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PayPal Earnings Beat in Q2 on Pandemic-Led Surge in Demand

Published 29/07/2020, 21:17
© Reuters.
PYPL
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By Yasin Ebrahim

Investing.com - PayPal reported on Wednesday second-quarter earnings and revenue that topped expectations as the Covid-19 pandemic boosted demand for digital payments.

PayPal (NASDAQ:PYPL) shares gained 0.05% in after-hours trade following the report.

PayPal announced earnings per share of $1.07 on revenue of $5.26 billion. Analysts polled by Investing.com anticipated EPS of $0.87 on revenue of $4.99 billion.

The beat on the top line was driven by a larger-than-expected increase in new accounts that underpinned payment volumes.

Reported net new active accounts jumped 22% for the quarter year-on-year, bringing total active accounts to 346 million, up 21%. That was above consensus estimates of 335 million.

Total payment volume (TPV), a key measure of performance, rose 19%, to $222 billion, above consensus estimates of $210.73 billion.

"In the midst of the COVID-19 pandemic, digital payments have become more important and essential than ever," the company said.

For the third quarter, PayPal guided TPV growth in the "high 20s," and revenue and diluted non-GAAP EPS to grow about 23% and 25%, respectively.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

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