PayPal Holdings, Inc. 2Q 2017 Earnings Beat Estimates -

PayPal Holdings, Inc. 2Q 2017 Earnings Beat Estimates

Jul 26, 2017Jeremy ParkinsonFinance0

PayPal (PYPL) 2Q 2017 earnings were released after closing bell tonight. The company posted adjusted earnings of 46 cents per share on $3.14 billion in revenue, compared to the consensus estimates of 43 cents per share in adjusted earnings on $3.09 billion in revenue. In last year’s second quarter, PayPal reported non-GAAP earnings of 26 cents per share on $2.65 billion in revenue.

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PayPal 2Q 2017 earnings

On a GAAP basis, PayPal 2Q 2017 earnings rose 27% year over year to 34 cents per share, versus the year-ago quarter’s 27 cents per share.

The digital payments processor added 6.5 million active customer accounts during the quarter, with net new adds rising 80% year over year. It had 210 million active customer accounts at the end of the quarter, of which 17 million were merchant accounts. PayPal processed 1.8 billion payment transactions, marking a 23% year-over-year increase. It had an average of 32.3 payment transactions per active account on a trailing 12-month basis, which was a 10% increase. Total payment volume grew 23% to $106 billion.

“Our strong results reflect PayPal’s transformation from a single product to a platform company, from a vendor to a strategic partner to both merchants and ecosystem players, and from a checkout option to an increasingly more central way for consumers to manage and move their money,” PayPal President and Chief Executive Dan Schulman said in a statement.

PayPal boosts full-year outlook

PayPal also increased its guidance for revenue and earnings for the full year and provided a third-quarter outlook. It now expects an 18% to 19% increase in revenue, bringing the total to between $12.775 billion and $12.875 billion. The company expects GAAP earnings of $1.32 to $1.36 per share for the full year and non-GAAP earnings of $1.80 to $1.84 per share.

For the third quarter, PayPal expects an 18% to 20% increase in revenues, bringing the total to between $3.14 billion and $3.19 billion. It projects GAAP earnings of 30 cents to 32 cents per share and non-GAAP earnings of 42 cents to 44 cents per share.