PayPal (PYPL) 2021 Q1 Earnings Report Preview

PayPal Holdings Inc. (NASDAQ:PYPL) has been around since 2000. It started as an online payment platform for sending and receiving money. It gained popularity in a short span of time, and gradually evolved into a leading online payment processor. PayPal enjoyed tremendous growth last year, as its active accounts touched 377 million and total payment volume reached $936 billion.

The California-based digital payment giant continued its growth momentum in 2021. The company once again delivered strong results for the first quarter. PayPal reported earnings of $1.1 billion, or 92 cents per share for the three months ended March 31, significantly higher than $84 million, or 7 cents per share in the comparable period of 2020. On an adjusted basis, earnings nearly doubled to $1.22 per share and easily surpassed the consensus forecast of $1.01 per share.

Revenue for the quarter climbed 29 percent on a year-over-year basis to $6.03 billion, beating analysts’ average estimate of $5.91 billion. Total payments volume in the quarter reached $285 billion, versus the consensus forecast of $264.7 billion. Meanwhile, active accounts in the quarter jumped by 14.5 million to reach 392 million.

Speaking on the results, CEO Dan Schulman said in a statement, “Our strong first quarter results demonstrate sustained momentum in our business as the world shifts into the digital economy. Our addressable market continues to grow as we launch new products and services for our 392 million active accounts.”

Follow Paypal Holdings Inc. (NASDAQ:PYPL)

PayPal also raised its financial outlook for the full year. The company is now anticipating adjusted earnings of around $4.70 on revenue of $25.75 billion for fiscal 2021, translating to year-over-year growth of 21 percent and 20 percent, respectively. Moreover, it expects active accounts to grow in the range of 52 million to 55 million, versus its earlier forecast of 50 million additions.

Suggested Articles:

Best Places To Live in the US for Quality of Life

Most Dangerous Cities in Europe

US Cities That Are Most Vulnerable To Climate Change