We are entering the thick of fintech earnings season and in the last 24 hours, we have seen earnings from two fintech pioneers: PayPal and Adyen.
They tell very different stories.
PayPal reported after the bell yesterday and investors were not pleased. CEO Alex Chriss has only been in the job a few months but this is the second setback in the last month following the disastrous “shock the world” statement.
The main issue was the forward guidance as the company implied it will not see meaningful improvement in growth or profits this year.
Contrast that with Adyen. The European online payments giant reported strong growth and better than expected profit numbers in 2023. It has also slowed hiring to protect its margins.
Investors loved Adyen’s results and shares were up 22% in trading on Thursday while PayPal was down 11% as of this writing.
PayPal shares fell 9% in early trading on Thursday after it forecast a flat adjusted profit for 2024, disappointing investors who had hoped the payments firm’s newly appointed CEO will reignite its growth.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.