PayPal delivered strong first quarter financial results and is raising its 2021 guidance for total payment volume, revenue and net new actives. The company also reported another quarter of solid user growth, adding 14.5 million net new active accounts during Q1 to bring its total active accounts to 392 million.
Looking at the numbers, PayPal reported a net income of $1.2 billion, or 92 cents per share. Non-GAAP earnings were $1.22 per share on revenue of $6.03 billion, up 29% year over year. Wall Street was looking for earnings of $1.01 per share on revenue of $5.9 billion.
PayPal says it processed $285 billion in total payment volume during the quarter, the highest TPV growth in its history at 50% year over year. While PayPal typically experience a sequential decline in volumes from Q4 to Q1, the company saw its volume grew 3% quarter-over- quarter.
Breaking the numbers down further, PayPal says it processed 4.4 billion payment transactions, or roughly 42.2 payment transactions per active account.
Meanwhile, PayPal said its social payments platform Venmo processed more than $51 billion of TPV. That marks an increase of 63% over the same period last year.
In terms of outlook, analysts are expecting second quarter revenue of $6.16 billion with earnings of $1.10 a share. PayPal responded with a revenue target of $6.25 billion, with earnings $1.12 a share. Shares of PayPal were up over 3% after hours.
For the year, PayPal expects TPV growth of ~30% on a spot and FXN basis, and net new active accounts between 52 million and 55million, up from previous expectations of 50 million. For fiscal revenue, PayPal expects to bring in $25.75 billion in 2021, with non-GAAP EPS of $4.70, above analyst consensus.