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Dec 31, 2019
Visa Q1 2020 Earnings Report
Visa's Q1 2020 results reflected stable business growth and successful partnership building.
Key Takeaways
Visa Inc. reported a 10% increase in net revenues, reaching $6.1 billion, and GAAP and non-GAAP net income of $3.3 billion, or $1.46 per share, driven by growth in payments volume, cross-border volume, and processed transactions. The company also announced a new $9.5 billion share repurchase program and the acquisition of Plaid.
Net revenues increased by 10% to $6.1 billion.
GAAP and non-GAAP net income reached $3.3 billion, or $1.46 per share.
Payments volume, cross-border volume, and processed transactions showed strong growth.
A new $9.5 billion share repurchase program was authorized by the board of directors.
Visa
Visa
Visa Revenue by Segment
Forward Guidance
Visa provided financial outlook for fiscal full-year 2020, excluding the impact of the Plaid acquisition.
Positive Outlook
- Low double-digit growth in annual net revenues on a constant-dollar basis.
- Mid-to-high single-digit increase in annual operating expense growth.
- High end of 22.5% to 23.5% range for client incentives as a percentage of gross revenues.
- Effective tax rate of 19% – 19.5%.
- Mid-teens growth in annual diluted class A common stock earnings per share.
Challenges Ahead
- Approximately 1% decrease in annual net revenues due to foreign currency impact.
- Approximately 0.5% decrease in annual net revenues due to acquisition impact.
- Approximately 1% decrease in annual operating expense growth due to foreign currency impact.
- 3% – 4% increase in annual operating expense growth due to acquisition impact.
- Approximately 1% decrease in annual diluted class A common stock earnings per share growth due to foreign currency impact.