PayPal Holdings, Inc. (PYPL) 2019 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to PayPal Second Quarter 2019 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to introduce your host for today's call, Ms. Gabrielle Rabinovitch, Head of Investor Relations. Please go ahead.

各位女士、先生，大家好，歡迎參加 PayPal 2019 年第二季財報電話會議。(接線員指示) 提醒各位，本次會議將被錄音。現在我想介紹今天會議的主持人：投資人關係主管 Gabrielle Rabinovitch 女士。請開始。

Thank you, Cheri. Good afternoon, and thank you for joining us. Welcome to PayPal Holdings' earnings conference call for the second quarter 2019.

謝謝你，Cheri。各位午安，感謝各位加入我們。歡迎參加 PayPal Holdings 2019 年第二季財報電話會議。

Joining me today on the call are Dan Schulman, our President and CEO; and John Rainey, our Chief Financial Officer and EVP, Global Customer Operations. We're providing a slide presentation to accompany our commentary. This conference call is also being webcast, and both the presentation and call are available through the Investor Relations section of our website.

今天與我一同出席電話會議的有：我們的總裁兼執行長 Dan Schulman，以及我們的財務長暨全球客戶營運執行副總裁 John Rainey。我們提供投影片簡報以配合我們的說明。本次電話會議亦同步網路直播，簡報與會議內容皆可透過我們網站的投資人關係專區取得。

We will discuss some non-GAAP measures in talking about our company's performance. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in the presentation accompanying this conference call.

在討論公司表現時，我們將提及部分非 GAAP 指標。您可在本次電話會議隨附的簡報中，找到這些非 GAAP 指標與最直接可比的 GAAP 指標之調節表。

In addition, management will make forward-looking statements that are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include our guidance for third quarter and full year 2019, our medium-term outlook and the impact of our acquisitions. Our actual results may differ materially from these statements. You can find more information about risks, uncertainties and other factors that could affect our results in our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC and available on the Investor Relations section of our website. You should not rely on any forward-looking statements. All information in this presentation is as of today's date, July 24, 2019. We expressly disclaim any obligation to update the information.

此外，管理層將作出前瞻性陳述，該等陳述係基於我們目前的預期、預測與假設，並涉及風險與不確定性。這些陳述包括我們對 2019 年第三季及全年之指引、中期展望，以及我們收購案的影響。我們的實際結果可能與這些陳述存在重大差異。關於可能影響我們業績的風險、不確定性及其他因素之更多資訊，請參閱我們最近一期向美國證券交易委員會（SEC）提交的 Form 10-K 年度報告與 Form 10-Q 季度報告，並可於我們網站的投資人關係專區取得。您不應依賴任何前瞻性陳述。本簡報中的所有資訊截至今日（2019 年 7 月 24 日）。我們明確聲明不承擔更新該等資訊之任何義務。

With that, let me turn the call over to Dan.

接下來，我把電話交給 Dan。

Thank you, Gabrielle, and thanks, everyone, for joining us today. I'm pleased to report that PayPal had a solid quarter. In the second quarter, we generated $4.31 billion in revenue, growing 12% year-over-year on an FX-neutral and spot basis, or 19% adjusted for the sale of our consumer credit receivables to Synchrony.

謝謝你，Gabrielle，也感謝各位今天加入我們。我很高興報告，PayPal 本季表現穩健。第二季我們創造 43.1 億美元營收，在匯率中性及即期匯率基礎下年增 12%；若調整我們將消費者信用應收款出售給 Synchrony 的影響，則年增 19%。

For the second quarter, we delivered $0.86 of non-GAAP EPS, which included a $0.14 gain from our strategic investments, including MercadoLibre, Uber and others. Non-GAAP EPS grew 47% and excluding strategic investments, grew by 27%. Our Q2 non-GAAP operating margin increased by approximately 200 basis points year-over-year to 23.2%. This represents the largest year-over-year increase in our non-GAAP OI margin since becoming an independent public company 4 years ago.

第二季我們達成每股 0.86 美元的非 GAAP EPS，其中包含來自我們策略性投資（包括 MercadoLibre、Uber 等）的 0.14 美元收益。非 GAAP EPS 年增 47%；若排除策略性投資，則成長 27%。我們第二季非 GAAP 營業利益率年增約 200 個基點至 23.2%。這是我們在 4 年前成為獨立上市公司以來，非 GAAP 營業利益率最大的一次年增幅。

Another highlight of the quarter was our growth in both net new actives and engagement. We added 9 million net new actives in the quarter, up 17% year-over-year. We now have 286 million active accounts on our platform, including 23 million merchants, and we remain on pace to exceed 300 million active accounts by the end of the year. Over the past 12 months, we've added 41 million net new actives, a new record for us.

本季另一項亮點是淨新增活躍帳戶與使用黏著度（engagement）雙雙成長。本季我們淨新增 900 萬個活躍帳戶，年增 17%。目前我們平台上共有 2.86 億個活躍帳戶，其中包含 2,300 萬家商戶；我們仍按計畫在年底前突破 3 億個活躍帳戶。過去 12 個月，我們淨新增 4,100 萬個活躍帳戶，創下新紀錄。

Engagement also continues to consistently improve, growing by 9.3% to 39 transactions per active account. Increasing use of our platform helped to drive $172 billion of TPV in the quarter, up 26% on an FX-neutral basis, an increase of approximately 100 basis points from last quarter. Total payment volume, excluding eBay, grew 30% on an FX-neutral basis, up 70 basis points from last quarter and outpaced the overall payments market as we continue to gain share.

使用黏著度也持續穩定改善，每個活躍帳戶交易次數成長 9.3% 至 39 筆。平台使用增加帶動本季 TPV 達 1,720 億美元，在匯率中性基礎下成長 26%，較上季提升約 100 個基點。若排除 eBay，總支付交易量在匯率中性基礎下成長 30%，較上季提升 70 個基點，並持續跑贏整體支付市場、擴大市占。

eBay Marketplaces TPV once again declined approximately 4% in the quarter and now represents just 9% of our overall TPV, down nearly 300 basis points from Q2 last year. We processed approximately 1 billion transactions per month in Q2, up 28% year-over-year.

eBay Marketplaces 的 TPV 本季再度下滑約 4%，目前僅占我們整體 TPV 的 9%，較去年第二季下降近 300 個基點。我們在第二季每月處理約 10 億筆交易，年增 28%。

Mobile TPV grew by 37% to more than $73 billion in Q2. One Touch, with 149 million consumers and 13 million merchants, remains a clear leader in mobile checkout with nearly 2x the conversion of competing wallets, helping merchants of all sizes increase sales in the competitive omnichannel retail environment. One Touch now enables over 80% of the Internet Retailer 100 in the U.S.

第二季行動端 TPV 成長 37%，超過 730 億美元。One Touch 擁有 1.49 億名消費者與 1,300 萬家商戶，仍是行動結帳的明確領導者，其轉換率接近競爭錢包的 2 倍，協助各種規模的商戶在競爭激烈的全通路零售環境中提升銷售。One Touch 目前已支援美國 Internet Retailer 100 中超過 80% 的業者。

Venmo continues its significant momentum and is well on its way to becoming a daily part of our consumers' financial lives. Venmo total payment volume increased 70% year-over-year to $24 billion in Q2, and we continue to expect to drive nearly $100 billion in TPV by year-end. Venmo continues to significantly grow its revenues with approximately 15 million Venmo users having engaged in a monetizable transaction. With another quarter of outstanding net new active growth, Venmo continues to offer a significant opportunity for merchants to attract a valuable, engaged consumer base.

Venmo 持續展現強勁動能，正穩步成為消費者日常金融生活的一部分。Venmo 第二季總支付交易量年增 70% 至 240 億美元，我們仍預期在年底前推動 TPV 接近 1,000 億美元。Venmo 的營收亦持續顯著成長，約有 1,500 萬名 Venmo 用戶曾進行可變現的交易。在又一季亮眼的淨新增活躍成長下，Venmo 持續為商戶提供吸引高價值、具高度參與度消費者族群的重大機會。

In addition to adding Fandango, Stitch Fix, 1-800-Flowers, TodayTix and TicketNetwork to our growing list of merchant partners offering Venmo as a way to pay, we continue to enrich the Venmo experience by making it even more engaging and personalized. In the second quarter, we added Bitmoji to the Venmo app, allowing users to include their personalized Bitmoji along with the payment notes of their Venmo transactions.

除了將 Fandango、Stitch Fix、1-800-Flowers、TodayTix 與 TicketNetwork 納入我們持續擴大的商戶合作夥伴名單、提供 Venmo 作為付款方式之外，我們也持續豐富 Venmo 體驗，使其更具互動性與個人化。第二季我們在 Venmo App 中加入 Bitmoji，讓用戶可在 Venmo 交易的付款備註中一併加入個人化的 Bitmoji。

As we work to improve the financial health of hundreds of millions of people across the globe, I'm thrilled that we recently expanded Xoom into 32 new send markets throughout Europe. Customers across Europe can now use Xoom to send money, pay bills or reload phones to more than 130 markets internationally. Launching Xoom's full capabilities globally is an important development for us as our upgraded tech platform increasingly allows us to deploy capabilities across multiple countries as opposed to the country-by-country rollouts we previously deployed.

