PayPal on Wednesday reported its strongest ever quarter driven by an uptick in new users and payments flowing through its platform. During the entire second quarter, PayPal said people were using its payments service at levels equal to the five days between Thanksgiving and Cyber Monday.
The company said it added 21.3 million net new active accounts during the second quarter, bringing its total active accounts to 346 million. This is the largest quarterly increase in active accounts in the company's history.
Looking at the numbers, PayPal reported a net income of $1.5 billion, or $1.29 per share. Non-GAAP earnings were $1.07 per share on revenue of $5.26 billion, up 25% year over year. Wall Street was looking for earnings of 88 cents per share on revenue of $4.99 billion.
PayPal says it processed $222 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed 3.7 billion payment transactions, or roughly 39.2 payment transactions per active account.
Meanwhile, PayPal said its social payments platform Venmo also had its best quarter ever, processing more than $37 billion of TPV. That marks an increase of 52% over the same period last year. Venmo now has more than 60 million active accounts.
In terms of outlook, analysts are expecting third quarter revenue of $5.06 billion with earnings of 86 cents a share. PayPal responded with a revenue target of $5.48 billion, with earnings 95 cents a share. Shares of PayPal were up over 2% after hours.