Q2-22

Investor Update

August 2, 2022
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.
As previously disclosed, beginning with the first quarter of 2020, we modified the presentation of our non-GAAP results to exclude the impact of all gains and losses on our strategic investments. In addition,
beginning with the fourth quarter of 2020, we have reclassified certain cash flows related to customer balances from cash flows from operating activities to cash flows from investing activities or financing
activities within the consolidated statements of cash flows. Prior period amounts have been reclassified to conform to the current period presentation.
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 that reflect PayPal’s current projections and forecasts. Forward-looking statements can be identified by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,”
“estimate,” “intend,” “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 third quarter and full year 2022; anticipated cost savings and operating margin expansion; our capital return program; the impact and timing 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,
supply chain issues and related events that affect payments or commerce activity, including inflation and rising interest rates; the impact of natural disasters or other business interruptions on our business and
financial condition, as well as our customers, suppliers, vendors and other business partners; the continuing effects of the COVID-19 pandemic and the proliferation of variants; the impact of the Russia-Ukraine
conflict; 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, which expose us to potential liabilities, increased costs, and other adverse effects on our business; the impact of payment card, bank, or other network rules or
practices; 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 ability to manage relationships with third parties and their ability to meet their obligations to us; 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 August 2, 2022. 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.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 2

Highlights
Solid second quarter, with two points of sequential revenue acceleration and 22% growth in free cash flow
(1)
Q2 results & metrics • TPV growth: 3-year spot CAGR of 25%, and 28% ex-eBay
• Revenue growth: 3-year spot CAGR of 16%, and 22% ex-eBay
(2)
• PayPal core daily active accounts up >40% relative to pre-pandemic period (Q2-19)
• Non-GAAP EPS of $0.93, ~$0.07 stronger than guidance
• $1.3B in free cash flow (FCF), 22% growth and 19% of revenue
Leadership, resiliency, and shareholder value initiatives
Management updates • Blake Jorgensen appointed Chief Financial Officer (CFO)
• Conducting search for new Chief Product Officer (CPO) following Mark Britto’s plan to retire at end of year
Productivity initiatives • FY-22 guidance incorporates $900M of cost savings, with annualized benefit of at least $1.3B in FY-23
• Plan to deliver operating margin expansion in FY-23
Capital return program • New $15 billion share repurchase authorization
• FY-22 share repurchases expected to reach ~$4.0B
• Commitment to work with Elliott Investment Management L.P. on a comprehensive evaluation of capital
return alternatives

Raising FY-22 non-GAAP EPS guidance; targeting non-GAAP operating margin expansion in Q4
(3)
Full year outlook • Expect ex-eBay revenue growth of ~14.5% FXN , FCF >$5.0B, and ~10M NNAs
• Raising non-GAAP EPS guidance range; targeting non-GAAP operating margin expansion in Q4
• Revenue growth expected to accelerate each quarter; targeting 14% FXN growth in Q4
Non-GAAP operating margin and expenses, non-GAAP EPS, and free cash flow are non-GAAP financial measures. Please see the Supplemental Information for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
(1) All references to eBay in this presentation refer to eBay Marketplaces on our payments platform (2) Daily active accounts represents the average number of active accounts that have completed a transaction using our core PayPal payments products and services,
including person-to-person payments transfers and checkout transactions, on a given day during the designated period (3) Foreign currency-neutral

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 3

Second Quarter 2022 Summary
Three-year CAGRs highlight solid performance
Active Accounts Customer Engagement Total Payment Volume

429M 48.7 $340B

Includes 35M active merchant Payment transactions per active 9% spot and 13% FXN y/y growth
accounts account (TPA)
11% spot and 15% FXN y/y growth
6% increase y/y 12% increase y/y ex-eBay
PayPal core daily active accounts are 3-year spot CAGR of 25%
>40% higher relative to pre-pandemic
0.4M period (Q2-19) 3-year ex-eBay spot CAGR of 28%
Net new active accounts (NNAs)

Revenue Non-GAAP EPS Free Cash Flow

$6.8B $0.93 $1.3B
9% spot and 10% FXN y/y growth 19% decrease y/y 22% increase y/y
14% spot y/y growth ex-eBay Includes ~$0.11 per share headwind from 19% of revenue
lower eBay transaction margin dollars and
3-year spot CAGR of 16%
lapping ~$0.11 benefit from credit loss
3-year ex-eBay spot CAGR of 22% reserve releases in Q2-21
3-year transaction margin dollar CAGR of
12%
Non-GAAP earnings per share and free cash flow are non-GAAP financial measures. Please see the Supplemental Information for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 4

PayPal delivers results at massive scale
2015 2019 2021

Active Accounts 181M 305M 426M

Transactions 5.1B 12.4B 19.3B

Transactions per
28.1 40.6 Supporting 45.4
Account (TPA) Building an Combining
customers
enduring trust and
through the
platform innovation
Total Payment pandemic
Volume (TPV)
$288B $712B $1.25T

Net Revenue $9.2B $17.8B $25.4B

Free Cash Flow

(1)
$1.8B $3.4B $5.4B

(1) Free cash flow is a non-GAAP financial measure. Please see the Reconciliation of Operating Cash Flow to Free Cash Flow within Supplemental Information for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 5

