PayPal continue to excel
PayPal have grown exponentially as ecommerce has become more widely used and accepted by people of all ages, backgrounds and locations. And, as they have continually adapted and kept themselves at the forefront of the online payments market, it is no surprise to see them perform well, as is shown in their Q4 results.
The California-based digital payments firm have released their financial reports for the fourth quarter, and the full fiscal year as a whole, both ending on 31 December 2016.
For the fourth quarter, revenue came in at $2.981 billion, which was up 17% year over year, or 19% on a constant currency basis. Also, GAAP earnings per diluted share arrived at $0.32, which was up a solid 7%. This is a strong end to the fiscal year, with the company, as expected, benefitting from online Christmas spending.
Q4 also provided PayPal with some real operating highlights, as they were able to process 1.8 billion payment transactions, which was up 23% from the previous year’s period. Also, they were able to grow their active customer base by 5.4 million.
PayPal share price over the last two years
As of 30 January 2017: 40.27
Source: Yahoo Finance
For the full fiscal year, PayPal were able to post revenue growth of 17%, as it reached $10.842 billion, up 21% on a constant currency basis. Over the year, the company were also able to increase their active customer accounts total to 197 million, which was up 10% on the previous year.
Dan Schulman, president and CEO of PayPal, said: "I'm pleased to report that PayPal ended 2016 with another strong quarter of financial results. We extended our industry leadership by generating 18 million active customer accounts, with greater engagement than ever before. We innovated across our merchant and consumer value propositions and extended our lead in mobile payments.
"In the past year, we transformed our market opportunity with a series of strategic partnerships with networks, financial institutions, technology companies, and mobile carriers. We accomplished all of this by putting our customers first, in everything we do. At the end of a landmark year for PayPal, we feel well positioned to deliver sustainable and profitable growth in 2017 and beyond."
Dominion holds PayPal in its Global Trends Managed Fund.
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