PayPal reported better-than-expected third-quarter earnings on Tuesday, but revenue came in a bit light of expectations.
Here’s how the company did compared to Wall Street estimates, based on a survey of analysts by LSEG:
Earnings per share: $1.20, adjusted vs. $1.07 expected
Revenue: $7.85 billion vs. $7.89 billion expected
Revenue increased about 6% in the quarter from $7.42 billion in the same period a year ago. PayPal reported net income of $1.01 billion, or 99 cents per share, compared to $1.02 billion, or 93 cents per share, a year earlier.
It’s the first earnings report for CEO Alex Chriss since he reached his one-year mark on the job in September. The stock is up 36% this year and 42% since Chriss joined the payments company, which at the time was mired in a deep slump due to increased competition and a declining take rate, or the percentage of revenue PayPal keeps from each transaction.
Chriss has focused on prioritizing profitable growth and better monetizing key acquisitions like Braintree, which is used by Meta for credit card processing, and payments app Venmo.
Total payment volume, an indication of how digital payments are faring in the broader economy, rose 9% from a year earlier to $422.6 billion for the quarter ended Sept. 30, and came in just above the average analyst estimate of $422.5 billion, according to StreetAccount.
“PayPal delivered strong financial and operating results during a highly productive third quarter,” Chriss said in the earnings release.
The company’s operating margin came in at 18.8%, beating the StreetAccount estimate of 17.4%. PayPal reported total active accounts of 432 million, up 1% from a year earlier, and beating the average estimate of 430.5 million.
While PayPal’s take rate slipped to 1.86% from 1.91% a year earlier, transaction margin, which is how the company gauges the profitability of its core business, rose to 46.6% from 45.4%.
For the fourth quarter, PayPal is calling for “low single-digit growth.” Analysts were expecting growth of 5.4% to $8.46 billion. The investor deck says guidance reflects a “price-to-value strategy and prioritization of profitable growth.”
The company expects adjusted earnings per share of $1.07 to $1.11, versus the average analyst estimate of $1.10, according to LSEG.
One of Chriss’ strategies to address the deteriorating margin was to offer merchants increased value-added services, such as connecting a couple of data points at checkout to drive down the rate of cart abandonment. That product, dubbed Fastlane, launched in August, and is a one-click payment option for online sales that can go head-to-head with Apple Pay and Shop Pay by Shopify.
In August, fintech platform Adyen made Fastlane available to businesses in the U.S., and said it plans to expand the offering globally in the future. The company also partnered with other leaders in global commerce including Fiserv, Amazon, Global Payments and Shopify as it looks to grow its share of online checkout.
The other big product launch during the quarter was PayPal Everywhere, which went live in early September. The initiative offers 5% cash back for using a PayPal debit card within the mobile app. Thus far, PayPal has seen 1 million new PayPal debit card enrollments.
Venmo’s total payment volume rose 8% in the quarter from a year earlier. DoorDash, Starbucks and Ticketmaster are among businesses now accepting Venmo as one way that consumers can pay.
“We are making solid progress in our transformation as we bring new innovations to market, forge important partnerships with leading commerce players, and drive awareness and engagement through new marketing campaigns,” Chriss said in the release.
PayPal will hold an earnings call for analysts at 8 a.m. Eastern time.
Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.
What we know about the BYD Han L EV so far
We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.
BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.
The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.
BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.
To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).
BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.
At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).
Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.