Pendum Holdings Inc. promoted e-commerce adoption during the epidemic, producing strong-to-expected revenue and user growth in Monday’s earnings report.
The year-ago quarter posted net income of $ 1.02 billion, or 86 cents per share, at $ 462 million, or 39 cents per share. Adjusted earnings per share came in at $ 1.07, up from 76 cents a year earlier from the FactSet consensus, which was touted for 94 cents.
PayPal’s revenue for the quarter climbed from $ 4.38 billion to $ 5.46 billion, while analysts modeled $ 5.42 billion. The payment-processing giant added 15.2 million net new active accounts in the third quarter, including 1.5 million merchants. The overall net-newly-active total was Pepple’s second-best quarterly result, behind only the last quarter.
“Clearly the world is moving rapidly towards a digital-first economy,” chief executive Dan Shulman told Marketwatch. He said the company’s revenue growth rate was the highest for the quarter.
The shares lost nearly 6% in Monday trading shortly after the results were released. PayPal stock has gained 73.6% so far this year as the S&P 500 Index SPX.
1.2% is exceeded.
The company paid $ 247 billion in total payment volume, or the value of payments moving through its platform. Analysts were expecting $ 232.7 billion. The total payment volume for the Venmo platform was $ 44 billion and marked the service’s best quarter in terms of volume.
According to a company spokesperson, PayPal is witnessing a boom in volumes after the quarter ends, as the company set a new one-day record in a single day during October.
The earnings report will come shortly after PayPal’s announcement and through its platform, users will be allowed to shop, sell and shop with cryptocurrencies.
“As we see in the landscape, there are digital currencies, like cryptocurrencies and central bank new, emerging currencies like digital currencies”, Shulman told Marketwatch on Monday. “All of them are clearly complemented by digital wallets and we feel that our working hands with regulators can really enter a new era around all forms of digital currencies.”
Shulman said PayPal plans to “dramatically expand functionality” inside the PayPal and Venmo apps next year to “encompass a wide range of financial services and tools.”
Read: PayPal launches cryptocurrencies on stage
PayPal estimated its volume and income for the fiscal year. The company now expects the amount of total payments to be in the 30% growth range from the high-20% growth threshold. On the bottom line, PayPal projected adjusted earnings for the year to 2020, with growth per share of 27% to 28%, up from earlier estimates of about 25% growth.
The company expects 21% to 22% revenue growth on a currency-neutral basis. Three months ago, it expected investors to grow from 20% to 22%.
For the fourth quarter, the PayPal model has less than 30% growth in total payment volume and 20% to 25% revenue growth. The company also forecasts a 17% to 18% increase in adjusted earnings per share.