PayPal is enjoying a boost in its stock price post bell after delivering better than expected results for the first quarter of 2017.
They surpassed analyst estimates by earning $0.44 per share, compared to the $0.41 many expected. Net income at payPal was $384M, up 5% year on year. Revenues also increased, totalling $2.975bn. That’s up 17% on the $2.94bn from the same period last year. They’re also buying back shares: PayPal announced a $5bn share repurchase programme as part of their results.
PayPal chief Dan Schulman said: “With another quarter of strong financial results, we continue to deliver on our vision to democratize financial services for our consumers and drive the global transition from cash to digital payments.”
A big part of Paypal’s continuing success is the performance of its Braintree division. They handle payments Uber, Airbnb, Facebook Messenger and other big hitters and take a cut of these transactions. And don’t forget that PayPal also owns Venmo, the peer-to-peer payments platform very popular with young people.
It seems that PayPal is finally drawing clear of the eBay drag and starting to really see the benefits of independence. These are really decent results and it will be interesting to see where they head next time. But, most of all, it’s worth noting that the eBay aspect of PayPal is the least remarkable aspect of the business this time around.