PayPal, the payments company, posted first quarter earnings results after the bell on Wednesday. After surpassing analyst estimates with an adjusted 44 cents per share, compared to the 41 cents that many were predicting, shares rose 7% in initial after-hours trading.
Revenue was also slightly better than expected, coming in at $2.975 billion, when compared to the $2.94 billion that analysts surveyed by FactSet were expecting. That’s growth of 17% year-over-year.
“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,” said Dan Schulman, President and CEO of PayPal, in a statement.
Some investors had been wondering what effect the recent credit card partnerships will have on margins. As more of their customers shift to credit cards, it will reduce margins. But the credit card accessibility can also add new customers.
PayPal says they added 6 million new accounts in the quarter, bringing the total to 203 million active users.
PayPal separated from eBay in July 2015, and is the larger of the two companies with a market cap of almost $54 billion. Shares are up almost 13% this year and closed Wednesday at $44.41.
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