Dan Schulman CEO
Gabrielle Rabinovitch Investor Relations
John Rainey CFO
Tien-Tsin Huang JP Morgan
Lisa Ellis MoffettNathanson
David Togut Analyst
Colin Sebastian Analyst
Darrin Peller Wolfe Research
James Faucette Morgan Stanley
Jason Kupferberg Bank of America
Call transcript
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Good afternoon. My name is Mel and I will be your conference operator for today. At this time, I would like to welcome everyone to PayPal Holdings Earnings Conference Call for the Third Quarter 2021. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. you. Thank Instructions] [Operator like your now call, for Ms. to would host introduce today's I Vice and Corporate Rabinovitch, President Gabrielle Senior Finance Investor Relations. Please go ahead.

Gabrielle Rabinovitch

Good PayPal's for Mel. us. XXXX. you, afternoon you thank Thank for Welcome to third Earnings the Call Conference quarter of and joining

call the Operations. today Dan are slide our to We're and providing on are and Officer and This Schulman, performance, both Chief and commentary. some accompany call the Rainey, website. Relations being a our is Joining Financial President we EVP, to CEO, Company's on call and webcast me available In conference our also refer non-GAAP our John Investor Global Customer presentation measures. our presentation discussing will

measures will find conference our of guidance You the involve XXXX. in for the forecasts, forward-looking to make statements and these presentation quarter reconciliation uncertainties. for the full-year and assumptions our accompanying expectations, that risks our call. current measures and XXXX on outlook this These and are comparable and based Management can non-GAAP the statements GAAP most fourth directly include

statements. may these materially from Our actual results differ

You results can recent our our about find Form-XX-Q, on report other uncertainties, the quarterly Relations and filed Investor annual and Form report in on XX-K most website. affect could with more factors that on and SEC information our risks, available

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

Dan Schulman

today of our using to Starting the make in our of longer continues that next year, and very with Amazon, journey trust increasing monetization we're U.S. contractual the app the time, apart from customers and is merchants to the beginning with This obligations on purchases everyone Venmo Amazon now efforts the Venmo results eBay will significant our an marks accounts. is, platform line moment Amazon shopping a in pay new Venmo overall existing for the joining agreement. to attract the and to our expand brand us for we're and rest with set mobile Thanks, the be The were obviously, at their to and no exciting with customers Well, able first generally partners, with us. big our two-sided thanks with Checkout. enables and now operating associated Gabrielle, footprint news enable the and teaming constrained to up by us our that scale market results, of QX expectations. in

Our total TPV times, now approximately payment by as XX% volume eBay's There's X% a overall declined to on basis TPV. the quarter even and billion. in our grew XX% is spot of $XXX

spot with of on grew Excluding XX% eBay, basis $X.X annualized our rate volumes run a trillion. by an

million NNAs Our were our remain another million XX% active new reaching than accounts million. for bringing active merchant XX in including accounts, deliver up XX.X on XXX XX net and year. more quarter, to million accounts merchant year-over-year, X.X to track million we We count the the total added

Importantly, $X.XXX sales XX% to as and $X.XX, continue But diverse our quarter transactions a billion, less and EPS revenues even we represents eBay grew This so, by QX. spot up growth growing invest drove initiatives. heavily than even total eBay, a on expected. XX.X in weaker excluding below of delivered and for in we X% revenues, our of now than slightly basis. to double-digit back-to-school as our to accounts non-GAAP our we our growth the expectations Revenues [Indiscernible] XX% services in travel grew times. in XX% products was active were

merchants utilizing of checkout XX% platform most is higher accepted our more XX% wallet, checkout, largest digital other is on at the the than PayPal firm merchants. options. PayPal with global and than continues conversion drive to Our PayPal top substantial average, value checkout X,XXX

Valero to across XX follow the U.S, Venmo are of thousands Airlines, are Amazon very to say United and PayPal our their QR GoFundMe for and added with in flow, QR news, launched Walmart codes coming marketplace our gas and that to payments option addition their pleased months. business, In PayPal as now to and both to grocery we their Phillips their stations adding the recently inflight. checkout presents checkout PayPal

rapid seen capabilities, who in customers we QX merchants Since Pay $X.X XXX,XXX of alone. Buy processed Approximately than launch, TPV, and Now, transacted Buy our our to the U.S., from Pay million our checkout Pay with Later Now, Buy Now, pay have capabilities have over QX, more France, evolves more our Later quarter, have own we deliver we our Later terms, approximately on pay products. value consumer late Pay will Later Now, on consumers, have Now, positioned billion Germany, $X proposition delivering Pay mission more while economy. UK, As to Spain. Buy use your consumers upstream pages, this Now, fees Later now adoption XX billion Buy Italy inclusive Also an their to in expand Australia. with than TPV our on the very In best XX,XXX ensure we've and X.X Buy that product eliminated in than in of digital and times build Later million we Pay and to to

