PayPal quarterly revenue rises 16.6 percent

Markets Reuters

  • The PayPal logo is seen during an event at Terra Gallery in San Francisco, California May 21, 2015.  REUTERS/Robert Galbraith/File Photo

    The PayPal logo is seen during an event at Terra Gallery in San Francisco, California May 21, 2015. REUTERS/Robert Galbraith/File Photo (Copyright Reuters 2017)

  • The PayPal logo is seen during an event at Terra Gallery in San Francisco, California May 21, 2015.  REUTERS/Robert Galbraith/File Photo

    The PayPal logo is seen during an event at Terra Gallery in San Francisco, California May 21, 2015. REUTERS/Robert Galbraith/File Photo (Copyright Reuters 2017)

PayPal Holdings Inc reported a 16.6 percent rise in quarterly revenue, in line with analysts' estimates, helped by growth in customer and merchant accounts on its payments platform.

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Shares of the payments processor were little changed after the bell on Thursday.

The San Jose, California-based company's active customer accounts rose 10 percent to 197 million, beating research firm FactSet StreetAccount's estimate of 196.5 million.

Total payments volume surged 21.9 percent to $99.35 billion.

The company said it expects first-quarter revenue to be $2.9 billion-$2.95 billion. Analysts on an average were expecting $2.95 billion, according to Thomson Reuters I/B/E/S.

PayPal has witnessed rapid growth in a number of services such as person-to-person payment app Venmo and Braintree, a payment gateway used by larger merchants, since it was spun off from eBay Inc in 2015.

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Payment volumes at Venmo, whose customers are mainly millennials, surged 126 percent to $5.6 billion in the fourth quarter.

Net income rose to $390 million, or 32 cents per share, in the fourth quarter ended Dec. 31, from $367 million, or 30 cents per share, a year earlier. On an adjusted basis, the company earned 42 cents per share.

Revenue rose to $2.98 billion from $2.56 billion.

Analysts were expecting 42 cents per share on revenue of $2.98 billion.

(Reporting by Sruthi Shankar and Laharee Chatterjee in Bengaluru; Editing by Shounak Dasgupta)