PayPal Holdings, Inc. (NASDAQ: PYPL) reported second-quarter financial results after the markets closed on Wednesday. The firm said that it had $1.07 in earnings per share (EPS) and $5.26 billion in revenue, compared with consensus estimates that called for $0.88 in EPS on $4.99 billion in revenue. The same period from last year had $0.86 in EPS and $4.3 billion in revenue.
The company recorded its strongest quarter ever in terms of Net New Active Accounts (NNAA). PayPal NNAAs increased 137% year over year to 21.3 million. Also, there were 3.7 billion payment transactions in the quarter, an increase of 26%.
At the same time, Total Payment Volume (TPV) increased 29% year over year to $222 billion, or an increase of 30% on a currency-neutral basis. Merchant Services volume grew 28%. Venmo processed about $37 billion in TPV, an increase of 52%.
Note that there was an average of 39.2 payment transactions per active account on a trailing twelve-month basis, which was flat compared to the second quarter of 2019. Adjusting for the acquisition of Honey in January 2020, there was an average of 40.7 payment transactions per active account.
Management noted that in the midst of the COVID-19 pandemic, digital payments have become more important and essential than ever. PayPal’s record performance in the second quarter —its strongest quarter ever—reaffirms the relevance of PayPal in the digital future, according to CEO Dan Schulman.
On the books, cash, cash equivalents, and investments totaled $16.2 billion at the end of the quarter. The company raised $4 billion in senior fixed notes in the month of May, bringing PayPal’s total debt to $9.0 billion.
PayPal stock closed Wednesday at $184.60, with a 52-week range of $82.07 to $185.44. The consensus analyst price target is $183.74. Following the announcement, the stock was up less than 0.1% at $184.70 in the after-hours session.
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.