10-QPeriod: Q1 FY2022

VISA INC. Quarterly Report for Q1 Ended Dec 31, 2021

Filed January 28, 2022For Securities:V

Summary

Visa Inc. reported strong financial performance for the quarter ending December 31, 2021, with net revenues increasing by 24% year-over-year to $7.1 billion. This growth was primarily driven by a significant rise in payments volume and processed transactions, alongside a notable increase in international transaction revenues. Despite a 24% increase in operating expenses, largely due to a higher litigation provision and increased personnel and marketing costs, the company maintained robust profitability. Net income grew by 27% to $3.96 billion, and diluted earnings per share rose to $1.83. Visa also continued its commitment to returning capital to shareholders, with substantial share repurchases and dividend payments. The company also announced the acquisition of The Currency Cloud Group Limited, signaling continued strategic expansion in the payments technology landscape.

Financial Highlights

45 data points
Beta

Revenue

$7.06B

Net Income

$3.96B

56.1% Net Margin

Total Assets

$81.93B

Cash & Equivalents

$14.72B

Free Cash Flow

$4.23B

Financial Statements
Beta
Revenue$7.06B
Operating Expenses$2.28B
Operating Income$4.78B
Net Income$3.96B

Key Highlights

  • 1Net revenues surged by 24% to $7.06 billion, driven by strong growth in payments volume and processed transactions.
  • 2Net income increased by 27% to $3.96 billion, demonstrating effective revenue growth management.
  • 3Diluted Earnings Per Share (EPS) rose to $1.83, a 29% increase year-over-year.
  • 4Acquisition of The Currency Cloud Group Limited for $893 million, bolstering foreign exchange solutions for cross-border payments.
  • 5Visa repurchased $4.1 billion of its Class A common stock during the quarter, underscoring a commitment to shareholder returns.
  • 6Litigation provision increased significantly due to an additional $145 million accrual related to U.S. covered litigation, impacting operating expenses but managed within overall profitability.
  • 7International transaction revenues saw a substantial 50% increase, highlighting global transaction growth.

Frequently Asked Questions

Visa's revenue growth was primarily driven by a 24% increase in net revenues, fueled by a 21% rise in nominal payments volume and a 21% increase in processed transactions. International transaction revenues also showed strong growth, increasing by 50%.

The litigation provision increased significantly to $148 million from $1 million in the prior year, largely due to an additional $145 million accrual related to U.S. covered litigation. This increased operating expenses but was managed such that net income still saw a healthy 27% increase.

The acquisition of The Currency Cloud Group Limited for $893 million enhances Visa's capabilities in foreign exchange solutions for cross-border payments, aligning with Visa's strategy to expand its offerings in global commerce and money movement.

Visa is returning capital to shareholders through a combination of substantial share repurchases and dividend payments. In this quarter, Visa repurchased $4.1 billion of its Class A common stock and declared a quarterly cash dividend of $0.375 per share.