PayPal Holdings, Inc.

in our best view of the world and our businesses as we see them today. As described in our earnings press release, SEC filings, and on our website, those elements may change as the world changes. Now over to you, Alex.

Thanks, Steve. We had a strong first quarter as we began to execute on the strategy we laid out during our recent investor day. PayPal is transforming from a payments company to a commerce platform. This includes expanding to be available everywhere, whether it's online, in-store, or agentic. This means moving from a one-size-fits-all experience to personalized experiences that leverage the vast data at our fingertips. We are developing a dynamic smart wallet that will allow consumers to make the smartest choice in how to pay and get rewarded. With this transformation, we are shifting from being purely a payments processor to an end-to-end strategic commerce partner for our merchants. And underpinning this is our work to converge into a single PayPal platform that unlocks the full potential of PayPal's two-sided network in support of both consumers and merchants. This strategy is durable and positions us to win in the months and years ahead. Turning to Q1, we have so much to be proud of. Let me share just a few highlights. Our strategy is designed to improve PayPal's profitability over time. In Q1, we delivered our fifth consecutive quarter of profitable growth, with transaction margin dollars growing by 8%, excluding the impact from last year's leap day. That growth was driven by multiple sources across our strategic initiatives, including Omnichannel Commerce, both online branded checkout and offline branded payment methods, Venmo, and PSP. As a result of this focus on profitability, non-GAAP earnings per share increased 23% year over year. Additionally, PayPal and Venmo are being used by more people more often. Both total active accounts and monthly active accounts grew a healthy 2% in the quarter. Transactions per active account, XPSP, grew 4%. reflecting improved engagement and transaction growth in online branded checkout and Venmo. As we expand our offerings from online to everywhere, the best way to see the traction we're gaining is through branded experiences TPV. Branded experiences comprises volume from PayPal and Venmo online checkout, as well as branded in-store payment methods like debit and tap to pay. In Q1, Branded Experiences TPV grew 8%, excluding last year's Leap Day. That's a full two points higher than Branded Experiences growth for the full year of 2024, highlighting the growing contribution of our omnichannel initiatives. It's still early days, but we are very proud of this progress. Within Branded Experiences, we're continuing to accelerate the rollout of our upgraded online branded checkout flows. This includes our simplified and modernized pay sheet design with streamlined login and reduced latency. Since the beginning of the year, we've driven a 25-point jump to more than 45% of US checkout traffic. This shows we can execute, and we anticipate an even faster rollout for Europe starting in the second quarter. And finally, Venmo had another standout quarter. We hit an important inflection point for Venmo monetization with 20% revenue growth, driven by our push to make Venmo one of the best ways to pay online and in-store. These are only a few examples of the strength we're seeing in the execution of our strategy. We're feeling the excitement of our innovations in the market and the engagement from our consumers and merchant partners, and we're just getting started. As you can hear, I'm encouraged by the momentum we are driving. we had a great start to the year and expect a solid second quarter, which would result in the first half coming in above our prior expectations. However, given it is early in the year and because of the current level of macro uncertainty, we are maintaining our guidance for the full year at this time. Jamie will provide more color on our results and guidance in her remarks. Let me now go into the details of the progress we're making on our strategic growth drivers. starting with wind checkout. Online branded checkout TPV, including PayPal and Pay with Venmo, grew nearly 6% this quarter, accounting for last year's leak day. We're proud of this growth and expect it to increase over time as more traffic flows through our upgraded experience. One of the main benefits of our upgraded experience is the modernized pay sheet, which improves the presentment of our full suite of payment options. This contributes to a personalized experience where consumers can more easily pay their own way, whether now with balance, cards, crypto, or buy now, pay later. What we're seeing is that as we improve the presentment of BNPL in checkout, it's being selected more often. In Q1, BNPL volume grew more than 20%, and monthly active accounts grew 18% year over year. highlighting the effectiveness of the new design and the strength of our value proposition. As a reminder, BNPL users spend 33% more on average and conduct 17% more transactions. BNPL is featured in our latest marketing efforts with Will Ferrell about PayPal's flexible online checkout, and we are focused on winning in key markets. We will continue to lean into BNPL throughout this year with targeted consumer awareness campaigns in the UK and Germany, and continued investment in other priority global markets, including Australia, France, Italy, and Spain. Pay with Venmo is resonating well with consumers and merchants, and it's growing rapidly with TPV increasing more than 50%. Monthly active accounts grew 30% as we increased merchant availability. For example, in January, JetBlue became the first airline to accept Venmo for bookings. We're seeing strong selection from Venmo's valuable demographic at major brands such as Domino's, Instacart, and TikTok shop. I expect more demographic relevant merchants to offer pay with Venmo over the coming quarters. Let's move to the progress we are making to become omnichannel, serving our customers everywhere they want to shop with PayPal and Venmo. As I noted earlier, branded experiences TPV grew 8% in the quarter, excluding last year's leap day. This growth reflects our strategy to deliver flexible and rewarding experiences that connects consumers to the things and experiences they want and love wherever they shop. Today, our PayPal and Venmo debit cards are enabling our customers to use their balance to shop anywhere cards are accepted. Adoption is strong and growing, with approximately 2 million first-time PayPal and Venmo debit card users in the