PayPal delivered third quarter financial results on Wednesday that topped market estimates. The San Jose, Calif.-based payments company reported a net income of $462 million, or 39 cents per share. Non-GAAP earnings were 61 cents per share on revenue of $4.38 billion. Wall Street was looking for earnings of 52 cents per share on revenue of $4.35 billion.
Elsewhere on the balance sheet, the company grew its active account base by 9.8 million during Q3, bringing its user total to 295 million, up 16%.
Meanwhile, PayPal says it processed $179 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed 3.1 billion payment transactions, or roughly 39.8 payment transactions for each active account. PayPal said Q3 was the first time ever it processed more than 1 billion transactions per month in a quarter.
PayPal's social payments platform Venmo processed more than $27 billion of TPV, up 64% over the same period last year. The company said P2P payments volume increased by 39% to $51 billion and represented approximately 28% of TPV.
In terms of outlook, analysts are expecting Q4 revenue of $4.94 billion with earnings of 81 cents a share. PayPal responded with Q4 revenue guidance in the range of $4.89 billion to $4.95 billion, with earnings between 81 cents and 83 cents a share.
For the year, PayPal said it expects revenue in the range of $17.70 billion to $17.76 billion with non-GAAP EPS between $3.06 and $3.08. Wall Street is expecting $17.72 billion in revenue and EPS of $2.96.
"This quarter we also announced that we will be the first foreign payments platform to be licensed to provide online payment services in China, a very significant development that has the potential to meaningfully expand our addressable market," said PayPal CEO Dan Schulman.
PayPal's shares rose more than 8% after hours.