The PayPal application can be viewed on a mobile phone.

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PayPal stock fell as much as 8% in extended trading Wednesday after reporting weaker earnings for the second quarter than analysts expected.

Here’s how the company performed compared to expectations:

  • Earnings per share: $ 1.15, adjusted, up from $ 1.12 expected in a refinitive poll of analysts
  • Revenue: Expected $ 6.24 billion versus $ 6.27 billion

Second quarter net income declined 23% year over year to $ 1.18 billion, and the company added 11.4 million new net accounts, for a total of 403 million active accounts.

Sales were up 19% year over year for the quarter ended June 30, according to a statement. The pandemic led to an increase in online shopping and helped push payment volumes to record levels in 2020.

Total payment volume rose 40% to $ 311 billion, while the Venmo app, which has been supporting cryptocurrency services since April, recorded payment volume of 58% to $ 58 billion.

The mobile payments company made a big foray into cryptocurrency in the last year, allowing users in the United States to buy, sell, and check out cryptocurrencies.

With its network of 32 million retailers, PayPal’s crypto ambitions have positioned the company as a rival to Coinbase, the country’s most popular crypto exchange.

PayPal says eBay is leaving its platform, which is “holding back growth in the short term,” but says the move to eBay will be complete by the end of the third quarter.

In terms of guidance, PayPal expects adjusted earnings of $ 1.07 per share for the third quarter on revenue between $ 6.15 billion and $ 6.25 billion. Analysts polled by Refinitiv had expected adjusted earnings per share of $ 1.14 on sales of $ 6.44 billion.

Excluding the after-business movement, PayPal stock is up about 29% year-to-date, while the Nasdaq is up more than 14% over the same period.

Additional coverage from Kate Rooney.

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