PayPal Holdings, Inc., the global technology platform and payments leader, announced the results for the first quarter ending March 31, 2016. According to the findings of PayPal's first quarter, the company gained market share, expanded its customer base, deepened engagement with merchants and consumers and delivered on its financial commitments.
Here are the key financial highlights of PayPal's results:
1. The company showed a revenue of $2.544 billion with non-GAAP earnings per share of $0.37, rising 19% and 28% respectively from last year findings.
2. Around 4.5 million active customers were added to its service, accounting to a total of 184 million customers by the end of the quarter.
3. In the first quarter, the company processed 1.4 billion payment transactions, which translates to 28 payment transactions per active account—an increase from 25 transactions per active account in the same period last year.
4. The total payments volume (TVP) accounted to $81 billion for the first quarter, denoting a growth of 31%. PayPal processed $21 billion in mobile payments volume, which is up by 54%, representing 26% of TPV for the quarter.
PayPal added powerful new merchants to the platform, ending the quarter with more than 14 million active merchant accounts. The list of leading brands choosing PayPal now includes Air France, Crate and Barrel, Fresh Direct, Panera Bread, Sephora and Woolworths in Australia. PayPal extended its partnership with Alibaba Wholesale during the quarter to include new countries and additional merchants.
5. New Innovative products:
Venmo: PayPal continues to roll out the Pay with Venmo pilot. Early customer feedback has validated the demand for Venmo as a way to pay in apps that millennial use, and PayPal plans to make the product more available to merchants and consumers later this year. The company’s social platform processed $3.2 billion of TPV, up 154% year-over-year.
Xoom: Xoom has expanded its services to 11 more countries, with two additional countries coming soon. The 13 new countries will include markets like Haiti, Nigeria and Slovakia. Xoom also announced integration with M-Pesa in Kenya.
One Touch: PayPal expanded its One Touch product to an additional 121 markets, making it available in 144 markets. One Touch is one of the most rapidly adopted products launched by PayPal, with approximately 21 million consumers having opted-in globally and over 1 million merchants having enabled One Touch. Launched by PayPal at the beginning of 2015, One Touch has seen significant growth and the adoption of the new checkout experience.
The company launched PayPal Commerce, a set of contextual commerce tools (which are currently in beta) that allows merchants to securely sell across email, social shares, blogs, articles, ads, in-page, in-app and anywhere consumers are online or on their mobile devices.
“Our first quarter results continue to demonstrate the power of our global payments platform to attract and engage consumers, increasing our global scale and in turn, attracting new merchants and partners to PayPal,” said Dan Schulman, President and CEO of PayPal, in a statement. “Our focus on payments and ability to innovate for merchants and consumers continues to differentiate PayPal and drive our growth in a dynamic and competitive environment.”
“This was our strongest quarter for revenue growth in the last five quarters. As I mentioned, we ended the quarter with 184 million active accounts, demonstrating another strong quarter of customer acquisition. All of you know by now that our long-term aspiration is to position PayPal as an everyday part of our customers' financial lives. And increasing the level of customer engagement is one of our primary measures of success in that goal. Customer engagement was driven by significant enhancements to our value proposition, and by the debut of PayPal's first Super Bowl ad, which drove significant increases in the perception of PayPal in the weeks that followed the commercial's first airing,” added Dan.