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PayPal had a good quarter as the number of users jumped. The company added over 2 million users in the quarter while its revenue was better than what Wall Street analysts were expecting. As a result, the company’s stock price jumped by over 2.77%.
PayPal and other fintech companies have been under pressure in the past few months. Most of them have seen their share prices crash by more than 50% from their highest level in 2021. Investors have been worried about the firm’s growth. PayPal’s market cap has crashed from over $300 billion to about $95 billion.
In its statement, PayPal said that its revenue rose by 7% to $6.48 billion in the first quarter. Its US revenue jumped by 20% while its international business declined by 5%. Venmo’s volume rose by 12% to $58 billion. This happened because of the app’s integration with Amazon, the biggest e-commerce company.
PayPal’s management is unsure about how the full year will go on. They expect that the company will add over 10 million new active accounts. It now has over 429 million users, making it one of the biggest company’s in the indusy. The firm also expects that its free cash flow will be about $5 billion this year.
Further, the management decided to withdraw their medium-term outlook because of the ongoing risks in the market. The management said:
“We continue to have many opportunities in front of us, given the scale of our 2-sided network and the ongoing growth in digitized payments. We will advance our leadership in checkout, and continue our work to become the preeminent digital wallet.”
PayPal’s earnings came a day after Visa also reported strong results. The company said that its revenue grew as the travel industry rebounded.
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