10-KPeriod: FY2024

Mastercard Inc Annual Report, Year Ended Dec 31, 2024

Filed February 12, 2025For Securities:MA

Summary

Mastercard Inc. (MA) reported strong financial performance for the fiscal year ended December 31, 2024, demonstrating robust growth across key metrics. The company's net revenue saw a significant increase of 12% (13% on a currency-neutral basis), driven by expansion in both its payment network and value-added services. This growth reflects the ongoing secular shift from cash to electronic payments and Mastercard's strategic focus on expanding its core payment capabilities while diversifying into new payment flows and services. Financially, Mastercard reported GAAP net income of $12.9 billion, a 15% increase year-over-year, translating to diluted EPS of $13.89, up 17%. On a non-GAAP adjusted basis (excluding equity investment gains/losses and special items), adjusted net income rose 17% to $13.5 billion, with adjusted diluted EPS increasing 19% to $14.60. The company also returned significant capital to stockholders through $11.0 billion in share repurchases and $2.4 billion in dividends. Management highlights investments in technology, data, and AI as enablers of future growth, while acknowledging ongoing risks related to regulation, competition, and cybersecurity.

Financial Highlights

55 data points
Beta

Revenue

$28.17B

Net Income

$12.87B

45.7% Net Margin

EPS (Diluted)

$13.89

Total Assets

$48.08B

Cash & Equivalents

$8.44B

Free Cash Flow

$14.31B

Financial Statements
Beta
Revenue$28.17B
Operating Expenses$12.59B
Operating Income$15.58B
Interest Expense$571.00M
Net Income$12.87B
EPS (Basic)$13.91
EPS (Diluted)$13.89
Shares Outstanding (Basic)925.00M
Shares Outstanding (Diluted)927.00M

Key Highlights

  • 1Net revenue grew 12% (13% currency-neutral) to $28.2 billion, driven by strong performance in payment network and value-added services.
  • 2GAAP Net Income increased 15% to $12.9 billion, with Diluted EPS up 17% to $13.89.
  • 3Adjusted Net Income (non-GAAP) grew 17% to $13.5 billion, and Adjusted Diluted EPS (non-GAAP) increased 19% to $14.60.
  • 4Mastercard returned $13.4 billion to shareholders through $11.0 billion in share repurchases and $2.4 billion in dividends.
  • 5Gross Dollar Volume (GDV) increased 8% on a USD-converted basis and 11% on a local currency basis, indicating continued growth in transaction activity.
  • 6Cross-border volume growth was strong at 11% (17% currency-neutral), highlighting the recovery and expansion of international travel and commerce.
  • 7The company reported a significant provision for litigation of $680 million, primarily related to U.S. and U.K. merchant litigation settlements.

Frequently Asked Questions

Mastercard delivered a strong financial performance in 2024. Net revenue increased by 12% to $28.2 billion, and GAAP Net Income grew by 15% to $12.9 billion, resulting in diluted Earnings Per Share (EPS) of $13.89, a 17% increase from the prior year. Non-GAAP adjusted net income and EPS also showed robust growth of 17% and 19% respectively, indicating healthy underlying operational performance.

Mastercard demonstrated a strong commitment to returning capital to shareholders. The company repurchased approximately $11.0 billion of its common stock during 2024 and paid out $2.4 billion in dividends, totaling $13.4 billion in capital returned.

Mastercard's revenue growth was primarily driven by increases in its payment network services and value-added services and solutions. Specifically, growth in domestic and cross-border dollar volumes, along with an increase in switched transactions, contributed to the payment network's performance. Value-added services, including security, consumer engagement, and data insights, also saw strong growth.

Mastercard reported a significant provision for litigation totaling $680 million in 2024. This was primarily related to settlements and changes in estimates for claims associated with U.S. merchant class action litigation and U.K. merchant litigation. The company also noted ongoing investigations by the U.S. Department of Justice concerning its debit program and by the European Commission regarding network fees.