Visa Inc. · NYSE:V
Visa — Q1 2022 Earnings Presentation
20 slides from Visa's earnings presentation, Jan 27, 2022
Slide 1: Fiscal First Quarter 2022 Financial Results
Fiscal First Quarter 2022 Financial Results January 27, 2022 ©2022 Visa. All rights reserved.
Slide 2: Fiscal First Quarter 2022 Results
Fiscal First Quarter 2022 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 24% 19.1% 29% 24% 25.1% (1) Non-GAAP Nominal-Dollar Basis 16% 19.
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 First Quarter 2022 Results: Income Statement Summary and Key Business Drivers
Fiscal First Quarter 2022 Results Payments volume, cross-border volume and processed transaction growth all accelerated versus the prior quarter Returned $4.9B of capital to shareholders in the form of share repurchases and dividends In December, the board of directors authorized a new $12.0 billion
Slide 5: Performance Metrics Monthly Growth: U.S. Payments Volume
Operational Performance Metrics Monthly Growth 2021 - 2022 U.S. Payments Volume Growth Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 100% 100% U.S. Stimulus Payments 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% (20%) (20%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 6: Performance Metrics Monthly Index vs. 2019: U.S. Payments Volume
Operational Performance Metrics Monthly Index vs. 2019 2021 and 2022 results are indexed to the corresponding period in 2019, with a baseline of 100 2021 - 2022 U.S. Payments Volume Index vs. 2019 Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 180 180 170 1
Slide 7: Performance Metrics Monthly Growth: Processed Transactions
Operational Performance Metrics Monthly Growth 2021 - 2022 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: February growth rate would have been 2% in 2021 if the impact of February 29, 2020 was excluded. Results are calculated o
Slide 8: Performance Metrics Monthly Index vs. 2019: Processed Transactions
Operational Performance Metrics Monthly Index vs. 2019 2021 and 2022 results are indexed to the corresponding period in 2019, with a baseline of 100 2021 - 2022 Processed Transactions Index vs. 2019 150 145 140 135 130 125 120 115 110 105 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 1-21
Slide 9: Performance Metrics Monthly Growth: Cross-Border Volume
Operational Performance Metrics Monthly Growth 2021 - 2022 Cross-Border Volume Growth 2021 - 2022 Cross-Border Volume Growth (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Excluding Intra-Europe Total Total Card Present + Card Not Present Travel Card Not Present Card Not Present, Excludi
Slide 10: Performance Metrics Monthly Index vs. 2019: Cross-Border Volume
Operational Performance Metrics Monthly Index vs. 2019 2021 and 2022 results are indexed to the corresponding period in 2019, with a baseline of 100 2021 - 2022 Cross-Border Volume Index vs. 2019 2021 - 2022 Cross-Border Volume Index vs. 2019 (Constant Dollar) Excluding Intra-Europe (Constant Dollar
Slide 11: Payments Volume Results Q1 FY2022
Payments Volume Results Nominal Q1 FY2022 Constant Visa Inc. Credit Debit 21% 22% 20% 20% 19% 19% Nominal USD (in billions) U.S. $1,396 $681 $715 International $1,569 $785 $784 Total $2,966 $1,467 $1,499 Note: The chart results are calculated over the comparable prior-year period. Refer to Operation
Slide 12: Payments Volume Results Q4 FY2021
Payments Volume Results Nominal Q4 FY2021 Constant Visa Inc. Credit Debit 20% 18% 17% 18% 17% 15% Nominal USD (in billions) U.S. $1,325 $623 $703 International $1,458 $720 $738 Total $2,784 $1,343 $1,441 Note: The chart results are calculated over the comparable prior-year period. Refer to Operation
Slide 13: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q1 FY2022 Transactions Cross-Border 51% 40% 37% 21% 21% 19% Total Payments Processed Total Total Constant Nominal Constant (excluding Transaction Count (in millions) (1) Intra-Europe) (1) Cross-border volume excluding transactions within Europe. Credit 21
Slide 14: Total Cards (in millions)
Total Cards (in millions) 2020 Q4 FY2021 2021 Total Visa Inc. Credit Debit 10% 3% 13% 3,834 3,494 2,654 2,353 1,141 1,181 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 Firs
Slide 15: Revenue Results
Revenue Results Reported Q1 FY2022 Adjusted 50% 28% 25% 24% 25% 19% 19% 17% Service Data International Other Gross Client Net Revenues Processing Transaction Revenues Revenues Incentives Revenues Revenues Revenues Reported Nominal USD (in millions) $3,193 $3,614 $2,174 $449 $9,430 ($2,371) $7,059 Cl
Slide 16: Operating Expenses Results
Operating Expenses Results Reported Q1 FY2022 Non-GAAP Adjusted 174% 36% 36% 24% 19% 19% 19% 17% 16% 16% 15% 15% 9% 9% 1% 0% NM Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nomin
Slide 17: Other Notable Items
Other Notable Items On December 20, 2021, Visa completed the acquisition of Currencycloud, a global platform that enables banks and fintechs to provide innovative foreign exchange solutions for cross-border payments. The acquisition will empower Visa and Currencycloud clients and partners to provide
Slide 18: 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 19: Free Cash Flow
Free Cash Flow We had cash, cash equivalents and investment securities of $18.0 billion as of December 31, 2021. (USD in millions) Calculation of Free Cash Flow Q1 2022 Net cash provided by operating activities $4,232 Less: capital expenditures (173) (1) Free cash flow $4,059 (1) Free Cash Flow is c
Slide 20: 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 th