PayPal Holdings, Inc. (PYPL) has reported a 5.21 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $384 million, or $0.32 a share in the quarter, compared with $365 million, or $0.30 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $534 million, or $0.44 a share compared with $452 million or $0.37 a share, a year ago.

Revenue during the quarter grew 16.94 percent to $2,975 million from $2,544 million in the previous year period. Total expenses were 85.51 percent of quarterly revenues, up from 84 percent for the same period last year. That has resulted in a contraction of 151 basis points in operating margin to 14.49 percent.

Operating income for the quarter was $431 million, compared with $407 million in the previous year period.

However, the adjusted operating income for the quarter stood at $643 million compared to $537 million in the prior year period.

"With another quarter of strong financial results, we continue to deliver on our vision to democratize financial services for our consumers and drive the global transition from cash to digital payments," said Dan Schulman, president and chief executive officer of PayPal. "We are deepening our merchant offerings and relationships, and expanding our network of strategic partnerships to make PayPal more available in new contexts and new markets."

For the second-quarter 2017, PayPal Holdings, Inc. forecasts revenue to be in the range of $3,050 million to $3,100 million. The company expects diluted earnings per share to be in the range of $0.30 to $0.32. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.41 to $0.43.

For fiscal year 2017, PayPal Holdings, Inc. forecasts revenue to be in the range of $12,520 million to $12,720 million. The company expects diluted earnings per share to be in the range of $1.28 to $1.33. It expects diluted earnings per share to be in the range of $1.74 to $1.79 on adjusted basis.

The company has spent $1,058 million cash to meet investing activities during the quarter as against cash inflow of $325 million in the last year period.

The company has spent $54 million cash to carry out financing activities during the quarter as against cash inflow of $113 million in the last year period.

Cash and cash equivalents stood at $1,240 million as on Mar. 31, 2017, down 51.99 percent or $1,343 million from $2,583 million on Mar. 31, 2016.

Working capital increases

PayPal Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $8,139 million as at Mar. 31, 2017, up 7.01 percent or $533 million from $7,606 million on Mar. 31, 2016. Current ratio was at 1.47 as on Mar. 31, 2017, down from 1.53 on Mar. 31, 2016.

Days sales outstanding went down to 560 days for the quarter compared with 594 days for the same period last year.