Visa Inc. · NYSE:V
Visa — Q1 2020 Earnings Presentation
15 slides from Visa's earnings presentation, Jan 30, 2020
Slide 1: Visa Inc. Fiscal First Quarter 2020 Financial Results
Visa Inc. Fiscal First Quarter 2020 Financial Results January 30, 2020
Slide 2: Fiscal First Quarter 2020 – Adjusted Constant-Dollar Results
Fiscal First Quarter 2020 ꟷ Adjusted Constant-Dollar Results GAAP Non-GAAP Foreign Adjusted Acquisition Nominal-Dollar Nominal-Dollar Currency Constant-Dollar Impact Basis Basis(1) Impact Basis(2) ~1% ~0.5% Net Revenues Growth 10% 10% ~11% Decrease Increase Client Incentives as a 0.1% 22.4% 22.4% 22
Slide 3: Adjusted Constant-Dollar Results Footnote
Adjusted Constant-Dollar Results Footnote We consider the 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 continuin
Slide 4: Fiscal First Quarter 2020 Results
Fiscal First Quarter 2020 Results • Growth in underlying business drivers remained strong • Returned $3.0B of capital to shareholders in the form of share repurchases and dividends • The board of directors authorized a new $9.5 billion share repurchase program GAAP Non-GAAP(1) in billions, except pe
Slide 5: Payments Volume Growth
Payments Volume Growth Q1 FY2020 Nominal Constant Visa Inc. Credit Debit 11% 10% 8% 8% 6% 5% Nominal USD (in billions) U.S. $1,056 $554 $502 International $1,304 $731 $573 Total $2,360 $1,285 $1,075 Note: Refer to Operational Performance Data footnote for further information on these metrics. 4 Fisc
Slide 6: Payments Volume Growth
Payments Volume Growth Q4 FY2019 Nominal Constant Visa Inc. Credit Debit 11% 9% 9% 7% 7% 6% Nominal USD (in billions) U.S. $1,023 $533 $490 International $1,247 $712 $535 Total $2,270 $1,245 $1,025 Note: Refer to Operational Performance Data footnote for further information on these metrics. 5 Fisca
Slide 7: Transactions and Cross-Border Volume Growth
Transactions and Cross-Border Volume Growth Q1 FY2020 Transactions Cross-Border 11% 11% 10% Credit Credit 9% 38% 38% 7% Debit 62% Total Payment Processed Nominal Constant Transaction Count (in billions) Credit 18,578 18,354 Debit 36,266 30,973 Total 54,845 49,327 37,775 Note: Refer to Operational Pe
Slide 8: Total Cards
Total Cards (USD in millions) Q4 FY2019 2018 2019 3,345 3,385 2,239 2,246 1,106 1,140 Total Visa Inc. Credit Debit YoY Change 1% 3% 0% Note: Refer to Operational Performance Data footnote for further information on these metrics. 7 Fiscal First Quarter 2020 Financial Results ©2020 Visa. All rights r
Slide 9: Revenue Growth
Revenue Growth Reported Q1 FY2020 Adjusted 22% 20% 16% 12% 11% 10% 9% 9% Service Data Processing International Other Gross Client Net Revenues Revenues Transaction Revenues Revenues Incentives Revenues Revenues Reported Nominal USD $2,555 $2,864 $2,018 $365 $7,802 $1,748 $6,054 (in millions) Client
Slide 10: Operating Expense Growth
Operating Expense Growth Reported Non-GAAP Q1 FY2020 Adjusted 22% 21% 16% 15% 15% 14% 13% 12% 13% 13% 8% 5% 4% (1%) (1%) (94%) (94%) Network & Total Personnel Marketing Professional Depreciation & General & Litigation Processing Operating Fees Amortization Administrative Provision Expenses Reported
Slide 11: Other Financial Results and Highlights
Other Financial Results and Highlights • On October 22, 2019, Visa announced it completed the acquisition of the token services and ticketing business of Rambus. These businesses will enable Visa to extend the security and convenience of tokenization to all types of transactions, including the abili
Slide 12: Financial Outlook for Fiscal Full-Year 2020
Financial Outlook for Fiscal Full-Year 2020 GAAP Foreign Adjusted Acquisition Nominal-Dollar Currency Constant-Dollar Impact Basis Impact Basis(1) ~1% ~0.5% Annual Net Revenues Growth Low double-digit Low double-digit decrease increase Client Incentives as a High end of 22.5% to High end of 22.5% to
Slide 13: 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 14: Free Cash Flow
Free Cash Flow (USD in millions) The Company had cash, cash equivalents and investment securities of $14.4 billion as of December 31, 2019. Calculation of Free Cash Flow Q1 2020 Net cash provided by operating activities $3,875 Less: capital expenditures (191) Free Cash Flow(1) $3,684 (1) Free Cash F
Slide 15: 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