PayPal reports solid Q3, active user base reaches 218 million

The company says it grew its active account base by 8.2 million during Q3.

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PayPal reported solid third quarter earnings and revenue Thursday after the bell.

The San Jose, Calif.-based payments company delivered a net income of $380 million, or 31 cents per share.

Non-GAAP earnings were 46 cents per share on revenue of $3.2 billion, up 21 percent year over year. Wall Street was looking for earnings of 43 cents per share on revenue of $3.18 billion.

Elsewhere on the balance sheet, the company says it grew its active account base by 8.2 million during Q3, ending with 218 million active customer accounts. On the merchant side, PayPal ended the quarter with 17 million active merchant accounts.

PayPal says it processed $114 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed 1.9 billion payment transactions, which is equal to roughly 33 payment transactions for each active account.

PayPal's social payments platform Venmo processed $9 billion of TPV, up 93 percent over the same period last year. The company said P2P payments volume increased 47 percent to $24 billion, and represented approximately 21 percent of TPV.

Venmo is the darling of PayPal's product portfolio, and rightly so considering its growth rate. The company announced earlier this week Venmo users will be able to use their app balance or linked cards and bank accounts anywhere PayPal is accepted in the US via the mobile web.

PayPal CEO Dan Schulman said the quarter was one of the company's strongest since spinning off of ebay into an independent company.

"In addition to our solid financial performance, we also reported record customer growth with the addition of 8.2 million net new actives," he said in prepared remarks. "As the world rapidly accelerates to digital payments, we have a tremendous opportunity in front of us."

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