“In addition, we expect non-GAAP EPS in Q4 to be approximately $1.36, representing 10% growth relative to 2022.”

In context

“gfully higher than our acquisition price. We're thrilled that following a rigorous process over many months, our team was able to find Happy Returns the right long-term home with UPS. This sale, which is expected to close in the current quarter, will enable us to put even more focus on our core business and priorities. I would now like to discuss our outlook for the remainder of the year. Relative to the plan laid out on our earnings call three months ago, branded checkout growth has been lower than expected. As I mentioned earlier, after an acceleration in the summer, we've seen a return to growth that is more in line with trends throughout the first half of 2023. We now expect fourth quarter revenue to grow between 7% and 8% on a currency neutral basis or approximately 6% to 7% at spot. In addition, we expect non-GAAP EPS in Q4 to be approximately $1.36, representing 10% growth relative to 2022. Our guidance contemplates a sequential improvement in transaction margin dollar performance. That said, on a year-over-year basis, we now expect transaction margin dollars to decline. In addition, we expect our non-GAAP operating margin to contract from the fourth quarter last year. For 2023, we now expect revenue to grow approximately 8.5% on a currency-neutral basis and approximately 7.5% at spot. The ongoing strength of Braintree volumes in conjunction with lower-than-expected branded checkout trends are resulting in incremental pressure on our non-GAAP operating margin. Relative to the 100 basis points of expansion previously expected, we now expect approximately 75 basis points of margin expansion. We're slightly increasing our expectations for full year 2023 non-GAAP EPS, which we n”