10-QPeriod: Q2 FY2021

VISA INC. Quarterly Report for Q2 Ended Mar 31, 2021

Filed April 29, 2021For Securities:V

Summary

Visa Inc. reported its financial results for the quarter and six months ended March 31, 2021. For the three months ended March 31, 2021, net revenues were $5.73 billion, a 2% decrease compared to the prior year, primarily impacted by lower international transaction revenues due to the ongoing effects of the COVID-19 pandemic on cross-border travel and spending. Net income for the quarter was $3.03 billion, a slight decrease of 2% year-over-year. Diluted Earnings Per Share (EPS) remained stable at $1.38. For the six months ended March 31, 2021, net revenues decreased by 4% to $11.42 billion, while net income fell by 3% to $6.15 billion. Diluted EPS also saw a slight decrease to $2.80. The company highlighted continued growth in payments volume and processed transactions, indicating resilience in its core business, although the overall financial performance was affected by the global economic climate. Visa also emphasized its ongoing commitment to shareholder returns through significant share repurchases and dividend payments. The company's liquidity position remains strong, supported by robust cash flow from operations.

Financial Highlights

43 data points
Beta

Revenue

$5.73B

Net Income

$3.03B

52.8% Net Margin

Total Assets

$80.19B

Cash & Equivalents

$16.49B

Free Cash Flow

$3.33B

Financial Statements
Beta
Revenue$5.73B
Operating Expenses$2.15B
Operating Income$3.58B
Net Income$3.03B

Key Highlights

  • 1Net revenues for Q3 FY21 were $5.73 billion, down 2% year-over-year, impacted by reduced international transaction revenue.
  • 2Net income for Q3 FY21 was $3.03 billion, down 2% year-over-year.
  • 3Diluted EPS for Q3 FY21 was $1.38, flat compared to the prior year.
  • 4For the six months ended March 31, 2021, net revenues were $11.42 billion (down 4% YoY) and net income was $6.15 billion (down 3% YoY).
  • 5Payments volume and processed transactions showed growth, demonstrating resilience despite the pandemic.
  • 6The company repurchased $1.7 billion of Class A common stock in the quarter and has $10.0 billion remaining under its authorized repurchase programs.
  • 7Visa declared a quarterly cash dividend of $0.32 per share, payable in June 2021.

Frequently Asked Questions

The primary driver for the decrease in net revenues for the three and six months ended March 31, 2021, was the impact of COVID-19 on international transaction revenues, which declined significantly due to reduced cross-border travel and spending. Higher client incentives also contributed to this decrease.

Total operating expenses for the three months ended March 31, 2021, increased by 11% to $2.15 billion, primarily driven by higher personnel expenses and a one-time charge related to indirect taxes. For the six-month period, total operating expenses increased by 1% to $3.99 billion, also influenced by personnel costs, though partially offset by lower marketing and professional fees.

Visa acknowledges that COVID-19 continues to impact its business, with the extent of the impact being difficult to predict due to ongoing uncertainties like virus variants, vaccine rollouts, and border openings. While recovery is underway with improvements in payments volume and processed transactions, the company remains cautious about the unpredictable nature of the pandemic's influence on its operations and client businesses.

Visa continues to return capital to shareholders through share repurchases and dividends. In the quarter ended March 31, 2021, the company repurchased $1.7 billion of its Class A common stock and has a remaining authorization of $10.0 billion for future repurchases. Additionally, Visa declared a quarterly cash dividend of $0.32 per share.