The San Jose, Calif.-based payments company delivered a net income of $620 million, or 50 cents per share.
Non-GAAP earnings were 55 cents per share on revenue of $3.71 billion, up 24 percent year over year. Wall Street was looking for earnings of 52 cents per share on revenue of $3.63 billion.
Elsewhere on the balance sheet, the company says it grew its active account base by 8.7 million during Q4, ending with 227 million active customer accounts. On the merchant side, PayPal ended the quarter with 18 million active merchant accounts.
PayPal says it processed $131 billion in total payment volume during the quarter. Breaking the numbers down further, PayPal says it processed roughly 33.6 payment transactions for each active account.
PayPal's social payments platform Venmo processed $10.4 billion of TPV, up 86 percent over the same period last year. The company said P2P payments volume increased 50 percent to $27 billion, and represented approximately 20 percent of TPV. Mobile payments were also strong, as the company said it processed approximately $48 billion in mobile payment volume during the quarter, representing growth of around 53 percent year over year.
PayPal CEO Dan Schulman said PayPal had a "transformative" year in 2017, bolstered by growth in new customer accounts and its push toward an open platform architecture.
"I am very pleased to announce that PayPal and eBay have signed a term sheet to make PayPal available, as a way to pay on eBay, through July 2023," he added. "We enter 2018 with strong momentum supporting an increasingly differentiated and expansive value proposition, and a focused commitment to deliver increasing value to our customers and shareholders."
In terms of outlook, PayPal expects Q1 revenue in the range of $3.58 billion to $3.63 billion, with earnings between 52 cents and 54 cents a share. Analysts are expecting revenue of $3.55 billion with earnings of 54 cents a share.