With signing up of new customers and rising volume of payments proceeds, Paypal Holding Inc’s profit for the third- quarter beat the estimates of analysts according to the company’s reports presented on Thursday.
From a net income of $380 million, or 31 cents per share last year, Paypal’s net income rose to $436 million, or 36 cents per share. The revenue increased from $3.24 billion to $3.68 billion.
According to Refinitiv, average analyst estimated were 54 cents per share which the company, excluding one- time items; beat and earned 58 cents per share.
For the fourth quarter, analysts’ estimates of the revenue are around $4.21 billion, while the company expects the revenue between $4.20 billion and $4.28 billion.
On Thursday the company shares were up 7%, which in 2015 got separated from ecommerce site eBay Inc.
Paypal’s largest acquisition has been the purchase of Swedish payments firm iZettle which got completed in September.
The company’s Chief Executive Dan Schulman said on a call with analysts that their major achievement has been the growth in net new activities and engagement.
The company which saw an increase of new active accounts by 8.2 million a year ago set a record with 9.1 million new active users in the third quarter this year.
With 24% increase in payments from last year, the company processed $143 billion in payments over the period.
With a growth of 78%, Paypal’s peer- to- peer payment app Venmo processed $17 billion of payments in the third quarter and is highly popular with younger consumers.
Schulman said that their monetization efforts seem to have reached a tipping point. Additionally, from 17%, 24% of Venmo users have now started participating in a “monetisable action”.