Earnings exceeded Wall Street’s forecast in each of the trailing four quarters, reflecting the rapid adoption of e-payment. It is estimated that the to-be-reported quarter benefitted particularly from strategic investments in fintech companies.
It is estimated that results for the to-be-reported quarter benefitted from strategic investments in fintech companies
The San Jose, California-based company reported a 37% jump in its first-quarter earnings to $0.78 per share, exceeding the forecast, as the user base expanded further and engagement increased across the platform. There was a 12% growth in revenues to $41.3 billion. Meanwhile, the top-line was negatively impacted by sale of the consumer receivables portfolio to Synchrony Financial.
The number of customer accounts moved up 15% annually to 277 million, thanks to PayPal’s strategic partnerships with some of the leading online platforms like Instagram and MercadoLibre.
Also see: PayPal Q1 2019 Earnings Conference Call Transcript
Of late, the management has been on an aggressive mission to expand its payment processing footprint through deals such as the acquisitions of digital payment processor Hyperwallet, financial technology company iZettle and prediction app Jetlore. Over the years, growth has also been driven by diversification into new geographical regions and product innovation.
PayPal shares hit a record high mid-July after making steady gains since the beginning of the year. In the past twelve months, the stock gained about 39%.