在我們致力於改善全球數億人財務健康的同時，我很振奮地宣布，我們近期已將 Xoom 擴展至歐洲 32 個新的匯款發送市場。歐洲各地的客戶現在可使用 Xoom 向全球超過 130 個市場匯款、繳費或為手機加值。在全球推出 Xoom 的完整功能對我們而言是一項重要進展，因為我們升級後的技術平台愈來愈能讓我們在多個國家同步部署功能，而非過去採取逐國推出的方式。

This quarter, we announced the PayPal Commerce Platform, a new solution that will help our merchants drive their sales volumes in the digital commerce era. The PayPal Commerce Platform is designed to meet the specific needs of marketplaces, e-commerce platforms and crowdfunding sites by bringing together a comprehensive set of technologies, tools, services and financing solutions for businesses of all sizes. Powered by PayPal's unique 2-sided network, the PayPal Commerce Platform gives nearly any business access to a flexible, customizable suite of services that enables global growth, simplifies compliance, provides risk protection, empowers their end-to-end payment capabilities.

本季我們宣布推出 PayPal Commerce Platform，這是一項新解決方案，將協助商戶在數位商務時代提升其銷售量。PayPal Commerce Platform 旨在滿足市集平台、電商平台與群眾募資網站的特定需求，整合一套完整的技術、工具、服務與融資解決方案，服務各種規模的企業。依託 PayPal 獨特的雙邊網路，PayPal Commerce Platform 讓幾乎任何企業都能使用一套彈性、可客製化的服務組合，以支持全球成長、簡化合規、提供風險保障，並強化其端到端的支付能力。

Our business financing solutions are another way that we're helping businesses grow and achieve their ambitions. This quarter, we began offering our PayPal business loan product to PayPal merchants in Canada, allowing them to access financing to build and sustain their businesses. This follows the expansion of our business financing solutions to Germany in Q4 of 2018 and Mexico earlier this year in partnership with Mexican lending platform, Konfío. Since launching our business financing solutions, we provided access to more than $10 billion in funding through 650,000 loans and cash advances to more than 0.25 million small businesses around the world.

我們的企業融資解決方案也是我們協助企業成長並實現其抱負的另一種方式。本季我們開始向加拿大的 PayPal 商戶提供 PayPal 企業貸款產品，讓他們能取得資金以建立並維持其業務。這是在我們於 2018 年第四季將企業融資解決方案擴展至德國，以及今年稍早與墨西哥放貸平台 Konfío 合作擴展至墨西哥之後的延伸。自推出企業融資解決方案以來，我們已透過 65 萬筆貸款與預支款，提供超過 100 億美元資金，協助全球超過 25 萬家小型企業取得融資。

In June, the U.K. Competition and Markets Authority provided final approval of our acquisition of iZettle. We are now beginning to integrate iZettle's products and teams around the globe, which we expect will significantly strengthen PayPal's in-store presence.

6月，英國競爭與市場管理局（CMA）對我們收購 iZettle 一案給予最終核准。我們現正開始在全球整合 iZettle 的產品與團隊，預期將大幅強化 PayPal 的實體店內（in-store）布局。

Finally, we continue to partner with leading technology platforms and financial institutions to reimagine financial services. We believe that the full potential of fintech can only be realized through partnerships that leverage the best of our collective assets. In the quarter, we expanded our collaboration with Google to allow businesses to accept PayPal with Google Pay through their apps and websites. This feature is now available in all 24 countries where Google Pay supports PayPal as a payment method.

最後，我們持續與領先的科技平台與金融機構合作，重新想像金融服務。我們相信，金融科技的全部潛力唯有透過合作夥伴關係、善用我們集體資產的最佳組合，才能真正實現。本季我們擴大與 Google 的合作，讓商家可透過其 App 與網站使用 Google Pay 接受 PayPal 付款。此功能目前已在 Google Pay 支援以 PayPal 作為付款方式的全部 24 個國家上線。

We both solidified and extended our global partnership with Uber and also announced that we intend to explore future commercial payment collaborations, including the development of Uber's digital wallet. As part of this agreement, we invested $500 million in a private placement, and we couldn't be more excited about deepening our relationship with this innovative partner.

我們不僅鞏固並延伸與 Uber 的全球合作夥伴關係，也宣布有意探索未來的商業支付合作，包括開發 Uber 的數位錢包。作為協議的一部分，我們以私募方式投資 5 億美元，並對於與這位創新夥伴深化關係感到無比振奮。

And we are almost complete with our MercadoLibre commercial agreement. This will significantly deepen our strategic relationship and expand our international scope and scale. We expect this will include integration of PayPal into the MercadoLibre marketplace, open our merchant network through our Smart Payment's button platform to MercadoPago customers and link our respective consumers together for P2P and international remittances.

此外，我們與 MercadoLibre 的商業協議也已接近完成。這將大幅深化我們的策略關係，並擴大我們的國際範疇與規模。我們預期內容將包括：把 PayPal 整合進 MercadoLibre 市集；透過我們的 Smart Payment 按鈕平台，向 MercadoPago 客戶開放我們的商戶網路；並將雙方消費者連結起來，以支援 P2P 與國際匯款。

These developments represent significant milestones on our journey to be the worldwide payments platform of choice, helping to enable global commerce by connecting the world's leading marketplaces and payment networks. These are complex, multifaceted partnerships, and they take multiple quarters to come to fruition. As we've deepened these relationships, we are frequently seeing the opportunity to deploy capabilities well beyond our initial scoping. While the scope expansion has delayed some of our initially planned deployment dates, it bodes well for the ultimate scale of these initiatives. And while these delays have slightly affected our revenue guidance for the year, we remain quite confident that the majority of these will be implemented by year-end. We are also raising our EPS guidance for the year and expanding our operating margin, and we are confident in the medium-term targets outlined at our Investor Day last May. We certainly have no shortage of opportunities in front of us, and we look forward to shaping an exciting future with our partners, customers and employees.

這些進展代表我們邁向成為全球首選支付平台旅程中的重要里程碑，透過連結全球領先的市集與支付網路，協助促成全球商務。這些合作關係複雜且多面向，通常需要跨越多個季度才能開花結果。隨著我們加深這些關係，我們經常看到能部署的能力遠超出最初的範疇界定。雖然範疇擴大使部分原先規劃的部署時程延後，但這對於這些計畫最終可達成的規模是正面的訊號。儘管這些延遲對我們今年的營收指引造成些微影響，我們仍相當有信心其中大多數將在年底前完成導入。我們也上調今年的 EPS 指引並擴大營業利益率，且我們對去年 5 月投資人日所提出的中期目標仍充滿信心。我們面前的機會絕不匱乏，並期待與合作夥伴、客戶與員工一同塑造令人振奮的未來。

And with that, I'll turn the call over to John.

接下來，我把電話會議交給 John。

Thanks, Dan. I want to start off by thanking our customers, partners and global team for helping us deliver another solid quarter. We had strong performance both financially and operationally. We grew non-GAAP operating income 22% to $998 million and are reporting records for both operating margin and operating margin expansion. We also generated more than $1 billion in free cash flow in the quarter, which grew 40% on a normalized basis. Operationally, trends in our net new active accounts, engagement and TPV remained strong. Our performance demonstrates the consistent strength of our platform and the scalability of our model.

謝謝，Dan。我想先感謝我們的客戶、合作夥伴與全球團隊，協助我們再度交出穩健的一季表現。我們在財務與營運兩方面皆有強勁表現。我們的非 GAAP 營業利益成長 22% 至 9.98 億美元，並創下營業利益率與營業利益率擴張的紀錄。本季我們也產生超過 10 億美元的自由現金流，按常態化口徑計算成長 40%。在營運面，我們的淨新增活躍帳戶、使用黏著度與 TPV 的趨勢仍然強勁。我們的表現展現了平台一貫的強韌性以及我們模式的可擴展性。

Revenue in the second quarter increased 12% on both a spot and currency-neutral basis to $4.31 billion. Adjusting for the sale of U.S. receivables to Synchrony, revenue growth was approximately 19%. Acquisitions contributed approximately 1.8 points to revenue growth in the quarter. In addition, the effect of the stronger dollar net of hedging was a revenue headwind of $35 million. U.S. revenue grew 7% versus Q2 2018 and approximately 20% adjusting for the credit receivable sell. International revenue grew 18%.

