PayPal (PYPL) – CFO Jamie Miller Interviews with Wolfe Research – March 16, 2024
We really didn’t learn much new in this interview. The firm reported a few weeks ago and Chriss spoke just a few days ago. The only news was reiterating previous commentary around the prudence of the 2024 guide. She again made it sound like guidance was a worst-case guide:
“I’ve been here 4 months, Alex a few weeks longer. Most of our team is new. We gave guidance that we are confident in meeting or exceeding. We need to get back into a rhythm of really meeting our commitments… We continue to think that branded checkout will grow healthily. We’re already seeing that. We think PSP will have a nice shift to profitable growth.” – CFO Jamie Miller
I’m a believer in the new PayPal team. Chriss is very likable. He’s forming an impressive team. His focus is well-placed. But I/we need to guard against becoming enamored with exciting dialogue. For now, it’s just talk. Charismatic CEOs have gotten me overly excited when excitement wasn’t warranted. I’ve been burned by trusting some of them in the past.
I want Chriss to build shareholder trust through consistent execution like I really think he will. I need to see “points on the board.” I need to see concrete evidence that this guide is conservative. I need to see a permanent & convincing transaction margin trough. For now… I’m tempted to add… & I’m not letting myself. Holding what I own. Excited for Q1 earnings.
In other PayPal news, it will add the ability to send its stablecoin to 160 countries with real-time currency conversion. This will be free of charge and offered through Xoom. Xoom makes up a tiny % of this firm’s results.
