PayPal reported third-quarter earnings and revenue that topped Wall Street estimates on Thursday, with a surge in payment volume for its peer-to-peer payment app Venmo.
Here's how the company did compared with what Wall Street expected:
- Earnings: 58 cents vs. 54 cents per share, forecast by Refinitiv.
- Revenue: $3.68 billion vs. $3.66 billion, forecast by Refinitiv.
Shares of PayPal rose as much as 7.5 percent in after-hours trading Thursday and were trading near $83. The stock is up 13 percent year to date and 8 percent year over year.
The payment company's revenue grew 14 percent in the third quarter to $3.68 billion, while earnings were up 26 percent.
Total payment volume for the peer-to-peer payment app Venmo rose 78 percent in the third quarter to roughly $17 billion. Investors had been hoping for good news on Venmo, which has struggled to prove itself as a moneymaker for its parent company.
"I'm especially pleased with the strong overall momentum surrounding Venmo," PayPal CEO Daniel Schulman said on a call with analysts Thursday. "While it is still early, our monetization efforts appear to be reaching a tipping point."
PayPal's total payment volume jumped 25 percent to $143 billion during the same time frame, short of Refinitiv analysts' expectations of $145 billion.
Mobile payment growth contributed to 40 percent of that payment volume, with 45 percent growth in mobile payment volume for the quarter. Its total payment transactions surged 27 percent to 2.5 billion total for the quarter.
The company added what it called a "record" 9.1 million accounts in the third quarter, up 15 percent from last quarter, closing the quarter with a total 254 million active accounts.