Online payment giant PayPal Holdings Inc (NASDAQ:PYPL) confirmed longtime boss Dan Schulman will step down later this year, as the company reported relatively upbeat full-year results and stronger guidance for the year ahead.
Schulman will retire by the year end, finishing an eight-year stint as chief executive, including overseeing PayPal spin-out from former parent eBay in 2015.
PayPal reported an 8% growth in full-year revenues on Thursday, to US$27.5bn, also anticipating 2023 profits to be around US$4.87 on a per share basis, higher than the Wall Street predictions of roughly US$4.75.
While warning that the rate of e-commerce growth in its core markets has decelerated, as "inflationary pressures have affected discretionary consumer spending and post-COVID spending patterns are still evolving", guidance was given for 2023 full-year adjusted earnings per share circa US$4.87, versus Wall Street average EPS forecasts of US$4.75.
It also suggested it would continue hefty buybacks in 2023, after having spent US$4.2bn on repurchases of 41mln shares last year.
Cost pressures have yet to fully bite, the company suggested, highlighting a 13% increase in payment transactions for the year to 6bn, which processed a total of US$357.4bn.
The payment giant announced 2,000 job cuts in a cost-saving exercise last week.
Schulman added: “We will continue this work throughout 2023, and I am confident that we are well-positioned to utilise our unique assets to remain a market leader,” having suggested PayPal needed to change to stay competitive.