PayPal on Monday delivered strong third quarter financial results driven by an influx of new customers and a record number of payment transactions. The company said it added 15.2 million net new active accounts during the third quarter, bringing its total active accounts to 361 million.
Meanwhile, PayPal said it processed a record-setting $247 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed 4 billion payment transactions, or roughly 40.1 payment transactions per active account. The company is now on a run rate of approximately $1 trillion dollars in payment volume.
Looking at the numbers, PayPal reported net income of $1.02 billion, or 86 cents a share. Non-GAAP earnings were $1.07 per share on revenue of $5.46 billion, up 25% year over year. Wall Street was looking for earnings of 94 cents per share on revenue of $5.43 billion.
PayPal said its social payments platform Venmo also had its best quarter ever, processing more than $44 billion of TPV. That marks an increase of 61% over the same period last year.
PayPal said it's on track to end the fiscal year with 70 million net new active accounts. The company also said there were 1.5 million new merchant accounts created over the quarter, more than double its pre-COVID rate.
In terms of outlook, analysts are expecting fourth quarter revenue of $6.11 billion with earnings of $1.06 a share. PayPal expects low-to-mid 30% growth in total payment volume and 20% to 25% revenue growth, along with 17% to 18% growth in adjusted EPS. Shares of PayPal were down over 5% after hours.
"PayPal's third quarter was one of the strongest in our history," said PayPal CEO Dan Schulman. "Our growth reinforces the essential role we play in our customers' daily lives during this pandemic. Going forward, we are investing to create the most compelling and expansive digital wallet that embraces all forms of digital currencies and payments, and operates seamlessly in both the physical and online worlds."