PayPal (PYPL) 30 Jul 242024 Q2 Earnings call transcript

Good morning, and welcome to PayPal's Second Quarter 2024 Earnings Conference Call. My name is Sarah, and I will be your conference operator today.

As a reminder, this conference is being recorded. I would now like to turn the program over to your host for today's conference, Steve Winoker, PayPal's Chief Investor Relations Officer. Please go ahead.

Sarah. Thanks, Second Call. PayPal's XXXX Quarter to Earnings Welcome I'm CFO, Jamie President and Chriss; and CEO, Alex Miller. joined by

Our remarks statements. today uncertainties. include forward-looking statements that may materially Actual involve differ from these results risks and

view Our based businesses we them commentary see world on best as is today. and of our our the

described earnings SEC press As filings website, our on in world may elements changes. our those change release, and as the

Alex. you, to over Now

first strong half joining Thank encouraging us everyone this second and quarter delivered PayPal Steve, financial and you, and for a with operating results. thanks morning. to

While ahead PayPal meaningful change we confident leadership full well on progress long-term have takes much time moving for and we to and profitable making durable I'm right of positioned are our still transformation have growth. on the in work are ahead. are place the and us, right position we steam and today, track

the margin results $XXX growth Total Looking XXXX. Transaction basis. billion, in X%, that performance metric we since on volume to on delivered and at second X% revenue representing our dollars rose currency-neutral XX% best quarter. our grew a payment

have some We're the per PayPal's Braintree but year-over-year. strength from and increased the early XX% and build see Branded now underway. platform, to to continues and non-GAAP PayPal earnings active contributions margin first grow only monthly years. Our both stability not we transaction share profitably. in initiatives checkout encouraged momentum for is Venmo. to also continues the meaningfully increased of time growth X dollar to contributing Venmo in over accounts across

of growth on the in driving. year. that earnings strategic dollars we Overall, are our growth beginning are raising initiatives Given the strategy at full per we investment the guidance increasing and our PayPal, margin the set with remain strength for in year we course transaction we share and across

are excited and moving execution. with about on teams urgency, innovation focused our Our

can do our in know speed. is and progress we early many transformation, pleased with while still there are much areas, we in greater more We and with our

mobile are experiences, and are SMB, efficiently. operate places and working Venmo to we we ways continuing and example, to are improve, effectively For identify hard to more

I as a In are commerce at experience branded quarters, upgrades checkout. want stands X we the to how about PayPal length partner. talked bringing have a we discussing spend apart the moment strategic to past

not However, I do makes lose of want sight to truly what PayPal differentiated.

of network X-sided millions Our of consumers worldwide. of merchants and hundreds

with We the innovations, full That powerful to globally with building Fastlane building. to infrastructure are commerce it. in to and the support with platform are PayPal to is including conversion sales launch start consumer network, which sides a on stages platform one players ads new that merchant the we the is the end-to-end hard spanning experiences replicate the at scale customer early of superior from and journey incredibly only and of an and finish. of foundation and both

significant building These our expand the merchants, capabilities market context. such executing, with offering provide new addressable and we combined and value-added and commerce will The we benefits compounding data an $X that beginning ongoing e-commerce incredible of digitization advantage to in network fully. operate global and give trillion-plus just for as growth. more tailwinds, PayPal now effects market consumers the are for services a initiatives in massive are more we Today, from harness insights payments with now us long-term and that omnichannel opportunity

value ways in the our working business products global multiple the of a year, of omnichannel ecosystem. generating platform and have series a services into we to Over throughout open capable transform from last commerce been and multifaceted

individual differentiator This engagement The we across our over are ecosystem. partners market response and in that a our is initial opportunity products offer. We time. delivers confidence in and platform into key far a our higher us will the gives our commitment building that customers network PayPal to value introducing turn, of will to for and growing are and more more more we expand more than levels drive see places merchants consumers innovations the will we that, more

effects reinforcing, the network add will compounding and to value be These mutually company.

apps. for partner on giving now and charitable payment are platform top and and PayPal note Meta's the the Our us which method value we of family to taking fronts. platform. of with globally seeking Giving PayPal that tech is peers companies is advertisers large recognized One partner great on is campaigns being our a run example of of this already with a variety in are Meta's Meta, ways. across consumers by Fund new multiple donations

Meta uses Meta and card pays credit for and creators out Braintree developers processing. using Hyperwallet

forward are optimize Meta look to to with the deepening beneficial months ways years the Meta ahead. in We working our partnership closely mutually and and experiences in with

You will hear partnerships with deepening coming to quarters. over continue about more commitments the

you customer-backed our update me Let on business strategies.

