PYPL

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Investing.com — PayPal raised its full-year guidance after reporting Monday first-quarter results that topped expectations, driven by cost cuts and growth in e-commerce.

PayPal (NASDAQ:PYPL) fell 3% in after-hours trade following the report.

PayPal announced earnings per share of $1.17 on revenue of $7.04 billion. Analysts polled by Investing.com anticipated EPS of $1.10 on revenue of $6.98B.

The beat on the bottom line was driven by cost cuts and an increase in new accounts.

Active accounts grew 1% for the quarter year-on-year, bringing total active accounts to 433 million.

Total payment volume (TPV), a key measure of performance, rose 10%, to $354.5B.

For Q2, adjusted EPS was expected to grow 24% to 26% to $1.15 to $1.17 on revenue growth in a range of 6.5% to 7%.

Looking ahead, the company now expects to grow adjusted EPS by about 20% to $4.95; up from prior guidance of 18% growth to $4.87. 

The company attributed the boost to guidance to the “ongoing benefit from cost initiatives.”