PayPal Holdings Inc (NASDAQ:PYPL) reported a lower-than-expected quarterly revenue as the payment processing company, spun off from eBay Inc (NASDAQ:EBAY), was hurt by a strong dollar.
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Shares of PayPal, which listed for the second time on the Nasdaq in July, fell about 2.5% in extended trading on Wednesday.
PayPal's net revenue rose about 14% to $2.26 billion in the third quarter, nearly half of which came from markets outside the United States. Excluding the impact of a strong dollar, revenue rose 19%.
"I think that the foreign exchange impact has been larger than expected," Susquehanna Financial Group analyst James Friedman said.
PayPal said its active accounts rose to 173 million in the quarter ended Sept. 30 from 157 million, a year earlier. Total payment volume rose 20% to $69.74 billion.
The company said its international total payment volume growth was hurt somewhat by weakness in China and Europe.
PayPal's net income rose to $301 million, or 25 cents per share, from $234 million, or 19 cents per share, a year earlier.
Excluding items, PayPal earned 31 cents per share.
Analysts on average had expected a profit of 29 cents per share and revenue of $2.27 billion, according to Thomson Reuters I/B/E/S.
PayPal shares were trading at $34.60 after the bell.
(Reporting by Arathy S Nair in Bengaluru; Editing by Kirti Pandey)