PayPal’s quarterly operating margin failed to satisfy investors yesterday, sending its share price down 7% in extended trading – despite officials at the American payments titan sharing optimistic year-end projections.
Acting CFO Gabrielle Rabinovitch told analysts: “When we think about the back half, in Q3, we’ll still see some pressure on transaction margin performance. In Q4, we expect to see an improvement.”
Due to slower growth in branded products in the face of heightened competition from Apple and others, PayPal’s adjusted operating margin for Q2 2023 was 21.4% as opposed to the 22% it had anticipated.
Dan Schulman, the CEO of PayPal, who announced his retirement in February, likewise blamed inflation for slowing e-commerce development. However, now that inflation is moderating, it is “accelerating” again.
The business expects to surpass analysts’ predictions for Q3 revenue and profit per share.
In May, the payment platform Ventures oversaw a $52 million financing for digital wallet service Magic, the same month that the value of cryptocurrency held by PayPal clients reached $943 million.
