PayPal (PYPL, Financial) just wrapped up a strong Q3 2024, showing resilience and growth in a challenging market. Total payment volume hit $422.6 billion, up 9% year-over-year, and non-GAAP EPS rose to $1.20, beating estimates by $0.13. Active user engagement remains high, with payment transactions per active account jumping 9% over the last year. But despite these highlights, the stock slid 6% as cautious Q4 guidance signaled a tempered outlook moving forward.
Looking at Q4, PayPal projects low-single-digit revenue growth and GAAP EPS in the range of $1.03 to $1.07. For the full year, GAAP EPS is expected at $3.92 to $3.96, with non-GAAP EPS growth in the mid-to-high teens. CEO Alex Chriss remains optimistic, emphasizing PayPal's continued push into new products and partnerships to solidify its position in a highly competitive market. The company's heavy marketing spend and strategic shifts aim to lay the groundwork for long-term resilience and growth.
Backing up this optimism, PayPal posted $1.4 billion in free cash flow and returned $1.8 billion to shareholders through stock buybacks. But with the softer guidance, it's clear management is bracing for potential headwinds, positioning the company to hold steady while continuing to capture long-term value for investors.
