PayPal Holdings Inc.’s profit went up. three times in the fourth quarter when the company halted what President Dan Schulman called the strongest quarter in its history, driven by accelerated acceptance of digital payments at the time of the pandemic.
Shares rose 2.3% in after-hours trading on Wednesday.
The company reported net revenue of $ 1.57 billion, or $ 1.32 a share, up from $ 507 million, or 43 cents in a share, in the prior year prior period. PYPL PayPal,
GAAP earnings per share for the most recent quarter included a 60-percent net return on strategic investments.
On a modified basis, PayPal won a share of $ 1.08, which came in ahead of the FactSet deal, which demanded a share of $ 1.00.
PayPal generated $ 6.12 billion in revenue for its December quarter, up from $ 4.96 billion, while analysts expected $ 6.09 billion. This marked the first period in which PayPal accounted for more than $ 6 billion in quarterly revenue.
The company’s total payout (TPV) volume, or the value of transactions conducted across the platform, rose to $ 277 billion from $ 199.4 billion, while analysts demanded $ 267.9 billion. Venmo’s TPV rose 60% to $ 47 billion, but FactSet’s consensus was for $ 46.6 billion.
During the busiest times at the height of the holiday shopping season, PayPal was processing more than 1,000 transactions per second, Schulman told MarketWatch, registration statistics for the company.
PayPal added 16 million new active accounts in the most recent quarter, bringing its total active accounts to 377 million, including 29 million merchant accounts. Venmo’s active accounts rose 32% to 70 million.
The company held a series of product launches near the end of the year, including allowing U.S. consumers to buy, sell and hold cryptocurrencies through its platform. Those customers who bought cryptocurrencies through PayPal have been logging into their accounts twice as often as they did before, the company said.
Another relatively new product, a later buy-now-pay-per-click offer that allows customers to split purchases into three or four installments, depending on the area, has generated $ 750 million in total payout in the latest quarter.
The company now has 600,000 buyers who accept PayPal and Venmo QR codes, including CVS Health Corp. CVS,
Nike Inc. NKE,
and Five Below Inc FIVE,
Over 2020, PayPal advanced its efforts to grow internal transactions through features such as Venmo corporate cards, QR codes, and tap payments. Nearly 10 million PayPal customers made in-store payments through the service in some capacity in 2020, according to Schulman, making up more than $ 20 billion in total payment volume.
“These new products and services are dramatically changing PayPal from a check solution to a full-featured app, or digital wallet that spans payments, financial services, and trading and purchasing tools,” he said.
For the first quarter, PayPal expects revenue growth of 28% at normal spot rates, or 26% on a cash-neutral basis. The company also expects EPS adjusted growth of about 50%.
Analysts conducted by FactSet modeled $ 5.62 billion in March quarter revenue, up from $ 4.62 billion a year earlier, and 99 cents in adjusted earnings per share, up from 66 cents per share. a year earlier.
Looking at 2021 as a whole, PayPal expects TPV growth in the 20-percent high range. The company models revenue growth of 19% at current spot rates and 17% on a cash-neutral basis to approximately $ 25.5 billion. Adjusted employment is also expected to grow 17% per sector and 50 million new operating accounts for the year.
The FactSet consortium demanded $ 1.15 trillion in total payroll volume, $ 25.43 billion in revenue, and $ 3.12 trillion in adjusted earnings for the full year.
Shares of PayPal have gained 40% over the past three months as the S&P 500 SPX,
increased 17%.