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Compared to Estimates, Paypal (PYPL) Q4 Earnings: A Look at Key Metrics

Paypal (PYPL) reported $7.38 billion in revenue for the quarter ended December 2022, representing a year-over-year increase of 6.7%. EPS of $1.24 for the same period compares to $1.11 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $7.4 billion, representing a surprise of -0.24%. The company delivered an EPS surprise of +3.33%, with the consensus EPS estimate being $1.20.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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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: $357.38 billion versus $359.22 billion estimated by seven analysts on average.

  • Total Take Rate: 2.07% versus the six-analyst average estimate of 2.06%.

  • Transaction margin: 49.7% versus 50.23% estimated by six analysts on average.

  • Active customer accounts: 435 versus the five-analyst average estimate of 441.62.

  • Number of payment transactions: 6032 versus the four-analyst average estimate of 6079.81.

  • Transaction Take Rate: 1.88% versus 1.88% estimated by four analysts on average.

  • Transaction and Credit/Loan Loss Rate: 0.11% compared to the 0.11% average estimate based on three analysts.

  • Revenues from other value added services: $681 million versus the nine-analyst average estimate of $653.77 million. The reported number represents a year-over-year change of +25.9%.

  • Transaction revenues: $6.70 billion versus $6.73 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change.

View all Key Company Metrics for Paypal here>>>

Shares of Paypal have returned +1.5% over the past month versus the Zacks S&P 500 composite's +5.8% 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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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

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