Visa Inc. · NYSE:V
Visa — Q3 2021 Earnings Presentation
26 slides from Visa's earnings presentation, Jul 27, 2021
Slide 1: Fiscal Third Quarter 2021 Financial Results
Edit Master Visa Inc. text styles FiscalTo Click Third EditQuarter Master Title 2021 Financial Results Edit 27, July Master 2021text styles
Slide 2: Fiscal Third Quarter 2021 Results
Fiscal Third Quarter 2021 Results Client Incentives Diluted Class A Net as a % of Operating Effective Income Common Stock YoY Increase / (Decrease) Revenues Gross Revenues Expenses Tax Rate Earnings Per Share GAAP Nominal-Dollar Basis 12% 41.3% 10% 27%* 25.8% Non-GAAP Nominal-Dollar Basis(1) 12% 17.
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 Third Quarter 2021 Results
Fiscal Third Quarter 2021 Results • Our key business driver growth rates increased significantly from the COVID-19 impacted levels in 2020, making year-over-year comparisons difficult to interpret • Indexed to 2019, fiscal third quarter payments volume, cross-border volume and processed transactions
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 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 Mar Apr Ma
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 May Jun Jul 1-21 2020 2021 Note: February growth rates would have been 12% and 2% in 2020 and 2021, respectively, if the impac
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 124 122 120 118 116 114 112 110 108 106 104 102 100 Oct Nov Dec Jan Feb Mar Apr May Jun Jul 1-21 2020 2021 Not
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% April May June July April May June July 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 7
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 160 160 140 140 120 120
Slide 13: Operational Performance Metrics Weekly Growth: Processed Transactions
Operational Performance Metrics Weekly Growth Processed Transactions 60% 40% 20% 0% April May June July 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 Week Ended Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on
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 124 120 116 112 108 104 100 April May June July 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 Week Ended Note: Ref
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 160% 160% 140% 140% 120% 120%
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 Q3 FY2021
Payments Volume Results Nominal Q3 FY2021 Constant Visa Inc. Credit Debit 42% 39% 36% 37% 34% 31% Nominal USD (in billions) U.S. $1,330 $600 $730 International $1,389 $683 $705 Total $2,719 $1,283 $1,435 Note: The chart results are calculated over the comparable prior-year period. Refer to Operation
Slide 18: 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 $642 $624 Total $2,423 $1,143 $1,280 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational
Slide 19: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q3 FY2021 Transactions Cross-Border 59% 53% 47% 39% 34% 36% Total Payments Processed Total Total Constant Nominal Constant (excluding Transaction Count (in millions) (1) Intra-Europe) Credit 18,974 18,801 (1) Cross-border volume excluding transactions wit
Slide 20: Total Cards (in millions)
Total Cards (in millions) Q2 FY2021 2020 2021 3,642 3,445 2,485 2,303 1,142 1,157 Total Visa Inc. Credit Debit 6% 1% 8% 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 Thi
Slide 21: Revenue Results
Revenue Results Q3 FY2021 Reported Adjusted 54% 41% 32% 31% 30% 27% 26% 17% International Service Data Processing Transaction Other Gross Client Net Revenues Revenues Revenues Revenues Revenues Incentives Revenues Reported Nominal USD (in millions) $2,828 $3,327 $1,696 $409 $8,260 ($2,130) $6,130 Cl
Slide 22: Operating Expense Results
Operating Expense Results Reported Q3 FY2021 Non-GAAP Adjusted 54% 54% 17% 17% 8% 9% 13% 13% 12% 12% 12% 3% 3% (21%) (21%) (309%) (309%) Total Network & Professional Depreciation & General & Litigation Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Repor
Slide 23: Other Financial Results and Highlights
Other Financial Results and Highlights • On June 24, 2021, Visa announced it signed a definitive agreement to acquire Tink, a European open banking platform that enables financial institutions, fintechs and merchants to build tailored financial management tools, products and services for European co
Slide 24: 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 25: Free Cash Flow
Free Cash Flow We had cash, cash equivalents and investment securities of $20.4 billion as of June 30, 2021. (USD in millions) Calculation of Free Cash Flow Q3 2021 QTD Q3 2021 YTD Net cash provided by operating activities $4,414 $11,256 Less: capital expenditures (179) (497) Free Cash Flow(1) $4,23
Slide 26: 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