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Visa(V) - 2024 Q4 - Annual Results
VVisa(V)2024-10-29 20:06

Financial Performance - GAAP net income for Q4 2024 was 5.3billion,a145.3 billion, a 14% increase YoY, with GAAP EPS at 2.65, up 17% YoY[1][2] - Net revenue for Q4 2024 was 9.6billion,a129.6 billion, a 12% increase YoY, driven by growth in payments volume, cross-border volume, and processed transactions[1][3] - GAAP net income for FY 2024 was 19.7 billion, a 14% increase YoY, with GAAP EPS at 9.73,up179.73, up 17% YoY[11] - Net revenue for FY 2024 was 35.9 billion, a 10% increase YoY, driven by growth in payments volume, cross-border volume, and processed transactions[12] - Visa's Q4 2024 net revenue increased by 12% YoY to 9.617billion,withfull−yearnetrevenuereaching9.617 billion, with full-year net revenue reaching 35.926 billion, a 10% YoY increase[30] - Visa's Q4 2024 net income increased by 14% YoY to 5.318billion,withfull−yearnetincomeup145.318 billion, with full-year net income up 14% YoY to 19.743 billion[30] - Earnings per share for Q4 2024 grew by 17% YoY to 2.65,withfull−yearearningspershareup172.65, with full-year earnings per share up 17% YoY to 9.73[30] - Net revenue for the three months ended September 30, 2024, was 9.617billion,a11.79.617 billion, a 11.7% increase from 8.609 billion in the same period in 2023[35] - Net income for the three months ended September 30, 2024, was 5.318billion,a13.65.318 billion, a 13.6% increase from 4.681 billion in the same period in 2023[35] - Operating income for the three months ended September 30, 2024, was 6.349billion,a14.46.349 billion, a 14.4% increase from 5.550 billion in the same period in 2023[35] - Visa's net income for the fiscal 2024 quarter ended September 30 was 5,318million,comparedto5,318 million, compared to 4,681 million in the same quarter of fiscal 2023[37] Revenue Breakdown - Service revenue for Q4 2024 grew by 8% YoY to 4.199billion,whilefull−yearservicerevenueincreasedby94.199 billion, while full-year service revenue increased by 9% YoY to 16.114 billion[30] - Data processing revenue for Q4 2024 rose by 8% YoY to 4.610billion,withfull−yeardataprocessingrevenueup114.610 billion, with full-year data processing revenue up 11% YoY to 17.714 billion[30] - International transaction revenue for Q4 2024 increased by 9% YoY to 3.468billion,withfull−yearinternationaltransactionrevenueup93.468 billion, with full-year international transaction revenue up 9% YoY to 12.665 billion[30] - Other revenue for Q4 2024 surged by 30% YoY to 969million,withfull−yearotherrevenueup29969 million, with full-year other revenue up 29% YoY to 3.197 billion[30] Transaction and Volume Metrics - Payments volume increased 8% YoY in Q4 2024, with cross-border volume excluding intra-Europe up 13% YoY[1][4] - Total processed transactions in Q4 2024 were 61.5 billion, a 10% increase YoY[5] - Total processed transactions for FY 2024 were 233.8 billion, a 10% increase YoY[13] - Payments volume for Q4 2024 increased by 8% YoY, with full-year payments volume up 8% YoY[31] - Cross-border volume excluding intra-Europe for Q4 2024 grew by 13% YoY, with full-year cross-border volume excluding intra-Europe up 15% YoY[31] - Processed transactions for Q4 2024 increased by 10% YoY, with full-year processed transactions up 10% YoY[31] Operating Expenses - GAAP operating expenses for Q4 2024 were 3.3billion,a73.3 billion, a 7% increase YoY, primarily due to higher marketing and personnel expenses[7] - Total operating expenses for the three months ended September 30, 2024, were 3.268 billion, a 6.8% increase from 3.059billioninthesameperiodin2023[35]−Totaloperatingexpensesforthefiscal2024quarterendedSeptember30were3.059 billion in the same period in 2023[35] - Total operating expenses for the fiscal 2024 quarter ended September 30 were 3,268 million, up from 3,059millioninthesamequarteroffiscal2023[37]−Operatingexpensesforthereportedperiodwere3,059 million in the same quarter of fiscal 2023[37] - Operating expenses for the reported period were 3,059 million, with non-GAAP operating expenses at 2,883million[47]−OperatingexpensesforthetwelvemonthsendedSeptember30,2023,were2,883 million[47] - Operating expenses for the twelve months ended September 30, 2023, were 11,653 million, with non-GAAP operating expenses at 10,481million[49]ShareRepurchasesandDividends−Visarepurchased22millionsharesofclassAcommonstockinQ42024for10,481 million[49] Share Repurchases and Dividends - Visa repurchased 22 million shares of class A common stock in Q4 2024 for 5.8 billion, with a total of 62 million shares repurchased in FY 2024 for 16.7billion[22]−RepurchasesofClassAcommonstockforthetwelvemonthsendedSeptember30,2024,were16.7 billion[22] - Repurchases of