On January 25, 2024, Visa Inc (V, Financial) released its 8-K filing, announcing its fiscal first quarter 2024 results. As the world's largest payment processor, Visa's systems are designed to handle over 65,000 transactions per second, and the company operates in more than 200 countries, processing transactions in over 160 currencies. The fiscal report highlights a 9% increase in net revenues, reaching $8.6 billion, and a significant 17% rise in GAAP net income to $4.9 billion, or $2.39 per share. Non-GAAP net income was also strong at $4.9 billion, or $2.41 per share.
Financial Performance and Key Drivers
Visa's performance in the first quarter reflects a stable growth in payments volume and processed transactions, with a notable strength in cross-border volume growth. According to Ryan McInerney, Chief Executive Officer of Visa Inc, "Our 2024 fiscal year is off to a solid start... Consumer spending remained resilient." The company's focus on consumer payments, new flows, and value-added services is expected to continue driving growth.
Our 2024 fiscal year is off to a solid start. In our first quarter, net revenues grew 9% and GAAP EPS grew 20%, driven by relatively stable growth in overall payments volume and processed transactions, plus strong growth in cross-border volume. Consumer spending remained resilient. Looking ahead, we continue to see significant opportunity across consumer payments, new flows and value-added services."
Payments volume for the quarter ending December 31, 2023, increased by 8% on a constant-dollar basis, while cross-border volume excluding intra-Europe transactions surged by 16%. Processed transactions rose to 57.5 billion, a 9% year-over-year increase. Service revenues climbed by 11% to $3.9 billion, data processing revenues by 14% to $4.4 billion, and international transaction revenues by 8% to $3.0 billion. Other revenues also saw an 18% increase.
Operational Efficiency and Shareholder Returns
Visa's operational efficiency is evident in its reduced GAAP operating expenses, which decreased by 6% primarily due to a lower litigation provision. Non-GAAP operating expenses, however, saw a 7% increase driven by higher personnel expenses. The company's effective tax rate was 19.1% for the quarter.
Visa has been active in returning value to its shareholders, repurchasing 14.0 million shares at an average cost of $239.45 per share for a total of $3.4 billion. Additionally, the board declared a quarterly cash dividend of $0.520 per share, payable on March 1, 2024.
Strategic Acquisitions and Corporate Developments
Visa announced the acquisition of a majority interest in Prosa, a leading payments processor in Mexico, and the completion of its acquisition of Pismo, a cloud-native issuer processing and core banking platform. These strategic moves are expected to enhance Visa's processing capabilities and support for emerging payment schemes.
The company's financial outlook remains positive, with a focus on leveraging its global network and expanding its services to drive future growth. Visa's solid start to the fiscal year 2024, with robust revenue and earnings growth, positions it well to navigate the dynamic payments landscape.
For detailed financial figures and additional insights, investors and analysts are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Visa Inc for further details.
