Visa : Q2 2022 Financial Results

Visa Inc. Reports Fiscal Second Quarter 2022 Results

San Francisco, CA, April 26, 2022 - Visa Inc. (NYSE: V)

• • GAAP net income of $3.6B or $1.70 per share and non-GAAP net income of $3.8B or $1.79 per share

• • Net revenues of $7.2B, an increase of 25%

• • Payments volume, cross-border volume and processed transaction growth remained robust

• • Returned $3.7B of capital to shareholders in the form of share repurchases and dividends

Income Statement Summary

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

Net Revenues

Q2 2022
USD	% Change

$7.2

25%

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

GAAP Net Income

$3.6

GAAP Earnings Per Share

$1.70

21% 23%

Non-GAAP Net Income(1)

$3.8

Non-GAAP Earnings Per Share(1)

$1.79

27% 30%

(1) Refer to the accompanying financial tables for further details and a reconciliation of the GAAP to non-GAAP measures presented.

Key Business Drivers

YoY increase / (decrease), volume in constant dollars

Q2 2022

Payments Volume

Cross-Border Volume Excluding Intra-Europe(2)

Cross-Border Volume Total

Processed Transactions

17% 47% 38% 19%

"We had a very strong quarter amidst the invasion of Ukraine and our decision to suspend operations in Russia, with GAAP EPS up 23% and non-GAAP EPS up 30%. The Omicron variant impacts were short lived and the global economic recovery that began in the middle of last year continued. We had solid growth in most countries around the globe and across all elements of our business, with revenue growth of over 20% in consumer payments, new flows and value added services. While the geopolitical environment remains uncertain, we expect continued growth driven by a robust travel recovery and through the enablement of traditional and newer ways to pay globally."

(2) Cross-border volume excluding transactions within Europe.

Fiscal Second Quarter 2022 - Financial Highlights

GAAP net income in the fiscal second quarter was $3.6 billion or $1.70 per share, an increase of 21% and 23%, respectively, over prior year's results. Current year's results included $127 million of net losses from equity investments, $40 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs, and $60 million from the Russia-Ukraine charges. Prior year's results included $152 million pertaining to a special item for additional indirect taxes, $156 million of net gains from equity investments, and $18 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $3.8 billion or $1.79 per share, increases of 27% and 30%, respectively, over prior year's results (refer to the accompanying financial tables for further details and a reconciliation of the GAAP to non-GAAP measures presented). GAAP earnings per share growth was approximately 23% on a constant-dollar basis, which excludes the impact of foreign currency fluctuations against the U.S. dollar. Non-GAAP earnings per share growth was approximately 30% 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 $7.2 billion, an increase of 25%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenues increased approximately 27% on a constant-dollar basis.

Payments volume for the three months ended December 31, 2021, on which fiscal second quarter service revenues are recognized, increased 20% over the prior year on a constant-dollar basis.

Payments volume for the three months ended March 31, 2022, increased 17% over the prior year on a constant-dollar basis.

Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, increased 47% on a constant-dollar basis for the three months ended March 31, 2022. Total cross-border volume on a constant-dollar basis increased 38% in the quarter.

Total processed transactions, which represent transactions processed by Visa, for the three months ended March 31, 2022, were 44.8 billion, a 19% increase over the prior year.

Fiscal second quarter service revenues were $3.5 billion, an increase of 24% 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 rose 16% over the prior year to $3.5 billion. International transaction revenues grew 48% over the prior year to $2.2 billion. Other revenues of $474 million rose 21% over the prior year. Client incentives, a contra-revenue item, were $2.5 billion and represented 25.8% of gross revenues.

GAAP operating expenses were $2.4 billion for the fiscal second quarter, an 11% increase over the prior year's results, primarily driven by increases in personnel and marketing expenses. GAAP operating expenses included the Russia-Ukraine charges in the current year, the amortization of acquired intangible assets and non-recurring acquisition-related costs in the current and prior year and the special item related to the additional indirect taxes for the prior year. Excluding these operating expense items, non-GAAP operating expenses increased 16% over the prior year, primarily driven by increases in marketing, personnel and general and administrative expenses.

GAAP non-operating expense was $260 million for the fiscal second quarter, including $127 million of net equity investment losses. Excluding this item, non-GAAP non-operating expense was $133 million.

