By Dean Seal
PayPal logged higher earnings and revenue in the first quarter with a higher active account tally and an increase in the total volume of payments it processed.
The digital payments company posted a profit of $1.29 billion, or $1.29 a share, compared with $888 million, or 83 cents a share, in the same period a year earlier.
Stripping out one-off items, adjusted earnings were $1.33 a share. Analysts polled by FactSet had been expecting $1.16 a share.
Revenue rose 1% to $7.79 billion, below analyst projections for $7.85 billion, according to FactSet.
Total payment volume was up 3% during the quarter while payment transactions decreased 7%.
Total active accounts were up 2% and transactions per account on a trailing 12-month basis ticked down 1%.
PayPal has been focusing on more profitable growth from its branded checkout options, which produce higher transaction margin dollars, a measure of revenue minus transaction expenses, transaction losses and credit losses.
Transaction margin dollars in the first quarter were up 7% at $3.7 billion, or 8% when excluding last year's leap day.
Chief Executive Alex Chriss said this is the company's fifth consecutive quarter of profitable growth, with progress across branded checkout, its payment service provider business, omnichannel payments, and its Venmo app.
Despite solid first-quarter results, PayPal is maintaining its full-year guidance to account for higher uncertainty in the macroeconomic environment.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
April 29, 2025 07:12 ET (11:12 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.