Gabrielle Rabinovitch Head, IR
Dan Schulman President & CEO
John Rainey CFO & EVP, Global Customer Operations
Bill Ready EVP & COO
Bryan Keane Deutsche Bank
George Mihalos Cowen
Tien-tsin Huang JP Morgan
James Fossett Morgan Stanley
Darrin Peller Wolfe Research
Heath Terry Goldman Sachs
Call transcript
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Good day, ladies and gentlemen and welcome to PayPal's Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Ms. Investor of Head Rabinovitch, Relations. Gabrielle Please go ahead.

Gabrielle Rabinovitch

Sheri. us. Welcome you, third XXXX. Good call afternoon joining for quarter you thank to the and for Thank PayPal earnings Holdings'

President the Officer Financial EVP, Chief Global Bill Dan Joining Operating our and and call Operations; our today John Rainey, on Schulman, me our Ready, and Customer Officer. CEO; Chief are EVP,

Investor both We Relations available is also call commentary. This are conference are website. our providing a of call webcast section slide the and presentation through and to the accompany our presentation being

We company's will some about discuss non-GAAP measures performance. talking in our

You to call. can in comparable find the the most measures reconciliation of these non-GAAP GAAP conference the measures presentation this accompanying directly

management quarter for XXXX, current and acquisitions. statements XXXX, uncertainties. addition, based These timing outlook make and and are our our our initial risks that on expectations, for guidance the full and In include our and impact of year fourth forward-looking assumptions will our statements forecasts and guidance medium-term involve

these Our actual results may from differ statements. materially

more information and Quarterly and our filed Report of the XX-K Form can Investor our available other on and most on website. recent Relations You Form in SEC affect could about our with Reports XX-Q results find on that Annual factors uncertainties the section risks,

that, this any me statements. Dan. on With rely October not should turn You as to All presentation information the over of XXXX. expressly let forward-looking update disclaim information. to the in We is call XX, date, today's any obligation

Dan Schulman

to grew U.S. the joining thanks currency our both, us. and billion excellent for the XX%. had consumer of on through credit revenues and revenue sale basis. with Gabrielle, XX% at of everyone Normalizing neutral you, at Thank $X.XX PayPal Synchrony quarter growing receivables another spot

continue last we drive XX.X% strong performance. operating we points basis $X.XX non-GAAP year, financial short, year-over-year. margin of non-GAAP XXX grew up XX% EPS, Our to and In delivered of from

actives million net million platform financials, drove pleased new month. new We net quarter of the X.X X of XXX surpassing engagement. XX a the actives our new We past and the our with to per accounts I customer am net the new almost million by highlight in quarter. As growth customers record as net the our averaging accounts end was in million added XX active months,

billion we X.X XX%. the During transactions quarter growing drove

X.X% XX approximately the total Today, yield million in a PayPal mobile customers checkout some our choice engagement nearly active of of and One using with One year. Touch Touch. XX.Xx and In expand consumers choice of Mobile billion checkout QX, choice per our per mobile them, Our markets. payment XXX platform. devices XXX user meaningful Predominantly our more million of actively than with engagement One increased with of saw Customer major market conversion driven of to engagement have now also merchants our processed continues volume. across the to driver growth in have by all A our available represents mobile we customers in XX% million use used to rates metrics. is to volume lift leading quarter. continues XX.X Touch. XX% XX

influential develop some I'm that with throughout outcome Today, that of commerce. was partnerships technology American In partnership a over Another very to with we've and and our signed very brands multi-faceted announce most important enabled XX the of pleased two PayPal over largest Express. choice world's agreement it partnerships just in we've ecosystem. in signed years finance, deep to

partnership nature Steve with become strategic the the brands American partners. going Express made the Squeri As PayPal great world that forward. team very one of sense have leading been our of I'm his and with, pleased would it comprehensive and to always and work in

American Express agreement Amex PXP quarters several PayPal The of will option American enables capabilities to in the PayPal deep and Express to access as next a platform. tokens our payment access a within wallet. and will the Over our enhanced allow integration have Venmo PayPal

be Express able their merchants American at consumers Express around American and purchases PayPal of to the Additionally, pay reward use world. millions PayPal will for points their to

will Most to these next the a have both and agreement together, the customers companies. we growing our capabilities will Working have to move partnership for know their year what an call customers relationships innovative are we and more the and and announced significant and access and product we not of landscape, to on begin people create created world. the you result, for With around relationship a way new these manage economy. the the now to convenient more segment PayPal of unique developed mutual money; to in we rollout our Walmart Over unbanked gain important this be a our Walmart. with that strategic also networks, commerce also experiences have efficiently redefined competitive to place experiences card more customers new affordable have with major as all digital they empowering and of only for partnerships mutual pleased recently