GAAP effective income tax rate was 19.7% for the quarter ended March 31, 2022, including the tax impacts from the non-GAAP items. Excluding these items, the non-GAAP effective income tax rate was 19.6% for the quarter ended March 31, 2022.

Cash, cash equivalents and investment securities were $15.8 billion at March 31, 2022.

The weighted-average number of diluted shares of class A common stock outstanding was 2.14 billion for the quarter ended March 31, 2022.

Other Notable Items

On March 10, 2022, Visa acquired Tink - an open banking platform that enables financial institutions, fintechs and merchants to build financial products and services and move money. Through a single API, Tink enables its customers to move money, access aggregated financial data, and use smart financial services such as risk insights and account verification. Tink is integrated with more than 3,400 banks and financial institutions, reaching millions of bank customers across Europe.

During the quarter ended March 31, 2022, economic sanctions were imposed on Russia by the U.S., European Union, United Kingdom and other jurisdictions and authorities, impacting Visa and its clients. We announced in March 2022 that we were suspending our operations in Russia. As a result, we are no longer generating revenue from domestic and cross-border activities related to Russia. Since 2015, domestic transactions have been processed by Russia's state-owned payments operator, National Payment Card System. With respect to cross-border activities, all transactions initiated with Visa cards issued by financial institutions outside Russia no longer work within Russia, and all transactions on cards issued in Russia no longer work outside the country. Furthermore, we have deconsolidated our Russian subsidiary, as required under U.S. GAAP. For the first half of fiscal 2022 and full year fiscal 2021, total net revenues from Russia, including revenues driven by domestic as well as cross-border activities, were approximately 4% of our consolidated net revenues. With respect to Russia's invasion of Ukraine, our priority is ensuring the safety and security of our colleagues and their families who are directly impacted. We are in close contact with those in the region and are providing ongoing support to our colleagues.

During the three months ended March 31, 2022, Visa repurchased 13.8 million shares of class A common stock at an average price of $210.19 per share for $2.9 billion. In the six months ended March 31, 2022, Visa repurchased a total of 33.3 million shares of class A common stock, at an average price of $210.11 per share, using $7.0 billion of cash on hand. The Company had $9.7 billion of remaining authorized funds for share repurchase as of March 31, 2022.

On April 22, 2022, the board of directors declared a quarterly cash dividend of $0.375 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, 2022, to all holders of record as of May 13, 2022.

Fiscal Second Quarter 2022 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 athttp://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 and operational performance data, is available on the Visa Investor Relations website athttp://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, our future operations, prospects, developments, strategies, business growth and anticipated timing and benefits of our acquisitions. Forward-looking statements generally are identified by words such as "anticipates," "believes," "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 Russia's invasion of Ukraine and the sanctions and other measures being imposed in response, and the ongoing impacts of the COVID-19 pandemic, including the reopening of borders and resumption of international travel;

• • 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, payments facilitators, ecommerce platforms, fintechs and other third parties;

• • brand or reputational damage;

• • exposure to loss or illiquidity due to settlement guarantees;

• • 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, 2021, 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 (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories each year. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

Contacts

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

Fiscal Second Quarter 2022 - Financial Summary

Q2 FISCAL 2022 INCOME STATEMENT SUMMARY

(in millions, except percentages and per share data)

Three Months Ended March 31, 2022

YoY Change

GAAP

Revenues

Service revenues	$	3,521	24%
Data processing revenues	3,480	16%
International transaction revenues	2,208	48%
Other revenues	474	21%
Client incentives	(2,494)	25%
Net revenues	7,189	25%
Total operating expenses	$	2,387	11%
Non-operating income (expense)	(260)	(644%)
Effective income tax rate	19.7%	3 ppt
Net income	$	3,647	21%
Earnings per share	$	1.70	23%
Non-GAAP (1)
Total operating expenses	$	2,287	16%
Non-operating income (expense)	(133)	23%
Effective income tax rate	19.6%	3 ppt
Net income	$	3,836	27%
Earnings per share	$	1.79	30%

(1) Refer to the accompanying financial tables for further details and a reconciliation of the GAAP to non-GAAP measures presented.

Q2 FISCAL 2022 KEY BUSINESS DRIVERS

YoY Change

Constant	Nominal
Payments volume	17%	14%
Cross-border volume excluding intra-Europe(2)	47%	42%
Cross-border volume total	38%	31%
Processed transactions	19%	19%
(2) Cross-border volume excluding transactions within Europe.