PayPal Holdings Inc (NASDAQ:PYPL, ETR:2PP)’s revenues increased 9% to $7.7 billion in the first quarter compared to the same period in the previous year.
The global online payments processor's statutory earnings per share (EPS) rose by 18% to $0.83, while adjusted EPS increased by 27% to $1.08.
The latter was impacted by changes in its non-GAAP calculation methodology that now includes the impact of stock-based compensation and related employer payroll taxes.
CEO Alex Chriss called it “a solid set of results in Q1 and I’m encouraged by the progress the team is making against PayPal’s go-forward strategy and in strengthening our foundation”.
He added: “2024 remains a transition year and we are focused on execution – driving our key strategic initiatives, realizing cost savings, and reinvesting appropriately to position the company for consistent, high-quality profitable growth in the future."
Looking forward, PayPal anticipates a 6.5% to 7% revenue growth on a currency-neutral basis for the second quarter and expects adjusted EPS to increase by a low double-digit percentage year on year.
Shares were up 6.5% in pre-market trades, though they remain a mere 25% of their all-time high penned in July 2021.
The stock is still reeling from a bruising annual earnings call in early 2022 which saw the group retrain its focus on sustainable growth rather than a temporary push to accumulate new users.