PayPal(PYPL)2025-04-29 11:01Financial Performance - Net revenues increased 1% to $7.8 billion, with a 2% increase on a currency-neutral basis[7] - Total payment volume (TPV) rose 3% to $417.2 billion, with a 4% increase on a currency-neutral basis[8] - GAAP operating income increased 31% to $1.5 billion, while non-GAAP operating income rose 16% to $1.6 billion[7] - GAAP EPS increased 56% to $1.29, and non-GAAP EPS increased 23% to $1.33[8] - Total net revenues for Q1 2025 were $7,791 million, a 1% increase compared to $7,699 million in Q1 2024[31] - Transaction revenues accounted for $7,016 million, representing 90% of total net revenues, with a year-over-year growth of 4%[31] - Operating income for Q1 2025 was $1,530 million, up from $1,168 million in Q1 2024, reflecting a significant increase of 31%[24] - Net income for Q1 2025 was $1,287 million, compared to $888 million in Q1 2024, marking a 45% increase[24] - Non-GAAP net income reached $1,329 million, compared to $1,155 million in the prior year[54] - GAAP net income increased to $1,287 million, up from $888 million year-over-year[54] Cash Flow and Liquidity - Cash flow from operations was $1.2 billion, and free cash flow was $1.0 billion[7] - The company reported a net cash provided by operating activities of $1,160 million for Q1 2025, down from $1,917 million in Q1 2024[25] - Free cash flow for Q1 2025 was $964 million, down from $1,763 million in Q1 2024, indicating a decrease of about 45.2%[56] - Adjusted free cash flow for Q1 2025 was $1,381 million, compared to $1,856 million in Q1 2024, reflecting a decline of approximately 25.7%[56] - Free cash flow was reported as a key liquidity measure, providing insights into cash generated after capital expenditures[49] Shareholder Returns - The company returned $1.5 billion to stockholders by repurchasing approximately 19 million shares in Q1 2025[7] Guidance and Future Outlook - For Q2 2025, GAAP EPS guidance is $1.24 - $1.26, and non-GAAP EPS guidance is $1.29 - $1.31[10] - Full year 2025 guidance is maintained due to uncertainty in the global macro environment[9] - The company plans to continue expanding its services and enhancing its technology to drive future growth[32] - The company plans to continue focusing on market expansion and new product development to drive future growth[34] Operational Metrics - Active accounts grew 2% to 436 million, with a sequential increase of 0.3% or 1.5 million[7] - Active accounts increased to 436 million, a 2% increase year-over-year[34] - Total payment transactions decreased to 6,045 million, a 7% decline year-over-year[34] - Total Payment Volume (TPV) reached $417,208 million, reflecting a 3% increase year-over-year[34] - Transaction margin improved to 47.7%, up from 45.0% in the prior year[34] - Non-GAAP operating income rose to $1,616 million, compared to $1,399 million in the previous year[53] - GAAP operating margin improved to 20%, up from 15% in the previous year[53] Balance Sheet Highlights - Cash and cash equivalents at the end of Q1 2025 were $20,981 million, down from $22,275 million at the end of Q1 2024[28] - Total assets increased to $81,274 million as of March 31, 2025, up from $78,725 million at the end of 2024[22] - Total liabilities rose to $61,020 million in Q1 2025, compared to $58,308 million in Q4 2024, indicating a 3% increase[22] - The company’s equity decreased slightly to $20,254 million as of March 31, 2025, from $20,417 million at the end of 2024[22] Other Notable Metrics - The net timing impact from originating European BNPL receivables held for sale and subsequent sale increased to $417 million in Q1 2025 from $93 million in Q1 2024, showing a significant increase of 348.4%[56]