PayPal lowers annual revenue growth forecast

Online payments firm PayPal Holdings has cut its annual revenue growth forecast in anticipation of an economic downturn.
PayPal earnings report Q3 2022PayPal also said it did not expect much growth in its U.S. e-commerce business during the holiday quarter.

PayPal is the owner of the popular Venmo payments app.

The San Jose, California-based company cut its adjusted growth outlook for the year to 10 percent from 11 percent previously.

PayPal Chief Executive Daniel Schulman blamed “a challenging macro environment, slowing e-commerce trends and an unpredictable holiday shopping season” for the company’s prudent forecast.

“We think that e-commerce is going to be pretty muted in the fourth quarter,” Schulman said in a post-earnings call.

Last week, payments giant Mastercard forecast weaker-than-expected revenue growth for the holiday quarter.

But Block Inc, a payments platform led by Twitter founder Jack Dorsey, posted a rise in quarterly revenue on the back of a strong online payments business.

PayPal posted a lower adjusted profit of $1.08 per share for July-September.

The company said it expects $900 million in cost savings this year and at least $1.3 billion next year.

“Their cost saving plans is taking hold but in the ultra-competitive payments world, market share gains don’t seem to be enough to placate investors,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.

Related News

Latest News

Latest News