Visa : Q2 2021 Earnings Presentation

April 27, 2021 at 04:13 pm EDT

VisaEdit MasterInc. text styles

FisClickalToSecondEdit MasterQuarterTitle2021 Financial Results

AprilEdit Master27, 2021text styles

Fiscal Second Quarter 2021 Results

	Net	Client Incentives			Diluted Class A
YoY Increase / (Decrease)	as a % of	Operating Expense	Effective Tax Rate	Common Stock
Revenues	Gross Revenue	Earnings Per Share
GAAP Nominal-Dollar Basis	(2%)*	25.8%	11%	16.6%	0%
Non-GAAPNominal-Dollar Basis(1)	3%	16.8%	(1%)

Foreign Currency Impact	(~0.5%)		~3%		~0.5%
Acquisition Impact	~0%	0%	~0%	0%	~0%
Adjusted Constant-Dollar Basis(2)	(3%)	25.8%	6%	16.8%	0%

Had we recognized service revenues on current quarter payments volume and other revenue components remained unchanged, net revenues would have been approximately flat.

Non-GAAPresults exclude a special item, equity investment gains and losses, amortization of acquired intangible assets for acquisitions in fiscal year 2019 and subsequent periods, and non-recurringacquisition-related costs.
Adjusted financial results are on a constant-dollar basis and exclude the impact of the non-GAAP items and operating revenues and expenses of the acquired entities that were not in the entire quarter of the previous year and the incremental interest expense or forgone interest income as a result of funding the acquisition through debt or cash, respectively.

Note: Refer to Non-GAAP and Adjusted Constant-Dollar Results Footnote for further information.

Fiscal Second Quarter 2021 Financial Results

Non-GAAP and Adjusted Constant-Dollar Results Footnote

We consider 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 our continuing operations, as they may be non-recurring or have no cash impact, and may distort our longer-term operating trends. We believe these measures to be useful to enhance the comparability of our results from period to period and with our competitors, as well as to show ongoing results from operations distinct from items that are infrequent or not associated with the Company´s core operations. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information.

We exclude the following to arrive at our Adjusted Constant-Dollar Financial Results:

◦ non-GAAP impacts of (refer to the financial tables in the earnings release for further details): ▪ special item(s);

▪ equity investment gains and losses;

▪ amortization of acquired intangible assets for acquisitions in fiscal year 2019 and subsequent periods; ▪ non-recurringacquisition-related costs;

◦ impact of foreign currency to provide currency-neutral growth rates which management believes are a better reflection of the underlying performance of our business; and

◦ impact of acquisitions, which include operating revenues and expenses of the acquired entities that were not in the entire quarter of the previous year and the incremental interest expense or forgone interest income as a result of funding the acquisition through debt or cash, respectively, which management believes enhances the comparability of our results. These amounts will be adjusted until we lap the quarter that the entity was acquired in, at which time there will be comparable results within each reported period.

Fiscal Second Quarter 2021 Financial Results

Fiscal Second Quarter 2021 Results

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


In billions, except percentages and per share data. % change is calculated over the comparable prior-year period.		Q2 2021
USD		% Change

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%)

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%

Cross-bordervolume excluding transactions within Europe.

Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Monthly Growth

U.S. Payments Volume

110%				Total			Credit		Debit	110%		Total	Card Present		Card Not Present		Card Not Present, Excluding Travel




90%											90%


70%											70%


50%											50%


30%											30%


10%											10%


(10%)											(10%)


(30%)											(30%)


(50%)											(50%)

	Jan Feb* Mar Apr May Jun Jul	Aug Sep Oct	Nov Dec Jan Feb* Mar Apr	Jan Feb* Mar	Apr May Jun Jul	Aug Sep Oct	Nov Dec Jan Feb* Mar Apr

								1-21								1-21
										2021				2020				2021
	2020
* February growth rates for total U.S. payments volume would have been 10% and 9% in 2020 and 2021, respectively, if the impact of February 29, 2020 was excluded.
Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics.
4	Fiscal Second Quarter 2021 Financial Results														©2021 Visa. All rights reserved.

Operational Performance Metrics Monthly Index vs. FY 2019

Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100

U.S. Payments Volume

Total	Credit	Debit	Total	Card Present	Card Not Present	Card Not Present, Excluding Travel
160			160
150			150
140			140
130			130
120			120
110			110
100			100
90			90

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Oct

Nov

Dec

Jan

Feb

Mar

Apr

1-21

2020

2021

2020

2021

Note: Refer to Operational Performance Data footnote for further information on these metrics.

