Visa Inc. Reports Fiscal Second Quarter 2021 Results
San Francisco, CA, April 27, 2021 - Visa Inc. (NYSE: V)
- GAAP and non-GAAP net income of $3.0B or $1.38 per share
- Net revenues of $5.7B, a decrease of 2% or approximately flat if service revenues were recognized on current quarter's payments volume
- Our key business driver growth rates are starting to ramp up, reflecting the depressed levels in 2020 due to COVID-19 and making year-over-year comparisons difficult to interpret
- Compared to fiscal second quarter 2019 levels, payments volume and processed transactions were both 16 percentage points higher, while cross-border volumes excluding intra-Europe remained 25 percentage points lower. All business drivers were consistent or improved from the fiscal first quarter's results indexed to 2019
- Returned $2.4B of capital to shareholders in the form of share repurchases and dividends
Q2 2021 | |||
In billions, except percentages and per share data. % change is | USD | % Change | |
calculated over the comparable prior-year period. | |||
Net Revenues | $5.7 | (2%) | |
GAAP Net Income | $3.0 | (2%) | |
GAAP Earnings Per Share | $1.38 | 0% | |
Non-GAAP Net Income(1) | $3.0 | (2%) | |
Non-GAAP Earnings Per Share(1) | $1.38 | (1%) |
- Non-GAAPresults exclude a special item, equity investment gains and losses, amortization of acquired intangible assets, non-recurringacquisition-related costs and the related
tax impacts.
Q2 2021 Key Business Drivers
(YoY increase / (decrease), volume in constant dollars)
Q2 2021 | |
Payments Volume | 11% |
Cross-Border Volume Excluding Intra-Europe(1) | (21%) |
Cross-Border Volume Total | (11%) |
Processed Transactions | 8% |
- Cross-bordervolume excluding transactions within Europe.
Alfred F. Kelly, Jr., Chairman and Chief Executive Officer, Visa Inc., commented on the results:
"The COVID-19 pandemic certainly has turned the world upside down in the last year, but we believe we are starting to see the beginning of the end and the recovery is well underway in a number of key markets around the world. This quarter, we saw a return to positive growth for credit and card present transactions and debit and eCommerce growth stayed at very healthy levels. Cross-border travel is the slowest sector to return, but there are some green shoots that offer real indication of people looking to see the world. As economies are recovering, Visa is very well-positioned and continues to invest and innovate to drive big gains in our three strategic growth areas: consumer payments, new flows and value added services."
Fiscal Second Quarter 2021 - Financial Highlights
GAAP net income in the fiscal second quarter was $3.0 billion or $1.38 per share, a decrease of 2% and flat, respectively, over prior year's results. Current year's results included $152 million pertaining to a special item for additional indirect taxes related to prior periods, $156 million of net gains from equity investments and $18 million regarding the amortization of acquired intangible assets and non-recurringacquisition-related costs. Prior year's results included $2 million of net losses from equity investments and $16 million corresponding to the amortization of acquired intangible assets and non-recurringacquisition-related costs. Excluding these items and the related tax impacts, non-GAAP net income for the quarter was $3.0 billion or $1.38 per share, decreases of 2% and 1%, respectively, over prior year's results (refer to the accompanying financial tables for further details and a reconciliation of the non-GAAP measures presented). Non-GAAP earnings per share was approximately flat on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count.
Net revenues in the fiscal second quarter were $5.7 billion, a decrease of 2%, primarily driven by the year-over-year decline in cross-border volume, mostly offset by growth in payments volume and processed transactions. Net revenues decreased approximately 3% on a constant-dollar basis. Had we recognized service revenues on current quarter payments volume and other revenue components remained unchanged, net revenues would have been approximately flat.
Payments volume for the three months ended December 31, 2020, on which fiscal second quarter service revenue is recognized, increased 5% over the prior year on a constant-dollar basis.
Payments volume for the three months ended March 31, 2021, increased 11% over the prior year on a constant-dollar basis.
Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, declined 21% on a constant-dollar basis for the three months ended March 31, 2021. Total cross-border volume on a constant-dollar basis declined 11% in the quarter.
Total processed transactions, which represent transactions processed by Visa, for the three months ended March 31, 2021, were 37.6 billion, an 8% increase over the prior year, led by domestic transactions.
Fiscal second quarter service revenues were $2.8 billion, an increase of 8% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues grew 11% over the prior year to $3.0 billion. International transaction revenues declined 19% over the prior year to $1.5 billion. Other revenues of $392 million were flat over the prior year. Client incentives, a contra-revenue item, were $2.0 billion and represented 25.8% of gross revenues.
GAAP operating expenses were $2.1 billion for the fiscal second quarter, an 11% increase over the prior year's results, including the special item related to the additional indirect taxes in the current year and the amortization of acquired intangible assets and non- recurring acquisition-related costs in the current and prior year. Excluding these operating expense items, non-GAAP operating expenses increased 3% over the prior year, primarily driven by an increase in personnel expenses partially offset by decreases in general and administrative, marketing and professional fees.
GAAP non-operating income was $47 million for the fiscal second quarter, including $156 million of net equity investment gains. Excluding this item, non-GAAPnon-operating expense was $109 million.
GAAP effective income tax rate was 16.6% for the quarter ended March 31, 2021, including the tax impacts of the special item, net equity investment gains, amortization of acquired intangible assets and non-recurringacquisition-related costs. Excluding these items, the non-GAAP effective income tax rate was 16.8% for the quarter ended March 31, 2021. GAAP and non-GAAP tax rates benefited from completing certain tax audits.
Cash, cash equivalents and investment securities were $18.7 billion at March 31, 2021.
The weighted-average number of diluted shares of class A common stock outstanding was 2.19 billion for the quarter ended March 31, 2021.
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Other Notable Items
During the three months ended March 31, 2021, Visa repurchased 8.3 million shares of class A common stock at an average price of $208.51 per share for $1.7 billion. In the six months ended March 31, 2021, Visa repurchased a total of 17.0 million shares of class A common stock, at an average price of $205.33 per share, using $3.5 billion of cash on hand. The Company had $9.9 billion of remaining authorized funds for share repurchase as of March 31, 2021.
On April 23, 2021, the board of directors declared a quarterly cash dividend of $0.32 per share of class A common stock (determined in the case of class B and C common stock and series A, B and C convertible participating preferred stock on an as- converted basis) payable on June 1, 2021, to all holders of record as of May 14, 2021.
