Visa Reports 25% Y/Y Rise in Q2 2022 Net Revenues

Visa Inc. (NYSE: V) today announced its fiscal second quarter 2022 financial results through an earnings release, revealing solid growth across all elements of its business.

Overview of quarterly results:

• GAAP net income in the fiscal second quarter was $3.6 billion or $1.70 per share, an increase of 21% and 23%, respectively, over prior year's results. Current year's results included $127 million of net losses from equity investments, $40 million from the amortization of acquired intangible assets and non-recurring acquisition-related costs, and $60 million from the Russia-Ukraine charges. Prior year's results included $152 million pertaining to a special item for additional indirect taxes, $156 million of net gains from equity investments, and $18 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 $3.8 billion or $1.79 per share, increases of 27% and 30%, respectively, over prior year's results. GAAP earnings per share growth was approximately 23% 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 30% 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 $7.2 billion, an increase of 25%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenues increased approximately 27% on a constant-dollar basis.

• Payments volume for the three months ended December 31, 2021, on which fiscal second quarter service revenues are recognized, increased 20% over the prior year on a constant-dollar basis. Payments volume for the three months ended March 31, 2022, increased 17% over the prior year on a constant-dollar basis.

• Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, increased 47% on a constant-dollar basis for the three months ended March 31, 2022. Total cross-border volume on a constantdollar basis increased 38% in the quarter.

• Total processed transactions, which represent transactions processed by Visa, for the three months ended March 31, 2022, were 44.8 billion, a 19% increase over the prior year.

• Fiscal second quarter service revenues were $3.5 billion, an increase of 24% 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 16% over the prior year to $3.5 billion. International transaction revenues grew 48% over the prior year to $2.2 billion. Other revenues of $474 million rose 21% over the prior year. Client incentives, a contra-revenue item, were $2.5 billion and represented 25.8% of gross revenues.

• GAAP operating expenses were $2.4 billion for the fiscal second quarter, an 11% increase over the prior year's results, primarily driven by increases in personnel and marketing expenses. GAAP operating expenses included the RussiaUkraine charges in the current year, the amortization of acquired intangible assets and non-recurring acquisition-related costs in the current and prior year and the special item related to the additional indirect taxes for the prior year. Excluding these operating expense items, non-GAAP operating expenses increased 16% over the prior year, primarily driven by increases in marketing, personnel and general and administrative expenses.

• GAAP non-operating expense was $260 million for the fiscal second quarter, including $127 million of net equity investment losses. Excluding this item, non-GAAP non-operating expense was $133 million.

• GAAP effective income tax rate was 19.7% for the quarter ended March 31, 2022, including the tax impacts from the nonGAAP items. Excluding these items, the non-GAAP effective income tax rate was 19.6% for the quarter ended March 31, 2022.

• Cash, cash equivalents and investment securities were $15.8 billion at March 31, 2022.

• The weighted-average number of diluted shares of class A common stock outstanding was 2.14 billion for the quarter ended March 31, 2022.