Fiscal Second Quarter 2021 Financial Results

55%

45%

35%

25%

15%

(5%)

(15%)

(25%)

Operational Performance Metrics Monthly Growth

Processed Transactions

Jan Feb* Mar Apr May Jun Jul	Aug Sep Oct Nov Dec Jan Feb* Mar Apr
	1-21
2020		2021

* February growth rates would have been 12% and 2% in 2020 and 2021, respectively, if the impact of February 29, 2020 was excluded.

Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics.

6 Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Monthly Index vs. FY 2019

Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100

Processed Transactions

118

116

114

112

110

108

106

104

102

100

Oct	Nov	Dec	Jan	Feb	Mar	Apr
						1-21
	2020				2021

Note: Refer to Operational Performance Data footnote for further information on these metrics.

Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Monthly Growth

			Cross-Border Volume				Cross-Border Volume Excluding Intra-Europe
				(Constant Dollar)						(Constant Dollar)
				Excluding Intra-Europe		Total						Total		Card Present + Card Not Present Travel

130%						130%		Card Not Present			Card Not Present, Excluding Travel


110%								110%


90%								90%


70%								70%


50%								50%


30%								30%


10%								10%


(10%)								(10%)


(30%)								(30%)


(50%)								(50%)


(70%)								(70%)


(90%)								(90%)

							*		*
*			*	Apr
					Jan Feb Mar Apr May Jun Jul	Aug Sep Oct Nov Dec Jan Feb Mar Apr
		Jan Feb Mar Apr May Jun Jul Aug Sep	Oct Nov Dec Jan Feb Mar
							1-21							1-21
	2020			2021						2020			2021

February growth rates for cross-border volume excluding intra-Europe and total cross-border volume would have been 3% and 6% in 2020, respectively, and (26%) and (16%) in 2021, respectively, if the impact of February 29, 2020 was excluded.

Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics.

Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Monthly Index vs. FY 2019

Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100

	Cross-Border Volume		Cross-Border Volume Excluding Intra-Europe
		(Constant Dollar)				(Constant Dollar)
		Excluding Intra-Europe		Total		Total		Card Present + Card Not Present Travel

150			150		Card Not Present		Card Not Present, Excluding Travel



130					130


110					110


90					90


70					70


50					50


30					30

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Oct

Nov

Dec

Jan

Feb

Mar

Apr

1-21

2020

2021

2020

2021

Note: Refer to Operational Performance Data footnote for further information on these metrics.

Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Weekly Growth

U.S. Payments Volume

Total

Credit

Debit

Total

Card Present

Card Not Present

Card Not Present, Excluding Travel

120%

100%

80%

60%

40%

20%

(20%)

																120%
																100%
																80%
																60%
																40%
																20%
																0%
	January			February				March				April		(20%)	January			February				March				April

6	13	20	27	3	10	17	24	3	10	17	24	31	7	14	21	6	13	20	27	3	10	17	24	3	10	17	24	31	7	14	21
							Week Ended															Week Ended

Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics.

Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Weekly Index vs. FY 2019

Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100

U.S. Payments Volume

	Total	Credit	Debit

180				180

160

140

120

100

100																	80
	January			February					March					April

6	13	20	27	3	10	17	24		3	10	17	24	31	7	14	21
								Week Ended

Note: Refer to Operational Performance Data footnote for further information on these metrics.

11 Fiscal Second Quarter 2021 Financial Results

Total	Card Present	Card Not Present	Card Not Present, Excluding Travel

	January			February				March					April
6	13	20	27	3	10	17	24		3	10	17	24	31	7	14	21
							Week Ended

Operational Performance Metrics Weekly Growth

Processed Transactions

70%

50%

30%

10%

(10%)
		January				February					March					April

6	13	20	27	3	10	17	24	3	10	17	24	31	7	14	21
										Week Ended

Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics.

Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Weekly Index vs. FY 2019

Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100

Processed Transactions

120

116

112

108

104

100
		January			February					March					April

	6	13	20	27	3	10	17	24		3	10	17	24	31		7	14	21
									Week Ended

Note: Refer to Operational Performance Data footnote for further information on these metrics.

Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Weekly Growth

Cross-Border Volume

(Constant Dollar)

150%							Excluding Intra-Europe			Total




130%


110%


90%


70%


50%


30%


10%


(10%)


(30%)


(50%)


(70%)

		January			February					March				April

	6	13	20	27	3	10	17	24		3	10	17	24	31	7	14	21
									Week Ended

Cross-Border Volume Excluding Intra-Europe

(Constant Dollar)

		Total							Card Present + Card Not Present Travel
		Card Not Present						Card Not Present, Excluding Travel
150%
130%
110%
90%
70%
50%
30%
10%
(10%)
(30%)
(50%)
(70%)	January			February		March				April

6	13	20	27	3	10	17	24	3	10	17	24	31	7	14	21
							Week Ended

Note: Results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics.

