PayPal Earnings: The Transformation Is Paying Off

Even before PayPal Holdings, Inc. (NASDAQ: PYPL) announced its financial results, the payment processor was already having an impressive quarter. The company had recently announced a number of new or extended partnerships with major credit card issuers and processors, as well as its acceptance as a payment option with Apple Inc., in its App Store, Apple Music, and iTunes accounts.

Investors were eager to see if the continued expansion of these partnerships would translate into additional users and greater financial success, and they were not disappointed. For the just completed quarter, PayPal saw revenue increase to $3.14 billion, up 18% year over year, and an even higher 20% on a foreign currency-neutral basis. GAAP earnings per diluted share increased to $0.34, up 27% over the prior-year quarter.

PayPal saw improvement in a variety of other metrics as well. The company added 6.5 million new customer accounts, up an astonishing 80% year over year, and the largest quarterly gain in two years. The number of payment transactions grew to 1.8 billion, a 23% year-over-year increase, while the total payment volume (TPV) hit $106 billion, up 23% over the prior-year quarter and the first time TPV has exceeded the $100 billion mark.

Source: Fool.com