PayPal share price drops on third quarter results
PayPal's share price dropped by over six per cent in after hours trading after the company reported its first results since splitting from eBay.
The online payments firm posted a 15 per cent increase in revenue during the three months to 30 September, up to $2.3bn (£1.5bn) from $1.98bn in the same period of last year.
Total payment volume was up by 20 per cent, growing from $58.2bn in the third quarter of 2014 to $69.7bn.
The group also said it generated $652m of operating cash flow and $519m of free cash flow during the third quarter of 2015.
“PayPal is entirely focused on digital payments and transforming money for people around the world. This clear focus and our strong value proposition allowed us to deliver strong financial results in the third quarter,” said Dan Schulman, president and chief executive of PayPal.
“We are operating in a time when change is sweeping through the financial services industry driven by the rise of mobile technology and the acceleration of money becoming digital. These two massive trends play directly to our strengths and we are leveraging this transformation to extend and accelerate our lead.”
PayPal was valued at around $50bn on its first day of trading after spinning off from eBay in July.