Global technology platform and payments leader PayPal Holdings, Inc.
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NASDAQ:PYPL) reported third quarter of fiscal 2015 (3QFY15) results, right after the closing bell today; this marked its first earnings report as a standalone company, after it spun off from eBay Inc. For the quarter, PayPal gained market share, expanded its customer base, deepened engagement with merchants and consumers and delivered on its financial commitments.
The company beat estimates, coming in at adjusted earnings of 31 cents per share and $2.26 billion in revenue.
Shares of Paypal Holdings (NASDAQ:PYPL) traded up 1.61% during mid-day trading on Wednesday, hitting $36.52.
In a prepared statement, PayPal president and CEO Dan Schulman said the company is entirely focused on accelerating its lead in the digital payments space. He said the rising use of mobile technology in financial transactions will help the company, as will the accelerating process of “money becoming digital”.
“These two massive trends play directly to our strengths and we are leveraging this transformation to extend and accelerate our lead”, Schulman said.
In the quarter, consumers across the world, and merchants, large and small signed up for PayPal in record numbers. PayPal processed 345 mil mobile transactions, up 38%.
New active accounts, a metric that was previously shared when the company was still under eBay, is now at 173 million total active accounts, compared to 157 million active accounts for the year-ago quarter.
PayPal’s total payment volume (TPV) rose 27 percent to $70 billion. In contrast, EBay last week reported quarterly profit and sales that topped analysts’ estimates and raised its outlook, sending shares up the most in 10 years. Nomura restated a buy rating and set a $46.00 price target on shares of Paypal Holdings in a research note on Tuesday.
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PayPal’s take rate, a measure of how much money it keeps from each payment made on its platform, fell to 3.24 percent in the third quarter from 3.39 percent a year earlier, PayPal said Wednesday in its first solo quarterly earnings statement. The PayPal Working Capital product achieved a milestone, having facilitated more than $1 billion in credit to small and mid-sized merchants since inception.
