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Investor Presentaiton

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 (In Millions, Except Percentages and Per Share Amount/Unaudited) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, December September 2022 31, 2021 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 2022 2021 Year Ended December 31, 2020 2019 2017 2015 GAAP income before income taxes $ 1,074 $ 1,110 $ 1,578 $ 49 $ 629 $ 706 GAAP income tax expense (benefit) 279 189 248 390 120 (95) $ 1,165 78 $ 1,356 $ 872 $ 1,859 $ 3,366 $ 4,099 172 (225) 292 947 (70) $ 5,065 863 $ 2,998 539 $ 2,200 405 $ 1,488 260 GAAP net income (loss) 795 921 1,330 (341) 509 801 1,087 1,184 1,097 1,567 2,419 4,169 4,202 2,459 1,795 1,228 Non-GAAP adjustments to net income: Non-GAAP operating income adjustments (see table above) 601 449 414 538 632 457 427 527 631 547 2,033 2,042 2,099 1,412 628 514 (Gains) losses on strategic investments (48) 141 (495) 672 (14) 290 (173) (283) 120 (941) 304 (46) (1,914) (208) Other certain significant gains, losses, or charges 18 (21) 431 43 (7) 410 36 242 230 224 Separation (Other income (expense), net) (12) Tax effect of non-GAAP adjustments Non-GAAP net income (40) (73) 5 (221) (95) (229) (65) (59) (393) 108 (384) (746) (24) (371) (329) (142) $ 1,326 $ 1,417 $ 1,254 $ 1,079 $ 1,032 $ 1,319 $ 1,319 $ 1,362 $ 1,455 $ 1,281 $ 4,782 $ 5,455 $ 4,605 $ 3,522 $ 2,318 $ 1,588 Shares used in diluted share calculation: GAAP 1,134 1,144 1,157 1,158 1,172 1,183 1,187 1,186 1,190 1,191 1,158 1,186 1,187 1,188 1,221 1,229 Non-GAAP 1,134 1,144 1,157 1,160 1,172 1,183 1,187 1,186 1,190 1,191 1,158 1,186 1,187 1,188 1,221 1,229 Net income (loss) per diluted share: GAAP $ 0.70 $ 0.81 $ 1.15 $ (0.29) $ 0.43 $ 0.68 $ 0.92 $ 1.00 $ 0.92 $ 1.32 $ 2.09 $ 3.52 $ 3.54 $ 2.07 $ 1.47 $ 1.00 Non-GAAP $ 1.17 $ 1.24 $ 1.08 $ 0.93 $ 0.88 $ 1.11 $ 1.11 es $ 1.15 $ 1.22 $ 1.08 $ 4.13 $ 4.60 $ 3.88 $ 2.96 $ 1.90 $ 1.29 GAAP effective tax rate 26% 17 % 16 % 796 % 19% (13)% 7% 13 % (26)% 16% 28 % (2)% 17 % 18% 18% 17% Tax effect of non-GAAP adjustments to net income (7)% ― % ― % (782)% (2)% 22% ― % 2% 36 % (3)% (12)% 13% (5)% (2)% ― % 3% Non-GAAP effective tax rate 19 % 17% 16 % 14 % 17 % 9% 7% 15% 10 % 13 % 16% 11 % 12 % 16% 18 % 20% PayPal ©2023 PayPal Holdings, Inc. Q1-23 Investor Update • 29
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