PayPal (PYPL) has reported its highest quarter ever for the company. Although the population gradually withdraws from the exclusionary regime, its financial indicators continued to exceed analysts’ estimates – people opted to purchase through the Internet. With PayPal, cryptocurrency transactions have also grown in popularity.
During the first three months of this year, the total volume of payments totalled $ 285 billion, a record high. Experts expected it to grow by $265 billion. The number of platform users has increased by 14.5 million, or 21%. Revenues increased by 31% to $ 6.03 billion versus $ 5.9 billion predicted by Refinitiv.
Revenue under GAAP increased 13 times to $ 1.1 billion, and adjusted profit increased 1.9 times to $ 1.5 billion. Earnings per share were $ 0.92 and $ 1.22 (GAAP and adjusted figures, respectively). Experts did not expect more than $ 1.01 per share. PayPal’s margin increased from 8.6% to 17.3% in the past year.
The CEO of PayPal, Dan Shulman, recently told Bloomberg that, even when stores, restaurants, and events open, consumers will pay for these items digitally. “We now believe that the digital transformation of consumers will remain virtually unchanged in the post-image world.”
On Wednesday, May 5, following the report’s release, the share price of PayPal rose 4.71%, reaching 259.05 per share on the postmarket.
PayPal’s management previously anticipates a revenue increase of 19% by the end of 2021, as well as a 52-55 million user growth in active users, in addition to 30% growth in payments and 20% revenue expansion to $25.27 billion.
Schulman said that cryptocurrency is a key growth engine for the company. “We’ve achieved a lot of really good results through our crypto efforts,” Schulman said. The researcher says that half of the PayPal users are using their cryptocurrency mobile app to transact every day, suggesting that engagement is growing.
Since October 2020, the company has offered investment services, including buying, selling, and storing cryptocurrencies. American PayPal users will be able to use cryptocurrencies to pay for goods and services on the Internet starting March 30.
Throughout the third quarter, the payments giant will launch a “next-generation digital wallet”. Schulman called the product “a one-stop, completely personalized solution” that would provide customers with individual, uniquely tailored shopping, financial and payments experiences.