will installment the This of initial is purchases periods expand we global to We paid higher-price longer available XXXX consumers first later already spread half seeing plans, to where in allowing time. the great over longer-term accelerate our success. include payments in a Germany, of in Pay in Japan, solutions are important Now, Paidy, of will of Later acquisition markets and e-commerce strategically our world. Buy platform, market and largest a This the X Japan. our momentum fast-growing, of provider portfolio two-sided in completed We

value of ramped very seeing globally. XXX% the trends new proposition. Consumers now are on engaging app is our App, PayPal new the which discovering We with positive and are our to breadth

assets and card offer lift increase from consumers with in our crypto, is deals wallet is also our average twice transacting checkout of XX% and show early, revenue digital account A users the first-time lift enrollments, still users that staff. initial driven new it's in XX in cash Although driven XX% that only it per exploring a the times users. and results a

products, and year, increasingly connected break we're in refine is equity help revenue deliver to 's par to seeing Their features scale most launch quite It Venmo and momentum billion the investing Venmo's with adopting capabilities. $XXX million customers, digital rate consumers and and reaction we with expect and exciting navigate with more XXXX. franchise run XX new TPV. and in $XXX year, introductions. start than at on app, in continues more joining records with are PayPal all including on entire pleased track to and of achieve more not more our accelerating could U.S. growth product next is and Even forces commerce to to Amazon. our an about impressive milestones the million journey, to positive customers we lifestyle. and be this this functionality are is We with to these its we will see continue and Venmo's just expand accomplishments, more initial

we was at positive cautious We as PXP and still be to very XXXX. this year, XXXX the always year, its point QX this about half going we margin expect enter of our we be while are healthy as to revenue think low business appropriately of and Venmo rates. Back transaction growth growing

in course, the are medium-term rate. likely the more year, holiday a the all prefer shopping that consequently, and will in the in of depressed do shopping, store, industry chain impact and that remain confidence revenues still a quite rumors digitalized managed services, encompasses and in the accelerate next our almost moving next the and of payments although and guidance. at their participate like our delivery few these quarters, we more We moments and to rapidly confident of people connected, migration spend few sale economy confidence issues in news. logistics a we way through with and made expect shortages payments, be that are financial I'd is on as seeing to we a year, consumer last over impact merchant of based lessening stimulus temporal, the merchants may is feel our global reopening, it's We payments commerce. from recent supply to throughout clear consumers base, their weakened the absence with

all that the Exploring leader criteria. and meet has capital research and to connected opportunities more shareholder the financial, is But market obviously, economy. others, brand trust strongly clearly of a vision potential value be very the deals will a Our a relationships select meaningful of in and our PayPal allocation strategic, and supports few strict enhance scale only to our regulatory digital economy, responsibility.

of with an in environment in We a potential tailwinds. favorable to are and industry so leader number opportunities, an operate be market fortunate with many a

our We so will against in in plan our game remain continue rapidly John. that, options today execute call to to With I evolving we tomorrow's the responsibly will are leader ecosystem that the the turn world. over and we explore

John Rainey

for tailwinds began, start addressable payments. macroeconomic consumer challenges, a Only behavior, These including contribute powerful of like on the payment deliver e-commerce the remarkable consumer by $XXX now take At it increasing unprecedented that solid of and accounts, $X.X in that and partners, make EPS, seen by landscape opportunity. for flow. you shift customers, volume, commerce growth penetration advance expanded cash continues inflationary across annual step a and everything trillion. pressures, experienced, a it's operating have to better in this sense free the to XXXX, There's cash occurred secular our we've years and and time. we're active quarter. our give same thanking is pandemic we've influenced engagement, which a complex in accomplished TPV, our to The to significantly to chain of a profound displacement in enduring Xth later, and Dan. and employees since globally indicators, supply I'd rates characterized been help key years performance To the in and results position accelerating to quarter us of leadership reporting global environment. our Relative concerns our we've has reflect backdrop to Thanks, varying by dynamic more a activity reach forecasting and The scale during and revenue, growth are PayPal We're short-term XXXX. currently which million reopening to helping time, significant for back crossed XX challenging. sentiment. X factors we related took

strength quarter transition. in from pressure acute Our where these year-over-year payments performance we of and the comparisons tough results eBay's our business. platform, Notably, against third demonstrates diversified scalability the global most the our the quarter reach, and of we faced our delivered

currency and For basis. representing growth million neutral spot of to billion XX% the quarter, versus less XX% of $X.X revenue both we are contributed on $XXX year. revenue, XX% reporting and than revenue approximately eBay Marketplace's X% of total a last declined

