PayPal Holdings Inc (NYSE: PYPL) reported its third-quarter 2021 results on November 8. According to the results, the company missed its estimates. Its project revenues were between $6.15- $6.25 billion, with 14% of the current spot rate.
According to Zacks analyst, the company’s product portfolio, including Venmo, PayPal would show in the third-quarter results. It was to have increased revenue from the surge in online transactions brought by the pandemic. The new active accounts in the third quarter were also supposed to accelerate the growth of the company.
PayPal’s Q3 earnings report
PayPal’s third-quarter result shined a light on the payments volume and compared to the consensus at $310 billion, which was up 26% above last year but below the $313.7 billion anticipated. Most assume that this was brought by the platform’s mother company, EBay Inc., shifting away from the company’s payments section.
PayPal’s CEO, Dan Schulman, defended the company’s performance and stated that the strength of PayPal’s ubiquity and two-sided platform in the core markets had set it up to grow at scale, expand its work with existing merchants, and attract new partners. The CEO added that the company was thrilled to team up with Amazon to allow their customers in the U.S. to pay with Venmo checkout.
Quoting the CEO’s sentiments, it is clear that the company expects the deal with Amazon.com, Inc. (NASDAQ: AMZN) to bring in good results in 2022 when the feature is available.
PayPal inks lucrative deal with Amazon.com to pay with Venmo.
The platform agreed with Amazon.com to allow Venmo, PayPal’s wallet in the U.S, to be admitted in the giant’s e-commerce website and mobile App from the year, beginning from next June.
Outshining the third-quarter results, the deal seems to be a stepping stone for the platform since its parent company shifted away from its payments. Its announcement during the period was that it had no plan to acquire Pinterest Inc (NYSE: PINS). The report ended speculation that the company was involved in a $45 billion deal with Pinterest.
However, most critics argue that with Pinterest’s scrap boking and visual search features, PayPal would have gained more data about the services Pinterest offers its consumers.