large continue to consumers. enterprises, SMBs and and value our to high We experiences with execute for enhance velocity customer

phase our building next for We are growth. foundation of the

For large value productive a conversation capabilities. additional take strengthening relationship us help can by merchants with the to understand advantage enterprises, continue to their to our of we unlock platform have they full

renewed with For to DoorDash recently our expand how example, together. contract we we work

to processing losses. Beyond unbranded branded PSP relies also marks, on our offering our capabilities DoorDash mitigate and risk

as DoorDash platform. in participating latest in be we and initial As branded has partner new agreement, of January our announced an will launch they part that checkout our our enhancements new for committed ad

in Fastlane I we Salesforce, the a and margin our pleased partners, Combining profitable that half U.S. and helping merchants includes that commitment are available Last available payments This expected on create that delivering generally is generally PPCP to on services quarter, second platform merchants to August, announce making more as well dynamic. BigCommerce. Braintree the make us in Fastlane the you year. best-in-class we accretive Adobe through in of are value-added and I'm as told with U.S. the to including in

who have are to excited fast many While from and line merchants strategy. broad will robust time, take heard go-to-market we adoption add have a

early our XX% from data nearly Fastlane checkout users before, shows returning conversion XX%. at that the to convert shared adopters closer versus average guest industry I've As

over consumers, be more Fastlane us roughly and able merchants from The builds increasing confidence made expect heard time our gives As accelerate that branded XX% PayPal's with of and a shoppers. even scale will we've to we benefits share merchants team market. to purchases sales the early recognize to e-commerce will feedback we our more capture because ability network without

entry, part a changing is has for with reminder, of is consumers manual now is As conversion of and a a low still poor that card generally Much Fastlane. XX% and today merchants. that large experience

proposition PPCP. rollout to medium-sized of value through the improve and small- For businesses, are we continuing our

branded through to make stack platforms integrating positively, as as this the year. and both migrating with legacy from progress on to new continue volume the processor volume half partners We solution more across PPCP portion their XX% from continues unbranded first new onto A SMB up payments. of using well trend merchants. large PayPal is full than that of volume merchants and coming as

relationship, they use benefit On here and because checkout drives latest average, consumers churn wherever help PPCP Fastlane. adopt revenue merchants efforts also PPCP experience more integration, give from best-in-class our have which ensures important branded merchants a our higher reduces Our and higher checkout are include conversion. which merchants That deepens shop who average per products will will account.

end-to-end have area serve focused, and businesses tremendous is opportunity before, this we said I've are to better small where we needs. an As

we our consumer the driving consumers, frequent checkout For consumers. increasing engagement preference, on share focused are and our extending in more of from leadership

Walmart brands, Ticketmaster, BestBuy, Nordstrom. and the second with Priceline, Lyft, offers Instacart, major In quarter, including in-app we launched

offers We are seeing encouraging. engagement interest early volume, positive compared tripling while of June March. trends with our consumer gross merchandise to in days, nearly the initial one by And in advertisers is driven from still

marketing the and see beyond rewarding pay. back half before, us further invest to As you of PayPal to year in and we've ways Venmo in shared will position as the

mobile to need is improve That branded to to our flows we previously improvement talked the I and In improve devices. for designs on the about our several branded checkout innovations customers. experiences started half, checkout happening. first ramping experience now technology our our

merchants. for super high are repeat vaulted use we example, new launching For a experience simple

Experiences tests, fighting conversion remember that the for our drives merchants lift value conversion win of with redesigned consumers of resonating vaulting initial every sale. XXX to clearly alone payment to this are shows basis are who every point significant a and like In lift points. page XX one

eligible We will be in the checkout and all in ramping U.S. consumers months. the our weeks coming to experiences redesigned branded

we As acceptance, the #X of branded checkout mark with the are a largest solution. network merchant ubiquitous

and mobile to create both and We devices. and converting innovate across desktop are continuing platforms experiences high on and

more, consumers engaging post and notifications push flywheel. smart continue driving engagement PayPal and adding increased also purchase tracking, receipts, package the We value with

essential to more in acquisition than XX and In app million fact, we post-purchase growth. alone, PXP is engagement ago. returning we an a logins it for almost June tool from year are XX% growing us, experiences from and drove our

improvement We enhancements but suffered an decisioning past over the new XXXX, driven activity. seen risk declines through cross-border by capabilities, and have quarters, better withdrawal product such global more few as we

continue We engagement. awareness invest pricing and will drive in enhanced and our marketing to to experiences,

