Shares of PayPal Holdings (PYPL) are up 9% after the online payments company announced better-than-expected second-quarter financial results and raised its forward guidance.
The Silicon Valley-based company reported earnings per share (EPS) of $1.19 U.S., which beat Wall Street’s forecast of $0.99 U.S., according to data from FactSet.
The company’s Q2 revenue of $7.90 billion U.S. topped the $7.80 billion U.S. that was estimated on Wall Street.
Additionally, PayPal said that its total payment volumes rose 11% to $416.80 billion U.S. during the quarter, while transaction dollars increased 8% to $3.60 billion U.S.
The strong financial results come after PayPal introduced several payment innovations earlier this year to attract more users and boost its business.
Those innovations have included a faster checkout experience for both regular users and guests, and smart receipts that give users A.I.-generated recommendations from merchants to keep them engaged and coming back to the platform.
With nearly 400 million consumer accounts and 35 million merchant accounts, PayPal handles about a quarter (25%) of the world’s e-commerce transactions each year.
In terms of guidance, PayPal said that for the current third quarter, it expects mid-single-digit revenue growth and high-single-digit earnings growth.
Before today (July 30), PayPal’s stock had declined 22% over the last 12 months and was trading at $58.94 U.S. per share.
