Slide 1: Fiscal Fourth Quarter 2023 Financial Results
Fiscal Fourth Quarter 2023 Financial Results October 24, 2023 ©2023 Visa. All rights reserved.
Slide 2: Fiscal Fourth Quarter 2023 Results
Fiscal Fourth Quarter 2023 Results Diluted Class A Net Operating Effective Income Common Stock YoY Increase / (Decrease) Revenues Expenses Tax Rate Earnings Per Share GAAP Nominal-Dollar Basis 10.6% 13.3% 16.9% 21.8% Non-GAAP Nominal-Dollar Basis(1) 10.6% 9.5% 17.0% 20.6% Foreign Currency Impact ~0.
Slide 3: Fiscal Fourth Quarter 2023 Results and Other Highlights
Fiscal Fourth Quarter 2023 Results and Other Highlights • Fiscal fourth quarter payments volume growth and processed transaction growth were stable while cross-border volume growth remained strong • Returned $5.0B of capital to shareholders in the form of share repurchases and dividends • The board
Slide 4: Non-GAAP and Adjusted Constant-Dollar Results Footnote
Non-GAAP and Adjusted Constant-Dollar Results Footnote We use non-GAAP and adjusted constant-dollar financial measures of our performance, 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 dis
Slide 5: Operational Performance Metrics Monthly Growth
Operational Performance Metrics Monthly Growth 2022 - 2023 U.S. Payments Volume Growth Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 30% 30% 20% 20% 10% 10% 0% 0% Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct 1 - 21 1 - 21 Note: Results a
Slide 6: Operational Performance Metrics Monthly Index vs. 4 Years Ago
Operational Performance Metrics Monthly Index vs. 4 Years Ago 2022 - 2023 U.S. Payments Volume Index vs. 4 Years Ago Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 200 200 190 190 180 180 170 170 160 160 150 150 140 140 130 130 120 120 Oct Nov Dec Jan Feb M
Slide 7: Operational Performance Metrics Monthly Growth
Operational Performance Metrics Monthly Growth 2022 - 2023 Processed Transactions Growth 40% 30% 20% 10% 0% Jan Apr Jul Oct Jan Apr Jul Oct 1 - 21 Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data Footnote for further information on these metri
Slide 8: Operational Performance Metrics Monthly Index vs. 4 Years Ago
Operational Performance Metrics Monthly Index vs. 4 Years Ago 2022 - 2023 Processed Transactions Index vs. 4 Years Ago 170 160 150 140 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 1 - 21 Note: The charts reflect a comparison of transactions indexed to four years ago, with October - December 2
Slide 9: Operational Performance Metrics Monthly Growth
Operational Performance Metrics Monthly Growth 2022 - 2023 Cross-Border Volume Growth 2022 - 2023 Cross-Border Volume Growth (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Total Card Not Present Card Not Present, Excludi
Slide 10: Operational Performance Metrics Monthly Index vs. 4 Years Ago
Operational Performance Metrics Monthly Index vs. 4 Years Ago 2022 - 2023 Cross-Border Volume Index vs. 4 Years Ago 2022 - 2023 Cross-Border Volume Index vs. 4 Years Ago (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Tot
Slide 11: Payments Volume Results Q4 FY2023
Payments Volume Results Nominal Q4 FY2023 Constant Visa Inc. Credit Debit 11% 9% 9% 9% 8% 7% Nominal USD (in billions) U.S. $1,569 $767 $801 International $1,627 $830 $797 Total $3,196 $1,597 $1,599 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational Pe
Slide 12: Payments Volume Results Q3 FY2023
Payments Volume Results Nominal Q3 FY2023 Constant Visa Inc. Credit Debit 9% 9% 8% 8% 8% 7% Nominal USD (in billions) U.S. $1,572 $766 $806 International $1,594 $826 $768 Total $3,166 $1,592 $1,574 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational Per
Slide 13: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q4 FY2023 Transactions Cross-Border 21% 18% 16% 11% 10% 10% 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 14: Total Cards (in millions)
Total Cards (in millions) 2022 Q3 FY2023 2023 Total Visa Inc. Credit Debit 7% 4% 8% 4,260 3,976 2,981 2,749 1,227 1,279 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 Fourth
Slide 15: Operational Data Performance Footnote
Operational Data Performance 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 16: Revenues Results
Revenues Results Q4 FY2023 35% 20% 13% 12% 11% 10% Service Data International Other Client Net Revenues Processing Transaction Revenues Incentives Revenues Revenues Revenues Reported Nominal USD (in millions) $3,876 $4,256 $3,172 $744 ($3,439) $8,609 Note: The chart results are calculated over the c
Slide 17: Operating Expenses Results
Operating Expenses Results Q4 FY2023 22% 13% 11% 9% 7% 7% NM (6%) Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nominal USD (in millions) $1,498 $403 $197 $173 $247 $412 $129 $3,0
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Results
Reconciliation of GAAP to Non-GAAP Financial Results Three Months Ended September 30, 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 September 30, 2023 Network Depreciation General Total and Professional and and Litigation Operating YoY Personnel Marketing Processing Fees Amortization Administrative Provision Expenses Change (in millions, except p
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Three Months Ended December 31, 2022 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)
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Gains and losses on equity investments. Gains and losses on equity investments include periodic non-cash fair value adjustments and gains and losses upon sale of an investment. These long-term investments are strategic in nature and ar
Slide 22: Other Notable Items
Other Notable Items • On September 13, 2023, Visa announced that it is engaging with its common stockholders on the subject of potential amendments to its Seventh Restated Certificate of Incorporation that would authorize Visa to conduct an exchange offer program that would have the effect of releas
Slide 23: Financial Outlook for Fiscal Full-Year 2024
Financial Outlook for Fiscal Full-Year 2024 Our non-GAAP and adjusted constant-dollar fiscal full-year financial outlook excludes 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 op
Slide 24: Free Cash Flow
Free Cash Flow Cash, cash equivalents and investment securities were $22.0 billion as of September 30, 2023. (in millions) Calculation of Free Cash Flow Q4 2023 Q4 2023 YTD Net cash provided by operating activities $6,927 $20,755 Less: capital expenditures (305) (1,059) Free cash flow(1) $6,622 $19,
Slide 25: 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