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PayPal beats Q2 estimates

PayPal delivered revenue of $3.14 billion, up 18 percent year-over-year.

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PayPal reported second quarter earnings and revenue Wednesday after the bell.

The San Jose, Calif.-based payments company delivered a net income of $411 million, or 34 cents per share.

Non-GAAP earnings were 46 cents per share on revenue of $3.14 billion, up 18 percent year-over-year. Wall Street was looking for earnings of 43 cents per share on revenue of $3.09 billion.

Elsewhere on the balance sheet, the company says it grew its active account base by 6.5 million during Q2, ending with 210 million active customer accounts. On the merchant side, PayPal ended the quarter with 17 million active merchant accounts.

PayPal's One Touch product finished the quarter with more than 60 million consumer accounts opted in. The company's social payments platform Venmo processed $8 billion of TPV, up 103 percent over the same period last year.

PayPal says it processed $106 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed 1.8 billion payment transactions, which is equal to roughly 32 payment transactions for each active account.

PayPal announced today a deal with Bank of America that makes it easier to add BofA-issued cards to PayPal accounts. PayPal has similar partnerships with Discover, Visa and MasterCard, as well as deals with Citi, and FIS. The company also announced a partnership with Baidu that will allow Chinese consumers to pay with Baidu Wallet where PayPal is accepted.

"Our strong results reflect PayPal's transformation from a single product to a platform company, from a vendor to a strategic partner to both merchants and ecosystem players, and from a checkout option to an increasingly more central way for consumers to manage and move their money," said PayPal CEO Dan Schulman.

PayPal raised its earnings guidance for the fiscal year and now expects earnings between $1.80 and $1.84 per share, with revenue around $12.8 billion.

For the current quarter, PayPal expects non-GAAP EPS of 42 cents and 44 cents, with revenue in the range of $3.14 to $3.19 billion. Wall Street wants to see an EPS of at least 42 cents on revenue of $3.13 billion.