第二季營收在即期匯率與固定匯率（currency-neutral）口徑下皆成長 12%，達 43.1 億美元。若調整將美國應收款出售予 Synchrony 的影響，營收成長約為 19%。本季併購對營收成長貢獻約 1.8 個百分點。此外，扣除避險後美元走強的影響，使營收承受 3,500 萬美元的不利因素（headwind）。美國營收較 2018 年第二季成長 7%，若調整出售信用應收款的影響則約成長 20%。國際營收成長 18%。

On a spot basis, transaction revenue grew 17% in the quarter. Revenue from other value-added services declined 21% as a result of the receivable sell. On a normalized basis, it grew approximately 30%. In addition, we recognized $58 million in revenue from Synchrony related to loan servicing and collections. As planned, Synchrony took over these services at the end of June. Going forward, we will no longer benefit from the revenue related to these services.

以即期匯率計，本季交易營收成長 17%。由於出售應收款，其他加值服務的營收下滑 21%。按常態化口徑計算，該項營收約成長 30%。此外，我們認列來自 Synchrony、與貸款服務與催收相關的 5,800 萬美元營收。依計畫，Synchrony 已於 6 月底接手這些服務。未來我們將不再受益於與這些服務相關的營收。

In the second quarter, transaction take rate was 2.25%. Compared to Q2 2018, this was a decline of 13 basis points. Strong growth in P2P contributed to approximately half of the decline. Ongoing weakness in eBay's Marketplaces business and pressure from the stronger dollar on a few key cross-border corridors were also responsible for the reduction. Total take rate in Q2 declined 27 basis points from the prior year. Approximately 60% of this decline was attributable to the credit receivable sell. The same factors that affected transaction take rate also contributed to the decline in our total take rate. Both transaction take rate and total take rate benefited by approximately 5 basis points from revenue related to our hedge gains.

第二季交易抽成率（transaction take rate）為 2.25%。相較 2018 年第二季，下滑 13 個基點。P2P 的強勁成長約貢獻了其中一半的降幅。eBay 市集業務持續疲弱，以及美元走強對少數關鍵跨境走廊的壓力，也導致抽成率下降。第二季總抽成率（total take rate）較去年同期下滑 27 個基點。其中約 60% 的降幅可歸因於出售信用應收款。影響交易抽成率的相同因素，也促成我們總抽成率的下滑。交易抽成率與總抽成率皆因與避險收益相關的營收而受益約 5 個基點。

Volume-based expenses increased 15% in the second quarter to $1.9 billion. Transaction expense was 94 basis points as a rate of TPV, improving 4 basis points from Q2 2018 and 2 basis points sequentially. The reduction in transaction expense as a rate was primarily due to the timing of the realization of benefits from volume incentives, which were recognized in the third quarter last year. For the remainder of the year, we expect our transaction expense as a rate of TPV to be in the range of 95 to 98 basis points.

第二季以交易量為基礎的費用（volume-based expenses）增加 15%，至 19 億美元。交易費用（transaction expense）占 TPV 的比率為 94 個基點，較 2018 年第二季改善 4 個基點，較上一季改善 2 個基點。交易費用率下降主要是因為量能激勵（volume incentives）效益實現的時點差異；去年這些效益是在第三季認列。在今年剩餘期間，我們預期交易費用占 TPV 的比率將落在 95 至 98 個基點區間。

Transaction loss was 14 basis points as a rate of TPV, a decline of 5 basis points from Q2 2018 and 4 basis points sequentially. This reduction in transaction loss was driven by improvements in our risk management capabilities. Loan losses were 4 basis points as a rate of TPV, in line with recent performance.

交易損失（transaction loss）占 TPV 的比率為 14 個基點，較 2018 年第二季下降 5 個基點，較上一季下降 4 個基點。交易損失下降主要由我們風險管理能力的改善所帶動。貸款損失（loan losses）占 TPV 的比率為 4 個基點，與近期表現一致。

Transaction margin dollars grew 9% to $2.4 billion in the second quarter. Transaction margin as a rate was 55%, a decline of approximately 120 basis points versus Q2 '18. Over the past 4 quarters, the credit receivable sell has been a meaningful driver of the decline in transaction margin dollar growth. We expect growth to reaccelerate in the second half of 2019 and be in the range we reported prior to the Synchrony announcement.

第二季交易毛利金額（transaction margin dollars）成長 9%，至 24 億美元。交易毛利率（transaction margin as a rate）為 55%，較 2018 年第二季約下降 120 個基點。過去 4 個季度，出售信用應收款一直是交易毛利金額成長放緩的重要因素。我們預期 2019 年下半年成長將重新加速，並回到我們在宣布與 Synchrony 交易之前所揭露的區間。

Nontransaction-related expenses grew 2% versus last year. Growth in these expenses was affected by both the lapping of held-for-sale accounting changes, which resulted in a lower rate of growth year-over-year, as well as an increase in expenses related to our 2018 acquisitions. Normalizing for both, nontransaction-related expenses grew 6%. On this adjusted basis, we delivered 300 basis points of operating leverage with these expenses increasing only $0.11 for every dollar increase in revenue. This is indicative of our sustained ability to grow at a low marginal cost.

非交易相關費用（nontransaction-related expenses）較去年成長 2%。這些費用的成長同時受到兩項因素影響：一是待售（held-for-sale）會計變更的比較基期效應，使年增率較低；二是與我們 2018 年併購案相關的費用增加。若將兩者常態化調整，非交易相關費用成長 6%。在此調整口徑下，我們實現 300 個基點的營運槓桿，亦即每增加 1 美元營收，這些費用僅增加 0.11 美元。這顯示我們具備以低邊際成本持續成長的能力。

Across our business, we're pleased with our operating discipline and cost performance. Our scale continues to afford us leverage opportunities. On a non-GAAP basis, operating income in the second quarter grew 22% to $998 million and our operating margin expanded approximately 200 basis points from Q2 2018. Adjusting for 2018 acquisitions, operating income grew 24% and our operating margin expanded 280 basis points in the quarter. Other income in the quarter increased by $201 million, primarily due to a $187 million increase in net unrealized gains on strategic investments.

在我們的整體業務中，我們對自身的營運紀律與成本表現感到滿意。我們的規模持續為我們帶來槓桿化的機會。以非 GAAP 基礎計算，第二季營業利益成長 22% 至 9.98 億美元，營業利益率較 2018 年第二季擴大約 200 個基點。若調整 2018 年併購因素，營業利益成長 24%，本季營業利益率擴大 280 個基點。本季其他收益增加 2.01 億美元，主要來自策略性投資的淨未實現收益增加 1.87 億美元。

On a per share basis, unrealized gains contributed approximately $0.14 after tax. $0.01 of this benefit was included in the EPS guidance we provided in April. The incremental $0.13 was not in our guidance and resulted predominantly from our investments in MercadoLibre and Uber. Consistent with the plans we discussed on our last earnings call, we disclosed the expected effect of these unrealized gains on our second quarter earnings in our 8-K released on July 9.

以每股計算，未實現收益在稅後約貢獻 0.14 美元。其中 0.01 美元的效益已包含在我們 4 月提供的 EPS 指引中。新增的 0.13 美元未納入我們的指引，主要來自我們對 MercadoLibre 與 Uber 的投資。依照我們在上次財報電話會議中討論的計畫，我們已在 7 月 9 日發布的 8-K 中揭露這些未實現收益對第二季盈餘的預期影響。

Non-GAAP EPS for the second quarter grew 47% to $0.86. Adjusting for unrealized gains of $0.14 this year and $0.02 last year, non-GAAP EPS grew 27% in the quarter. Our strong EPS results reflect the operational outperformance with solid revenue growth, efficiencies and cost discipline all contributing in a meaningful way.

第二季非 GAAP 每股盈餘（EPS）成長 47% 至 0.86 美元。若調整今年 0.14 美元與去年 0.02 美元的未實現收益，非 GAAP EPS 本季成長 27%。我們強勁的 EPS 表現反映了營運超預期，穩健的營收成長、效率提升與成本紀律皆做出顯著貢獻。

We ended the quarter with cash, cash equivalents and investments of $10.7 billion. In addition, we generated more than $1 billion of free cash flow or approximately $0.24 of free cash flow for every dollar of revenue.

本季結束時，我們的現金、約當現金與投資合計為 107 億美元。此外，我們產生超過 10 億美元的自由現金流，或約每 1 美元營收對應 0.24 美元的自由現金流。

Now I'd like to discuss our updated guidance for 2019 and our guidance for the third quarter. For the full year 2019, we are raising our earnings outlook and lowering our revenue guidance, which I will speak to in a moment. We now expect non-GAAP earnings per share to grow 29% to 31% and be in the range of $3.12 to $3.17. Our raised earnings guidance reflects the outperformance of our business in the first half of 2019. It also incorporates the unrealized gains we have recognized from our strategic investment portfolio. As a reminder, these investments may create earnings volatility as we move through the year. Subsequent to quarter end and prior to the release of our earnings, we plan to continue disclosing the effect of these investments on our results. We also expect to expand our non-GAAP operating margin by approximately 100 basis points this year, demonstrating our sustained ability to scale our business (inaudible) incremental cost.

