PayPal Holdings Inc (NASDAQ:PYPL, ETR:2PP) shares fell over 6% in pre-market trading on Tuesday after results showed third-quarter earnings topped expectations but revenue underwhelmed.
Per-share adjusted earnings came in at $1.20 for the three months to September, PayPal said on Tuesday, against LSEG-compiled consensus estimates of $1.07.
Revenue increased by 6% to $7.85 billion but undershot expectations for $7.89 billion.
Guidance was also laid out for revenue to climb by low single digits over the fourth quarter, against expectations for a 5.4% uptick to $8.46 billion.
Chief executive Alex Chriss noted the third quarter had been “strong” and “highly productive”.
“We are making solid progress in our transformation as we bring new innovations to market, forge important partnerships with leading commerce players, and drive awareness and engagement through new marketing campaigns,” Chriss said.
Total payment volumes climbed by 9% to $422.6 billion, PayPal added, while free cash flow increased 31% to $1.4 billion and debt sat at $16.2 billion as of September.
The results come a year after Chriss took the helm against a backdrop of a declining rate take for PayPal, with the figure falling further to 1.86% from 1.91% in the third quarter.
Shares fell by 6.4% in pre-market trading, following a year-to-date gain of 36%.