PayPal's revenue in Q2 increased by 9% to over $6.8 billion! Active users reached 429 million!

It is learned that after releasing better-than-expected Q2 quarterly earnings, PayPal's stock price rose 13% in extended trading on August 2. However, affected by economic headwinds, PayPal's stock price has fallen by more than 52% so far. The following is a summary of PayPal's second-quarter earnings:

• Revenue: $6.81 billion, up 9% year-over-year; Refinitiv analysts expected $6.79 billion and $6.24 billion in the same period last year;
• Earnings: Adjusted earnings per share of 93 cents, compared with 86 cents per share expected by Refinitiv analysts.
• Net loss of $341 million, compared with a profit of $1.18 billion in the same period last year;
• Active users: 429 million, up 6% year-over-year, lower than StreetAccount's forecast of 432.8 million.
• Payment amount: $339.791 billion, up 9% from $310.992 billion in the same period last year.

PayPal expects to reduce costs by $900 million this year. Four years after launching a $10 billion plan, PayPal announced a new $15 billion stock buyback program. In addition, it is retreating from some areas and exploring interoperability between PayPal and its Venmo payment app.

PayPal added approximately 400,000 new active accounts in the second quarter, mainly due to the growth of Venmo. PayPal reported 2.4 million new accounts in the first quarter, and the total number of new active accounts in the first half of 2022 was about 2.8 million. PayPal plans to add 10 million new active accounts in 2022.

In its earnings presentation, PayPal said it had signed an information-sharing agreement with Elliott Management on value creation. Elliott Managing Partner Jesse Cohn said: "PayPal has strong competitiveness in its payment business. As one of PayPal's largest investors, Elliott, with an investment of approximately $2 billion, firmly believes in PayPal's value proposition." The news came a day after Elliott said it had become the largest investor in social network operator Pinterest.

PayPal expects adjusted earnings per share of $3.87 to $3.97 in 2022, up from the $3.81 to $3.93 range it forecast in April. Analysts at Refinitiv had expected $3.82 per share.

Editor ✎Estella/

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