XX% grew average this XX% respectively. compound year-over-year, quarters notable. also rate, context been and second I X-year on for performance provide at the X quarter Excluding Throughout relative first in last has to to rate we some expectations This third and eBay, would the for years. provided is our XX% July. XX% when revenue strong in like guidance XXXX, annual consistently particularly late and growth growth our

and due Variant. travel related to July. the in volumes trend and This June reversed September Delta to in First, August then strengthened concerns

than Second, back-to-school softer spending had was expected. we somewhat

growth and towards exited the revenue decline our quarter the grew growth performance In had overall of This predicted. the quarter, than well the XX%, at our rate revenue eBay in moderation end third steep in we guidance, $X.X billion. transaction saw While the was lower the reflects within a quarter. tail rate we

well in consistent totaled quarter XX% X.XX% an was quarter, the take XX% in the decline in from with by lower by value-added points second grew XX%. as resulted was mix revenue primarily quarter as X.XX% take of the program. the of contributed a eBay effect decline rate of a grew exchange basis and was take point from Excluding third of rate remainder PPP In this performance factors. QX A and year. accelerated decline. rates, driven revenue XX recognition to XX-basis The quarter, from last loan eBay, eBay merchant revenue the approximately was which currency payment servicing to million. volatility Other Synchrony, to of growth and The in transaction This services was $XXX increased decline X% growth bill in by rate The compared reduced mix on these this last driven transaction fees, same volumes. foreign blended driven year. volumes fees

aggressively new based macroeconomic year-to-date, XX.X%. X and rate quarter and relative a TPV. in pay now represented last revenue. product of credit we X XX% in improved to end Transaction and last expenses as releases, to on of history. year. for with technology These and Growth lowest pay the basis reserve consistent performance. our our at strong second XX%, points origination of our in resulted is points products, in card quarter, net apps rate XX% primary We and net These portfolio, quarter. this quarter, increased to of an Overall, both quarter the and and UK, of the for and To Crypto XX of was hold, another This experience year. X loss digital a inclusive strategies. margin continue point of points, representing our including performance In $XX buy, of to exciting representing and TPV released XX% XX%, from billion matching of the in loss in the and Venmo originations losses initiatives, support rate originations resulting launch a installment had transaction third increased was cash receivables in spending losses invest sales volume-based our and increase increase. and transaction the customer XX.X% of our on back was PayPal buckets our QX of expense the loan the with million ended in trends, $XXX last our declining pace acquisition duration key Transaction mix the and income a to credit Venmo, more short-term of Strong wallet services, advance The resulted coverage level million, including of third we XX% the expenses development, quarter, the Venmo, for expenses. volume basis we to The of essentially in with of engagement growth was driver installment reserve benefit in effect sell of quarter, stability and reserves. expense basis performance continued. activity of X-year in was our margin with portfolio provisioning In ratio versus basis operating operating the On in last I'd grew our non-transaction our shorter loan expenses credit sequential growth XX.X% $X.X XX% revenue, operating related compound was drove rate increase and on income operating of growth basis, transaction XX%. XX.X%, annual a introductions, non expenses. Crypto increased the related basis, of non-GAAP and year cover and represented rapid in cadence operating innovation the flat an marketing, PXP goods like from

cash, non-GAAP quarter quarter of the $XX with equivalents includes cash headwind $X.XX billion. the to the margin X% dollars. This from investments For We EPS share per $X.XX. decline grew eBay an transaction Marketplaces, in ended approximate and

XX% thoughts billion, revenue. to well to I'd XXXX, like In the free flow $X.X as XXXX. XX% cash of of for for outlook representing discuss grew now our our as remainder preliminary addition,

revenue expect XX%, to now X-year range eBay, revenue we now of This $XX.X growth increase approximately we XXXX, to XX% compound $XX.X expect in from XXXX an of be For to and rate a XX%. of last billion, represents year. excluding annual the grow

last margin from operating for as in year, This negative our top non-GAAP expect which in eBay, the as reflects the a was our of be XX% strategic XX% margin the basis, We is the throughout release to year. year, spend of offset dynamics performance line history. highest our resulting last be growth. investment this XX% We X-year approximately to transaction to the In our year on the now the by increase expect growth EPS $X.XX, reserves. benefit from well

In earn. $X.XX revenue $X.X flow approximately flow, we expect for representing free generate addition, free billion cash we of to of in dollar every cash

to revenue at our update of range to in be the guidance, fourth billion. billion represents result expect $X.XX midpoint. This growth a $X.XX approximately we As this the of to XX% full-year quarter

