PayPal delivered strong third quarter financial results, reporting a net revenue of $6.18 billion. The company also reported another quarter of solid user growth, adding 13.3 million net new active accounts during Q3 to bring its total active accounts to 416 million.
Looking at the numbers, PayPal reported a net income of $1.47 billion. Non-GAAP earnings were $1.11 per share. Wall Street was looking for earnings of $1.08 per share on revenue of $6.24 billion.
PayPal says it processed $310 billion in total payment volume during the quarter, a TPV growth of 26% year over year. The company added that it had 4.9 billion payment transactions in Q3. There were about 44 payment transactions per active account in Q3.
Meanwhile, PayPal said its social payments platform called Venmo processed approximately $60 billion in TPV, growing 36%.
"Our third quarter results show solid growth on top of a record year. The strength of PayPal's two-sided platform and ubiquity in our core markets has set us up to grow at scale, expand our work with existing merchants and attract new partners," PayPal CEO Dan Schulman said.
"We're thrilled that we are teaming up with Amazon to enable customers in the U.S. to pay with Venmo at checkout."
In terms of outlook, PayPal is expecting fourth quarter net revenue to be in the range of $6.85 billion and $6.95 billion. PayPal said it expects GAAP earnings per diluted share to be approximately $0.79 and for non-GAAP earnings per diluted share to be approximately $1.12. Shares of PayPal were up nearly 4% after hours.
For the year, PayPal expects TPV growth of approximately 34%, and net new active accounts to be around 55 million. For fiscal revenue, PayPal expects to bring between $25.3 billion and $25.4 billion in 2021, with non-GAAP EPS of $4.60.