PayPal Holdings, Inc.

Good afternoon, my name is Sarah and I will be your conference operator today. At this time, I would like to welcome everyone to PayPal Holdings Earnings Conference Call for the fourth quarter 2023. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to introduce your host for today's call, Ryan Wallace, Head of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining PayPal's fourth quarter 2023 earnings conference call. Joining me today is Alex Criss, our President and CEO, and Jamie Miller, CFO. We're providing a slide presentation to accompany our commentary. This conference call is also being webcast. Both the presentation and call are available on our investor relations website. In discussing our company's performance, we will refer to some non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in the presentation accompanying this conference call. Our remarks today will include forward-looking statements that are based on our current expectations, forecasts, and assumptions, and involve risks and uncertainties. Our actual results may differ materially from these statements. You can find more information about risks, uncertainties, and other factors that could affect our results in our most recent annual report on Form 10-K and quarterly report on Form 10-Q, filed with the SEC and available on our Investor Relations website. All information in this presentation is as of today's date. We expressly disclaim any obligation to update this information. And with that, let me turn the call over to Alex.

Thank you, Ryan, and thank you to everyone for joining us this afternoon. It's been a productive first four months. I'm pleased with what we've been able to accomplish in such a short period of time while delivering the solid financial results we will discuss today. More importantly, I'm excited about the foundation we're setting and the velocity at which we're executing as we enter 2024. Today, I'd like to walk you through the changes we've made to the structure of our company, including several key additions to our leadership team, give a clear roadmap for how we will be executing going forward, and share our strategic priorities for 2024. Jamie will take you through the fourth quarter and full year results in greater detail, but the headline is that we delivered a solid quarter during the most important shopping season for our customers. In Q4, We delivered 9% revenue growth on $410 billion in total payment volume. Transaction margin dollar performance was better than expected in the fourth quarter, and we continued strong expense discipline, reducing non-transaction related expenses by 9% year over year. Taken together with $600 million in share repurchases in the quarter, our non-GAAP earnings per share increased 19% year over year. While these are solid results, we know there is still much room for improvement, and we're committed to making the necessary changes to our business and how we invest and operate to get it right. One of the key changes I talked about in our last earnings call was ensuring we have an outstanding leadership team in place. It's important to me that we have a leadership team with a broad diversity of experience, deep operational rigor, and leaders with track records of success. I'm thrilled with the talent that we've assembled in the last few months. With Jamie as our new CFO, Isabel Cruz leading people and places, Michelle Gill leading small business and financial services, Susan Carreri leading global markets, Diego Scotti leading consumer and global marketing and communications, combined with talented leaders who have risen within PayPal, we have a world-class leadership team in place help the organization reach its full potential. Each of these leaders chose to join PayPal because they see the tremendous opportunity we have in front of us to reshape commerce, and they're already driving a renewed energy within the company. Second, we've organized our teams around the customers we serve, consumers, small businesses, and enterprises. This creates clear lines of accountability and will enable teams to focus on delivering the right solutions that address our customers' greatest needs. Regardless of the customer we're serving, we want to make the PayPal offering so user-friendly, so rewarding, and so integrated into a customer's life that PayPal is the obvious choice.