Visa(V) - 2024 Q4 - Annual Results

Financial Performance - GAAP net income for Q4 2024 was $5.3 billion, a 14% increase YoY, with GAAP EPS at $2.65, up 17% YoY[1][2] - Net revenue for Q4 2024 was $9.6 billion, a 12% increase YoY, driven by growth in payments volume, cross-border volume, and processed transactions[1][3] - GAAP net income for FY 2024 was $19.7 billion, a 14% increase YoY, with GAAP EPS at $9.73, up 17% YoY[11] - Net revenue for FY 2024 was $35.9 billion, a 10% increase YoY, driven by growth in payments volume, cross-border volume, and processed transactions[12] - Visa's Q4 2024 net revenue increased by 12% YoY to $9.617 billion, with full-year net revenue reaching $35.926 billion, a 10% YoY increase[30] - Visa's Q4 2024 net income increased by 14% YoY to $5.318 billion, with full-year net income up 14% YoY to $19.743 billion[30] - Earnings per share for Q4 2024 grew by 17% YoY to $2.65, with full-year earnings per share up 17% YoY to $9.73[30] - Net revenue for the three months ended September 30, 2024, was $9.617 billion, a 11.7% increase from $8.609 billion in the same period in 2023[35] - Net income for the three months ended September 30, 2024, was $5.318 billion, a 13.6% increase from $4.681 billion in the same period in 2023[35] - Operating income for the three months ended September 30, 2024, was $6.349 billion, a 14.4% increase from $5.550 billion in the same period in 2023[35] - Visa's net income for the fiscal 2024 quarter ended September 30 was $5,318 million, compared to $4,681 million in the same quarter of fiscal 2023[37] Revenue Breakdown - Service revenue for Q4 2024 grew by 8% YoY to $4.199 billion, while full-year service revenue increased by 9% YoY to $16.114 billion[30] - Data processing revenue for Q4 2024 rose by 8% YoY to $4.610 billion, with full-year data processing revenue up 11% YoY to $17.714 billion[30] - International transaction revenue for Q4 2024 increased by 9% YoY to $3.468 billion, with full-year international transaction revenue up 9% YoY to $12.665 billion[30] - Other revenue for Q4 2024 surged by 30% YoY to $969 million, with full-year other revenue up 29% YoY to $3.197 billion[30] Transaction and Volume Metrics - Payments volume increased 8% YoY in Q4 2024, with cross-border volume excluding intra-Europe up 13% YoY[1][4] - Total processed transactions in Q4 2024 were 61.5 billion, a 10% increase YoY[5] - Total processed transactions for FY 2024 were 233.8 billion, a 10% increase YoY[13] - Payments volume for Q4 2024 increased by 8% YoY, with full-year payments volume up 8% YoY[31] - Cross-border volume excluding intra-Europe for Q4 2024 grew by 13% YoY, with full-year cross-border volume excluding intra-Europe up 15% YoY[31] - Processed transactions for Q4 2024 increased by 10% YoY, with full-year processed transactions up 10% YoY[31] Operating Expenses - GAAP operating expenses for Q4 2024 were $3.3 billion, a 7% increase YoY, primarily due to higher marketing and personnel expenses[7] - Total operating expenses for the three months ended September 30, 2024, were $3.268 billion, a 6.8% increase from $3.059 billion in the same period in 2023[35] - Total operating expenses for the fiscal 2024 quarter ended September 30 were $3,268 million, up from $3,059 million in the same quarter of fiscal 2023[37] - Operating expenses for the reported period were $3,059 million, with non-GAAP operating expenses at $2,883 million[47] - Operating expenses for the twelve months ended September 30, 2023, were $11,653 million, with non-GAAP operating expenses at $10,481 million[49] Share Repurchases and Dividends - Visa repurchased 22 million shares of class A common stock in Q4 2024 for $5.8 billion, with a total of 62 million shares repurchased in FY 2024 for $16.7 billion[22] - Repurchases of Class A common stock for the twelve months ended September 30, 2024, were $16.713 billion, a 38.1% increase from $12.101 billion in the same period in 2023[36] - Dividends paid for the twelve months ended September 30, 2024, were $4.217 billion, a 12.4% increase from $3.751 billion in the same period in 2023[36] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the twelve months ended September 30, 2024, was $19.950 billion, a 3.9% decrease from $20.755 billion in the same period in 2023[36] - Cash, cash equivalents, restricted cash, and restricted cash equivalents as of the end of the period for the twelve months ended September 30, 2024, were $19.763 billion, a 10.1% decrease from $21.990 billion in the same period in 2023[36] - Purchases of property, equipment, and technology for the twelve months ended September 30, 2024, were $1.257 billion, an 18.7% increase from $1.059 billion in the same period in 2023[36] - Acquisitions, net of cash and restricted cash acquired for the twelve months ended September 30, 2024, were $915 million, compared to $0 in the same period in 2023[36] Non-GAAP Financial Metrics - Visa's non-GAAP net income for the three months ended September 30, 2024 was $5,425 million, compared to $5,318 million on a GAAP basis[46] - Visa's non-GAAP diluted earnings per share for the three months ended September 30, 2024 was $2.71, compared to $2.65 on a GAAP basis[46] - Visa's non-GAAP operating expenses for the three months ended September 30, 2024 were $3,192 million, compared to $3,268 million on a GAAP basis[46] - Visa's non-GAAP net income for the twelve months ended September 30, 2024 was $20,389 million, compared to $19,743 million on a GAAP basis[46] - Visa's non-GAAP diluted earnings per share for the twelve months ended September 30, 2024 was $10.05, compared to $9.73 on a GAAP basis[46] - Visa's non-GAAP operating expenses for the twelve months ended September 30, 2024 were $11,609 million, compared to $12,331 million on a GAAP basis[46] - Visa's non-GAAP effective income tax rate for the twelve months ended September 30, 2024 was 17.6%, compared to 17.4% on a GAAP basis[46] - Visa's non-GAAP nonoperating income for the twelve months ended September 30, 2024 was $415 million, compared to $321 million on a GAAP basis[46] - Net income as reported was $4,681 million, with non-GAAP net income at $4,816 million[47] - Diluted earnings per share as reported were $2.27, with non-GAAP diluted earnings per share at $2.33[47] - Effective income tax rate as reported was 16.9%, with non-GAAP effective income tax rate at 17.0%[47] - Net income for the twelve months ended September 30, 2023, was $17,273 million, with non-GAAP net income at $18,280 million[49] - Diluted earnings per share for the twelve months ended September 30, 2023, were $8.28, with non-GAAP diluted earnings per share at $8.77[49] - Effective income tax rate for the twelve months ended September 30, 2023, was 17.9%, with non-GAAP effective income tax rate at 18.1%[49] Acquisitions - Visa announced the acquisition of Featurespace, a developer of real-time AI payments protection technology, expected to close in FY 2025[21]