Fiscal Second Quarter 2021 Financial Results

Operational Performance Metrics Weekly Index vs. FY 2019

Fiscal year 2021 results are indexed to the corresponding period in fiscal year 2019, with a baseline of 100

Cross-Border Volume

(Constant Dollar)

Excluding Intra-Europe		Total

170

150

130

110

30
		January			February				March					April

	6	13	20	27	3	10	17	24	3	10	17	24	31		7	14	21
									Week Ended

Note: Refer to Operational Performance Data footnote for further information on these metrics.

15 Fiscal Second Quarter 2021 Financial Results

170

150

130

110

Cross-Border Volume Excluding Intra-Europe

(Constant Dollar)

		Total		Card Present + Card Not Present Travel

		Card Not Present		Card Not Present, Excluding Travel

	January			February		March					April
6	13	20	27	3	10	17	24	3	10	17	24	31	7	14	21
							Week Ended

Payments Volume Results

Q2 FY2021

Visa Inc.

Credit

Debit

Nominal Constant

26%24%

14%11%

2%0%

Nominal USD (in billions)	$500	$657
U.S.	$1,157
International	$1,266	$643	$623
Total	$2,423	$1,143	$1,280

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 Second Quarter 2021 Financial Results

Payments Volume Results

Q1 FY2021

Visa Inc.

Credit

Debit

Nominal Constant

17%18%

5%5%

		(5%)	(6%)
Nominal USD (in billions)	$535	$605
U.S.	$1,140
International	$1,335	$680	$655
Total	$2,475	$1,216	$1,260

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 Second Quarter 2021 Financial Results

Transactions and Cross-Border Volume Results
Q2 FY2021
	Transactions		Cross-Border
8%	11%	8%
		Constant
		Total	Total
		(excluding
		Nominal	Constant	intra-Europe)(1)
Total	Payments	Processed
		(6%)

Transaction Count (in millions)		(11%)
Credit	17,030	16,875

Debit	37,848	33,776	37,644	(21%)
Total	54,878	50,651
(1) Cross-border volume excluding transactions within Europe.

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 Second Quarter 2021 Financial Results

Total Cards (in millions)

Q1 FY2021

2020

2021

3,448 3,592

2,311 2,436

1,137 1,156

Total Visa Inc.	Credit	Debit
4%	2%	5%

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 Second Quarter 2021 Financial Results

Revenue Results

Q2 FY2021

Reported

Adjusted

17%

11%

0%2%

(2%) (3%)

(19%)

Service	Data Processing	International	Other	Gross	Client	Net
Transaction
Revenues	Revenues	Revenues	Revenues	Revenues	Incentives	Revenues

Reported Nominal USD (in millions)	$1,488	$392	$7,721	$1,992	$5,729
$2,845	$2,996

Client Incentives as a % of

Gross Revenues

25.8%

Note: The chart results are calculated over the comparable prior-year period. Refer to Non-GAAP and Adjusted Constant-Dollar Results Footnote for further information on adjusted results. Percentage changes are calculated based on unrounded numbers.

Fiscal Second Quarter 2021 Financial Results

Operating Expense Results

Q2 FY2021

Reported

Non-GAAP

Adjusted

35%

18%	19%		11%
	5%	4%	6%
	3%

(12%) (12%)

PersonnelMarketing

Reported Nominal USD (in millions)

$1,114$206

(2%) (1%)

(21%)

(22%)

				(66%)	(66%)
Network &	Professional	Depreciation &	General &	Litigation	Total
Operating
Processing	Fees	Amortization	Administrative	Provision	Expenses
$179	$82	$201	$363		$3	$2,148

Note: The chart results are calculated over the comparable prior-year period. Refer to Non-GAAP and Adjusted Constant-Dollar Results Footnote for further information on non-GAAP and adjusted results. Percentage changes are calculated based on unrounded numbers. Refer to the financial tables in the earnings release for further details and a reconciliation of the non-GAAP measures presented.

Fiscal Second Quarter 2021 Financial Results

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 quarter.

Total transactions represent payments and cash transactions as reported by Visa clients on their operating certificates. Processed transactions represent transactions involving cards and other form factors carrying the Visa, Visa Electron, Interlink, V PAY and PLUS cards processed on Visa's networks.

On occasion, reported payments volume, transaction and card information may be updated to reflect revised client submissions or other adjustments. Prior-period updates, other than the change to the payments volume definition, are not material. Figures may not recalculate exactly due to rounding. Percentage changes and totals are calculated based on unrounded numbers. Constant-dollar growth rates exclude the impact of foreign currency fluctuations against the U.S. dollar in measuring performance.

Fiscal Second Quarter 2021 Financial Results

Free Cash Flow

We had cash, cash equivalents and investment securities of $18.7 billion as of March 31, 2021.

