1/ $PYPL up about 7% in AH trading after reporting another great quarter. @saxena_puru already provided a solid review of the financials, so let's look at what's driving its revenue and user growth
I'm long, about 6.3% position
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I'm long, about 6.3% position
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2/ After $PYPL's financials, 2 most important metrics are active user growth and user engagement. Working in tandem to drive payment volume, these make for a potent combo. In Q3:
# of active accounts: 295M, +16% YOY
Payment transactions per active account: 39.8, +9% YOY
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# of active accounts: 295M, +16% YOY
Payment transactions per active account: 39.8, +9% YOY
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3/ These metrics continue to drive strong total payment volume (TPV) growth and xaction growth, w/ strong tailwinds from P2P and mobile:
TPV: $179B, +25% YOY
Payment xactions: 3.1B, +25% YOY
P2P volume: $51B, +39% YOY, 28% of TPV
Mobile TPV: $77B, +34% YOY, 43% of TPV
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TPV: $179B, +25% YOY
Payment xactions: 3.1B, +25% YOY
P2P volume: $51B, +39% YOY, 28% of TPV
Mobile TPV: $77B, +34% YOY, 43% of TPV
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4/ And, of course, Venmo -- so hard to say enough good things about Venmo
Venmo processed $27B TPV, +64% YOY
That's almost $300M in payments/day and annual run rate exceeding $100B in TPV
Credit card coming soon
35% Venmo users now engage in monetized activities
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Venmo processed $27B TPV, +64% YOY
That's almost $300M in payments/day and annual run rate exceeding $100B in TPV
Credit card coming soon
35% Venmo users now engage in monetized activities
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5/ Venmo is big reason why adj op margin continues to creep up, coming in at 23.4% in Q3. Before Venmo was making any money, it was just a drain on $PYPL. But far from only reason margins are expanding. Love quote from CFO John Rainey on customer service calls (pictured)
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6/ But $PYPL's partnerships are real catalyst behind growth. It is truly the universal and agnostic operating system for money. No specific smartphone, O/S, merchant, bank, or financial institution is needed. List of partnerships is exhausting to keep track of...(cont)
7/ This quarter alone:
Travelers Ins - to receive claim payments
Pepsi - cashback loyalty program
Lime, global scooter platform
Epic Games - competitive gamers receive pay
Walmart Mexico - exclusive online payments for groceries
Citi Australia - credit products
Amex app
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Travelers Ins - to receive claim payments
Pepsi - cashback loyalty program
Lime, global scooter platform
Epic Games - competitive gamers receive pay
Walmart Mexico - exclusive online payments for groceries
Citi Australia - credit products
Amex app
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8/ Of course, biggest deal was $PYPL acquiring 70% stake in GoPay, a licensed provider of online payment services with the People's Bank of China.
9/ Another great quarter
Rev growth accelerating now that sale of consumer credit portfolio lapped
Margins expanding
Robust user, xaction, and engagement growth
Network growing as partnerships are forged
Rev growth accelerating now that sale of consumer credit portfolio lapped
Margins expanding
Robust user, xaction, and engagement growth
Network growing as partnerships are forged
