PayPal's parent eBay announced fourth quarter financial results this afternoon. For the first time, eBay's payments revenues (including PayPal) reported full year revenues just a bit over $1 billion ($1,028.4 million).
The following highlights regarding PayPal's fourth quarter financial performance were included in eBay's results:PayPal's results don't include the recently acquired (from VeriSign) payment gateway business.
- Payments net revenues grew to $297.7 million, an increase of 48 percent compared to the same quarter last year and up 23 percent compared to the prior calendar quarter.
- PayPal's user accounts grew to 96.2 million accounts, up 51 percent year over year. Active accounts were 28.1 million, up 39 percent year over year.
- Total gross payment volume handled by PayPal grew to $8.1 billion, up 45 percent year over year.
- Total number of PayPal payments grew to 139.7 million, up 40 percent year over year. 69 percent of PayPal's payments were eBay-related compared to 71% last year.
- PayPal revenues represented 3.67% percent of gross payment volume, up 10 basis points from 3.57% last year.
- PayPal expenses included a transaction processing expense rate of 1.09%, down 18 basis points from 1.27% year over year. PayPal's expenses include the funding costs associated with card payments use to make payments via PayPal.
- PayPal losses were 33 basis points, up slightly from 31 basis points last year and 24 basis points in the prior calendar quarter.