Paypal Holdings Inc (NASDAQ:PYPL) stock plunges 25.32% (As on Feb 2, 11:38:53 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that missed analysts’ forecasts and revenue that topped expectations. Total Payment Volume (TPV) for the quarter was of $339.5 billion, growing 23% on a spot and FX-neutral basis (FXN); net revenues of $6.9 billion, growing 13% on a spot and FXN basis. 9.8 million Net New Active Accounts (NNAs) has been added during the quarter, including 3.2 million from the acquisition of Paidy. Volume excluding eBay grew 27% on a spot basis and 28% FXN, representing more than 97% of TPV and Venmo processed approximately $60.6 billion in TPV, growing 29% during the quarter.

PYPL in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.11, missing the analysts’ estimates for the adjusted earnings per share of $1.12. The company had reported the adjusted revenue growth of 13 percent to $6.92 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $6.9 billion. The company posted non-GAAP operating margin of 21.8%, declining 291 basis points.

Additionally, Cash, cash equivalents, and investments were of totaled $16.3 billion as of December 31, 2021. Debt totaled approximately $9.0 billion as of December 31, 2021. In Q4’21, generated cash flow from operations of $1.8 billion, growing 31%, and free cash flow of $1.6 billion, growing 38%. In FY’21, the company generated cash flow from operations of $6.3 billion, growing 8%, and free cash flow of $5.4 billion, growing 9%. In Q4’21, the company repurchased approximately 8.0 million shares of common stock, returning $1.5 billion to stockholders. In FY’21, the company repurchased approximately 15.4 million shares of common stock, returning $3.4 billion to stockholders

For fiscal 2022, the company expects TPV to reach $1.5 trillion and revenue to surpass $29 billion, TPV is expected to grow 19%-22% at currrent spot rates and 21%-23% on an FXN basis, revenue is expected to grow 15%-17% on a spot and FXN basis; excluding eBay, revenue expected to grow 19%-21%, non-GAAP EPS is expected to be in the range of $4.60-$4.75 and 15 to 20 million NNAs expected to be added to PayPal’s platform in FY’22

Meanwhile, in 2020, DoorDash added PayPal as a checkout option to increase volumes and remove friction. Since then, PayPal has helped DoorDash attract new customers. DoorDash saw similar success by adding Pay with Venmo and has also moved some of its direct credit card processing to PayPal.