Financial Outlook for Fiscal Full-Year 2021
Given the continuing impact of COVID-19 and the significant uncertainty in the global economy, it is difficult to reasonably estimate the Company's annual results; therefore we are not providing a fiscal full-year 2021 outlook at this time.
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Fiscal Second Quarter 2021 Earnings Results Call Details
Visa's executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at
http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.'s Investor Relations website at
http://investor.visa.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, the impact on our underlying business drivers and other volume and transaction trends as a result of COVID-19, our future operations, prospects, developments, strategies and business growth. Forward-looking statements generally are identified by words such as "anticipates," "estimates," "expects," "intends," "may," "projects," "outlook," "could," "should," "will," "continue" and other similar expressions. All statements other than statements of historical fact could be forward- looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict.
Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not limited to:
- impact of global economic, political, market, health and social events or conditions, including the impact of COVID-19;
- increased oversight and regulation of the global payments industry and our business;
- impact of government-imposed obligations and/or restrictions on international payment systems;
- outcome of tax, litigation and governmental investigation matters;
- increasingly intense competition in the payments industry, including competition for our clients and merchants;
- proliferation and continuous evolution of new technologies and business models;
- our ability to maintain relationships with our clients, acquirers, processors, merchants and other third parties;
- brand or reputational damage;
- exposure to loss or illiquidity due to settlement guarantees;
- the impact of the United Kingdom's withdrawal from the European Union;
- a disruption, failure, breach or cyber-attack of our networks or systems;
- risks, uncertainties and the failure to achieve the anticipated benefits with respect to our acquisitions and other strategic investments; and
- other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2020, and our subsequent reports on Forms 10-Q and 8-K.
Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.
About Visa Inc.
Visa Inc. (NYSE: V) is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. Our relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/about-visa.html, usa.visa.com/visa- everywhere/blog.html and @VisaNews.
Contacts | Investor Relations | Media Relations | |
Mike Milotich or Jennifer Como, 650-432-7644 | Andy Gerlt, 650-432-2990 | ||
InvestorRelations@visa.com | Press@visa.com | ||
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Fiscal Second Quarter 2021 - Financial Summary
Q2 FISCAL 2021 INCOME STATEMENT SUMMARY
(in millions, except percentages and per share data)
Re ve nue s
Three Months Ended | YoY Change | ||
March 31, 2021 | |||
GAAP | Non-GAAP | GAAP | Non-GAAP |
Service revenues | $ | 2,845 | $ | 2,845 | 8% | 8% |
Data processing revenues | 2,996 | 2,996 | 11% | 11% | ||
International transaction revenues | 1,488 | 1,488 | (19%) | (19%) | ||
Other revenues | 392 | 392 | 0% | 0% | ||
Client incentives | (1,992) | (1,992) | 17% | 17% | ||
Net revenues | 5,729 | 5,729 | (2%) | (2%) | ||
Operating Expenses | ||||||
Personnel | 1,114 | 1,112 | 18% | 19% | ||
Marketing | 206 | 206 | (12%) | (12%) | ||
Network and processing | 179 | 179 | (2%) | (1%) | ||
Professional fees | 82 | 80 | (21%) | (21%) | ||
Depreciation and amortization | 201 | 187 | 5% | 4% | ||
General and administrative | 363 | 211 | 35% | (22%) | ||
Litigation provision | 3 | 3 | (66%) | (66%) | ||
Total operating expenses | 2,148 | 1,978 | 11% | 3% | ||
Operating income | 3,581 | 3,751 | (9%) | (5%) | ||
Non-operating income/(expense) | 47 | (109) | (150%) | 15% | ||
Effective tax rate | 16.6% | 16.8% | (3 ppt) | (3 ppt) | ||
Net income | $ | 3,026 | $ | 3,031 | (2%) | (2%) |
Earnings per share | $ | 1 .38 | $ | 1 .38 | 0% | (1%) |
Q2 FISCAL 2021 KEY BUSINESS DRIVERS | ||||||
YoY Change | ||||||
Constant | Nominal | |||||
Payments volume | 11% | 14% | ||||
Cross-border volume excluding intra-Europe(1) | (21%) | (19%) | ||||
Cross-border volume total | (11%) | (6%) | ||||
Processed transactions | 8% | 8% |
- Cross-bordervolume excluding transactions within Europe.
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Visa Inc. Consolidated Balance Sheets (unaudited)
March 31, | September 30, | ||||||||||||
2021 | 2020 | ||||||||||||
(in millions, except per share data) | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 16,494 | $ | 16,289 | |||||||||
Restricted cash equivalents-U.S. litigation escrow | 894 | 901 | |||||||||||
Investment securities | 2,058 | 3,752 | |||||||||||
Settlement receivable | 1,434 | 1,264 | |||||||||||
Accounts receivable | 1,791 | 1,618 | |||||||||||
Customer collateral | 2,057 | 1,850 | |||||||||||
Current portion of client incentives | 1,324 | 1,214 | |||||||||||
Prepaid expenses and other current assets | 849 | 757 | |||||||||||
Total current assets | 26,901 | 27,645 | |||||||||||
Investment securities | 110 | 231 | |||||||||||
Client incentives | 3,252 | 3,175 | |||||||||||
Property, equipment and technology, net | 2,684 | 2,737 | |||||||||||
Goodwill | 15,980 | 15,910 | |||||||||||
Intangible assets, net | 27,823 | 27,808 | |||||||||||
Other assets | 3,445 | 3,413 | |||||||||||
Total assets | $ | 80,195 | $ | 80,919 | |||||||||
Liabilities | |||||||||||||
Accounts payable | $ | 126 | $ | 174 | |||||||||
Settlement payable | 2,000 | 1,736 | |||||||||||
Customer collateral | 2,057 | 1,850 | |||||||||||
Accrued compensation and benefits | 794 | 821 | |||||||||||
Client incentives | 4,760 | 4,176 | |||||||||||
Accrued liabilities | 2,088 | 1,840 | |||||||||||
Current maturities of debt | - | 2,999 | |||||||||||
Accrued litigation | 886 | 914 | |||||||||||
Total current liabilities | 12,711 | 14,510 | |||||||||||
Long-term debt | 20,974 | 21,071 | |||||||||||
Deferred tax liabilities | 5,212 | 5,237 | |||||||||||
