By Yasin Ebrahim
Investing.com - PayPal reported on Wednesday second-quarter earnings and revenue that topped expectations as the Covid-19 pandemic boosted demand for digital payments.
PayPal (NASDAQ:PYPL) shares gained 0.05% in after-hours trade following the report.
PayPal announced earnings per share of $1.07 on revenue of $5.26 billion. Analysts polled by Investing.com anticipated EPS of $0.87 on revenue of $4.99 billion.
The beat on the top line was driven by a larger-than-expected increase in new accounts that underpinned payment volumes.
Reported net new active accounts jumped 22% for the quarter year-on-year, bringing total active accounts to 346 million, up 21%. That was above consensus estimates of 335 million.
Total payment volume (TPV), a key measure of performance, rose 19%, to $222 billion, above consensus estimates of $210.73 billion.
"In the midst of the COVID-19 pandemic, digital payments have become more important and essential than ever," the company said.
For the third quarter, PayPal guided TPV growth in the "high 20s," and revenue and diluted non-GAAP EPS to grow about 23% and 25%, respectively.
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