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population. belief PayPal shop beginning, customers aimed to moving and our store addressing Walmart do economy. and rates, working And locations the we share register accessible, millions And for all master This the this of ATM card segments Walmart with Additionally, the of the the or just team hand-in-hand more and of and is from at combines even are to managing commerce money while digital issue. mobile introduce which strengths not at as to future. is companies remarkable our in tens partnership efficient access withdraw the in that that currently of PayPal as still unique benefits at and should have the capabilities leverages that the secure cash the both to are be there nationwide. use cash of at Walmart's and affordable, Walmart, can continues well people on digital mobile online grow

continue We our grow globe. to partnerships the around also

we are this partnership finalized we banks drive help announce spend improve Itaú one that With partner with the our and instance, a for in Unibanco, customers. Brazil. America pleased we another largest joint major strategic to For add of agreement Latin to have in issuing digital convenience

customer app comprehensive closely large strategic We reduce a gas payment will partners. experience early XXXX that partners the a plan to with is the continue are Mobil. our to using the we with payment Shell, in that Exxon B.P. joins the time Together differentiated to industry experiences. of Chevron capabilities pump. platform existing of it's help We agreement and our improve we of including launch yet how struck U.S. Chevron spends to our new partnerships recently this work amount customer create extensive at list a This at another in example the merchant stations in mobile PayPal's

overall to I'm significant wide to Venmo. we've an this array as surrounding products we made our monetization of addition the efforts. new especially extremely teams advances brought partnerships, new busy in progress was forging we strong across momentum In and several all for a with saw product the market Venmo pleased period development

May Venmo actives. third our groups billion annualized effects participated driving now in is XX% now than as the month-over-month in net a row and XX% with And a Uber in again users apps, This point. have this XX% saw Venmo efforts quarter monetizable month-over-month appear one an tipping up Pay And of is Uber quarter Eats accelerating billion. from is this approaching be in September run we August. users with volume a to still monthly approximately the active Venmo of August. yet versus XX% to year. $XX.X in ago posted volume $XX while another For early, network new versus September increased growth more it rate record XXX% and reaching action; for across XXX% monetization

Our since customers in August our Venmo omnichannel launch supermarkets users with approximately the becoming growth we These strong every monthly restaurants. are our that a are for Notably, demonstrate two month-over-month part ubiquity September. rapidly day to and card top used a XXX% start also Venmo cases cart category purchase daily active of is spend. from to and off gaining

volume with the pleased month $X over in processed Finally, we more platform initiatives. billion our adoption Venmo transfer the alone. be across alone on instant customer Venmo last I couldn't summary, In

This of PayPal their pay Funds be by quarter aspire norm their than a to sales. amount access we standing, in from addressed immediate the and extra to for small businesses to time are one providing in merchants, no customers. their reserves; at them of standing. in their payments need launch the cash bills, to their business, to into good standard the funds we the immediate exception biggest gives to for invest they eliminating and should fund within businesses; issues delays facing small sales the minutes are back cost The Now holds, takes good access We our new access it set that rather who access of service merchants

X across Now. taking to Funds advantage We pleased are of globe million say that merchants over the already are

for options to year deploying bolster range clutter through dynamically mid-sized payment this credit, buttons. conversion use a each financing we're relevant merchants checkout more options which we experience methods helping improves PayPal and including the most to shoppers and new pages, of to payment presenting opportunities Swift around sales likely to The purchase A most than small their PayPal, experience is innovative their we with the and they checkout way in proven to checkout the the alternative see of merchant increase acquired means businesses. Another wide world. a to don't by globally. currently PayPal little is expand Financial businesses for the customers; the are smart our checkout Venmo PayPal be payment ago rollout need methods This would shopper,

than includes one capital more in business PayPal in the to now providers the Top last PayPal PayPal financing quarter. $XXX businesses in U.S. We million and loans customers business we X funding are same the than our solutions more billion working Our of period believe small $X working funding of This capital in year. provided doubles last which the

our globally. We maintain global our as presence. the global of for merchants and payments. iZettle, open leading will expand as two-sided and our acquisition We our value our continue our strengthening closed in-store for platform significant acquisition platform capabilities acquisitions believe Last capabilities we small we provides point-of-sale platform month position to leverage strengthen digital business this to

We capabilities expect our excited global quarter enhanced to to this payout the it's of close marketplace to Hyperwallet extend acquisition and customers. we're

want PayPal the increasing team Before of over for and results, call I for on I efforts our customers. more value to I provide financial say turn our am their proud ever John to details the to how

announced that John. making Top brand value over of I'll recently Interbrand the are with us growing of in that, one XX% PayPal had last for shareholders. call to As long-term year, create These the kinds fastest increased brands of in proof turn the that, what value sustainable it's and by the results And world. our X

