PayPal Reports Third-Quarter 2022 Results 📊
Scott D. Clary | Daily Business, Tech & Finance Newsletter
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Here’s whats happening:
- PayPal reports third-quarter 2022 results
- Meta plans large-scale layoffs this week
- OpenSea introduces a new tool to impose NFT royalties
- Emerge secures $3.2 million in funding
- Twitter begins rolling out changes
PayPal Reports Third-Quarter 2022 Results 📊
PayPal Holdings, Inc. recently reported its third quarter 2022 results for the period ended September 30, 2022, which saw the company beat earnings and revenue expectations.
Here’s how the company did:
- Revenue: $6.85 billion, up 12% compared to Q3 2021, beating analysts’ estimates of $6.82 billion.
- Earnings per share (EPS): $1.08 per share vs 96 cents expected.
- Operating cash flow is at $1.9 billion, which is 29% compared to $1.5 billion a year ago.
- Free cash flow is at $1.8 billion, which is up 37% from a year ago.
The road ahead:
- PayPal estimated Q4 revenues to come in at $7.38 billion, growing around 7% on a spot basis.
- The company raised EPS guidance for the full financial year, saying it benefited from “ongoing productivity initiatives.” It expects to add 8 to 10 million net new active users in the fiscal year.
- PayPal said it’s working with Apple to enhance its offerings for PayPal and Venmo.
Meta Plans Large-scale Layoffs This Week ✂️
Meta could begin large-scale layoffs as soon as this week, a move that could mark the first major headcount reduction in the company’s history.
- The layoffs are reportedly expected to impact thousands of staff members; however, it is currently unclear how many people would be cut and in which departments.
- At the end of September, Meta reported that it had more than 87,000 employees, and large-scale layoffs are expected to cut a significant portion of its employees.
- This move from Meta comes months after the company announced plans to cut jobs by 30% in June, with the company CEO Mark Zuckerberg warning employees to brace for an economic downturn.
The bigger picture:
Meta’s disappointing outlook comes as the company continues to struggle with slowing global economic growth, privacy changes from Apple, and competition from TikTok, in addition to growing concerns about massive spending on the metaverse.
OpenSea Introduces a New Tool to Impose NFT Royalties 🔧🪛
Nonfungible (NFT) marketplace OpenSea has announced the launch of a new “on-chain” tool that will help creators enforce royalties.
- The new tool is said to be the first on-chain executable version of OpenSea, and the company plans to roll out more tools in the coming months for a new series of on-chain executions.
- The NFT marketplace also plans to engage with the NFT community to get their feedback along the way and make improvements to the tools.
- OpenSea says that by giving on-chain enforcement tools to creators, they can balance the scales and equip them with tools to control their business model.
- However, the tool won’t be rolled out for existing NFT collections due to implementation challenges.
OpenSea CEO Devin Finzer says… “We don’t expect that we can drive this ecosystem shift alone, nor do we think that all creators will want to use creator fees as a form of monetization. But by providing on-chain enforcement tools, we hope to lend creators our support so they can choose. We hope this also inspires others looking for solutions to keep creator fees a part of our ecosystem to join us and work collaboratively on even more solutions.”
Emerge Secures $3.2 Million in Funding 💰
Emerge Career, a platform that offers vocational training has raised $3.2 million in its seed funding round.
The round was led by Alexis Ohanian’s 776, along with participation from the SoftBank Opportunity Fund, Y Combinator, Lenny Rachitsky, and Michael Seibel.
What will Emerge Career do with the funding?
Emerge will use the fresh capital to hire engineers and start new welding and nursing programs.
In addition, the startup plans to use the funding to expand to three more states in the United States.
About Emerge Career:
Founded in 2022 by Gabriel Saruhashi and Uzoma Orchingwa, Emerge Career is a platform offering vocational training for people released from prison to get immediate jobs.
The New York-based company aims to make its platform the first choice for anyone in the country who has a disadvantaged background to get a second chance in the modern workforce.
Twitter Begins Rolling Out Changes to Its Platform 🐥
Days after completing his $44 billion acquisition of Twitter, Elon Musk has started rolling out changes to the social media platform for some users.
The company is revamping its subscription service “Twitter Blue,” where users will be able to purchase Twitter Blue and receive a blue checkmark for $7.99 per month.
The new updates are reportedly available for users in the United States, Canada, Australia, the UK, and New Zealand, according to the description in the Apple store.
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