(NASDAQ: PYPL) investors have had a tough go the past five years, with the stock down more than 40% over that stretch (including a roughly 80% pullback from its highs). However, there are signs a turnaround is in the works.

The payments powerhouse reported good results across several important metrics in its first-quarter earnings report. More important, it continues to set itself up for future success by reinvesting back into the business to help drive growth.

PayPal's first-quarter results were very solid, with revenue rising 9% (or 10% if you exclude foreign currency effects) to $7.7 billion. Adjusted earnings per share (EPS) rose 27% to $1.08. You might have expected a different number if you'd been following the company's guidance, but the company is now including the effects of stock-based compensation. The change is subtle, but I applaud it. Many companies take out this non-cash expense when reporting adjusted EPS, but stock comp is a real expense that increases overall share count and dilutes shareholders, so PayPal is actually being more transparent about its profitability.

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Source Fool.com