Other liabilities | 3,602 | 3,891 | |||||||||||
Total liabilities | 42,499 | 44,709 | |||||||||||
Equity | |||||||||||||
Preferred stock, $0.0001 par value, 25 shares authorized and 5 shares issued and outstanding as follows: | |||||||||||||
Series A convertible participating preferred stock, less than one shares issued and outstanding at March 31, 2021 and | 713 | 2,437 | |||||||||||
September 30, 2020 (the "series A preferred stock") | |||||||||||||
Series B convertible participating preferred stock, 2 shares issued and outstanding at March 31, 2021 and September | 1,097 | 1,106 | |||||||||||
30, 2020 (the "UK&I preferred stock") | |||||||||||||
Series C convertible participating preferred stock, 3 shares issued and outstanding at March 31, 2021 and September | 1,537 | 1,543 | |||||||||||
30, 2020 (the "Europe preferred stock") | |||||||||||||
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,694 and 1,683 shares issued and outstanding at | - | - | |||||||||||
March 31, 2021 and September 30, 2020, respectively | |||||||||||||
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at March 31, 2021 and | - | - | |||||||||||
September 30, 2020 | |||||||||||||
Class C common stock, $0.0001 par value, 1,097 shares authorized, 11 shares issued and outstanding at March 31, 2021 and | - | - | |||||||||||
September 30, 2020 | |||||||||||||
Right to recover for covered losses | (41) | (39) | |||||||||||
Additional paid-in capital | 18,505 | 16,721 | |||||||||||
Accumulated income | 15,513 | 14,088 | |||||||||||
Accumulated other comprehensive income (loss), net: | |||||||||||||
Investment securities | 1 | 3 | |||||||||||
Defined benefit pension and other postretirement plans | (192) | (196) | |||||||||||
Derivative instruments | (310) | (291) | |||||||||||
Foreign currency translation adjustments | 873 | 838 | |||||||||||
Total accumulated other comprehensive income (loss), net | 372 | 354 | |||||||||||
Total equity | 37,696 | 36,210 | |||||||||||
Total liabilities and equity | $ | 80,195 | $ | 80,919 | |||||||||
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Visa Inc. Consolidated Statements of Operations (unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||
Net revenues | $ | 5,729 | $ | 5,854 | $ | 11,416 | $ | 11,908 | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Personnel | 1,114 | 940 | 2,095 | 1,922 | ||||||||||||||||||||
Marketing | 206 | 235 | 411 | 509 | ||||||||||||||||||||
Network and processing | 179 | 183 | 352 | 364 | ||||||||||||||||||||
Professional fees | 82 | 103 | 165 | 209 | ||||||||||||||||||||
Depreciation and amortization | 201 | 192 | 398 | 374 | ||||||||||||||||||||
General and administrative | 363 | 269 | 566 | 582 | ||||||||||||||||||||
Litigation provision | 3 | 8 | 4 | 8 | ||||||||||||||||||||
Total operating expenses | 2,148 | 1,930 | 3,991 | 3,968 | ||||||||||||||||||||
Operating income | 3,581 | 3,924 | 7,425 | 7,940 | ||||||||||||||||||||
Non-operating Income (Expense) | ||||||||||||||||||||||||
Interest expense, net | (121) | (118) | (257) | (229) | ||||||||||||||||||||
Investment income and other | 168 | 23 | 208 | 92 | ||||||||||||||||||||
Total non-operating income (expense) | 47 | (95) | (49) | (137) | ||||||||||||||||||||
Income before income taxes | 3,628 | 3,829 | 7,376 | 7,803 | ||||||||||||||||||||
Income tax provision | 602 | 745 | 1,224 | 1,447 | ||||||||||||||||||||
Net income | $ | 3,026 | $ | 3,084 | $ | 6,152 | $ | 6,356 | ||||||||||||||||
Basic Earnings Per Share | ||||||||||||||||||||||||
Class A common stock | $ | 1.38 | $ | 1.39 | $ | 2.80 | $ | 2.85 | ||||||||||||||||
Class B common stock | ||||||||||||||||||||||||
$ | 2.24 | $ | 2.25 | $ | 4.55 | $ | 4.62 | |||||||||||||||||
Class C common stock | $ | 5.52 | $ | 5.54 | $ | 11.22 | $ | 11.40 | ||||||||||||||||
Basic Weighted-average Shares Outstanding | ||||||||||||||||||||||||
Class A common stock | 1,695 | 1,703 | 1,695 | 1,708 | ||||||||||||||||||||
Class B common stock | 245 | 245 | 245 | 245 | ||||||||||||||||||||
Class C common stock | ||||||||||||||||||||||||
11 | 11 | 11 | 11 | |||||||||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||||||
Class A common stock | $ | 1.38 | $ | 1.38 | $ | 2.80 | $ | 2.85 | ||||||||||||||||
Class B common stock | ||||||||||||||||||||||||
$ | 2.24 | $ | 2.25 | $ | 4.54 | $ | 4.62 | |||||||||||||||||
Class C common stock | $ | 5.52 | $ | 5.54 | $ | 11.20 | $ | 11.38 | ||||||||||||||||
Diluted Weighted-average Shares Outstanding | ||||||||||||||||||||||||
Class A common stock | 2,193 | 2,228 | 2,196 | 2,234 | ||||||||||||||||||||
Class B common stock | 245 | 245 | 245 | 245 | ||||||||||||||||||||
Class C common stock | ||||||||||||||||||||||||
11 | 11 | 11 | 11 | |||||||||||||||||||||
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Visa Inc. Consolidated Statements of Cash Flows (unaudited)
Six Months Ended
March 31,
2021 | 2020 | |||||||||
(in | millions) | |||||||||
Operating Activities | ||||||||||
Net income | $ | 6,152 | $ | 6,356 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||
Client incentives | 3,850 | 3,453 | ||||||||
Share-based compensation | 275 | 215 | ||||||||
Depreciation and amortization of property, equipment, technology and intangible assets | 398 | 374 | ||||||||
Deferred income taxes | (27) | (37) | ||||||||
VE territory covered losses incurred | (17) | (13) | ||||||||
Other | (220) | (84) | ||||||||
Change in operating assets and liabilities: | ||||||||||
Settlement receivable | (127) | 1,642 | ||||||||
Accounts receivable | (165) | 38 | ||||||||
Client incentives | (3,262) | (4,323) | ||||||||
Other assets | (116) | (496) | ||||||||
Accounts payable | (41) | 14 | ||||||||
Settlement payable | 210 | (2,165) | ||||||||
Accrued and other liabilities | (39) | 303 | ||||||||
Accrued litigation | (29) | 65 | ||||||||
Net cash provided by (used in) operating activities | 6,842 | 5,342 | ||||||||
Investing Activities | ||||||||||
Purchases of property, equipment and technology | (318) | (407) | ||||||||
Investment securities: | ||||||||||
Purchases | (2,015) | (499) | ||||||||
Proceeds from maturities and sales | 3,871 | 3,420 | ||||||||
Acquisitions, net of cash acquired | (75) | (77) | ||||||||
Purchases of / contributions to other investments | (30) | (30) | ||||||||
Other investing activities | 41 | 34 | ||||||||
