PayPal (PYPL, Financials) shares fell by as much as 7% on Tuesday after the company issued softer-than-expected guidance for the fourth quarter.
PayPal anticipates "low single-digit growth" in revenue for the fourth quarter, which is less than the 5.4% rise experts had predicted, or $8.46 billion.
Slightly down from $1.02 billion, or 99 cents per share, a year earlier, PayPal recorded net income of $1.01 billion. Reaching $7.85 billion, income during the July–September quarter fell short of the predicted $7.89 billion according to experts.
PayPal's overall payment volume rose 9% year-over-year to $422.6 billion in its first earnings report under CEO Alex Chriss, somewhat above the projected figure. Operating margin exceeded StreetAccount projection of 17.4% by coming in at 18.8%.
From 1.91% a year earlier, PayPal's take rate declined to 1.86%; its transaction margin rose to 46.6% from 45.4%. Exceeding the average forecast of 430.5 million, the corporation also announced total active accounts of 424 million, up 1% from a year earlier.
Chriss, who has concentrated on increasing profitability, highlighted the significance of new product introductions such as PayPal Everywhere, which provides cash-back incentives, and Fastlane, a one-click payment option. These efforts are a component of Venmo's goal to promote branded checkout growth and monetization, as well as the company's 8% increase in payment volume.
