PYPL PayPal Holdings Inc

   By Maria Armental 
 

PayPal Holdings Inc. reported strong financial results in the second quarter and reinstated financial projections for the year, fuelled by the increase in digital payments amid the coronavirus pandemic. Here's what you need to know:

PROFIT: Net income rose to $1.53 billion, or $1.29 a share, from $823 million, or 69 cents a share, a year earlier. On an adjusted basis, profit rose to $1.07 a share from 71 cents a share a year earlier. Analysts surveyed by FactSet expected 49 cents a share, or 87 cents a share on an adjusted basis.

REVENUE: Net revenue rose to $5.26 billion from $4.31 billion a year earlier. Analysts expected $4.99 billion.

PAYMENT VOLUME: Total payment volume rose about 29% to $222 billion.

NEW ACCOUNTS: The company added a net 21.3 million new active accounts, the strongest quarter in PayPal's history, ending the quarter with about 346 million active accounts.

OUTLOOK: PayPal reinstated financial projections for the year, citing the strong momentum thus far. It said it now expects revenue for the year to increase about 20% and profit on a per-share basis, to increase about 25%. It expects to add about 70 million of net new accounts.

PANDEMIC: "In the midst of the COVID-19 pandemic, digital payments have become more important and essential than ever," Chief Executive Dan Schulman said in a statement. "Our record performance in the second quarter - our strongest quarter ever - reaffirms the relevance of PayPal in the unfolding digital future."

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

July 29, 2020 16:52 ET (20:52 GMT)

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