Net cash provided by (used in) investing activities | 1,474 | 2,441 | ||||||||
Financing Activities | ||||||||||
Repurchase of class A common stock | (3,509) | (5,503) | ||||||||
Repayments of debt | (3,000) | - | ||||||||
Dividends paid | (1,404) | (1,339) | ||||||||
Proceeds from issuance of commercial paper | - | 1,001 | ||||||||
Cash proceeds from issuance of class A common stock under employee equity plans | 108 | 109 | ||||||||
Restricted stock and performance-based shares settled in cash for taxes | (140) | (155) | ||||||||
Net cash provided by (used in) financing activities | (7,945) | (5,887) | ||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 16 | 88 | ||||||||
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 387 | 1,984 | ||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 19,171 | 10,832 | ||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ | 19,558 | $ | 12,816 | ||||||
Supplemental Disclosure | ||||||||||
Cash paid for income taxes, net | $ | 1,505 | $ | 1,691 | ||||||
Interest payments on debt | $ | 340 | $ | 269 | ||||||
Accruals related to purchases of property, equipment and technology | $ | 17 | $ | 42 |
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Visa Inc. Fiscal 2021 and 2020 Quarterly Results of Operations (unaudited)
Fiscal 2021 Quarter Ended | Fiscal 2020 Quarter Ended | |||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Net revenues | $ | 5,729 | $ | 5,687 | $ | 5,101 | $ | 4,837 | $ | 5,854 | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||
Personnel | 1,114 | 981 | 922 | 941 | 940 | |||||||||||||||||||||
Marketing | 206 | 205 | 288 | 174 | 235 | |||||||||||||||||||||
Network and processing | 179 | 173 | 191 | 172 | 183 | |||||||||||||||||||||
Professional fees | 82 | 83 | 104 | 95 | 103 | |||||||||||||||||||||
Depreciation and amortization | 201 | 197 | 196 | 197 | 192 | |||||||||||||||||||||
General and administrative | 363 | 203 | 256 | 258 | 269 | |||||||||||||||||||||
Litigation provision | 3 | 1 | 2 | 1 | 8 | |||||||||||||||||||||
Total operating expenses | 2,148 | 1,843 | 1,959 | 1,838 | 1,930 | |||||||||||||||||||||
Operating income | 3,581 | 3,844 | 3,142 | 2,999 | 3,924 | |||||||||||||||||||||
Non-operating Income (Expense) | ||||||||||||||||||||||||||
Interest expense, net | (121) | (136) | (145) | (142) | (118) | |||||||||||||||||||||
Investment income and other | 168 | 40 | 58 | 75 | 23 | |||||||||||||||||||||
Total non-operating income (expense) | 47 | (96) | (87) | (67) | (95) | |||||||||||||||||||||
Income before income taxes | 3,628 | 3,748 | 3,055 | 2,932 | 3,829 | |||||||||||||||||||||
Income tax provision | 602 | 622 | 918 | 559 | 745 | |||||||||||||||||||||
Net income | $ | 3,026 | $ | 3,126 | $ | 2,137 | $ | 2,373 | $ | 3,084 | ||||||||||||||||
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Visa Inc. Reconciliation of Non-GAAP Financial Results (unaudited)
We use non-GAAP financial measures of our performance which exclude certain items which we believe are not representative of our continuing operations, as they may be non-recurring or have no cash impact, and may distort our longer-term operating trends. We consider non-GAAP measures useful to investors because they provide greater transparency into management's view and assessment of our ongoing operating performance.
- Gains and losses on equity investments. Gains and losses on equity investments include periodic non-cash fair value adjustments and gains and losses upon sale of an investment. These long-term investments are strategic in nature and are primarily private company investments. Gains and losses and the related tax impacts associated with these investments are tied to the performance of the companies that we invest in and therefore do not correlate to the underlying performance of our business.
- Amortization of acquired intangible assets. Amortization of acquired intangible assets consists of amortization of intangible assets such as developed technology, customer relationships and brands acquired in connection with business combinations executed beginning in fiscal 2019. Amortization charges for our acquired intangible assets are non-cash and are significantly affected by the timing, frequency and size of our acquisitions, rather than our core operations. As such, we have excluded this amount and the related tax impact to facilitate an evaluation of our current operating performance and comparison to our past operating performance.
- Acquisition-relatedcosts. Acquisition-related costs consist primarily of one-time transaction and integration costs associated with our business combinations. These costs include professional fees, technology integration fees, restructuring activities and other direct costs related to the purchase and integration of acquired entities. It also includes retention equity and deferred equity compensation when they are agreed upon as part of the purchase price of the transaction but are required to be recognized as expense post-combination. We have excluded these amounts and the related tax impacts as the expenses are recognized for a limited duration and do not reflect the underlying performance of our business.
- Indirect taxes. During the three and six months ended March 31, 2021, we recognized a one-time charge within general and administrative expense of $152 million, before tax. Net of the related income tax benefit of $40 million, determined by applying applicable tax rates, non-GAAP net income increased by $112 million. This charge is to record our estimate of probable additional indirect taxes, related to prior periods, for which we could be liable as a result of certain changes in applicable law. This one-time charge is not representative of our ongoing operations.
10
Visa Inc. Reconciliation of Non-GAAP Financial Results - continued (unaudited)
Non-GAAP operating expense, non-operating income (expense), income tax provision, effective income tax rate, net income and diluted earnings per share should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with U.S. GAAP. The following tables reconcile our as-reported financial measures, calculated in accordance with U.S. GAAP, to our respective non-GAAP financial measures for the three and six months ended March 31, 2021 and 2020.
