Slide 1: Fiscal Third Quarter 2023 Financial Results
Fiscal Third Quarter 2023 Financial Results July 25, 2023 ©2023 Visa. All rights reserved.
Slide 2: Fiscal Third Quarter 2023 Results
Fiscal Third Quarter 2023 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 11.7% 28.1% (0.9%) 19.2% 24.7% Non-GAAP Nominal-Dollar Basis(1) 1
Slide 3: Fiscal Third Quarter 2023 Results and Other Highlights
Fiscal Third Quarter 2023 Results and Other Highlights • Payments volume and processed transaction growth was relatively stable while cross-border volume growth remained strong • Share repurchases and dividends of $3.9B Income Statement Summary Q3 2023 In billions, except percentages and per share d
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 Mar May Jul Sep Nov Jan Mar May Jul Jan Mar May Jul Sep Nov Jan Mar May Jul 1-21 1-21 Not
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 Mar May Jul Sep Nov Jan Mar May Jul 1-21 Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data Footnote for further information on these
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 1-21 Note: The chart reflects a comparison of transactions indexed to four years ago, with October - December 2022 indexed to
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
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 12: Payments Volume Results
Payments Volume Results Nominal Q2 FY2023 Constant Visa Inc. Credit Debit 13% 10% 9% 7% 6% 4% Nominal USD (in billions) U.S. $1,470 $705 $766 International $1,487 $784 $703 Total $2,957 $1,488 $1,469 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational P
Slide 13: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q3 FY2023 Transactions Cross-Border 22% 18% 17% 10% 11% 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 24
Slide 14: Total Cards (in millions)
Total Cards (in millions) 2022 Q2 FY2023 2023 Total Visa Inc. Credit Debit 7% 4% 8% 4,201 3,931 2,941 2,717 1,215 1,261 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 Third
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: Revenue Results
Revenue Results Q3 FY2023 23% 15% 15% 15% 15% 14% 12% Service Data International Other Gross Client Net Revenues Processing Transaction Revenues Revenues Incentives Revenues Revenues Revenues Reported Nominal USD (in millions) $3,668 $4,105 $2,920 $597 $11,290 ($3,167) $8,123 Client Incentives as a
Slide 17: Operating Expenses Results
Operating Expenses Results Q3 FY2023 15% 13% 9% 3% 2% (1%) (5%) (36%) Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nominal USD (in millions) $1,481 $297 $182 $133 $235 $314 $ 457
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Results
Reconciliation of GAAP to Non-GAAP Financial Results Three Months Ended June 30, 2023 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 $ 3,099
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Three Months Ended June 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 percen
Slide 20: 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 21: Other Notable Items
Other Notable Items • On June 20, 2023, Visa announced the appointment of Chris Suh as Executive Vice President, Chief Financial Officer, effective August 1, 2023. Mr. Suh commenced employment with Visa on July 10, 2023 as CFO Designate ahead of assuming the CFO position on August 1, 2023. • On June
Slide 22: Free Cash Flow
Free Cash Flow Cash, cash equivalents and investment securities were $20.9 billion as of June 30, 2023. (in millions) Calculation of Free Cash Flow Q3 2023 Q3 2023 YTD Net cash provided by operating activities $5,797 $13,828 Less: capital expenditures (295) (754) Free cash flow(1) $5,502 $13,074 (1)
Slide 23: 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