Visa Inc. · NYSE:V
Visa — Q3 2022 Earnings Presentation
21 slides from Visa's earnings presentation, Jul 26, 2022
Slide 1: Fiscal Third Quarter 2022 Financial Results
Fiscal Third Quarter 2022 Financial Results July 26, 2022 ©2022 Visa. All rights reserved.
Slide 2: Fiscal Third Quarter 2022 Results
Fiscal Third Quarter 2022 Results(1) Client Incentives Diluted Class A Net as a % of Operating Effective Income Common Stock YoY Increase / (Decrease) Revenues Gross Revenues Expenses Tax Rate Earnings Per Share GAAP Nominal-Dollar Basis 19% 26.1% 51% 10.9% 36% Non-GAAP Nominal-Dollar Basis(2) N/A N
Slide 3: Non-GAAP and Adjusted Constant-Dollar Results Footnote
Non-GAAP and Adjusted Constant-Dollar Results Footnote We use non-GAAP and adjusted constant-dollar financial measures of our performance, which exclude certain items that we believe are not representative of our continuing operations, as they may be non-recurring or have no cash impact, and may dis
Slide 4: Fiscal Third Quarter 2022 Results: Income Statement Summary and Key Business Drivers
Fiscal Third Quarter 2022 Results • Payments volume, cross-border volume and processed transaction growth remained very strong • Returned $3.3B of capital to shareholders in the form of share repurchases and dividends Income Statement Summary Q3 2022 In billions, except percentages and per share dat
Slide 5: Operational Performance Metrics Monthly Growth: U.S. Payments Volume
Operational Performance Metrics Monthly Growth 2021 - 2022 U.S. Payments Volume Growth Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 100% 100% U.S. Stimulus Payments 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% (20%) (20%) Jan Mar May Jul Sep Nov Jan Mar May Jul
Slide 6: Operational Performance Metrics Monthly Index vs. 3 years ago: U.S. Payments Volume
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 U.S. Payments Volume Index vs. 3 years ago Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 180 180 170 170 160 160 150 150 140 140 130 130 120 120 110 110 100 100 Oct Nov Dec Jan Feb M
Slide 7: Operational Performance Metrics Monthly Growth: Processed Transactions
Operational Performance Metrics Monthly Growth 2021 - 2022 Processed Transactions Growth 60% 50% 40% 30% 20% 10% 0% Jan Mar May Jul Sep Nov Jan Mar May Jul 1-21 Note: February growth rate would have been 2% in 2021 if the impact of February 29, 2020 was excluded. Results are calculated over the comp
Slide 8: Operational Performance Metrics Monthly Index vs. 3 years ago: Processed Transactions
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 Processed Transactions Index vs. 3 years ago 150 140 130 120 110 100 Oct Nov Dec Jan Feb Mar Apr May Jun Jul 1-21 Note: The charts reflect a comparison of volume and transactions indexed to three years ago, with October - Dece
Slide 9: Operational Performance Metrics Monthly Growth: Cross-Border Volume
Operational Performance Metrics Monthly Growth 2021 - 2022 Cross-Border Volume Growth 2021 - 2022 Cross-Border Volume Growth (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Total Card Not Present Card Not Present, Excludi
Slide 10: Operational Performance Metrics Monthly Index vs. 3 years ago: Cross-Border Volume
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 Cross-Border Volume Index vs. 3 years ago 2021 - 2022 Cross-Border Volume Index vs. 3 years ago (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Tot
Slide 11: Payments Volume Results Q3 FY2022
Payments Volume Results Nominal Q3 FY2022 Constant Visa Inc. Credit Debit 20% 16% 12% 8% 5% 1% Nominal USD (in billions) U.S. $1,489 $728 $760 International $1,450 $762 $688 Total $2,939 $1,490 $1,449 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational
Slide 12: Payments Volume Results Q2 FY2022
Payments Volume Results Nominal Q2 FY2022 Constant Visa Inc. Credit Debit 20% 22% 17% 14% 12% 10% Nominal USD (in billions) U.S. $1,337 $638 $699 International $1,438 $732 $706 Total $2,775 $1,370 $1,405 Note: The chart results are calculated over the comparable prior-year period. Refer to Operation
Slide 13: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q3 FY2022 Transactions Cross-Border 48% 40% 28% 16% 7% 7% Total Payments Processed Total Total Constant Nominal Constant (excluding (1) Transaction Count (in millions) Intra-Europe) (1) Cross-border volume excluding transactions within Europe. Credit 21,8
Slide 14: Total Cards (in millions)
Total Cards (in millions) 2021 Q2 FY2022 2022 Total Visa Inc. Credit Debit 8% 5% 9% 3,924 3,646 2,711 2,488 1,158 1,213 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics. Fiscal Third
Slide 15: Revenue Results
Revenue Results Q3 FY2022 51% 26% 21% 19% 19% 13% 8% Service Data International Other Gross Client Net Revenues Processing Transaction Revenues Revenues Incentives Revenues Revenues Revenues Reported Nominal USD (in millions) $3,189 $3,579 $2,560 $517 $9,845 ($2,570) $7,275 Client Incentives as a %
Slide 16: Operating Expenses Results
Operating Expenses Results Q3 FY2022 51% 41% 17% 17% 13% 9% NM (4%) Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nominal USD (in millions) $1,283 $313 $178 $117 $230 $289 $717 $3
Slide 17: GAAP to Non-GAAP Operating Expenses Results
GAAP to Non-GAAP Operating Expenses Results Q3 FY2022 Three Months Ended June 30, 2022 Network Depreciation General Total and Professional and and Litigation operating YoY Personnel Marketing processing fees amortization administrative provision expenses Change (in millions, except percentages) As r
Slide 18: Other Notable Items
Other Notable Items • On June 1, 2022, Visa issued fixed-rate senior notes in an aggregate principal amount of €3.0 billion with maturities ranging between 4 and 12 years, and interest rates from 1.500% to 2.375%. The net proceeds from the offering of the notes will be used for general corporate pur
Slide 19: Operational Data Performance Footnote
Operational Data Performance Footnote Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent operating data. Service revenues continue to be recognized based on payments volume in the prior quarter. Total transactio
Slide 20: Free Cash Flow
Free Cash Flow We had cash, cash equivalents and investment securities of $19.6 billion as of June 30, 2022. (USD in millions) Calculation of Free Cash Flow Q3 2022 Q3 2022 YTD Net cash provided by operating activities $5,252 $12,973 Less: capital expenditures (235) (675) (1) Free cash flow $5,017 $
Slide 21: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and anticipated timing and