Visa Inc. · NYSE:V
Visa — Q4 2020 Earnings Presentation
20 slides from Visa's earnings presentation, Oct 28, 2020
Slide 1: Visa Inc. Fiscal Fourth Quarter 2020 Financial Results
Visa Inc. Fiscal Fourth Quarter 2020 Financial Results October 28, 2020
Slide 2: Fiscal Fourth Quarter 2020 Results
Fiscal Fourth Quarter 2020 Results Diluted Class A Client Incentives Common Stock Net as a % of Operating Effective Tax Earnings Per YoY Increase / (Decrease) Revenues Gross Revenue Expense Rate Share GAAP Nominal-Dollar Basis (18%) 30.0% (28%) (17%)* 25.0% Non-GAAP Nominal-Dollar (4%) 18.3% (23%) B
Slide 3: Non-GAAP and Adjusted Constant-Dollar Results Footnote
Non-GAAP and Adjusted Constant-Dollar Results Footnote We consider the non-GAAP measures useful to investors because they provide greater transparency into management´s view and assessment of the Company´s ongoing operating performance by removing items management believes are not representative of
Slide 4: Fiscal Fourth Quarter 2020 Results: Key Business Drivers
Fiscal Fourth Quarter 2020 Results (Ended September 30, 2020) • Net revenues of $5.1B, a decrease of 17% or approximately 11% with service revenues recognized on current quarter payments volume • Payments volume, cross-border volume and processed transactions growth all improved through the quarter
Slide 5: Operational Performance Metrics Weekly Summary: U.S. Payments Volume
Operational Performance Metrics Weekly Summary U.S. Payments Volume Results Total Credit Debit 30% 20% 10% 0% (10%) (20%) July August September October 8 15 22 29 5 12 19 26 2 9 16 23 30 7 14 21 Week Ended Total Card Present Card Not Present Card Not Present, Excluding Travel 50% 40% 30% 20% 10% 0%
Slide 6: Operational Performance Metrics Weekly Summary: Processed Transactions
Operational Performance Metrics Weekly Summary Processed Transactions Results 7% 6% 5% 4% 3% 2% 1% 0% July August September October 8 15 22 29 5 12 19 26 2 9 16 23 30 7 14 21 Week Ended Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote
Slide 7: Operational Performance Metrics Weekly Summary: Cross-Border Volume
Operational Performance Metrics Weekly Summary Cross-Border Volume Results (Constant Dollar) Excluding Intra-Europe Total 0% (10%) (20%) (30%) (40%) (50%) July August September October 8 15 22 29 5 12 19 26 2 9 16 23 30 7 14 21 Week Ended Cross-Border Volume Excluding Intra-Europe Results (Constant
Slide 8: Operational Performance Metrics Monthly Summary: U.S. Payments Volume
Operational Performance Metrics Monthly Summary U.S. Payments Volume Results Total Credit Debit 30% 20% 10% 0% (10%) (20%) (30%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct 1-21 Total Card Present Card Not Present Card Not Present, Excluding Travel 50% 30% 10% (10%) (30%) (50%) Jan Feb Mar Apr May Jun J
Slide 9: Operational Performance Metrics Monthly Summary: Processed Transactions
Operational Performance Metrics Monthly Summary Processed Transactions Results 20% 10% 0% (10%) (20%) (30%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct 1-21 Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these
Slide 10: Operational Performance Metrics Monthly Summary: Cross-Border Volume
Operational Performance Metrics Monthly Summary Cross-Border Volume Results (Constant Dollar) Excluding Intra-Europe Total 10% 0% (10%) (20%) (30%) (40%) (50%) (60%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct 1-21 Cross-Border Volume Excluding Intra-Europe Results (Constant Dollar) Total Card Present +
Slide 11: Payments Volume Results Q4 FY2020
Payments Volume Results Q4 FY2020 Nominal Constant Visa Inc. Credit Debit 20% 20% 4% 4% (10%) (9%) Nominal USD (in billions) U.S. $1,097 $493 $603 International $1,252 $628 $624 Total $2,349 $1,121 $1,227 Note: The chart results are calculated over the comparable prior-year period. Refer to Operatio
Slide 12: Payments Volume Results Q3 FY2020
Payments Volume Results Q3 FY2020 Nominal Constant Visa Inc. Credit Debit 3% (0%) (10%) (12%) (20%) (22%) Nominal USD (in billions) U.S. $950 $417 $532 International $1,004 $529 $475 Total $1,954 $946 $1,008 Note: The chart results are calculated over the comparable prior-year period. Refer to Opera
Slide 13: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q4 FY2020 Transactions Cross-Border Total Payment Processed Constant 4% 3% Total Total (excluding 2% Nominal Constant Intra-Europe) (1) Credit Credit 38% 38% Debit 62% (28%) (29%) (41%) Transaction Count (in millions) (1) Cross-border volume excluding tra
Slide 14: Total Cards
Total Cards (USD in millions) Q3 FY2020 2019 2020 3,401 3,493 2,277 2,354 1,124 1,139 Total Visa Inc. Credit Debit YoY Change 3% 1% 3% Note: The chart results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics
Slide 15: Revenue Results
Revenue Results Q4 FY2020 Reported Adjusted 4% 5% 0% (13%) (13%) (17%) (17%) (38%) Service Data Processing International Other Gross Client Net Revenues Revenues Transaction Revenues Revenues Incentives Revenues Revenues Reported Nominal USD $2,217 $2,875 $1,346 $361 $6,799 $1,698 $5,101 (in million
Slide 16: Operating Expense Results
Operating Expense Results Reported Q4 FY2020 Non-GAAP Adjusted 14% 10% 6% 6% (1%) (2%) -1% (6%) (6%) NM (4%) (5%) (18%) (25%) (25%) (30%) (31%) (99%) Network & Total Personnel Marketing Professional Depreciation & General & Litigation Processing Operating Fees Amortization Administrative Provision E
Slide 17: Other Financial Results and Highlights
Other Financial Results and Highlights • Visa continues to monitor the COVID-19 impact globally. Many countries had stable to positive year-over- year domestic spending growth in the fiscal fourth quarter. Overall cross-border spending remains depressed, led by travel spending, as the majority of bo
Slide 18: Operational Performance Data Footnote
Operational Performance Data Footnote 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 recognized based on payments volume in the prior q
Slide 19: Free Cash Flow
Free Cash Flow (USD in millions) The Company had cash, cash equivalents and investment securities of $20.3 billion as of September 30, 2020. Calculation of Free Cash Flow Q4 FY2020 QTD Q4 FY2020 YTD Net cash provided by operating activities $2,096 $10,440 Less: capital expenditures (168) (736) Free
Slide 20: 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, the impact on our underlying business drivers and other volume and transaction trends as a result of CO