PayPal earnings disappoint investors, shares fell 7% in extended trading

Companies • August 3, 2023, 2:26AM EDT

Published 1 minute earlier on

Quick Take

PayPal shares fell 7% in extended trading yesterday.
The payments company’s adjusted operating margin came in below expectations.

PayPal's quarterly operating margin failed to appease investors yesterday, sending its share price down 7% in extended trading — though executives at the American payments behemoth shared optimistic year-end expectations.

"When we think about the back half, in Q3, we'll still see some pressure on transaction margin performance," acting CFO Gabrielle Rabinovitch told analysts, adding: "In Q4, we expect to see an improvement."

PayPal's adjusted operating margin for Q2 2023 came in at 21.4% — below its forecasted 22% — due to slowed growth in branded products in the face of increased competition from Apple and others.

PayPal CEO Dan Schulman — who's retirement was announced in February — also blamed inflation for slowing e-commerce growth but believes cooling inflation is "accelerating" it again.

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The company anticipates beating analysts' estimates for Q3 revenue and profit per share.

PayPal Ventures led a $52 million raise for digital wallet provider Magic in May — the same month PayPal customers' crypto holdings hit $943 million.

About Author

Adam is the managing editor for Europe, the Middle East and Africa. He is based in central Europe and was a managing editor and podcast host at the crypto exchange OKX's former research arm, OKX Insights. Before that, he co-founded BeInCrypto.com, which he elevated into one of the leading crypto media brands at its peak as the editor-in-chief. Earlier, he served as the editor-in-chief at Bitcoinist.com. Before joining the blockchain and crypto industry, he worked for Looper.com, Grunge.com and SVG.com. He tweets via @XBT002 and can be emailed at [email protected].