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non- | Effective | Diluted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating | operating | Income Tax | Net | Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income | Income Tax | Per | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses | (Expense) | Provision | Rate(1) | Income | Share(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As reported | $ | 2,148 | $ | 47 | $ | 602 | 16.6 | % | $ | 3,026 | $ | 1.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Gains) Losses on equity investments, net | - | (156) | (35) | (121) | (0.05) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | (13) | - | 3 | 10 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related costs | (5) | - | 1 | 4 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indirect taxes | (152) | - | 40 | 112 | 0.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 1,978 | $ | (109) | $ | 611 | 16.8 % | $ | 3,031 | $ | 1.38 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non- | Effective | Diluted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating | operating | Income Tax | Net | Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income | Income Tax | Per | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses | (Expense) | Provision | Rate(1) | Income | Share(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As reported | $ | 3,991 | $ | (49) | $ | 1,224 | 16.6 | % | $ | 6,152 | $ | 2.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Gains) Losses on equity investments, net | - | (172) | (39) | (133) | (0.06) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | (25) | - | 6 | 19 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related costs | (8) | - | 2 | 6 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indirect taxes | (152) | - | 40 | 112 | 0.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 3,806 | $ | (221) | $ | 1,233 | 16.7 % | $ | 6,156 | $ | 2.80 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non- | Effective | Diluted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating | operating | Income Tax | Net | Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income | Income Tax | Per | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses | (Expense) | Provision | Rate(1) | Income | Share(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As reported | $ | 1,930 | $ | (95) | $ | 745 | 19.4 % | $ | 3,084 | $ | 1.38 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Gains) Losses on equity investments, net | - | 2 | - | 2 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | (11) | - | 2 | 9 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related costs | (5) | - | 2 | 3 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 1,914 | $ | (93) | $ | 749 | 19.5 % | $ | 3,098 | $ | 1.39 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non- | Effective | Diluted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating | operating | Income Tax | Net | Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income | Income Tax | Per | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses | (Expense) | Provision | Rate(1) | Income | Share(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As reported | $ | 3,968 | $ | (137) | $ | 1,447 | 18.5 | % | $ | 6,356 | $ | 2.85 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Gains) Losses on equity investments, net | - | (11) | (3) | (8) | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | (22) | - | 5 | 17 | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related costs | (7) | - | 2 | 5 | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $ | 3,939 | $ | (148) | $ | 1,451 | 18.6 | % | $ | 6,370 | $ | 2.85 | ||||||||||||||||||||||||||||||||||||||||||||||||||
- Figures in the table may not recalculate exactly due to rounding. Effective income tax rate, diluted earnings per share and their respective totals are calculated based on unrounded numbers.
11
Operational Performance Data
The tables below provide information regarding the available operational results for the 3 months ended March 31, 2021, as well as the prior four quarterly reporting periods and the 12 months ended March 31, 2021 and 2020, for cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands.
1. Branded Volume and Transactions
The tables present regional total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume and transactions for all periods. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.
For the 3 Months Ended March 31, 2021 | ||||||||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | ||||||||||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions Accounts | Cards | |||||||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||||||||||||
All Visa Credit & Debit | ||||||||||||||||||||||||||||
Asia Pacific | $570 | 4.6% | (0.9%) | $474 | 8.5% | 1.9% | 8,071 | $95 | (11.5%) | (13.1%) | 809 | 3 | 4 | |||||||||||||||
Canada | 74 | 11.6% | 5.1% | 67 | 11.0% | 4.6% | 970 | 7 | 18.0% | 11.2% | 8 | 63 | 62 | |||||||||||||||
CEMEA | 306 | 5.3% | 10.4% | 155 | 18.5% | 26.3% | 6,592 | 151 | (5.5%) | (2.1%) | 1,036 | 3 | 3 | |||||||||||||||
LAC | 220 | 0.4% | 10.8% | 111 | 9.9% | 22.6% | 4,277 | 110 | (7.7%) | 1.0% | 1,002 | 2 | 2 | |||||||||||||||
