PayPal records best quarter ever amidst the crypto bull market
Payments giant PayPal reported its quarterly earnings on Wednesday. In Q1, the company generated $6.03 billion of revenue accounting for a 31% year on year increase.
According to Global financial data provider Refinitiv, PayPal earnings would be $1.01 per share in Q1 2021, but the company overperformed expectations and noted $1.22 adjusted earnings per share. The company’s revenue also grew 31% year over year and did slightly better as Refinitiv analysts expected; $6.03 billion vs $5.90 billion.
During the first quarter of the year, the company added 14.5 million new active accounts, thereby bringing its total user base to 392 million.
.@PayPal had a record-breaking first quarter to start the year $PYPL https://t.co/8VO9W0VLKF pic.twitter.com/TWRM07BG3q
— PayPal News (@PayPalNews) May 5, 2021
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In the company’s earnings call, Chief Executive Dan Schulman noted that this is the strongest year in Paypal’s entire history and that Q1 was the “strongest quarter ever with record financial and operating results.”
In the call, the CEO highlighted the importance of crypto and other digital currencies in the changing financial landscape:
“Both cryptocurrencies and central bank-issued digital currencies can play a critical role in shaping a more inclusive recovery and a more equitable financial system.”
“Our leadership in all forms of digital currency has been widely embraced, enabling numerous positive conversations with central banks, regulators, and government officials around the world.”
We’ve got a tremendous amount of really great results going on tactically with our cryptocurrency efforts right now. And we’re excited about those.
He continued about its customer’s engagement that has driven the companies Q1 results and said:
“About half of our crypto users open their app every single day.”
He added: “Obviously, if you look at again surveys that have come out recently and you look at millennials, something like 74% of them anticipate that they’re going to use crypto in the next year or two in some way. Business profiles growing above plan. We’re going to be introducing things like goods and services by our protection.”
An all-in-one personalized app
He proceeded to talk about the company’s new digital wallet, which he described as
Schulman made some predictions for the coming year as he discussed the company’s upcoming digital wallet.
“Over the coming year, we will accelerate our customers’ digital engagement through the rapid innovation of our digital wallet and merchant commerce platform. We expect to roll out our next-generation digital wallet in Q3.”
He further described the wallet as:
“An all-in-one personalized app that will empower our users to make the most of their money and strengthen their financial lives every day.”
PayPal’s shares reacted positive to the announced earnings. Shares rose as much as 5.5% in extended trading on Wednesday after reported earnings were better than analysts had expected.
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Source: igaming
