Financial technology company PayPal (PYPL) has announced a 27% increase in its first-quarter profit as it reports financial results under a new structure that includes stock-based compensation.
Within the new structure, PayPal reported Q1 earnings per share of $1.08 U.S., an increase of 27% from a year ago. Revenue in Q1 rose 9% to $7.7 billion U.S.
Because of the new reporting standard, it is not accurate to compare PayPal’s results to analyst estimates that were made using the old accounting model.
PayPal said its financial results now include stock-based compensation and employer-related payroll taxes to help bolster accountability and transparency.
The company behind the popular Cash App used by merchants and self-employed people rose 14% to $403.9 billion U.S., while transaction margin dollars increased 4% to $3.5 billion U.S.
In terms of guidance, PayPal said that it expects revenue to rise by about 6.5% for all of this year and earnings per share to increase by a mid- to high-single-digit percentage.
Chief executive officer (CEO) Alex Chriss took over the top job at PayPal last September and has been leading a turnaround strategy at the company.
PayPal’s stock is up 5% on news of its latest financial results. Over the past 12 months, the company’s share price has decreased 11% to trade at $66.99 U.S. per share.
