Fintech company PayPal Holdings PYPL reported third-quarter financial results after the market close Thursday. Here are the key highlights for investors.
What Happened: PayPal reported third-quarter revenue of $6.85 billion, up 11% year-over-year. The total revenue beat a Street estimate of $6.82 billion, according to data from Benzinga Pro.
The company reported earnings per share of $1.08 in the third quarter, beating a Street estimate of 96 cents per share.
Total payment volume was $337 billion in the third quarter, up 9% year-over-year.
Apple Inc AAPL and Amazon.com Inc AMZN were highlighted by PayPal in the quarterly report.
The company said it is working with Apple to enhance offerings for PayPal and Venmo for merchants and consumers. PayPal will leverage Apple’s Tap to Pay on iPhone and offer additional payment options.
Venmo was recently added as a payment option for select Amazon customers. The payment option is expected to be available for all U.S. Amazon users in time for the holiday season.
“We continue to execute on our strategy to deliver long-term, profitable growth,” PayPal CFO Gabrielle Rabinovitch said.
PayPal ended the third quarter with 432 million total active accounts, up 4% year-over-year.
What’s Next: PayPal announced it is raising its full year 2022 guidance after the third quarter.
The company now expects full-year revenue to grow 8.5% year-over-year. Full year adjusted earnings per share are expected in a range of $4.07 to $4.09. The company sees full year total payment volume to grow 8.5% year-over-year.
For the fourth quarter, PayPal is guiding for earnings per share in a range of $1.18 to $1.20. The company sees fourth-quarter revenue hitting $7.375 billion, up 7% year-over-year. Analysts are targeting $7.74 billion in revenue and earnings per share of $1.18, according to Benzinga Pro.
PYPL Price Action: PayPal shares are down 6% to $71.40 in after-hours trading Thursday.
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