PayPal Holdings Inc (NASDAQ: PYPL) reported better-than-expected earnings for its third quarter and raised its FY18 guidance.
The San Jose-based payment service reported tevenue growth of 14% to $3.68 billion on both a spot and foreign currency-neutral (FX-neutral or FXN) basis. The completion of the sale of the U.S. consumer credit receivables portfolio to Synchrony in July 2018 negatively affected revenue growth by approximately seven percentage points.
GAAP operating margin expanded 24 basis points to 13.3%; non-GAAP operating margin expanded 142 basis points to 21.4%. GAAP EPS of $0.36, increasing 17%; non-GAAP EPS of $0.58, increasing 26%
In all, PayPal added 9.1 million active accounts versus an increase of 8.2 million in Q3 2017, and ended the quarter with 254 million active accounts, up 15%. As well, PayPal reported 2.5 billion payment transactions, up 27%; the company noted $143 billion in total payment volume (TPV), up 24%, or 25% on an FX-neutral basis
CEO Dan Schulman was quoted thus: "PayPal had another excellent quarter. New partnerships with American Express and Walmart will increase the value that we can offer to our customers. Our strong balance sheet and cash flow enable us to aggressively invest in innovation and growth, creating sustainable and long-term value for our shareholders."
Thursday, PayPal and American Express (NYSE: AXP) announced a comprehensive strategic partnership. The agreement will allow PayPal to access American Express tokens and enables a deep integration of PayPal capabilities with the American Express platform, including the ability to transfer and use American Express rewards points at PayPal merchants.
Shares jumped $7.90, or 10.2%, to $85.38
