Volume growth on its platform continued to slow in the first quarter, which led to a reduction in guidance for the full year.
The company now expects total payments volume to increase by 15% to 17%, compared with an earlier range of 21% to 23%. Revenue for the year is expected to go up as much as 13%, compared with an earlier target of as much as 17%.
The Chief Executive Officer said in the statement that they can continue to do even better.
Spending on the firm's platforms increased 15% in the first quarter. It was the smallest increase in at least five years.
As EBay moves away from its platform, and as more consumers return to in-store shopping, the volume growth of PayPal has been challenged. The company is also dealing with supply-chain dislocations that affect e-commerce shopping and inflation in the U.S.
In February, the company said it was changing its strategy of trying to add millions of new users. It is trying to encourage existing customers to use its app more frequently. The CFO of Walmart will leave in the coming weeks to join the retailer.
Transactions per active account increased by 9% in the quarter to 47. Revenue jumped 8% to $6.5 billion, beating the $6.4 billion average of analyst estimates.
After accounting for stock-based compensation expenses and payroll taxes, adjusted earnings are expected to be between $3.81 and $3.93 a share.
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