On April 23, 2024, Visa Inc (V, Financial) released its 8-K filing, announcing its fiscal second quarter 2024 results. The company reported a GAAP net income of $4.7 billion, or $2.29 per share, and a non-GAAP net income of $5.1 billion, or $2.51 per share. These figures align closely with analyst expectations, which estimated earnings per share at $2.44 and net income at approximately $4943.47 million. Visa's reported revenue of $8.8 billion exceeded the forecasted $8623.30 million, marking a significant 10% increase on both a nominal and constant-dollar basis.
Visa, the world's largest payment processor, demonstrated robust performance in fiscal 2022 with over $14 trillion processed across more than 200 countries. The company's ability to handle over 65,000 transactions per second underscores its operational excellence and strategic positioning in the global payments landscape.
Quarterly Performance Highlights
The fiscal second quarter saw Visa achieving a 10% year-over-year growth in GAAP net income and a 12% increase in GAAP earnings per share. Non-GAAP figures were even more impressive, with net income and earnings per share growing by 17% and 20%, respectively. This performance was driven by an 8% increase in overall payments volume and a significant 16% rise in cross-border volume, excluding intra-Europe transactions.
Processed transactions also showed a healthy increase, rising by 11% to reach 55.5 billion transactions for the quarter. Service revenue rose by 7% to $4.0 billion, while data processing and international transaction revenues increased by 12% and 9%, respectively. Notably, other revenue categories surged by 37%, reflecting Visa's diversified growth avenues.
Operational and Strategic Developments
Visa's operational expenses for the quarter were $3.4 billion, marking a 29% increase primarily due to litigation provisions and general administrative expenses. Despite these costs, the company's strategic initiatives continue to bear fruit. Recent developments include the acquisition of Pismo, enhancing Visa's cloud-native banking and card-issuer processing capabilities, and a landmark settlement with U.S. merchants to lower and cap credit interchange rates until 2030.
Additionally, Visa's commitment to shareholder returns remained strong with $3.8 billion allocated to share repurchases and dividends. The company repurchased 9.7 million shares at an average cost of $280.80 per share, reflecting confidence in its financial health and future prospects.
Executive Insights
Visa delivered strong results in the second quarter, with net revenue up 10%, GAAP EPS up 12%, and non-GAAP EPS up 20%. Overall payments volume grew 8% and cross-border volume grew 16%, driven by stable consumer spending. As we head into the second half of the year and beyond, we remain focused on the trillions of dollars of opportunity in consumer payments and new flows and on continuing to deepen our partnerships with clients around the world by adding value across our network of networks," said Ryan McInerney, Chief Executive Officer of Visa.
The fiscal second quarter results not only demonstrate Visa's resilience but also its ability to strategically navigate market dynamics and regulatory environments to deliver value to shareholders and customers alike. With a robust balance sheet and a clear strategic direction, Visa is well-positioned to continue its growth trajectory in the evolving digital payments landscape.
Explore the complete 8-K earnings release (here) from Visa Inc for further details.
