Paypal Holdings, Inc. · NASDAQ:PYPL
Paypal — Q1 2025 Earnings Presentation
27 slides from Paypal's earnings presentation, Apr 29, 2025
Slide 1: PayPal First Quarter 2025 Performance
PayPal First Quarter 2025 Performance Financial results & company highlights April 29, 2025
Slide 2: Non-GAAP Financial Measures, Growth Rates, Forward-Looking Statements
Non-GAAP Financial Measures 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 fin
Slide 3: 1Q'25: Building on strong foundation to start the year
1Q'25: Building on strong foundation to start the year • Driving continued profitable growth: TM$ ex. interest on customer balances1 +7%, accelerating from 4Q • Executing on strategy: branded experiences TPV +8% and branded online checkout TPV+6% ex-Leap Day ◦ New checkout2 now on >45% US transactio
Slide 4: Advancing strategic growth drivers
Advancing strategic growth drivers Win checkout Scale omni and Drive PSP Scale next-gen grow Venmo profitability growth vectors Scaling highest-converting Building momentum beyond Selling our strong suite of Leveraging the strength of checkout experiences ecommerce value-added services our platform
Slide 5: 1Q'25 snapshot
1Q'25 snapshot (in millions, except % and per share data) Results Y/Y growth Total payment volume (TPV) $417,208 3%; 4% FXN Revenue $7,791 1%; 2% FXN Transaction margin $ (TM$1) $3,716 7% TM$ ex. interest on customer balances1,2 $3,418 7% Non-GAAP EPS1 $1.33 23% Adjusted free cash flow1,3 $1,381 (26
Slide 6: Account and activity metrics
1 Account and activity metrics (in millions, except % and TPA) 1Q'25 Active accounts2 436 • Active accounts2 and MAA3 +2%, with contributions from both Y/Y growth 2% PayPal consumer accounts and Venmo Monthly active accounts (MAA)3 224 • Number of payment transactions -7% and TPA4 -1 %, reflecting p
Slide 7: TPV mix across PayPal's platform
TPV mix across PayPal’s platform 1Q'24 4Q'24 1Q'25 Prior year period Prior quarter Current quarter • Branded checkout TPV FXN growth driven by GROWTH 6%; 5% ex Leap Day 6% 4%; 6% ex Leap Day Branded checkout (online) 1 continued strength % OF TOTAL 30% 32% 29% across large enterprise platforms, mark
Slide 8: 1Q'25 key financial results
1Q'25 key financial results (in millions, except % and per share data) 1Q'25 • Within total revenue, transaction revenue flat vs. 1Q’24, with Total revenue $7,791 branded checkout and Venmo growth offsetting lower Braintree revenue, and other value-added services (OVAS) revenue +17%, Y/Y growth 1% d
Slide 9: Maintaining FY'25 TM$ & EPS guidance
Maintaining FY'25 TM$ & EPS guidance 2Q'25 FY'25 $15.2B - $15.4B Transaction margin $ $3.75B - $3.80B Transaction margin $ 4% - 5% growth 4% - 5% growth 6% - 7% growth ex. interest on customer Includes ($150M) from lower interest on customer balances1 balances1 5% - 7% growth ex. interest on custome
Slide 10: Demonstrating the strength of PayPal's global commerce platform
Demonstrating the strength of PayPal’s global commerce platform • Delivered another quarter of profitable growth: TM$ ex interest on customer balances1 +7% • Making meaningful progress on our strategic transformation, focused on driving scale and adoption of innovations to deliver for our customers
Slide 11: PayPal is building the next-generation commerce platform; Q&A
PayPal is building the next- generation commerce platform Power Pay payments everywhere Q&A Drive growth Pay your way Operate Get the smarter most value Online In-store Agentic ©2025 PayPal Holdings, Inc. 11
Slide 12: Supplemental information
Supplemental information ©2025 PayPal Holdings, Inc. 12
Slide 13: TPV, revenue, & take rate detail
TPV, revenue, & take rate detail (in millions, except %) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 • U.S. TPV +4%, driven by Venmo, payouts, and Total payment volume $409,832 $403,860 $416,814 $422,641 $437,836 $417,208 Y/Y growth 15% 14% 11% 9% 7% 3% branded checkout, partly offset by Braintree FXN Y/Y g
Slide 14: TPV mix detail
