(PayPal) Shares of PayPal Holdings Inc. fell more than 17% on Wednesday as the company said it expects non-GAAP earnings per share of $0.87 in Q1 2022, below the expected $1.16 per share.
The fall in the stock also reflected FY22 revenue guidance of between 15% and 17% increase, which was below forecasts of 17.9%.
The company reported a GAAP operating margin of 15.2% in the fourth quarter, down by 57 basis points, while the non-GAAP operating margin fell by 291 basis points to 21.8%.
Non-GAAP EPS of $1.11 in the fourth quarter also narrowly missed estimates of $1.12 per share but were 4% above the prior year.
The payments giant still managed a revenue of $6.9 billion in the fourth quarter, up 13% from the prior year, beating estimates of $6.87 billion. FY21 revenue was reported at $25.4 billion, up 18% from the prior year.
In the fourth quarter, PayPal added 9.8 million New Active Accounts, up 13% from the prior year to take total active accounts to 426 million.
The company reported 5.3 billion payment transactions in the fourth quarter, up 21%. The total payment value was $339.5 billion, an increase of 23%.
PYPL: NASDAQ is down -16.46% on premarket.