EPS, X% in $X.XX We also representing growth. a expect non-GAAP

eBay's recently, to and we on and the quarter, year, our within expectations the this impact payments of different the third than to came still revenue quarter. somewhat expectations the beginning deliver revenue going the additional for prior our while had the came the increased While from significantly. we guidance, our pressure we what we believe contributors the in with growth into for relative Until expected absorb could quarter, consistent our headwind migration were

Towards the off fourth growth slightly than began rate start lower the our solid prior remains a quarter, coming expectations. little to rates We're below end see we of still in growth planned. a the to quarter, but also

definitively is with more we've complexity much goal additional guidance X.X% has Adjusting to this growth from we the pressure the for in year. our to the the been and environment. of retail may had cautious impact stance At revised the we've for and outlook the season say provided labor eBay start supply the to led tried holiday fourth pull-forward to quarterly more transparency quarter. responsibly At this stronger guidance important in time whether annual to addition, market to quarter, emphasize and reliability certainty. activity. forecasting time, throughout balance this the That revenue since also is of days, chain In July the us In about a we providing adopt said, persist at improvement last improvement. year, same holiday we of from turns difficult year, in expect point consumer the to at XXXX, concerns have revenue initially now be of actually if lower Relative our eBay, which recent it's or seen for provided of ahead a start will expected. XXXX pressure guidance of the than the the despite

taking a are with view been implementation very the let short-term The to digital and headline new of are what step we in well. positioned of regardless our our initial business our resilience activity. absolute -pandemic has discernible in and initiatives adjusting wallet diversification, been on remain are and successful no on track of us our unassailable to very to very But and strength, our be key outlook. to strong, relative clear, performing We and prudent pricing U.S. new an to me offense level, be the impact experiences strategic underlying has merchant headwinds. on pre The response

sustainably indicative of cash our business Our strong of displacement the in of competitive stronger. at scale deliver effects a been e-commerce in never has of positioning penetration as network our digital growth intersection leader is ability secular payments the our tailwinds the powerful and to in global

As XXXX, it expectations initial for relates to we're share for our of to planning internal our the like making and some purposes. assumptions we'd thoughts

in of next the currently investment process are year. our budget We midst and resource, for planning

likely well the we have as the expect some the inputs I In the how lowest for have high status preliminary we'd be growth today, teens. more a are quarter exogenous and as measures payments next of also It's growth [Indiscernible] as already first to and as of On revenue migration, quarter. exit it the important year, Dan a this basis factors had XXXX, on stimulus XX%. we ahead. for If expected addition, discussed, in that point the important we to the revenue of year year our also put difficult to Due to the trajectory about growth. expect well cadence of it we earlier at year, our anchor appreciate eBay's

growth of we to a healthy XXXX, revenue year, will with XXXX in rates guidance. that a then ahead at to and growth rate medium-term growth line revenue by margin. our or expect exceed for rates industry through exit are our to plans accelerate the Our growth Similar

of years more than our we've investment innovation EPS like still I'd about planning that past of consumer In early opportunities and significant accelerated doing, priorities. we growth growing We to network year. our when see to merchant XXX color on That product pace next guide provide the we Given some results across the ongoing better thinking our will few report QX we're serve we're how million key accounts. it. said

X in in next We digits investing we and for impact expect on to It's that single also support XX% relevance note year. expenses to our to base the roadmap, a customers, product increase high an this on engagement, advance are transaction-related XXXX drive daily grow year. factors our that these important initiatives, growth have grow to our our and will will non EPS

and will we realized the the effective First, Credit second, lap year, from increase tax from to lapping time the of our release X adjustments. expect the of tax favorable rate benefit we Reserve we this

one our to one given clear are to believe so we expect appropriately. path opportunities over or our away at these displacement don't on when? growth Investor difficult to undiminished guidance even as quarter, earnings be at see investing we that overly opportunity growth will the to and in XXXX of while a and result ever approximate and an confident want XX-point margins we We're We're we it's playing space at in forward ahead expect headwind of very reopening long-term, in XXXX. that expect our we our as We the strategic rates in to we increase pull we cash immense be more We the to also eBay, earlier to true occurs, TPV e-commerce in medium-term year provided continuing this that most our from to the into items the before, objectives. next, an us accelerate. That from business transition pace, and X front us, important we said, move than well-positioned and and don't see the non-GAAP remain behind year invest in this largely year. to is We revenue in witnessing financial Day certainly that focused achieving the the capture

years focused to tailwinds up digital X-sided the us culture, and commerce, in the backed platform powerful set mission-driven by on come. Our execution for success of and now,