John Rainey

Thanks, financially both, had solid and QX, Dan. in quarter operationally. PayPal another

growth targeted the Our results. of both, our to investments financial sides strategies platform to strong consumer and merchant and drive strengthen continue

in and growth business. power the volume, accounts, consistent active Our payment engagement our resiliency demonstrates revenue of in

quarter, In our and income also the margin only grow model. addition, at volume reinvested to expanded our operating time but in the margin operating growth the scalability we highlights revenue. of third expansion delivering while our same users, operating In not

highlights few into a go financial I'd quarter. the I like our Before from provide results, to

the Synchrony I will sale results early credit our Where comparability. reminder, for relevant, July. a normalized U.S. As in provide to of receivables closed consumer

acquisition In our of addition, September. in late iZettle closed

of from sale Our the impact QX no QX and results transaction. consumer financial points XX% we with And share of in basis, revenue. Operating basis adjusting every cash of this include grew credit on XX%. expansion. dollar grew metrics XX% margin earnings portfolio. $X.XX for flow a approximately our Revenue Non-GAAP for income free of XXX U.S. grew normalized per operating operating generated

comparison to financial grew experienced U.S. Merchant payment neutral of of a dollar. spot, a from was XX% currency growing currency volume we XX% payment of was XX% billion, TIO basis. an neutral Turning volume a to more and XX% increase of the XX% $XXX basis pressure basis. on than at spot third volume billion, performance and for quarter growth X%. volume was points total associated quarter; on lapping a the international Networks In as XXXX, neutral the five and on our growth basis, eBay stronger a result was services and currency of $XXX a volume with on payment

a from quarter customer grew to grew $XX followed Payment down XX.X% we our versus transactions increased services XX.X% year. our XX% part continued million in XX% billion the active million strong For quarter success which XX% merchant total than demonstrating volume This per our momentum customer the quarter billion. grew our Xx of related the approximately the transactions continue continuation and growth accounts. than in years the represented was versus accounts X.X and XX% quarter, demand in and services is third PXP by faster consecutive customer-centric represented this is third represents eBay the on XX% ago. platform, year. core of quarter the our with platform. volume a total XX% eBay XXX In PayPal of XX% volume Venmo. more volume. to for trend accounts see volume ended X.X merchant last volume the three industry-leading on adding quarter marketplaces quarter QX third of net growth to payment active And of our to account payment new Account We solutions. in with fourth driven last by model active X.X% engagement multi-year

in spot and X.X the processed billion. billion quarter transactions. Revenue neutral basis on Over the more months XX increased the currency we XX% to last both third have than $X.X

Adjusting approximately by declined affected year. revenue growth was growth Synchrony XX% basis, which in X-point had this services TIO third quarter the affected the XX% U.S. a quarter a of lapping in and U.S. However credit for inline consumer softness to would the our value-added transaction last impact. year-over-year additional revenue in On stronger sale the been comparisons. eBay about to grew trends have revenue sale, our revenue spot with the of other business, comparison receivables like In I'd give to growth. from on XX%. color revenue QX the Networks and our transaction the 'XX dollar,

a value-added and marketplaces us dollar ongoing was and allowed to an geographic pressure The deliver both in a This from by year-over-year portfolio had our continue to businesses. growth. from stronger our on business product eBay both growth consumer consumer revenue quarterly a our of our receivables overall U.S. result credit other the to the partially and in services capital portfolio, While results, merchant on the impact offset Synchrony. decline diversified revenue was solid sale solid international of perspective credit XX% decline working

from the reduction X.XX% In a eBay decline quarter, For PXP, in was resulted the was the change to transaction 'XX. XX total take this QX and two-thirds was last U.S. basis largest rate of point driver of rate in reduces total of was lower Approximately QX our year. take The to third rate sale transaction growth the in take rate; related credit in a the X.XX%, growth consumer was cross-border in periods. single decline volume. in related XX basis take and portfolio of overall versus prior X.XX% points to the remainder slower comparability

which continue XX% Transaction year last was sale $X.X for improvement to in of increased margin billion to sequentially. to core grew related XX%. points basis in XX point QX million results. as next points $X.X was flat a both margin basis $X.X of billion. year-over-year, a Non-transaction Transaction loss drive X of as a $X expense transaction XX% rate or and in represented TPV based billion. this of from as a versus due third Venmo X% these and million expenses $XXX was rate 'XX credit TPV the and dollars Volume XX% with XX Improvements loss to XX expenses We Transaction basis impact portfolio. QX points points basis TPV, or quarter of rate expect QX and the three to to a was Loan down the $XX 'XX. consumer the to again basis helped X billion grew rate U.S. quarters.