接下來我想說明我們更新後的 2019 年指引，以及第三季指引。針對 2019 全年，我們上調盈餘展望並下調營收指引，我稍後會說明原因。我們目前預期非 GAAP 每股盈餘將成長 29% 至 31%，落在 3.12 至 3.17 美元區間。我們上調的盈餘指引反映 2019 年上半年業務表現優於預期。同時也納入我們自策略性投資組合所認列的未實現收益。提醒一下，這些投資可能在全年推進過程中造成盈餘波動。在季末之後且於財報發布之前，我們計畫持續揭露這些投資對我們業績的影響。我們也預期今年非 GAAP 營業利益率將擴大約 100 個基點，展現我們持續擴大業務規模並以（聽不清）增量成本運作的能力。

For the full year, we are lowering our revenue outlook to a range of $17.6 billion to $17.8 billion from our prior range of $17.85 billion to $18.1 billion. This new range reflects growth of 14% to 15% for the year and adjusting for the sale of receivables, 18% to 19% growth.

就全年而言，我們將營收展望自先前的 178.5 億至 181 億美元，下調至 176 億至 178 億美元。此新區間反映全年成長 14% 至 15%；若調整應收款出售因素，則為 18% 至 19% 的成長。

Since we last provided guidance in April, a few key factors have contributed to revisions to our forecast. First, as Dan mentioned, we have a few big product integrations with partners that are experiencing delays, in part because of their expanded scope. Second, our previous guidance contemplated the implementation of certain price changes that we are now delaying. While the timing has shifted out a few quarters, we still expect to realize the full benefits of our partnership and pricing initiatives. And finally, approximately 20% of our volume is cross-border and affected by changes in foreign exchange rates. We now anticipate that continued strength in the U.S. dollar will have a greater impact on our revenue in the second half of the year than we previously expected. These changes to our 2019 revenue expectations are primarily related to the timing of initiatives. Our medium-term outlook for revenue and earnings as provided in May 2018 has not changed.

自我們上次於 4 月提供指引以來，有幾項關鍵因素促使我們修正預測。第一，如 Dan 所提到，我們與合作夥伴有幾項大型產品整合正面臨延遲，部分原因是範疇擴大。第二，我們先前的指引包含某些價格調整的實施，但我們目前將其延後。雖然時程往後推遲了幾個季度，我們仍預期能實現合作夥伴關係與定價措施的全部效益。最後，我們約 20% 的交易量為跨境交易，會受到外匯匯率變動影響。我們目前預期美元持續走強，將在下半年對營收造成比先前預期更大的影響。我們對 2019 年營收預期的這些調整，主要與各項措施的時點有關。我們在 2018 年 5 月提供的中期營收與盈餘展望並未改變。

For the third quarter, we expect revenue in the range of $4.33 billion to $4.38 billion or 18% to 19% growth on a currency-neutral basis. In addition, we expect non-GAAP earnings per share to be in the range of $0.69 to $0.71, representing 20% to 23% growth. Our third quarter EPS guidance includes an estimated $0.03 benefit from unrealized gains we expect to recognize in the quarter.

針對第三季，我們預期營收介於 43.3 億至 43.8 億美元，或以固定匯率基礎計算成長 18% 至 19%。此外，我們預期非 GAAP 每股盈餘介於 0.69 至 0.71 美元，代表成長 20% 至 23%。我們第三季 EPS 指引包含預估本季將認列的未實現收益帶來約 0.03 美元的效益。

In closing, we are pleased with the progress we are making across many fronts. We are advancing our strategic priorities and at the same time, sustainably improving our cost structure. The cash flow generating power of our business continues to give us great flexibility as we allocate capital with discipline. We are focused on creating value for our shareholders and strengthening our position as the world's leading digital payments platform for our customers.

最後，我們對於在多個面向所取得的進展感到滿意。我們推進策略優先事項的同時，也在可持續地改善成本結構。我們業務持續展現強勁的現金流創造能力，使我們能以紀律分配資本並保有高度彈性。我們專注於為股東創造價值，並強化我們作為全球領先數位支付平台、服務客戶的地位。

With that, I'll turn it over to the operator for questions. Thank you.

接下來我把時間交給接線員進行提問。謝謝。

(Operator Instructions) And our first question comes from Jason Kupferberg with Bank of America.

(接線員指示) 我們的第一個問題來自美國銀行（Bank of America）的 Jason Kupferberg。

So I just wanted to start with a question on the revised revenue outlook. So we're taking I guess about $300 million out and John, you walked us through 3 factors driving that. Any way you can kind of give us the relative sizing on those factors? And then if you could also just elaborate on some of the comments you alluded to about these revenues actually being delayed, not lost. Are we interpreting that properly? And should we assume that the lion's share of this essentially ends up getting recognized in 2020? Or does some of it bleed into '21? We'd love some more color on that.

我想先就修正後的營收展望提一個問題。我們看起來大約下修了 3 億美元，而 John 你帶我們梳理了驅動此變動的 3 個因素。你能否大致說明這些因素各自的相對比重？另外，也請你進一步闡述你提到這些營收其實是延後、而非流失的說法。我們這樣理解正確嗎？我們是否應假設其中絕大部分基本上會在 2020 年認列？還是有一部分會延伸到 2021 年？希望你能提供更多細節。

Sure, Jason. So without being specific on any 1 of the 3 items I mentioned, I would say that the magnitude of them are in the order that I laid them out, product integration, first; pricing, second; and then macro FX being third. I think to address your last point, we expect to realize the full 100% of the benefit from all of these. This is simply a delay in the realization of those benefits until 2020.

當然，Jason。在不針對我提到的 3 項中的任何一項做具體拆解的前提下，我會說其影響幅度大致依我剛才的順序排列：第一是產品整合；第二是定價；第三是宏觀外匯因素。至於你最後一點，我們預期能實現這些項目全部 100% 的效益。這只是把這些效益的實現時間延後到 2020 年。

And I'll emphasize that when you're a company our size that is growing at the rate that we are, oftentimes, we have to make educated guesses about the time frame of a lot of these launches taking place. Sometimes we do better than what we expected. Sometimes you get into something and you see scope expansion because of good opportunities or more complexity. And that results in a delay such as the case that we're seeing right now, but we still have a lot of excitement about what these opportunities present for us and do expect to realize the full benefit on a run rate basis.

我也想強調，當你是一家像我們這樣規模、且以目前這樣的速度成長的公司時，我們往往必須對許多產品上線的時間表做出有根據的推估。有時候我們做得比預期更好。有時候在推進過程中，會因為良好機會或更高的複雜度而出現範疇擴大。這就會導致像我們目前看到的這種延遲，但我們仍對這些機會能帶來的價值感到非常振奮，並且確實預期能在運行率（run rate）基礎上實現全部效益。

Yes. If I can just jump in on this, Jason. I appreciate the question. Yes, this is a matter of when, not if. And when we talk about when, we're talking about the next several quarters. And so for us, we feel like we had strong operational performance in the quarter. If you look at our net new actives, those were up by 17%. If you look at our engagement, again up by 9% plus. You look at just little things that actually matter a lot, like our risk improvements that we've put into place. Part of that is the result of acquisitions that we've done with Simility that's lowering our risks and helping our losses. These are all very sustainable types of things and that -- while the revenue is delayed, it's certainly not lost. In fact, we're confident all of that revenue will come in. The margin improvements are more permanent. And because we're just seeing those, this isn't taking away expenses from one thing to improve margins. These are sustainable margin improvements based on either better experiences that we're putting out or just better capabilities that we now have in the business.

是的。Jason，如果我可以插一句。感謝你的提問。是的，這是時間早晚的問題，而不是會不會發生的問題。而當我們談到「何時」，我們指的是接下來幾個季度。因此對我們而言，我們覺得本季度的營運表現很強勁。如果你看我們的淨新增活躍用戶，成長了17%。如果你看我們的互動度，也同樣成長了9%以上。你再看一些其實非常重要的小事，例如我們已經落地的風險改善措施。其中一部分是我們收購Simility所帶來的成果，降低了我們的風險並有助於減少損失。這些都是非常可持續的改善；雖然營收有所延後，但絕對不是流失。事實上，我們有信心這些營收都會進來。利潤率的改善則更具永久性。而且我們現在看到的改善，並不是把某一項費用挪走來提升利潤率。這些是可持續的利潤率改善，來自於我們提供更好的體驗，或是我們在業務上如今具備了更好的能力。

So I would say we feel really good as we look forward on this. It's unfortunate that some of these are slightly delayed, but I'll give you an example. One of these that was delayed was Paymentus. Paymentus is an extremely large strategic partner of ours. It is a brand-new vertical that we're putting into our stack. It involves integrating all of their multiple pillars into our platform, involves integrating them into our app. And this is a massive partnership for us. It's going to take a little bit longer than we thought but everything we hoped for is there and actually more. So it's just a good example. We probably underestimated the amount of work it would take to go and do that. And there is also, as John mentioned, a lot of scope expansion that occurred. But it's a great partnership and we'll have other bill payment players that will join as well.