Venmo. to Turning

increasing XX business' Venmo peer-to-peer monthly in X% X% nearly processed of $XX products with users to million, We are quarter, position. billion more actives year-over-year, growth. of ecosystem year-over-year adoption driving our the on second are growing In of base a building strong market this strong both than total the volume, and payment

launched grew push which enable approximately and continue this Venmo XX%. to debit of StubHub, provisioning with the Wallets card card to Venmo Apple Venmo and including merchants will example, we Pay Venmo fuel In partners, monthly the to both For with expect and with quarter, continued and and Google growth. we more debit second eBay actives Pay

me is and that build Venmo innovation with starting simply, is potential, Venmo we launched most primed early excites Said drive we profitable and traction, addressable for us substantial its headroom What are lifelong expanding for recently surface our the to age. customer-led, Our growth. of about an from is market encouraging Venmo growth. customers only see scratching relationships showing Teen Accounts early helping

off-line love who merchants they for for want purchases are consumers PayPal use PayPal Finally, purchases. their also online to telling

Venmo our making Apple devices. drive wallets on PayPal and continue products card mobile adoption easier Google the cards and we're to We it add to to of and branded

and We even us anytime, from Europe. online for see person. in looking consumers use to are ways to more forward the customers use NFC quarters PayPal to also launching enable Expect to in to with our coming starting PayPal incentivize technology more and in anyplace

experiences. looking for quarter on to I work the PayPal to possible our and team thank transform best Jamie. give continuing customers our want over Reflecting company tirelessly as to we and that, the With the ahead,

Thanks, Alex. everyone. Good morning,

to second raising and confidence build we second initiatives X. our We're through PayPal full are half and Slide the as the performance quarter across first and year we passing results, increasing half guidance. delivered investments Moving strong growth company.

investments prioritizing profitable by XXXX same for the set goal Our remains success will for deliver PayPal that durable, to up long-term growth.

Alex over will time uneven. and produced As while of quarter our improving the change be another set The second quarters sometimes years. success measured be results, mentioned, can transformation takes and of

of work strong We have results. and ahead, but a foundation first are the a lot our visible in on making teams half building progress

factors per dollar Non-GAAP income. expectations, combination transaction by at year-over-year quarter, the second X% on the the revenue $X.XX, a basis. from margin and and prior of financial than relative interest XX% Transaction and share growth results basis per to spot margin year-over-year, X% including share grew earnings more in earnings increased a currency-neutral were improvement Looking higher first X% quarter. were growth driven high-level our representing at XXX a point dollars stronger

Turning to Slide X.

of function we Our frequently how are number platform they us. financial engaged and a how transact are our of with they results the across have, customers

reflect metrics on this operating progress Our front.

encouraged sustained second million ended X by total with increased quarter million XXX and and and growth monthly total account XXX accounts included active accounts the from in We in accounts. million see active addition We PayPal other active positive were products. in the merchant consumer first quarter accounts first a nearly inflection to quarter. Total following active the growth to

XX-month in active continued consumer per million, Venmo. the number, which XX%. up trailing was accounts X% up is account, quarter, PayPal contributions Transactions Monthly accounts to with and from XXX XX.X both progress, active show year-over-year to steady second a

primarily which account active Excluding transactions is Braintree, PSP X%. processing, grew per

U.S. Moving strength driven volume grew payment Continental to and grew billion. international currency-neutral TPV spot by grew Asia. also and basis, TPV $XXX Slide on XX% X. a on XX% XX% a in Europe currency-neutral Total primarily and to basis

was increased the product, global which the breakdown on quarter grew volumes quarter. currency-neutral X% a a the from day. This basis by at our X% excluding branded first additional in Looking with leap checkout X-point second consistent benefit performance,

deeper and markets and international and laser-focused strength experiences, on medium U.K. and our like which the platforms, marketplaces checkout, U.S. adoption with critical, Within branded across are small driving growth. continue we of particularly our large in the We to mobile solutions improving businesses remain enterprise see best-in-class

in PSP processing the first XX% compared grew in quarter volume to quarter. XX% the

benefit are growth. drive Importantly, in of to profitable we beginning to see shift the our strategy

on focus having dollar margin price way. Our transaction to with a is impact, Braintree an meaningful positively to value growth contributing now in

Moving to in Venmo. driven detail spot primarily more checkout X% grew was Other Slide Transaction value-added quarter the $X.X X. a services branded basis billion, to at flat to and financial on million. revenue revenue by Braintree, close $XXX on

last is OVAS Interest performed proactive be to in X on-balance and to reduce our within to of in line points margin year sheet and contributed the on to receivables. quarter. meaningful customer approximately made Revenue transaction continued declined dollar expectations. with the merchant risk decisions credit revenue decline but year-over-year balances Part tailwind due to manage a growth business

normalization rates sheet consumer within loss U.S. off-balance also our revolving We ongoing are portfolio. seeing of

over last basis less point by to exposure X are we have credit year business continuing decline rate points model. toward last to and X compared take capital-intensive manage move Overall, quarter. X.XX% Transaction basis taken portfolio steps the to a a the to position actively declined the portfolio's to

fees transaction payouts. take other offset PSP Venmo our foreign within branded by business, volumes large benefited and growth merchant faster which exchange and including rate, in services, checkout acceleration an was enterprise

