Slide 1: Fiscal First Quarter 2023 Financial Results
Fiscal First Quarter 2023 Financial Results January 26, 2023 ©2023 Visa. All rights reserved.
Slide 2: Fiscal First Quarter 2023 Results
Fiscal First Quarter 2023 Results(1) 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 12.4% 26.0% 24.7% 16.0% 8.4% Non-GAAP Nominal-Dollar Basis(2)
Slide 3: Fiscal First Quarter 2023 Results and Other Highlights
Fiscal First Quarter 2023 Results and Other Highlights • Payments volume and processed transaction growth remained stable while cross-border travel continued to recover • Returned $4.0B of capital to shareholders in the form of share repurchases and dividends Income Statement Summary Q1 2023 In bill
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 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct N
Slide 6: Operational Performance Metrics Monthly Index vs. 3 years ago
Operational Performance Metrics Monthly Index vs. 3 years ago 2022 - 2023 U.S. Payments Volume Index vs. 3 years ago Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 200 200 190 190 180 180 170 170 160 160 150 150 140 140 130 130 120 120 110 110 100 100 Jan F
Slide 7: Operational Performance Metrics Monthly Growth
Operational Performance Metrics Monthly Growth 2022 - 2023 Processed Transactions Growth 60% 50% 40% 30% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 1-21 Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further
Slide 8: Operational Performance Metrics Monthly Index vs. 3 years ago
Operational Performance Metrics Monthly Index vs. 3 years ago 2022 - 2023 Processed Transactions Index vs. 3 years ago 160 150 140 130 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 1-21 Note: The charts reflect a comparison of transactions indexed to three years ago, with January - December 20
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. 3 years ago
Operational Performance Metrics Monthly Index vs. 3 years ago 2022 - 2023 Cross-Border Volume Index vs. 3 years ago 2022 - 2023 Cross-Border Volume Index vs. 3 years ago (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Tot
Slide 11: Operational Performance Metrics Monthly Index vs. 2019
Operational Performance Metrics Monthly Index vs. 2019 2022 - 2023 Cross-Border Volume Index vs. 2019 2022 - 2023 Cross-Border Volume Index vs. 2019 (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Total Card Not Present C
Slide 12: Payments Volume Results Q1 FY2023
Payments Volume Results Nominal Q1 FY2023 Constant Visa Inc. Credit Debit 11% 7% 5% 3% 2% (1%) Nominal USD (in billions) U.S. $1,523 $746 $777 International $1,491 $784 $707 Total $3,014 $1,531 $1,484 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational
Slide 13: Payments Volume Results Q4 FY2022
Payments Volume Results Nominal Q4 FY2022 Constant Visa Inc. Credit Debit 17% 11% 10% 5% 4% (1%) Nominal USD (in billions) U.S. $1,480 $727 $753 International $1,449 $767 $682 Total $2,929 $1,494 $1,435 Note: The chart results are calculated over the comparable prior-year period. Refer to Operationa
Slide 14: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q1 FY2023 Transactions Cross-Border 31% 22% 11% 10% 2% 2% 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 23,3
Slide 15: Total Cards (in millions)
Total Cards (in millions) 2021 Q4 FY2022 2022 Total Visa Inc. Credit Debit 8% 6% 8% 4,121 3,824 2,872 2,650 1,174 1,249 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 First
Slide 16: 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 17: Revenue Results
Revenue Results Q1 FY2023 31% 29% 18% 14% 12% 10% 6% Service Data International Other Gross Client Net Revenues Processing Transaction Revenues Revenues Incentives Revenues Revenues Revenues Reported Nominal USD (in millions) $3,511 $3,827 $2,797 $587 $10,722 ($2,786) $7,936 Client Incentives as a %
Slide 18: Operating Expenses Results
Operating Expenses Results Q1 FY2023 130% 33% 25% 19% 18% 15% 9% (6%) Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nominal USD (in millions) $1,337 $332 $178 $109 $227 $322 $341
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Results
Reconciliation of GAAP to Non-GAAP Financial Results Three Months Ended December 31, 2022 Non- Diluted operating Income Effective Earnings Operating Income Tax Income Net Per Expenses (Expense) Provision Tax Rate(1) Income Share(1) (in millions, except percentages and per share data) As reported $ 2
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 Network Depreciation General Total and Professional and and Litigation operating YoY Personnel Marketing processing fees amortization administrative provision expenses Change (in millions, except pe
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 November 17, 2022, Visa announced the appointment of Ryan McInerney as CEO, effective February 1, 2023. Mr. McInerney currently serves as President of Visa, a role he has held since 2013. He will take over as CEO from Alfred F. Kelly, Jr., who has served as the company’s CEO
Slide 23: Free Cash Flow
Free Cash Flow We had cash, cash equivalents and investment securities of $18.9 billion as of December 31, 2022. (USD in millions) Calculation of Free Cash Flow Q1 2023 Net cash provided by operating activities $4,171 Less: capital expenditures (249) (1) Free cash flow $3,922 (1) Free Cash Flow is c
Slide 24: 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 and