PayPal warns coronavirus will have a negative impact on Q1 revenue

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A sign is posted outside of the PayPal headquarters in San Jose, California.

Justin Sullivan | Getty Images

PayPal on Thursday said the coronavirus outbreak could have a negative impact on its revenue expectations, and warned that revenue for the first quarter of this year would be toward the lower end of the guidance it gave when it reported earnings in January.

The company said it now expects Q1 revenue to hit the lower end of its range of $4.78 billion to $4.84 billion. PayPal left its first quarter GAAP and non-GAAP EPS guidance the same.

“We currently estimate the negative impact from COVID-19 to be an approximate one percentage point reduction, on both a spot and foreign currency-neutral basis, to PayPal’s year-over-year revenue growth for the first quarter, as compared to the revenue guidance provided on January 29, 2020,” the company said in a press release.

PayPal said that international e-commerce activity has been affected by the flu-like virus.

This comes after Microsoft on Wednesday lowered its guidance due to coronavirus concerns. Apple also reported last week it did not expect to reach its own quarterly revenue guidance due to the fast-spreading virus.

This story is developing.

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