quarter, an increase of nearly 90% from last year. Debit card TPV grew approximately 64% in the first quarter. Venmo debit card monthly active accounts grew nearly 40%, and penetration has increased to 6% of Venmo MAAs. We are focused on getting these products into the hands of even more of our customers because they allow them to choose PayPal and Venmo as their way to pay more often. In the first quarter, users who adopted the PayPal debit card transacted nearly six times more and generated more than two times the average revenue per account compared to those who used online branded checkout only. There is also a halo effect where debit card users choose PayPal more often in online branded checkout. Our omni-channel strategy is showing early success in the U.S., and we are excited to replicate it internationally. We are on track to launch NFC capabilities in Germany later this quarter and bring PayPal everywhere to the U.K. in Q3. Moving to our PSP business, which remains a key driver of transaction margin dollar growth, We continue to build deeper relationships with the world's largest brands and sell our strong suite of value-added services. That is a massive, untapped and margin-rich opportunity. I'll share two examples. We recently scaled our optimized debit routing with Wayfair and Upwork. This service routes eligible debit cards through lower-cost debit networks, which helps merchants reduce their transaction fees. Regal Cinemas has adopted our Fraud Protection Advanced Service, which allows merchants to leverage PayPal's decades of fraud intelligence and advanced machine learning to improve their risk decisions and capture even more revenue. Let me give you an example of how this focus on adoption of value-added services can improve the end-to-end relationship and margin profile of our largest customers. Recently, we expanded our relationship with a longtime Braintree merchant. By focusing on price-to-value and processing, attachment of advanced risk capabilities, and leading-edge branded solutions like Payment Ready API, we were able to improve merchant performance and profitability. We took this merchant from unprofitable to profitable, improving their transaction margin nearly 20 percentage points over the course of a year. These are the kinds of conversations we're having that drive value for our customers and for PayPal. Because of the quality of our value-added services, we expect these types of improvements to continue over the next few years. For small businesses, we continue to migrate volume onto PayPal Complete Payments. Today, nearly half of SMB processing and checkout volume is on this platform, which is steady progress from last quarter. Bringing more SMBs into the stack enables them to easily access our latest online branded checkout and new products like Fastlane, and we've seen incremental product adoption increase by 33% as a result. Next, PayPal is leveraging our two-sided ecosystem in ways we've never before to innovate and build the future of commerce. Whether it's AI, personalization, ads, or crypto, we are providing our customers with the most advanced ways to engage in a shopping experience. These initiatives are in the early stages but unlock significant growth potential for us in the years ahead. Take AI, for instance. At Investor Day, I told you we were leaning into agentic commerce. I asked you to imagine what a future would look like where AI agents could bring up the right products at the right time and complete your purchase. Thanks to rapid developments, that future is here. Just a few weeks ago, we launched the industry's first remote MCP server and enabled the leading AI agent frameworks to seamlessly integrate with PayPal APIs. Now, any business can create agentic experiences that allow customers to pay, track shipments, manage invoices, and more, all powered by PayPal and all within an AI client. As we speak, developers are gathering at our San Jose headquarters for our annual developer days. Every major player in AI is represented. providing demos and engaging with our developer community. The future of commerce will have a strong agentic presence and we're excited about leading the charge. PayPal Ads is continuing to lay the foundation for a robust and highly differentiated ads business that will create more personalized shopping experiences. We're leveraging our extensive cross merchant transaction data and customer insights to develop a platform that improves discovery for consumers and helps merchants reach more shoppers. We recently expanded PayPal ads internationally with our launch in the UK. And today we are launching offsite ads, which are ads informed by our insights placed outside of the PayPal platform. This will allow PayPal to help brands find the right user at the right time. And it is built with the privacy in mind. We are working to rapidly accelerate advertiser onboarding as we continue to grow ads. Crypto is another area we're making strides. We're moving quickly to bring the benefits of crypto and stablecoins to our customers and the industry. Last week, we introduced the ability to earn rewards for holding PYUSD. This will increase the adoption and use of digital currencies for everyday commerce, from sending money internationally to making purchases and more. We've also strengthened our relationships with major crypto players like Coinbase, so people can more easily access and use PYUSD. As I close my remarks, I want to again highlight how proud I am of our team and the focused execution and innovation we are driving. To reinforce this point, let me bring together Venmo's strength in the first quarter as an example. We've leaned into Venmo, and the investment is starting to pay off. The Venmo user base continued to expand and we're growing monthly active accounts mid single digits. Pay with Venmo TPV grew more than 50% and MAAs grew 30%. Venmo debit card MAAs grew nearly 40% and penetration has increased to 6% of Venmo MAAs. That's up from 4% a year ago. When you add it all up, the Venmo business grew revenue by 20%. That's sequential double-digit growth and the highest rate we've achieved in years. Our execution muscle is growing stronger by the day, and we're just getting started. To recap, we had a great first quarter. We are confident in our ability to execute the strategy we laid out as we enter the year. With our clear strategy, strong balance sheet, high free cash flow conversion, and traction and execution, We have a solid foundation that allows us to navigate uncertain times and invest in our long-term growth. With that, over to Jamie.

