Visa : Earnings Release ( PDF 728 KB )

Visa Inc. Reports Fiscal Second Quarter 2021 Results

San Francisco, CA, April 27, 2021 - Visa Inc. (NYSE: V)

• GAAP and non-GAAP net income of $3.0B or $1.38 per share
• Net revenues of $5.7B, a decrease of 2% or approximately flat if service revenues were recognized on current quarter's payments volume
• Our key business driver growth rates are starting to ramp up, reflecting the depressed levels in 2020 due to COVID-19 and making year-over-year comparisons difficult to interpret
• Compared to fiscal second quarter 2019 levels, payments volume and processed transactions were both 16 percentage points higher, while cross-border volumes excluding intra-Europe remained 25 percentage points lower. All business drivers were consistent or improved from the fiscal first quarter's results indexed to 2019
• Returned $2.4B of capital to shareholders in the form of share repurchases and dividends

		Q2 2021
In billions, except percentages and per share data. % change is	USD		% Change
calculated over the comparable prior-year period.
Net Revenues	$5.7	(2%)
GAAP Net Income	$3.0	(2%)
GAAP Earnings Per Share	$1.38	0%
Non-GAAP Net Income(1)	$3.0	(2%)
Non-GAAP Earnings Per Share(1)	$1.38	(1%)

1. Non-GAAPresults exclude a special item, equity investment gains and losses, amortization of acquired intangible assets, non-recurringacquisition-related costs and the related
   tax impacts.

Q2 2021 Key Business Drivers

(YoY increase / (decrease), volume in constant dollars)

	Q2 2021
Payments Volume	11%
Cross-Border Volume Excluding Intra-Europe(1)	(21%)
Cross-Border Volume Total	(11%)
Processed Transactions	8%

1. Cross-bordervolume excluding transactions within Europe.

Alfred F. Kelly, Jr., Chairman and Chief Executive Officer, Visa Inc., commented on the results:

"The COVID-19 pandemic certainly has turned the world upside down in the last year, but we believe we are starting to see the beginning of the end and the recovery is well underway in a number of key markets around the world. This quarter, we saw a return to positive growth for credit and card present transactions and debit and eCommerce growth stayed at very healthy levels. Cross-border travel is the slowest sector to return, but there are some green shoots that offer real indication of people looking to see the world. As economies are recovering, Visa is very well-positioned and continues to invest and innovate to drive big gains in our three strategic growth areas: consumer payments, new flows and value added services."

Fiscal Second Quarter 2021 - Financial Highlights

GAAP net income in the fiscal second quarter was $3.0 billion or $1.38 per share, a decrease of 2% and flat, respectively, over prior year's results. Current year's results included $152 million pertaining to a special item for additional indirect taxes related to prior periods, $156 million of net gains from equity investments and $18 million regarding the amortization of acquired intangible assets and non-recurringacquisition-related costs. Prior year's results included $2 million of net losses from equity investments and $16 million corresponding to the amortization of acquired intangible assets and non-recurringacquisition-related costs. Excluding these items and the related tax impacts, non-GAAP net income for the quarter was $3.0 billion or $1.38 per share, decreases of 2% and 1%, respectively, over prior year's results (refer to the accompanying financial tables for further details and a reconciliation of the non-GAAP measures presented). Non-GAAP earnings per share was approximately flat on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count.

Net revenues in the fiscal second quarter were $5.7 billion, a decrease of 2%, primarily driven by the year-over-year decline in cross-border volume, mostly offset by growth in payments volume and processed transactions. Net revenues decreased approximately 3% on a constant-dollar basis. Had we recognized service revenues on current quarter payments volume and other revenue components remained unchanged, net revenues would have been approximately flat.

Payments volume for the three months ended December 31, 2020, on which fiscal second quarter service revenue is recognized, increased 5% over the prior year on a constant-dollar basis.

Payments volume for the three months ended March 31, 2021, increased 11% over the prior year on a constant-dollar basis.

Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, declined 21% on a constant-dollar basis for the three months ended March 31, 2021. Total cross-border volume on a constant-dollar basis declined 11% in the quarter.

Total processed transactions, which represent transactions processed by Visa, for the three months ended March 31, 2021, were 37.6 billion, an 8% increase over the prior year, led by domestic transactions.

Fiscal second quarter service revenues were $2.8 billion, an increase of 8% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues grew 11% over the prior year to $3.0 billion. International transaction revenues declined 19% over the prior year to $1.5 billion. Other revenues of $392 million were flat over the prior year. Client incentives, a contra-revenue item, were $2.0 billion and represented 25.8% of gross revenues.

GAAP operating expenses were $2.1 billion for the fiscal second quarter, an 11% increase over the prior year's results, including the special item related to the additional indirect taxes in the current year and the amortization of acquired intangible assets and non- recurring acquisition-related costs in the current and prior year. Excluding these operating expense items, non-GAAP operating expenses increased 3% over the prior year, primarily driven by an increase in personnel expenses partially offset by decreases in general and administrative, marketing and professional fees.

GAAP non-operating income was $47 million for the fiscal second quarter, including $156 million of net equity investment gains. Excluding this item, non-GAAPnon-operating expense was $109 million.

