PayPal beats the street in third quarter
Online payment provider PayPal has had a great year so far, and its third quarter results, released at the end of last week, have pushed it even further. The company’s share price was up by 79.28%, year to date, by end of play Friday, and this trajectory looks set to continue. At least, a 22% jump in revenues from the same quarter in the previous year makes it seem that way!
PayPal’s share price has appreciated by more than 79% so far this year
SOURCE: Yahoo Finance
Reuters, in writing up the numbers, gives a fitting summary of PayPal’s transformation over the last few years: “Since separating from online marketplace eBay Inc. in 2015, PayPal has reshaped itself from a company that mostly processed transactions for its parent to a payments giant that handles money transfers between other companies and customers, as well as friends, roommates, overseas relatives and small businesses.”
PayPal didn’t just make a lot more money over the three months – its underlying results were excellent. The company said it now has 218 million active customer accounts, after adding 8.2 million in the quarter. That’s a rise in new users of 88%, since the year-ago quarter. These users are particularly active too: the company processed 1.9 billion payment transactions in the third quarter, up 26%, year on year. Each account is averaging 32.8 payment transactions a year, and in the third quarter, PayPal saw a total payment volume of $114 billion go through its system (up 30% from the previous year).
The company’s CEO, Dan Schulman, made the following comment on the results:
“PayPal delivered one of its strongest quarters since becoming an independent company. Putting our customers first in everything we do, enhancing our suite of products and services, and partnering with some of the world’s most popular brands are delivering tangible results. In addition to our solid financial performance, we also reported record customer growth with the addition of 8.2 million net new actives. As the world rapidly accelerates to digital payments, we have a tremendous opportunity in front of us.”
Dominion holds PayPal in its Global Trends Ecommerce Fund.
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