PayPal Reports Q3 Revenue Slightly Missed Analysts’ Expectations
PayPal Holdings Inc, after a spin-off from eBay Inc. reported its quarterly revenue for the first time that missed the analysts' expectations by a mark. The main reason was the strong dollar that hurt its volumes of transaction in markets of China and Europe.
Dan Schulman, PayPal Holdings Inc.'s Chief Executive Officer defended his new strategies of connecting deals with smartphone applications and bigger merchants that offer free peer-to-peer payments with shares going down due to worries that the efforts are taking a toll on the quarterly profits of the payment processing company.
PayPal said it added four million new accounts reaching a figure of 173 million users. The company's payments volume increased twenty percent to $69.7 billion compared to last year.
On Wednesday, shares of PayPal slipped5.6 percent during extended trading. The Q3 revenue grew approximately fourteen percent to $2.26 billion with almost half of it coming from markets outside the U.S.
Susquehanna Financial Group analyst James Friedman said, "I think that the foreign exchange impact has been larger than expected." According to PayPal, the company expects the dollar to have a larger impact on the revenue for this year than it anticipated earlier.
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