PayPal Holdings, Inc. Unaudited Condensed Consolidated Statements of Income (Loss) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (In millions, except per share data) Net revenues $ 7,383 $ 6,918 $ 27,518 $ 25,371 Operating expenses: Transaction expense 3,324 2,952 12,173 10,315 Transaction and credit losses 388 350 1,572 1,060 (1) Customer support and operations 541 532 2,120 2,075 (1) Sales and marketing 524 666 2,257 2,445 (1) Technology and development 822 796 3,253 3,038 (1) General and administrative 515 570 2,099 2,114 Restructuring and other charges 25 2 207 62 Total operating expenses 6,139 5,868 23,681 21,109 Operating income 1,244 1,050 3,837 4,262 Other income (expense), net (134) (344) (471) (163) Income before income taxes 1,110 706 3,366 4,099 Income tax expense (benefit) 189 (95) 947 (70) Net income (loss) $ 921 $ 801 $ 2,419 $ 4,169 Net income (loss) per share: Basic $ 0.81 $ 0.68 $ 2.10 $ 3.55 Diluted $ 0.81 $ 0.68 $ 2.09 $ 3.52 Weighted average shares: Basic 1,139 1,173 1,154 1,174 Diluted 1,144 1,183 1,158 1,186 (1) Includes stock-based compensation as follows: Customer support and operations $ 73 $ 58 $ 269 $ 263 Sales and marketing 37 41 151 175 Technology and development 132 112 512 515 General and administrative 66 120 383 468 $ 308 $ 331 $ 1,315 $ 1,421 Q4 & FY 2022 Results 11