The slight miss on revenue may have caused a 6 percent drop on PayPal stock prices in after-hours trading.
This quarter PayPal’s user numbers are up from 169 million last quarter to 173 million now. The company also increased its total payment volume 27 percent to $70 billion, 2.1 billion of which was processed through Venmo — its peer-to-peer app.
Since going public at the beginning of the quarter, PayPal has worked to prove its worth, announcing metrics left and right about the competency of its business.
Aside from being its first quarter (well, first in a while) as a publicly traded company, overall this quarter has been fairly quiet. The company hired John D Rainey to get PayPal’s financials in order. Meanwhile, PayPal made some tweaks to its core products, like introducing a mobile payment reading device for merchants, and expanded its reach to new platforms and to new regions. It also moved further into retail shops thanks to a deal with Macy’s, which will now accept PayPal as a form of payment at its stores.
Perhaps most notable was PayPal’s acquisition of ecommerce platform Modest, a move that signals the company will soon be expanding its online merchant offering (and perhaps better connecting it to its offline products). Modest focuses on bringing context to commerce, using user data to help present shopping experiences. We haven’t seen anything from this acquisition just yet, but those changes won’t likely go into affect until after the holiday season.
As for the remainder of the year, PayPal says it expects net annual revenues to grow 15-18 percent over last year with non-GAAP earnings ranging from $1.23 – $1.27.