Non-GAAP earnings were 44 cents per share on revenue of $2.975 billion, up 17 percent year-over-year.
Wall Street was looking for earnings of 41 cents per share on revenue of $2.94 billion.
Looking at the rest of PayPal's numbers, the company says it grew its active account base by six million during Q1, ending with 203 million active customer accounts. On the merchant side, PayPal ended the quarter with more than 16 million active merchant accounts.
One Touch, PayPal's answer to the often laborious process of making purchases within apps and on websites, finished the quarter with more than 53 million consumer accounts opted in.
PayPal says it processed $99 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed 1.7 billion payment transactions, which is equal to 32 payment transactions for each active account.
Venmo, the company's social payments platform, processed $6.8 billion of TPV, more than doubling its volume versus the same quarter a year ago.
"With another quarter of strong financial results, we continue to deliver on our vision to democratize financial services for our consumers and drive the global transition from cash to digital payments," said PayPal CEO Dan Schulman. "We are deepening our merchant offerings and relationships, and expanding our network of strategic partnerships to make PayPal more available in new contexts and new markets."
PayPal raised its earnings guidance for the current quarter, and now expects non-GAAP EPS 41 cents and 43 cents, with revenue in the range of $3.05 to $3.1 billion. Wall Street wants to see an EPS of at least 42 cents on revenue of $3.07 billion.
PayPal's shares were up more than seven percent in late trading.