PayPal beats on earnings, revenue and volume for the third quarter
We smashed it! <3
PayPal Holdings Inc. shares were up sharply in after-hours trading Wednesday after the company beat estimates across the board with its third-quarter numbers. Long story short:
The company reported net income of $462 million, or 39 cents a share, up from $436 million, or 36 cents a share, in the year-prior quarter.
After adjusting for stock-based compensation and other expenses, earnings rose to 61 cents a share from 58 cents a year earlier.
PayPal’s revenue for the third quarter climbed to $4.38 billion from $3.68 billion in the year-ago quarter, whereas analysts were expecting $4.35 billion.
Total payment volume (TPV) increased to $179 billion from $143 billion and came in ahead of estimates for $177.4 billion.
Venmo processed $27 billion in volume. Total peer-to-peer volume for the entire family of PayPal products was $51 billion and represented 28% of TPV.
This was the first time that the company processed more than 1 billion transactions per month over a quarter. The company disclosed that it added 9.8 million net new active accounts in the third quarter and that eBay volume represented 8% of total TPV in the period.
PayPal also said it was the first foreign company to get a domestic payments license in China.
The company narrowed its full-year revenue outlook to $17.7 billion to $17.76 billion from a prior range of $17.6 billion to $17.8 billion. The midpoint of the new forecast is higher than it was prior.
PayPal shares were up more than 7% in the aftermarket. They’ve gained 15% so far this year, as the S&P 500 SPX, +0.28% has risen 20%.