所以我會說，展望未來我們感覺非常好。有些事情稍微延後確實令人遺憾，但我舉個例子。其中一個延後的是Paymentus。Paymentus是我們極其重要的大型策略合作夥伴。這是一個我們要納入技術堆疊的全新垂直領域。這涉及把他們多個支柱業務整合到我們的平台，也包括整合到我們的App。這對我們而言是一個規模非常大的合作。它會比我們原先預期花更久時間，但我們希望的一切都在那裡，甚至更多。所以這只是個很好的例子。我們可能低估了要完成這件事所需的工作量。而且如John提到的，期間也發生了很多範疇擴張。但這是一個很棒的合作關係，之後也會有其他帳單支付（bill payment）業者加入。

And so this is a matter of revenues being delayed, not lost, and we're trying to do this in a way that assures that when we do implement, whether it's partnerships or pricing changes, they are done in a world-class manner. And so I don't want to jam something in, in the quarter. I want to make sure that we're building the right, sustainable, long-term things for this business. And if we've got to delay something a quarter or 2, so be it to make sure that we do this the right way.

因此，這是營收延後而非流失的問題；我們也希望以一種能確保在落地時——不論是合作夥伴關係或是定價調整——都能以世界級方式完成的做法來推進。所以我不想為了趕在本季度就硬塞進去。我想確保我們是在為這項業務打造正確、可持續、長期的基礎。如果為了把事情做對而必須延後一個季度或兩個季度，那也無妨。

Our next question comes from Tien-Tsin Huang with JPMorgan.

下一個問題來自JPMorgan的Tien-Tsin Huang。

I want to ask on margin again. It looks like you're able to protect the bottom line here by showing a little more operating leverage against the lower revenue outlook. So what levers exactly are you pulling to make this happen? Are you sacrificing growth investments to do it? Then -- and I guess very importantly here, for a lot of us, do you have more margin levers available to you in the event revenue continues to face delays?

我想再問一次關於利潤率。看起來在營收展望下修的情況下，你們仍能透過展現更多營運槓桿來保護獲利底線。那麼你們究竟是拉動了哪些槓桿來達成？你們是否為此犧牲了成長投資？另外——我想對我們很多人來說很重要的是——如果營收持續面臨延後，你們是否還有更多可用的利潤率槓桿？

Tien-Tsin, thanks for the questions. I'll start and Dan may want to add a couple of things, but let me start with the headline that we are not turning away growth opportunities to achieve the leverage and the operating margin expansion that we have in the business. We believe that we've got significant opportunities. And we've talked a lot about these in the past, things like what we're doing around customer service, for example, how we're driving the contact rate down, how we're actually lowering the cost of that service. Even the very way that we develop product, we're becoming more efficient at.

Tien-Tsin，謝謝你的問題。我先回答，Dan也許會補充幾點；但先講重點：我們並沒有為了達成槓桿效益與營業利潤率擴張，而拒絕任何成長機會。我們相信我們仍有相當大的機會。我們過去也談過很多，例如我們在客戶服務方面所做的事：我們如何降低聯絡率（contact rate），以及如何實際降低該服務的成本。甚至在產品開發方式上，我們也變得更有效率。

And then you have to also remember over the last 4 years, we were propping up an independent public company and that requires investment in things like compliance and a lot of the back-office functions. And so those are largely behind us. And so what you're beginning to see right now is the realization of those economies of scale. And that said, I think fundamentally the main point here, but there's also an added point that I would point to this quarter, which is slightly different than what you've seen in some of the more recent quarters, and that's what we've done in our volume-based expenses. So if you look at both transaction expense and transaction losses, they appreciably declined as a rate of TPV from the prior quarters.

另外你也要記得，過去4年我們一直在支撐一家獨立上市公司，而這需要在合規等事項以及許多後台職能上投入。因此這些投入大多已經在我們身後了。所以你現在開始看到的是這些規模經濟的逐步實現。話雖如此，我認為從根本上來看主要重點仍是如此；但我也想指出本季度一個額外的點，這與你在最近幾個季度看到的略有不同，也就是我們在與交易量相關的費用（volume-based expenses）上所做的事。因此如果你看交易費用與交易損失，它們占TPV的比率相較前幾個季度都有明顯下降。

Now I called out the reasoning for the transaction expense decline, and that's certainly more of a transitory nature and sort of a timing impact on that, but transaction losses is one that has the potential to become more permanent. Now 1 quarter does not make a trend. So I don't want to call this out, as what we should expect going forward, but this was truly based upon improved modeling and capabilities that we have in our fraud detection and risk management. And so we're very encouraged about that. And as we begin to -- or we continue to refine those models over time, hopefully that type of decrease in the rate of losses for TPV is something that can become more sustainable for us.

我先前已說明交易費用下降的原因，那更偏向暫時性因素，並帶有一些時點影響；但交易損失則有可能變得更具永久性。當然，單一季度不代表趨勢。所以我不想把它說成是未來應該預期的狀況，但這確實是基於我們在詐欺偵測與風險管理方面更好的模型與能力提升。因此我們對此非常受到鼓舞。而隨著我們開始——或持續——隨時間精進這些模型，希望TPV損失率的這類下降能對我們而言變得更可持續。

Yes. I'd just add on top of that. When I look at, like for instance, our Q2 revenues, we're right in the range that we predicted and we would have been at the high end of the range were it not for some of these FX headwinds. And as everyone on the call knows, FX headwinds can be against you 1 quarter and with you another quarter, and that's why we give a range on that. Even with that, we still grew our revenues by 19% on a normalized basis, EPS was up 27% and we generated more than $1 billion of free cash flow. But most important to me, the operational metrics that we really look at, whether it be net new actives, whether it be engagement, whether it be TPV, were all close to records for us. Like MS TPV, excluding Marketplaces or eBay, was up 30.2%. I think that's -- like in the last 6 quarters is like at a high for that or tied for high in the last 6 quarters.

是的。我再補充一下。以我們第二季營收來看，落在我們預測的區間內；若不是受到一些外匯（FX）逆風影響，我們本來會在區間的高端。而如同所有與會者都知道的，外匯逆風可能某一季對你不利、另一季又轉為有利，這也是我們為什麼提供一個區間。即便如此，我們在常態化（normalized）基礎上營收仍成長19%，EPS成長27%，並產生超過10億美元的自由現金流。但對我而言最重要的是我們真正關注的營運指標，不論是淨新增活躍用戶、不論是互動度、或是不論是TPV，對我們來說都接近歷史紀錄。例如MS TPV（不含Marketplaces或eBay）成長了30.2%。我認為這——在過去6個季度中算是高點，或至少並列過去6個季度的高點。

So when I think about our revenues, think about our operating metrics, what the drivers of those are, they're all really quite strong. Yes, there are delays in some of these key partnerships and these key partnerships will drive a lot of revenue, but those key partnerships will happen. We're well underway. We understand exactly what the critical path is going forward on that and the pricing as well. We have pricing. It's both up and down. But when we put pricing out there, I want to make sure that it's transparent, it's easy to be understood, that we have all of our processes in place to support any pricing changes that we might make and just be sure we execute in a world-class manner. So I think -- not only do I think the margin improvements are sustainable and as John mentioned, potentially there are quite a bit more to be found, but the drivers of our revenue are quite strong and I anticipate those to stay that way.

所以當我思考我們的營收、思考我們的營運指標，以及其背後的驅動因素時，這些其實都相當強勁。是的，在某些關鍵合作夥伴關係上確實有延遲，而這些關鍵合作夥伴將帶來大量營收，但這些合作夥伴關係終究會落地。我們已經進展順利。我們完全清楚接下來推進的關鍵路徑是什麼，也包括定價。我們有定價。它有上有下。但當我們推出定價時，我希望確保它是透明的、容易理解的，而且我們已建立所有流程來支援我們可能進行的任何定價變更，並確保我們以世界級的方式執行。因此我認為——我不僅認為利潤率改善是可持續的，而且如 John 所提到的，可能還有相當多的改善空間；同時，我們營收的驅動因素也相當強勁，我預期這些將會維持如此。

Our next question comes from Darrin Peller with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Darrin Peller。

Look, when considering the medium-term outlook, it obviously looks like, from at least the sort of revenue side, does sound like it's short term in nature from what you're saying. But the drivers, as you just mentioned, Dan, are very strong. In fact, I think they're better than what your medium-term typical guide suggests around -- whether it's TPV or net active growth or even engagement levels. I guess first of all, just -- can you just reiterate if you can still see the same sustainability to that, that you -- those drivers you've been seeing? What gives you the confidence you can see that in the next year or 2? And then I guess as a follow up on the partnerships, I mean it sounds like some of these are pretty material in terms of opportunities. So not only net new active growth and the drivers, is that -- in terms of the revenue flow-through, could that cause a pretty big reacceleration in 2020?

