PayPal's second-quarter revenue came in below analysts' estimates, causing shares to fall after hours.
Revenue for the quarter climbed to $6.24 billion, but missed analysts' expectations of $6.27 billion. One challenge — long expected — was PayPal's split from eBay, with eBay volume declining 43%.
Still, PayPal generated $311 billion in total payment volume in the second quarter, up 36% year-over-year, fueled by growth in its Venmo app.
Venmo processed $58 billion of PayPal's total payment volume, up 58% year-over-year. In the first quarter of this year, Venmo generated $51 billion in total payment volume, growing 63% year-over-year. While Venmo has been smaller than rival Square's Cash App, it has been growing quickly.