PayPal Holdings Inc (NASDAQ:PYPL) stock fell 10.72% (As on February 8, 11:12:44 AM UTC-4, Source: Google Finance) after the company said it expects earnings to be flat this year as it continues to cut costs and streamline its operations. Fourth-quarter payments volume climbed 15% to $409.8 billion, beating analysts’ estimates of $403.6 billion. Q4’23 payment transactions increased 13% to 6.8 billion. Payment transactions per active account on a trailing twelve month basis increased 14% to 58.7. Active accounts decreased 2% to 426 million. Adjusted free cash flow was  of $0.8 billion in Q4’23 and $4.6 billion in FY’23, which excludes the net impact of originating European buy now, pay later (BNPL) receivables as held for sale (HFS) and the subsequent sale of these receivables. Free cash flow and adjusted free cash flow negatively impacted by higher cash taxes and changes in working capital. Cash, cash equivalents, and investments totaled $17.3 billion as of December 31, 2023. Debt totaled $11.3 billion as of December 31, 2023. MAAs increased slightly, +1%. More than half of total active accounts are MAAs

PYPL in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.48, beating the analysts’ estimates for the adjusted earnings per share of $1.36, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 9 percent to $8.03 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $7.88 billion. Non-GAAP operating margin expanded 39bps driven by expense control.

Moreover, Transaction revenue +9%, accelerated 2pts sequentially, driven primarily by Braintree and PayPal branded checkout. Hedging losses, recognized in international transaction revenue, were $6M in Q4’23 vs. hedging gains of $152M in Q4’22. Next 12 months estimated hedging losses is of $57M3. OVAS revenue +9% in Q4’23 and +26% in FY’23, driven primarily by interest on customer balances.

Additionally, the company returned $5.0 billion to stockholders in FY’23 by repurchasing approximately 74 million shares of common stock, including 10 million shares for $0.6 billion in Q4’23.

For the first quarter of FY 2024, net revenues expected to increase approximately 6.5% and 7% FXN and Non-GAAP earnings per diluted share expected to increase mid-single digits compared to $1.17 in the prior year period. Estimated non-GAAP amounts for the three months ending March 31, 2024 reflect adjustments of approximately $600 million, including estimated stock-based compensation expense and related payroll taxes of approximately $400 million and an estimated restructuring charge of approximately $120 million

For all of 2024, PayPal expects adjusted earnings of $5.10 a share, unchanged from last year.