PayPal sees record earnings, volume amid sustained e-commerce surge


This report has been updated to correct the data on transactions per active account and total transactions.

PayPal Holdings Inc. saw record volume flow through its platform in the first quarter as the e-commerce wave continued despite the gradual reopening of the personal economy.

Shares of PayPal PYPL, -1.10%, rose 5% after close of trading on Wednesday after the company beat expectations on its latest results and raised its full year outlook.

The company posted net income of $ 1.1 billion, or 92 cents per share, for the first quarter compared to $ 84 million, or 7 cents per share, for the year-ago quarter. After setting for Stock-based compensation, gains on strategic investments and other items, PayPal PYPL, -1.10%, earned $ 1.22 per share, down from 66 cents per share the year before and before the FactSet consensus of $ 1.01 per share demanded. Adjusted profit is a new quarterly record for PayPal.

PayPal's revenue for the quarter was $ 6.03 billion, compared with $ 4.62 billion a year earlier. Analysts polled by FactSet had forecast $ 5.91 billion.

"The really interesting thing is that not only have we seen the strongest quarter in our history, but that we continue to see higher digital spending in the future," said CEO Dan Schulman. "And we now believe that the change in consumer digital behavior will remain essentially unchanged in a post-COVID world."

The company had a record $ 285 billion in total payments, or the value of activity taking place on its platform. Analysts surveyed by FactSet modeled a TPV of $ 264.7 billion. With its first quarter performance, PayPal's TPV exceeded $ 1 trillion for the first time in twelve months.

The company added a total of 14.5 million new net active accounts. PayPal recorded 4.4 billion transactions and 42.2 transactions per active account for the quarter after 12 months. The number of daily active accounts for the core PayPal product increased 33%.

Schulman said newer services help increase engagement. About half of the customers who tried PayPal's "Buy Now, Pay Later" service used it again within three months, with that number increasing to 70% within six months.

The use of PayPal's cryptocurrency features that allow users to buy, sell, and hold digital assets like Bitcoin BTCUSD (+ 0.15%) and Ethereum ETHUSD (-0.21%) is growing "by leaps and bounds," added Schulman, and one newer initiative that enables users to make purchases with their crypto holdings show “good traction”.

For the second quarter, PayPal expects revenue of $ 6.25 billion, up 19% year over year, and adjusted earnings per share of $ 1.12 per share, up 5%. Analysts tracked by FactSet expected revenue of $ 6.17 billion and adjusted earnings per share of $ 1.10.

PayPal also raised its guidance for the full year. The company now expects revenue of $ 25.75 billion, an increase of around 20% year over year, while the previous outlook was 19% growth. PayPal forecasts adjusted earnings per share of $ 4.70, up around 21% year over year compared to the previous outlook, which sees growth of around 17%.

The payment giant expects 52 to 55 million new active net accounts for the full year, compared to its previous forecast of around 50 million.


read more

https://businessservicesnews.ca/paypal-sees-record-earnings-volume-amid-sustained-e-commerce-surge/

Comments

Post a Comment

Popular posts from this blog

Show Me a Good Loser, and I'll Show You a Good Trader

Hall of Fame soccer coach Vince Lombardi once said, "Show me a good loser and I'll show you a loser." It's an understandable feeling in sport where the effort never to fail, never to lose and never to stop is the key to success. There is no benefit in giving up and admitting that you will lose in a sport like soccer. In other endeavors, it is extremely important to admit that you are in a bad position and you are unlikely to get your way. For example, professional poker players fold a significant number of their hands. It is a smart strategy to take a small loss straight away instead of pressing further when the cards are not in your favor. You may end up with some luck if you stay in, but it's not the wise bet. Better to protect valuable capital and wait for a better opportunity. Poker players who fold are not ashamed to fold. It is an essential strategy if you are going to win. It's only part of the process of professional gambling and it helps imp...
Read more

Trading Penny Stocks This Week? 3 For Your April 2021 Watch List

Image
3 penny stocks to see this week Are you looking for penny stocks to buy this week? If you answered yes, you are not alone. Every weekend we receive thousands of requests for new information about the markets and what to see. Whether you are trading penny stocks or looking for investment opportunities, the starting point is usually the same: creating a watchlist. How do you compile a penny stocks watchlist? It may seem relatively self-explanatory. To put together your list of penny stocks to watch, you need to find some letters and put them on a piece of paper or a simple word file, right? Of course, this is the process, but how do you find the best penny stocks to add to the list? In my experience, the weekends are the best because you don't struggle with active market trends. You also have a lot more time to research. This process involves watching the news and anticipating if there are any market trends that might play a role. In the coming week, the biggest story is likel...
Read more

Singapore aims to curb 'greenwashing' via stress tests, technology: MAS, Banking News & Top Stories

SINGAPORE (BLOOMBERG) - Singapore's financial regulator is turning to regulation and technology to combat so-called "greenwashing," which it believes is the weakest link in expanding sustainable finance. Banks in Singapore will have to undergo stress tests from next year while also making regulatory disclosures to ensure they are managing risks related to climate change and other environmental issues, Ravi Menon, executive director of the Monetary Authority of Singapore, said in an interview. Data validation with technologies that can prove the origin of environmentally friendly products is also needed, he added. Greenwashing is the making of false or misleading claims about the environmental benefits of a product, service, or technology. Mr Menon said the potential for greenwashing is increasing as more funds are allocated to sustainability projects. Stocks and funds that ranked highly on environmental, social, and governance metrics have attracted trillions of dol...
Read more