US | 1,315 | 17.2% | 17.2% | 1,157 | 17.7% | 17.7% | 19,119 | 158 | 13.5% | 13.5% | 815 | 6 | 6 | |||||||||||||||
Europe | 558 | 4.4% | (1.9%) | 459 | 9.5% | 2.4% | 11,621 | 99 | (14.2%) | (17.7%) | 557 | 19 | 22 | |||||||||||||||
Visa Inc. | 3,043 | 9.5% | 8.2% | 2,423 | 13.7% | 11.5% | 50,651 | 620 | (4.2%) | (2.9%) | 4,227 | 96 | 101 | |||||||||||||||
Visa Credit Programs | ||||||||||||||||||||||||||||
US | $508 | 0.1% | 0.1% | $500 | 1.6% | 1.6% | 5,744 | $8 | (46.6%) | (46.6%) | 10 | - | - | |||||||||||||||
International | 681 | 2.0% | (1.6%) | 643 | 3.0% | (0.7%) | 11,131 | 38 | (12.1%) | (14.9%) | 146 | 976 | 1,124 | |||||||||||||||
Visa Inc. | 1,190 | 1.2% | (0.9%) | 1,143 | 2.4% | 0.3% | 16,875 | 46 | (21.0%) | (22.8%) | 156 | 976 | 1,124 | |||||||||||||||
Visa Debit Programs | ||||||||||||||||||||||||||||
US | $806 | 31.3% | 31.3% | $657 | 33.9% | 33.9% | 13,375 | $150 | 20.8% | 20.8% | 806 | - | - | |||||||||||||||
International | 1,047 | 6.0% | 4.9% | 623 | 19.0% | 14.6% | 20,401 | 424 | (8.7%) | (6.7%) | 3,266 | 2,057 | 2,244 | |||||||||||||||
Visa Inc. | 1,854 | 15.7% | 15.0% | 1,280 | 26.2% | 23.8% | 33,776 | 574 | (2.5%) | (0.8%) | 4,072 | 2,057 | 2,244 | |||||||||||||||
For the 3 Months Ended December 31, 2020 | ||||||||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | ||||||||||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions Accounts | Cards | |||||||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||||||||||||
All Visa Credit & Debit | ||||||||||||||||||||||||||||
Asia Pacific | $592 | (5.9%) | (9.3%) | $494 | (3.4%) | (7.6%) | 8,446 | $98 | (17.0%) | (16.7%) | 857 | 897 | 990 | |||||||||||||||
Canada | 81 | 2.3% | 1.2% | 75 | 1.4% | 0.4% | 1,079 | 7 | 12.6% | 11.4% | 8 | 78 | 84 | |||||||||||||||
CEMEA | 315 | (1.9%) | 6.4% | 155 | 8.7% | 20.4% | 6,668 | 161 | (10.3%) | (4.3%) | 1,116 | 365 | 369 | |||||||||||||||
LAC | 239 | (5.6%) | 8.3% | 116 | 0.1% | 16.2% | 4,446 | 123 | (10.4%) | 1.9% | 1,083 | 492 | 532 | |||||||||||||||
US | 1,283 | 7.0% | 7.0% | 1,140 | 8.1% | 8.1% | 19,463 | 143 | (1.3%) | (1.3%) | 767 | 831 | 1,040 | |||||||||||||||
Europe | 607 | 1.9% | (0.1%) | 496 | 7.4% | 5.0% | 11,449 | 111 | (17.0%) | (17.8%) | 650 | 528 | 575 | |||||||||||||||
Visa Inc. | 3,118 | 1.3% | 2.0% | 2,475 | 4.9% | 4.7% | 51,551 | 642 | (10.7%) | (7.2%) | 4,480 | 3,192 | 3,592 | |||||||||||||||
Visa Credit Programs | ||||||||||||||||||||||||||||
US | $542 | (4.6%) | (4.6%) | $535 | (3.4%) | (3.4%) | 6,309 | $7 | (54.5%) | (54.5%) | 10 | 278 | 353 | |||||||||||||||
International | 721 | (7.4%) | (8.7%) | 680 | (6.8%) | (8.1%) | 11,594 | 40 | (16.7%) | (16.8%) | 158 | 713 | 803 | |||||||||||||||
Visa Inc. | 1,263 | (6.3%) | (7.0%) | 1,216 | (5.3%) | (6.1%) | 17,902 | 47 | (25.3%) | (25.4%) | 168 | 992 | 1,156 | |||||||||||||||
Visa Debit Programs | ||||||||||||||||||||||||||||
US | $741 | 17.4% | 17.4% | $605 | 20.7% | 20.7% | 13,155 | $136 | 4.5% | 4.5% | 757 | 553 | 687 | |||||||||||||||
International | 1,115 | 1.2% | 4.3% | 655 | 13.9% | 15.0% | 20,494 | 460 | (12.7%) | (8.0%) | 3,555 | 1,648 | 1,749 | |||||||||||||||
Visa Inc. | 1,855 | 7.1% | 9.1% | 1,260 | 17.1% | 17.7% | 33,649 | 596 | (9.3%) | (5.4%) | 4,312 | 2,201 | 2,436 |
12
For the 3 Months Ended September 30, 2020 | |||||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | |||||||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions Accounts | Cards | ||||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | |||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||
Asia Pacific | $545 | (10.6%) | (11.2%) | $452 | (8.4%) | (9.6%) | 8,007 | $93 | (19.9%) | (18.4%) | 819 | 894 | 985 | ||||||||||||
Canada | 75 | (3.6%) | (2.6%) | 69 | (3.5%) | (2.4%) | 1,056 | 6 | (5.1%) | (4.1%) | 8 | 75 | 82 | ||||||||||||
CEMEA | 301 | (2.3%) | 4.3% | 141 | 6.2% | 15.5% | 6,422 | 159 | (8.8%) | (3.9%) | 1,120 | 358 | 358 | ||||||||||||
LAC | 201 | (16.3%) | 0.1% | 95 | (12.1%) | 6.5% | 3,652 | 106 | (19.7%) | (5.0%) | 975 | 471 | 511 | ||||||||||||
US | 1,262 | 8.0% | 8.0% | 1,096 | 7.4% | 7.4% | 18,863 | 165 | 11.8% | 11.8% | 813 | 808 | 997 | ||||||||||||
Europe | 611 | 5.6% | 3.3% | 495 | 12.1% | 9.0% | 11,680 | 116 | (15.2%) | (15.5%) | 734 | 524 | 570 | ||||||||||||
Visa Inc. | 2,995 | 0.4% | 1.9% | 2,349 | 3.5% | 4.1% | 49,680 | 646 | (9.5%) | (5.4%) | 4,470 | 3,130 | 3,502 | ||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||
US | $500 | (8.7%) | (8.7%) | $493 | (7.4%) | (7.4%) | 5,865 | $6 | (55.9%) | (55.9%) | 10 | 277 | 343 | ||||||||||||
International | 667 | (12.5%) | (11.6%) | 628 | (11.7%) | (10.7%) | 10,993 | 39 | (24.2%) | (23.6%) | 163 | 713 | 798 | ||||||||||||
Visa Inc. | 1,167 | (10.9%) | (10.4%) | 1,121 | (9.9%) | (9.3%) | 16,858 | 45 | (31.2%) | (30.8%) | 173 | 990 | 1,141 | ||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||
US | $762 | 22.7% | 22.7% | $603 | 23.6% | 23.6% | 12,998 | $159 | 19.2% | 19.2% | 803 | 531 | 653 | ||||||||||||
International | 1,066 | 1.4% | 4.8% | 624 | 16.4% | 17.1% | 19,824 | 442 | (14.2%) | (8.8%) | 3,494 | 1,609 | 1,707 | ||||||||||||
Visa Inc. | 1,828 | 9.3% | 11.6% | 1,227 | 19.8% | 20.2% | 32,822 | 601 | (7.3%) | (2.8%) | 4,297 | 2,140 | 2,361 | ||||||||||||
