PayPal: Q1 2021 Results (Quick Read) (Substack Exclusive)

Flash Note (PYPL US) (Buy)

PayPal released Q1 2021 results after markets closed this evening (Wednesday). Shares are currently up 4.7% in after-market trading, at $259.

Q1 Volume Up 50%, Revenue Up 31% and EPS Up 84%

For Q1 2021, PayPal reported strong double-digit growth, ahead of their outlook:

• TPV growth of 46% excluding currency and 50% including currency

• Revenue grew 29% excluding currency, 3 ppt higher than the 26% guided. (Including currency, revenue grew 31%, compared to the 28% guided.)

• Non-GAAP EBIT margin expanded 8 ppt, from 19.7% to 27.7%

• Non-GAAP Net Income grew 85% year-on-year; EPS grew 84% year-on-year

High-Teens Revenue Growth Expected in Q2

Q2 2021 revenue growth is expected to be 17% excluding currency and 19% including currency).

2021 Guidance Raised

For full-year 20201, PayPal now expects TPV growth to be approx. 30% (was “high 20s”), revenue growth to be approx. 18.5% excluding currency (was 17%) and 20% including currency (was 19%), and Non-GAAP EPS growth to be 21% (was 17%).