were on transaction efforts largest dollars contributors increased transaction favorability. X% and and margin balances, expense Braintree the increase checkout, year-over-year compared the transaction the as strong Transaction first Higher some quarter. to well and branded ongoing Venmo improve in checkout results growth. interest margin to performance Branded a in quarter second as from benefited Venmo's X% optimize customer to loss

and early, last related saw it's improvements as PXP. a to initial see and Venmo, as While make enhancements positive in still to contribution the Relative ongoing to are quarter, and price product branded checkout risk we encouraged value growth Braintree actions return impact. well from profitable we to

benefiting manage $X.X Non-transaction as while XXX basis grew in actively our margin leverage growth cost X% trends. operating and XX% quarter in related expanded to expenses operating the billion. declined to and margin Non-GAAP continue expense Non-GAAP operating transaction structure in key income we improvement initiatives. points XX.X%, from reinvesting to

months $X.X $X the over the billion share second generated quarter, flow we PayPal share to cash $X.X repurchases, approximately billion billion. and in bringing free in in repurchases completed past XX

billion. cash, cash equivalents Finally, investments $XX and we debt with more of ended than the and of quarter billion just over $XX

and XXXX. guidance to the on the third Moving quarter full year in Slide XX for

of For a macroeconomic and spending consistent to the remainder relatively year, environment. consumer we continue the guide assuming

EPS revenue For digits. and by quarter, to third the grow expect to digits single grow high mid-single non-GAAP we by

of as reflects XXXX year strategic We the reinvestment to growth are quarter well as in year expect into half positive to raising view second guidance slightly EPS grow some second of for full our the and the a now low- This mid-teens. the initiatives. increase in non-GAAP more the outperformance with

expect guidance, year. for a transaction by mid-single-digit percentage we the margin dollars to now full Underpinning low- increase our to

feel in progress seen have branded steady our growth from We checkout and profitable are our confident making. the teams business

to encouraging is enhancements initial see well like to price initiatives product of the related our to as impact PXP. ongoing value in It areas as

scale, to the as still take test response particularly the on moving Some efforts, our begin innovation are and time customer but launch. and and into will early results initial pilot by encouraged from the side, phases of we're we

value as this, large out price prior growth against continue transaction are map. focusing Braintree, second we driving we on processing prioritize are to like strategy As growth. in it in there to to within we few deliberate, lower move lower in into fronts, teams the half we This our the through by expect these laid execute to dollar to on volume keep margin Consistent good expect growth is we the year. year, areas we volume on progress factors even strategically a revenue Related continue quarters, with and the and a high-quality shows of as improvements move make the road mind. profitable of second to we enterprise progress our half but long-term

we a interest customer balances, which tailwind on some to first of smaller growth percentage transaction approximately expect an improvements, and tailwind these margin in the much dollar Offsetting from point X represented growth half.

We forecasting are less and normalization also credit prudently and favorability some losses. planning with in transaction

growth funding to efficiency investments. strategic expect slightly continue increase operating We expenses our ongoing to non-transaction with

will Our growth campaigns as PayPal of marketing and investment partnerships brand reinvigorated as for products, go-to-market progresses and our highest ramp as initiatives, the and Venmo. to innovation new year spending well the both support priority

all company. reaccelerating of durable are support the investments for in profitable These growth

we the XXXX start strong Given are to billion. free raising to $X cash the flow our approximately year, guidance

buyback We share plan our to our to guidance compared least are prior increasing $X $X also billion at for billion.

good been we've drive company. significant as XXXX change first the making we half closing, throughout In of across progress the

to on dynamic and and about We what our that, back forward stay forward offense and With updating opportunities We're Alex. clear you, on we lean a to further in to in competitive you look ensure progress excited way. the along the path have remains environment.

with summarize, in To and grew Jamie. branded, areas, strength Venmo. you, profitably including unbranded multiple Thank again, PayPal

traction We several see initiatives. starting also in to are

results highlight PayPal's together, global commerce the these Taken of strength platform.

last one I'll leave you example. with

heard You've out money more us money customers about talk and me Venmo looking in our opportunities. provide for to

corresponding being rather opportunities Venmo the debit we out. are Venmo or As ecosystem balance seeing within we like Venmo, are Venmo to with products transferred improvement funds a used than spend card improving Pay with in

process. and for raise monetization PayPal, our flow and of growth and coming to guide. driving cash us and and increase strong profit is free solving meeting years Steve, this margin needs gives where improvement our our of example confidence our it excited Q&A. customers an and are, year PayPal. to for let's a about the the in the was and Overall, go their This quarter full I'm team investments proud quarters both they

open Thanks, Instructions] Alex. Sarah, [Operator the line. please

[Operator of question from Your El-Assal Barclays. the comes first with line Instructions] Ramsey

lower the your that a the more comments you're second progress user and you ex all a branded volume, drive rate the see at vault branded prepared both also making. You to maintain last drill to Great acceleration? to Can from remarks volumes mentioned there Branded the And into on the most growth then down what bit quarter. focus the and year interface, growth are leap unbranded on right half apply to important mobile, and maybe levers? end of Jamie's volumes? strategy

