Global payments giant PayPal (PYPL) has made changes to its business and leadership just days before its first-quarter earnings report. The firm is now organizing itself into three core divisions to work better and make decisions faster. The timing of the move also draws extra attention to PayPal as investors prepare for its latest financial results.
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PayPal Overhauls Leadership and Business Setup Before Earnings
PayPal revealed its new operating structure on April 29 as part of a broader internal reset. The firm now runs through three divisions: Checkout Solutions & PayPal, Consumer Financial Services & Venmo, and Payment Services & Crypto. The setup aims to improve how decisions are made and how products are developed.
PayPal President and Chief Executive Officer Enrique Lores said the company must “recommit to our fundamentals” while improving accountability and operational focus.
The company also named new leaders under its new structure:
- Frank Keller is the President of Checkout Solutions & PayPal
- Alexis Sowa will serve as interim lead for Consumer Financial Services & Venmo
- Jeff Pomeroy will temporarily oversee Payment Services & Crypto
- Antonio Lucio is the new Chief Marketing and Corporate Affairs Officer
- Anshu Bhardwaj is the new Chief AI Transformation and Simplification Officer
These new changes support the firm’s revised way of working. The transition also includes the departure of two senior executives. Diego Scotti is leaving after helping expand Venmo’s business and leading products such as PayPal Everywhere, PayPal+, and PayPal Ads.
Michelle Gill is also leaving after boosting PayPal’s small business and payment offerings. Their exit marks a major leadership reset as the firm changes its business setup. PayPal also said more details will be shared during its May 5 earnings call.
Earnings Pressure Builds as Analysts Cut Expectations
PayPal will report first-quarter earnings on Tuesday before the market opens, putting fresh focus on its financial results. Last quarter, the firm reported revenue of $8.68 billion, up 3.7% from a year earlier, but still below Wall Street’s forecasts.
Analysts now expect revenue to grow 3.3% this quarter, a bit higher than the 1.2% growth recorded in the same period last year. Revenue forecasts have also declined over the past 30 days as analysts have grown more cautious and bearish ahead of earnings.
PayPal has also missed Wall Street revenue targets several times over the past two years. While its stock price has fallen by over 23% in the past six months, it has increased by 22% over the last three months, according to TipRanks data.
Is PYPL a Buy, Sell, or Hold?
Analysts tracked on TipRanks rate PayPal (PYPL) a Hold. The stock’s average price target is $48, reflecting a more than 3% downside potential. The bearish stance also suggests that analysts are cautiously awaiting the Q1 earnings release before shifting their outlook. To get more information on PYPL, investors can track its ratings, price targets, and stock performance on the TipRanks Stocks Comparison Center.
