PayPal reports solid third-quarter results, with total payment volume growing 25%

PayPal reported third-quarter results today that were slightly ahead of analysts' expectations, driven by an increase in total payment volume.

The company's quarterly revenue grew 19% year-over-year to $4.38 billion. Its GAAP net income was 39 cents per share, or $462 million, a 7% year-over-year increase. On a non-GAAP basis, net income was 61 cents a share, a 5% increase.

These figures included a negative impact from strategic investments in MercadoLibre and Uber; without that, GAAP net income would have increased 48% to 54 cents per share, and non-GAAP net income would have rose 31% to 76 cents per share.

During the third quarter, PayPal added 9.8 million active accounts, increasing the total number by 16% to 295 million. Total payment volume (TPV) increased 25% to $179 billion. Venmo processed more than $27 billion in TPV during the quarter, an increase of 64%.

For its full-year results, PayPal said it expects earnings per share ranging from $3.06 to $3.08 per share, on revenue of $17.7 billion to $17.76 billion.

In September, PayPal announced it will acquire a 70% equity interest in GoPay (Guofubao). The deal is expected to close during the fourth quarter and will make PayPal the first foreign payments company licensed to provide online payment services in China, an important potential driver of future growth.