EBAY eBay Inc

By Ezequiel Minaya 

PayPal Holdings Inc. posted better-than-expected results in its third report as a stand-alone company since parting ways with eBay Inc. last year, with transactions per active user account climbing.

Shares rose 3.7% to $41.48 in after-hours trading.

Now on its own, PayPal has one of the largest market values of any financial-technology company. The San Jose, Calif., firm now must work to show it can capture new users for its online and mobile payments service beyond eBay.

Though PayPal has been assured that roughly 80% of eBay's gross merchandise sales will be routed through the payments company, it is free to seek out agreements with new vendors.

On Wednesday, the company said it was continuing the rollout its peer-to-peer payments app, Venmo, which allows individuals to transfer money between themselves and post on social media about it. PayPal also launched a new mobile app during the period, among other products.

In the March quarter, the company processed 1.4 billion payment transactions, which translates to 28 payment transactions per active account, an increase from 25 transactions per active account a year earlier.

For the quarter, PayPal's earnings rose to $365 million, or 30 cents a share, up from $255 million, or 21 cents a share, a year earlier.

Excluding certain items, the company posted per-share earnings of 37 cents, up from 29 cents a year earlier, on a pro forma basis, and above the average analyst estimate of 35 cents, according to Thomson Reuters.

The San Jose, Calif., company said revenue rose 19% in the first quarter to $2.54 billion, also above the average analyst estimate of $2.5 billion.

PayPal also forecast second-quarter adjusted earnings of 34 cents to 36 cents, bracketing analysts' expectations of 35 cents. And it forecast revenue of $2.57 billion to $2.62 billion, mostly above analysts' forecasts of $2.57 billion.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

April 27, 2016 16:51 ET (20:51 GMT)

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