TPV mix detail 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 FY'23 FY'24 FXN GROWTH 6%; 5% ex 5% 5% 6% 4%; 6% ex 5% 6% 1 Leap Day Leap Day Branded checkout (online) % OF TOTAL 30% 29% 29% 32% 29% 31% 30% FXN GROWTH 7% 7% 7% 9% 8% 3% 7% 2 P2P & other consumer % OF TOTAL 25% 26% 26% 25% 27% 26% 26% FXN GROWTH 24% 18%
Slide 15: Account and activity metrics detail
Account and activity metrics detail (in millions, except % and TPA) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 1 • Active accounts1 and MAA2 +2%, with Active accounts 426 427 429 432 434 436 contributions from both PayPal consumer Y/Y growth (2%) (1%) —% 1% 2% 2% Monthly active accounts (MAA)2 223 220 221
Slide 16: Transaction margin (TM) detail
Transaction margin (TM) detail (in millions, except %) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 • TE rate -8bps, driven by favorable product Transaction expense (TE) $3,958 $3,917 $3,942 $3,841 $3,997 $3,704 and merchant mix TE rate 0.97% 0.97% 0.95% 0.91% 0.91% 0.89% Transaction loss (TL) $277 $260 $259
Slide 17: Non-GAAP operating margin detail
1 Non-GAAP operating margin detail (in millions, except %) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Customer support and operations $465 $454 $436 $427 $451 $398 Y/Y growth (14%) (7%) (11%) (10%) (3%) (12%) Sales and marketing $425 $379 $406 $468 $586 $448 Y/Y growth (9%) (4%) (4%) 17% 38% 18% Technology
Slide 18: Free cash flow (FCF) and capital allocation detail
Free cash flow (FCF) and capital allocation detail (in millions, except %) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 • Free cash flow includes negative impacts from Free cash flow $2,469 $1,763 $1,368 $1,445 $2,191 $964 the timing between originating European Y/Y growth 72% 76% ** 31% (11%) (45%) Adjusted
Slide 19: Hedging impacts and credit reserve builds and releases
Hedging impacts and credit reserve builds and releases (in millions, except %) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 (1) Hedging Impacts Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $120 $32 $(33) $12 $(29) $(104) Hedging impact (6) — 22 (12) 38 35 Favorable (unfavorabl
Slide 20: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations ©2025 PayPal Holdings, Inc. 20
Slide 21: Reconciliation of GAAP operating expenses to non-GAAP operating expenses
Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended Year Ended December 31, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, (In Millions/Unaudited) Note 2024 2023 2022 2025 2024 2024 2024 2024
Slide 22: Reconciliation of GAAP operating income to non-GAAP operating income, transaction margin
Reconciliation of GAAP operating income to non-GAAP operating income, Transaction margin dollars, and Transaction margin dollars ex-interest on customer balances and GAAP operating margin to non-GAAP operating margin and Transaction margin Three Months Ended Year Ended December 31, March 31, Decembe
Slide 23: Reconciliation of GAAP net income to non-GAAP net income and EPS
Reconciliation of GAAP net income 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 March 31, December 31, September 30, June 30, Marc
Slide 24: Reconciliation of operating cash flow to free cash flow and adjusted free cash flow
Reconciliation of operating cash flow to free cash flow and adjusted free cash flow Three Months Ended Year Ended December 31, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, (In Millions/Unaudited) 2024 2023 2022 2025 2024 2024 2024
Slide 25: Definitions (page 1 of 2)
Definitions (page 1 of 2) Our key metrics are calculated using internal company data based on the activity we measure on our payments platform and compiled from multiple systems, including systems that are internally developed or acquired through business combinations. While the measurement of our k
Slide 26: Definitions (page 2 of 2)
Definitions (page 2 of 2) 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. Branded checkout (online) TPV comprises PayP
Slide 27: Upcoming calendar
Upcoming calendar Second Quarter 2025 Earnings July 29, 2025 Third Quarter 2025 Earnings October 28, 2025 ©2025 PayPal Holdings, Inc. 27