PayPal Holdings, Inc. reported significant financial results for the third quarter and the first nine months of 2024, reflecting a robust performance in revenue generation and operational efficiency. For the three months ended September 30, 2024, net revenues reached $7,847 million, marking a 6% increase from $7,418 million in the same period of 2023. For the nine months, revenues totaled $23,431 million, an 8% rise from $21,745 million year-over-year. This growth was primarily driven by a 6% increase in transaction revenues, which amounted to $7,067 million for the third quarter and $21,254 million for the nine months, up from $6,654 million and $19,574 million, respectively.
Operating income also saw substantial growth, with a 19% increase to $1,391 million for the third quarter and an 18% increase to $3,884 million for the nine months. However, net income for the third quarter slightly decreased to $1,010 million from $1,020 million in 2023, while for the nine months, it increased by 6% to $3,026 million from $2,844 million. The diluted net income per share rose to $0.99 for the third quarter and $2.89 for the nine months, reflecting increases of 6% and 13%, respectively.
PayPal's total assets increased to $83,511 million as of September 30, 2024, up from $82,166 million at the end of 2023. Cash and cash equivalents decreased to $7,272 million from $9,081 million, while total current liabilities rose to $50,268 million from $48,466 million. The company’s long-term debt also increased to $9,976 million from $9,676 million.
Strategically, PayPal has not engaged in any acquisitions or divestitures during the reported periods. However, the company initiated a global workforce reduction in early 2024, resulting in restructuring charges of $294 million for the nine months ended September 30, 2024, compared to $120 million for the same period in 2023. This restructuring is expected to yield an estimated annualized reduction in employee-related costs of approximately $575 million.
In terms of cash flow, net cash provided by operating activities surged to $5,056 million for the nine months ended September 30, 2024, compared to $2,229 million in the prior year. The company also repurchased approximately $4.8 billion of its common stock during this period, with $6.1 billion remaining available for future repurchases under its stock buyback program.
Overall, PayPal's performance in 2024 reflects a strong operational foundation, with strategic initiatives aimed at enhancing efficiency and shareholder value amidst a competitive digital payments landscape.
About PayPal Holdings, Inc.
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