PayPal’s evolution into today’s global payments leader
Enhancing value proposition of two-sided platform Business Credit Card
3/2 Cobrand Credit Card
Savings
Paidy
Shopping Hub
PayPal has remained at the forefront of the digital payment revolution for more Happy Returns
Global Pay Later
than 20 years Crypto
Venmo Business Profiles
Venmo Credit Card
By leveraging technology to make financial services and commerce more Venmo DD & Check Capture
convenient, affordable, and secure, the PayPal platform is empowering nearly Digital Wallet
QR Code
430 million consumer and merchant accounts in more than 200 markets to join Honey
Bill Pay
and thrive in the global economy Consumer Debit Card
Check Capture
Consumer Debit Card
Check Capture
Zettle Zettle
Venmo Checkout Venmo Checkout
Venmo Debit Card Venmo Debit Card
Hyperwallet Hyperwallet
Business Loans & Loan Builder Business Loans & Loan Builder
Xoom Xoom
Consumer Presentment Currencies Presentment Currencies
Multicurrency Withdrawals Multicurrency Withdrawals
Merchant Working Capital
Venmo P2P
Working Capital
Venmo P2P
Working Capital
Venmo P2P
Braintree Braintree Braintree
Consumer + Merchant Prepaid Card Prepaid Card Prepaid Card
Cash-In Cash-In Cash-In
Direct Deposit Direct Deposit Direct Deposit
PayPal Credit Donate / Fundraise Donate / Fundraise Donate / Fundraise
Subscriptions and Recurring Pmts Subscriptions and Recurring Pmts Subscriptions and Recurring Pmts
Card Processing Risk Mgmt
PayPal Credit PayPal Credit PayPal Credit
PayPal Payouts Card Processing Risk Mgmt Card Processing Risk Mgmt Card Processing Risk Mgmt
PayPal Mobile PayPal Payouts PayPal Payouts PayPal Payouts
Shipping Shipping PayPal Mobile PayPal Mobile PayPal Mobile
Consumer Credit Card Consumer Credit Card Shipping Shipping Shipping
Merchant Debit Card Merchant Debit Card Consumer Credit Card Consumer Credit Card Consumer Credit Card
Disputes and Resolutions Disputes and Resolutions Merchant Debit Card Merchant Debit Card Merchant Debit Card
Invoicing Invoicing Disputes and Resolutions Disputes and Resolutions Disputes and Resolutions
Invoicing Invoicing Invoicing
Checkout Checkout
Checkout Checkout Checkout
PayPal Balance PayPal Balance PayPal Balance PayPal Balance PayPal Balance PayPal Balance
Add from Bank Add from Bank Add from Bank Add from Bank Add from Bank Add from Bank
Withdraw to Bank Withdraw to Bank Withdraw to Bank Withdraw to Bank Withdraw to Bank Withdraw to Bank
PayPal P2P PayPal P2P PayPal P2P PayPal P2P PayPal P2P PayPal P2P

1998-2001 2002-2005 2006-2009 2010-2014 2015-2018 2019-2022

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 6
PayPal is driving a digital payments paradigm for merchants,
consumers, and partners

Drive Speed
Conversion

Attract Trust
Customers

20.9B
Social Secure Transactions(1) Choice
Merchants Consumers
Winning Checkout $1.31T Winning Digital Wallet
TPV(1)
Full Stack Utility
Solution

Drive Social
Conversion

(1) Last twelve months transactions and TPV (Q3-21 to Q2-22)

Partners
©2022 PayPal Holdings, Inc. Increasing Digital Transactions Q2-22 Investor Update • 7
Leadership, Resiliency, and Shareholder Value Initiatives
Board of Directors and Management aligned to strengthen PayPal’s position

Management • Appointing Blake Jorgensen as CFO, effective August 3

updates ◦ Blake has extensive experience driving operational excellence and shareholder value, having served as
CFO at industry-leading companies including Electronic Arts Inc., Levi Strauss & Co., and Yahoo! Inc.
• Conducting search for a new Chief Product Officer following Mark Britto's plan to retire at the end of the year

Efficiency • FY-22 financial outlook incorporates ~$900 million of savings across transactional and non-transactional
opportunities & operating expenses
growth initiatives • On an annualized basis, these FY-22 savings, in conjunction with additional initiatives, are expected to generate
savings of at least ~$1.3 billion in FY-23
• Expect to reinvest a portion of the gross savings into high-conviction growth opportunities and to drive
operating margin expansion in FY-23

Invigorated capital • Includes a new $15 billion share repurchase authorization and a comprehensive evaluation of capital return
return program alternatives
◦ Returned $2.25 billion to shareholders in the form of share repurchases in the first half of 2022, representing
~95% of free cash flow generated in the period
• FY-22 share repurchases expected to reach ~$4 billion

• Investor Day to be held in early 2023 to share financial and strategic update and provide details related to the review of capital return
alternatives
• Entering into an Information Sharing Agreement with Elliott to continue collaboration across a range of value-creation opportunities

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 8

Expanding support for SMBs around the world
New and enhanced products to drive growth and resiliency for SMBs

PayPal Business Cashback Tap to Pay with Zettle PayPal Working Capital
®
Mastercard Credit Card
U.S. Netherlands, Sweden, & UK France & Netherlands

Leveraging near-field PayPal Working Capital (PayPal

communication (NFC), Tap to Pay Funding Pro) expanded to France
enables individual sellers and small and the Netherlands, providing
businesses to accept contactless SMBs with simple and flexible
Unlimited 2% No annual fee & payments using the Zettle Go app funding in minutes. Since PayPal
cash back on free employee by tapping a customer’s card or Working Capital launched in 2013,
purchases cards payment device to PayPal has provided SMBs access to
the back of an more than $25.6B in capital through
Android phone over 1.3M loans in the U.S., Australia,
with no UK and Germany
additional
Fraud liability Enhanced hardware
protection benefits from or fees
(1)
Mastercard

GOAL 9: Target 9.3: Increase the access of small-scale industrial Empowering SMBs is a priority ESG topic for PayPal and is central to
Industry, Innovation and and other enterprises to financial services and their PayPal’s mission to democratize financial services. PayPal supports
Infrastructure integration into value chains and markets SMBs globally through access to capital and tools to drive growth
The PayPal Business Cashback Mastercard is issued by WebBank pursuant to a license by Mastercard International and serviced by Concerto Card Company. Mastercard is a registered trademark.
TM
(1) 2-year Extended Warranty on Purchases, cell phone protection, Mastercard ID Theft Protection , and more from Mastercard

