Visa Inc. · NYSE:V
Visa — Q2 2022 Earnings Presentation
21 slides from Visa's earnings presentation, Apr 26, 2022
Slide 1: Fiscal Second Quarter 2022 Financial Results
Fiscal Second Quarter 2022 Financial Results April 26, 2022 ©2022 Visa. All rights reserved.
Slide 2: Fiscal Second Quarter 2022 Results
Fiscal Second 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 25% 25.8% 11% 19.7% 23% Non-GAAP Nominal-Dollar Basis(1) N/A N/A
Slide 3: 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 which we believe are not representative of our continuing operations, as they may be non-recurring or have no cash impact, and may dis
Slide 4: Fiscal Second Quarter 2022 Results: Income Statement Summary and Key Business Drivers
Fiscal Second Quarter 2022 Results • Payments volume, cross-border volume and processed transaction growth remained robust • Returned $3.7B of capital to shareholders in the form of share repurchases and dividends Income Statement Summary Q2 2022 In billions, except percentages and per share data. %
Slide 5: Operational 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: Operational Performance Metrics Monthly Index vs. 3 years ago: U.S. Payments Volume
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 U.S. Payments Volume Index vs. 3 years ago Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 180 180 170 170 160 160 150 150 140 140 130 130 120 120 110 110 100 100 Oct Nov Dec Jan Feb M
Slide 7: Operational 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 Feb Mar Apr 1-21 Note: February growth rate would have been 2% in 2021 if the impact of February 29, 2020 was excluded. Results are
Slide 8: Operational Performance Metrics Monthly Index vs. 3 years ago: Processed Transactions
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 Processed Transactions Index vs. 3 years ago 150 140 130 120 110 100 Oct Nov Dec Jan Feb Mar Apr 1-21 Note: The charts reflect a comparison of volume and transactions indexed to three years ago, with October - December 2021 in
Slide 9: Operational 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: Operational Performance Metrics Monthly Index vs. 3 years ago: Cross-Border Volume
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 Cross-Border Volume Index vs.3 years ago 2021 - 2022 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 Tota
Slide 11: Payments Volume Results Q2 FY2022
Payments Volume Results Nominal Q2 FY2022 Constant Visa Inc. Credit Debit 22% 20% 17% 14% 12% 10% Nominal USD (in billions) U.S. $1,337 $638 $699 International $1,438 $732 $705 Total $2,775 $1,370 $1,405 Note: The chart results are calculated over the comparable prior-year period. Refer to Operation
Slide 12: Payments Volume Results Q1 FY2022
Payments Volume Results Nominal Q1 FY2022 Constant Visa Inc. Credit Debit 20% 20% 20% 21% 19% 19% Nominal USD (in billions) U.S. $1,394 $678 $716 International $1,568 $785 $783 Total $2,963 $1,464 $1,499 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 Q2 FY2022 Transactions Cross-Border 47% 38% 31% 19% 15% 16% 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 20
Slide 14: Total Cards (in millions)
Total Cards (in millions) 2021 Q1 FY2022 2022 Total Visa Inc. Credit Debit 9% 4% 12% 3,922 3,588 2,715 2,431 1,157 1,207 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 Secon
Slide 15: Revenue Results
Revenue Results Q2 FY2022 48% 24% 25% 25% 25% 21% 16% Service Data International Other Gross Client Net Revenues Processing Transaction Revenues Revenues Incentives Revenues Revenues Revenues Reported Nominal USD (in millions) $3,521 $3,480 $2,208 $474 $9,683 ($2,494) $7,189 Client Incentives as a %
Slide 16: Operating Expenses Results
Operating Expenses Results Q2 FY2022 53% 53% 10% 11% 7% 3% (10%) (110%) Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nominal USD (in millions) $1,226 $314 $190 $125 $207 $325 $—
Slide 17: GAAP to Non-GAAP Operating Expenses Results
GAAP to Non-GAAP Operating Expenses Results Q2 FY2022 Three Months Ended March 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 percentages) As
Slide 18: Other Notable Items
Other Notable Items • On March 10, 2022, Visa acquired Tink – an open banking platform that enables financial institutions, fintechs and merchants to build financial products and services and move money. Through a single API, Tink enables its customers to move money, access aggregated financial data
Slide 19: 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 20: Free Cash Flow
Free Cash Flow We had cash, cash equivalents and investment securities of $15.8 billion as of March 31, 2022. (USD in millions) Calculation of Free Cash Flow Q2 2022 Q2 2022 YTD Net cash provided by operating activities $3,489 $7,721 Less: capital expenditures (267) (440) (1) Free cash flow $3,222 $
Slide 21: 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, our future operations, prospects, developments, strategies, business growth and anticipated timing and