Revenue and earnings exceeded expectations! PayPal performed strongly in the third quarter!

It is learned that PayPal's earnings and revenue in the third quarter exceeded expectations, but the company's fourth-quarter revenue forecast was lower than analysts' expectations, and the company's stock price fell more than 5% in after-hours trading. The following are the main points of PayPal's financial report:

Revenue was $6.85 billion, topping the $6.82 billion expected, and earnings per share were $1.08, topping the 96 cents expected, according to a Refinitiv survey of analysts.

Although the fintech company's business is slowing down, the third quarter was strong for PayPal. 400,000 new accounts were added in the third quarter, bringing the total number of accounts to 432 million, of which 35 million were merchant accounts. However, as the epidemic is under control, the growth rate of PayPal accounts has slowed from 16% in the second quarter of 21 to 4% in the third quarter of 22.

PayPal estimated fourth-quarter revenue of $7.38 billion, below the consensus estimate of $7.74 billion, according to analysts surveyed by Refinitiv. However, PayPal raised its earnings per share forecast for the full fiscal year, saying it benefited from "ongoing production plans." It expects to add 8 to 10 million new active users in the current fiscal year.

PayPal expects full-year revenue of $27.5 billion, up 10% year-over-year. In the previous quarter, PayPal guided for $27.9B and 11% year-over-year growth. While lowering its revenue forecast by 1 percentage point, PayPal raised its EPS forecast from $3.87 to $3.97 to a new range of $4.07 to $4.09.

PayPal said it is working with Apple to enhance the services it provides for PayPal and Venmo, including allowing U.S. merchant customers to accept contactless payments through their mobile wallets and adding PayPal and Venmo network-branded credit and debit cards to Apple Wallet.

Editor ✎Estella/

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