PayPal Holdings, Inc. (NASDAQ:PYPL) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD

PayPal Holdings, Inc. (“PayPal,” or the “Company”) continues to evolve its business through strategic partnerships, new products and acquisitions. Due to the diversification of PayPal’s products and services, we have updated our definitions of "active accounts" and "total payment volume (TPV)" to capture these and future changes expected in our business. The updated definitions and a description of the changes are presented below. Prior period metric results will be revised to conform to the new definitions beginning with the Company’s Form 10-Q for the quarterly period ended March 31, 2018. These changes will not impact total revenue, operating income or earnings per share previously filed by the Company with the Securities and Exchange Commission.

Active Accounts: An active account is an account registered directly with PayPal or a platform access partner that has completed a transaction through our Payments Platform, not including gateway-exclusive transactions, within the past 12 months.

The definition of active accounts has been expanded to include payments made or outstanding balances held on our co-branded credit card program. The definition has also been expanded to include accounts from our platform access partners. A platform access partner is a third party whose customers are provided access to PayPal’s Payments Platform through such third party’s login credentials. This expanded definition captures uniquely identifiable accounts for which PayPal receives economic benefits for completed transactions processed on behalf of customers who have established a relationship with PayPal.

Total Payment Volume: The value of payments, net of reversals, successfully completedthrough our Payments Platform or enabled by PayPal via a partner payment solution, not including gateway-exclusive transactions. The definition of TPV has been expanded to include PayPal’s diversification into new partner payment solutions such as certain tokenized transactions and contextual commerce which expand the Company’s opportunities for growth.

The revised definition will also capture TPV from our merchant debit card program. Due to its inclusion in TPV, revenues from these transactions will be reclassified from “other value added services revenue” to “transaction revenues” with no change to “total net revenues.”

These revisions will also impact previously reported results for other non-financial key performance metrics, including number of payment transactions and payment transactions per active account. The following tables present the impact from the revisions to the definitions of active accounts and TPV as previously reported:

⁽¹⁾ Number of payment transactions per active account reflects the total number of payment transactions within the previous 12 month period, divided by active accounts at the end of the period.

⁽¹⁾ Number of payment transactions per active account reflects the total number of payment transactions within the previous 12 month period, divided by active accounts at the end of the period.

⁽¹⁾ Number of payment transactions per active account reflects the total number of payment transactions within the previous 12 month period, divided by active accounts at the end of the period.

Revised quarterly results reflecting the updated metric definitions, including reconciliations, are available on the Company’s investor relations website at https://investor.paypal-corp.com/financial_history.cfm

The information in this Item 7.01 of this Current Report on Form 8-K is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or the Exchange Act, and shall not be incorporated or deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language contained in such filing, unless otherwise expressly stated in such filing.

About PayPal Holdings, Inc. (NASDAQ:PYPL)

PayPal Holdings, Inc. (PayPal) is a technology platform company that enables digital and mobile payments on behalf of consumers and merchants across the world. The Company allows businesses of all sizes to accept payments from merchant Websites, mobile devices and applications, and at offline retail locations through a range of payment solutions. Its combined payment solution capabilities, including its PayPal, PayPal Credit, Braintree, Venmo and Xoom products, comprise its Payments Platform. It allows its customers to use their account to both purchase and be paid for goods, as well as transfer and withdraw funds. A consumer can typically fund a purchase using a bank account, a PayPal account balance, a PayPal Credit account, a credit or debit card or other stored value products, such as coupons and gift cards. The PayPal, Venmo, and Xoom products allow friends and family to transfer funds to each other, including cross border transfers using several of these funding sources.