PayPal : First Quarter 2024 News Release

Q1'24

Investor Update

April 30, 2024

© 2024 PayPal Holdings, Inc.

Non-GAAP Financial Measures; Forward-Looking Statements

This presentation contains non-GAAP measures relating to our performance. These measures may exclude certain expenses, gains and losses that may not be indicative of our core operating results and business outlook, and, in each case, may be different from the non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles. You can find the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the Supplemental Information at the end of this presentation.

Beginning with the first quarter of 2024, the company's non-GAAP results now include the impact of stock-based compensation (SBC) expense and related employer payroll taxes. Non-GAAP results for 2023, 2022 and 2021 have been recast to reflect this change.

All growth rates represent year-over-year comparisons, except as otherwise noted. FX-Neutral (which we also refer to as FXN or currency-neutral) results are calculated by translating the current period's local currency results by the prior period's exchange rate. FX-Neutral growth rates are calculated by comparing the current period's FX-Neutral results with the prior period's results, excluding the impact from currency hedging activities.

This presentation contains forward-looking statements relating to, among other things, the future results of operations, financial condition, expectations and plans of PayPal Holdings, Inc. and its consolidated subsidiaries ("PayPal") that reflect current projections and forecasts. Forward-looking statements can be identified by words such as "may," "will," "would," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "continue," "strategy," "future," "opportunity," "plan," "project," "forecast" and other similar expressions. Forward-looking statements may include, but are not limited to, statements regarding our guidance and projected financial results for second quarter and full year 2024; our capital return program; the timing and impact of product launches and acquisitions; and the projected future growth of PayPal's businesses. Forward-looking statements are based upon various estimates and assumptions, as well as information known to PayPal as of the date of this presentation and are inherently subject to numerous risks and uncertainties. Our actual results could differ materially from those estimated or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to compete in markets that are highly competitive and subject to rapid technological change, and to develop and deliver new or enhanced products and services on a timely basis; cyberattacks and security vulnerabilities, and associated impacts; the effect of global and regional political, economic, market and trade conditions including military conflicts, supply chain issues and related events that affect payments or commerce activity, including inflation and rising interest rates; the impact of catastrophic events, such as global pandemics, that may disrupt our business, as well as our customers, suppliers, vendors and other business partners; the stability, security and performance of our payments platform; the effect of extensive government regulation and oversight related to our business, products and services in a variety of areas, including, but not limited to, laws covering payments, lending and consumer protection; the impact of complex and changing laws and regulations worldwide, including, but not limited to, laws covering privacy, data protection, and cybersecurity; the impact of payment card, bank, or other network rules or practices; risks related to our credit products, including our ability to realize benefits from our agreements with third parties such as our agreement to sell our European BNPL loan receivables; changes in how consumers fund transactions; our ability to effectively detect and prevent the use of our services for fraud, abusive behaviors, illegal activities, or improper purposes; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; our reliance on third parties in many aspects of our business; damage to our reputation or brands; fluctuations in foreign currency exchange rates; changes in tax rates and exposure to additional tax liabilities; changes to our capital allocation, management of operating cash or incurrence of indebtedness; our ability to timely develop and upgrade our technology systems, infrastructure and customer service capabilities; the impact of proposed or completed acquisitions, divestitures, strategic investments, or entries into new businesses or markets; and our ability to attract, hire, and retain talented employees. The forward-looking statements in this presentation do not include the potential impact of any acquisitions or divestitures that may be announced and/or contemplated after the date of this presentation.

More information about factors that could adversely affect PayPal's results of operations, financial condition and prospects or that could cause actual results to differ from those expressed or implied in forward-looking statements is included under the captions "Risk Factors," "Legal Proceedings," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in PayPal's most recent annual report on Form 10-K, and its subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting PayPal's Investor Relations website at https://investor.pypl.com or the SEC's website at www.sec.gov. All information in this presentation is as of April 30, 2024. For the reasons discussed above, you should not place undue reliance on the forward-looking statements in this presentation. PayPal assumes no obligation to update such forward-looking statements.

©2024 PayPal Holdings, Inc.

Q1'24 Investor Update • 2

Positioning PayPal for long-term success

Driving early progress in Q1'24

• Delivered Q1 results ahead of guidance
• Reinvesting in innovation and existing product
• Accelerating speed of execution
• Now including stock-based compensation in non-GAAP results
• Aligning employee incentive plan metrics to profitable growth and shareholder value creation

Priorities for focused execution in FY'24

• Accelerate our branded checkout business
• Improve overall profitability, including higher growth PSP services
• Unlock the power of data to create more value for our customers
• Operate more efficiently

©2024 PayPal Holdings, Inc.

