PayPal Cuts Thousands of Jobs, Bets on AI and Lifts Profit Outlook
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Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. PayPal Holdings Inc. reported better-than-expected third-quarter earnings Tuesday, supported by improving margins, resilient consumer spending and cost reductions, although revenue fell short of Wall Street expectations. Following the results, the stock is trading nearly 2% lower. The payments company, which owns Venmo, reported revenue of $8.58 billion, up 2% from a year earlier but below the analyst consensus estimate of $8.71 billion. Adjusted earnings were $1.45 per share, beating expectations of $1.31. Don't Miss: A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge - and why Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast Total payment volume rose 6% year over year to $487.1 billion, while payment transactions increased 7% to 6.8 billion. Transactions per active account rose 6% to 60.8 on a trailing 12-month basis. Transaction margin dollars increased to $3.95 billion, exceeding the $3.89 billion consensus estimate, Bloomberg reported. Active accounts rose 0.6% from a year earlier to 440 million, an increase of 1.6 million from the previous quarter. Profitability remained under pressure. Operating margin narrowed 173 basis points to 16.3%, while adjusted operating margin was little changed at...
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