PayPal Holdings, Inc. (PYPL) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

in our best view of the world and our businesses as we see them today. As described in our earnings press release, SEC filings, and on our website, those elements may change as the world changes. Now over to you, Alex. Thanks, Steve. We had a strong first quarter as we began to execute on the strategy we laid out during our recent investor day. PayPal is transforming from a payments company to a commerce platform. This includes expanding to be available everywhere, whether it's online, in-store, or agentic. This means moving from a one-size-fits-all experience to personalized experiences that leverage the vast data at our fingertips. We are developing a dynamic smart wallet that will allow consumers to make the smartest choice in how to pay and get rewarded. With this transformation, we are shifting from being purely a payments processor to an end-to-end strategic commerce partner for our merchants. And underpinning this is our work to converge into a single PayPal platform that unlocks the full potential of PayPal's two-sided network in support of both consumers and merchants. This strategy is durable and positions us to win in the months and years ahead. Turning to Q1, we have so much to be proud of. Let me share just a few highlights. Our strategy is designed to improve PayPal's profitability over time. In Q1, we delivered our fifth consecutive quarter of profitable growth, with transaction margin dollars growing by 8%, excluding the impact from last year's leap day. That growth was driven by multiple sources across our strategic initiatives, including Omnichannel Commerce, both online branded checkout and offline branded payment methods, Venmo, and PSP. As a result of this focus on profitability, non-GAAP earnings per share increased 23% year over year. Additiona...