Visa Inc (V) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Expansions

GuruFocus News
4 min read

In This Article:

  • Net Revenue: $9.6 billion, up 12% year-over-year.

  • EPS: Up 16% year-over-year.

  • Payment Volume Growth: 8% year-over-year in constant dollars.

  • US Payment Volume Growth: 5% year-over-year.

  • International Payment Volume Growth: 10% year-over-year.

  • Cross-Border Volume Growth (excluding intra-Europe): 13% year-over-year.

  • Processed Transactions Growth: 10% year-over-year.

  • New Flows Revenue Growth: 22% year-over-year in constant dollars.

  • Visa Direct Transactions Growth: 38% year-over-year.

  • Commercial Payments Volume: $1.7 trillion, with 5% growth year-over-year.

  • Value Added Services Revenue Growth: 22% year-over-year in constant dollars.

  • Operating Expenses Growth: 11% year-over-year.

  • Stock Buyback: Approximately $5.8 billion in Q4.

  • Dividends Distributed: Over $1 billion in Q4.

  • Remaining Buyback Authorization: $13.1 billion at the end of September.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Visa Inc (NYSE:V) reported strong financial results for the fourth quarter, with net revenue of $9.6 billion, up 12% year-over-year, and EPS up 16%.

  • The company saw significant growth in cross-border volume, excluding intra-Europe, which rose 13%, and processed transactions grew 10% year-over-year.

  • Visa Inc (NYSE:V) continues to expand its consumer payments business, with over 4.6 billion credentials, up 7% year-over-year, and 11.5 billion tokens, with more than 30% of total transactions tokenized.

  • The company has made significant strides in new flows, with revenue growing 22% year-over-year in constant dollars, and Visa Direct transactions increasing by 38%.

  • Visa Inc (NYSE:V) has successfully renewed and expanded several key partnerships globally, including agreements with major clients like Grupo Pramerica, SMCC, Alrajhi, and Standard Chartered Bank.

Negative Points

  • Visa Inc (NYSE:V) faces regulatory challenges, including a lawsuit by the Department of Justice, which the company believes is meritless.

  • The company experienced slower growth in Asia Pacific payments volume, primarily due to macroeconomic conditions, particularly in Mainland China.

  • Cross-border travel volume growth was lower than expected, mainly due to challenges in Asia Pacific travel corridors.

  • Visa Inc (NYSE:V) anticipates a significant increase in client incentives in fiscal 2025, which could impact net revenue growth.

  • The company expects a step down in adjusted net revenue growth from Q4 2024 to Q1 2025 due to various factors, including increased incentives and the timing of pricing actions.

Recommended Stories