PayPal Holdings, Inc. (NASDAQ:PYPL) is gearing up to announce its fourth-quarter 2023 results on Feb 7.

Anticipating year-over-year revenue growth of 6-7% on a spot rate basis and 7-8% on a currency-neutral basis for the fourth quarter, the company aims to continue its positive trajectory. The Consensus Estimate for revenues is positioned at $7.88 billion, signaling a 6.8% improvement from the reported figure in the same quarter of the previous year.

PayPal projects non-GAAP earnings at $1.36 per share, reflecting a 10% growth on a year-over-year basis. The Consensus Estimate for earnings aligns closely at $1.36 per share, indicating a growth of 9.7% from the figure reported in the year-ago quarter.

With a track record of surpassing the Consensus Estimate in three of the last four quarters and matching it once, the company has delivered an average earnings surprise of 4.1%.

Factors to Highlight

The influence of PayPal’s robust product portfolio is expected to manifest in its fourth-quarter results.

The increasing adoption of the company’s buy now pay later (BNPL) solution is likely to be a noteworthy contributor.

The continued strong monetization of Venmo is expected to sustain its adoption rate in the upcoming quarter.

Expectations are high for robust PayPal Checkout experiences and a solid momentum in core peer-to-peer payments to positively impact the forthcoming results.

The shift in customer preference towards contactless payments, leading to heightened user engagement on PayPal’s platform, is projected to drive accelerated payment volume in the to-be-reported quarter.

Key Metrics in Focus

All these factors are anticipated to contribute to the growth of the company’s financial metrics during the fourth quarter.

However, the challenging macroeconomic landscape may have influenced consumers’ spending patterns, posing a potential concern for the company.

For the fourth quarter, the Consensus Estimate for active customer accounts is set at 433 million, indicating a 0.5% decline from the reported figure in the year-ago quarter.

The consensus projection for payment transactions per active user stands at 56 million, reflecting growth of 9.8% from the figure reported in the same quarter of the previous year.

The Consensus Estimate for the total number of payment transactions is situated at 6.7 billion, showcasing an 11.2% improvement from the reported figure in the prior-year quarter.

With the Consensus Estimate for Total Payment Volume (TPV) positioned at $403.53 billion, the company anticipates a robust 12.9% year-over-year growth.

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