Slide 1: Fourth Quarter and Full Year 2023 Financial Results Conference Call
Mastercard Incorporated Fourth Quarter and Full Year 2023 Financial Results Conference Call January 31, 2024
Slide 2: Business Update
Business Update Key Trends Business Highlights Financial Overview ©2024 Mastercard January 31, 2024 2
Slide 3: 4th Quarter Selected Financial Performance
4th Quarter Selected Financial Performance ($ in millions, except per share data) 4Q 23 4Q 22 YOY Growth Non-GAAP Non-GAAP As adjusted Currency-neutral Net revenue $ 6,548 $ 5,817 13% 11% Adjusted operating expenses 2,868 2,617 10% 9% Adjusted operating income 3,680 3,200 15% 13% Adjusted operating
Slide 4: 4th Quarter Gross Dollar Volume (GDV)
4th Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 10% Growth 4% Growth 13% Growth $2,400 $2,133 $2,352 $2,200 $2,000 $1,625 $1,800 $1,435 $1,237 $1,600 $1,121 $1,400 $1,200 $892 $1,000 $698 $727 $785 $800 $600 $1,115 $336 $345 $400 $1,012 $650 $733 $200 $362
Slide 5: 4th Quarter Switched Transactions and Cards
4th Quarter Switched Transactions and Cards Switched Transactions Cards 12% Growth 8% Growth 4,000 38.1 3,322 40 3,084 34.0 377 3,000 Transactions (in billions) Cards (in millions) 388 30 2,000 20 2,944 2,696 1,000 10 0 0 4Q22 4Q23 4Q22 4Q23 Mastercard Cards Maestro Cards Note: Figures may not sum d
Slide 6: 4th Quarter Net Revenue
4th Quarter Net Revenue ($ in millions) 4Q22 4Q23 $7,000 $6,548 $5,817 $6,000 $5,000 1 1 $3,891 $4,000 $3,585 $3,000 $2,657 $2,232 $2,000 $1,000 $0 Value-added Growth Payment Network Services and Solutions Total Net Revenue GAAP 9% 19% 13% Currency-neutral 7% 17% 11% 1 Payment Network is presented n
Slide 7: 4th Quarter Key Metrics related to the Payment Network
4th Quarter Key Metrics related to the Payment Network ($ in millions) 4Q22 4Q23 $4,000 $3,164 $3,000 $2,831 $2,385 $2,215 $2,198 $2,000 $1,791 $1,000 $190 $251 $0 Cross-Border Transaction Other Domestic Assessments Assessments Processing Assessments Network Assessments Increase/(Decrease) 8% 23% 12
Slide 8: 4th Quarter Adjusted Operating Expenses
4th Quarter Adjusted Operating Expenses ($ in millions) 4Q22 4Q23 $3,000 $2,868 $2,617 $2,500 $2,399 $2,218 $2,000 $1,500 $1,000 $500 $216 $264 $184 $205 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 8% 22% 11% 10% Currenc
Slide 9: Business Update Through January 28
th Business Update Through January 28 Year-over-year growth % 2023 2024 Q3 Oct Nov Dec Q4 Jan 28 MTD 1 Switched volume 14% 10% 11% 10% 11% 10% United States 7% 4% 6% 5% 5% 4% Worldwide less U.S. 19% 15% 15% 14% 15% 14% Switched transactions 15% 11% 12% 13% 12% 11% 1 Cross-border volume 21% 20% 18% 1
Slide 10: Looking Ahead: Thoughts on 2024
Looking Ahead Thoughts on 2024 ©2024 Mastercard January 31, 2024 10
Slide 11: Appendices
Appendices
Slide 12: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended December 31, 2023 Diluted Operating Operating Operating Other income Effective earnings per Net revenue expenses income margin (expense) income tax rate Net income share Reported - GAAP $ 6,548 $ 3,176 $ 3,3
Slide 13: Non-GAAP Reconciliation (continued)
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended December 31, 2023 as compared to the Three Months Ended December 31, 2022 Increase/(Decrease) Operating Operating Operating Effective income Diluted earnings Net revenue expenses income margin tax rate Net income per share Reported -
Slide 14: Non-GAAP Reconciliation: 2024 financial outlook
Appendix B Non-GAAP Reconciliation 2024 financial outlook 2024 vs. 2023 Increase/(Decrease) Net Revenue Operating Expenses 1 High-end of Forecasted Growth - GAAP Mid-single-digits low-double-digits 2 Litigation provisions ** 5% High-end of Low-end of Non-GAAP Growth low-double-digits low-double-digi
Slide 15: Non-GAAP Reconciliation: First quarter 2024 financial outlook
Appendix C Non-GAAP Reconciliation First quarter 2024 financial outlook Q1'24 vs. Q1'23 Increase/(Decrease) Net Revenue Operating Expenses 1 Low-end of Forecasted Growth - GAAP Minimal low-double-digits 2 Litigation provisions ** 9% Low-end of High-end of Non-GAAP Growth low-double-digits high-singl
Slide 16: Key Metrics related to the Payment Network
Appendix D Key Metrics related to the Payment Network • Domestic assessments are charges based on activity related to cards that carry the Company’s brands where the merchant country and the country of issuance are the same. These assessments are primarily driven by the domestic dollar volume of act
Slide 17: Revenue Growth Drivers
Appendix E Revenue Growth Drivers Three Months Ended December 31, 2023 as compared to the Three Months Ended December 31, 2022 Currency 1,2 Operational Acquisitions Impact Total Payment network 7% ** 1% 9% Value-added services and solutions 17 % —% 2% 19 % Net revenue 11 % —% 2% 13 % Note: Figures m
Slide 18: Operating Expense Growth Drivers (Non-GAAP)
Appendix F 1 Operating Expense Growth Drivers (Non-GAAP) Three Months Ended December 31, 2023 as compared to the Three Months Ended December 31, 2022 Special1 Currency 2 Operational Items Acquisitions Impact Total General and administrative 7% ** 1% 1% 8% Advertising and marketing 20 % ** —% 2% 22 %
Slide 19: 4th Quarter G&A Detail
Appendix G 4th Quarter G&A Detail ($ in millions) Increase/(Decrease) 4Q 23 4Q 22 $ % Personnel $ 1,528 $ 1,381 $ 147 11 % Professional fees 163 167 (4) (2)% Data processing and telecommunications 265 238 27 12 % 1 Foreign exchange activity 18 (7) 25 ** Other 425 439 (14) (3)% Total general and admi