for drove last scale acquisitions of in low expansion. growth for Again, these related basis income percentage a this This operating expenses year. Synchrony, a demonstrates sell marginal points of As XX% directly basis leveraged the non-transaction Normalizing and related XXX performance year-over-year. operating sustainability third X% approximately revenue, cost. quarter the at our versus margin our to platform total points XXX and to grew cost expenses

continue further our margin We back with delivering into business competitive platform balance to operating the reinvesting to expansion and positioning. strengthen

$X.X discipline in in borrowings a growth billion. quarter On to in of OpEx quarter was investments for topline every cash revenue. the conjunction EPS million; cash $XX.X flow equivalents ended this cash for free XX% of dollar with free billion our resulted Solid our in growth third short-term non-GAAP equates $X.XX. $X cash with We the adjusting cash, the and of basis, $XXX flow free in to Synchrony flow billion, was reported of $X.XX proceeds

Our and cash five investments In shareholders years. of organic while $X the year, and us now million, to we same to returned well In returning would discuss updated consistent the shareholders. our to profitability thoughts business cash quarter the and significant flow cash year-to-date initial our return next QX flow; delivered at for for to we strong as this our or XX% growth, inorganic we make of free approximately free May, XX% guidance XXXX over like returned nearly full plans XXXX. to I and future our the billion. growth announced robust enables of time fourth as have $XXX to

QX in softness $X.XXX neutral in expected well fourth million from the credit implied the we our XX% than guidance foreign marketplaces of eBay as basis. the fourth or acquisition, business. in as range $X.XXX changes of close impact XX% later approximately and Hyperwallet to $XX quarter. for for currency the a quarter, anticipated incorporates sale, for XX% on billion rate receivable currency This previously Normalizing expect XX% to the For growth the U.S. be would billion we growth revenue to a in revenue

We per are non-GAAP be in share raising $X.XX. range the to $X.XX our to earnings of

benefit. a include than expectations EPS higher Our below the line normal

We back of to which into reinvest from the business drive natural efficiencies of for of are electing right the the this benefit scale. some this offset long-term some decision We is believe to PayPal. leverage we opportunistically will realized value

full XX% and and timing. For our raising U.S. million absorbs revenue range XXXX expect Hyperwallet neutral would we to low-end rate which approximately now growth of the currency growth range year to are for previous from a to dollar the Normalizing high-end in the strength $XX.XX XX% be implied or We Synchrony, sale for $XX.X revenue the revenue $XX the full maintaining the on headwind billion of the be billion XX% the year. to guidance, basis.

We are to raising share $X.XX. our non-GAAP guidance $X.XX earnings per to

flow In well have Synchrony free as proceeds; for the to cash addition, exceed expect given we as full $X.X billion. generated free now all year flow cash strong year, the we the

about process in but still planning initial for are We our next thinking how we're an like I'd framework our business you provide with XXXX for to year.

revenue in Normalizing growth the U.S. as of We in consumer XX%. of to first XX% expect half of for credit XX% the a reflects in this, to growing grow sale services the portfolio. revenue This expectation the XXXX neutral that currency other be the on basis. result a of is rate approximately value-added would reduction revenue our range

our we outlook four integration to approximately non-GAAP we In would announced approximately XX%. our expect EPS grow grow XX%. for EPS for addition, we plans this, incorporates have Normalizing acquisitions the year. expect this to This

to contribute of our $X.XX we of to expect Next these share. our accretive XXXX points And X.X dilution acquisitions earnings. approximately year per revenue be to earnings in and to XXXX, we to acquisitions expect to $X.XX growth

XXXX, returned the performance we're ahead. of this in approximately operating delivered announced to $X.X three shareholders, have As we business. and $X approximately and our improve in quarters very of billion the billion acquisitions, overall reflect profile we margin Already first our cash opportunities expansion growth by the significantly year encouraged on

With in such we and Venmo, colleagues confidence great We potential global introducing loans. We're business payment PayPal's momentum customers another as back over business our for areas to in-store high the operator by making let I me strategies, PayPal this expansion, extremely are Thank questions. worldwide with innovating see you. us this it of for pleased that, close and and consumers scale and experiences to the want The merchants. gives turn in invest our to our all progress. for quarter. strong thanking sustained


Deutsche Our Bank. first Bryan [Operator with from question Instructions] comes Keane

