PayPal’s (PYPL) adjusted earnings per share of $1.11 for the third quarter came in ahead of consensus estimates of $1.07, according to FactSet. But the company also posted revenue of $6.18 billion in the third quarter, which was short of estimates of $6.23 billion.
- The company posted total payment volume of $310 billion in the third quarter, up 24% from the year-ago period. It added 13.3 million net new active accounts in Q3, versus 11.4 million in Q2.
- PayPal’s transaction revenue rose to $5.61 billion during the third quarter, up 10% from the year-ago period, but down 3% from Q2.
- Part of PayPal’s transaction revenue comes from the company’s crypto buy, sell and hold product, but the company excludes crypto payments from total payment volume.
- The company has reported in the past that customers who purchased crypto through the platform have been logging into PayPal twice as often as they were before they could buy crypto.
- PayPal said it expects fourth quarter net revenue to be in the range of $6.85 billion to $6.95 billion, which was below consensus estimates of $7.24 billion.
- It also expects total payment volume growth of about 33% to 34% for 2021, as well as the addition of roughly 55 million net new accounts, including three million active accounts from the acquisition of Paidy.
- Shares of PayPal were roughly flat at $229.57 in after-hours trading on Monday.
