PayPal reported strong third-quarter financial results on Monday local time, caused by an influx of new customers and record numbers of payment transactions. The company said it added 15.2 million net active accounts in the third quarter, bringing the total number of active accounts to 361 million. Meanwhile, PayPal said total payments for the quarter reached a record $247 billion.
The company said it processed 4 billion payments. The company’s total payments now amount to about $1 trillion.
PayPal reported net income of $1.02 billion, or 86 cents per share. Non-GAAP (non-GAAP) earnings per share were $1.07, with revenue of $5.46 billion, up 25% year-on-year. Wall Street gave $0.94 per share and $5.43 billion, respectively.
PayPal said its social payments platform, Venmo, also posted its best quarterly results ever — handling more than $44 billion in TPV, up 61 percent from a year earlier.
PayPal said it expects to add a net 70 million active accounts by the end of the fiscal year. The company also said it added 1.5 million merchant accounts in the quarter, more than double the number before the COVID outbreak.
Analysts expect PayPal to report fourth-quarter revenue of $6.11 billion, or $1.06 per share. PayPal expects total payments to grow by about 30 per cent, revenue by 20-25 per cent and adjusted earnings per share by 17-18 per cent.
“PayPal’s third quarter was one of the strongest in our history,” said Dan Schulman, PayPal’s CEO. During this pandemic, our growth has strengthened the important role we play in our customers’ daily lives. Looking ahead, we will invest in the most compelling and expensive digital wallet, which will include all forms of digital currency and payments and operate seamlessly in the real and online worlds. “