PayPal's quarterly operating margin failed to appease investors yesterday, sending its share price down 7% in extended trading — though executives at the American payments behemoth shared optimistic year-end expectations.
"When we think about the back half, in Q3, we'll still see some pressure on transaction margin performance," acting CFO Gabrielle Rabinovitch told analysts, adding: "In Q4, we expect to see an improvement."
PayPal's adjusted operating margin for Q2 2023 came in at 21.4% — below its forecasted 22% — due to slowed growth in branded products in the face of increased competition from Apple and others.
PayPal CEO Dan Schulman — who's retirement was announced in February — also blamed inflation for slowing e-commerce growth but believes cooling inflation is "accelerating" it again.
The company anticipates beating analysts' estimates for Q3 revenue and profit per share.
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