After the market close today, the payments technology company reported earnings of 36 cents per share, beating analysts' forecasts for earnings of 35 cents a share. Revenue rose by 17% year-over-year to $2.6 billion, while analysts were expecting revenue of $2.5 billion.
PayPal processed $82 billion in total payment volume, which is a 29% increase on a constant-currency basis. The company also added 6.6 million users during the quarter.
Additionally, PayPal announced that it is starting a pilot program that allows Venmo users to make in-application purchases. Venmo, PayPal's social payments platform, processed $2.5 billion of total payment volume, which is a 174% increase year-over-year, PayPal said.
Though investors may worry about increased competition, PayPal is expected to succeed in the short term and long term, The Street's Jim Cramer and Jack Mohr said in a post on Action Alerts PLUS on Monday. Cramer and Mohr raised their investment in PayPal to about 2.97% of the charitable trust's portfolio.
"While we understand the concern over competition (and have outlined our views here), we have confidence in CEO Dan Schulman and see multiple levers for growth at PayPal moving forward," Cramer and Mohr said in the post.