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Paypal (PYPL) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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Paypal (PYPL - Free Report) reported $8.37 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 4.2%. EPS of $1.19 for the same period compares to $1.48 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $8.23 billion, representing a surprise of +1.67%. The company delivered an EPS surprise of +5.31%, with the consensus EPS estimate being $1.13.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Paypal performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total Payment Volume (TPV): $437.84 billion versus $435.29 billion estimated by six analysts on average.
  • Transaction take rate: 1.7% versus the six-analyst average estimate of 1.7%.
  • Transaction margin: 47% versus 46.4% estimated by five analysts on average.
  • Total take rate: 1.9% compared to the 1.9% average estimate based on four analysts.
  • Transaction expense rate: 0.9% compared to the 0.9% average estimate based on three analysts.
  • Active accounts: 434 versus 434 estimated by three analysts on average.
  • Number of payment transactions: 6,619 versus 6,930 estimated by two analysts on average.
  • Transaction and Credit loss rate: 0.1% compared to the 0.1% average estimate based on two analysts.
  • Revenues from other value added services: $778 million versus the nine-analyst average estimate of $738.97 million. The reported number represents a year-over-year change of +4.7%.
  • Transaction revenues: $7.59 billion versus the nine-analyst average estimate of $7.49 billion. The reported number represents a year-over-year change of +4.2%.
View all Key Company Metrics for Paypal here>>>

Shares of Paypal have remained unchanged over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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