Thanks for Yes. progress the made Ramsey. we've excited question, to that We're the branded. on see

we've but experiences, is particularly the on see, from that loyal everything last it and some working improve some of on over the really teams the the love months focused to continues touched I before, comments, experience, What in got vaulted essential X can base touched a things I are we've mobile. you mobile, As around customer is on been the use night and consistent to PayPal. day the of now on which

experience. new checkout balance think well. out Now, XX Buy usage want pay just high nice rate And where Later, well using instrument simplifying I high your overall, lift you usage, as improved a of in or XXX lift customers This of whether we're simplifies, And seeing any sheet new our which PayPal a experience as as is default. they Pay PayPal the We've seeing gives they're experience repeat choice that the we're there conversion as point rolling actually still but basis also experience. We're vault to a with mentioned, experience. as now

end-to-end not to which have focus that, big is ubiquity we gives ability we the just where share to web, in maintain marks the the So the across and feel like to us combined mobile continue but with only in on experience. experience. both branded We want taking customer that be,

That on relates second about Ramsey, the Great. to Braintree. primarily of volumes the in your And question lower half. second part

wins in shifting and lapping larger both Braintree profile. some year, second in of the revenue this seeing the particularly are We normalization in half,

growth. working our Just into get our the and with as of customers we around mission enter process around into profitable really

But branded off with so with the to July very first we've first. expect What on seen far. we half second of in things, consistent checkout is the start. to side be consistent July is the a half good the

So pretty about we that. feel good

from comes question the of next Wolfe Research. Your Peller with line Darrin

just more the you Nice what's in to margin around start results. and about the more talked also. dynamics per heard on mix it and on Look especially about the touch versus transaction it there which value, from so pricing industry contributing a side, lot we've

So to good see. it's

But going these us sustainability this saw the of the maybe the more just few updated that, on beyond adding there rates, understand in the and next contributing but on really at now? the margin And quarter expectations Obviously, forces. color direction growing help your strength transaction first to -- dollars months. you you guidance, forward

Yes. Thank you.

So little contributors margin the second start transaction the with maybe dollar growth about bit well. a and biggest I'll to talk as there half

contributors So strength see a are to significant and acceleration. were the and team growth. excited we the several underway has the lot broad-based There's really the there to

is about, progress we to it's prepared points half. growth, margin to from customer was grow dollar my income really there. as remarks, back interest branded First, That to balances. checkout. about the healthy Braintree, dollar X and margin But our contributor focus was and to to profitably It on strong, excited in some see which very mentioned, talked and which transaction transaction shift contributing it continues really second, a you growth. about great first really we're in

well, And was Venmo favorable in the we're to continues monthly which strong actives. see. lastly, doing driving Venmo consumer, loss favorability nice to be a only transaction from job to second quarter growth benefit then continued not to the in as but continued nice in

the there's were last income year. tailwinds say second We've that first about in I'd our decline. second to in interest of half about around as a things half, the couple 'XX think second begin half we of think half rates coming got comps up first the is to just really will When higher of there.

growth, on that transaction will down. start the percentage, dollar that come So to margin impact

transaction and we quarter. more first second saw feeling favorability we that is planning normalization in said the second second loss the in is half. in both that, the first for we're even Having the It expected The quarter quarter. durable some than

get do loss work hard so to detection, things. transaction to and As in different and do we bad continue better prevention actors, they

And are the we we you kinks is, have products to number any we prudent how we is out time half. process, that solid. loss being a products, sure the business we're launching second of second in about if in the go. the we're think the transaction as make just launch And around a few But core bugs working

we're We are significant PXP, early loss. more positive months on profitability, than transaction It's our but X we ago change. still were in progress, Braintree on driving

next comes the Tien-Tsin JPMorgan. from with question of line Huang Your

Good about your second guidance, fourth there. in It quarter half you're growth step results ask want like investments. in the to in implying here. a EPS I looks down performance

marketing Can little you So what a specifics and more the kind holiday? we return expecting? around heavy what give that that you're you're just should maybe that's -- marketing bit assume exactly on does of

I'll first maybe on and part, take of the the it. comment pieces to Alex marketing want will then

product I So taken investment a in expense while engineering and into profile, to same some number really prioritizing marketing. OpEx discipline. job time or of our remixing actions the reduce think, first half, back at the a We've we've done, with nice

Now intentionally half, first deferred, some marketing the the dollars we second in to half.

