Visa Inc. · NYSE:V
Visa — Q2 2019 Earnings Presentation
15 slides from Visa's earnings presentation, Apr 24, 2019
Slide 1: Visa Inc. Fiscal Second Quarter 2019 Financial Results
Visa Inc. Fiscal Second Quarter 2019 Financial Results April 24, 2019
Slide 2: 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 financial outlook for f
Slide 3: Fiscal Second Quarter 2019 Results
Fiscal Second Quarter 2019 Results Q2 2019 (Ending March 31, 2019) in billions, except percentages and per share data USD YoY Change Net Revenues $5.5 8% Net Income $3.0 14% Earnings Per Share $1.31 17% • Payments volume and processed transactions growth remained healthy; cross-border growth slowed
Slide 4: Payments Volume (Quarter ended December)
Payments Volume* US$ in billions, nominal, except percentages Quarter ended December 2017 2,197 2018 2,051 INTL = International U.S. U.S. 979 886 1,223 1,160 974 U.S. U.S. 891 478 519 U.S. U.S. INTL INTL 461 408 1,164 1,218 INTL INTL INTL INTL 682 704 483 514 Total Visa Inc. Credit Debit YoY Change
Slide 5: Payments Volume (Quarter ended March)
Payments Volume* US$ in billions, nominal, except percentages Quarter ended March Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the earnings release to provide more recent operating data. Service revenues continue to be recogn
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended March 2018 47,365 43,382 2019 33% 34% Credit Credit 32,544 29,321 Credit Credit 38% 38% 66% 67% Debit Debit Debit 62% Total Transactions Processed Transactions YoY Change 9% 11% Note: Total transactions represent payments and cash transactio
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended December 2017 2018 3,248 3,358 2,165 2,239 1,084 1,118 Total Visa Inc. Credit Debit YoY Change 3% 3% 3% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized
Slide 8: Revenue – Q2 2019
Revenue – Q2 2019 US$ in millions, except percentages Fiscal 2018 Fiscal 2019 6,972 6,362 5,494 5,073 20.3% 21.2% (1,289) (1,478) Gross Client Net Revenues Client Incentives as a Revenues Incentives % of Gross Revenues YoY Change 10% 15% 8% 0.9ppt Note: Figures may not recalculate exactly due to rou
Slide 9: Revenue Detail – Q2 2019
Revenue Detail – Q2 2019 US$ in millions, except percentages Fiscal 2018 Fiscal 2019 2,417 2,432 2,253 2,127 1,752 1,796 327 230 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YoY Change 7% 14% 3% 42% Note: Figures may not recalculate exactly due to round
Slide 10: Operating Margin – Q2 2019
Operating Margin – Q2 2019 US$ in millions, except percentages Fiscal 2018 Fiscal 2019 5,494 5,073 66% 66% 3,641 3,336 1,737 1,853 Net Revenues Operating Operating Operating Expenses Income Margin YOY 8% 7% 9% 0.5ppt Change Note: Operating margin is calculated as operating income divided by net oper
Slide 11: Operating Expenses – Q2 2019
Operating Expenses – Q2 2019 US$ in millions, except percentages Fiscal 2018 Fiscal 2019 894 824 261 241 264 222 169 171 153 160 108 101 0 22 Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative Provision YoY Change 8% (8)% 1% (7)
Slide 12: Other Financial Results and Highlights
Other Financial Results and Highlights • Cash, cash equivalents and investment securities of $15.0 billion as of March 31, 2019 • Adjusted free cash flow of $1.9 billion for the fiscal second quarter • Capital expenditures of $156 million during the fiscal second quarter • During the three months en
Slide 13: Financial Outlook for Fiscal Full-Year 2019
Financial Outlook for Fiscal Full-Year 2019 Low double-digits on a nominal basis, with approximately 1 percentage point of Annual net revenue growth negative foreign currency impact and de minimus impact from the new revenue accounting standard Client incentives as a 22% to 23% range for the second
Slide 14: Appendix
Appendix
Slide 15: Calculation of Adjusted Free Cash Flow
Calculation of Adjusted Free Cash Flow Management believes that presentation of adjusted free cash flow is useful to measure the Company’s generation of cash available to first re-invest in the business and then return excess cash to shareholders through stock buybacks and cash dividends. During the