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 9

Leaning into engagement, with room to grow in core markets
(1)
PayPal consumer penetration across core developed markets remains below 50%

100%

50%
42% 44%
35% 39%
26%
19%
(2)

(1) PayPal consumer penetration % calculation is based on the number of unique PayPal consumer users that have conducted at least one transaction in the past 12 months divided by the adult population (ages 18+) in each country, according to UN World Population
Prospects 2022 data; penetration analysis is based on PayPal only and does not include other products/services (e.g., Venmo)
(2) Average PayPal consumer penetration % in France, Italy, and Spain
Note: Order based on adult population in each country (largest to smallest, with France, Italy, and Spain representing the average adult population)

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 10

 Supporting choice and flexibility for
Grubhub’s customers and drivers

PayPal and Grubhub have nurtured a strong relationship over the last 10
years that has resulted in millions of customers opting to use PayPal or
Venmo at checkout to order the food they love.

Currently, 95% of Grubhub transactions are processed by Braintree.

Braintree facilitates high authorization rates and low risk of losses for the
company, providing both speed and security for Grubhub and its
customers.

For Grubhub’s drivers, cashing out is one of the most important features
– and now, drivers can immediately access their earnings with the
launch of Instant Cashout via Direct to Debit, enabled by Hyperwallet
from PayPal and Visa Direct. With the support of PayPal’s Hyperwallet,
Grubhub is increasing financial stability and flexibility for its drivers by
offering real-time payouts of their tips and earnings.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 11

Business
Update
Q2-22
 Q2-22 Total Payment Volume (TPV)
3-year CAGR of 25% at spot and 28% ex-eBay

Total Payment Volume (TPV) ($B)

• TPV increased 9% on a spot basis and 13% FXN
to $340 billion
◦ 3-year CAGR of 25% at spot, with volume
340 340
323 processed in the quarter nearly doubling
311 310 from Q2-19 to Q2-22
285
• Excluding eBay, TPV increased 11% on a spot
basis and 15% FXN, on top of 48% spot and 43%
FXN growth in Q2-21; 3-year CAGR of 28% at
spot
• P2P volume, which includes PayPal, Venmo, and
Xoom, increased 3% to $93B, on top of 41%
growth in Q2-21, and represented 27% of TPV; 3-
year CAGR of 26% at spot
• Venmo volume increased 6% to $61B, on top of
58% growth in Q2-21; 3-year CAGR of 36% at
spot
Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22
◦ Venmo commerce volume grew >250% in
(1)
Y/Y Growth 50% 40% 26% 23% 13% 9% Q2-22
FXN Y/Y Growth 46% 36% 24% 23% 15% 13%
(1) Venmo TPV is primarily comprised of P2P activity. Commerce volume includes business profiles, goods & services transactions, and Pay with Venmo.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 13

 Q2-22 TPV: Cross-Border Trade (CBT)
3-year CAGR of 14% at spot and 16% ex-eBay

Cross-Border Trade TPV ($B)

51 • CBT TPV was $45 billion, down 6% FXN, driven

48 47 49 by softness in U.S.-China, UK-EU and UK-China
44 45 corridors, partly offset by intra-European
corridors
◦ On a 3-year CAGR basis, CBT TPV grew 14%
at spot
◦ Excluding eBay, cross-border TPV increased
2% FXN, on top of 28% growth in Q2-21, and
16% on a 3-year CAGR basis at spot
◦ CBT TPV represented 13% of TPV in Q2-22,
compared to 16% in Q2-21
◦ Cross-border trade is primarily comprised of
Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 e-commerce goods-related activity and has
limited exposure to the recovery of travel
Y/Y Growth 51% 38% 19% 5% (7%) (12%)
FXN Y/Y Growth 44% 30% 17% 7% (4%) (6%)
Share of Total TPV 17% 16% 15% 14% 14% 13%
Ex-eBay FXN 41% 28% 19% 14% 4% 2%
Y/Y Growth
Note: In a typical purchase transaction, cross border TPV is counted in the region where the merchant is located. For example, in the case of a U.S. seller and a German buyer, the TPV is counted in the U.S.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 14

 Q2-22 Customer Engagement
Transactions per active account (TPA) reached 48.7, growing 12%

Active Accounts (M) and TPA • Ended the quarter with 429 million active
accounts, up 6%, including 35 million merchant
accounts
416 426 429 429
392 403 • Added 0.4 million net new active accounts in
Q2-22, primarily driven by Venmo. Includes
48.7 impact from pull back on incentive-driven
47.0 campaigns, leading to minimally engaged users
45.4
44.2 naturally rolling off
43.5
42.2 • Processed 5.5 billion payment transactions, up
16%, despite 43% decline in eBay transactions.
Ex-eBay, transactions grew 20%. On a 3-year
CAGR basis, transactions grew 23% and 28% ex-
eBay
• 12% growth in TPA was driven by strong
transaction growth from Braintree. Growth in
PayPal transactions ex-eBay also helped to offset
Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 decline in eBay transactions
Y/Y Growth

Active Accounts
• PayPal core daily active accounts increased
21% 16% 15% 13% 9% 6%
>40% relative to Q2-19 and ~13% on a 3-year
TPA 7% 11% 10% 11% 11% 12% CAGR basis, demonstrating elevated activity and
Transactions 34% 27% 22% 21% 18% 16% engagement relative to pre-pandemic period

