PayPal Holdings, Inc. (NASDAQ:PYPL) Q1 2024 Earnings Call Transcript

Alex Chriss: Yes, it is a combination. What I’d say is we’re seeing pay with Venmo really starting to take off. Obviously in the U.S., it’s an incredibly well loved brand, and when people see that button, it’s an opportunity for them to use those dollars that I mentioned earlier that are in their accounts, so that’s an exciting piece online. The piece that, again, I’m sort of dissatisfied with but excited about the future, is the offline piece. When I talk about omnichannel, it’s for PayPal and for Venmo, and so those billions of dollars that are coming in every month into the Venmo ecosystem, we have to continue to give our customers opportunities, whether it’s debit card penetration or other innovation that we come up with, for them to be able to tap and pay and check out.

All of that will move towards improving transaction margin. That said, we’re also getting better with our risk models and leveraging AI. We are–there’s a lot of AI conversations in the market. I would say we are one of the leaders when it comes to leveraging the data that we have at scale to improve our transaction losses, improve the customer service ability for our customers, and improve our transaction margin over time. Again, early days, there’s a lot of work to continue there, but again my excitement for the path and the direction for Venmo is pretty high.

James Faucette: Thank you.

Operator: That is all the time we have for questions. I will turn the call back to Alex Chriss for closing remarks.

Alex Chriss: Fantastic, thank you Sarah, and thanks everyone for joining us today. As you can tell from our results and the comments today, we’re making steady progress on our transformation efforts. We had a good first quarter and we are deep in execution mode, and with time we will return this company to profitable growth that I know we can deliver. Thank you all.

Operator: This concludes today’s conference call. You may now disconnect.