PayPal’s Q3 Earnings Beat Estimates but Revenues Fall Short

The payments giant added 13.3 million new accounts in the quarter, up from 11.4 million in the prior quarter.

AccessTimeIconNov 8, 2021 at 10:16 p.m. UTC
Updated May 11, 2023 at 4:06 p.m. UTC

PayPal’s (PYPL) adjusted earnings per share of $1.11 for the third quarter came in ahead of the analyst consensus estimate of $1.07, according to FactSet. But the company also posted revenue of $6.18 billion in the third quarter, which was short of estimates of $6.23 billion.

  • The company posted total payment volume of $310 billion in the third quarter, up 24% from the year-ago period. It added 13.3 million net new active accounts in Q3 versus 11.4 million in Q2.
  • PayPal’s transaction revenue rose to $5.61 billion during the third quarter, up 10% from the year-ago period, but down 3% from Q2.
  • Part of PayPal’s transaction revenue comes from the company’s crypto “buy, sell and hold” product, but the company excludes crypto payments from total payment volume.
  • The company noted that in the third quarter, it rolled out the ability for its U.K. customers to buy and sell cryptocurrencies, and also launched a program for its credit card customers to automatically purchase crypto from their Venmo account using cash back earned from their card purchases.
  • The company has reported in the past that customers who purchased crypto through the platform have been logging into PayPal twice as often as they were before they could buy crypto.
  • PayPal said it expects fourth-quarter net revenue to be in the range of $6.85 billion to $6.95 billion, which was below the consensus estimate of $7.24 billion.
  • The company also expects total payment volume growth of about 33% to 34% for 2021, as well as the addition of roughly 55 million net new accounts, including three million active accounts from the acquisition of Paidy.
  • Shares of PayPal were roughly flat at $229.57 in after-hours trading on Monday.
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  • UPDATE (Nov. 8, 22:50 UTC): Added info about Q3 news in fourth bullet point.

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