01—Abstract
Summary
Summary of the 8-K filed November 13, 2024. Cited figures are marked; the original filing is the authoritative source.
Mastercard Inc. (MA) has filed an 8-K report on November 13, 2024, disclosing its performance objectives for the 2025-2027 period.
The company aims for a net revenue compound annual growth rate (CAGR) in the high-double-digits, with a specific focus on achieving a net revenue CAGR in the high teens for its value-added services and solutions. This forward-looking guidance is based on a 2024 baseline and is presented on a currency-neutral basis, including the expected impact of acquisitions announced up to October 31, 2024, such as the planned acquisition of Recorded Future. In addition to revenue growth, Mastercard has set an annual operating margin target of a minimum of 55%a.
The company also projects an earnings per share (EPS) CAGR in the mid-teens for the 2025-2027 period. These objectives are subject to certain assumptions, including a 2025-2027 tax rate of approximately 21%b and exclude the impact of potential future tax reforms.
The EPS objective is also adjusted to exclude gains/losses on equity investments and Special Items. Investors should note that these figures incorporate anticipated benefits from strategic acquisitions, underscoring the company's growth strategy through both organic expansion and inorganic additions.
02—Key points
Key Highlights
- Mastercard has established performance objectives for 2025-2027, aiming for a net revenue CAGR in the high-double-digits.
- A key growth driver is targeted at value-added services and solutions, with an objective of a net revenue CAGR in the high teens for this segment.
- The company is projecting an annual operating margin of at least 55% over the 2025-2027 period.
- Earnings per share (EPS) are expected to see a CAGR in the mid-teens during the 2025-2027 timeframe.
- Growth projections are on a currency-neutral basis and incorporate the impact of acquisitions announced up to October 31, 2024, including Recorded Future.
- The stated EPS CAGR is an adjusted non-GAAP measure, excluding specific items like equity investment gains/losses and Special Items.
03—Questions
Frequently Asked Questions
What are Mastercard's key financial targets for 2025-2027?
Mastercard is targeting a net revenue compound annual growth rate (CAGR) in the high-double-digits, a minimum annual operating margin of 55%, and an earnings per share (EPS) CAGR in the mid-teens.
What is the expected growth rate for Mastercard's value-added services and solutions?
The company specifically aims for a net revenue CAGR in the high teens for its value-added services and solutions segment.
Do these targets include the impact of acquisitions?
Yes, the growth rates are on a currency-neutral basis and include the estimated impact of acquisitions announced up to October 31, 2024, such as the planned acquisition of Recorded Future. An estimated 0.5 percentage point benefit from these acquisitions is factored into the net revenue CAGR.
Are the EPS targets based on GAAP or non-GAAP measures?
The EPS CAGR target is adjusted to exclude the impact of gains and losses on equity investments, Special Items (which include litigation judgments, settlements, and certain one-time items), and their related tax impacts. A reconciliation to the most directly comparable GAAP equivalent is expected to be provided.
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