For the 3 Months Ended June 30, 2020 | |||||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | |||||||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions Accounts | Cards | ||||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | |||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||
Asia Pacific | $476 | (20.9%) | (18.7%) | $396 | (18.1%) | (16.1%) | 7,047 | $80 | (32.1%) | (29.8%) | 701 | 895 | 988 | ||||||||||||
Canada | 63 | (15.6%) | (12.3%) | 56 | (18.2%) | (15.0%) | 845 | 7 | 15.6% | 20.1% | 7 | 74 | 81 | ||||||||||||
CEMEA | 238 | (19.5%) | (13.8%) | 108 | (12.3%) | (4.4%) | 4,954 | 130 | (24.7%) | (20.3%) | 905 | 354 | 354 | ||||||||||||
LAC | 162 | (30.7%) | (14.4%) | 72 | (30.3%) | (12.7%) | 2,932 | 89 | (31.0%) | (15.6%) | 841 | 462 | 501 | ||||||||||||
US | 1,092 | (6.5%) | (6.5%) | 950 | (6.9%) | (6.9%) | 16,122 | 142 | (3.2%) | (3.2%) | 709 | 803 | 995 | ||||||||||||
Europe | 460 | (18.2%) | (14.8%) | 371 | (13.6%) | (10.4%) | 8,787 | 89 | (33.0%) | (29.5%) | 550 | 517 | 563 | ||||||||||||
Visa Inc. | 2,491 | (15.1%) | (12.0%) | 1,954 | (12.4%) | (9.9%) | 40,686 | 537 | (23.9%) | (18.8%) | 3,713 | 3,105 | 3,482 | ||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||
US | $424 | (21.7%) | (21.7%) | $417 | (21.0%) | (21.0%) | 4,903 | $7 | (49.5%) | (49.5%) | 8 | 275 | 340 | ||||||||||||
International | 563 | (24.0%) | (20.5%) | 529 | (23.4%) | (19.8%) | 9,306 | 33 | (32.7%) | (29.6%) | 130 | 710 | 797 | ||||||||||||
Visa Inc. | 987 | (23.0%) | (21.0%) | 946 | (22.3%) | (20.3%) | 14,209 | 41 | (36.5%) | (34.2%) | 138 | 985 | 1,136 | ||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||
US | $667 | 6.8% | 6.8% | $532 | 8.2% | 8.2% | 11,218 | $135 | 1.8% | 1.8% | 701 | 528 | 656 | ||||||||||||
International | 837 | (18.6%) | (12.5%) | 475 | (8.5%) | (2.7%) | 15,259 | 362 | (29.0%) | (22.6%) | 2,874 | 1,593 | 1,689 | ||||||||||||
Visa Inc. | 1,504 | (9.0%) | (4.8%) | 1,007 | (0.4%) | 2.7% | 26,477 | 497 | (22.6%) | (17.2%) | 3,575 | 2,121 | 2,345 | ||||||||||||
For the 3 Months Ended March 31, 2020 | |||||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | |||||||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions Accounts | Cards | ||||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | |||||||||||||
All Visa Credit & Debit | |||||||||||||||||||||||||
Asia Pacific | $545 | (8.9%) | (7.2%) | $437 | (8.4%) | (6.3%) | 7,426 | $108 | (11.1%) | (11.1%) | 983 | 892 | 981 | ||||||||||||
Canada | 66 | 2.6% | 3.8% | 61 | 2.1% | 3.2% | 932 | 6 | 9.0% | 10.2% | 11 | 74 | 80 | ||||||||||||
CEMEA | 291 | 8.4% | 8.9% | 131 | 18.5% | 18.7% | 5,558 | 160 | 1.3% | 2.2% | 1,158 | 363 | 360 | ||||||||||||
LAC | 220 | (4.5%) | 7.7% | 101 | (0.4%) | 14.0% | 3,824 | 119 | (7.7%) | 3.0% | 1,108 | 453 | 491 | ||||||||||||
US | 1,122 | 4.8% | 4.8% | 983 | 5.7% | 5.7% | 17,623 | 139 | (0.9%) | (0.9%) | 854 | 788 | 977 | ||||||||||||
Europe | 534 | 1.1% | 3.9% | 419 | 3.4% | 5.9% | 10,348 | 116 | (6.5%) | (3.0%) | 815 | 516 | 565 | ||||||||||||
Visa Inc. | 2,778 | 0.6% | 2.5% | 2,131 | 2.3% | 3.8% | 45,712 | 647 | (4.5%) | (1.8%) | 4,928 | 3,085 | 3,456 | ||||||||||||
Visa Credit Programs | |||||||||||||||||||||||||
US | $508 | 4.0% | 4.0% | $493 | 4.0% | 4.0% | 5,943 | $15 | 2.8% | 2.8% | 14 | 276 | 340 | ||||||||||||
International | 668 | (6.4%) | (3.9%) | 624 | (6.3%) | (3.8%) | 10,556 | 44 | (7.7%) | (5.8%) | 183 | 712 | 802 | ||||||||||||
Visa Inc. | 1,175 | (2.2%) | (0.7%) | 1,117 | (2.0%) | (0.6%) | 16,499 | 59 | (5.2%) | (3.8%) | 196 | 988 | 1,142 | ||||||||||||
Visa Debit Programs | |||||||||||||||||||||||||
US | $614 | 5.5% | 5.5% | $490 | 7.4% | 7.4% | 11,681 | $124 | (1.4%) | (1.4%) | 840 | 512 | 637 | ||||||||||||
International | 988 | 1.2% | 4.6% | 524 | 7.6% | 10.5% | 17,533 | 464 | (5.1%) | (1.6%) | 3,891 | 1,586 | 1,676 | ||||||||||||
Visa Inc. | 1,603 | 2.8% | 5.0% | 1,014 | 7.5% | 9.0% | 29,213 | 589 | (4.4%) | (1.6%) | 4,731 | 2,097 | 2,314 |
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For the 12 Months Ended March 31, 2021 | ||||||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | ||||||||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions Accounts | Cards | |||||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||||||||||
All Visa Credit & Debit | ||||||||||||||||||||||||||
Asia Pacific | $2,182 | (8.5%) | (10.1%) | $1,817 | (5.7%) | (7.9%) | 31,572 | $365 | (20.3%) | (19.5%) | 3,186 | |||||||||||||||
Canada | 293 | (1.6%) | (2.1%) | 267 | (2.6%) | (3.1%) | 3,949 | 26 | 10.0% | 9.4% | 31 | |||||||||||||||
CEMEA | 1,161 | (4.6%) | 1.9% | 559 | 5.6% | 14.9% | 24,636 | 602 | (12.4%) | (7.7%) | 4,177 | |||||||||||||||
LAC | 823 | (13.1%) | 1.6% | 394 | (8.0%) | 8.8% | 15,307 | 429 | (17.3%) | (4.2%) | 3,901 | |||||||||||||||
US | 4,951 | 6.3% | 6.3% | 4,343 | 6.5% | 6.5% | 73,567 | 608 | 5.1% | 5.1% | 3,104 | |||||||||||||||
Europe | 2,237 | (1.6%) | (3.1%) | 1,821 | 3.9% | 1.8% | 43,538 | 416 | (20.0%) | (20.0%) | 2,491 | |||||||||||||||
Visa Inc. | 11,646 | (1.1%) | 0.1% | 9,200 | 2.4% | 2.6% | 192,568 | 2,446 | (12.2%) | (8.6%) | 16,891 | |||||||||||||||
Visa Credit Programs | ||||||||||||||||||||||||||
US | $1,975 | (8.8%) | (8.8%) | $1,946 | (7.6%) | (7.6%) | 22,820 | $28 | (51.6%) | (51.6%) | 38 | |||||||||||||||
International | 2,631 | (10.8%) | (10.6%) | 2,480 | (10.0%) | (9.8%) | 43,023 | 151 | (21.8%) | (21.3%) | 597 | |||||||||||||||