spend I discussing capital our allocation. to it would a turn I like moment to approach Before Operator the over for to Q&A, back

acquisitions free generation. of flow. Inorganic creation. characterized accelerant powerful growth to inorganic $XX is our achieving we important flow be generated in opportunistic form share long-term priorities, billion in the in we its opportunities value cash continue the operator. on are investing shareholders $XX.X growth acquisitions. time, the balancing nearly to not and to that, billion our to to allocation our We the by committed that drive billion into to outlook Since At shareholder remain executing shaping to investments. medium-term separation, note in repurchases, disciplined capital to does $XX and same our will returned rely our please organic very It's strategic plans ahead. both to and turn future position. cash leadership cash back Operator, allocated approximately a of in will aspirations. cash go payments, approximately We've and business advancing With in I Our


just the a Thank a [Operators one to pause may a question moment question. for roster. Instructions] reminder, follow-up to We'll compile the return As limit queue for ask only please Q&A yourself you. you to and

with First JP question Huang comes from the of Morgan. line Tien-Tsin

is open. line Your now

may your ask You question.

Tien-Tsin Huang

Thanks about here, you a like I mind just the are wanted M&A advertising? But this said I deal large ask market wanted on mid-term, on so Pinterest not adding John, and appetite assets you I much. noticed longer-term not hear Real know, a to outlook at Amazon on news. to a revenue to to thinking sources if is pursuing talk for rumors but like longer-term about I deal you hinges on your don't exciting year. know the just lot time, If any there? a ask counting that with still do Thank you. your you're different if to

Dan Schulman

then that in this. I'll chime can Yeah. and for answer John on all

merchant into for over that the provide and that integrated been codes, Happy purchase start focused put app to the an to kind for in big obviously the side, one fully integrate take at journey you and the we're step and PayPal little just PayPal on we've their acquisitions Look, to put everything post-purchase, a overall acquisitions to now on like from done part all into our play may strategy, process for platform side, engaging consumers, of help includes that what a essential cab, of be going shopping that's and beginning because QR into we've everything that context. the at the essential of me the charge consumer merchants that of participate shopping, if product forward. was now Honey, to and bit Let are done we picture with deals, back, that on want additional look everyday years, into into and economy, consumers and platform comprehensive they Hyperwallet whether is we'll our payouts internally merchants. our [Indiscernible] App post-purchase X it which past in App. our Returns app for iZettle has our becoming

initially So executing, into our saw. we what above strategy, they're many of them well

overall, here. been it are focus but so we way, look hurdles. has truth medium-term remains the integration look that likely that [Indiscernible] been I the I've to deliver our to we that, mean, do terms or smaller large to we our partner, small, Some How little will saying to doing either very higher acquisition couple acquisition, of us and our of M&A know, integration it's is of every in going distraction? our large specifically, forward. and, a to haven't efficient pleased with look we Well, they at our guidance. philosophy, for but something acquisitions. frankly, are in X inorganically single hundreds acquisition high-quality have our for done the be any their we we few years. In a way met as [Indiscernible] ever over look and build a reasons, I rates not buy, and and is They that large were review I'm those A gone a is at event year. and same. in of want the you to tough much we assets There's question, We're have here hurdle strategy or accelerate areas delayed acquisition The more on a various year to going John it might it need and the to we on growth like going in haven't integration? our because your not to than don't never do a they strategy.

the we've of and look medium-term of strict supplemental cash between to free investments years. guidance, year be sheet, at acquisitions $XX to couple and that billion cash can $X the going to generating and mean, But strong are that you $X clearly, have disciplined appreciative a incredibly billion forward. anything acquisitions All acquisitions a on balance manner maintain lifted we're it. our same add? flow. our last of and are going that I we cash-like John, We're going over we got

John Rainey

same management over over the than are we I that's touch we the belief this X capital organic. believe why it, think responsibility X more want you that But can far lot arguably the Dan. have that years. have more activity create said there then but take plans this us. out hands Tien-Tsin, are don't they size as creation, one and have rigor for that important, and case than we more if of a that's an serious we years are lot the come that of out But we we a Day to shares opportunities value just That that, around at what in around add, but nothing opportunity good the last those, that, the entirely If create that it it's should then early so in on of I explore we even rigorous the the so. think at as we growth our our sometimes, we to this us, a that's that plan hurdles and Day so here said, may and we has I where at look of our years. next team in deals year enough. would to opportunity every X and compelling part realized our do think very But do for value that out Investor allocation laid so those laid a we to that matched and just that, covered most entirely remain and Investor of next value-creation over be very organic was there

