PayPal (NASDAQ:PYPL) has announced its Q3 earnings results with an EPS beat of $1.11 (non-GAAP) and total payment volume of $310 billion and 416 million accounts. Net revenues were reported at $6.18 billion an increase of 13% versus year prior and net income arrived at $1.319 billion.
Shares are inching higher in after-hours trading but it may have to do more with PayPal’s announcement of a strategic initiative with Amazon.
According to PayPal, the company is teaming up with Amazon to enable customers in the U.S. to pay with Venmo at checkout. Starting next year, customers will be able to make purchases on Amazon.com and the Amazon mobile shopping app using their Venmo accounts.
PayPal also announced it was expanding its cryptocurrency product offerings, launching the ability to buy, hold, and sell cryptocurrency in the UK and rolling out Cash Back to Crypto, a new way for Venmo Credit Card customers to automatically purchase cryptocurrency from their Venmo account using cashback earned from their card purchases.
PayPal said that 13.3 million Net New Active Accounts (NNAs) were added during the quarter.
Operating Cash Flow was $1.51 billion, growing 15% with Free Cash Flow of $1.29 billion, growing 20%.
Last month, PayPal announced the acquisition of Japanese BNPL Paidy thus expanding the footprint of the global payments and transfers company.
Update: In early trading, shares of PayPal are tanking. The consensus appears to be driven by PayPal’s Q4 outlook that did not match investors’ expectations as PayPal provided both top and bottom-line guidance that failed to enthuse analysts.
