PayPal Holdings Inc. has reported record earnings during the second quarter as consumers and merchants rapidly embraced a shift towards digital payments amid massive retail shutdowns and a surge in remote, e-commerce purchases due to COVID-19.
The company reported a 49 per cent increase in adjusted earnings to $1.07 per share compared with the year-ago quarter. Revenue increased 25 per cent year-over-year to $5.26 billion. “Simply put, our business has never been more relevant and important than it is today,” Dan Schulman, president and chief executive officer at Pay- Pal, told analysts on the company’s quarterly conference call. Total payment volume rose 30 per cent to $222 billion in the quarter.
Schulman said business during the quarter was so strong that it rivaled volumes usually seen during the Black Friday weekend through Cyber Monday. PayPal reported a 137 per cent year-over-year increase in net new active accounts to a record 21.3 million in the quarter, the most in its history. PayPal reported 3.7 billion payment transactions, up 26 per cent from a year ago. The company reported 39.2 payment transactions per active account on a trailing 12-month basis, which was flat compared with year-ago figures.
PayPal reported that Venmo, its social payments unit, processed $37 billion in TPV, an increase of 52 per cent from the year-ago period. The company reinstated and raised its guidance for the third quarter and fiscal year, forecasting third-quarter revenue growth of 23 per cent to 25 per cent. Fiscal 2020 earnings per-share growth is per cent to 22 per cent.