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 15

 Q2-22 Revenue
3-year CAGR of 16% at spot and 22% excluding eBay
• Total revenue grew 9% at spot and 16% on a 3-year
Total Revenue ($B) CAGR basis
◦ Ex-eBay revenue grew 14%, and 22% on a 3-
6.918 6.806 year CAGR basis
6.483 ◦ Transaction revenue grew 8%, driven primarily
6.238 6.182 by Braintree. Ex-eBay transaction revenue grew
6.033
13%
◦ Other Value Added Services (OVAS) revenue
increased 21%
• Total take rate was flat year over year. Benefits from
FX hedge gains, P2P mix and Venmo helped offset
pressure from lower FX fees and eBay volume/yield
(3bps drag)
◦ eBay volumes declined 39% and eBay take rate
in Q2-22 was 2.13% vs. 3.22% in Q2-21
• Hedging gains, recognized in international
transaction revenue, were $107 million in Q2-22
versus hedging losses of $89 million in Q2-21
• Exiting Q2, at exchange rates as of June 30, 2022,
Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 we estimate that our derivative positions will result in
the recognition of $372 million of hedging gains in
Y/Y Growth 31% 19% 13% 13% 7% 9% international transaction revenue over the next 12
FXN Y/Y Growth 29% 17% 13% 13% 8% 10% months

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 16

 Q2-22 Non-GAAP Expense Detail
Non-GAAP operating margin of 19.1%
Total Expenses Volume-based Non-transaction GAAP and Non-GAAP Operating Margin
(1) (2)
($M) Expenses ($M) Related Expenses
5,504 ($M) 28.2% 27.2% 27.7% 26.5%
24.7% 23.8%
4,584 21.8% 20.7%
19.7% 19.1%
3,492 18.1% 17.9% 17.3% 18.1% 16.9%
15.7% 15.2%
2,693
11.0% 11.2%
1,891 2,012 8.6%

Q2-21 Q2-22 Q2-21 Q2-22 Q2-21 Q2-22 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

Y/Y Growth 21.4% 20.1% 18.0% 29.7% 26.7% 6.4% Non-GAAP Operating Margin
% of Revenue 73.5% 80.9% 43.2% 51.3% 30.3% 29.6% GAAP Operating Margin

• Volume-based expenses grew 29.7%, resulting from increased funding costs driven by volume and funding mix (unbranded processing
growth), and lapping the release of $156 million dollars of credit reserves in Q2-21
• Non-transaction related expenses grew 6.4%, representing 29.6% of revenue, an improvement of ~80bps from Q2-21, driven by an increased
focus on cost control with leverage across sales and marketing and customer support and operations, partially offsetting deleverage on
technology and development spend
• Non-GAAP operating margin of 19.1%, contracting ~740bps vs. non-GAAP operating margin performance in Q2-21 of 26.5%, driven primarily by
higher transaction expense rate from volume mix (unbranded processing growth) as well as lapping the release of credit reserves in Q2-21 and
increased investment in technology and development
Non-GAAP operating margin and expenses presented on a non-GAAP basis are non-GAAP financial measures. Please see the Supplemental Information for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
(1) Volume-based expenses include transaction expense and transaction and credit losses.
(2) Non-transaction related expenses include customer support & operations, sales & marketing, technology & development, and general & administrative.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 17

Q2-22 EPS
Non-GAAP EPS of $0.93, down 19% y/y and 3-year CAGR of 9%

Non-GAAP EPS

• Non-GAAP EPS declined $0.22 relative to Q2-21,

which includes impacts from:
$1.22 ◦ ~$0.11 headwind from lower eBay transaction
$1.15
$1.11 $1.11 margin dollars
$1.07 $1.07 $1.08
◦ Lapping ~$0.11 benefit from release of credit loss
$0.93 reserves in Q2-21
$0.88
• In addition to the eBay (~$0.11) and lapping (~$0.11)
headwinds, Q2-22 GAAP EPS of ($0.29) also includes
$0.66
a negative impact of ~$0.37 associated with a
discrete tax charge related to acquired intellectual
property and a net negative impact of ~$0.65 related
to PayPal’s strategic investment portfolio
◦ In Q2-22, GAAP EPS includes a net loss of
~$0.45 related to strategic investments
◦ In Q2-21, GAAP EPS included a net gain of
~$0.20 related to strategic investments
Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

Non-GAAP EPS is a non-GAAP financial measure. Please see the Supplemental Information for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 18

 Q2-22 Free Cash Flow
FCF of $1.3 billion, 22% increase
Free Cash Flow ($M)

• Free Cash Flow (FCF) of $1.3 billion, increasing

1,537 1,550 22%, driven by higher cash earnings and
favorable changes in working capital relative to
1,286 1,291 Q2-21
• In Q2-22, for every $1 of revenue, PayPal
1,059 1,051 generated 19 cents of FCF
• $15.6 billion in cash and cash equivalents ($4.6B),
short-term ($4.7B) and long-term investments
($6.3B)
• Long-term debt of ~$10.2 billion, and short-term
debt of ~$400 million as of June 30, 2022
◦ Long-term debt includes $3.0 billion of
issuance in May 2022. Approximately $1.6
billion in proceeds used to redeem
maturities coming due in September 2022
and June 2023
% of Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22
Revenue
FCF 25% 17% 21% 22% 16% 19%
Capex 4% 4% 4% 3% 3% 3%
Free cash flow is a non-GAAP financial measure. Please see the Supplemental Information for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 19

Q2-22 Capital Allocation
Capital Allocation ($B)

0.8 0.9

0.9

3.5 1.6 3.4

0.7
0.4
0.7 1.4 3.8
0.7 2.8 3.1 2.3
1.0
1.0 1.3 0.2
0.4
2016 2017 2018 2019 2020 2021 2022 YTD

Acquisitions & Strategic Investments Stock Repurchases Capex

• Generated ~$26 billion in FCF since becoming an independent company in July 2015
• In Q2-22, returned $750 million in capital to stockholders by repurchasing ~8 million shares at an average price of $98.71 per share
• Since separation, allocated $14.2 billion to share repurchases and $12.9 billion to acquisitions and investments
• PayPal Board of Directors recently approved a new $15 billion share repurchase authorization, which combined with $2.8 billion
remaining on the 2018 authorization, brings PayPal’s aggregate outstanding authorization to nearly $18 billion

