Slide 1: Fiscal Second Quarter 2024 Financial Results
Fiscal Second Quarter 2024 Financial Results April 23, 2024 ©2024 Visa. All rights reserved.
Slide 2: Fiscal Second Quarter 2024 Results
Fiscal Second Quarter 2024 Results Diluted Class A Net Operating Effective Income Common Stock YoY increase / (decrease) except for Effective Income Tax Rate Revenue Expenses Tax Rate Earnings Per Share GAAP Nominal-Dollar Basis 10% 29% 15.4% 12% Non-GAAP Nominal-Dollar Basis(1) 10% 11% 16.0% 20% Fo
Slide 3: Fiscal Second Quarter 2024 Results and Other Highlights
Fiscal Second Quarter 2024 Results and Other Highlights • Growth in payments volume, processed transactions and cross-border volume remained relatively stable • Share repurchases and dividends of $3.8B Income Statement Summary Q2 2024 In billions, except percentages and per share data. % change is c
Slide 4: Operational Performance Metrics through April 21, 2024
Operational Performance Metrics through April 21, 2024 2024 U.S. Payments Volume Growth 2024 Processed Transactions Growth 14% Total Credit Debit 10% 12% 8% 10% 6% 8% 4% 6% 2% 0% 4% Jan Feb* Mar Apr Jan Feb* Mar Apr 1 - 21 1 - 21 2024 Cross-Border Volume Growth 2024 Cross-Border Volume Index vs. 5 Y
Slide 5: Payments Volume Growth: Visa
Payments Volume Growth: Visa Q1 FY2024 Q2 FY2024 10% 9% 9% 8% 7% 5% Nominal Credit Debit Total 9% 9% 8% 8% 8% 8% Constant Credit Debit Total Note: The chart results are calculated over the comparable prior-year period. Refer to Operational Performance Data Footnote for further information on these m
Slide 6: Payments Volume Growth: U.S. and International
Payments Volume Growth: U.S. and International Q1 FY2024 Q2 FY2024 U.S. International Visa 15% 12% 12% 10% 9% 9% 9% 8% 8% 7% 6% 6% 6% 6% 5% 5% 5% 5% Nominal Credit Debit Total Credit Debit Total Credit Debit Total 13% 12% 12% 11% 11% 9% 9% 9% 8% 8% 8% 8% 6% 6% 6% 6% 5% 5% Constant Credit Debit Total
Slide 7: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q2 FY2024 Transactions Cross-Border 17% 16% 16% 11% 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 8: Total Cards (in billions)
Total Cards (in billions) 2023 2024 Q1 FY2024 Credit Debit Visa 4% 7% 6% 4.4 4.2 3.1 2.9 1.2 1.3 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 Second Quarter 2024 Financial
Slide 9: Operational Performance Data Footnote
Operational Performance Data Footnote Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent operating data. Service revenue continues to be recognized based on payments volume in the prior quarter. Total transactio
Slide 10: Revenue Results
Revenue Results Q2 FY2024 37% 12% 12% 10% 9% 7% Service Data International Other Client Net Revenue Processing Transaction Revenue Revenue Incentives Revenue Revenue Reported Nominal USD (in millions) $4,033 $4,259 $2,984 $756 ($3,257) $8,775 Note: The chart results are calculated over the comparabl
Slide 11: Operating Expenses Results
Operating Expenses Results Q2 FY2024 61% 29% 22% 9% NM 6% 6% 7% Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nominal USD (in millions) $1,603 $338 $189 $160 $249 $452 $430 $3,421
Slide 12: Free Cash Flow
Free Cash Flow Cash, cash equivalents and investment securities were $20.8 billion as of March 31, 2024. (in millions) Calculation of Free Cash Flow Q2 2024 Q2 2024 YTD Net cash provided by operating activities $4,538 $8,152 Less: capital expenditures (281) (548) Free cash flow(1) $4,257 $7,604 (1)
Slide 13: Other Notable Items
Other Notable Items • On January 16, 2024, Visa announced it completed its acquisition of Pismo, a global cloud-native issuer processing and core banking platform. With the transaction complete, the combination of Visa and Pismo will provide clients with core banking and card-issuer processing capab
Slide 14: Financial Outlook for Fiscal Third Quarter and Fiscal Full-Year 2024
Financial Outlook for Fiscal Third Quarter and Fiscal Full-Year 2024 Q3 2024 Full-Year 2024 YoY increase / (decrease) on an Adjusted Constant-Dollar Basis (1) Net Revenue Growth Low double-digit Low double-digit Operating Expense Growth Low-teens Low double-digit Diluted Class A Common Stock Earning
Slide 15: Appendix
Appendix ©2024 Visa. All rights reserved.
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present our results and our financial outlook on a non-GAAP basis, 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 distort our longer term operating trends. We
Slide 17: Non-GAAP Financial Measures - continued
Non-GAAP Financial Measures - continued • Litigation provision. Litigation provision includes significant accruals related to certain legal matters that are not covered by the U.S. retrospective responsibility plan or the Europe retrospective responsibility plan (uncovered legal matters) and additio
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Results
Reconciliation of GAAP to Non-GAAP Financial Results Three Months Ended March 31, 2024 Non- operating Income Effective Diluted Operating Income Tax Income Net Earnings Expenses (Expense) Provision(1) Tax Rate(2) Income Per Share(2) (in millions, except percentages and per share data) As reported $ 3
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Three Months Ended March 31, 2024 Network Depreciation General Total and Professional and and Litigation Operating YoY Personnel Marketing Processing Fees Amortization Administrative Provision Expenses Change (in millions, except perce
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Three Months Ended June 30, 2023 Non- operating Income Effective Diluted Operating Income Tax Income Net Earnings Expenses (Expense) Provision(1) Tax Rate(2) Income Per Share(2) (in millions, except percentages and per share data) As r
Slide 21: Reconciliation of Fiscal Third Quarter 2024 Financial Outlook
Reconciliation of Fiscal Third Quarter 2024 Financial Outlook Diluted Class A Common Stock Net Revenue Growth(1) Operating Expense Growth Earnings Per Share Growth YoY increase / (decrease) GAAP Nominal-Dollar Basis High single-digit (Upper mid single-digit) Low 20s Non-GAAP Adjustments(2),(3) N/A ~
Slide 22: Reconciliation of Fiscal Full-Year 2024 Financial Outlook
Reconciliation of Fiscal Full-Year 2024 Financial Outlook Annual Diluted Class A Common Annual Net Revenue Growth(1) Annual Operating Expense Growth Stock Earnings Per Share Growth YoY increase / (decrease) High single-digit to GAAP Nominal-Dollar Basis Mid single-digit Mid to high-teens low double-
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, an