PayPal reported third-quarter results on October 27 showing modest sales growth alongside a higher adjusted earnings outlook. Revenue was US$8.584 billion, up 2% year over year, for the quarter ended September 30.
Volume grew faster than revenue
Total payment volume reached US$487.1 billion, up 6% as reported and 7% excluding currency movements. The company processed 6.8 billion payment transactions and reported 440 million active accounts. Payment volume measures money moving through the platform; it is not PayPal revenue.
GAAP and adjusted earnings diverged
GAAP net income fell 14% to US$1.073 billion, with diluted earnings per share down 4% to US$1.25. Non-GAAP earnings per share rose 8% to US$1.45. Adjusted net income nevertheless declined 3%, making the per-share increase different from growth in total adjusted profit.
Outlook is a forecast
PayPal raised full-year non-GAAP EPS guidance to about US$5.60 from US$5.38 in July, and reaffirmed GAAP EPS guidance near US$5.07. These are forecasts. Reconciliations in the release explain the adjustments.
Sources
PayPal Q3 release furnished with SEC Form 8-K
PayPal newsroom: results announcement
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