PayPal Reports Third Quarter Financial Results Revealing 13% Revenue Growth

Fintech giant PayPal reported its third quarter financial results on Monday revealing a 13% revenue increase and a Venmo partnership with Amazon.

The partnership with Amazon will allow U.S. customers to pay with Venmo at checkout starting in 2022. Starting next year, customers will be able to make purchases on Amazon.com and the Amazon mobile shopping app using their Venmo accounts.

Shares were rising as much as 6.3% in after-hours trading, despite a reduction in the company’s forecast for the year due to economic concerns.

Looking ahead, PayPal issued guidance for the fourth quarter that was short of what analysts had been expecting.

For the fourth quarter, PayPal sees adjusted earnings of $1.12 per share on net revenue of between $6.85 billion and $6.95 billion. Analysts surveyed by Refinitiv were waiting for $1.27 in adjusted earnings per share on $7.24 billion in revenue.

Revenue guidance was revised down to 18% growth for the year, to a range of $25.3 billion to $25.4 billion. Analysts had expected $25.78 billion.

For the third quarter however, PayPal reported earnings per share of $1.11 adjusted, compare to $1.07 that was expected per Refinitiv.

Revenue at $6.18 billion was below the $6.23 billion that was expected but

Total payment volume rose 26% to $310 billion for the quarter ended Sept. 30, and the company added 13.3 million net new active accounts. The total is now 416, PayPal said in a statement.

Venmo saw payment volume jump 36% to $60 billion.

“Our third quarter results show solid growth on top of a record year. The strength of PayPal’s two-sided platform and ubiquity in our core markets has set us up to grow at scale, expand our work with existing merchants and attract new partners,” PayPal CEO Dan Schulman said.

“We’re thrilled that we are teaming up with Amazon to enable customers in the U.S. to pay with Venmo at checkout.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.