PayPal (PYPL) Tops Q3 EPS by 2c; Guides FY15 EPS Inline
PayPal (NASDAQ: PYPL) reported Q3 EPS of $0.31, $0.02 better than the analyst estimate of $0.29. Revenue for the quarter came in at $2.3 billion versus the consensus estimate of $2.27 billion.
“PayPal is entirely focused on digital payments and transforming money for people around the world. This clear focus and our strong value proposition allowed us to deliver strong financial results in the third quarter,” said Dan Schulman, President and CEO of PayPal. “We are operating in a time when change is sweeping through the financial services industry driven by the rise of mobile technology and the acceleration of money becoming digital. These two massive trends play directly to our strengths and we are leveraging this transformation to extend and accelerate our lead.”
Gaining Market Share
In the third quarter, PayPal gained market share and extended its lead with total payment volume (TPV) growing substantially faster than the rate of global e-commerce. Total PayPal TPV grew 27% on an FX neutral basis to $70 billion and merchant services TPV advanced 34% on an FX neutral basis and represented 80% of TPV for the quarter. The company also continued to accelerate its lead in mobile payments, processing 345 million transactions, an increase of 38%.
Expanding PayPal’s Customer Base
In the quarter, consumers across the world, and merchants, large and small signed up for PayPal in record numbers. The company grew its customer base to 173 million active customers and continued to add new partners to acquire customers like Macy’s, Shell in the UK and Latin America’s largest mobile wireless provider America Movil. PayPal’s large global customer base and strong two sided platform are tremendous assets and difficult to replicate.
Guidance:
PayPal sees FY2015 EPS of $1.23-$1.27, versus the consensus of $1.25.
For earnings history and earnings-related data on PayPal (PYPL) click here.