PayPal Profits (PYPL) Q2 2021

PayPal shares fell as much as 8% in extended trading on Wednesday after reporting second-quarter revenue that was weaker than analysts expected.

Here’s how the company did against expectations:

  • Earnings per share: $ 1.15, adjusted, versus $ 1.12 expected in a Refinitiv analyst survey
  • Income: $ 6.24 billion vs. $ 6.27 billion expected

Second-quarter net income fell 23% from the prior year to $ 1.18 billion, and the company added 11.4 million new net active accounts, for a total of 403 million active accounts..

Revenues grew 19% year-on-year in the quarter ending June 30, according to a statement. The pandemic fueled an increase in online shopping, helping drive a record payment volume in 2020.

Total payment volume grew 40% to $ 311 billion, while the Venmo app, which began supporting cryptocurrency services in April, saw payment volume grow 58% to $ 58 billion.

The mobile payments company made a big push into cryptocurrencies in the last year, allowing users in the US to buy, sell and pay with cryptocurrencies.

With its network of 32 million retailers, PayPal’s crypto ambitions have positioned the company as a rival to Coinbase, the country’s most popular crypto exchange.

PayPal says eBay is exiting its platform, which is causing a “short-term brake” on growth, but says the transition to eBay will be complete by the end of the third quarter.

Regarding guidance, for the third quarter PayPal expects adjusted earnings of $ 1.07 per share on revenues of between $ 6.15 billion and $ 6.25 billion. Analysts surveyed by Refinitiv expected $ 1.14 in adjusted earnings per share on $ 6.44 billion in revenue.

Excluding after-hours movement, PayPal shares are up about 29% since the beginning of the year, while Nasdaq is up more than 14% over the same period.

Additional reporting by Kate Rooney.

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