10-QPeriod: Q2 FY2024

VISA INC. Quarterly Report for Q2 Ended Mar 31, 2024

Filed April 24, 2024For Securities:V

Summary

Visa Inc. reported a solid third quarter for fiscal year 2024, demonstrating robust revenue growth driven by increased payment volumes and processed transactions across both U.S. and international markets. Net revenue grew 10% year-over-year to $8.8 billion, while net income saw a 10% increase to $4.7 billion, resulting in diluted earnings per share of $2.29. Despite a significant increase in GAAP operating expenses, largely due to a substantial litigation provision and higher general and administrative costs, the company's non-GAAP metrics also showed strong performance. Visa continued its commitment to returning capital to shareholders through substantial share repurchases totaling $6.4 billion in the first six months of the fiscal year and a declared quarterly dividend of $0.52 per share. The acquisition of Pismo Holdings for $929 million in January 2024 is expected to enhance Visa's issuer processing capabilities.

Financial Highlights

45 data points
Beta

Revenue

$8.78B

Net Income

$4.66B

53.1% Net Margin

Total Assets

$92.40B

Cash & Equivalents

$12.99B

Free Cash Flow

$4.54B

Financial Statements
Beta
Revenue$8.78B
Operating Expenses$3.42B
Operating Income$5.35B
Net Income$4.66B

Key Highlights

  • 1Net revenue increased by 10% to $8.775 billion for the three months ended March 31, 2024, compared to $7.985 billion in the prior year, driven by growth in service revenue, data processing revenue, and international transaction revenue.
  • 2Net income rose by 10% to $4.663 billion for the quarter, with diluted earnings per share (EPS) reaching $2.29, up from $2.03 in the prior year.
  • 3The company repurchased $6.4 billion of its Class A common stock in the first six months of fiscal year 2024, underscoring its commitment to shareholder returns, with $23.6 billion remaining on its authorization.
  • 4Visa completed the acquisition of Pismo Holdings for $929 million on January 16, 2024, to bolster its issuer processing and core banking platform capabilities.
  • 5GAAP operating expenses increased significantly by 29% to $3.421 billion, primarily due to a $430 million litigation provision and increased general and administrative expenses.
  • 6Non-GAAP diluted earnings per share saw a strong increase of 20% to $2.51, demonstrating underlying operational strength excluding certain one-time or non-recurring items.
  • 7International revenue grew by 15% for both the quarter and the six-month period, outpacing U.S. revenue growth which was up 3%.

Frequently Asked Questions

For the three months ended March 31, 2024, Visa reported a 10% increase in net revenue to $8.775 billion, and a 10% increase in net income to $4.663 billion, compared to the same period in the prior year. Diluted earnings per share rose to $2.29 from $2.03.

GAAP operating expenses increased by 29% year-over-year to $3.421 billion. This was primarily driven by a significant increase in litigation provision ($430 million for the quarter) and higher general and administrative expenses. However, non-GAAP operating expenses saw a more modest increase of 11%.

Visa acquired Pismo Holdings for $929 million on January 16, 2024. Pismo is a global cloud-native issuer processing and core banking platform, and this acquisition is expected to strengthen Visa's capabilities in providing essential services to financial institutions for card issuance and management.

Visa continues to prioritize shareholder returns. During the first six months of fiscal year 2024, the company repurchased $6.4 billion of its Class A common stock. Additionally, the company declared a quarterly cash dividend of $0.52 per share, payable on June 3, 2024, signaling ongoing confidence in its financial performance and commitment to returning value to investors.