Thanks, Alex. Moving to slide five, PayPal delivered a strong quarter to start the year. Our results reflect another positive step forward with multiple drivers contributing to an acceleration in profitable growth. We are improving our speed and focus across the organization. working hard to transform the company while improving our value proposition for consumers and merchants. Excluding interest on customer balances, transaction margin dollars grew 7% or 8% ex-Leap Day, accelerating from last quarter. We outperformed the TM dollars and EPS guidance we provided in February with upside driven by a combination of sources, including PSP profitability, Venmo, credit, and transaction expense improvement, and a more favorable tax rate. Non-GAAP earnings per share were $1.33 in the quarter, up 23%, and PayPal generated $1 billion of free cash flow in the first quarter, bringing trailing 12-month free cash flow to $6 billion. Adjusted free cash flow, which excludes the net timing impact between originating and selling European Buy Now, Pay Later receivables, was $1.4 billion in the first quarter and $6.2 billion over the past 12 months. Turning to slide six, total active accounts increased by about 1.5 million from the fourth quarter and over 8 million versus the prior year's first quarter to 436 million. Monthly active accounts continue to show steady progress, up 2% year over year to 224 million with contributions from PayPal consumer accounts and Venmo. Transactions per active account excluding PSP processing grew 4%. Moving to slide seven, Total payment volume grew 3% at spot and 4% on a currency neutral basis to $417 billion. As we highlighted at our investor day in February, this slide now includes a simpler and more relevant TPV breakout. This view reflects how we think about our product portfolio today, the go-forward strategy, and our customer needs. Looking across these categories, we are encouraged to see signs that both consumers and merchants are expanding how and where they use PayPal. Winning checkout remains our most critical priority, and our teams remain laser focused on advancing the many initiatives that reinforce our checkout business. In the first quarter, online branded checkout volumes grew more than 4% on a currency neutral basis. And excluding last year's Leap Day, which contributed over a point to growth, online branded checkout volumes increased nearly 6%. Branded experiences TPV, which includes online checkout, PayPal, and Venmo debit, as well as tap-to-pay, grew 8% ex-Leap Day, accelerating from the prior year. We're excited about this momentum as we work to drive greater awareness that both PayPal and Venmo are ways to pay any time and any place. Ultimately, our goal is to form deeper consumer relationships, driving habituation across online and offline channels. Turning to PSP, which spans both large enterprise and SMB processing, as well as parts of our vast portfolio like payouts, invoicing, and point of sale solutions, volume grew 2% compared to 6% in the fourth quarter. As we've discussed throughout the past year, the shape of this growth is intentional. We are prioritizing healthy, quality growth within our Braintree business and have made deliberate choices to shift away from unprofitable volume. Shifting away from this volume pressures gross revenue but is accretive to transaction margin dollars and should result in more than one point of TM benefit this year. We continue to expect this benefit to build over time as we drive more value-added services. Moving to more financial detail on slide eight, transaction revenue was flat on a spot basis or up 1% on a currency neutral basis to $7 billion, driven primarily by branded checkout, Venmo, and SMB processing. This growth was offset by the shift away from unprofitable Braintree volume that I just mentioned. Importantly, other value-added services revenue grew 17% to $775 million, driven primarily by healthy performance in consumer and merchant credit. We ended the quarter with $6.5 billion in net loan receivables, up 1% sequentially, and we continue to be pleased with the quality, the diversification, and the performance of our credit portfolio. We take a prudent approach to managing the portfolio's exposure, and our goal is to sustain a balance sheet-like business model while providing our customers with more ways to manage their cash flow, spending, and borrowing needs. Transaction take rate declined by six basis points to 1.68%, driven largely by product and merchant mix. The two largest drivers of this change were momentum and payouts, and shifting away from unprofitable volume on Braintree, some of which carries a higher growth take rate due to card funding. There was also impact from faster growth of large enterprise volume within branded