we these ground seeing marketing both you're campaigns work marketing really much like to and brand profile, and a core marketing But product and half sure reinvestment you're PayPal in Venmo, same way and around but hit spend, So dollars running seeing to really have also underlying ramp that. at things the launches, put bigger look that in also the making second engineering our when go-to-market for to. our the around the need we you

it, second think of guide the about that half, growth those is pressure investments. side half of you ramping of when the XQ more than EPS in So the

rate second The mention while higher we than that half we're other in quickly the the a in half. side, we've tax topic, had just I'll on first got this is the

the impacting so And on year, particularly comparative some what's basis EPS to that, a of last profile. is

to Yes. very on a this And -- deeper. little We just and is dig pile bit deliberate.

needed a like app, and The even of to and the in The we're first branded invest the year, innovation be inside could and what PayPal the the the consumer designs, we're of. app from experiences, I in engagements, just both and put putting of that on experiences shopping out place on PayPal market the proud at standpoint customer PayPal completely rewards now. new experiences half feel we new. and that the that to we Venmo and experience just is exist on now invest rebuilt

side, On improvement seeing ramps the Venmo improvement debit create our we're card, real onboarding to you've there. for seen the as started we and the

go-to-market spend excited and sort on time So up of both to the some in experiences the and we're feeling really the exciting of apps, our good of about And it's engaging to tell world ways. ramp it. about

the with question Rawat Your of Bernstein. next line Harshita from comes

global favorable PayPal's are a company respect to thinking is NFC the has environment [ and investing about enough. Alex, the grown among in about I ] PayPal want region you presence the with iPhone? more now strong looks regulatory very despite international ask it not like How has access markets, your historically, to your

and I one Yes, about a the it's just may when think it's that think great question, overlook sometimes of things PayPal. we we

the we be over the a be way in it phenomenon. a ensuring And use that are be invested heavily cross-border, global years us, merchants different in everywhere compliant markets. is in over truly we And whether to whether global are We want world. all to we've that it company. customers XXX the access over

I've around with every available shortly that that Europe is everywhere whether in And for us, the includes be that past, e-commerce in sure or NFC, available opens person. the laid whether as opportunity solution, of and in strategy, the being for to PayPal be able coming, omnichannel our out we to about able prepared every will an think in we in play particularly up As it's that it's space. time, make be purchase, some changes to to

one hit I'll more growth. our see to example. exciting it's So

of Our that continue Buy U.S. outside of volume comes to XX% Now, Pay we the from see, growth Later that

what entire the stage of global brings bringing we're to to invest continue PayPal So the to there. excited ecosystem and

Baird. Your line of the next Colin question from with Sebastian comes

Great. side if in a the Fastlane be on adoption important well SMB you both branded on particular, more the of strategy business I was checkout, then that curious ultimately And the as to also, lever network? that initiatives, for think sides advertising the in can of is how initiative? of drive

us. here, I I've It's as Yes. And think, a SMB, said I got since is opportunity question. untapped for great an

what about and people a platform looking and very help So XX what to is with be find It to an And just for the back able are -- talk don't difficult they to an bandwidth, happen. to really, for customer, different solutions. engage them and solution let's need right? together able they're They SMBs is to Small small need them. customers, be and them. end-to-end reengage customers, for they really to then pull businesses that just make be fighting with every end-to-end the to to have the business piece they're need, convert able time

full be to business together powerful stack put them have to able manner. now single we in platform most PPCP, the for run a their With

branded experiences, with you branded get So with best the experiences. now PPCP,

Fastlane. You to best with conversion get the checkout guest access

process unbranded get can you that world. you ensure You can processing, the so that around anywhere

mark. every get You

Now, You Later. Buy get Pay

get to access our You working capital.

the that to ability platform, we you out drive new roll customers. as our you now mentioned, start get to ads then And

to get You a way. the with in delightful also customers ability reengage

after able ability So purchased. receipts, remarket tracking, customers be even the smart to to they package to

one All is place of in this partner. one with

lot there's we're rolling and now. and but And years. growth, play the play XX I more here. out. We're PPCP look, getting a to markets early just really few but going XX This started. in the we're out so right Live through next in is over partner days about channels, excited is progress just think the to

KBW. comes next of Sanjay Sakhrani question Your the from line with

it general about means standpoint? what how be about It's just year, it -- about Maybe talk availability about from could nice a that this revenue to of the maybe more Fastlane. we should you through hear what the And Would you if contribution could think engagement? talk revenue accelerated contribution? not

was trends? And the bit just secondly, then a more talk maybe would can just International Maybe off. be about dropped just seems color you It U.S. there stable. volume little you if pretty helpful. like could

Yes.