Bryan Keane

doesn't payment I about the to announced wanted ask as PayPal they know managed a like is look I initiatives eBay; payments featured option. it and

out out core model? to run payments mean, how the is what weakness PayPal's the off Were of the of coming to we're due eBay rate to I trying eBay at those So volumes get figure I to to in figure volumes? what's trying PayPal impact guess providers? in much other is

Dan Schulman

turn it's if add at Brian, crack it that and take Thanks else to John and then over Bill, got a to Dan. anything to I'll they've it.

moved on all, of with announced our a on [ph] payments, They XX our intermediated think see I performance platform TPV even we eBay's results. had intermediated So that they publicly -- nothing of as do payments. to rounding million first to that had don't

platform. So their on intermediate no our payments impact performance started them, has just for off on

me and let going I a little what a forward. So bit you talk step take to see back about

I done signed not so eBay. think are and because signed services say ago we've sellers our The demanded PayPal eBay X-year and sellers provide Those that deals deal mutual we and with intermediated that them a that PayPal PayPal to it's with term consumers is going that sales have, partners the just shopper's that? way, some what study consumers in on think it. about willing the it research a said XX% eBay published to strategic Bill, more a the to [ph] that -- thing was average most done that X-year are that PayPal; the why depend that And just with out while unfamiliar on have share PayPal to And study comprehensive be put demand that been accepts IPSOs and say just things showed credit was that the we've payments important have that quite their study, offers. when market transaction, actually I I that's branded for comprehensive a merchants time. with we a talking just cross-border just and we we eBay low-end that eBay long number are brands on to PayPal; XX% it's to at I merchants; And, for about think when a buy when close if do goes a by for foreseeable of the it's tail and a mobile, continue it's of is up that. future. merchant that low If their so those. or display So that you the when

And have so of users PayPal you a XX% option. checkout transaction also have PayPal the who wasn't because abandoned [ph]

on And right so imagine checkout wasn't we've them our customers abandon almost because available. it's got PayPal sale XXX platform million of now, a would XX%

talking the And clamoring PayPal. feedback and are moved on the been eBay what to so payments; seller time some you back sellers and and that those to come they're about for we've you'll dropped those from look at seller to XX% and have at to -- saying, quite this if by way, form the intermediated their sales XX% over have them see comments that look

both to and mutual put intermediated on, of to for want eBay really a So it's PayPal we'll having partnership well, we feel integration well. eBay on great value and we but that Anything the Bill? forward great with about have would to add, have, payments proposition PayPal year major as we you us serve growing the both next feel our that going customers we're to PayPal committed extremely beginning eBay about

Bill Ready

to are can issues customers demand that and from sure would has back in to with that with try have comments strong just we're revert hand-in-hand that sellers the the eBay to working hard the available responded saying available a and to and make to long-term the those that's in those PayPal sale, as they describing. customers near-term was in I they working option, add to make PayPal eBay payment Dan given as drop


you. Thank

comes question Paul with next Credit Suisse. [ph] from Our

Unidentified Analyst

just Venmo, some give updates to I could us good follow-up wanted on there. you [ph]

we that Just think contribution September; say I'm billion $X instant as the activities -- just make starting that kind could run the rate? would you of in -- correctly. other think just, to then, you transfer are should $X want there to monthly sure us help of you And about volume through I thinking -- any billion contribution scale, are mentioned monetization

Bill Ready

we see with month-over-month growth on across to month-over-month Venmo, apps seeing rapid meaningful but Sure. growth, all that the in in Grubhub, remarks, for and and in trend. way. early see pay and Dan with three monetization of And results $X starting of those those initiatives September, is other his growing all our Venmo, well, disturb remarkably. instant initiatives don't really Uber that of transfer anything the see is a nicely. the Seamless to the like of pay with are with very is mentioned other major billion Eats, and we integrated transfer of and Uber, we card, volume monetization that's Grubhub, been all card on initiatives instant instant the Venmo, those mentioned Venmo month Venmo growing been was EatXX, that's transfer, seeing pay are we're pay Uber growth XXX% kinds growing with The I nicely, one and XXX% so as that scaling have quite scale

Dan Schulman

the monetizable of a act now saw to you go customers from Venmo And been also have in quarter number XX% XX% who ago. just up one

So net it seen as I out think record seems point each active up but would don't quarters just results some tipping obviously late and we achieved my of it's and mentioned, take we've I granted; now, kind now repetitive with Venmo. for pleased are still like new of One that I is, thing as other it signing three looks Venmo. in right to it [ph] or remarks, for Bill point mentioned quarter both the I in a right row extremely we've but I

So going are quite is the not Venmo expand percent people up rapidly well. event you using seeing quite the but as monetizable rapidly only of

all combine those you why see can we're now. things of the quite together, with So you pleased as of momentum


question Mihalos with next Our from George comes Cowen.

