PayPal Updates First Quarter 2020 Revenue Outlook Based on Coronavirus Impact
SAN JOSE, Calif., Feb. 27, 2020 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) has been carefully assessing the effect of COVID-19 as conditions continue to evolve. We are prioritizing the health and safety of our employees and supporting those in need. Our thoughts continue to be with the communities and individuals affected by this disease.
PayPal's business trends remain strong; however, international cross-border e-commerce activity has been negatively impacted by COVID-19. We currently estimate the negative impact from COVID-19 to be an approximate one percentage point reduction, on both a spot and foreign currency-neutral basis, to PayPal's year-over-year revenue growth for the first quarter, as compared to the revenue guidance provided on January 29, 2020.
Stronger performance quarter-to-date across our diversified business is partially offsetting this one percentage point negative impact. We now expect to report first quarter 2020 revenue towards the lower end of our previously guided range of $4.78 - $4.84 billion. We are reaffirming our first quarter 2020 GAAP and non-GAAP EPS guidance.
At this time, the duration of COVID-19's impact is difficult to estimate. We are continuing to closely monitor this evolving situation. We will provide further updates on our first quarter earnings call in April.
About PayPal
PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering more than 300 million consumers and merchants in more than 200 markets to join and thrive in the global economy. For more information, visit paypal.com.
Forward-looking statements
This press release contains forward-looking statements relating to, among other things, the future results of operations, financial condition, expectations, and plans of PayPal Holdings, Inc. and its consolidated subsidiaries that reflect PayPal's current projections and forecasts. Forward-looking statements can be identified by words such as "may," "will," "would," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "strategy," "future," "opportunity," "plan," "project," "forecast," and other similar expressions. Forward-looking statements include, but are not limited to, statements regarding projected financial results for the first quarter and full year 2020 and projected future growth of PayPal's businesses. Forward-looking statements are based upon various estimates and assumptions, as well as information known to PayPal as of the date of this press release, and are inherently subject to numerous risks and uncertainties, including uncertainties around the duration and severity of the novel coronavirus (COVID-19) outbreak. Accordingly, actual results could differ materially from those predicted or implied by forward-looking statements.
For information about factors that could adversely affect PayPal's results of operations, financial condition and prospects, or that could cause actual results to differ from those expressed or implied in forward-looking statements is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in PayPal's most recently filed annual report on Form 10-K and its subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting PayPal's Investor Relations website at https://investor.paypal-corp.com or the SEC's website at www.sec.gov. All information in this release speaks as of February 27, 2020. For the reasons discussed above, you should not place undue reliance on the forward-looking statements in this press release. PayPal assumes no obligation to update such forward-looking statements.
Contacts
Investor Relations Contacts
Gabrielle Rabinovitch
[email protected]
Akila Moorthy
[email protected]
Media Relations Contact
Josh Criscoe
[email protected]
646.667.5065
SOURCE PayPal Holdings, Inc.
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