GAAP effective income tax rate was 16.6% for the quarter ended March 31, 2021, including the tax impacts of the special item, net equity investment gains, amortization of acquired intangible assets and non-recurringacquisition-related costs. Excluding these items, the non-GAAP effective income tax rate was 16.8% for the quarter ended March 31, 2021. GAAP and non-GAAP tax rates benefited from completing certain tax audits.

Cash, cash equivalents and investment securities were $18.7 billion at March 31, 2021.

The weighted-average number of diluted shares of class A common stock outstanding was 2.19 billion for the quarter ended March 31, 2021.

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Other Notable Items

During the three months ended March 31, 2021, Visa repurchased 8.3 million shares of class A common stock at an average price of $208.51 per share for $1.7 billion. In the six months ended March 31, 2021, Visa repurchased a total of 17.0 million shares of class A common stock, at an average price of $205.33 per share, using $3.5 billion of cash on hand. The Company had $9.9 billion of remaining authorized funds for share repurchase as of March 31, 2021.

On April 23, 2021, the board of directors declared a quarterly cash dividend of $0.32 per share of class A common stock (determined in the case of class B and C common stock and series A, B and C convertible participating preferred stock on an as- converted basis) payable on June 1, 2021, to all holders of record as of May 14, 2021.

Financial Outlook for Fiscal Full-Year 2021

Given the continuing impact of COVID-19 and the significant uncertainty in the global economy, it is difficult to reasonably estimate the Company's annual results; therefore we are not providing a fiscal full-year 2021 outlook at this time.

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Fiscal Second Quarter 2021 Earnings Results Call Details

Visa's executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at

http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.'s Investor Relations website at

http://investor.visa.com.

Forward-Looking Statements

This press release 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 COVID-19, our future operations, prospects, developments, strategies and business growth. Forward-looking statements generally are identified by words such as "anticipates," "estimates," "expects," "intends," "may," "projects," "outlook," "could," "should," "will," "continue" and other similar expressions. All statements other than statements of historical fact could be forward- looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict.

Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not limited to:

• impact of global economic, political, market, health and social events or conditions, including the impact of COVID-19;
• increased oversight and regulation of the global payments industry and our business;
• impact of government-imposed obligations and/or restrictions on international payment systems;
• outcome of tax, litigation and governmental investigation matters;
• increasingly intense competition in the payments industry, including competition for our clients and merchants;
• proliferation and continuous evolution of new technologies and business models;
• our ability to maintain relationships with our clients, acquirers, processors, merchants and other third parties;
• brand or reputational damage;
• exposure to loss or illiquidity due to settlement guarantees;
• the impact of the United Kingdom's withdrawal from the European Union;
• a disruption, failure, breach or cyber-attack of our networks or systems;
• risks, uncertainties and the failure to achieve the anticipated benefits with respect to our acquisitions and other strategic investments; and
• other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2020, and our subsequent reports on Forms 10-Q and 8-K.

Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.

About Visa Inc.

Visa Inc. (NYSE: V) is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. Our relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/about-visa.html, usa.visa.com/visa- everywhere/blog.html and @VisaNews.

	Contacts	Investor Relations	Media Relations
	Mike Milotich or Jennifer Como, 650-432-7644	Andy Gerlt, 650-432-2990
		[e-mail]	[e-mail]

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Fiscal Second Quarter 2021 - Financial Summary

Q2 FISCAL 2021 INCOME STATEMENT SUMMARY

(in millions, except percentages and per share data)

Re ve nue s

Three Months Ended	YoY Change
March 31, 2021
GAAP	Non-GAAP	GAAP	Non-GAAP

Service revenues	$	2,845	$	2,845	8%	8%
Data processing revenues		2,996		2,996	11%	11%
International transaction revenues		1,488		1,488	(19%)	(19%)
Other revenues		392		392	0%	0%
Client incentives		(1,992)		(1,992)	17%	17%
Net revenues		5,729		5,729	(2%)	(2%)
Operating Expenses
Personnel		1,114		1,112	18%	19%
Marketing		206		206	(12%)	(12%)
Network and processing		179		179	(2%)	(1%)
Professional fees		82		80	(21%)	(21%)
Depreciation and amortization		201		187	5%	4%
General and administrative		363		211	35%	(22%)
Litigation provision		3		3	(66%)	(66%)
Total operating expenses		2,148		1,978	11%	3%
Operating income		3,581		3,751	(9%)	(5%)
Non-operating income/(expense)		47		(109)	(150%)	15%
Effective tax rate		16.6%		16.8%	(3 ppt)	(3 ppt)
Net income	$	3,026	$	3,031	(2%)	(2%)
Earnings per share	$	1 .38	$	1 .38	0%	(1%)
Q2 FISCAL 2021 KEY BUSINESS DRIVERS
		YoY Change
		Constant		Nominal
Payments volume		11%		14%
Cross-border volume excluding intra-Europe(1)		(21%)		(19%)
Cross-border volume total		(11%)		(6%)
Processed transactions		8%		8%

1. Cross-bordervolume excluding transactions within Europe.

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