Visa Reports Continued Overall Growth for Q3 2023

Visa Inc. (Visa), a world leader in digital payments, facilitating transactions, released its financial results for the third quarter of 2023 (Q3 2023), reporting continued growth in business.

Results for Q3 2023:

• GAAP net income in the fiscal third quarter was $4.2 billion or $2.00 per share, an increase of 22% and 25%, respectively, over prior year's results. Excluding some items (litigation provision, net gains from equity investments, and acquisition-related costs) and related tax impacts, non-GAAP net income for the quarter was $4.5 billion or $2.16 per share, increases of 7% and 9%, respectively, over prior year's results. GAAP earnings per share growth was approximately 26% 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 11% on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count.

• Net revenues in the fiscal third quarter were $8.1 billion, an increase of 12%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenues increased 13% on a constant-dollar basis.

• Payments volume for the three months ended March 31, 2023, on which fiscal third quarter service revenues are recognized, increased 10% over the prior year on a constant-dollar basis.

• Payments volume for the three months ended June 30, 2023, increased 9% over the prior year on a constant-dollar basis.

• Cross-border volume excluding transactions within Europe increased 22% on a constant-dollar basis for the three months ended June 30, 2023. Total cross-border volume on a constant-dollar basis increased 17% in the quarter.

• Total processed transactions, which represent transactions processed by Visa, for the three months ended June 30, 2023, were 54.0 billion, a 10% increase over the prior year.

• Fiscal third quarter service revenues were $3.7 billion, an increase of 15% 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 15% over the prior year to $4.1 billion. International transaction revenues grew 14% over the prior year to $2.9 billion. Other revenues of $597 million rose 15% over the prior year. Client incentives, a contrarevenue item, were $3.2 billion and represented 28.1% of gross revenues.

• GAAP operating expenses were $3.1 billion for the fiscal third quarter, a 1% decrease over the prior year's results, primarily driven by a decrease in the litigation provision, largely offset by an increase in personnel expenses. GAAP operating expenses included the special item related to the litigation provision associated with the MDL case, the amortization of acquired intangible assets and acquisition-related costs in the current and prior year. Excluding these operating expense items, non-GAAP operating expenses increased 10% over the prior year, primarily driven by an increase in personnel expenses.

• GAAP non-operating income was $122 million for the fiscal third quarter, including $85 million of net equity investment gains. Excluding this item, non-GAAP non-operating income was $37 million.

• GAAP effective income tax rate was 19.2% for the quarter ended June 30, 2023. Excluding the related tax impacts from the non-GAAP items noted above, the non-GAAP effective income tax rate was 19.4% for the quarter ended June 30, 2023.

• Cash, cash equivalents and investment securities were $20.9 billion at June 30, 2023.

• The weighted-average number of diluted shares of class A common stock outstanding was 2.08 billion for the quarter ended June 30, 2023.