In this video, I will talk about PayPal's (PYPL 1.14%) Q4 earnings report and go over some key points management mentioned during the call. You can find the video below, but here are some highlights.
- The company reported revenue of $6.92 billion, up 13% year over year (YOY), and EPS of $1.11, up 4% YOY.
- Venmo ended the third quarter with more than 83 million users.
- PayPal added 9.8 million net new active accounts (NNAs) and ended the quarter with 426 million active accounts.
- Venmo will be available for Amazon, Starbucks, and DoorDash in 2022.
- Management dropped its goal of 750 million active accounts by 2025 to focus on acquiring high-value customers.
- Transitioning away from eBay will put an incremental $600 million of pressure on the company's top line over the next two quarters.
- PayPal ended the quarter with free cash flow of $1.6 billion, up 38%. Over the past four quarters, it generated over $25 billion in revenue and a total payment volume of $1.25 trillion.
- The company will start to disclose monthly active unique users and average revenue per user (ARPU) metrics over the next couple of quarters.
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*Stock prices used were the closing prices of Feb. 4, 2022. The video was published on Feb. 6, 2022.