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 presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, can be accessed through the company’s Investor Relations website at https://investor.pypl.com. In addition, an archive of the webcast will be accessible for 90 days through the same link. Disclosure Channels PayPal Holdings, Inc. uses the following channels as means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD: • Investor Relations website (https://investor.pypl.com) • PayPal Newsroom (https://newsroom.paypal-corp.com/) • PayPal Corporate we