Free cash flow is a non-GAAP financial measure. Please see the Supplemental Information for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 20

FY-22 Guidance
Raising expected non-GAAP EPS to ~$3.87-$3.97

• TPV: Expect TPV growth of ~12% at spot and ~16% FXN

• Revenue: Expect revenue growth of ~10% at spot and ~11% FXN, the
low end of the prior currency-neutral guidance
Net Revenue ($B) ~$27.85 ◦ Revenue growth expected to accelerate each quarter, targeting
~14% FXN growth in Q4
Net Revenue Growth
(FXN) ~11% ◦ Includes an expected eBay revenue decline of ~$750M (H1-22
decline of ~$625M, with ~$125M expected in H2-22)
◦ Excluding eBay, revenue expected to grow ~13.5% at spot and
Non-GAAP EPS ~$3.87-$3.97 ~14.5% FXN
• Non-GAAP Operating Margin: Expect op margin of at least ~20%, with
the high end of the non-GAAP EPS range contemplating 20.5% and
Free Cash Flow ($B) >$5.0 expansion in Q4-22
◦ Outlook incorporates ~$900M of savings across transactional and
non-transactional operating expenses
• GAAP EPS: ~$1.52-$1.62
• Non-GAAP EPS: Raising expected range to ~$3.87-$3.97, compared to
• Non-GAAP effective tax rate: ~16%-18% $4.60 in FY-21
• Capex: ~3% of revenue ◦ In FY-21, GAAP and non-GAAP EPS included a benefit of ~$0.21
from the release of credit loss reserves
• NNAs: Expect to add ~10 million NNAs
• Share Repurchases: Expected to reach ~$4.0B
Non-GAAP EPS, non-GAAP operating margin and free cash flow are non-GAAP financial measures. Please see the Supplemental Information for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 21

Q3-22 Guidance
Revenue growth expected to accelerate to ~12% FXN

• Revenue: Expect revenue growth of ~10% at spot and ~12% FXN to

~$6.80B

◦ Excluding eBay, revenue expected to grow ~12% at spot and

Net Revenue ($B) ~$6.80 ~13.5% FXN

◦ Includes 150 bps headwind from revenue attributable to the

Net Revenue Growth (1)

(FXN) ~12% Paycheck Protection Program recognized in Q3-21

• EPS: Expect GAAP EPS in the range of ~$0.61-$0.63, compared to
$0.92 in the prior year period, and non-GAAP EPS in the range of
Non-GAAP EPS ~$0.94-$0.96 ~$0.94-$0.96, compared to $1.11 in the prior year period

◦ In the third quarter of 2021, GAAP EPS included a net gain of

~$0.13 relating to PayPal’s strategic investment portfolio

◦ In the third quarter of 2021, GAAP EPS and non-GAAP EPS

included ~$0.04 from release of credit loss reserves

◦ GAAP EPS guidance does not include any expectation of net

realized and unrealized gains and losses on PayPal’s strategic
investment portfolio

Non-GAAP EPS is a non-GAAP financial measure. Please see the Supplemental Information for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.
(1) In Q3-21, Other Value Added Services benefited from revenue associated with U.S. Small Business Association Paycheck Protection Program (PPP) loan forgiveness and extinguishment of a portion of servicing obligations with respect to PPP loans

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 22

Supplemental
Information
 (1)
Q2-22 PayPal Metrics

(in millions, except %) Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

• 45% of active accounts were outside the

Active Accounts 392 403 416 426 429 429
U.S. as of June 30, 2022
Y/Y Growth 21% 16% 15% 13% 9% 6%
Net New Active Acounts 14.5 11.4 13.3 9.8
* 2.4 0.4 • Average Payment Volume (APV) was $62,
Number of Payment Transactions 4,371 4,735 4,900 5,343 5,161 5,513 down 6% y/y, driven primarily by higher
Y/Y Growth 34% 27% 22% 21% 18% 16%
Braintree mix
• Total take rate was flat year over year.
Total Payment Volume $285,447 $310,992 $309,910 $339,530 $322,981 $339,791 Benefits from FX hedge gains, P2P mix and
Y/Y Growth 50% 40% 26% 23% 13% 9% Venmo helped offset pressure from lower
FXN Y/Y Growth 46% 36% 24% 23% 15% 13% FX fees and lower eBay volume/yield (3bps
US TPV $171,124 $188,506 $192,428 $211,323 $207,845 $219,307 drag)
Y/Y Growth 46% 42% 29% 30% 21% 16% ◦ Relative to Q1-22, Braintree accounted for
International TPV $114,323 $122,486 $117,482 $128,207 $115,136 $120,484 less pressure primarily due to volume mix
Y/Y Growth 56% 38% 21% 12% 1% (2)% and OVAS was a larger benefit
FXN Y/Y Growth 45% 26% 18% 14% 5% 8% ◦ eBay volumes declined 39% and eBay
take rate in Q2-22 was 2.13% vs. 3.22% in
Total Take Rate 2.11% 2.01% 1.99% 2.04% 2.01% 2.00% Q2-21
Transaction Take Rate 1.97% 1.86% 1.81% 1.88% 1.86% 1.85% • Transaction expense rate increase of ~8bps
year over year driven primarily by volume
Transaction Expense Rate 0.80% 0.81% 0.83% 0.87% 0.87% 0.90% mix (e.g., unbranded share gain) and funding
Transaction and Credit Loss Rate 0.10% 0.05% 0.09% 0.10% 0.11% 0.13% mix effects

Transaction Margin 57.8% 56.8% 54.2% 52.3% 50.9% 48.7%

(1) Definitions included in Supplemental Information.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 24

