PayPal gains after the third quarter are beaten as Venmo approaches the "tipping point"

Shares of PayPal Holdings (PYPL) surged in pre-market trading on Friday, after the online payment group reported stronger than expected third quarter results, with its active customer base exceeding $ 250 million and growth from his platform Venmo continuing to impress.

PayPal said non-GAAP earnings for the three months ending in September had increased 26% over the same period last year, reaching 58 cents per share, outperforming expectations by 54 cents per share while revenues jumped 13% to $ 3.68 billion. Total payment volumes increased 24 percent over the previous year to just over $ 143 billion, while the group added 9.1 million new customers, bringing its active base to $ 254 million. . Payments on Venmo, its youth-oriented payment application, jumped 78% to $ 17 billion, as more and more new users make payments on the system, and CEO Dan Schulman said that monetization touched a "critical point".

"It sounds repetitive, but we do not take it for granted – for three quarters in a row, we've had a record of new active listings in Venmo every quarter," Schulman told a conference call last Friday. "So, not only do you see Venmo grow fast enough, but the percentage of people using the monetizable event is also increasing very rapidly."

"So, you combine all these things together, you can see why we are rather satisfied with the current momentum," he added.

Action Alerts Plus, which owns PayPal shares, recorded a 6.7% increase in pre-market trading on Friday, indicating an opening price of $ 82.80 each, which would have the effect of extending the stock gain since 11% and valuing the action of San Jose, California. group established at just under $ 98 billion.

Eric Jhonsa, of TheStreet, said that PayPal – which has a long tradition of careful driving – has reported 17% growth in revenue for Forex, neutral in 2019, and EPS growth of around 20% .

"The revenue growth outlook compares favorably to the consensus before earnings for a 16% dollar growth, especially given the recent strengthening of the dollar, while the EPS outlook is slightly lower than consensus for a 21% growth. %, "wrote Jhonsa.