassing StreetAccount's estimate of 17.4%, and transaction margin, a key profitability metric, increased to 46.6% from 45.4%.
For the fourth quarter, PayPal provided guidance for 'low single-digit growth' in revenue, which was below analysts' expectations of 5.4% growth. The company expects adjusted earnings per share of $1.07 to $1.11, aligning with average analyst estimates. This cautious outlook reflects PayPal's 'price-to-value strategy and prioritization of profitable growth'.
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