你看，當考量中期展望時，顯然至少從營收面來看，聽起來依你所說更偏向短期性。但如你剛才提到的，Dan，這些驅動因素非常強勁。事實上，我認為它們甚至比你們典型的中期指引所暗示的還要好——不論是 TPV、淨新增活躍用戶成長，甚至是互動程度。我想首先——你能否再重申一下，你是否仍然看到同樣的可持續性，也就是你們一直看到的那些驅動因素？是什麼讓你有信心在未來 1 到 2 年仍能看到這一點？然後我想追問一下合作夥伴關係，聽起來其中一些在機會面上相當重大。所以不只是淨新增活躍用戶成長與這些驅動因素——就營收的傳導效應而言，這是否可能在 2020 年帶來相當大的再加速？

Yes. So I do believe that the drivers of the business are not just sustainable but we've got the potential to do better. I mean we've got continued strong growth in our net new actives, 41 million over the last 12 months, 9 million this quarter, up 17%. The 286 million active we have, that's up 17% year-over-year. And 23 million merchants on the platform, adding almost 1 million merchants a quarter right now. So -- and you're seeing both PayPal and Venmo accelerate versus last year. And I'll talk a little bit about them on a second to -- like your revenue point. But you've got obviously a network effect that's really kicking in right now. If you're a merchant, we have so many consumers that want to use PayPal or Venmo now as a way to pay. You almost have to be a part of the network, and the same thing from a consumer perspective. We've got merchants everywhere that are accepting us. And so that network effect is continuing to kick in.

是的。所以我確實相信，業務的驅動因素不僅是可持續的，而且我們還有潛力做得更好。我的意思是，我們的淨新增活躍用戶持續強勁成長，過去 12 個月增加 4,100 萬，本季增加 900 萬，年增 17%。我們目前有 2.86 億活躍用戶，年增 17%。平台上有 2,300 萬商戶，目前每季新增將近 100 萬商戶。所以——而且你看到 PayPal 與 Venmo 相較去年都在加速。我稍後也會就你提到的營收點談一下它們。但顯然你現在看到網路效應正在真正發揮作用。如果你是商戶，現在有這麼多消費者想用 PayPal 或 Venmo 作為支付方式。你幾乎必須成為這個網路的一部分；從消費者角度也是同樣道理。我們有到處都在接受我們的商戶。因此這種網路效應持續在發酵。

Very importantly though, most people think about net new actives as the top of the funnel, but when you have a base as large as ours, the churn rate is just as important and all the improved customer experiences that we've done from choice to additional Venmo monetization efforts, to P2P flows, to our new revised app, those are all reducing our churns and making a big difference in the number of net new actives. We've got global expansion that's happening. We're at the tip of that iceberg in global expansion for us. Obviously, we're getting more net new actives from Brazil, from India, from Japan, but we're just beginning in those markets. And partnerships like the one that we're going to do with MercadoLibre, ones that we're going to do with Uber are yet to kick in. We're still -- we just rolled out Xoom expansion into 32 new send markets. We've got other international markets that we're planning to enter into. And so I see net new actives as sustainable and maybe even being better than where we are.

但非常重要的是，多數人把淨新增活躍用戶視為漏斗頂端；然而當你擁有像我們這麼大的基礎時，流失率同樣重要。我們在客戶體驗上的各項改善——從更多選擇、到 Venmo 額外的變現努力、到 P2P 流程、到我們全新改版的 App——這些都在降低流失，並對淨新增活躍用戶數帶來很大影響。我們正在進行全球擴張。對我們而言，全球擴張才剛露出冰山一角。顯然，我們從巴西、印度、日本獲得更多淨新增活躍用戶，但我們在這些市場才剛開始。而像我們將與 MercadoLibre 合作、以及將與 Uber 合作的夥伴關係，影響尚未開始顯現。我們仍在——我們剛把 Xoom 擴展到 32 個新的匯款發送市場。我們還規劃進入其他國際市場。因此我認為淨新增活躍用戶是可持續的，甚至可能比我們目前的水準更好。

And engagement, the same thing is happening. It's just improving. I'll give you an example of that. And this is a really -- it's quite a positive thing in numerous ways. The new net actives that are coming in on Venmo are -- have more engagement than previous net new actives, and that new engagement is around the monetizable services because those -- because that's what they're coming into. They're coming into a value proposition that has all of that, so they're aware of it and they're using it more and more. And so you've got increased engagement, increased monetization efforts and increased revenue. I mean on the Venmo side, we're seeing really nice quarter-over-quarter revenue growth. We are well exceeding not just our budget on Venmo but our most recent forecast on Venmo revenues. And I really couldn't be more pleased with the efforts that, that team is doing with incremental monetization efforts still to come later this year.

而互動程度也是同樣的情況。它正在改善。我舉個例子。而這在多個面向都是非常——相當正面的事情。Venmo 新進來的淨活躍用戶——其互動程度高於先前的淨新增活躍用戶，而這種新的互動主要圍繞可變現的服務，因為——因為他們就是衝著這些而來。他們進入的是一個包含所有這些內容的價值主張，因此他們知道、也越來越常使用。因此你會看到互動提升、變現努力提升，以及營收提升。我的意思是，在 Venmo 方面，我們看到相當不錯的季對季營收成長。我們不僅大幅超越 Venmo 的預算，也超越我們最近一次對 Venmo 營收的預測。而且我對該團隊所做的努力感到非常滿意，因為今年稍晚還會有更多增量的變現措施推出。

Yes. Darrin, I would just add a couple of points I think to emphasize some of the items that Dan spoke to, but when you ask like what gives us confidence in our medium-term outlook, I'd put it in 3 categories. The first is that our business is performing very well. If you take our quarterly results, growing revenue 19%, another quarter of 9 million net new actives, expanding operating margin to 200 basis points, the type of cost performance that our core business is performing well. The second, as Dan mentioned, is that one of the best indicators about the future of our business is the new cohorts of customers that we're bringing on, and we are seeing those cohorts be more engaged in the previous cohorts. And the third category, I would put broadly into just the opportunities that we have. So when you look at things like the partnership with Paymentus or Facebook or what we're doing with Venmo, what we're doing from a product development standpoint around reward points and cart recovery, all these opportunities and more that we haven't listed give us a lot of conviction about our ability to continue to deliver on that medium-term guidance.

是的。Darrin，我想我再補充幾點，以強調 Dan 提到的一些事項。當你問到是什麼讓我們對中期展望有信心時，我會把它歸納為三個類別。第一，我們的業務表現非常好。如果看我們的季度結果：營收成長 19%，又一季淨新增活躍用戶 900 萬，營業利潤率擴張 200 個基點，以及成本表現的類型——我們的核心業務運作良好。第二，如 Dan 所提到的，衡量我們業務未來最好的指標之一，是我們帶進來的新客群（cohorts），而我們看到這些客群的互動程度高於先前的客群。第三類，我會更廣泛地歸入我們所擁有的機會。因此當你看像是與 Paymentus 或 Facebook 的合作、我們在 Venmo 上所做的事、以及我們在產品開發上圍繞獎勵點數與購物車挽回（cart recovery）所做的事——這些以及更多我們尚未列出的機會，都讓我們對持續交付該中期指引的能力有很強的信心。

Yes. And to your point, Darrin, when you think about something like Paymentus and what the revenue opportunity is there, it is quite significant because we're entering into a brand-new vertical. And when we're entering into a brand-new vertical, it's a lot of work to get it done but the reward is quite large and commensurate with that work as well.

是的。而且就你提到的，Darrin，當你思考像 Paymentus 這樣的項目以及其營收機會時，它相當可觀，因為我們正在進入一個全新的垂直領域。而當我們進入一個全新的垂直領域時，要把它做成需要大量工作，但回報也相當可觀，並且與這些工作量相匹配。

Our next question comes from Bryan Keane with Deutsche Bank.

我們的下一個問題來自德意志銀行（Deutsche Bank）的 Bryan Keane。

I just want to follow up on the pricing changes that are now delayed. I guess where were the pricing changes delayed and why? And then when does it get implemented now?

我想追問一下目前已延後的定價變更。我想請問定價變更是在哪些地方被延後、原因是什麼？那現在預計何時會實施？

Bryan, I'll start with that. This is John. We made some changes to our user agreement that allowed us the ability to make certain pricing changes. And I would emphasize that I think sometimes, the knee-jerk reaction is to assume that all price changes are up. Sometimes, we can decrease prices to go after more volume. So we haven't been real specific about what those are, but when we implement a price change, we always want to have that associated with a value proposition to the customer. And when we took a step back and we looked at the effort to improve some of those customer experiences around those price changes, it was more complex than what we imagined and we want to be measured as we roll this out.

