PayPal misses Q4 revenue targets
PayPal reported mixed fourth quarter financial results on Wednesday, with revenue that slightly missed estimates. The San Jose, Calif.-based payments company reported a net income of $584 million, or 49 cents per share. Non-GAAP earnings were 69 cents per share on revenue of $4.23 billion.
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Wall Street was looking for earnings of 67 cents per share on revenue of $4.24 billion.
For the year PayPal reported revenue of $15.45 billion and non-GAAP EPS of $2.42.
Elsewhere on the balance sheet, the company ended the quarter with an active account base of 267 million, after adding 13.8 million users in Q4.
PayPal says it processed $164 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed roughly 36.9 payment transactions for each active account.
PayPal's social payments platform Venmo processed more than $19 billion of TPV, up 80 percent over the same period last year. The company said P2P payments volume increased 46 percent to $39 billion, and represented approximately 24 percent of TPV. Mobile payments were also strong, as the company said it processed approximately $67 billion in mobile payment volume during the quarter, representing growth of around 40 percent year over year. eBay Marketplaces volume growth was flat, the company said.
"In 2018 we set new benchmarks for the company for revenue, net new active accounts and engagement across our platform," said Dan Schulman, President and CEO of PayPal. "We launched new products, strengthened existing relationships, and entered into new strategic partnerships with some of the biggest and most influential global brands in technology, retail, and finance," he added.
In terms of outlook, PayPal expects Q1 revenue in the range of $4.08 billion to $4.13 billion, with earnings between 66 cents and 68 cents a share. Analysts are expecting revenue of $4.16 billion with earnings of 68 cents a share.