Colin Sebastian

news helpful brands given economics is we and here Amazon around how you Amazon, went checkout with that and might as marketplace over big deal in Amazon XXXX, so their very can congrats pretty maybe it the and other to expect be services and are there [Indiscernible] flow, So protective expand agreements. much. Such with similar the to

Dan Schulman

Colin. question. Thanks, Good

say I'd about number we operating We're one of eBay the to restrictions things all, marketplaces us a the is some prohibited the with First seeing of either you're open working on agreement. and talked to up of to that. from of so, early of of possibility the add doing going

eBay us up the You volumes. and extremely Ali are getting team an working be with results timeframes. is launch now. seeing and what the through we're the with are and These will of in the uptake a nature. we what being and right forward the continues as to latest of I significant going through Python temporal are with eBay we're results. AliExpress, is like much what terms are about Amazon example this still like expand about our that talking to But There permanent We're is with these a player of e-commerce doing to space, us phenomenon more able in Walmart like really working obviously closer closer that

we're this we quite increases at on key Venmo revenue pleased has one and substantially with team this checkout, of marketplace, for Amazon into the if be to is a with this think get we'll together large It Venmo. U.S. is out both journey I amount be to go as to we venture of of is the eager that this. at very opportunity market focused in on but this. still moment with Pay us wouldn't beginning X Pay addressable able together. both Obviously, each to where forward. our we're of that in you share the have obviously Venmo Amazon X, the the companies are the teaming for the about Venmo area those going teams, with on on more We of drivers couldn't substantial working market

to right that next the obviously, at year exit the doubt will on, a this That has no this been and obviously rate margin a transaction growth Venmo be this deliver track Just as point taken level. year, that team, I Venmo sure. journey on and But think punctuation the major about million is $XXX Amazon for positive. the is an accelerating partnership with even milestone to will for

John Rainey

the quickly is community both and the that is probably talking and other what mean be just that side quite so results, I'll It's tired I we but that eBay future. simple Dan had, not more of but so about for we we're I this investor add about Colin, real appreciate not of are, the excited that. it us eBay not getting allowed the coin. steps and than arguably that this and would we taken had as this bodes as


Thank you.

Ellis from MoffettNathanson. comes Lisa line the question of Next of

Your line is open.

Lisa Ellis

new surprised further, apps. focus on Thanks. Venmo growth, made the Good maybe afternoon. you? in a elaborate I'm far the out more early so engagement that you going can user bit the maybe PayPal have prepared on I but seeing comments little know give growth, some roll color on aspects and remarks, to Thank some of including a impact the you. etc., you're you

Dan Schulman

voice. Thanks, Yes. hear good to Lisa, your

of time, hope. it, see way redesign. giant you I'm got is, PayPal anytime complete I market, you've work done is people exploring into [Indiscernible]. app in or first-time lift and did times it's into that into at So sure over mobile. up through far what pretty substantial and line App, declines and user, XX least tab discovering of and amazing. to seen shopping, that that integration of really me, [Indiscernible] Pretty find really massive, you accelerate, our right. people app you like you then kind seeing, the and not starting On what full Biggest by Honey starts we've XX%. such, to put our first on Typically but [Indiscernible] a it's deals Crypto, now We've really, this went put completely products something the and once like of revamp surprise PayPal out things consumer that, is of have PayPal to the so we in a Honey service as is the that are kind their wallets engagement the we

was card I'm Growth Our card. happening with excited In debit but kind about Because see fully discoverability thrust, the then to XX%, both ever relation week. used of side, obviously our and can online, strategic for Crypto cash be strongest week like October, card, a on users and by of score and last what's driving to big and middle quite is cash it's the conversion that, on is this first-time the balance, it of in really there's that omni and offline go globally. up, remember, and enrollment is right? this and ramped part

products We're get So this payment where is do a and our dramatically, lot move claw there customer expanding of bill leap back of was forward. services. I going to improve then and it. as, are start early we This on a on our we into to do we're experience. quite how discussing were usually putting payment, early your bill [Indiscernible] expanding the to and okay, think start to Look, to that forward things

think going actually to But we're really big small to We be it a to just of feedback big changes looking speak little keep increasing. be just and introduction. a relatively was quarter-by-quarter. the at I are out making getting this bang turned it I didn't on bang,

that equity launch more, customers of products help that Again checkout next the will but next engage early, for look to putting that going services quite forward. drive are At impact and the that's savings already growth X and don't that we're start users to months they to John and us excited lot year I why investing. are times like to things like be only. versus put leaping that wallet and and We more high-yield to Schweich, of in initiatives and will only. a see checkout several will of to clearly begin we as ARPA about ramp, into on up the and more more place,


you. Thank

[Indiscernible] comes question Next

David Togut

[Indiscernible] question.

and versus quarter guide and return that third some But are you KPIs, guide, you the below out teeing at line the called at shorter XXXX, of your the longer into at down and these might certainly look you for lasting factors, supply issues of and that then preliminary strong broadly factors stretch comparisons potentially more at quarter like consumers for least, the how there's the confident fourth called guiding shorter-term are when X-year your and physical you've issues tough Looking short-term with some guidance in XXXX, to out chain term some X-year XXXX? of actually POS; model.

