Paypal Holdings, Inc. · NASDAQ:PYPL
Paypal — Q4 2024 Earnings Presentation
28 slides from Paypal's earnings presentation, Feb 4, 2025
Slide 1: PayPal Fourth Quarter 2024 Performance
PayPal Fourth Quarter 2024 Performance Financial results & company highlights February 4, 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: PayPal key messages
PayPal key messages Beginning 2025 with strong foundation for durable growth • Returned to profitable growth: TM$ ex. interest on customer balances1 +5% in FY'24 • Making progress: scaling checkout enhancements, improving PSP profitability, and monetizing Venmo • Driving scale and adoption in 2025 w
Slide 4: Scaling innovation and partnerships
Scaling innovation and partnerships PayPal Everywhere Enhanced checkout Fastlane Partnerships ©2025 PayPal Holdings, Inc. 4
Slide 5: Focus areas for 2025
Focus areas for 2025 Innovation Continue to launch products to solve customer challenges Product adoption Drive awareness and scale adoption of innovation Partnerships Establish PayPal as the leading open commerce platform Efficiency and effectiveness Focus resources into the most important initiati
Slide 6: Driving progress across key initiatives
Driving progress across key initiatives Win Scale Grow Accelerate Checkout Omni Venmo SMB Scaling highest- Building Driving adoption Solving SMB needs Definitions on slides 26-27. All data as of 4Q'24 and growth rates reference year-over-year growth. converting checkout momentum beyond of monetized
Slide 7: 4Q and FY'24 snapshot
4Q and FY'24 snapshot (in millions, except % and per share data) 4Q'24 Y/Y growth FY'24 Y/Y growth Total payment volume (TPV) $437,836 7%; 7% FXN $1,681,150 10%; 10% FXN Revenue $8,366 4%; 4% FXN $31,797 7%; 7% FXN Transaction margin $ (TM$) $3,935 7% $14,658 7% TM$ ex. interest on customer $3,603 6
Slide 8: Account and activity metrics
1 Account and activity metrics (in millions, except % and TPA) 4Q'24 FY'24 • Active accounts2 +1% (+3M) sequentially, including growth 2 Active accounts 434 434 in PayPal merchant and consumer accounts Y/Y growth 2% 2% • MAA3 +2%, driven by PayPal and Venmo consumer accounts Monthly active accounts
Slide 9: TPV mix across PayPal's payments platform
TPV mix across PayPal’s payments platform 4Q'23 4Q'24 FY'23 FY'24 Prior year period Current quarter Prior year Current year • Branded checkout TPV +6%, FXN driven by continued strength GROWTH 5% 6% 6% 6% Branded checkout across large enterprise % OF TOTAL 30% 30% 29% 28% platforms and marketplaces F
Slide 10: 4Q'24 key financial results
4Q'24 key financial results (in millions, except % and per share data) 4Q'24 FY’24 • Transaction revenue +4%, driven by branded checkout and Total revenue $8,366 $31,797 Venmo Y/Y growth 4% 7% • Other value-added services (OVAS) revenue +5%, driven by interest on customer balances and a return to gr
Slide 11: Guidance
Guidance 1Q'25 FY'25 $3.60B - $3.65B $15.2B - $15.4B Transaction margin $ Transaction margin $ 4% - 5% growth 4% - 5% growth Includes ($150M) from lower interest on customer balances2 Non-GAAP effective tax rate Approximately 25% At least 5% TM$ growth ex. interest on customer balances $1.15 - $1.17
Slide 12: Demonstrating the strength of PayPal's global commerce platform
Demonstrating the strength of PayPal’s global commerce platform • Delivered strong FY'24 results, including +5% TM$ ex. interest on customer balances1, while building momentum and foundation for durable growth • Focused on scaling adoption while driving innovation and efficiency in FY'25 • More to c
Slide 13: Q&A
Q&A ©2025 PayPal Holdings, Inc. 13
Slide 14: Supplemental information
Supplemental information ©2025 PayPal Holdings, Inc. 14
Slide 15: TPV, revenue, & take rate detail
TPV, revenue, & take rate detail (in millions, except %) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 • International TPV +7% FXN, driven by Total payment volume $387,701 $409,832 $403,860 $416,814 $422,641 $437,836 Y/Y growth 15% 15% 14% 11% 9% 7% continued strength in Europe FXN Y/Y growth 13% 13% 14% 11%
Slide 16: Account and activity metrics detail
1 Account and activity metrics detail (in millions, except % and TPA) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Active accounts 429 429 432 435 433 431 428 426 427 429 432 434 Y/Y growth 9% 6% 4% 2% 1% —% (1%) (2%) (1%) —% 1% 2% Monthly active accounts (MAA) 214 215 217
Slide 17: Transaction margin (TM) detail
Transaction margin (TM) detail (in millions, except %) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Transaction expense (TE) $3,603 $3,958 $3,917 $3,942 $3,841 $3,997 TE rate 0.93% 0.97% 0.97% 0.95% 0.91% 0.91% • TE rate -5bps, driven by favorable product mix Transaction loss (TL) $329 $277 $260 $259 $264 $3
Slide 18: Non-GAAP operating margin detail
1 Non-GAAP operating margin detail (in millions, except %) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Customer support and operations $474 $465 $454 $436 $427 $451 Y/Y growth (7%) (14%) (7%) (11%) (10%) (3%) Sales and marketing $400 $425 $379 $406 $468 $586 Y/Y growth (18%) (9%) (4%) (4%) 17% 38% Technolog
Slide 19: Free cash flow (FCF) and capital allocation detail
Free cash flow (FCF) and capital allocation detail (in millions, except %) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 • Free cash flow of $2.2B, which includes a $0.1B Free cash flow $1,101 $2,469 $1,763 $1,368 $1,445 $2,191 net positive timing impact between Y/Y growth (30%) 72% 76% ** 31% (11 %) Adjusted
Slide 20: Hedging impacts and credit reserve builds and releases
Hedging impacts and credit reserve builds and releases (in millions, except %) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 (1) Hedging Impacts Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $ 141 $ 120 $ 32 $ (33) $ 12 $ (29) Hedging impact 7 (6) — 22 (12) 38 Favorable (unfavor
Slide 21: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations ©2025 PayPal Holdings, Inc. 21
Slide 22: 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, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, (In Millions/Unaudited) Note 2024 2023 2022 2024 2024 2024 2024 2
Slide 23: Reconciliation of GAAP operating income to non-GAAP operating income
Reconciliation of GAAP operating income to non-GAAP operating income, and GAAP operating margin to non-GAAP operating margin Three Months Ended Year Ended December 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, 2024 2023 202
Slide 24: Reconciliation of GAAP net income to non-GAAP net income
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 December 31, September 30, June 30, March 31
Slide 25: Reconciliation of operating cash flow to free cash flow
Reconciliation of operating cash flow to free cash flow and adjusted free cash flow Three Months Ended Year Ended December 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, (In Millions/Unaudited) 2024 2023 2022 2024 2024 2024
Slide 26: 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 27: 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 TPV comprises PayPal brande
Slide 28: Upcoming calendar
Upcoming calendar Investor Day February 25, 2025 First Quarter 2025 Earnings April 29, 2025 Second Quarter 2025 Earnings July 29, 2025 Third Quarter 2025 Earnings October 28, 2025 ©2025 PayPal Holdings, Inc. 28