 Q2-22 Financial Detail
(in millions, except %) Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

Transaction Revenue $5,621 $5,797 $5,607 $6,377 $5,998 $6,272

Y/Y Growth 33% 17% 10% 12% 7% 8%
Other Value Added Services (OVAS) $412 $441 $575 $541 $485 $534
Y/Y Growth 2% 40% 50% 25% 18% 21%
*
Total Revenue $6,033 $6,238 $6,182 $6,918 $6,483 $6,806
Y/Y Growth 31% 19% 13% 13% 7% 9%
FXN Y/Y Growth 29% 17% 13% 13% 8% 10%
US Revenue Y/Y Growth 24% 23% 23% 27% 20% 18%
International Revenue FXN Y/Y Growth 35% 10% 2% (1%) (5%) 1%
% International 49% 48% 44% 44% 43% 43%

Volume-based expenses $2,548 $2,693 $2,832 $3,302 $3,186 $3,492

Non-transaction related expenses $1,812 $1,891 $1,880 $2,109 $1,954 $2,012
(1)
Total Operating Expenses $4,360 $4,584 $4,712 $5,411 $5,140 $5,504
Y/Y Growth 18% 21% 19% 17% 18% 20%

(1)
Non-GAAP Op. Income $1,673 $1,654 $1,470 $1,507 $1,343 $1,302
(1)
Non-GAAP Op. Margin % 28% 27% 24% 22% 21% 19%

(1)
Non-GAAP EPS $1.22 $1.15 $1.11 $1.11 $0.88 $0.93
Y/Y Growth 84% 8% 4% 4% (28)% (19)%

CAPEX $221 $247 $227 $213 $191 $175

(1)
Free Cash Flow $1,537 $1,059 $1,286 $1,550 $1,051 $1,291
(1) Non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP EPS, and free cash flow are non-GAAP financial measures. Please see the Supplemental Information for a reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP financial measures.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 25

Q2-22 Hedging impacts and credit reserve builds and releases

(in millions, except %) Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

(1)
Hedging Impacts
Favorable (unfavorable) impact to net revenues (exclusive of
hedging impact) $ 190 $ 237 $ 61 $ (48) $ (123) $ (242)
Hedging impact (59) (89) (44) 2 47 107
Favorable (unfavorable) impact to net revenues 131 148 17 (46) (76) (135)
Favorable (unfavorable) impact to operating expense (73) (101) (29) 22 57 131
Net favorable (unfavorable) impact to operating income $ 58 $ 47 $ (12) $ (24) $ (19) $ (4)

Credit net charge-offs, reserve builds (releases) and credit

losses
(2)
Net charge-offs $ 76 $ 52 $ 38 $ 53 $ 52 $ 60
(3)
Reserve build (release) (84) (156) (63) (9) (5) 8
Credit Losses $ (8) $ (104) $ (25) $ 44 $ 47 $ 68
(1) Foreign currency movements relative to the US dollar. We calculate the year-over-year impact of foreign currency movements on our business using prior period foreign currency exchange rates applied to
current period transactional currency amounts.
(2) Net charge-offs includes the principal charge-offs partially offset by recoveries for consumer and merchant receivables.
(3) Reserve build (release) represents change in allowance for principal receivables excluding foreign currency remeasurement.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 26

 Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
Three Months Ended Year Ended December 31,
June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
(In Millions/Unaudited) Note 2021 2020 2019
2022 2022 2021 2021 2021 2021 2020 2020 2020 2020

GAAP operating expenses:

Transaction expense $ 3,044 $ 2,817 $ 2,952 $ 2,564 $ 2,524 $ 2,275 $ 2,330 $ 2,022 $ 1,843 $ 1,739 $ 10,315 $ 7,934 $ 6,790 (a) Stock-based compensation expense.
Transaction and credit losses 448 369 350 268 169 273 366 344 440 591 1,060 1,741 1,380
Customer support and 536 534 532 504 521 518 507 449 423 399 2,075 1,778 1,615
operations (b) Employer payroll taxes on stock-
based compensation.
Sales and marketing 595 594 666 549 628 602 605 471 414 371 2,445 1,861 1,401
Technology and development 815 815 796 755 746 741 732 674 631 605 3,038 2,642 2,085
General administrative 514 607 570 498 522 524 569 503 512 486 2,114 2,070 1,711 (c) Amortization and impairment of
acquired intangible assets.
Restructuring and other changes 90 36 2 1 1 58 44 19 47 29 62 139 71
Total operating expenses $ 6,042 $ 5,772 $ 5,868 $ 5,139 $ 5,111 $ 4,991 $ 5,153 $ 4,482 $ 4,310 $ 4,220 $ 21,109 $ 18,165 $ 15,053
(d) Restructuring.

Non-GAAP operating expense

adjustments: (e) Acquisition related transaction
expense.
Customer support and operations (a) (67) (73) (58) (56) (77) (72) (71) (63) (64) (52) (263) (250) (198)
(b) — (6) (2) (1) (3) (16) (1) — (1) (7) (22) (9) (9)
(f) Net gain related to the sale of our U.S.
Sales and marketing (a) (42) (45) (41) (38) (48) (48) (41) (45) (47) (39) (175) (172) (127)
Consumer Credit receivables
(b) (1) (5) (1) (2) (5) (13) (1) (1) (3) (7) (21) (12) (12) portfolio.
(c) (53) (53) (51) (39) (39) (38) (40) (43) (44) (43) (167) (170) (135)
Technology and development (a) (129) (136) (112) (117) (147) (139) (145) (138) (133) (113) (515) (529) (420) (g) Award for a legal proceeding and
(b) (1) (12) (2) — (5) (34) (2) (1) (1) (17) (41) (21) (17) expenses related to pre-acquisition
(c) (59) (57) (58) (64) (63) (61) (61) (63) (64) (64) (246) (252) (75) contingencies of an acquired
General administrative (a) (88) (188) (120) (100) (129) (119) (130) (127) (116) (87) (468) (460) (305) company.
(b) (1) (14) (3) (2) (3) (26) (4) (1) — (14) (34) (19) (16)
(c) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (28) (28) (1) (h) Asset impairment charges for right-of-
use lease assets and related leasehold
(e) — — — — — — — — — (20) — (20) (3) improvements in conjunction with
(g) — — — — — — — — (7) (11) — (18) (23) exiting certain leased properties,
Restructuring and other charges (d) (71) (20) — — 5 (32) (35) (19) (26) (29) (27) (109) (78) charges associated with early lease
(f) — — — — — — — — — — — — 7 termination, and a charge associated
with exiting a leased property.
(h) (19) (16) (2) (1) (6) (26) (9) — (21) — (35) (30) —
Total operating expenses $ (538) $ (632) $ (457) $ (427) $ (527) $ (631) $ (547) $ (508) $ (534) $ (510) $ (2,042) $ (2,099) $ (1,412)