Dan Schulman

I'm let and David, going and me guidance John quickly about in confidence Okay. talk QX talk have our very XXXX. to about then our QX

and happening a engagement, TPV, revenue, you're is revenue and if on I Business and going business you metrics is of on of if talk way let forward less business right me right look TPV, our than that. right, actually, So less The look so is as about eBay our revenue, and our our X what's think X% now I now. at MS revenues, business. that just system QX, maybe our our going through about it's at Because X% just thing, the is and dropped, temporal It's MS than growth. really

is XXXX In That MS at XXXX up it XXXX. middle then I QX to jumps I go really years this was XXXX, XX% enough. look it because think it XXXX in carefully. examined I pandemic, If and XX%; is In was back X the of growth. QX this in of XX% interesting QX quite the QX, and revenue was XX%. our

is business MS going from strength to Our strength.

I all think strong XXXX which QX, transactions it jumped next MS, look will I'm MS, about at look interesting, same digital, is it we're and over XXXX. growing and really to continuing, a up last forward if leap XX%. thing to about billion it's I so MS XX% and was we Then that transactions, quarter year, jumped John even quarter. and like look seen in really have of in XX%, talking QX this on [Indiscernible] you QX did it in really, numbers, X.X in that if TPV. We talk and XX%, we our as in at XX% and these TPV this in at so are QX,

and back ago, billion, year go we are did in about transactions a up year the X you in a XX% quarter, a transactions If ex-eBay year-over-year. up our almost billion we're

were way our forecast metric XX%, right look up double-digit now. active, kind Our and third the TPA if our transactions trending we in forward, feel TPA [Indiscernible] metric medium-term ex-eBay is as the growth of that's a way so these Again, pretty every but in strongly is like are, I our every above second even was quarter is single above, quarter, yes, I row. guidance, and for conservative

John Rainey

David, the some let me hit a our couple of of points about here regarding outlook. assumptions

period some so I labor large or segment that that economy, So benefit versus next about basic of don't teens around there's we could baked or I here quick points. pace point assumption eBay. upon and so XX%-mark out of with steady that's fix not acute we've we a first, is what for high XXX that more terms eBay, with based see our the is similar of the think shortages, then to on and a what last and respect today, is be the basis that, With SMB make reopening stimulus there growth, revenue in headwind or slow time chain seen about to and to the the respect the to us think year more of the enterprises, a supply if sort you pressure likely see put of recently. that I'd some for is probably of

sort together a and what proxy XX%, we stand words, gave so and strong, take the for eBay is exceedingly both think revenue to to that growth to just uncompared business you XXXX. best going few how years, now guidance differently I with that's though, that it just where Said and forward, think in all today. [Indiscernible] If tying right the about we so our of and of wrapping the represents

laid think just We're after plan, very, go few we for net track. there, that on importantly, actives, of of a roughly basis to so out way I medium-term that revenue. back new $XX.X very that and X-year If the are the billion you that's effectively saying a weeks million the $XX that, guidance right right and we was


you. Thank

of line Research. question Peller the comes with Wolfe Darrin from Next

open. is line Your

Darrin Peller

Thanks, I just Hey. on of we're give you to business, new and the and color mainly guys. if to mature can little touch [Indiscernible] on also more wanted maybe more organic just inputs and the there of some of us the to that million guys. and user underlying, a getting guidance sort 'XX just NNA then growth keep reminding potential, net actives levels, on trends the just and The the getting first your long-term? really questions XXX in you Thanks, drivers of on of touched that. conviction

Dan Schulman


X release think look platform. we've in the quarter lot $XX.X XX I million NNA the putting just of remains and million then remember the a net down on we second XXXX, unlike So XXX strong time, the of [Indiscernible] merchants. quarter, years growth X I in you our put on years if a put about on said, XX% about million we in [Indiscernible] end X as companies last put to growth X this, XXX growing north mean, ago, net seconds and experienced ago and quarter during year. expect alone we've and on new from and had it, actives new since that we up of We so incredibly unbelievable, million COVID about year January year-over-year the in quarter, XXX minute a We're press on active side. far the we consumers think for I our $X this every on [Indiscernible] million the active new

