PayPal Q3 tops estimates, Venmo growth strong
PayPal delivered a solid third quarter earnings report Thursday after the bell.
The San Jose, Calif.-based payments company reported a net income of $323 million, or 27 cents per share.
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Non-GAAP earnings were 35 cents per share on revenue of $2.67 billion, up 21 percent year over year.
Wall Street was looking for earnings of 35 cents per share on revenue of $2.65 billion.
Looking at the rest of PayPal's numbers, the company says it grew its active account base to 192 million, an increase of 11 percent.
On the merchant side, PayPal ended the quarter with 15 million active merchant accounts. PayPal touted new merchant customers including Costco de Mexico, Yelp, and H&M in four European countries.
PayPal says it processed $87 billion in total payment volume (TPV) during the quarter, with $26 billion coming from mobile payments. Venmo, the company's social payments platform, processed $4.9 billion of TPV, up 131 percent year over year.
Breaking the numbers down further, PayPal says it processed 1.5 billion payment transactions, which is equal to 30 transactions for each active account.
"We are executing against our strategic plan with intensity and speed, and we are committed to seizing the opportunities in front of us ... We are further expanding the ubiquity and value of the PayPal brand and moving deliberately towards achieving our vision of becoming an everyday, essential financial service for people around the world," said PayPal CEO Dan Schulman in prepared remarks.
Outside of the balance sheet, PayPal said it rolled out its first integration with money transfer service Xoom, which it acquired last year. The integration allows Xoom users to send money to friends and family using their PayPal account.
PayPal also said that more than 32 million active consumer accounts and four million active merchant accounts have opted in to One Touch, PayPal's answer to the often laborious process of making purchases within apps and on websites. The system hinges on the interconnectedness of PayPal and its processing subsidiary Braintree.