Mastercard (MA, Financial) has released its fourth-quarter and full-year financial results for fiscal year 2024. The company reported a 14% year-over-year increase in Q4 revenue, reaching $7.5 billion, slightly above the market expectation of $7.4 billion. Net profit rose by 20% to $3.3 billion, with adjusted earnings per share (EPS) at $3.82, surpassing analyst predictions of $3.70.
The impressive performance is attributed to robust consumer spending, which boosted transaction volumes. Mastercard's diversification beyond traditional payment networks into areas such as fraud prevention services and global fund flows also contributed to its success. The company's operating profit for Q4 increased by 17% to $3.9 billion, with an operating margin of 52.6%. Global purchase volume grew to $2.11 trillion, aligning with expectations.
Cross-border transaction volume exceeded forecasts, increasing by 20% in local currency terms, above the anticipated 17.5%. For the fiscal year 2024, Mastercard's revenue was $28.2 billion, marking a 12% increase from 2023. Net profit reached $12.9 billion, a 15% year-over-year growth, with adjusted EPS rising 19% to $14.60.
During its first investor day since 2021, Mastercard projected its net revenue to grow annually by a high-end low double-digit percentage (close to 19%) between 2025 and 2027, a rate lower than previous forecasts for 2022 to 2024. The company highlighted growth opportunities in global remittances and expansion in the Chinese market. CEO Michael Miebach emphasized the company's diversified capabilities in payments, services, and solutions, including the acquisition of Recorded Future, as key drivers for long-term growth.
Following the earnings release, Mastercard's stock price rose 1.25% in pre-market trading, reaching $555.64.
