PayPal39;s 2024 profit disappoints investors
Stock falls 7 after the bell
CEO says PayPal focused on longterm growth

Reuters PayPal39;s forecast of flat growth in adjusted profit for the current year overshadowed its marketbeating earnings report, sending shares of the payments giant down 7 in extended trading.

On a postearnings call, newly appointed CEO Alex Chriss laid out a strategic plan to turn the company leaner in its pursuit of driving profitable growth and ease pressure on its shares, which was one of the worst performers on the Nasdaq 100 Index in 2023.

We want to be clear eye in terms of the potential nearterm benefits from our initiatives, which is why our 2024 guidance includes minimal contribution from the innovations we recently announced, Chriss said.

It will take time for some of our initiatives to scale and move the needle, he added.

The company expects adjusted earnings per share of 5.10 for 2024, unchanged from a year earlier. It did not provide an outlook for revenue and operating margin for the full year.

PayPal said the profit forecast reflects adjustments of roughly 1.8 billion, including estimated stockbased compensation expense and related payroll taxes, alongside a restructuring charge of roughly 120 million.

That eclipsed the firm39;s upbeat fourthquarter earnings report, which sailed past Wall Street estimates on the back of a strong holiday shopping season.

PayPal posted a fourthquarter adjusted profit of 1.48 a share for the…