PayPal (Nasdaq: PYPL) recently reported its third-quarter results that surpassed all market expectations as it continues to grow rapidly through strategic tie-ups and the launch of newer products.

PayPal’s Financials

PayPal’s revenues of $3.68 billion, grew 14% over the year and were ahead of the Street’s forecast of $3.66 billion. Non-GAAP EPS of $0.58 up 26% y-o-y and $0.04 better than the market’s estimate for the quarter.

By the nature of services, PayPal’s transaction revenues grew 17% to $3.34 billion, accounting for nearly 91% of its quarter’s revenues. Other value-added services accounted for the remaining 9% of the revenues and fell 11% over the year to $340 million. The decline in the segment was attributed to the sale of its US consumer credit receivables portfolio to Synchrony for $7.6 billion.

PayPal’s revenues from the United States grew 13% over the year to $1.96 billion, and international revenues grew 15% to $1.72 billion.

Among key operating metrics, PayPal recorded a 15% growth in total active accounts. It added 9.1 million net new active accounts during the quarter, taking the total number of active accounts to 254 million, ahead of the market’s forecast of 251 million. The total number of payment transactions grew 27% over the year to 2.46 billion, which was also ahead of the Street’s estimate of 2.43 billion. PayPal’s payment transactions per active user grew 10% to 36.5 million. Total Payment Volume grew 24% to $143 billion in the third quarter with Venmo accounting for $17 billion of the figure during the quarter. During the quarter, PayPal processed $57 billion in mobile payment volume, recording a 45% growth over the year.

For the current quarter, PayPal expects revenues of $4.19-$4.27 billion, compared with the market’s forecast of $4.22 billion. It forecast non-GAAP EPS of $0.65-$0.67 for the quarter, compared with the Street’s estimate of $0.65. PayPal expects to end the year with revenues of $15.42-$15.5 billion with an EPS of $2.38-$2.40. The Street was looking for revenues of $15.43 billion with an EPS of $2.35 for the year.