Class A common stock for the twelve months ended September 30, 2024, were 16.713 billion, a 38.1% increase from 12.101billioninthesameperiodin2023[36]−DividendspaidforthetwelvemonthsendedSeptember30,2024,were12.101 billion in the same period in 2023[36] - Dividends paid for the twelve months ended September 30, 2024, were 4.217 billion, a 12.4% increase from 3.751billioninthesameperiodin2023[36]CashFlowandCapitalExpenditures−NetcashprovidedbyoperatingactivitiesforthetwelvemonthsendedSeptember30,2024,was3.751 billion in the same period in 2023[36] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the twelve months ended September 30, 2024, was 19.950 billion, a 3.9% decrease from 20.755billioninthesameperiodin2023[36]−Cash,cashequivalents,restrictedcash,andrestrictedcashequivalentsasoftheendoftheperiodforthetwelvemonthsendedSeptember30,2024,were20.755 billion in the same period in 2023[36] - Cash, cash equivalents, restricted cash, and restricted cash equivalents as of the end of the period for the twelve months ended September 30, 2024, were 19.763 billion, a 10.1% decrease from 21.990billioninthesameperiodin2023[36]−Purchasesofproperty,equipment,andtechnologyforthetwelvemonthsendedSeptember30,2024,were21.990 billion in the same period in 2023[36] - Purchases of property, equipment, and technology for the twelve months ended September 30, 2024, were 1.257 billion, an 18.7% increase from 1.059billioninthesameperiodin2023[36]−Acquisitions,netofcashandrestrictedcashacquiredforthetwelvemonthsendedSeptember30,2024,were1.059 billion in the same period in 2023[36] - Acquisitions, net of cash and restricted cash acquired for the twelve months ended September 30, 2024, were 915 million, compared to 0inthesameperiodin2023[36]Non−GAAPFinancialMetrics−Visa′snon−GAAPnetincomeforthethreemonthsendedSeptember30,2024was0 in the same period in 2023[36] Non-GAAP Financial Metrics - Visa's non-GAAP net income for the three months ended September 30, 2024 was 5,425 million, compared to 5,318milliononaGAAPbasis[46]−Visa′snon−GAAPdilutedearningspershareforthethreemonthsendedSeptember30,2024was5,318 million on a GAAP basis[46] - Visa's non-GAAP diluted earnings per share for the three months ended September 30, 2024 was 2.71, compared to 2.65onaGAAPbasis[46]−Visa′snon−GAAPoperatingexpensesforthethreemonthsendedSeptember30,2024were2.65 on a GAAP basis[46] - Visa's non-GAAP operating expenses for the three months ended September 30, 2024 were 3,192 million, compared to 3,268milliononaGAAPbasis[46]−Visa′snon−GAAPnetincomeforthetwelvemonthsendedSeptember30,2024was3,268 million on a GAAP basis[46] - Visa's non-GAAP net income for the twelve months ended September 30, 2024 was 20,389 million, compared to 19,743milliononaGAAPbasis[46]−Visa′snon−GAAPdilutedearningspershareforthetwelvemonthsendedSeptember30,2024was19,743 million on a GAAP basis[46] - Visa's non-GAAP diluted earnings per share for the twelve months ended September 30, 2024 was 10.05, compared to 9.73onaGAAPbasis[46]−Visa′snon−GAAPoperatingexpensesforthetwelvemonthsendedSeptember30,2024were9.73 on a GAAP basis[46] - Visa's non-GAAP operating expenses for the twelve months ended September 30, 2024 were 11,609 million, compared to 12,331milliononaGAAPbasis[46]−Visa′snon−GAAPeffectiveincometaxrateforthetwelvemonthsendedSeptember30,2024was17.612,331 million on a GAAP basis[46] - Visa's non-GAAP effective income tax rate for the twelve months ended September 30, 2024 was 17.6%, compared to 17.4% on a GAAP basis[46] - Visa's non-GAAP nonoperating income for the twelve months ended September 30, 2024 was 415 million, compared to 321milliononaGAAPbasis[46]−Netincomeasreportedwas321 million on a GAAP basis[46] - Net income as reported was 4,681 million, with non-GAAP net income at 4,816million[47]−Dilutedearningspershareasreportedwere4,816 million[47] - Diluted earnings per share as reported were 2.27, with non-GAAP diluted earnings per share at 2.33[47]−Effectiveincometaxrateasreportedwas16.92.33[47] - Effective income tax rate as reported was 16.9%, with non-GAAP effective income tax rate at 17.0%[47] - Net income for the twelve months ended September 30, 2023, was 17,273 million, with non-GAAP net income at 18,280million[49]−DilutedearningspershareforthetwelvemonthsendedSeptember30,2023,were18,280 million[49] - Diluted earnings per share for the twelve months ended September 30, 2023, were 8.28, with non-GAAP diluted earnings per share at $8.77[49] - Effective income tax rate for the twelve months ended September 30, 2023, was 17.9%, with non-GAAP effective income tax rate at 18.1%[49] Acquisitions - Visa announced the acquisition of Featurespace, a developer of real-time AI payments protection technology, expected to close in FY 2025[21]