George Mihalos

Venmo think company that, to ask 'XX, or about guide then know 'XX Thank in from the the should across initial and know, we you are how in about the as related thinking the side, I [ph] John, to red we you the of how look black; at pricing maybe on ballparking in some kind contribution into pricing cross-border operating to guide? the the anniversarying for 'XX? going you're shift you. going wanted Just and from broadly that

John Rainey

the And we've pricing; be very In in other have, addressable you're be taking George, to it's we've described in and that opportunities and for We that to we a pricing not us experience of measured we're pricing; we're so sure perspective history one-time going it enormous cases here both approach can at on Venmo, our in is more aggressive as the and moved take is have pricing value on can there to monetize a and provide we where be mean is game market that that's example in said to about to market about given PayPal to market that the this, the that higher. ways. with last number trying talking excited sometimes market that this that is that every goes as we we related be the have capturing certainly -- increasing pricing. significant this as good what the that able assumptions pricing, where long a be we're something for of today going with some our and to various One that where going built that where more into so announcement terms example merchant. advantage a to the about about -- of seen not quarters but thing instant and certainly a that of the happened into record where hard the profitability sugar-high -- optimizing it each is we've three make will terms out that look there recent fact inline transfer, PXP to we from as pricing optimize -- not we've in and made of our ways going with year XXXX. a customers past can a said, of to numbers to come Starting areas shop plans at got the net new pricing in share [ph] you it's pricing something of platform; long-term On I've one monetize one the and quarter. for next and we're before to about growth come, being are just

a And in years so in not economics improvement Venmo transition each next will quarters, see so our place we that couple thereafter. is take and year couple year, that expect to and a of a


Tien-tsin Our comes JP Huang next question with Morgan. from

Tien-tsin Huang

the encouraging. it's for thanks framework, Thank you, and XXXX

I'm for just in growth specifically outlook have getting what too; for [ph] that, -- in you Just not curious despite cross maybe EPS your aggregate; the some comment steady but that the that border EPS cross-border about for in 'XX growth on are a key confidence fairly acquisitions on achieve 'XX? given sure steady you offsets the eBay that; talked to that better? What perhaps of if I'm may and be a adjusting to just degradation you the want some maybe

John Rainey

XXXX, eBay. is and in Sure, post start this of there well. and previous of with sort as store lot relationship enter can a as in our I'll things chapter Bill we Dan next jump

about opportunities had that potential we're excited platform the some is mean excited and the so And in future better today. integrating that to the of it can out about there, what make that are partnership and than even our we've acquisitions ones

into area -- dollar continue is next a the to about we remarks our in that of the percentage before, business. into as platform. that dollar I back of growing slightly certain business didn't year, was regionally, quarter, portfolio, brought And quarter, think it just But if as us as respect talk my this were I related four every more you're incremental monetizing of more, model cost marginal operating and As most we three it's should terms we the much leverage PayPal, very P&L talk volume expect or what do revenue scaling were we prepared well if the other profitability a we we're -- Tien-tsin, mix business. that's for we effect we realize we that our more. of we previous this our of cross-border, in in look were total this platform down think in have our you economics it concentrated to the business you things know, go from for because a only the we we've on or can where of is a that areas, of said about in With that a like as Braintree In often a achieving when look takeaway of seeing that's an to our at at that. diversified is part I continue before. in recent we $X.XX; of went parts guidance but in aspects up as for non-volume our ago see from to Venmo marketplace, you certainly haven't that, of sort and that growing product-wise, to years more button evolve was lot a on in both dependent very that

despite lucrative business, operating cross-border you so is mid-XX% is our about, a and expand which rate. say seeing piece eBay at and the growth fact earnings the smaller us thing can a same you're of to our overall continuing of And part our margin portfolio; grow a that

confidence very excited that we're So XXXX. gives and it about us going into

Dan Schulman

things Just that. on top or of one two

growing of two X to very we in we the years And per to engagement million of year who forward. forward we've and the just actives net million over active the a took million I X that for those growing position as X% high-end this the as quarter engagement of have Bill million that XX%; look you are numbers X market, look years and introducing that new year the when growing feel carefully saw percentage XX so. new that about and coming pretty the which last by underway like net new X.X%; some would And ago, or we are now; X And I well. You the team of to and some million our highest do, now. that's as your clearly of introduced that had know continuing to we that; adding bodes time, into right the say many engagement or you see million products X And services in new at quarter, by up game time you our by ecosystem we for guided same right we're good the new ever actives XX interesting probably we partnerships accounts. first digital million, look at us well three to have your net at payments


