PayPal Beats Q4 Earnings Expectations, Shares Fall on Future Guidance
PayPal reported fourth-quarter earnings and revenue that exceeded expectations, with revenue rising 9% to $8.03 billion compared to the previous year. Despite this, the company’s shares dropped by 8% in extended trading due to guidance slightly below estimates. Active accounts decreased by 2% to 426 million, falling short of analyst predictions. Net income increased by 52% to $1.4 billion. Total payment volume for the quarter reached $409.8 billion, surpassing analyst expectations. However, PayPal’s full-year and first-quarter guidance fell short of expectations, with anticipated earnings per share below analyst estimates. The company plans to stop providing annual guidance, shifting to quarterly outlooks due to ongoing changes within the company. PayPal recently announced a workforce reduction of 9% and introduced new artificial intelligence features under CEO Alex Chriss. Despite recent challenges, PayPal remains committed to driving profitable growth in the future.
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