The online payments app company reported earnings per share of $1.08, which is higher than the $1.00 per share expected from the Street. Higher profit came after the business revenue exceeded the $6 billion mark for the first time ($6.12 billion). This is again higher compared to the $6.09 billion market analysts were expecting.
Net income was reported at $1.57 billion, representing an increase of over 200% compared to $507 million the online payments business reported a year ago. Surging sales came after the company said it added 16 million Net New Active Accounts (NNAs), with the Total Payment Volume (TPV) soaring 39% to $277 billion.
“PayPal delivered record performance in 2020 as businesses of all sizes have digitized in the wake of the pandemic. In this historic year, we released more products than ever before and have dramatically scaled our acceptance worldwide, giving our 377 million consumer and merchant accounts even more reasons to use our platform,” Dan Schulman, CEO of the company, said in a statement.
PayPal also reported a strong forward-looking guidance for Q1. The company is projecting to see its revenue and earnings grow 28% and 50%, respectively.
Shares of the company are trading more than 6% higher in pre-trading Thursday. PayPal stock price is now trading over 10% higher since the beginning of the year.
Analysts were evidently impressed by the latest business results from the online payments company, with Mizuho’s Dan Dolev arguing that PayPal has established itself as a “financial super app.”
“But what does a global financial super app look like? The future of PayPal as a super app was on display in 4Q20 as app login doubled for Bitcoin traders, with QR and BNPL driving halo effects in terms of incremental TPV. We expect the strong 4Q results that were marked by 40% TPV growth ex. eBay and upbeat 2021 guidance will create a pleasant setting for next week's analyst day,” Dolev said in a research note he sent to clients.
The online payments business giant PayPal reported extremely strong results for its Q4. The company saw its profit more than triple compared to a year-ago period, in addition to revenues exceeding the $6 billion mark for the first time.
About the Author
Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.