Visa Inc. · NYSE:V
Visa — Q1 2024 Earnings Presentation
23 slides from Visa's earnings presentation, Jan 25, 2024
Slide 1: Fiscal First Quarter 2024 Financial Results
Fiscal First Quarter 2024 Financial Results January 25, 2024 ©2024 Visa. All rights reserved.
Slide 2: Fiscal First Quarter 2024 Results
Fiscal First Quarter 2024 Results Diluted Class A Net Operating Effective Income Common Stock YoY Increase / (Decrease) Revenues Expenses Tax Rate Earnings Per Share GAAP Nominal-Dollar Basis 9% (6%) 19.1% 20% Non-GAAP Nominal-Dollar Basis(1) 9% 7% 19.0% 11% Foreign Currency Impact(2) ~0% ~1.0% N/A
Slide 3: Fiscal First Quarter 2024 Results and Other Highlights
Fiscal First Quarter 2024 Results and Other Highlights • Payments volume growth and processed transaction growth were relatively stable and cross-border volume growth remained strong • Share repurchases and dividends of $4.4B Income Statement Summary Q1 2024 In billions, except percentages and per s
Slide 4: Operational Performance Metrics through January 21, 2024
Operational Performance Metrics through January 21, 2024 2023 - 2024 U.S. Payments Volume Growth 2023 - 2024 Processed Transactions Growth 12% Total Credit Debit 8% 10% 8% 6% 6% 4% 4% 2% 2% Oct Nov Dec Jan Oct Nov Dec Jan 1 - 21 1 - 21 2023 - 2024 Cross-Border Volume Growth 2023 - 2024 Cross-Border
Slide 5: Payments Volume Growth: Visa
Payments Volume Growth: Visa Q4 FY2023 Q1 FY2024 11% 10% 9% 9% 8% 7% Nominal Credit Debit Total 9% 9% 9% 8% 8% 8% Constant Credit Debit Total Note: The chart results are calculated over the comparable prior-year period. Refer to Operational Performance Data Footnote for further information on these
Slide 6: Payments Volume Growth: U.S. and International
Payments Volume Growth: U.S. and International Q4 FY2023 Q1 FY2024 U.S. International Visa 17% 15% 12% 12% 11% 10% 9% 9% 9% 8% 8% 7% 7% 6% 6% 6% 5% 5% Nominal Credit Debit Total Credit Debit Total Credit Debit Total 12% 12% 12% 11% 11% 11% 9% 9% 9% 8% 8% 8% 7% 6% 6% 6% 5% 5% Constant Credit Debit To
Slide 7: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q1 FY2024 Transactions Cross-Border 20% 16% 16% 11% 10% 9% 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 25,
Slide 8: Total Cards (in billions)
Total Cards (in billions) 2022 2023 Q4 FY2023 Credit Debit Visa 4% 8% 6% 4.3 4.1 3.0 2.8 1.2 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. Fiscal First Quarter 2024 Financial
Slide 9: Operational Performance Data Footnote
Operational Performance Data 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 10: Revenues Results
Revenues Results Q1 FY2024 20% 18% 14% 11% 9% 8% Service Data International Other Client Net Revenues Processing Transaction Revenues Incentives Revenues Revenues Revenues Reported Nominal USD (in millions) $3,915 $4,356 $3,019 $692 ($3,348) $8,634 Note: The chart results are calculated over the com
Slide 11: Operating Expenses Results
Operating Expenses Results Q1 FY2024 21% 11% 9% 5% 1% (6%) (12%) (97%) Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nominal USD (in millions) $1,479 $293 $181 $131 $247 $340 $9 $
Slide 12: Free Cash Flow
Free Cash Flow Cash, cash equivalents and investment securities were $21.4 billion as of December 31, 2023. (in millions) Calculation of Free Cash Flow Q1 2024 Net cash provided by operating activities $3,614 Less: capital expenditures (267) Free cash flow(1) $3,347 (1) Free Cash Flow is cash provid
Slide 13: Other Notable Items
Other Notable Items • On December 15, 2023, Visa announced it signed a definitive agreement to acquire a majority interest in Prosa, a leading payments processor in Mexico. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close during the s
Slide 14: Financial Outlook for Fiscal Second Quarter and Fiscal Full-Year 2024
Financial Outlook for Fiscal Second Quarter and Fiscal Full-Year 2024 Q2 2024 Full-Year 2024 YoY increase / (decrease) on an Adjusted Constant-Dollar Basis (1) Net Revenues Growth Upper mid to high single-digit Low double-digit Operating Expense Growth Low double-digit Low double-digit Diluted Class
Slide 15: Appendix
Appendix ©2024 Visa. All rights reserved.
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present our results and our financial outlook on a non-GAAP basis, 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 distort our longer term operating trends. We
Slide 17: Non-GAAP Financial Measures - continued
Non-GAAP Financial Measures - continued We also present our results and financial outlook on an adjusted constant-dollar basis. Measures presented on an adjusted-constant dollar basis are non-GAAP financial measures that have been further adjusted to exclude the following: • impact of foreign exchan
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Results
Reconciliation of GAAP to Non-GAAP Financial Results Three Months Ended December 31, 2023 Non- operating Income Effective Diluted Operating Income Tax Income Net Earnings Expenses (Expense) Provision(1) Tax Rate(2) Income Per Share(2) (in millions, except percentages and per share data) As reported
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Three Months Ended December 31, 2023 Network Depreciation General Total and Professional and and Litigation operating YoY Personnel Marketing processing fees amortization administrative provision expenses Change (in millions, except pe
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Three Months Ended March 31, 2023 Non- operating Income Effective Diluted Operating Income Tax Income Net Earnings Expenses (Expense) Provision(1) Tax Rate(2) Income Per Share(2) (in millions, except percentages and per share data) As
Slide 21: Reconciliation of Fiscal Second Quarter 2024 Financial Outlook
Reconciliation of Fiscal Second Quarter 2024 Financial Outlook Diluted Class A Common Stock Net Revenues Growth(1) Operating Expense Growth Earnings Per Share Growth YoY increase / (decrease) GAAP Nominal-Dollar Basis Upper mid to high single-digit Low double-digit High teens Non-GAAP Adjustments(2)
Slide 22: Reconciliation of Fiscal Full-Year 2024 Financial Outlook
Reconciliation of Fiscal Full-Year 2024 Financial Outlook Annual Diluted Class A Common Annual Net Revenues Growth(1) Annual Operating Expense Growth Stock Earnings Per Share Growth YoY increase / (decrease) High single-digit to GAAP Nominal-Dollar Basis Approximately flat High-teens low double-digi
Slide 23: Forward-Looking Statements
Forward-Looking Statements Our earnings release and related materials contain 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, an