Payments solutions company $PayPal(PYPL.US)$ reported second-quarter financial results after the market close Tuesday. Here are the key highlights.
What Happened: PayPal reported revenue of $6.8 billion for the second quarter, up 9% year-over-year. The revenue came in ahead of a Street estimate of $6.78 billion, according to data from Benzinga Pro.
The company said revenue excluding $eBay(EBAY.US)$ was up 14% year-over-year.
PayPal reported non-GAAP earnings per share of 93 cents for the second quarter versus analyst estimates of 86 cents per share.
Total payment volume hit $339.8 billion in the second quarter, up 9% year-over-year. Venmo had a total payment volume of $61.4 billion in the second quarter, up 6% year-over-year.
PayPal added 400,000 net new accounts in the second quarter, ending the quarter with 429 million, up 6% year-over-year.
Our second quarter results were solid with currency neutral revenue and non-GAAP earnings growth exceeding expectations. We continue to gain share as we execute across our key strategic initiatives, even as we drive operational efficiency across our business.
-PayPal CEO Dan Schulman said
The company said ongoing cost savings initiatives are expected to hit $900 million in the fiscal year 2022 and $1.3 billion in the fiscal year 2023.
PayPal said it is working with Elliott Investment Management on a "comprehensive evaluation of capital return alternatives."
What's Next: A goal to expand operating margins is a focus for fiscal 2023.
Third-quarter revenue is expected to come in at $6.8 billion, up 10% year-over-year. Earnings per share for the third quarter are guided at 94 cents to 96 cents.
The company sees full fiscal year 2022 revenue hitting $27.85 billion and total payment volume hitting $1.4 trillion, up 10% and 12% year-over-year, respectively.
Earnings per share are expected to come in a range of $3.87 to $3.97 for the full fiscal year.
PayPal is guiding for 10 million net new actives to be added in the full fiscal year.
We are focused on creating value for our shareholders and strengthening our position as a leading global digital payments platform.
-PayPal Interim CFO Gabrielle Rabinovitch said
PYPL Price Action: PayPal shares are up 14% to $101.72 in after-hours trading Tuesday.
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