PayPal has reported a 54% slump in its first-quarter net income and also trimmed its earnings outlook for 2022 amid a volatile market.

Net income dropped to $509m in the January-March 2022 quarter, versus $1.1bn in Q1 2021.

GAAP earnings per share (EPS) of $0.43 in Q1 2022 plunged 53% from the prior year, while non-GAAP EPS of $0.88 decreased 28%. This was driven by a negative impact of $0.03 for halting transactional services in Russia.

However, net revenue rose 7% to $6.48bn from $6.03bn.

The California-based payments firm added 2.4 million net new active accounts in the first three months of 2022, taking its total active accounts to 429 million. 

It hopes to add around 10 million net new active accounts by the end of this year.

Total payment volume increased to $323bn in Q1 2022, up 13% from the previous year, while the number of transactions increased 18% to 5.2 billion.

Venmo, PayPal’s person-to-person payments service, processed $57.8bn worth of payments in Q1 2022, up 12% from the same period in 2021. 

PayPal president and CEO Dan Schulman said: “I’m pleased our first quarter results exceeded our guidance on revenue and earnings, and we continue to grow faster than the rate of ecommerce.

“We have much to be proud of but we know we can continue to do even better.”

For FY22, the firm projects non-GAAP EPS of $3.81-$3.93, as against $4.60 a year ago.

In the second quarter of 2022, it forecasts GAAP EPS of $0.44-$0.46 versus $1.00 a year ago, and non-GAAP EPS of $0.86 compared with $1.15 a year earlier.