PayPal has announced a rise in revenue for the fourth quarter, driven by higher payment volumes across its platform and Venmo. The digital payments company reported a profit of $1.4 billion, or $1.29 a share, compared to $921 million, or 81 cents a share, for the same period in the previous year.
After excluding one-time items, earnings per share came in at $1.48, which exceeded analysts’ expectations. Revenue also saw a robust increase of 8.7% to reach $8.03 billion, surpassing the forecasted revenue of $7.88 billion.
During this period, PayPal recorded a total payment volume of $409.8 billion, marking a 15% growth. Venmo’s total payment volume also saw an upturn of 9%, reaching $68.89 billion.
While the number of active accounts decreased slightly to 426 million from the previous quarter and the year-ago period, PayPal remains optimistic about its future performance. The company’s new Chief Executive, Alex Chriss, and Finance Chief, Jamie Miller, are leading a restructuring plan to boost efficiency and foster growth.
PayPal expects earnings and adjusted earnings per share to increase in the mid-single digits for the first quarter of this year. Additionally, revenue for the same period is forecasted to rise by 6.5% to 7%.
Looking ahead to 2024, PayPal anticipates a decrease in earnings per share to $3.60, compared to $3.84 the previous year. However, adjusted earnings per share are predicted to align with 2023 figures at $5.10.
In line with its ongoing efforts to enhance efficiency, PayPal recently announced plans to reduce its total workforce by 9%. This follows a previous round of layoffs in 2023 totaling 7%. The company aims to implement automation to drive productivity across the organization.
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