Mastercard(MA) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter net revenue reached $7.5 billion, a 14% increase year-over-year, or 16% on a currency-neutral basis[2] - Fourth quarter net income was $3.3 billion, with diluted earnings per share (EPS) of $3.64, reflecting a 20% increase in net income and a 23% increase in EPS year-over-year[4] - For the full year 2024, net revenue was $28.2 billion, a 12% increase from 2023, with net income of $12.9 billion, up 15%[9] - Adjusted diluted EPS for Q4 2024 was $3.82, a 20% increase compared to the previous year[3] - Operating income for the year ended December 31, 2024, reached $15,582 million, up 11.3% from $14,008 million in 2023[20] - Net income for 2024 was $12,874 million, representing a 15.0% increase compared to $11,195 million in 2023[22] - Basic earnings per share for Q4 2024 was $3.64, a 22.2% increase from $2.98 in Q4 2023[20] Revenue Growth - Gross dollar volume grew by 12% year-over-year, reaching $2.6 trillion, while cross-border volume increased by 20%[8] - Payment network net revenue increased by 13%, driven by growth in payment network rebates and incentives, which rose by 14%[8] - Value-added services and solutions net revenue increased by 16%, driven by strong demand for consumer acquisition and engagement services[10] - Net revenue for Q4 2024 was $7,489 million, a 14.4% increase from $6,548 million in Q4 2023[20] Expenses and Margins - Total operating expenses for Q4 2024 were $3.6 billion, a 12% increase year-over-year[2] - For the full year 2024, reported GAAP operating expenses were $12,585 million, with an operating margin of 55.3% and net income of $12,874 million, resulting in diluted earnings per share of $13.89[30] - The full year 2024 saw a 13% increase in operating expenses, while net income increased by 15%, leading to a 17% rise in diluted earnings per share compared to 2023[30] - The adjusted non-GAAP operating margin for Q4 2024 was 56.3%, compared to 56.2% in Q4 2023, reflecting a slight improvement[27] Tax and Litigation - The effective income tax rate for Q4 2024 was 14.1%, down from 16.0% in the same period last year[4] - The effective income tax rate for Q4 2024 was 14.1%, a decrease of 1.8 percentage points from Q4 2023[27] - The company incurred pre-tax litigation provisions of $680 million in 2024, primarily related to legal settlements in the U.K.[32] Share Repurchase and Capital - The company repurchased 6.5 million shares for $3.4 billion in Q4 2024 and 23.0 million shares for $11.0 billion throughout the year[11] - The company reported a total of $6,442 million in additional paid-in capital as of December 31, 2024, compared to $5,893 million in 2023[21] Assets and Liabilities - Total assets increased to $48,081 million in 2024, up from $42,448 million in 2023, reflecting a growth of 13.8%[21] - Total liabilities rose to $41,566 million in 2024, compared to $35,451 million in 2023, marking a 17.4% increase[21] - Cash provided by operating activities for 2024 was $14,780 million, an increase from $11,980 million in 2023[22] Transaction Volume and Growth - For the 3 months ended December 31, 2024, Mastercard's worldwide gross dollar volume (GDV) reached $2,561 billion, reflecting an 8.9% growth compared to the previous year[33] - For the 12 months ended December 31, 2024, Mastercard's worldwide GDV totaled $9,757 billion, representing an 8.1% increase year-over-year[33] - The total number of transactions worldwide reached 50,606 million, growing by 11.4%[33] - The total number of cards issued worldwide was 3,240 million, with a growth of 7.2% for the 3 months ended December 31, 2024[33] Regional Performance - In the United States, GDV for the same period was $1,767 billion, with a growth rate of 8.9% and a transaction volume of 39,486 million, which grew by 12.1%[33] - The Asia Pacific, Middle East, and Africa (APMEA) region saw a GDV of $2,353 billion for the 12 months, with a growth rate of 3.0%[33] - In Europe, GDV for the 12 months was $3,279 billion, reflecting a 12.8% growth compared to the previous year[33] - The Latin America region reported a GDV of $820 billion for the 12 months, with a growth rate of 10.0%[33] Strategic Initiatives - The company plans to streamline its organization through a restructuring charge of $190 million to enhance operational efficiency and support long-term growth[32] - The company continues to focus on expanding its payment products, including credit, charge, debit, and prepaid programs, to enhance transaction volumes and customer engagement[38]