Q1'24 Investor Update • 3

Principles for value creation

1

2

3

4

5

Start with the customer

Focus on profitable growth

Drive operating leverage over time

Set measurable goals and communicate consistently

Maintain a strong balance sheet and return excess cash

©2024 PayPal Holdings, Inc.

Q1'24 Investor Update • 4

Q1'24 snapshot

(in millions, except % and per share data)	Q1'24
Total payment volume (TPV)	$403,860
Y/Y growth	14%
Revenue	$7,699
Y/Y growth	9%
FXN Y/Y growth	10%
Transaction margin $ (TM$)	$3,461
Y/Y growth	4%
Non-GAAP operating income1	$1,399
Non-GAAP operating margin1	18.2%
Non-GAAP EPS1	$1.08

©2024 PayPal Holdings, Inc.

• Revenue +9% on a spot basis and +10% on a currency-neutral basis (FXN) vs. guidance2 of +6.5% spot and +7% FXN
• TM $ +4%, driven by interest on customer balances, PayPal branded checkout growth, lower losses, and Venmo
• Non-GAAPoperating margin1 expanded 84bps, driven by expense control
• Under our new non-GAAP methodology1, which includes the impact of stock-based compensation (SBC) expense and related employer payroll taxes, non-GAAP EPS +27% to $1.08 (vs. $0.85 in Q1'23 on the same basis)
• • Under the prior non-GAAP methodology, which excluded the impact of SBC expense and related employer payroll taxes, non-GAAP EPS would have increased 20% to $1.40 (from $1.17 in Q1'23) compared to guidance2 of a mid-single digit increase

All growth rates reference Q1'24 year-over-year growth unless otherwise noted.

For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the Supplemental Information.

1. As announced on February 7, 2024, non-GAAP results now include the impact of SBC expense and related employer payroll taxes. Non- GAAP results for 2023, 2022, and 2021 have been recast to reflect this change. See slides 13 and 20-22 of this presentation for additional detail and historical reconciliations.
2. Q1'24 guidance as provided on February 7, 2024.

Q1'24 Investor Update • 5

Focused on driving profitable growth						Y/Y growth
					FXN Y/Y growth
					Non-GAAP operating margin
			REVENUE ($M)					TRANSACTION MARGIN $ ($M)
	+9% driven by Braintree and PayPal branded checkout	Focused on driving sustainable transaction margin $ growth
		$7,287	$7,418	$8,026	$7,699					$3,672
$7,040			$3,315	$3,348	$3,369	$3,461
10%				10%
		9%
			9%
		8%
9%		8%	9%	9%			1%				4%
			1%		-%
		7%
								(3%)
	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24
	NON-GAAP OPERATING INCOME ($M) AND MARGIN1			NON-GAAP EPS1
	84bps of operating margin expansion driven by opex leverage	+27% driven by TM $ growth, share repurchases, and expense discipline
				$1,468	$1,399					$1.14	$1.08
			$1,252					$0.98
$1,220	$1,181					$0.87
			$0.85
17.3%			18.3%	18.2%		63%
	16.9%
		16.2%					29%				27%
								15%
									8%
	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24

	For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the Supplemental Information.	Q1'24 Investor Update • 6
©2024 PayPal Holdings, Inc.	(1) Non-GAAP results for 2023, 2022, and 2021 have been recast to reflect the inclusion of SBC and related employer payroll taxes. See slides 13 and 20-22 of this presentation for additional
	detail and historical reconciliations.

Account and activity metrics1

(in millions, except % and TPA)	Q1'24
Active accounts2	427
Y/Y growth	(1%)
Monthly active accounts (MAA)3	220
Y/Y growth	2%
Number of payment transactions	6,505
Y/Y growth	11%
Transactions per active account	60.0
(TPA)4
Y/Y growth	13%
TPA ex. PSP4(unbranded card	33.9
processing)
Y/Y growth	7%

©2024 PayPal Holdings, Inc.

• Active accounts2 +0.4% (+2M) sequentially, driven by lower churn vs. FY'23 and includes growth in PayPal merchant and consumer accounts
• MAA3 +2%, driven by Venmo and PayPal consumer accounts
• • -1.5%sequentially, driven by normal holiday seasonality
• TPA4 +13%, driven by Braintree transaction growth
• TPA ex. PSP4 +7%, reflecting improved engagement vs. FY'23, and transaction growth in branded checkout and Venmo

All growth rates reference Q1'24 year-over-year growth unless otherwise noted.

1. Detailed definitions included on slide 24 of this presentation.
2. Active accounts are accounts that have completed a transaction within the past 12 months.
3. MAA are a subset of active accounts (primarily PayPal and Venmo) that have completed a transaction at least once during the month of measurement. MAAs presented at the end of a quarter or year are the average of each month's MAAs in the respective quarter or year.
4. TPA and TPA ex. PSP are trailing 12-month metrics, reflecting transactions within the previous 12-month period, divided by active accounts at the end of the period. TPA ex. PSP excludes both unbranded card processing transactions and unbranded active accounts (primarily Braintree).

