Paypal’s bet of targeting emerging economies like India for its newer base of customers has paid off. In its Q3 earnings report that the financial giant released yesterday, the company has beaten Wall Street estimates by amassing $436 Million in net income, an addition of over $50 Million to previous year’s Q3 results.
In terms of EPS (earnings per share), Paypal registered a net income of 36 cents per share, an increase from 31 cents per share an year earlier.
Excluding one-time items, the company earned 58 cents per share, beating the average analyst estimate of 54 cents, according to Refinitiv. For the fourth quarter, PayPal expects revenue between $4.20 billion and $4.28 billion. This figure continues to be in line with analysts’ estimates of $4.21 billion.
An obvious outcome of all the good financial news was a 7 percent rise in Paypal’s shares, in trading after the bell on Thursday. Paypal had separated from eBay in 2015, thus helping it move ahead with a clearer focus, which is beginning to show.
The company added a record 9.1 million new active accounts in the third quarter, compared to an increase of 8.2 million a year earlier. According to the company’s official release, PayPal processed $143 billion in payments over the period, up 24 percent from a year earlier. Venmo, its peer-to-peer payment app popular with younger consumers, processed $17 billion of payments in the third quarter, growing 78 percent.