On Thursday, PayPal posted revenue and earnings for the third quarter that topped estimates on Wall Street, with an increase in payment volume for Venmo its payment app that is peer-to-peer.
Revenue for PayPal came in at $3.68 billion while analysts were forecasting $3.66 billion and earnings per share were 58 cents while analysts forecasted 54 cents.
PayPal shares rose by up to 7.5% during Thursday’s afterhours trading. The stock has increased 13% during 2018 and 8% year over year.
Revenue for the payment company increased by 14% during the third quarter, while its earnings increased by 26%.
Total payment volumes for Venmo increased by 78% during the quarter to approximately $17 billion. Investors had hoped Venmo would give them good news as it’s struggled to prove its worth as a moneymaker for the parent company.
CEO of PayPal Daniel Schulman said he was pleased with the overall strong momentum that surrounds Venmo. While it remains early, the monetization efforts of Venmo appear to be approaching a tipping point, added the CEO.
The total payment volume for PayPal jumped by 25% to over $143 billion during the quarter, which came up short of Wall Street expectations for $145 billion.
Growth in mobile payment contributed to 40% of the payment volume with a growth of 45% in mobile payment during the quarter. Its payment transactions soared by 27% to reach 2.5 billion for the quarter.
PayPal added a record number of accounts of 9.1 million during the quarter, which was up 15% for the previous quarter, closing the three-month period with over 254 million active users.
The payment company increased its earnings guidance for the fourth quarter to between 65 cents and 67 cents and raised its revenue guidance for the same quarter, with both in line with expectations by analysts.
It upped earnings guidance for the full year to $2.38 to $2.40 per share, which was above the expectations on Wall Street for $2.34 a share.
Prior to the Thursday earnings report, PayPal announced some new features and an expansion of its partnership it already has with American Express, which reported its earnings after the close of business on Thursday as well.
Customers of American Express are now able to send money by Venmo or PayPal from their mobile Amex app, pay bills for credit cards with existing balances on Venmo and use membership rewards points from Amex for PayPal purchases.