start me Fastlane. with Let

of our conversion So users. XX% tackling in, that we're a a the is We've unique where repeat of guest coming to everyone, is checkout. able experience Fastlane just because volume the rate and of change for as we the that see really dramatically the reminder got consumers network for checkout X-sided

a So a XX% traditional user. XX% conversion roughly versus repeat on rate

for to and goal capture all checkout. Our guest is help merchants all

Fastlane is platform really to able built processed want or through agnostic. we this have them actually consumer bring be as is experience the a branded Fastlane to And and can our effect. be well, a help well a capture So a delightful ability guest that into way come we every them and as experience experience checkout as enable through to there's flywheel PayPal by a so

few developer weeks situated We're August In day in now. August. rollout, in rolling well. now got time a terms in of this from this we as We've GA going a out are

so this, checkout as talked the not us, and our be guest we just as through but really up board. the guest can. point. to is to experience And I'm about the total ability across But Braintree, disclosed this on this so that addressable We've know customers market get pricing process many we'll not monetize, that not entire for that we into ramping is going checkout at

before, of international almost see strength when mentioned the look us we a healthy. International down over is, very international the right really U.S. that Yes. now And first U.S. TPV quarter. you large in real seen at we've on around that, on consistent last what this is environment part a and But what half. with environments, your the Braintree being and I area shift did it's for the question Otherwise, second wins solely the as lapping we bit year. to a have very related some

of with Your Dolev next question comes from Dan Mizuho. the line

worries doing little a really the a in Can you regarding maybe Apple Great bit what positioning branded checkout. we results. bit the Alex, some where past. I to competitive are ask them? wanted been about Pay. beat strong Obviously, and you're There has to contextualize little you,

question. Dan. Thanks, Yes. Great

some set let So context. me

massive play not dollar multitrillion we game. and a it's market first, in So a zero-sum

Over and we different So decade a launched. we competitors buttons there's had button expect expect went that now it in to continue. lots competitors. branded come to experiences, we'll of since ago, We've one and from

we set then today just reality how of me the Let and the context of the future. think about

see So XX% all share degradation today, of X checkout, narrow years. devices. If into are the our in we platforms we the reality down to past the web, desktop over XX% #X still and is experience branded no we across which all

So we've let me again, competition. held say despite share that

in actually we no different browsers, if selection rate there's across difference browsers. Second, across look our

the to So certain one isn't from platform moving to us. buttons just other material

So today. that's where we are

to ability consumers around experience and our better forward. going make for So this to let's improve focus continue a our

So to they're a customers. convert get want experience looking engage for end-to-end they for and with customers, have want customers they return an to want solution. merchants, to They and

As that. now experience, we improve best the continuing have branded talked we about, we're to

the have best We checkout we have Fastlanes, experience.

and in profile. So -- and we've rolled to out invest continuing ads our

side, merchants consumer helping they're experience. looking rewarding ubiquity, On end-to-end. we're for a flexibility a So and

We ubiquitous. the are most

the have and that want large everywhere -- be acceptance with base. in that. they pay any to standpoint, to world flexibility able rate can And to with they We want customer a able that way we're a pay, XX% they developed from growing provide and to

value merchants. the are pull X-sided you highest being I'm complete and consumers driving and benefit if our to So strong that our just position excited most network, global back, of we in the a platform and

Chiodo Your with Timothy Financial. UBS next comes from the question of line

U.S. in And little the you wanted I to with appreciate of merchant would branded Granted, international you there the growth, transaction growth. mix. Europe then I bit differences X% and the call could are into some relative levels Continental transaction strength also relative about the potentially given checkout and those. in on bit Maybe that levels little out Asia? talk versus margin, also of a expense drill did levels size with a international?

Yes.

to in relative a international, us. those strong the different to be for mixes both continue on at be level mixes U.S. and profiles. an as and look continues you contributors large a move platforms to we PPCP as direct would business partner of area portfolio we And area, growth, that and merchant In really So strategy continue U.S., small of enterprises There's market I to growth say the there. obviously different for and and off of strength us. move both legacy to a remix

side real be branded When that, outside say, But just spots as in well. in I we've several and to as very, at European, U.K. bright things, real corridors. of you look countries Germany such international checkout continues other of would very strong strength Europe got pressured. both is countries the and in

it. look it's I'd So fairly say balanced when at globe across the you

second part shift trying by all The look mix, is of has what our to mix, you Transaction stable. expense. at continues at mix, geo stuff. I'm impacted is the of Braintree, happening relatively look transaction it here. now Funding funding When right that and question your that TE driver mix been to biggest of in be product expense, there. is

of different different none always of and move continuously needle through, to the that, was with particularly benefits, how a to quarters we too. bit material, we which partners but little at different rolls in transaction expense that that of had our to ways improve looking terms on work We're and profile just continue have

the Jason comes question of Bank Your from America. line of next with Kupferberg

to of I'm of in deceleration trying ask does transaction half Braintree guide wanted the you're guidance. up profit to that in that a on around profit Just dollar growth delta your outlook for the sense kind taking imply full dollar question follow-up here. full from you mentioned the et It the the year just a changed? Obviously, for float the year businesses to What transaction second the I core branded here has isolate get comps, cetera. growth. and

say, would would of our in confidence baseline, increasing That's the having those we're what and stronger a say seeing we're slope on efforts. I generally, branded I X. profitability Braintree Yes.