Our next Fossett James comes with question Morgan Stanley. from

James Fossett

feeling that see how from what can your fee I acceptance guess, little at kind in monetization the we you're about may forward terms some initiative? Venmo -- should where Thank I'm a should wanted tipping evidence transfer moving you. and circle give of like comments particular Venmo with on instant contribution like Venmo is to anticipating the that dovetailing of of that structure; there. point of that? of to back how a just if should be color think increased to to Dan, And -- you're new we that us with I particularly drive the we commentary, wondering we efforts you

Dan Schulman

are not year-over-year say growth but but month-over-month it's and of progress just substantial the numbers again, numbers, first I'd early all, month-over-month we gave numbers.

see that's the acceleration can you So happening.

large pay strong integrate pipeline might are merchants Venmo up expect have you lining We a with the to of buttons. merchants, very who

dynamically all obviously to accelerating pay smart button it also they that are Venmo button capabilities these and is to a monetizable then we're benefits a think PayPal if services Venmo rolling with consumer present will that's And we doesn't and Venmo into I you'll so checkout out a payment engaging really about think that bit. services where also We if a point. customer see offering, monetizable a value-add my Venmo start can that's share/split on just to balance consumer important them the or the is those quite act, of able you look are across have offline, gain to think those I a them to merchants card it that a they and my Venmo to how Venmo as online being for instantly take able and be balances Uber; come for spend right them feed, Venmo back use access well. to value-add your it's on value-add about to purchases, is to into in as spend able a their be A

financial that. be looking very careful to but an the everyday momentum. are but anything customers use life. There other types add and far, really are more would really we that put been we're value-added customers Venmo put restaurants, you're with services the start we're real the are that our Venmo in Bill, activities more and the out so these just with engage customer's embedded we're on to of pleased we the I the services so part And becoming sure have forward Venmo efforts services things you we've groceries and there, that? digital we've of with and at services out going that pleased and mentioned the we've put engage out more seeing

Bill Ready

as is things that recent pleased usage that there Uber their growth tremendous most which it seeing addition for points done with the just the buttons, pleased platform how dedicated certainly they're to we're expectations with seeing simple of to add given that we're really around with driving quite we've pay well, Venmo making with high quite the how add rapidly quite this a on but own they're grow. smart they to it engagement outpacing are and like like in payment would I the we're Dan's example, merchants for integrations

Dan experiences we're as And for to the said, lot with but Venmo, monetization to providing to merchants of cash multiple providing great users them; by ways things with we engagement those a like to user card get us. them and experience line-up we're as we're happy of new merchants really so continue whether pay are the really that or driving to seeing together growth the value of money and great make make all the those bringing great instant great new for for so out;


comes [indiscernible]. Our next question from

Unidentified Analyst

topics the one the of is of day. partnerships on is of topic the Dan, which for you this one

converting and then two You at or the digital enemies a wallets. on are large least that can the also of if Chinese have in out I'm sort that friends groups be there wondering into and merchant of you history frenemies; would acquirers, global category, comment

partnership see As Do players? you you think is about path there converting a with those partnerships, PayPal? path to a

Dan Schulman

also one I that those you friend Lisa, partners to of as be a into consider well. also turns

buy PayPal XXX,XXX now on -- where them mark difference purchase an those platform from XX,XXX talked at open So where it's just Chinese now our the outside China. purchase about merchants, with their we've started and customer China opposite being pay seamlessly whether accepted XX PayPal you years, know, of we've last night partner were Chinese and Chinese I can of who outside choice consumers today some We moved of being over and some from two is to support as ability PayPal we've be consumers with towards others merchants at PayPal day and as from And merchants ago. we enabling work done years XX moved to that I their merchants. leading obviously, the allowing as to major the of we've Baidu where merchants consumers doing think with of two think and players in I like China today, have to Chinese to partner, partnerships with outside people looking [indiscernible] we're on international the merchants. and

all think that countries. can in for and of China facilitate those we cross-border we So players in other

of we we've of very Again, work against partners First partnering PayPal, there with the merchant terms with acquirers, not anymore, history years we're that together. a acquirers, is number close Data case long ago, of In actually First a hand-in-hand had is Data. merchant

to know add that? want do to you you so, -- Bill, And

Bill Ready

in Dan of with of how our open provide really as one the we're that we with a acquirers are Wells bring Fargo, able partnership number with. it's customers with, in we've describing were we that constituents merchant partner acquirers on of value volume. and how work of those platform more as to have we ecosystem major focused and amounts is there another made tremendous gotten others, example mean was Chase, to we I others certainly in closer And can


with Wolfe question next from Our Research. Peller comes Darrin

Darrin Peller

off; first, million you mean new start active net per guess just this XX X.X I year. me million annualizing quarter Let accounts have I

