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.
For the full insights, do watch the video below, consider subscribing, and click the special offer link.
*Stock prices used were the closing prices of Feb. 4, 2022. The video was published on Feb. 6, 2022.
