Emerging Trends and Challenges

$180.0
$160.0
$140.0
$120.0
$100.0
$80.0
$60.0
$40.0
$20.0
$0.0
$9.0
$8.0
$7.0
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
95%
85%
75%
65%
55%
45%
35%
25%
15%
5%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
$1.2
$1.0
$0.8
$0.6
$0.4
$0.2
$0.0
$250.0
$200.0
$150.0
$100.0
$50.0
$0.0
220%
170%
120%
70%
20%
-30%
-80%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
PayPal Acquires Xoom for $890 mm
PayPal: Financial Overview
PayPal’s
consistent
revenue and total
payment volume
growth is due in
large part to its
success in
establishing its
products and
services outside
of the U.S.
($ in bn)
$3.4
PayPal Revenues / % Growth
$8.0
$6.7
$5.7
$4.4
29% 30%
18% 19%
($ in bn)
$92.0
Total Payment Volume / % Growth
$227.9
$179.7
$144.9
$118.8
22% 24% 27%
29%
2014 Net Revenues
2010 2011 2012 2013 2014
Total Payment Volume – Merchant Services / % Growth
($ in bn)
$168.4
2010 2011 2012 2013 2014
($ in bn)
Net Income / % Growth
$1.0
48.3%
51.7%
$97.0
$125.0
$0.8
US
International
$56.0
$78.0
39%
24%
29%
35%
$0.4
$0.5
31%
69%
23%
$0.4
(1)
-56%
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
Source: SEC Filings, Company press releases.
(1) Decrease in net income in 2014 was attributable to an increase in income tax expenses of $713 mm resulting from the recognition of deferred tax liabilities relating to
undistributed foreign earnings of subsidiaries.
96