Paypal (PYPL) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Paypal reported $7.79 billion in revenue for Q1 2025, a year-over-year increase of 1.2$1.33 compared to $1.40 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of$7.81 billion, resulting in a surprise of -0.23%, while the EPS exceeded expectations by +15.65% [1] Financial Performance Metrics - Transaction take rate remained stable at 1.7%, matching analyst estimates [4] - Total Payment Volume (TPV) was $417.21 billion, slightly below the estimated$420.67 billion [4] - Total take rate was reported at 1.9%, in line with analyst expectations [4] - Transaction margin improved to 47.7%, exceeding the estimated 46.5% [4] - Transaction expense rate was consistent at 0.9%, matching analyst estimates [4] - Active accounts reached 436 million, slightly above the estimated 435 million [4] - Transaction and credit loss rate was stable at 0.1%, aligning with analyst expectations [4] - The number of payment transactions was 6,045, lower than the estimated 6,676 [4] - Revenues from other value-added services were $775 million, surpassing the average estimate of$667.22 million, representing a year-over-year increase of +16.5% [4] - Transaction revenues totaled $7.02 billion, which is a -0.3$7.17 billion [4] Stock Performance - Over the past month, Paypal shares returned -0.5%, compared to the Zacks S&P 500 composite's -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]