PUBLISHED THU, OCT 18 2018 • 3:33 PM EDT
The payment company beat analysts’ expectations for earnings and revenue in the third quarter but fell short of total payment volume estimates.
The company added 9.1 million accounts during the quarter and saw a 25 percent increase in total payment volume.
Payment volume from the company’s peer-to-peer payment app Venmo rose 78 percent in the third quarter.
PayPal reported third-quarter earnings and revenue that topped Wall Street estimates on Thursday, with a surge in payment volume for its peer-to-peer payment app Venmo.
Here’s how the company did compared with what Wall Street expected:
Earnings: 58 cents vs. 54 cents per share, forecast by Refinitiv.
Revenue: $3.68 billion vs. $3.66 billion, forecast by Refinitiv.
Shares of PayPal rose as much as 7.5 percent in after-hours trading Thursday and were trading near $83. The stock is up 13 percent year to date and 8 percent year over year.
The payment company’s revenue grew 14 percent in the third quarter to $3.68 billion, while earnings were up 26 percent.
Total payment volume for the peer-to-peer payment app Venmo rose 78 percent in the third quarter to roughly $17 billion. Investors had been hoping for good news on Venmo, which has struggled to prove itself as a moneymaker for its parent company.
“I’m especially pleased with the strong overall momentum surrounding Venmo,” PayPal CEO Daniel Schulman said on a call with analysts Thursday. “While it is still early, our monetization efforts appear to be reaching a tipping point.”
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