Your with of next from question James comes line Faucette the Morgan Stanley.

what the been built any back to may year this to-dos as other have How And pretty wanted we excitement clear your big of the as and gradual guidance the circle its about rest launch into key I is in opportunity into Fastlane market. interest as the timing on Fastlane year? in in we are of well will I'm that think a this of be will should guidance new of kind et timing, added and terms build I to year? that with of like initiatives and And of the through if a Great. a the any wondering next made launch think addressing go for now you've it it obviously, rest cetera. lot that

Yes.

the guidance. go-to-market focused because our is built any the to half into And Let We've adoption, me very upside on with not really be start of in going year. last part. getting Fastlane this of that not around of just part monetizing is

contracts Now to the that signing be clear, we're with customers. pricing we're in

what focus pricing is half not it's And every the the as that's built TAM before, built in. into is. guest And checkout, so year. But of second I the our said is

during can hard key board experience we've get terms developers fast that and and possible. of period as as a created this really In merchants worked seamless on so to-dos, beta create to

experience to X- it's Fastlane a the for code to someone that now, roll out. so And really to using and to enable X-week us on get

platforms holidays. for access particular, as we need a large in well. who many we so businesses, click We're just with So that before one can the as the working want it this of and as get to button many turn enterprises on small on can holidays it to our

But able again, we've time around lot got the is, and to map. this for reality going road a merchants be put look, the to into their to it's of them take world

take to everyone is years want and we to quarters why get that's expectations set that to on So board. this going

capture of profiles the it, that more beauty rates customers already coming and through better seeing More the best-in-class to come that through Fastlane it. a it's the We're But become. The network start is conversion effect. the customers we conversion more rates. should

from to this get through as we and possible, we fast as merchants So as started holiday then as there. get season can build many want

Sarah, for time let's please. make last one question,

comes Our the Citi. of Schmidt last question Andrew with line from

more clearly, little in trends. could about dollar I large progress a of double-click Obviously, disciplined, terms to of that, bit Maybe what's growth. the talk driving contracts? lapping you more wanted just transaction on Braintree margin good

in how you And the built of But to what does that's inform on growth half into dollar the and kind subsequent hear half far, on your progress you've we the the confidence in beyond, into the terms then as go of we you've look transaction so building years? margin the back in so as back seen it far I from that slope seen outlook.

Thank you.

team reorient around Braintree renewal, is, really the first, just set just growth. with the both really we've of done and we've that. just conversations let's into had the number that, but to really structure partner, Braintree services, year what that we around got. So also growth through we how out driving just as getting profitable relationship this with how we've margin well, understanding talk overall what's We value-added a around holistic our contract and the value-to-value exchange customers, And provide

been a they've honestly, total And we and just positive thing. on basis really conversations as sort of -- relationship

our the sell as haven't a value-added we're to into ways in in before. there discussion, customers, a situations of that certain just able we've contract. situations other in are There's where margin accept where, that, we work lower we to done willing at services looked share we higher As as for we're gotten exchange revenue with

a this. good traction So is see on to to different it's the saw think I We've look as And of we we're levers second that process. half, we're intentional. expect business. in that. out you And really But to good the lots the second at it's thing starting what do play set excited continue. It's what about in for I out really quarter,

tangible normalize continue is out. And And will uneven fully expect profiles growth. growth more to to play positive we little margin play little to good see out bit transaction some continue. but volume of but we a I a progress and think linear, dollar into not saw it of We really but the bit, that trend the it's be normalization over improving time. more margin something a that It may bit saw business,

think might have? time I have any final you Alex, you comments for

thanks, today, Yes. and all Thank you Steve.

We're context stronger where returned X call, energized. day. sort is set leadership proud the we've in. margin months of to, to growth. getting a -- the to We've accomplished, what just company of really we got again, Just transaction of every We've close step We're the new company We're team. are.

a user the Braintree, We improved accelerating growth. returned company we're Venmo. and We've significantly at to consumer profitability

than executing proud really This today are that stronger feel were ago, now years. quarters just X plan. I against will X in stronger today. we be months And be than game we're we so our months and from are and we And we will measured

are we a game, be X the in, long on it'll trajectory. So months but right

So thank you all for quarter. you today, see next and

Thank you you. This conference. participating. for today's concludes Thank

disconnect. may You now