Visa Posts 10% YoY Increase in Net Income in Q4 2022

Visa Inc. (Visa), a world leader in digital payments, facilitating transactions, released its financial results for the fiscal fourth quarter and full-year 2022, showing solid growth accross all elements of its business.

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• GAAP net income in the fiscal fourth quarter was $3.9 billion or $1.86 per share, an increase of 10% and 13%, respectively, over prior year's results. Current year's results included $122 million of net losses from equity investments and $68 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs. Prior year's results included $101 million of net gains from equity investments and $21 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $4.1 billion or $1.93 per share, increases of 16% and 19%, respectively, over prior year's results. GAAP earnings per share growth was approximately 17% 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 23% on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count. 

• Net revenues in the fiscal fourth quarter were $7.8 billion, an increase of 19%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenues increased 23% on a constant-dollar basis. 

• Payments volume for the three months ended June 30, 2022, on which fiscal fourth quarter service revenues are recognized, increased 12% over the prior year on a constant-dollar basis. 

• Payments volume for the three months ended September 30, 2022 increased 10% over the prior year on a constantdollar basis. 

• Cross-border volume excluding transactions within Europe increased 49% on a constant-dollar basis for the three months ended September 30, 2022. 

• Total cross-border volume on a constant-dollar basis increased 36% in the quarter. Total processed transactions, which represent transactions processed by Visa, for the three months ended September 30, 2022, were 50.9 billion, a 12% increase over the prior year. 

• Fiscal fourth quarter service revenues were $3.5 billion, an increase of 11% 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 rose 10% over the prior year to $3.8 billion. International transaction revenues grew 52% over the prior year to $2.9 billion. Other revenues of $551 million rose 13% over the prior year. Client incentives, a contrarevenue item, were $2.9 billion and represented 26.9% of gross revenues. 

• GAAP operating expenses were $2.7 billion for the fiscal fourth quarter, a 20% increase over the prior year's results, primarily driven by increases in personnel and general and administrative expenses. GAAP operating expenses included 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 18% over the prior year, primarily driven by increases in personnel and general and administrative expenses. 

• GAAP non-operating expense was $219 million for the fiscal fourth quarter, including $122 million of net equity investment losses. Excluding this item, non-GAAP non-operating expense was $97 million. 

• GAAP effective income tax rate was 19.1% for the quarter ended September 30, 2022, including the tax impacts from the non-GAAP items. Excluding these items, the non-GAAP effective income tax rate was 19.1% for the quarter ended September 30, 2022. 

• Cash, cash equivalents and investment securities were $20.7 billion at September 30, 2022. 

• The weighted-average number of diluted shares of class A common stock outstanding was 2.12 billion for the quarter ended September 30, 2022.