Visa Inc. | 4,606 | (9.9%) | (9.8%) | 4,427 | (9.0%) | (8.9%) | 65,844 | 179 | (28.7%) | (28.3%) | 635 | |||||||||||||||
Visa Debit Programs | ||||||||||||||||||||||||||
US | $2,976 | 19.5% | 19.5% | $2,397 | 21.6% | 21.6% | 50,747 | $580 | 11.5% | 11.5% | 3,067 | |||||||||||||||
International | 4,065 | (2.5%) | 0.6% | 2,377 | 10.4% | 11.4% | 75,978 | 1,687 | (16.3%) | (11.5%) | 13,189 | |||||||||||||||
Visa Inc. | 7,041 | 5.7% | 7.8% | 4,774 | 15.7% | 16.3% | 126,725 | 2,267 | (10.6%) | (6.6%) | 16,256 | |||||||||||||||
For the 12 Months Ended March 31, 2020 | ||||||||||||||||||||||||||
Total | Growth | Growth | Payments | Growth | Growth | Payments | Cash | Growth | Growth | Cash | ||||||||||||||||
Volume | (Nominal | (Constant | Volume | (Nominal | (Constant | Transactions | Volume | (Nominal | (Constant | Transactions Accounts | Cards | |||||||||||||||
($ billions) | USD) | USD) | ($ billions) | USD) | USD) | (millions) | ($ billions) | USD) | USD) | (millions) | (millions) | (millions) | ||||||||||||||
All Visa Credit & Debit | ||||||||||||||||||||||||||
Asia Pacific | $2,385 | (1.7%) | 0.1% | $1,926 | (0.3%) | 2.1% | 31,049 | $459 | (7.3%) | (8.0%) | 4,033 | 892 | 981 | |||||||||||||
Canada | 298 | 4.3% | 5.8% | 274 | 4.1% | 5.6% | 4,045 | 24 | 6.8% | 8.5% | 45 | 74 | 80 | |||||||||||||
CEMEA | 1,216 | 9.1% | 9.6% | 529 | 21.5% | 21.5% | 21,700 | 687 | 1.2% | 2.2% | 4,939 | 363 | 360 | |||||||||||||
LAC | 947 | (0.5%) | 8.3% | 429 | 5.1% | 16.0% | 15,378 | 519 | (4.7%) | 2.8% | 4,755 | 453 | 491 | |||||||||||||
US | 4,656 | 6.7% | 6.7% | 4,078 | 7.6% | 7.6% | 74,047 | 578 | 1.2% | 1.2% | 3,668 | 788 | 977 | |||||||||||||
Europe | 2,272 | 1.3% | 5.2% | 1,752 | 4.1% | 7.8% | 42,916 | 520 | (7.3%) | (2.9%) | 3,780 | 516 | 565 | |||||||||||||
Visa Inc. | 11,775 | 3.4% | 5.3% | 8,989 | 5.6% | 7.3% | 189,135 | 2,786 | (3.0%) | (0.7%) | 21,219 | 3,085 | 3,456 | |||||||||||||
Visa Credit Programs | ||||||||||||||||||||||||||
US | $2,166 | 6.1% | 6.1% | $2,107 | 6.2% | 6.2% | 25,695 | $58 | 2.7% | 2.7% | 60 | 276 | 340 | |||||||||||||
International | 2,949 | 0.4% | 3.3% | 2,756 | 0.7% | 3.7% | 44,162 | 193 | (4.4%) | (2.0%) | 842 | 712 | 802 | |||||||||||||
Visa Inc. | 5,114 | 2.7% | 4.5% | 4,864 | 3.0% | 4.7% | 69,857 | 251 | (2.8%) | (0.9%) | 902 | 988 | 1,142 | |||||||||||||
Visa Debit Programs | ||||||||||||||||||||||||||
US | $2,491 | 7.3% | 7.3% | $1,971 | 9.1% | 9.1% | 48,352 | $520 | 1.1% | 1.1% | 3,608 | 512 | 637 | |||||||||||||
International | 4,169 | 2.1% | 5.3% | 2,154 | 8.5% | 11.8% | 70,926 | 2,015 | (4.0%) | (1.2%) | 16,709 | 1,586 | 1,676 | |||||||||||||
Visa Inc. | 6,660 | 4.0% | 6.0% | 4,125 | 8.8% | 10.5% | 119,278 | 2,535 | (3.0%) | (0.7%) | 20,317 | 2,097 | 2,314 |
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2. Cross-Border Volume
The table below represents cross-border volume growth for cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant country.
Total | Total | Ex. Intra-Europe(1) | |
Growth | Growth | Growth | |
(Nominal | (Constant | (Constant | |
Period | USD) | USD) | USD) |
3 Months Ended | |||
Mar 31, 2021 | (6%) | (11%) | (21%) |
Dec 31, 2020 | (18%) | (21%) | (33%) |
Sep 30, 2020 | (28%) | (29%) | (41%) |
Jun 30, 2020 | (38%) | (37%) | (47%) |
Mar 31, 2020 | (4%) | (2%) | (4%) |
12 Months Ended | |||
Mar 31, 2021 | (23%) | (25%) | (36%) |
- Cross-bordervolumes excluding transactions within Europe drive our international transaction revenues.
3. Visa Processed Transactions
The table below represents transactions using cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands processed on Visa's networks.
Processed | ||
Transactions | ||
Period | (millions) | Growth |
3 Months Ended | ||
Mar 31, 2021 | 37,644 | 8% |
Dec 31, 2020 | 39,213 | 4% |
Sep 30, 2020 | 37,448 | 3% |
Jun 30, 2020 | 30,676 | (13%) |
Mar 31, 2020 | 34,941 | 7% |
12 Months Ended | ||
Mar 31, 2021 | 144,981 | 0% |
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Footnote
Payments volume, including Visa Direct volume, represents the aggregate dollar amount of purchases made with cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume for the relevant period, and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks, but excludes proprietary PLUS volume. Total volume represents payments and cash volume.
Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa's signature based and Interlink (PIN) debit programs.
The data presented is based on transactions processed by Visa and reported by Visa's financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable.
On occasion, previously presented information may be updated. Prior period updates, if any, are not material.
Visa's CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. International includes Asia Pacific, Canada, CEMEA, Europe and LAC.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported ("Nominal USD"). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information ("Constant USD"). This presentation represents Visa's historical methodology which may be subject to review and refinement.
Figures in the tables may not recalculate exactly due to rounding. The totals and percentages are calculated based on unrounded numbers.
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Disclaimer
Visa Inc. published this content on 27 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2021 20:12:11 UTC.