Visa Sees 6% YoY Increase in Net Income for Q1 2023

Visa Inc. (Visa), a world leader in digital payments, facilitating transactions, released its financial results for its fiscal first quarter of 2023, seeing stable growth accross all elements of its business.

• GAAP net income in the fiscal first quarter was $4.2 billion or $1.99 per share, an increase of 6% and 8%, respectively, over prior year's results. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $4.6 billion or $2.18 per share, increases of 17% and 21%, respectively, over prior year's results. GAAP earnings per share growth was approximately 12% 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 24% on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count.

• Net revenues in the fiscal first quarter were $7.9 billion, an increase of 12%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenues increased 15% on a constant-dollar basis.

• Payments volume for the three months ended September 30, 2022, on which fiscal first quarter service revenues are recognized, increased 10% over the prior year on a constant-dollar basis.

• Payments volume for the three months ended December 31, 2022, increased 7% over the prior year on a constant-dollar basis.

• Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, increased 31% on a constant-dollar basis for the three months ended December 31, 2022. Total cross-border volume on a constantdollar basis increased 22% in the quarter.

• Total processed transactions, which represent transactions processed by Visa, for the three months ended December 31, 2022, were 52.5 billion, a 10% increase over the prior year.

• Fiscal first quarter service revenues were $3.5 billion, an increase of 10% 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 6% over the prior year to $3.8 billion. International transaction revenues grew 29% over the prior year to $2.8 billion. Other revenues of $587 million rose 31% over the prior year. Client incentives, a contrarevenue item, were $2.8 billion and represented 26.0% of gross revenues.

• GAAP operating expenses were $2.8 billion for the fiscal first quarter, a 25% increase over the prior year's results, primarily driven by increases in personnel expenses and the litigation provision. Excluding these operating expense items, nonGAAP operating expenses increased 15% over the prior year, primarily driven by increases in personnel and general and administrative expenses.

• GAAP non-operating expense was $113 million for the fiscal first quarter, including $106 million of net equity investment losses. Excluding this item, non-GAAP non-operating expense was $7 million.

• GAAP effective income tax rate was 16.0% for the quarter ended December 31, 2022, including the tax impacts from the non-GAAP items. Excluding these items, the non-GAAP effective income tax rate was 16.5% for the quarter ended December 31, 2022. GAAP and non-GAAP tax rates had a tax benefit related to prior years due to the reassessment of an uncertain tax position as a result of new information obtained during an ongoing tax examination.

• Cash, cash equivalents and investment securities were $18.9 billion at December 31, 2022.

• The weighted-average number of diluted shares of class A common stock outstanding was 2.10 billion for the quarter ended December 31, 2022.