Q1'24 Investor Update • 7

TPV & revenue

(in millions, except %)	Q1'24
TPV	$403,860
Y/Y growth	14%
FXN Y/Y growth	14%
Total revenue	$7,699
Y/Y growth	9%
FXN Y/Y growth	10%

©2024 PayPal Holdings, Inc.

• TPV +14% on a spot and FXN basis, driven by PSP1 +26% FXN, PayPal branded checkout2 +7% FXN, and Venmo +8%
• • PayPal branded checkout TPV includes ~1pt benefit from leap day, and ongoing benefit from global marketplaces
• Transaction revenue +11%, accelerated 2pts sequentially, primarily driven by Braintree with contribution from PayPal branded checkout
• OVAS -2%: interest income growth primarily offset by lower credit revenue and other small parts of the portfolio

Additional detail included in Supplemental Information. All growth rates reference Q1'24 year-over-year growth unless otherwise noted.

1. PSP TPV (unbranded card processing) primarily comprises Braintree full-stack volume and does not include gateway-exclusive volume. PSP TPV includes unbranded credit and debit card processing on the PayPal platform.
2. PayPal branded checkout TPV does not include volume associated with eBay or PayPal P2P (peer to peer).

Q1'24 Investor Update • 8

TPV mix across PayPal's payments platform

		Q1'23	Q4'23	Q1'24
		Prior year period	Prior quarter	Current quarter
PayPal branded checkout1	FXN GROWTH	6%	5%	7%
% OF TOTAL	29%	30%	27%
PSP (unbranded card	FXN GROWTH	29%	29%	26%
processing)2	% OF TOTAL	33%	35%	37%
Venmo	FXN GROWTH	9%	8%	8%
% OF TOTAL	18%	17%	17%
P2P ex-Venmo3	FXN GROWTH	(6%)	1%	3%
% OF TOTAL	9%	8%	8%
Other merchant services4	FXN GROWTH	6%	12%	13%
% OF TOTAL	9%	9%	9%
eBay	FXN GROWTH	(8%)	(9%)	(7%)
% OF TOTAL	2%	2%	2%
Total TPV	FXN GROWTH	12%	13%	14%

©2024 PayPal Holdings, Inc. Percent of total may not sum to 100% due to rounding.

1. PayPal branded checkout does not include volume associated with eBay or PayPal P2P (peer to peer).
2. PSP (unbranded card processing) primarily comprises Braintree full- stack volume and does not include gateway-exclusive volume. PSP TPV includes unbranded credit and debit card processing on the PayPal platform.
3. P2P ex-Venmo primarily comprises PayPal P2P volume, with some contribution from Xoom.
4. Other merchant services includes volumes associated with invoicing, Paidy, payouts (including Hyperwallet), point-of-sale solutions (including Zettle), QR code, etc.

Q1'24 Investor Update • 9

Transaction margin and non-GAAP1,2 operating margin

(in millions, except %)

Transaction margin $

Y/Y growth

Transaction margin

Non-transaction related expenses1,2,3

Y/Y growth

Non-GAAP operating income1,2

Y/Y growth

Non-GAAP operating margin %1,2

Q1'24

$3,461

4%

45.0%

$2,062

(2%)

$1,399

15%

18.2%

• Transaction margin $ +4%, driven by interest on customer balances, PayPal branded checkout growth, lower losses, and Venmo
• Non-transactionopex -2%, driven by lower headcount and SBC expense, with leverage across customer support & operations, sales & marketing, and general & administrative3
• • Some marketing and investment expenses deferred to H2'24
• 84bps of non-GAAP operating margin expansion, driven by expense discipline
• Non-GAAPEPS2 +27%, driven by transaction margin $ growth, share repurchase, and expense discipline

All growth rates reference Q1'24 year-over-year growth unless otherwise noted.

1. Non-transactionrelated expenses, non-GAAP operating income, and non-GAAP operating margin are non-GAAP financial measures. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures and additional detail, please see the Supplemental Information.
2. Non-GAAPresults for 2023, 2022, and 2021 have been recast to reflect the inclusion of SBC and related employer payroll taxes. See slides 13 and 20-22 of this presentation for additional detail and historical reconciliations.
3. Non-transactionrelated expenses comprises customer support & operations -7%, sales & marketing -4%, technology & development +3%, general & administrative -9%, and restructuring & other charges 0%.

©2024 PayPal Holdings, Inc.

Q1'24 Investor Update • 10