PayPal swung to a profit of $1.03 billion in the second quarter compared to a loss of $341 million in the same period last year.
It was up nearly 30 per cent on a quarterly basis as the company earned a net profit of $795 million in the March quarter.
The California company’s revenue during the April-June period increased 7 per cent on an annual basis to $7.3 billion. Earnings for each share jumped to $0.92.
Analysts polled by Investing.com anticipated earnings a share of $1.15 on revenue of $7.27 billion.
The company's shares fell as much as 7.4 per cent in extended-hours trading. They closed more than 3 per cent down at $73.2 a share giving the company a market valuation of $81.67 billion.
“Our second quarter results show continued momentum,” said Dan Schulman, president and chief executive of PayPal.
"We have high confidence that our business is on the right path … and we are seeing clear signs that the investments we have made are paying off."
In February, PayPal announced that Mr Schulman will retire and leave the global payments company at the end of the year.
Under his leadership, the company’s market cap growth outpaced the S&P 500 with revenue increasing to $27.5 billion in 2022 from $9.2 billion in 2015.
PayPal’s operating income surged 48 per cent on a yearly basis to $1.1 billion in the last quarter.
The company’s total payment volumes processed during the three months jumped 11 per cent annually to more than $376.5 billion.
The company’s total payment transactions surged 10 per cent year on year to 6.1 billion during the last quarter.
Total active accounts stood at 431 million at the end of second quarter, compared to 429 million in the second quarter of last year.
But there was a slight decline compared to the March quarter when they reached 433 million.
PayPal said it expected its revenue to grow 8 cent to $7.4 billion and earnings a share to hover in the range of $0.85 to $0.87 in the third quarter of the 2023 financial year.
That compared with analysts’ estimates for revenue and earnings a share of $7.33 billion and $1.22, respectively.
“Our teams are energised … and … confident that we are well positioned to continue to grow our leadership in digital payments,” Mr Schulman said.
PayPal’s total cash, cash equivalents and investments totalled $14.4 billion, while its debt stood at $10.5 billion as of June 30.
In the last quarter, PayPal generated cash flow from operations of $200 million, and free cash flow of $400 million.
The company repurchased about 22 million shares of common stock, returning $1.5 billion to stockholders in the previous quarter, PayPal said in a statement.
In February, it announced that it will lay off 2,000 employees, about 7 per cent of its workforce, as the technology industry continues to cut back on a hiring surge that began after the onset of the Covid-19 pandemic.
In June, PayPal and private equity firm KKR announced a multi-year relationship for European "buy now, pay later" receivables.
Under the transaction, which is expected to close in the second half of this year, private credit funds and accounts managed by KKR will buy up to €40 billion ($43.8 billion) of current and future BNPL loans originating in the UK and other European countries.
PayPal expects nearly $1.8 billion of proceeds, the company said.
Mubadala World Tennis Championship 2018 schedule
Thursday December 27
Men's quarter-finals
Kevin Anderson v Hyeon Chung 4pm
Dominic Thiem v Karen Khachanov 6pm
Women's exhibition
Serena Williams v Venus Williams 8pm
Friday December 28
5th place play-off 3pm
Men's semi-finals
Rafael Nadal v Anderson/Chung 5pm
Novak Djokovic v Thiem/Khachanov 7pm
Saturday December 29
3rd place play-off 5pm
Men's final 7pm
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
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Rating: 3.5/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Company%20Profile
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What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
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Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
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