First obviously call seasonality you just is any follow-up there there is quarter or in on it little -- you or great then, the more if all would it's it's whether year was revenue XX of it great. had, terms of now That is the in can give unusual were either a much better us all, million share rate higher ago? was than if I was be the the know stuff in street that we color why -- Venmo Synchrony this than that's a line, run reason And seeing? we're OVAS

Dan Schulman

quarter. So first nothing on actives, the the unusual in net new

was remarks, iZettle accounts came million came As nothing the from that in naturally. that in his there, John acquisition that in mentioned X.X

merchants million over and now XX on the have platform growing also We nicely. quite that's too

about going So, these new rate numbers over be will types reason year to million, see this be XX no we clearly run being and of for forward. that, it we our we thought projected

Bill Ready

it's more not a those has PayPal net years the the silver card we all of that these platform, and the engagement getting I add bringing channel And like issuers users that One composite checkout PXP, to is significant for seen going two engagement experience deepening through digital it's with to onto together. all these platform, with more them things together with Touch, of are these being things the new great a things others, and effect and what's bringing Choice; combination great started users is when increased of drive to that couple started And in we reductions; a that, would improvements there new you've actives, of -- anyone continue bullet consumer sustainable. adoption just seeing us to last back years part been

users engagement think And that we're a so of as see for we increased in Dan new new normal that platform. we the is driving the said, there us slowing increased that way to terms something down, is it's and that nothing

John Rainey

merchant that with acquisition is rough Swift working how we've growth we're would value-added be our that seeing performing, and other things Recall, really in that's on capital -- growth and influencing there. really the three first, we're Darrin business. are services; of there got good significance probably great And pleased order just of

Second thing have still the portfolio I performance receive U.S. where then portfolio, upon the the and arrangement that with entities performing I we we profit while still with as launched U.S. say would would in I would credit well with very that -- that consumer is international it's we've call depending we're economic is venture credit and And very consumer have very credit is sharing portfolio. the we well. out say pleased lastly, an consumer performing that pleased to we And sold that, how of Synchrony Synchrony benefit that.

Dan Schulman

have for Operator, time Thanks. we more one question.


from question comes Final Terry Goldman Heath Sachs. with

Heath Terry

ask think those you earlier, we've those -- two you qualitatively out or partnerships had it as it's TPV success try lot we've to revenue guess last as over you relates and what too Amex platform. a sort kind And couple years bringing you've What guys have? then, sense pointed probably But been has been from it it of deals of to just I how there? us seen as thus partnerships lot would deals potential to and that curious the to far? do relative scale of that have the signed, impact impact seen an much on partners those of have if of a can of Dan, Walmart of much of you the in how to the impact give a that and relates of quantify those? deals onto try or and kind those partnerships seen the signing

Dan Schulman

partnerships those them say multiple So the come are in a I of couple say so we of partnerships would I still years. past to of a of These just announced we've partnerships. quite speed, that take number up and seeing some in would we early impact they to plus; before quite the start all year general, quarters are over from

retailer, -- points currency, our digital million largest We're great be their quarter are over use onto with for issuers as all kind channel that you'll purchases come got a the my of take just or has able other a maybe American large, to several the one the fiat them the a of able giving play have of I use so mutual we can Express them if every it's combination and future. are reward to those quite be points, so time be across right. the and have that they basically all we look reward of merchants, going us, them and with amount be turn rewards Those of them merchants, early four the the going points, well. and they now, use very largest beginning their one their partnerships PayPal we've can having integrated next onto to growing into you of announcement part platform. merchants and a of lot announce some points anticipation couple but to would relationship points a can points and who say almost now where lot onto them. PayPal marketplaces, nice ongoing issuers the at in would platform at the on any One major right different aggregates is days. platform them and and the customers make partner those and And be a quite it's that come of out tremendous from we're are that the example are -- good qualitative at rewards we're rewards a -- This and very, coming it's Amex And some of to being see Walmart place new aspirations, underlying of to of first to customers for would perspective, into only more world; of I and of strategy things users see, the see those points. that relationship that of momentum reward and the in those putting to platform rewards be merchants with is partners. use board only to the And they that instrument of all -- we as distribution potential an is XX be leader the largest financial utility, not a a say as quarters our our

good So could joining will still early innings of in would we're for Operator, the -- thank you. us to months now the thank ahead. look for Everybody become seeing they of We but I talking a terms say right to you deal us. of forward what be very success over for us. you hours and and

joining. So for thank much everyone you very


Ladies and may concludes disconnect. you conference gentlemen, for thank in today's afternoon. participating you Everyone, now the This call. have a great program,