PayPal (PYPL) announced its 1st quarter results of 2022 along with its detailed earnings release report. Besides that, the company is also going to host a conference call with the investors to discuss the results.
Currently, more than 429 million users and merchants are using the PayPal platform for its financial and commerce services. All together, PYPL has a stronghold in 200+ markets around the world which makes it one of the biggest fintech players in the world.
However, another big event happened besides the earnings release, which pushed the PYPL stock lower. PayPal's CFO, John Rainey, announced his plans to leave the company for Walmart (WMT). Before the management change announcement, the PYPL stock had already lost 42% this year and a 65% decline from the all-time high.
For now, Rainey is expected to stay at the company until the end of May, according to the company.
It seems that the departure of John Rainey will be conceived as negative by the investors. In fact, this will refresh the investor's fear about the company's ability to reach its financial targets and sustain strong growth.
Interim Chief Financial Officer Appointed
To ensure a smooth transition, PayPal has already appointed an interim CFO for the company. The new name given for the interim CFO is Gabrielle Rabinovitch, who is also the senior vice president and corporate finance officer of the company.
It has been two quarters already in which PYPL announced lower guidance than what's expected, and that's the main reason behind the departure of the CFO, according to experts.
The earnings of December-quarter of PayPal missed the earnings and even total payment volume estimates. And the profit guidance for 2022 was also missed, which further intensified the problems. In addition, the 5-year financial target of PYPL was also abandoned!
In other news, the parent company of PYPL is also going to shift from PayPal to Adyen (a Netherlands-based payment processor).