Visa Inc. · NYSE:V
Visa — Q2 2020 Earnings Presentation
15 slides from Visa's earnings presentation, Apr 30, 2020
Slide 1: Visa Inc. Fiscal Second Quarter 2020 Financial Results
Visa Inc. Fiscal Second Quarter 2020 Financial Results April 30, 2020
Slide 2: Fiscal Second Quarter 2020 Results
Fiscal Second Quarter 2020 Results Diluted Class A Client Incentives Common Stock Net as a % of Operating Effective Tax Earnings Per YoY Increase / (Decrease) Revenue Gross Revenue Expense Rate Share GAAP Nominal-Dollar Basis 4% 19.4% 6% 7% 22.6% Non-GAAP Nominal-Dollar 3% 19.5% 9% Basis(1) Foreign
Slide 3: Non-GAAP and Adjusted Constant-Dollar Results Footnote
Non-GAAP and Adjusted Constant-Dollar Results Footnote We consider the 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
Slide 4: Fiscal Second Quarter 2020 Results: Q2 2020 Key Business Drivers
Fiscal Second Quarter 2020 Results • As a result of the COVID-19 outbreak, growth in the underlying business drivers slowed during the quarter, with significant declines in the month of March • Returned $3.9B of capital to shareholders in the form of share repurchases and dividends GAAP Non-GAAP(1)
Slide 5: Operational Performance Metrics Summary
Operational Performance Metrics Summary 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% (10%) (10%) (20%) (20%) (30%) (30%) (40%) (40%) (50%) (50%) Jan Feb Mar Mar Mar Mar Apr Apr Apr Apr Jan Feb Mar
Slide 6: Payments Volume Growth
Payments Volume Growth Q2 FY2020 Nominal Constant Visa Inc. Credit Debit 9% 8% 5% 3% 1% (1%) Nominal USD (in billions) U.S. $984 $492 $492 International $1,157 $633 $524 Total $2,141 $1,126 $1,016 Note: Refer to Operational Performance Data footnote for further information on these metrics. 5 Fiscal
Slide 7: Payments Volume Growth
Payments Volume Growth Q1 FY2020 Nominal Constant Visa Inc. Credit Debit 11% 11% 8% 8% 6% 5% Nominal USD (in billions) U.S. $1,057 $554 $503 International $1,304 $731 $574 Total $2,361 $1,285 $1,076 Note: Refer to Operational Performance Data footnote for further information on these metrics. 6 Fisc
Slide 8: Transactions and Cross-Border Volume Growth
Transactions and Cross-Border Volume Growth Q2 FY2020 Transactions Cross-Border 8% 7% 7% Nominal Constant Credit Credit 38% 38% (2%) Debit 62% (4%) Total Payment Processed Transaction Count (in millions) Credit 16,686 16,487 Debit 34,009 29,222 Total 50,695 45,709 34,941 Note: Refer to Operational P
Slide 9: Total Cards
Total Cards (USD in millions) Q1 FY2020 2019 2020 3,478 3,353 2,235 2,336 1,118 1,142 Total Visa Inc. Credit Debit YoY Change 4% 2% 5% Note: Refer to Operational Performance Data footnote for further information on these metrics. 8 Fiscal Second Quarter 2020 Financial Results ©2020 Visa. All rights
Slide 10: Revenue Growth
Revenue Growth Reported Q2 FY2020 Adjusted 20% 15% 11% 9% 8% 7% 7% 2% Service Data Processing International Other Gross Client Net Revenues Revenues Transaction Revenues Revenues Incentives Revenues Revenues Reported Nominal USD $2,623 $2,711 $1,833 $392 $7,559 $1,705 $5,854 (in millions) Client Inc
Slide 11: Operating Expense Growth
Operating Expense Growth Reported Non-GAAP Q2 FY2020 Adjusted 20% 13% 5% 5% 7% 6% 2% 2% 2% 4% 3% 4% 2% (3%) (3%) (67%) (67%) Network & Total Personnel Marketing Professional Depreciation & General & Litigation Processing Operating Fees Amortization Administrative Provision Expenses Reported Nominal
Slide 12: Other Financial Results and Highlights
Other Financial Results and Highlights • COVID-19 impacted both card present and card not present cross-border travel related spending, initially in Asia during February, and then globally and more significantly in March as the outbreak spread to the rest of the world. As countries imposed social di
Slide 13: Operational Performance Data Footnote
Operational Performance Data Footnote Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the earnings release to provide more recent operating data. Service revenues continue to be recognized based on payments volume in the prior q
Slide 14: Free Cash Flow
Free Cash Flow (USD in millions) The Company had cash, cash equivalents and investment securities of $13.2 billion as of March 31, 2020. Calculation of Free Cash Flow Q2 FY2020 QTD Q2 FY2020 YTD Net cash provided by operating activities $1,467 $5,342 Less: capital expenditures (216) (407) Free Cash
Slide 15: 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 CO