PayPal — Oct 29, 2024 release

3Q'24 GAAP EPS includes a negative impact of ~$0.14 from PayPal’s strategic investment portfolio, compared to a positive impact of ~$0.02 in 3Q'23.     3Q 2024 Results 1                               3Q'24 Financial Results Presented in millions, except per share data and percentages 3Q'24 3Q'23 YoY Growth FXN YoY Growth Total payment volume $422,641 $387,701 9% 9% GAAP Net revenues $7,847 $7,418 6% Transaction margin dollars $3,654 $3,369 8% Operating income $1,391 $1,168 19% Operating margin 17.7% 15.7% 198bps Effective tax rate 23.0% 17.8% 5.2pts Net income (loss) $1,010 $1,020 (1%) Earnings per diluted share $0.99 $0.93 6% Net cash provided by operating activities $1,614 $1,259 28% Non-GAAP Net revenues $7,847 $7,418 6% 6% Transaction margin dollars $3,654 $3,369 8% Operating income $1,477 $1,252 18% Operating margin 18.8% 16.9% 194bps Effective tax rate 21.7% 17.2% 4.5pts Net income $1,228 $1,077 14% Earnings per diluted share $1.20 $0.98 22% Free cash flow $1,445 $1,101 31% Adjusted free cash flow $1,540 $1,911 (19%) ————————————————————————————————————————————— Financial Guidance Presented in millions, except per share data and percentages October 2024 Guidance July 2024 Guidance Prior year period 4Q'24 Revenue Low single-digit growth Reflects impact of price-to-value strategy and prioritization of profitable growth N/A $8,026 GAAP EPS $1.03 - $1.07 Implied: ~$1.05 2 $1.29 Non-GAAP EPS 1 Low to mid-single-digit decrease Reflects elevated marketing spend to support key initiatives and new products Implied: Mid-single-digit decrease 2 $1.14 FY'24 GAAP EPS 3 $3.92 - $3.96 $3.88 - $3.98 $3.84 Non-GAAP EPS High teens growth Low to mid-teens growth $3.83 Please see "Non-GAAP Financial Measures" and "Non-GAAP Measures of Financial Performance" for reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures and important additional information. 1. Estimated non-GAAP amounts for the three months ending December 31, 2024 reflect adjustments of approximately $50 million. 2. Implied 4Q'24 prior guidance based on the midpoints of 3Q'24 guidance and FY'24 guidance provided on July 30, 2024. 3. In 2023, GAAP EPS included positive impacts of approximately $0.24 from the gain on sale of Happy Returns and approximately $0.14 from PayPal’s strategic investment portfolio. 3Q 2024 Results 2 Conference Call & Webcast PayPal Holdings, Inc. will host a conference call to discuss third quarter 2024 results at 8:00 a.m. Eastern Time today. A live webcast of the conference call, together with a slide presentat