PayPal reported better-than-expected results for the second quarter but saw slowing growth in transaction margin dollars, a key measure of profitability. The stock slipped more than 8% following the report.
Here's how the company did compared with Wall Street estimates, based on a survey of analysts by LSEG:
Earnings per share: $1.40 adjusted vs. $1.30 expected
$1.40 adjusted vs. $1.30 expected Revenue: $8.29 billion vs. $8.08 billion expected
Sales increased 5% from $7.89 billion a year earlier, as CEO Alex Chriss worked to roll off lower-margin revenue streams.
Transaction margin dollars rose 7% to $3.84 billion, marking the company's sixth straight quarter of growth.
Growth in that metric slowed sequentially, down from 8% in the first quarter when excluding a one-time benefit that boosted results earlier this year. Branded checkout volumes also slowed to 5%, compared with 6% in the first quarter when adjusted for Leap Day.
Total payment volume, an indication of how digital payments are faring in the broader economy, beat estimates, coming in at $443.6 billion, compared with the $433.6 billion analysts had projected, according to StreetAccount. The number of active accounts rose 2% to 438 million, versus expectations of 437.8 million.