PayPal reported revenue growth for the third quarter of 13% on Monday and said it’s teaming up with Amazon to let U.S. customers pay with Venmo at checkout, starting in 2022.
The shares rose as much as 6.3% in after hours trading, even as the company reduced its forecast for the year on economic concerns.
Here’s how the company did versus expectations:
Revenue increased 13% from a year earlier in the quarter that ended Sep. 30, PayPal said in a statement.
Total payment volume rose 26% to $310 billion, and the company added 13.3 million net new active accounts, bringing the total to 416.
PayPal’s Venmo app, which began supporting cryptocurrency services in April, saw payment volume jump 36% to $60 billion. And starting next year, customers will be able to make purchases on Amazon.com and the Amazon mobile shopping app using their Venmo accounts.
The mobile payments company made a big push into crypto in the last year, allowing users in the U.S. to buy, sell, and check out with cryptocurrencies. With its network of 32 million retailers, PayPal’s crypto ambitions have positioned the company as a rival to Coinbase, the country’s most popular crypto exchange.
For the fourth quarter, PayPal sees adjusted earnings of $1.12 per share on netrevenue of between $6.85 billion and $6.95 billion. Analysts surveyed by Refinitiv had expected $1.27 in adjusted earnings per share on $7.24 billion in revenue.
PayPal said forecasting continues to be difficult given the macro environment, including the end of stimulus payments and the spread of the Delta variant, which affected travel. The company lowered its full-year guidance due to softer trends and the outlook for the country’s economic growth.
Revenue outlook growth was revised down to 18% for the year, putting it in the range of $25.3 billion to $25.4 billion. Analysts had expected $25.78 billion for the year.
PayPal has been expanding its product lineup. The company has added a ‘buy now, pay later’ platform, plus it’s offering cryptocurrency trading and high-yield savings accounts through a partnership with Synchrony Bank.
Excluding the after-hours move, PayPal stock has fallen about 2% since the start of the year, while the Nasdaq is up 24% over the same period.