PayPal revealed an adjusted EPS of $1.22 on revenues of $6.03 billion. Revenue increased 31% quarter over quarter. The consensus was of an EPS of $1.01 and revenues of $5.90 billion. Moreover, its net profit rose to $1.10 billion from $84 million reported a year earlier. Its total user base reached 392 billion after, in the past quarter, 14.5 million joined the payments system.
Also, the company broke into the crypto market in the last six months due to high demand from retailers. CEO Dan Schulman revealed that cryptocurrency is a key factor for the company, as now the app allows users in the US to buy, sell, and check out cryptocurrencies. According to him, half of the crypto users open the PayPal app daily, suggesting increased engagement for people.
With respect to guidance, PayPal sees its adjusted EPS at a high of $1.12 on revenues of $6.25 billion. Moreover, PayPal announced that it plans to release a “next-generation digital wallet” in Q3. It would be an “all-in-one, personalized app [that] will provide increasingly customized and unique shopping, financial services, and payments experiences.”
After the news hit the wires, PayPal stock price rose 5.5%. Since the beginning of the year, the company’s stock price went up 5.9%, while USA500 added about 5.5%.