Visa Inc. · NYSE:V
Visa — Q2 2021 Earnings Presentation
25 slides from Visa's earnings presentation, Apr 27, 2021
Slide 1: Fiscal Second Quarter 2021 Financial Results
Edit Master Visa Inc. text styles FiscalTo Click Second Edit Master Quarter Title 2021 Financial Results Edit Master April 27, 2021 text styles
Slide 2: Fiscal Second Quarter 2021 Results
Fiscal Second Quarter 2021 Results Client Incentives Diluted Class A Net as a % of Common Stock YoY Increase / (Decrease) Revenues Gross Revenue Operating Expense Effective Tax Rate Earnings Per Share GAAP Nominal-Dollar Basis 11% 16.6% 0% (2%)* 25.8% Non-GAAP Nominal-Dollar Basis(1) 3% 16.8% (1%) F
Slide 3: Non-GAAP and Adjusted Constant-Dollar Results Footnote
Non-GAAP and Adjusted Constant-Dollar Results Footnote We consider 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 our
Slide 4: Fiscal Second Quarter 2021 Results
Fiscal Second Quarter 2021 Results • Our key business driver growth rates are starting to ramp up, reflecting the depressed levels in 2020 due to COVID-19 and making year-over-year comparisons difficult to interpret • Compared to fiscal second quarter 2019 levels, payments volume and processed trans
Slide 5: Operational Performance Metrics: Monthly Growth, U.S. Payments Volume
Operational Performance Metrics Monthly Growth U.S. Payments Volume Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 110% 110% 90% 90% 70% 70% 50% 50% 30% 30% 10% 10% (10%) (10%) (30%) (30%) (50%) (50%) Jan Feb* Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Slide 6: Operational Performance Metrics: Monthly Index vs. FY 2019, U.S. Payments Volume
Operational Performance Metrics Monthly Index vs. FY 2019 Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100 U.S. Payments Volume Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 160 160 150 150 140 14
Slide 7: Operational Performance Metrics: Monthly Growth, Processed Transactions
Operational Performance Metrics Monthly Growth Processed Transactions 55% 45% 35% 25% 15% 5% (5%) (15%) (25%) Jan Feb* Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb* Mar Apr 1-21 2020 2021 * February growth rates would have been 12% and 2% in 2020 and 2021, respectively, if the impact of February
Slide 8: Operational Performance Metrics: Monthly Index vs. FY 2019, Processed Transactions
Operational Performance Metrics Monthly Index vs. FY 2019 Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100 Processed Transactions 118 116 114 112 110 108 106 104 102 100 Oct Nov Dec Jan Feb Mar Apr 1-21 2020 2021 Note: Refer to Operational
Slide 9: Operational Performance Metrics: Monthly Growth, Cross-Border Volume
Operational Performance Metrics Monthly Growth Cross-Border Volume Cross-Border Volume Excluding Intra-Europe (Constant Dollar) (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Total Card Not Present Card Not Present, Excluding Travel 130% 130% 110% 110% 90% 90%
Slide 10: Operational Performance Metrics: Monthly Index vs. FY 2019, Cross-Border Volume
Operational Performance Metrics Monthly Index vs. FY 2019 Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100 Cross-Border Volume Cross-Border Volume Excluding Intra-Europe (Constant Dollar) (Constant Dollar) Total Card Present + Card Not Pres
Slide 11: Operational Performance Metrics: Weekly Growth, U.S. Payments Volume
Operational Performance Metrics Weekly Growth U.S. Payments Volume Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 120% 120% 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% (20%) (20%) January February March April January February March April 6 13 20 27 3 10
Slide 12: Operational Performance Metrics: Weekly Index vs. FY 2019, U.S. Payments Volume
Operational Performance Metrics Weekly Index vs. FY 2019 Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100 U.S. Payments Volume Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 180 180 160 160 140 140
Slide 13: Operational Performance Metrics: Weekly Growth, Processed Transactions
Operational Performance Metrics Weekly Growth Processed Transactions 70% 50% 30% 10% (10%) January February March April 6 13 20 27 3 10 17 24 3 10 17 24 31 7 14 21 Week Ended Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for furthe
Slide 14: Operational Performance Metrics: Weekly Index vs. FY 2019, Processed Transactions
Operational Performance Metrics Weekly Index vs. FY 2019 Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100 Processed Transactions 120 116 112 108 104 100 January February March April 6 13 20 27 3 10 17 24 3 10 17 24 31 7 14 21 Week Ended Not
Slide 15: Operational Performance Metrics: Weekly Growth, Cross-Border Volume
Operational Performance Metrics Weekly Growth Cross-Border Volume Cross-Border Volume Excluding Intra-Europe (Constant Dollar) (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Total Card Not Present Card Not Present, Excluding Travel 150% 150% 130% 130% 110% 110%
Slide 16: Operational Performance Metrics: Weekly Index vs. FY 2019, Cross-Border Volume
Operational Performance Metrics Weekly Index vs. FY 2019 Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100 Cross-Border Volume Cross-Border Volume Excluding Intra-Europe (Constant Dollar) (Constant Dollar) Total Card Present + Card Not Prese
Slide 17: Payments Volume Results Q2 FY2021
Payments Volume Results Nominal Q2 FY2021 Constant Visa Inc. Credit Debit 26% 24% 14% 11% 2% 0% Nominal USD (in billions) U.S. $1,157 $500 $657 International $1,266 $643 $623 Total $2,423 $1,143 $1,280 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational
Slide 18: Payments Volume Results Q1 FY2021
Payments Volume Results Nominal Q1 FY2021 Constant Visa Inc. Credit Debit 17% 18% 5% 5% (5%) (6%) Nominal USD (in billions) U.S. $1,140 $535 $605 International $1,335 $680 $655 Total $2,475 $1,216 $1,260 Note: The chart results are calculated over the comparable prior-year period. Refer to Operation
Slide 19: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q2 FY2021 Transactions Cross-Border 11% 8% 8% Constant Total Total (excluding Nominal Constant intra-Europe)(1) Total Payments Processed (6%) Transaction Count (in millions) (11%) Credit 17,030 16,875 Debit 37,848 33,776 (21%) Total 54,878 50,651 37,644 (
Slide 20: Total Cards (in millions)
Total Cards (in millions) Q1 FY2021 2020 2021 3,592 3,448 2,436 2,311 1,137 1,156 Total Visa Inc. Credit Debit 4% 2% 5% Note: The chart results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics. 19 Fiscal Sec
Slide 21: Revenue Results
Revenue Results Q2 FY2021 Reported Adjusted 17% 11% 8% 2% 0% (2%) (3%) (19%) International Service Data Processing Transaction Other Gross Client Net Revenues Revenues Revenues Revenues Revenues Incentives Revenues Reported Nominal USD (in millions) $2,845 $2,996 $1,488 $392 $7,721 $1,992 $5,729 Cli
Slide 22: Operating Expense Results
Operating Expense Results Reported Q2 FY2021 Non-GAAP Adjusted 35% 18% 19% 11% 5% 4% 6% 3% (2%) (1%) (12%) (12%) (21%) (21%) (22%) (66%) (66%) Total Network & Professional Depreciation & General & Litigation Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses
Slide 23: 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 24: Free Cash Flow
Free Cash Flow We had cash, cash equivalents and investment securities of $18.7 billion as of March 31, 2021. (USD in millions) Calculation of Free Cash Flow Q2 2021 QTD Q2 2021 YTD Net cash provided by operating activities $3,329 $6,842 Less: capital expenditures (158) (318) Free Cash Flow(1) $3,17
Slide 25: 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