(USD in millions)

Calculation of Free Cash Flow	Q2 2021 QTD	Q2 2021 YTD

Net cash provided by operating activities	$3,329	$6,842

Less: capital expenditures	(158)	(318)

Free Cash Flow(1)	$3,171	$6,524

Free Cash Flow is cash provided by operating activities adjusted to reflect capital investments made in the business

Cash Returned to Shareholders	Q2 2021 QTD	Q2 2021 YTD

Share repurchases	$1,731	$3,497

Dividends	$701	$1,404

Note: Management believes that this presentation is useful to measure Visa's generation of cash available to first re-invest in the business, and then return excess cash to shareholders through stock repurchases and cash dividends.

23 Fiscal Second Quarter 2021 Financial Results

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 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.

Fiscal Second Quarter 2021 Financial Results

Attachments

Original document
Permalink

Disclaimer

Visa Inc. published this content on 27 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2021 20:12:10 UTC.

Real-time Estimate Cboe BZX Other stock markets 04:10:25 2024-04-26 pm EDT			5-day change	1st Jan Change
277 ^USD	+0.67%		+1.68%	+5.36%

11:39am	Visa, Inc: Network effect
Apr. 25	Capital One's first-quarter profit jumps on interest income boost	RE

Visa, Inc: Network effect	05:39am
Capital One's first-quarter profit jumps on interest income boost	Apr. 25	RE
Visa Joins AWS Partner Network to Help Simplify Global Digital Payments	Apr. 25	CI
DZ Bank Adjusts Price Target on Visa to $340 From $326	Apr. 25	MT
Argus Raises Visa's Price Target to $310 From $300	Apr. 24	MT
Global markets live: Heineken, AT&T Hasbro, Visa, Boeing...	Apr. 24
Nasdaq outshines Wall St peers on tech boost, earnings glee	Apr. 24	RE
UBS Adjusts Price Target on Visa to $325 From $315, Maintains Buy Rating	Apr. 24	MT
Fubon Adjusts Price Target on Visa to $318 From $317	Apr. 24	MT
The return of bad news is good news	Apr. 24
Macquarie Adjusts Price Target on Visa to $300 From $290	Apr. 24	MT
Oppenheimer Adjusts Visa Price Target to $299 From $297, Maintains Outperform Rating	Apr. 24	MT
RBC Raises Price Target on Visa to $315 From $309, Cites 'Durable Growth,' Keeps Outperform Rating	Apr. 24	MT
Nasdaq, S&P futures advance on tech boost, earnings glee	Apr. 24	RE
Bernstein Adjusts Visa's Price Target to $310 From $304	Apr. 24	MT
Wedbush Lifts Price Target on Visa to $300 From $280, Cites Stronger-Than-Expected Fiscal Q2, Keeps Outperform Rating	Apr. 24	MT
Visa Stock Gains on Fiscal Second-Quarter Beat	Apr. 24	MT
Citigroup Adjusts Visa's Price Target to $321 From $314, Keeps Buy Rating	Apr. 24	MT
S&P, Nasdaq futures advance on tech boost, earnings cheer	Apr. 24	RE
Goldman Sachs Adjusts Visa's Price Target to $335 From $328, Keeps Buy Rating	Apr. 24	MT
Visa: 20% EPS growth in Q2	Apr. 24	CF
Visa Says Continue To See Strong International Travel Volumes - Conference	Apr. 23	RE
Transcript : Visa Inc., Q2 2024 Earnings Call, Apr 23, 2024	Apr. 23
Visa 2Q Revenue Climbs as Payments Volume Grows	Apr. 23	DJ
Visa Fiscal Q2 Non-GAAP EPS, Net Revenue Increase; Declares Dividend	Apr. 23	MT

	1st Jan change	Capi.
VISA, INC.	+5.36%	551B
MASTERCARD, INC.	+8.29%	431B
VENUSTECH GROUP INC.	-27.93%	3.2B
TOPSEC TECHNOLOGIES GROUP INC.	-37.22%	937M
BEIJING VRV SOFTWARE CORPORATION LIMITED	-6.74%	849M
BEIJING CERTIFICATE AUTHORITY CO.,LTD.	-21.96%	718M
NHN KCP CORP.	+10.02%	285M
CLEARSALE S.A.	+103.47%	261M
KGINICIS CO.,LTD	-3.42%	225M
GALAXIAMONEYTREE CO.,LTD	-35.37%	211M

Visa, Inc.

Equities

V

US92826C8394

Internet Services

Visa : Q2 2021 Earnings Presentation

Latest news about Visa, Inc.

Chart Visa, Inc.

Company Profile

Income Statement Evolution

Analysis / Opinion

Ratings for Visa, Inc.

Analysts' Consensus

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Internet Security & Transactions Services