PayPal reports mixed Q2, cuts 2019 revenue guidance

PayPal said the change in its 2019 revenue forecast is due to delays in product integrations and pricing changes as well as currency pressures.

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PayPal delivered mixed second-quarter financial results on Wednesday, with its revenue numbers clocking in just below analyst estimates. Additionally, PayPal's Q3 revenue guidance fell short of consensus, and the company also lowered its revenue guidance for fiscal 2019.

The San Jose, Calif.-based payments company reported a net income of $823 million, or 69 cents per share. Non-GAAP earnings were 86 cents per share on revenue of $4.31 billion. Wall Street was looking for earnings of 74 cents per share on revenue of $4.33 billion.

In terms of outlook, analysts are expecting Q3 revenue of $4.44 billion with earnings of 70 cents a share. PayPal responded with Q3 revenue guidance in the range of $4.33 billion to $4.38 billion, with earnings between 69 cents and 71 cents a share. 

For the year, PayPal said it expects revenue in the range of $17.60 billion to $17.80 billion, down from its previous range of $17.85 billion to $18.10 billion. Wall Street is expecting $17.98 in revenue. PayPal said the change is due to delays in product integrations and pricing changes as well as currency pressures.

PayPal's shares fell more than 6% after hours.

Elsewhere on the balance sheet, the company grew its active account base by 9 million during Q2, bringing its user total to 286 million, up 17%. Meanwhile, PayPal says it processed $172 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed 3 billion payment transactions, or roughly 39 payment transactions for each active account.

PayPal's social payments platform Venmo processed more than $24 billion of TPV, up 70% over the same period last year. The company said P2P payments volume increased by 40% to $46 billion and represented approximately 27% of TPV. 

"PayPal delivered another solid quarter, and consequently we are raising EPS guidance for the year," said PayPal CEO Dan Schulman. "Net new active accounts increased by a record 41 million over the last 12 months, and engagement per active account once again increased by 9% to 39 times a year. Venmo's momentum continues, with a 70% growth in total payment volume to $24 billion. Earlier this month, Xoom expanded to 32 new send markets throughout Europe."