Last week PayPal reported record revenue of $2.26 billion and an addition of 4 million new users for the third quarter of 2015, ending September 30, 2015. This was PayPal’s first solo earnings report since splitting from eBay in July.
In the company’s press release, PayPal (NASDAQ: PYPL) said it “gained market share, expanded its customer base, deepened engagement with merchants and consumers and delivered on its financial commitments.” Dan Schulman, president and CEO of PayPal, commented on the company’s impressive results:
“PayPal is entirely focused on digital payments and transforming money for people around the world. This clear focus and our strong value proposition allowed us to deliver strong financial results in the third quarter.
“We are operating in a time when change is sweeping through the financial services industry driven by the rise of mobile technology and the acceleration of money becoming digital. These two massive trends play directly to our strengths and we are leveraging this transformation to extend and accelerate our lead.”
Report highlights include:
Net (GAAP) revenue of $2.26 billion, a 14% increase year-over-year
- Net (GAAP) income of $301 million, a 29% increase year-over-year
- Net Non-GAAP income of $377 million
- Increased mobile payments by 38%, processing 354 million transactions
- Customer base grew to 173 million active users, an increase of 4 million
- Processed 1.22 billion payment transactions, an average of 27 payment transactions per active customer account, a 3 payment-per-account increase
- $2.1 billion was processed through Venmo, representing 200% growth
“These metrics demonstrate the trust that our customers place in PayPal, and they are increasingly finding more utility and value in their PayPal accounts,” Schulman added.
For its first solo quarter, PayPal had great results…and it needed to. Since splitting from eBay, PayPal has had to prove that it is strong enough to be an independent company. It also has to prove that, despite its age – the company was founded in 1998 – it can adapt to a mobile world where ease of use and security are paramount. Now in 203 markets, with 25% of its payments made on mobile devices (in 2014), and a new deal with Macy’s, according to Venture Beat, PayPal is taking steps to secure a strong future.