PayPal 2Q 2017 earnings were released after closing bell tonight. The company posted adjusted earnings of 46 cents per share on $3.14 billion in revenue, compared to the consensus estimates of 43 cents per share in adjusted earnings on $3.09 billion in revenue. In last year’s second quarter, PayPal reported non-GAAP earnings of 26 cents per share on $2.65 billion in revenue.

PayPal 2Q 2017 earnings
CopyrightFreePictures / Pixabay

PayPal 2Q 2017 earnings

On a GAAP basis, PayPal 2Q 2017 earnings rose 27% year over year to 34 cents per share, versus the year-ago quarter’s 27 cents per share.

The digital payments processor added 6.5 million active customer accounts during the quarter, with net new adds rising 80% year over year. It had 210 million active customer accounts at the end of the quarter, of which 17 million were merchant accounts. PayPal processed 1.8 billion payment transactions, marking a 23% year-over-year increase. It had an average of 32.3 payment transactions per active account on a trailing 12-month basis, which was a 10% increase. Total payment volume grew 23% to $106 billion.

“Our strong results reflect PayPal’s transformation from a single product to a platform company, from a vendor to a strategic partner to both merchants and ecosystem players, and from a checkout option to an increasingly more central way for consumers to manage and move their money,” PayPal President and Chief Executive Dan Schulman said in a statement.

PayPal boosts full-year outlook

PayPal also increased its guidance for revenue and earnings for the full year and provided a third-quarter outlook. It now expects an 18% to 19% increase in revenue, bringing the total to between $12.775 billion and $12.875 billion. The company expects GAAP earnings of $1.32 to $1.36 per share for the full year and non-GAAP earnings of $1.80 to $1.84 per share.

For the third quarter, PayPal expects an 18% to 20% increase in revenues, bringing the total to between $3.14 billion and $3.19 billion. It projects GAAP earnings of 30 cents to 32 cents per share and non-GAAP earnings of 42 cents to 44 cents per share.

Following the PayPal 2Q 2017 earnings report, the company’s stock surged in after-hours trading, climbing by as much as 2.86% to $60.47.