|PayPal Swings to 1st-Quarter Profit as Its Revenue More Than Triples |
Updated: Wednesday, April 17, 2002 05:49 PM ET
PayPal Inc., in its first reporting period as a public company, posted a first-quarter profit and more than tripled revenue from a year earlier on rapid growth of its Internet payment service.
After the close of regular trading, the Palo Alto, Calif., company reported net income of $1.2 million, or two cents a share, compared with a loss of $29.3 million, or $5.39 a share, a year earlier.
Using a nonstandard measure of earnings, which excludes noncash expenses related to stock-based compensation and amortization of intangibles, PayPal said it earned $4.3 million, or seven cents a share, better than the four cents a share consensus estimate compiled by Thomson Financial/First Call.
Revenue soared to $48.8 million from $14 million. The company said revenue for the entire year could range between $220 million and $230 million, with earnings, excluding noncash expenses, between 34 cents a share and 36 cents a share.
Shawn Milne, an analyst at Soundview Technology Group, said he was impressed to see PayPal grow quickly and profitably at the same time. Companies that do both "are hard to find these days," Mr. Milne said.
The dazzling growth of PayPal, which earns transaction fees on electronic payments between Internet auction users and others, helped the company make one of the year's most successful initial public offerings. PayPal debuted at a $13 a share offering price and recently saw its stock soar on reports it was in talks to be acquired by eBay Inc. People familiar with the matter confirmed that such talks occurred between the companies last week, but they were no longer active. EBay and PayPal spokespeople wouldn't comment on the matter.
PayPal shares rose $1.49, or 6.2%, to $25.38 in 4 p.m. trading on the Nasdaq Stock Market.