Non-GAAP operating expenses:

Transaction expense 3,044 2,817 2,952 2,564 2,524 2,275 2,330 2,022 1,843 1,739 $ 10,315 $ 7,934 $ 6,790
Transaction and credit losses 448 369 350 268 169 273 366 344 440 591 1,060 1,741 1,380
Customer support and 469 455 472 447 441 430 435 386 358 340 1,790 1,519 1,408
operations
Sales and marketing 499 491 573 470 536 503 523 382 320 282 2,082 1,507 1,127
Technology and development 626 610 624 574 531 507 524 472 433 411 2,236 1,840 1,573
General and administrative 418 398 440 389 383 372 428 368 382 347 1,584 1,525 1,363
Total operating expenses $ 5,504 $ 5,140 $ 5,411 $ 4,712 $ 4,584 $ 4,360 $ 4,606 $ 3,974 $ 3,776 $ 3,710 $ 19,067 $ 16,066 $ 13,641

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 27

Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin

Three Months Ended Year Ended December 31,

June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
(In Millions, Except Percentages/Unaudited) 2022 2022 2021 2021 2021 2021 2020 2020 2020 2020 2021 2020 2019

GAAP net revenues $ 6,806 $ 6,483 $ 6,918 $ 6,182 $ 6,238 $ 6,033 $ 6,116 $ 5,459 $ 5,261 $ 4,618 $ 25,371 $ 21,454 $ 17,772

GAAP operating income 764 711 1,050 1,043 1,127 1,042 963 977 951 398 4,262 3,289 2,719

Stock-based compensation expense and

related employer payroll taxes 329 479 339 316 417 467 395 376 365 336 1,539 1,472 1,104
Amortization of acquired intangible assets 119 117 116 110 109 106 108 113 115 114 441 450 211
Restructuring 71 20 — — (5) 32 35 19 26 29 27 109 78
Other 19 16 2 1 6 26 9 — 28 11 35 48 16
Acquisition related transaction expense — — — — — — — — — 20 — 20 3
Total non-GAAP operating income adjustments 538 632 457 427 527 631 547 508 534 510 2,042 2,099 1,412
Non-GAAP operating income $ 1,302 $ 1,343 $ 1,507 $ 1,470 $ 1,654 $ 1,673 $ 1,510 $ 1,485 $ 1,485 $ 908 $ 6,304 $ 5,388 $ 4,131

GAAP operating margin 11.2 % 11.0 % 15.2 % 16.9 % 18.1 % 17.3 % 15.7 % 17.9 % 18.1 % 8.6 % 16.8 % 15.3 % 15.3 %
Non-GAAP operating margin 19.1 % 20.7 % 21.8 % 23.8 % 26.5 % 27.7 % 24.7 % 27.2 % 28.2 % 19.7 % 24.8 % 25.1 % 23.2 %

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 28

 Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income, GAAP Diluted EPS to
Non-GAAP Diluted EPS, and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate
Three Months Ended Year Ended December 31,
(In Millions, Except Percentages and Per Share June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Amount/Unaudited) 2021 2020 2019
2022 2022 2021 2021 2021 2021 2020 2020 2020 2020
GAAP income before income taxes $ 49 $ 629 $ 706 $ 1,165 $ 1,356 $ 872 $ 1,859 $ 1,144 $ 1,799 $ 263 $ 4,099 $ 5,065 $ 2,998
GAAP income tax expense (benefit) 390 120 (95) 78 172 (225) 292 123 269 179 (70) 863 539
GAAP net income (loss) (341) 509 801 1,087 1,184 1,097 1,567 1,021 1,530 84 4,169 4,202 2,459
Non-GAAP adjustments to net income:
Non-GAAP operating income adjustments (see 538 632 457 427 527 631 547 508 534 510 2,042 2,099 1,412
table above)
(Gains) losses on strategic investments 672 (14) 290 (173) (283) 120 (941) (209) (888) 124 (46) (1,914) (208)
Other certain significant gains, losses, or charges 431 — — 43 (7) — — — (17) 259 36 242 230
Tax effect of non-GAAP adjustments (221) (95) (229) (65) (59) (393) 108 (45) 104 (191) (746) (24) (371)
Non-GAAP net income $ 1,079 $ 1,032 $ 1,319 $ 1,319 $ 1,362 $ 1,455 $ 1,281 $ 1,275 $ 1,263 $ 786 $ 5,455 $ 4,605 $ 3,522

Shares used in diluted share calculation:

GAAP 1,158 1,172 1,183 1,187 1,186 1,190 1,191 1,190 1,184 1,185 1,186 1,187 1,188
Non-GAAP 1,160 1,172 1,183 1,187 1,186 1,190 1,191 1,190 1,184 1,185 1,186 1,187 1,188

Net income (loss) per diluted share:

GAAP $ (0.29) $ 0.43 $ 0.68 $ 0.92 $ 1.00 $ 0.92 $ 1.32 $ 0.86 $ 1.29 $ 0.07 $ 3.52 $ 3.54 $ 2.07
Non-GAAP $ 0.93 $ 0.88 $ 1.11 $ 1.11 $ 1.15 $ 1.22 $ 1.08 $ 1.07 $ 1.07 $ 0.66 $ 4.60 $ 3.88 $ 2.96

GAAP effective tax rate 796 % 19 % (13)% 7% 13 % (26)% 16 % 11 % 15 % 68 % (2)% 17 % 18 %

Tax effect of non-GAAP adjustments to net income (782)% (2)% 22 % —% 2% 36 % (3)% 1% (2)% (56)% 13 % (5)% (2)%
Non-GAAP effective tax rate 14 % 17 % 9% 7% 15 % 10 % 13 % 12 % 13 % 12 % 11 % 12 % 16 %

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 29

 Reconciliation of Operating Cash Flow to Free Cash Flow

Three Months Ended Year Ended December 31,

June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
(In Millions/Unaudited) 2021 2020 2019 2015
2022 2022 2021 2021 2021 2021 2020 2020 2020 2020

Net cash provided by operating $ 1,466 $ 1,242 $ 1,763 $ 1,513 $ 1,306 $ 1,758 $ 1,347 $ 1,314 $ 1,772 $ 1,421 $ 6,340 $ 5,854 $ 4,071 $ 2,546
activities
Less: Purchases of property and (175) (191) (213) (227) (247) (221) (226) (241) (193) (206) (908) (866) (704) (722)
equipment
Free cash flow 1,291 1,051 1,550 1,286 1,059 1,537 1,121 1,073 1,579 1,215 5,432 4,988 3,367 1,824

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 30

Q3-22 and FY-22 GAAP and Non-GAAP Guidance

Three Months Ending (a) Estimated non-GAAP amounts for the three
September 30, 2022 months ended September 30, 2022, reflect
GAAP Non-GAAP(a) adjustments of approximately $450 million,
Revenue Growth Rate (Spot) ~10% ~10% primarily representing estimated stock-
based compensation expense and related
Revenue Growth Rate (FXN) N/A ~12%
payroll taxes of approximately $320 million
Diluted EPS $ ~$0.61-$0.63 ~$0.94-$0.96
(b) Estimated non-GAAP amounts for the
twelve months ended December 31, 2022,
Twelve Months Ending
reflect adjustments of approximately $2.1
December 31, 2022
billion, primarily representing estimated
GAAP Non-GAAP(b)
stock-based compensation expense and
Revenue Growth Rate (Spot) ~10% ~10% related payroll taxes of approximately $1.5

Revenue Growth Rate (FXN) N/A ~11% billion

Diluted EPS $ ~$1.52-$1.62 ~$3.87-$3.97

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 31

Definitions
Our key metrics are calculated using internal company data based on the activity we measure on our platform and may be compiled from multiple systems, including
systems that are organically developed or acquired through business combinations. While the measurement of our key metrics is based on what we believe to be
reasonable methodologies and estimates, there are inherent challenges and limitations in measuring our key metrics globally at our scale. The methodologies used to
calculate our key metrics require judgment.
We regularly review our processes for calculating these key metrics, and from time to time we may make adjustments to improve their accuracy or relevance. For
example, we continuously apply models, processes and practices designed to detect and prevent fraudulent account creation on our platforms, and work to improve
and enhance those capabilities. When we detect a significant volume of illegitimate activity, we generally remove the activity identified from our key metrics.
Although such adjustments may impact key metrics reported in prior periods, we generally do not update previously reported key metrics to reflect these subsequent
adjustments unless the retrospective impact of process improvements or enhancements is determined by management to be material.
Active Accounts: An active account is an account registered directly with PayPal or a platform access partner that has completed a transaction on our platform, not
including gateway-exclusive transactions, within the past 12 months. A platform access partner is a third party whose customers are provided access to PayPal’s
platform or services through such third party’s login credentials, including entities that utilize Hyperwallet’s payout capabilities. A user may register on our platform to
access different products and may register more than one account to access a product. Accordingly, a user may have more than one active account. The number of
active accounts provides management with additional perspective on the overall scale of our platform, but may not have a direct relationship to our operating results.
Daily Active Accounts: Daily Active Accounts “DAA” represent the number of Active Accounts that have completed a transaction using our core PayPal payments
products and services, including person-to-person payments transfers and checkout transactions, on a given day. DAA is presented as the average daily active
accounts during the designated period.
Number of Payment Transactions: Number of payment transactions are the total number of payments, net of payment reversals, successfully completed on our
payments platform or enabled by PayPal via a partner payment solution, not including gateway-exclusive transactions.
Number of Payment Transactions per Active Account: Number of payment transactions per active account or “TPA” reflects the total number of payment
transactions within the previous 12-month period, divided by active accounts at the end of the period. The number of payment transactions per active account
provides management with insight into the average number of times an account engages in payments activity on our payments platform in a given period.
Total Payment Volume: Total Payment Volume or “TPV” is the value of payments, net of payment reversals, successfully completed on our payments platform, or
enabled by PayPal via a partner payment solution, not including gateway-exclusive transactions.
Total Take Rate: Total take rate is total revenue divided by TPV.
Transaction Take Rate: Transaction take rate is transaction revenue divided by TPV.
Transaction Expense Rate: Transaction expense rate is transaction expense divided by TPV.
Transaction and Credit Loss Rate: Transaction and credit loss rate is transaction and credit losses divided by TPV.
Transaction Margin: Transaction margin is total revenue less transaction expense and transaction and credit losses, divided by total revenue.

©2022 PayPal Holdings, Inc. Q2-22 Investor Update • 32