MessagefromOurPresidentandCEO DearColleagues,Customers,PartnersandStockholders: In 2022, PayPal continuedto navigatea global macroeconomicenvironmentmarkedbyhighlevelsofdisruptionand uncertainty.A slowingeconomy,inflationandgeopoliticalunrestputsignificantpressureonbothconsumersand businessesaroundtheworld.Despitethisbackdrop,weagainrosetoeverychallengeandopportunitypresentedoverthe pastyear,andIcouldnotbeprouderofourteamswork. Wehavetakenmanyessentialstepstoright-sizeourcoststructure,streamlineouroperatingmodelandsharpenourfocus, andwebelievethishassetthestageforournextphaseofgrowth.Whilesomeofthesedecisionshavebeendifficult,we havemadesignificantprogressinourtransformationefforts,andourfourthquarterresultsdemonstratethatwehita positive inflection point at the end of 2022. Although many of the challengesthat we faced last year will continue into 2023, Im moreconfidentthaneverthatPayPalispoisedtoemergefromthisperiodinapositionofincreasedstrength. LookingAhead Lookingforwardto2023andbeyond,Iwanttoreiteratethekeyprioritiesthatwillultimatelyenableustobetterserveour customers,leverageourcompetitiveadvantagestoincreaseourmarketshareanddeliverlong-term,sustainablegrowth for our stockholders.First, branded checkout is at the core of what we do, and continually improving this experiencewill remainourhighestpriority.Next,wearebuildingontheredesignofourdigitalwalletsthatweundertooklastyearto innovateandimproveourcurrentofferings–includingBuyNow,PayLaterandRewards–toprovideevenmorevaluefor ourcustomers.Wearealsocontinuingourworktoextendourplatformintoin-personcontexts,sothatcustomershavea seamlessexperiencebetweenourPayPalandVenmobrandedcardsandourapps.WearedoublingdownonBraintree, andfully rampingPayPalCompletePaymentstoprovidepowerfulpaymentprocessingcapabilitiestomerchantsofall sizes. Lastly, we are continuing to strengthen foundational capabilitiesthat enable and support our expanding value propositionfor both consumersandmerchantstoensurethatourtechnicalinfrastructureandcollaborationtoolsremain best-in-class. MyRetirementasCEOofPayPal AsIsharedinearlyFebruary,IinformedtheBoardthatIplantoretireasPayPalsPresidentandCEOattheendofthisyear.I plantodevotemoretimetomypassionsoutsideoftheworkplace.WhenIjoinedPayPalin2014–thenpartofeBay–Iwas looking for a companywithpassionate,engagedemployeeswhowantedtomakearealdifference.Lookingback,itis incredibleto reflect on the tremendousgrowththatwehaveachievedtogethersincePayPalbecameanindependent, publicly traded company.Sincethattimealmostnineyearsago,ourrevenues,totalpaymentvolumeandcashflowhave roughlytripledin size. We have launchedcountlessproducts,partnershipsandimprovementstobetterserveour customersandexpandintonewmarkets. Today,weareempoweringhundredsofmillionsofconsumersandmerchantstojoinandthriveintheglobaleconomy,and werecontributingeverydaytoexpandingeconomicopportunityforcustomersandcommunitiesaroundtheworld. Together,wehaveestablishedPayPalasthegloballeaderindigitalpayments,oneofthemosttrustedbrandsanda companythattrulymakesadifferenceintheworld.Thepastyearandahalfhasnotbeeneasyforouremployeesor shareholdersasweadjustedtoamorechallengingmacroeconomicenvironmentandsignificantgeopoliticaluncertainty. BeforeImadethedecisiontomoveontomynextchapter,IwantedtobesurethatPayPalhadpositivemomentumand waswell-positionedtodeliverastrongyearofperformance.WehavemadeconsiderableprogressandIfullybelievewe havereachedthatpoint.IhavecompletetrustintheBoardtoconductathoroughsearchforthebestpossibleleaderand ensureasmooth,thoughtfultransition–andIlookforwardtocontinuingtoserveontheBoardfollowingthetransition.