Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
PayPal has released its quarterly report for the third quarter of 2019. The company has exceeded all analysts’ expectations.
PayPal Holdings Inc. has announced its earned figures in its quarterly report for the third quarter, showing a notable increase in the company’s volume of total payment. According to its report, the company pulled in a $4.38 billion revenue, representing a 19% increase.
Furthermore, the company’s earnings per share also increased, going higher than the proposed estimate by market analysts. Experts had estimated a 52 cents per share earnings but PayPal surpassed this, hitting 61 cents which is still an increase from last year’s 58 cents in the same period.
PayPal has also announced a prediction that the fourth quarter should end with earnings of between 81 and 83 cents, just around experts‘ estimate of 81 cents on the dot. The reported figures seemed to have also been held back a little bit, by investments in ride-hailing company Uber, as well as in Argentine e-commerce company Mercado Libre. Without these two, figures might have been a bit higher.
Furthermore, PayPal’s third quarter saw an increase in the number of active accounts by 16%. This means that 9.8 million new accounts signed up, effectively driving the company’s total number of accounts to about 295 million. In addition, its total payment volume (TPV) surged by 25% and hit $179 billion. PayPal, however, predicts that by the end of the year, it should hit a total revenue of up to $17.76 billion and earnings per share should sit somewhere between $3.06 and $3.08.
PayPal President and CEO Dan Schulman in a news release said:
“We had an excellent quarter financially and operationally, reporting 19% revenue growth, more than 200 basis points of operating margin expansion, accelerating TPV growth and nearly 10 million net new active accounts.”
Last month, PayPal secured approval to enter the Chinese market by acquiring 70% of GoPay by the Guofubao Information Technology Co., Ltd. Even though none of the companies announced any specific details at the time especially regarding specific figures, it is expected that the deal will be fully completed by the end of the fourth quarter and will solidify PayPal’s position as the very first non-Chinese payments company to receive license from Chinese authorities to offer its services in the country. Schulman has described this as “a very significant development that has the potential to meaningfully expand our addressable market.”
A few months ago, Facebook announced plans for its Libra, released a whitepaper, and also announced a Libra Association, the governing body for the digital asset. PayPal along with more than 20 others, was announced as one of the founding members of the association. However, since the announcement, U.S. authorities, especially Congress, have expressed their displeasure with the project and due to regulatory bottlenecks, PayPal was the first firm to announce its official departure from the Libra Association. At the moment, Stripe, MasterCard, Visa and a few others have also followed PayPal out of the association.