checkout, adoption of the PayPal debit card, and growth of Venmo and PayPal P2P. These are positive trends for our business, demonstrating the relevance and importance of PayPal to consumers and merchants around the globe as well as the progress we are making to improve profitability. Our focus on profitable growth and the progress we are making across our strategic growth drivers is most clearly demonstrated by the acceleration in transaction margin dollar growth that we have delivered over the past year. Branded checkout, PSP, and value-added services, credit, and Venmo were all meaningful contributors to transaction margin dollar growth in the quarter. These drivers also include improvement in transaction expense. Transaction margin rate increased by more than 270 basis points year over year, reflecting our focus on price to value and profitable growth. Non-transaction related OPEX increased 2% as we continue to actively manage our cost structure while reinvesting in key growth initiatives. This includes marketing to support the rollout of new products and initiatives. Non-GAAP operating income grew 16% in the quarter to $1.6 billion, and non-GAAP operating margin increased about 260 basis points to 20.7%. In the quarter, we completed $1.5 billion in share repurchases, bringing share repurchases over the past four quarters to $6 billion. Finally, we ended the quarter with $15.8 billion in cash, cash equivalents, and investments, and $12.6 billion in debt. Moving to guidance on slide 9 for the second quarter and the full year of 2025, our teams are focused on execution and capturing the opportunity in front of us. We are confident that our scale, diversification, and balance sheet enable us to keep advancing our strategic growth drivers through different operating environments. As we continue making progress on PayPal's transformation, we have multiple growth levers and are well positioned to help merchants and consumers navigate the environment. Importantly, with a strong first quarter behind us and a good start to the second, we believe we are on pace to outperform our original expectations for the first half of 2025. At the same time, given uncertainty in the environment, and the potential for a wide range of outcomes, we are appropriately cautious. Consumer spending and the labor market have proven resilient, but it remains to be seen how tariffs and other trading friction will impact global economic activity, consumer spending, and supply chains over time. As Alex mentioned, despite our strong start to the year, we're maintaining our full-year guidance. and this guidance now implicitly builds some incremental flexibility into the second half of the year for macroeconomic uncertainty. Throughout different macro environments, we will remain focused on making the right long-term decisions for the business, striking an appropriate balance between investment and productivity. For the second quarter, we expect low- to mid-single-digit revenue growth on a currency-neutral basis, which is impacted by the Braintree renegotiation efforts I discussed earlier. We've seen a good start to April and are watching trends closely. Tariff related concerns and news flow have likely resulted in some spend being pulled forward for certain verticals in the U.S. We are not assuming that those higher activity levels persist for the entire quarter. We expect second quarter transaction margin dollars to be between $3.75 and $3.8 billion, which represents 4.5% growth at the midpoint. Excluding interest on customer balances, we expect transaction margin dollars to increase by approximately 6.5% in the midpoint. We are planning for mid-single digit non-transaction OPEX growth in the quarter due to the timing of initiatives and marketing spend. and we expect to deliver non-GAAP EPS in the range of $1.29 to $1.31, or 9% growth at the midpoint. For the full year, we are maintaining our guidance, as I mentioned earlier, and I'll just highlight a couple of lines. Excluding interest on customer balances, we expect transaction margin dollars to grow by at least 5% compared to 4.6% growth in 2024. And we expect to deliver full-year non-GAAP EPS in the range of $4.95 to $5.10, representing about 8% growth in the midpoint. This includes negative impact from lower interest rates, and compared to our prior guidance, a smaller headwind from our expected non-GAAP effective tax rate. Our guidance continues to assume approximately $6 billion in share buyback for the full year, and we continue to expect full year free cash flow of approximately $6 to $7 billion. I'd like to wrap up by thanking the PayPal team for their continued focus and dedication. We have a solid foundation to build on as we execute on the second year of PayPal's transformation. With that, back to you, Alex.