What happened
Actions of PayPal (NASDAQ: PYPL) rose 7% on Thursday, following the release of the excellent results for the fourth quarter of the digital payment leader.
And
PayPal added 16 million new active net accounts during the quarter, bringing its total customer count to 377 million. This rapid increase in active users helped fuel a 39% year-over-year increase in total payment volume, to $ 277 billion, and a 23% jump in revenue, to $ 6.1 billion.
Investors applauded PayPal’s strong performance in the fourth quarter. Image source: Getty Images.
PayPal’s profit growth was also impressive. Adjusted operating revenue and earnings per share for the fintech giant increased 29%, to $ 1.5 billion and $ 1.08, respectively.
“PayPal performed record-breaking in 2020 as companies of all sizes scanned themselves in the wake of the pandemic,” said CEO Dan Schulman in a press release.
What now
PayPal expects fiscal year 2021 to be another year of rapid expansion. The company’s forecast is to win 50 million new active accounts. Management, for its part, sees revenue growing 19%, to about $ 25.5 billion, and adjusted earnings per share growing approximately 17%, to $ 4.54.
With COVID-19 accelerating the growth of e-commerce worldwide, PayPal’s digital payment solutions are likely to remain in high demand for years to come.