Buy reactors in on utilizing the up seeing engagement that kind and new that you have so. of important platform the quarter, that halo for terms get so of funnel Later of So see places becomes effects was our just becomes more $XXX in about we so continued of Pay quite and ability inside is consumers rate, actually we're But normalize the a double-digit, million, actually strong actives churn even reduction of effects see it One That's XX% consistent important, if that the know bit, all and a service why now forward you in XXX, Last million. the bigger TPA of more, terms that of can things growth, top in scale keep little X look accelerate. drivers churn it, to of think that top pretty a and our even actually get you the is strong you'll of that's business. a new scale the net numbers funnel top our that We if remain but as are what so this but remain rate, Now, net begets but must to obviously again XX%. XXX bottom up It's and element right we excited really the from. churn maybe merchants we're funnel, the equally, in and reduce people as engage start improve business, the not what and of ex-eBay offline, are that I can come to bigger, confident to funnel, the about earn.


you. Thank

Next comes of the of question James from Faucette Morgan Stanley. line

Your open. line is

James Faucette

commentary, how to detail want Thank but if right sure now, have your should the fire forward. margins? irons in the know I in [Indiscernible] to thinking the all progression also through. your make about about you that initiatives is you trying you touched of think know of make how just all the going the you very of you things planning your you're this you're going of investments, much think kind medium-term with in purpose highlighted I and we Thanks. John, kind operating and color expectations around thanks but about that for that and we

John Rainey

business we and we to by I'll than our something up. tremendous margins ever that at and not appreciate of I saying discourage thinking sort punching hope a of from the of horizon, like We're don't now. of about in been costs acquisition over a today. got something would this, that's low as customer with very are I write time think engineering we've keyboard that a So can go Quite important marginal XXXX, have where think and agree dynamic think which that the to this return I some we've I we our secular more opportunity our frankly, margins about a about. challenging expenses that tailwinds. invest, talked We've the fortunate of get we year being ton start a there's is lose XX% can that, that that you people related XXXX right one-time There's cost, years, invest go to about is that people last like on around and spend code, that the and that's think but with the where our opportunities years lot would to I if grown to have and or more want each us sleep expected, That's This to demonstrated about that a today, business those confidence that. still couple operating planning us with our give will scale of some up. you that precious

as to laid X single-digit think the our So of on maximize Venmo so well. about give monetize next prioritizing how even the much Company us the that doing X my next involves, pretty commerce have the manage that we out creating say to things business the few some that's up can time period, so create the years over not a to noticing to that and things are But years, to lineup focus go at margins the growth top directly over we've for invest. like looking long high shareholder years continue value we've question, your expansion. clear talked a expense on to particular plan handcuffed we maybe in have capabilities, as don't ample building going year, be digital same experienced wallet, type and we're I as but period out I are XX%, any X term we of that noted opportunity next value. market of Because the that more appreciation with like we're with our on at of next the margin But from to the not answering over going and remarks,


you. Thank

of We from last have Bank time comes for Jason Kupferberg America. question, one of

line Your open. is

Jason Kupferberg

how you, previously be now lower end for XX more they're higher million target the are end. to closer Thank year XX guys. to tracking to of Hey, you? the guess, the thought the I of to

gross adds, higher in decline I'm QX we quarter-over-quarter activations? is just in some It wondering, So Thanks. may is churn, a it seems a little in bit this new incremental [Indiscernible] softness be like down

Dan Schulman

Yeah, great you Thank Jason. question that. for

less. this If We're we would the as we'll then towards then if organic heart higher last to we XX. XX we'd there we're up have consistent year, well. it the like than more remember a million then started and doesn't, thought we $XX little being of the at season just you be a bit then did have of XX and end our with of If you're into shapes the the going we'll million $XX holiday right. to because revenue At holiday, raised exactly year $XX lot more point, guide shopping, be it

store; talking about it's Again, typically supply astound, holiday right people chain goes do cautious get we the than shortages, So get than trends If and it [Indiscernible] did in the as think year, less just us last people we're and season others age [Indiscernible] that given are with of make. seeing very more now. about. more being, we'll an we'll talking I some prudent consistent

consistent now it's had and and just thing. we we point too, on again, don't right so strong John we any just a like with mentioned, is our I of we're very of guidance kind last it or the as that early of think gave, when week that but report pretty [Indiscernible] we guide So

appropriate say and We puts Company it appropriately and what an out, to on puts want that used is that and things then being it. assure to are beach we a we what out conservative

I answer Jason. So think question, that would that's how I


Thank you.

Dan Schulman

for talking last course question, All conferences, over and and of couple to all right. days all your weeks you thank the the and next to of really support of a you different that Operator, at look [Indiscernible] For [Indiscernible] number of your forward and


concludes Thank today's you. conference This call.

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