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PayPal payment volume jumps 36% YOY in Q4'20

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PayPal payment volume jumps 36% YOY in Q4'20

PayPal Holdings Inc. reported fourth-quarter 2020 non-GAAP net income of $1.28 billion, or $1.08 per share, up from $988 million, or 83 cents per share, in the fourth quarter of 2019.

The S&P Capital IQ consensus normalized EPS estimate for the most recent quarter was $1.00.

The company posted GAAP net income of $1.57 billion, or $1.32 per share, for the fourth quarter of 2020, compared to $507 million, or 43 cents per share, in the prior-year period.

GAAP net revenue in the quarter was $6.12 billion, compared with $4.96 billion, in the year-ago quarter. The company's total payment volume was up 36% on a foreign exchange-neutral basis to $277.07 billion. Venmo processed about $47 billion of total payment volume, up 60% from the prior-year period.

PayPal saw 16.0 million net new active accounts during the quarter and 72.7 million net new active accounts for the full year 2020, up over 95% year over year.

For full year 2020, the company posted non-GAAP net income of $4.61 billion, or $3.88 per share, up from $3.52 billion, or $2.96 per share, in 2019. GAAP net income for the year was $4.20 billion, or $3.54 per share, compared with $2.46 billion, or $2.07 per share, a year ago.

The S&P Capital IQ consensus normalized EPS estimate for the year was $3.79.

PayPal also set guidance for the first quarter and the full year 2021.

For the first quarter, PayPal projects revenue to grow about 28% at current spot rates and roughly 26% on a foreign exchange neutral basis. The company expects non-GAAP EPS to grow about 50%. The company expects GAAP EPS of 70 cents.

Estimated non-GAAP amounts for the three months ending March 31, 2021, reflect adjustments of about $590 million, including estimated stock-based compensation expense and related payroll taxes of approximately $440 million, according to a PayPal earnings release.

For the full year 2021, PayPal expects revenue to grow about 19% at current spot rates and roughly 17% on a foreign exchange neutral basis, to about $25.5 billion.

The company expects total payment volume to grow in the high 20s on a percentage basis.

PayPal expects GAAP EPS to be about $3.20, compared to $3.54 for 2020, and for non-GAAP EPS to grow roughly 17%.

Estimated non-GAAP amounts for the 12 months ending Dec. 31, 2021, reflect adjustments of approximately $2.17 billion, including estimated stock-based compensation expense and related payroll taxes of about $1.62 billion.

The S&P Capital IQ consensus normalized EPS estimate for the first quarter of 2021 is 99 cents, while the consensus normalized EPS estimate for full year 2021 is $4.54.