Mastercard(MA) - 2025 Q1 - Quarterly Results

Financial Performance - Mastercard reported net revenue of $7.3 billion for Q1 2025, a 14% increase year-over-year, or 17% on a currency-neutral basis[3]. - The company's net income for Q1 2025 was$ 3.3 billion, with diluted earnings per share (EPS) of $3.59, reflecting a 9% increase in net income and an 11% increase in EPS compared to Q1 2024[5]. - Mastercard's operating income for Q1 2025 was$ 4.1 billion, representing a 15% increase from the previous year, with an operating margin of 57.2%[3]. - Adjusted net income for Q1 2025 was $3.4 billion, with adjusted diluted EPS of$ 3.73, marking a 10% increase in net income and a 13% increase in EPS compared to Q1 2024[4]. - Net income for the three months ended March 31, 2025, was $3,280 million, a 9% increase compared to$ 3,011 million for the same period in 2024[21]. - Diluted earnings per share for Q1 2025 were $3.73, up 13% from$ 3.31 in Q1 2024[27]. - The effective income tax rate for Q1 2025 was 18.6%, up from 15.4% in Q1 2024, influenced by the global minimum tax rules implemented in 2025[9]. - The effective income tax rate for adjusted measures was 19.1% in Q1 2025, up from 15.9% in Q1 2024[27]. Volume and Transactions - Gross dollar volume grew by 9% year-over-year, reaching $2.4 trillion, while cross-border volume increased by 15% on a local currency basis[9]. - For the three months ended March 31, 2025, Mastercard's worldwide gross dollar volume (GDV) reached$ 2,417 billion, reflecting a growth of 5.5% year-over-year[31]. - In the Asia Pacific, Middle East, and Africa (APMEA) region, GDV was $587 billion, with a growth rate of 2.7% compared to the previous year[31]. - The United States contributed$ 1,653 billion to GDV, showing a growth of 4.8% year-over-year[31]. - Purchase volume in Europe increased by 8.8% to $805 billion, with a transaction growth of 10.1%[31]. - Mastercard's debit programs worldwide saw a GDV of$ 1,300 billion, representing a 7.1% growth[31]. - The number of purchase transactions globally reached 48,094 million, with a growth of 9.2%[31]. - In Latin America, GDV decreased by 1.7% to $202 billion, while purchase volume grew by 12.9%[31]. - The cash volume in the United States was$ 359 billion, with a growth of 4.8% year-over-year[31]. - Mastercard's overall purchase volume for the three months ended March 31, 2024, was $2,290 billion, indicating an 8.8% increase from the previous year[31]. Expenses and Shareholder Returns - Total operating expenses increased by 13% year-over-year, primarily due to higher general and administrative and advertising expenses[9]. - Operating expenses reported under GAAP for Q1 2025 were$ 3,101 million, reflecting a 13% increase from $2,744 million in Q1 2024[27]. - Mastercard repurchased 4.7 million shares at a cost of$ 2.5 billion during Q1 2025 and paid $694 million in dividends[10]. Assets and Liabilities - Total assets increased to$ 48,470 million as of March 31, 2025, up from $48,081 million at December 31, 2024, representing a growth of 0.81%[20]. - Total current liabilities decreased to$ 17,828 million in Q1 2025 from $19,220 million in Q4 2024, a reduction of 7.25%[20]. - Long-term debt increased to$ 18,802 million as of March 31, 2025, compared to $17,476 million at December 31, 2024, an increase of 7.57%[20]. Cash Flow - The company reported a net cash provided by operating activities of$ 2,380 million for Q1 2025, compared to $1,672 million for Q1 2024, representing a year-over-year increase of 42.5%[21]. Product and Service Developments - The company launched Mastercard Agent Pay and formed a strategic partnership with Corpay to enhance corporate cross-border payment solutions[2]. - As of March 31, 2025, Mastercard had issued 3.5 billion Mastercard and Maestro-branded cards[9]. - The total number of cards issued worldwide was 3,035 million, reflecting a growth of 5.2%[31]. - Cash and cash equivalents at the end of Q1 2025 were$ 9,982 million, compared to $9,187 million at the end of Q1 2024, indicating a year-over-year increase of 8.65%[21].