Bryan，我先回答這題。我是 John。我們對使用者協議做了一些調整，使我們具備進行某些定價變更的能力。我也想強調，我認為有時候大家的直覺反應會以為所有價格調整都是上調。但有時我們也可能為了爭取更大的交易量而降價。因此我們尚未非常具體地說明那些變更是什麼，但當我們實施價格調整時，我們一向希望它能與對客戶的價值主張相連結。而當我們退一步檢視、並評估為了改善這些與價格變更相關的客戶體驗所需投入的工作時，我們發現其複雜度超出原先想像，因此我們希望在推出時能更審慎、循序推進。

We -- I think a theme that you'll continue to hear from us is like we are trying to build a great company over the long term and we're not going to be so rigid and pushing products out to market or otherwise that we do something that is not to the standard that we hold ourselves to. And so generally, that's how we're thinking about some of these pricing changes. We would expect though to go forward with these price changes and perhaps others either at the tailwind of this year or early 2020 and realize the benefit from them.

我們——我想你們會持續聽到我們的一個主軸是：我們正努力打造一家能長期成功的偉大公司，我們不會過於僵化地把產品硬推向市場，或做出任何不符合我們自我要求標準的事情。因此，整體而言，這就是我們看待部分定價變更的方式。不過我們預期仍會推進這些、以及可能其他的價格變更，時間點可能在今年年底的順風期，或是 2020 年初，並從中實現其效益。

Yes. I'd just add on to John's comments which I think were right on. Look, pricing is like an ongoing journey for us. We're always assessing better, even more transparent ways to serve our customers. We are always looking at the market dynamics out there, evolving practices of our competitors. And then we look at the value we provide and we try to price appropriately based on those factors. And as John said, we're absolutely determined to be sure that anything we put out into the market that the experience is a great one. So understand, well, it's transparent. We've got all the support necessary for it, and we'll make sure that happens. But as John said, we do anticipate all of these go into effect over the next several quarters.

是的。我只想補充 John 的評論，我認為他說得非常到位。你看，定價對我們而言是一段持續進行的旅程。我們一直在評估以更好、也更透明的方式來服務客戶。我們也持續關注市場動態，以及競爭對手不斷演進的做法。接著我們會檢視我們所提供的價值，並基於這些因素嘗試做出適當定價。而如同 John 所說，我們絕對堅持：任何推出到市場上的東西，都必須帶來很棒的體驗。所以要確保大家能理解、而且是透明的。我們也會具備所有必要的支援，並確保這些都能到位。但如 John 所說，我們確實預期這些都會在接下來幾個季度內生效。

And our next question will come from David Togut with Evercore ISI.

我們的下一個問題將來自 Evercore ISI 的 David Togut。

You highlighted that Venmo was exceeding your revenue growth forecast. Can you give us some color on where you stand with the biggest drivers in terms of monetizable experiences, whether it be instant withdrawal, Venmo debit card or Pay with Venmo with merchants?

你們提到 Venmo 的表現超出你們的營收成長預測。能否請你們多談一些目前最大的驅動因素——就可變現的使用體驗而言——你們的進展如何？例如即時提領、Venmo 借記卡，或是商戶端的「使用 Venmo 付款（Pay with Venmo）」？

Sure, David. I'll take that. There's -- if you look at the composition of the various ways that we can monetize Venmo, it hasn't changed that much from previous quarters to date. Still, instant withdrawal is the largest contributor of monetization for us and then the other half roughly is split between Venmo card and Pay with Venmo. We do expect those to change over time, as we've said previously, to where ultimately Pay with Venmo will be the largest contributor of how we monetize Venmo.

當然可以，David。我來回答。如果你看我們能將 Venmo 變現的各種方式之組成，到目前為止，與前幾季相比並沒有太大變化。目前即時提領仍是我們變現的最大貢獻來源，而另外大約一半則由 Venmo 卡與 Pay with Venmo 分攤。我們確實預期這些占比會隨時間改變；如我們先前所說，最終 Pay with Venmo 會成為我們將 Venmo 變現的最大貢獻來源。

So in terms of the progress there, I would say that when we look at all of the initiatives that we've implemented this year or have made progress on this year, this is one probably that stands out as performing better than what we initially expected going into the year. I don't want you to misread my comments. I don't think it's appreciably different from what we talked about but certainly better than what our initial expectations are. So we're still very pleased about the progress that we're making there, and it's well on track with our expectations.

至於那方面的進展，我會說，當我們回顧今年已推行或取得進展的所有計畫時，這可能是其中一項表現優於我們年初預期的。我不希望你們誤讀我的意思。我不認為它與我們先前談到的內容有顯著差異，但確實比我們最初的預期更好。因此我們對目前的進展仍非常滿意，而且也很符合我們的預期進度。

Our next question comes from Heath Terry with Goldman Sachs.

我們的下一個問題來自高盛（Goldman Sachs）的 Heath Terry。

As we think about the string of deals that you announced back in the spring with Uber, MercadoLibre, Facebook, even iZettle's clearance, is there a benefit to the '19 revenue expectations or guidance from those deals? Or maybe just more broadly, when and to what degree do you expect to begin to see an impact from that string of deals?

當我們回顧你們在春季宣布的一連串合作案——包括 Uber、MercadoLibre、Facebook，甚至 iZettle 的清算——這些合作是否會對 2019 年的營收預期或財測指引帶來好處？或者更廣泛地說，你們預期何時、以及在多大程度上，會開始看到這一連串合作案帶來的影響？

Yes. So I'll start off and then maybe John will talk. I think we'll talk a little bit more about next year on our next call. But overall, those are 2 relationships that we would do time and time again. MercadoLibre is going to significantly enhance our international scale and scope. We see a tremendous amount of opportunity as we integrate our 2 networks together. If you think about it just in big generic terms, we'll have some 500 million people on our combined network together. MercadoPago customers will now be able to access PayPal merchants around the world. PayPal consumers will be able to buy from MercadoLibre marketplaces merchants. And we're very excited about the potential of linking wallet to wallet on international remittances as well.

是的。我先開頭，然後也許 John 會補充。我想我們會在下一次電話會議中多談一些明年的情況。但整體而言，這兩段合作關係是我們會一次又一次願意去做的。MercadoLibre 將大幅提升我們的國際規模與覆蓋範圍。當我們把兩個網路整合在一起時，我們看到非常巨大的機會。如果用很概括的方式來看，我們合併後的網路將涵蓋約 5 億人。MercadoPago 的客戶將能夠接觸全球的 PayPal 商戶。PayPal 的消費者也將能向 MercadoLibre 市集的商戶購買商品。此外，我們也對在國際匯款方面實現錢包對錢包的連結潛力感到非常興奮。

And so we see a tremendous amount of learning we'll get from each other and a tremendous amount of incremental opportunity as a result of that. Uber, we already had a very strong relationship but this not only solidifies that relationship but we're in deep conversations with them on how to expand the extent of our partnership and help them drive the growth and experiences that they want for their customers and our mutual subscribers. And so that is really quite a bit of an everyday use case for us. We think that will help on both engagement metrics for us both on the Venmo and the PayPal site.

因此，我們認為彼此之間會有大量的學習，也會因此帶來大量的增量機會。至於 Uber，我們原本就有非常強的合作關係，而這不僅鞏固了該關係，我們也正與他們深入討論如何擴大合作範圍，協助他們為其客戶以及我們共同的用戶推動他們想要的成長與體驗。因此，這對我們而言確實是一個相當日常的使用情境。我們認為這將有助於我們在 Venmo 與 PayPal 兩端的互動指標（engagement metrics）。

These other partnerships that we have are certainly going to add to our volumes and our capabilities. We have a lot of high hopes for what bill pay can do. It's obviously a huge vertical, that numerous people talk to us about it. Our customers are clamoring for it. We'll do full stack processing around that as well. So it will drive quite a bit of incremental volume and revenues for us. As John has mentioned numerous times, partnerships like Facebook take time to develop and move forward. Facebook, like us, wants to assure that they have the right experience, but when you look at the volumes that can be driven there, we'll be measured and how we think about it as we look at next year but we're excited about that potential.

我們其他的合作夥伴關係，當然也會提升我們的交易量與能力。我們對帳單支付（bill pay）能帶來的效益抱持很高期待。這顯然是一個非常大的垂直領域，很多人都會就此與我們洽談。我們的客戶也強烈要求提供這項功能。我們也會在這方面提供全套處理（full stack processing）。因此它將為我們帶來相當可觀的增量交易量與營收。如 John 多次提到的，像 Facebook 這樣的合作需要時間來發展並推進。Facebook 和我們一樣，希望確保提供正確的體驗；但當你看那裡可能帶動的交易量時，我們在展望明年時會以審慎的方式來評估，不過我們對其潛力感到興奮。

Heath, let me add just one thing as it relates to capital allocation, some of the acquisitions that we've already made. And so I think sometimes, what is overlooked is the opportunity for a compounding effect with multiple of these acquisitions. And so I'll give you 2 examples.

