Visa Inc. · NYSE:V
Visa — Q3 2019 Earnings Presentation
15 slides from Visa's earnings presentation, Jul 23, 2019
Slide 1: Visa Inc. Fiscal Third Quarter 2019 Financial Results
Visa Inc. Fiscal Third Quarter 2019 Financial Results July 23, 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 Third Quarter 2019 Results
Fiscal Third Quarter 2019 Results Q3 2019 (Ending June 30, 2019) in billions, except percentages and per share data USD YoY Change Net Revenues $5.8 11% GAAP Net Income $3.1 33% Adjusted Net Income(1) $3.1 11% GAAP Earnings Per Share $1.37 36% Adjusted Earnings Per Share(1) $1.37 14% (1) Adjusted Ne
Slide 4: Payments Volume (Quarter ended March)
Payments Volume* US$ in billions, nominal, except percentages Quarter ended March 2018 2019 2,018 2,085 INTL = International U.S. U.S. 862 930 1,119 1,141 899 944 U.S. U.S. 446 473 U.S. U.S. INTL INTL 417 457 1,156 1,155 INTL INTL INTL INTL 673 668 482 487 Total Visa Inc. Credit Debit YoY Change (no
Slide 5: Payments Volume (Quarter ended June)
Payments Volume* US$ in billions, nominal, except percentages Quarter ended June 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 recogni
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended June 2018 2019 51,559 46,752 34% 34% Credit 35,428 Credit 31,728 Credit Credit 38% 38% 66% 66% Debit Debit Debit 62% Total Transactions Processed Transactions YoY Change 10% 12% Note: Total transactions represent payments and cash transactio
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended March 2018 2019 3,378 3,266 2,176 2,255 1,090 1,123 Total Visa Inc. Credit Debit YoY Change 3% 3% 4% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if
Slide 8: Revenue – Q3 2019
Revenue – Q3 2019 US$ in millions, except percentages Fiscal 2018 Fiscal 2019 7,386 6,614 5,840 5,240 20.8% 20.9% (1,374) (1,546) Gross Client Net Revenues Client Incentives as a Revenues Incentives % of Gross Revenues YoY Change 12% 13% 11% 0.1ppt Note: Figures may not recalculate exactly due to ro
Slide 9: Revenue Detail – Q3 2019
Revenue Detail – Q3 2019 US$ in millions, except percentages Fiscal 2018 Fiscal 2019 2,662 2,405 2,359 2,196 1,977 1,830 342 229 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YoY Change 10% 13% 8% 49% Note: Figures may not recalculate exactly due to roun
Slide 10: Operating Margin – Q3 2019
Operating Margin – Q3 2019 US$ in millions, except percentages Reported GAAP Fiscal 2018 Adjusted non-GAAP Fiscal 2018 Reported GAAP Fiscal 2019 5,840 5,240 67% 67% 3,908 3,485 55% 2,885 2,355 1,932 1,755 Net Revenues Operating Operating Operating Operating Expenses Income Margin Margin YOY Change (
Slide 11: Operating Expenses – Q3 2019
Operating Expenses – Q3 2019 US$ in millions, except percentages Reported GAAP Fiscal 2018 Adjusted non-GAAP Fiscal 2018 Reported GAAP Fiscal 2019 852 872 600 315 282 240 230 169 184 152 165 112 113 0 1 10 Litigation Provision Personnel Marketing Network & Professional Depreciation & General & Proce
Slide 12: Other Financial Results and Highlights
Other Financial Results and Highlights • Cash, cash equivalents and investment securities of $14.1 billion as of June 30, 2019 • Adjusted free cash flow of $3.2 billion for the fiscal third quarter • Capital expenditures of $194 million during the fiscal third quarter • During the three months ended
Slide 13: Financial Outlook for Fiscal Full-Year 2019
Financial Outlook for Fiscal Full-Year 2019 Low double-digits on a nominal-dollar basis, with approximately 1.5 percentage Annual net revenues points of negative foreign currency impact and over 1.0 percentage point of growth positive impact from the new revenue accounting standard Client incentives
Slide 14: Appendix
Appendix De Everywhere You Want To Be
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 Visa’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 three