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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
Revenue by Segment
Service Revenue
CapyFin.comData Processing Revenue
CapyFin.comIntl. Transaction Revenue
CapyFin.comOther Revenue
CapyFin.comClient Incentives Revenue
CapyFin.com 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.