Heath，我再補充一點，這與資本配置以及我們已經完成的一些收購有關。我想有時候容易被忽略的是：多項收購之間可能帶來複利效應的機會。我舉兩個例子。

The first are the acquisitions of Hyperwallet and Simility, which provide capabilities like payouts and risk-as-a-service. That enables us to provide a more comprehensive suite of services and a new product rollout like PayPal Commerce Platform, very important to that.

首先是收購 Hyperwallet 和 Simility，這些收購提供了例如付款發放（payouts）以及風險即服務（risk-as-a-service）等能力。這使我們能夠提供更全面的服務組合，以及像 PayPal Commerce Platform 這樣的新產品推出，這對此非常重要。

Second example would be something like iZettle. So I think it's generally acknowledged that Latin America is an area that we are less strong. Certainly that was -- that influenced our strategic investment in MELI, but iZettle has a presence in Latin America. And so we can build upon these complementary capabilities from either the partnerships or acquisitions that we've taken to strengthen our presence in some of these geographies where we are less strong today.

第二個例子會是像 iZettle 這樣的。所以我想一般都認為拉丁美洲是我們相對較弱的區域。當然，這也影響了我們對 MELI 的策略性投資，但 iZettle 在拉丁美洲有布局。因此，我們可以在這些互補能力之上持續建構——不論是透過我們建立的合作夥伴關係或已完成的收購——以強化我們在某些目前相對較弱的地理市場中的存在。

And our next question comes from Lisa Ellis with MoffettNathanson.

接下來的問題來自 MoffettNathanson 的 Lisa Ellis。

Maybe bridging from that last question actually, can you give an update on your M&A plans given it has now been over a year since Simility and Hyperwallet? Should we be thinking that additional acquisitions are imminent? Or is this -- is that part of your strategy sort of back burner given the number of -- and the scope of these partnerships that you're working on? Also I guess I'll tuck in there, given the 3 mega mergers elsewhere in the ecosystem, are you still exclusively focused on tuck-ins? Or are you sort of rethinking the possibility of potentially larger-scale deals?

也許承接上一個問題，鑑於距離 Simility 和 Hyperwallet 已經超過一年了，能否更新一下你們的併購（M&A）計畫？我們是否應該認為近期會有更多收購即將發生？或者，考量到你們正在推進的合作夥伴關係數量與範圍，這是否在策略上暫時被放到次要位置？另外我也想順帶問一下，鑑於生態系中其他地方出現了 3 起大型合併案，你們是否仍然只專注於小型補強式收購（tuck-ins）？還是你們正在重新思考進行可能更大規模交易的可能性？

Any other questions you want to ask so we can have it now? Those are all good questions. So look, I'd just say that from an M&A perspective, I think in general, we're pretty well positioned. We've got a ton of internal innovation rate that is going on. Our tool sets for our engineers, the productivity improvements are dramatic there. And so we're seeing more and more releases, more and more experiences that we can put out. We obviously have a lot of strong partnerships and a lot of capabilities that we can digest from those partnerships as well.

還有其他你想問的問題嗎？我們可以現在一起問。這些都是很好的問題。所以你看，從併購的角度來說，我想整體而言，我們的定位相當不錯。我們內部正在進行大量的創新。我們給工程師的工具組合，在生產力提升方面非常顯著。因此我們看到越來越多的發佈、越來越多我們可以推出的體驗。我們顯然也有很多強而有力的合作夥伴關係，以及我們同樣能從這些合作中消化吸收的許多能力。

John mentioned it but obviously, our balance sheet is only getting stronger with $10.7 billion of cash like assets on that. We generated over $1 billion of free cash flow. We still are consistent and that we're looking to do anywhere between $1 billion and $3 billion of a tuck-in type of acquisitions that help us either from a time-to-market perspective or geographic expansion or things that get scale and scope through things like partnerships.

John 提到了，但顯然我們的資產負債表只會因為擁有 107 億美元的類現金資產而變得更強。我們產生了超過 10 億美元的自由現金流。我們仍然維持一致的做法：我們希望進行約 10 億到 30 億美元的補強式收購（tuck-in），以協助我們在縮短上市時間（time-to-market）、地理擴張，或透過合作夥伴關係等方式取得規模與範疇（scale and scope）。

So we look at hundreds of potential acquisitions every single quarter. I think you can expect us to be acquisitive going forward. That will be a part of who we are on an ongoing basis. I don't -- as I think about this consolidation in the merchant-acquiring space, we're partners with all of those combined entities. I think there is a rationale why they needed to do that as online and off-line started to blur as some needed feet on the street, others needed online-acquiring capabilities. I would say those mergers in and of themselves don't make me feel like there's a need to do a larger acquisition, but we've never ruled out larger acquisitions. They just need a clear, a very high strategic fit and hurdle for us, but we look at the potential for acquisitions from smaller to larger and we'll continue to do so.

所以我們每一季都會評估數百個潛在收購標的。我想你可以預期我們未來會持續進行收購。這將會是我們長期持續的一部分。至於我如何看待商戶收單（merchant-acquiring）領域的整併，我們與所有這些合併後的實體都是合作夥伴。我認為他們需要這麼做是有其理由的：隨著線上與線下開始模糊，有些需要地面團隊（feet on the street），另一些則需要線上收單能力。我會說，這些合併本身並不會讓我覺得我們需要做一筆更大型的收購，但我們也從未排除更大型收購的可能性。只是它們必須對我們而言具備明確、非常高的策略契合度與門檻；不過我們會持續評估從小到大的各種收購可能性，並且會繼續這麼做。

And we have time for one final question from George Mihalos with Cowen.

我們還有時間進行最後一個問題，來自 Cowen 的 George Mihalos。

Maybe just building on that capital allocation theme. I think, John, you guys didn't buy back any stock this quarter. How are you thinking about the buyback going forward relative to some of the other capital allocation priorities, M&A and the like?

也許延續資本配置（capital allocation）這個主題。我想，John，你們這一季沒有回購任何股票。相較於其他資本配置優先事項（例如併購等），你們如何看待未來的回購？

Sure, George. It's good to speak with you. So if you go back to May of last year when we laid out our capital allocation priorities, they still remain the same. And that's over that medium-term time frame of the next, call it, 3 to 5 years. We expect that approximately 40% to 50% of our free cash flow will be used to return to shareholders and that we will spend, on average, about $1 billion to $3 billion a year with acquisitions and strategic investments.

當然，George。很高興和你交流。如果你回到去年 5 月我們提出資本配置優先事項的時候，那些優先事項至今仍然不變。而那是在中期的時間範圍內，也就是接下來大約 3 到 5 年。我們預期大約 40% 到 50% 的自由現金流將用於回饋股東，而我們每年平均會在收購與策略性投資上投入約 10 億到 30 億美元。

Now as I'm sure you appreciate that, we're going to be opportunistic from 1 quarter to the next. And sometimes, there are competing priorities in a quarter. And also at times, it's worth noting that because of things we may be working on, we may be subject to blackout dates as well in terms of when we can go buy back stock. So I would discourage you from reading too much into the fact that we didn't buy back stock. We still intend to buy back the amount that we've talked about. But again, we -- I think we have the sort of the fortunate position to be opportunistic given the opportunity set that's out there in the industry, and so we'll kind of bounce around from 1 quarter to the next with how we allocate capital, but over that medium term, we'll stick to those tenets that we provided.

如你所理解的，我們會在每一季之間採取機會主義（opportunistic）的做法。有時候，一個季度內會出現彼此競爭的優先事項。另外也值得注意的是，因為我們可能正在推進某些事項，在何時能回購股票方面也可能會受到禁售期（blackout dates）的限制。因此我會建議你不要過度解讀我們這一季沒有回購股票這件事。我們仍然打算回購我們先前談到的金額。但再次強調——我想我們處在一個相對有利的位置，可以根據產業中現有的機會集合採取機會主義的做法；因此我們在資本配置上可能會在不同季度之間有所調整，但在中期而言，我們會遵循我們所提出的那些原則。

Thanks very much, George, for that question and thank you, everybody, for joining us today. We really appreciate your time and we look forward to speaking with all of you soon. Thanks.

非常感謝你，George，提出這個問題，也謝謝各位今天加入我們。我們非常感謝各位的時間，並期待很快再與各位交流。謝謝。

Ladies and gentlemen, this concludes today's question-and-answer session. Thank you for participating in today's conference call. This concludes the program. You may now all disconnect. And everyone, have a great afternoon.

各位女士、先生，今天的問答環節到此結束。感謝各位參與今天的電話會議。本次會議到此結束。各位現在可以斷線。也祝各位下午愉快。