Visa Fiscal Fourth Quarter and Full-Year 2024 Financial Results

Rhea-AI Summary

Visa reported strong fiscal fourth quarter and full-year 2024 results, with Q4 GAAP net income of $5.3B ($2.65 per share) and net revenue of $9.6B, up 12% year-over-year. Full-year results showed net revenue of $35.9B, a 10% increase. The company saw stable growth in payments volume (+8%), cross-border volume (+13%), and processed transactions (61.5B, +10%). The board increased quarterly cash dividend by 13% to $0.590 per share. Share repurchases and dividends totaled $6.8B for Q4 and $20.9B for the full year.

Positive

• Q4 GAAP net income increased 14% to $5.3B
• Q4 net revenue grew 12% to $9.6B
• Processed transactions increased 10% to 61.5B
• 13% increase in quarterly cash dividend
• Cross-border volume grew 13%
• Share repurchases and dividends reached $20.9B for full-year

Negative

• None.

Insights

Financial Analyst

Visa delivered robust financial performance in Q4 with $5.3B GAAP net income, up 14% YoY and revenue growth of 12% reaching $9.6B. Key growth drivers include stable payments volume (+8%), cross-border volume (+13%) and processed transactions (+10%). The 13% dividend increase to $0.590 per share and substantial shareholder returns of $20.9B for the full year demonstrate strong capital return commitment.

Notable metrics include impressive client incentives control at 6% growth, below revenue growth and healthy operating leverage with expenses growing slower than revenue. The 16.5% effective tax rate benefited from jurisdictional positioning. The company's $17.7B cash position provides ample flexibility for future investments and shareholder returns.

Market Research Analyst

The sustained double-digit growth in cross-border volumes signals robust international travel recovery and consumer spending resilience. The 10% increase in processed transactions to 61.5B demonstrates Visa's expanding network effect and market penetration. Strong performance across all revenue streams, particularly the 30% growth in other revenue, indicates successful diversification beyond traditional payment processing.

The controlled growth in client incentives relative to revenue suggests strong pricing power and market position. The consistent performance in payment volumes despite macro uncertainties reflects Visa's defensive business model and essential role in the global payments ecosystem.

SAN FRANCISCO--(BUSINESS WIRE)-- Visa (NYSE: V) today announced its fiscal fourth quarter and full-year 2024 financial results through an earnings release that will be furnished with the Securities and Exchange Commission on a Form 8-K and available on its Investor Relations website at investor.visa.com/financial-information/quarterly-earnings/default.aspx.

Visa will host a live audio webcast at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these financial results. The webcast and all related materials can also be accessed through Visa’s Investor Relations website at investor.visa.com.

Fiscal Fourth Quarter Results:

• GAAP net income of $5.3B or $2.65 per share and non-GAAP net income of $5.4B or $2.71 per share
• Net revenue of $9.6B, an increase of 12% on a nominal and constant-dollar basis

Fiscal Full-Year Results:

• GAAP net income of $19.7B or $9.73 per share and non-GAAP net income of $20.4B or $10.05 per share
• Net revenue of $35.9B, an increase of 10% on a nominal and constant-dollar basis

Other Highlights:

• Fiscal fourth quarter growth in payments volume, cross-border volume and processed transactions remained relatively stable
• Share repurchases and dividends of $6.8B and $20.9B for fiscal fourth quarter and full-year, respectively
• The board of directors increased Visa's quarterly cash dividend 13% to $0.590 per share

Fiscal Fourth Quarter 2024 — Financial Highlights

GAAP net income in the fiscal fourth quarter was $5.3 billion or $2.65 per share, an increase of 14% and 17%, respectively, over prior year’s results. Current year's results included $46 million of net losses from equity investments and $76 million from the amortization of acquired intangible assets and acquisition-related costs. Prior year’s results included a special item of $109 million for a litigation provision associated with the interchange multidistrict litigation ("MDL") case, $7 million of net gains from equity investments and $67 million from the amortization of acquired intangible assets and acquisition-related costs. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $5.4 billion or $2.71 per share, increases of 13% and 16%, respectively, over prior year’s results (refer to Non-GAAP Financial Measures for further details).

GAAP earnings per share growth was approximately 18% on a constant-dollar basis, which excludes the impact of foreign currency fluctuations against the U.S. dollar. Non-GAAP earnings per share growth was approximately 17% on a constant-dollar basis. All references to earnings per share assume fully diluted class A share count.

Net revenue in the fiscal fourth quarter was $9.6 billion, an increase of 12%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenue increased 12% on a constant-dollar basis.

Payments volume for the three months ended June 30, 2024, on which fiscal fourth quarter service revenue is recognized, increased 7% over the prior year on a constant-dollar basis.

Payments volume for the three months ended September 30, 2024 increased 8% over the prior year on a constant-dollar basis.

Cross-border volume excluding transactions within Europe, which drives our international transaction revenue, increased 13% on a constant-dollar basis for the three months ended September 30, 2024. Total cross-border volume on a constant-dollar basis increased 13% in the quarter.

Total processed transactions, which represent transactions processed by Visa, for the three months ended September 30, 2024, were 61.5 billion, a 10% increase over the prior year.

Fiscal fourth quarter service revenue was $4.2 billion, an increase of 8% over the prior year, and is recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenue rose 8% over the prior year to $4.6 billion. International transaction revenue grew 9% over the prior year to $3.5 billion. Other revenue of $969 million rose 30% over the prior year. Client incentives were $3.6 billion, up 6% over the prior year.

GAAP operating expenses were $3.3 billion for the fiscal fourth quarter, a 7% increase over the prior year's results, primarily driven by increases in marketing and personnel expenses, partially offset by a decrease in the litigation provision. GAAP operating expenses included the amortization of acquired intangible assets and acquisition-related costs in the current and prior year and the special item related to the litigation provision associated with the MDL case in the prior year. Excluding these items, non-GAAP operating expenses increased 11% over the prior year, primarily driven by increases in marketing and personnel expenses.

GAAP non-operating income was $23 million for the fiscal fourth quarter, including $46 million of net equity investment losses. Excluding this item, non-GAAP non-operating income was $69 million.

GAAP and non-GAAP effective income tax rate was 16.5% for the quarter ended September 30, 2024. GAAP and non-GAAP tax rates had a tax benefit due to an update in our tax position across jurisdictions.

Cash, cash equivalents and investment securities were $17.7 billion at September 30, 2024.

The weighted-average number of diluted shares of class A common stock outstanding was 2.00 billion for the quarter ended September 30, 2024.

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029309175/en/

Investor Relations: Jennifer Como, 650-432-7644, InvestorRelations@visa.com

Media Relations: Fletcher Cook, 650-432-2990, Press@visa.com

Source: Visa Inc.

FAQ

What was Visa's (V) Q4 2024 earnings per share?

Visa reported Q4 2024 GAAP earnings of $2.65 per share and non-GAAP earnings of $2.71 per share.

How much did Visa's (V) revenue grow in Q4 2024?

Visa's net revenue grew 12% to $9.6 billion in Q4 2024, both on a nominal and constant-dollar basis.

What was Visa's (V) payment volume growth in Q4 2024?

Visa's payments volume increased 8% on a constant-dollar basis for the three months ended September 30, 2024.

How much did Visa (V) return to shareholders in fiscal 2024?

Visa returned $20.9 billion to shareholders through share repurchases and dividends in fiscal year 2024.