Visa Inc. (V) Bundle
A Brief History of Visa Inc.
Visa Inc. (NYSE: V), a leader in global digital payments, has established a robust platform facilitating transactions across more than 200 countries and territories. As of 2024, Visa has reported significant financial growth and strategic developments.
Financial Performance Overview
For the fiscal year ending September 30, 2024, Visa's net revenue reached $35.9 billion, marking a 10% increase compared to the previous year. This growth was primarily driven by an increase in payments volume, cross-border transactions, and processed transactions.
| Metric | FY 2024 | FY 2023 | Year-over-Year Change |
|---|---|---|---|
| Net Revenue | $35.9 billion | $32.7 billion | 10% |
| Payments Volume | 8% growth | 7% growth | 1ppt increase |
| Cross-Border Volume | 15% growth | 14% growth | 1ppt increase |
| Total Processed Transactions | 233.8 billion | 212.6 billion | 10% increase |
Quarterly Performance Highlights
In the fourth quarter of 2024, Visa reported net revenue of $9.6 billion, a 12% increase from the same quarter in the previous year. The GAAP net income for this quarter was $5.3 billion, representing a 14% increase.
| Metric | Q4 2024 | Q4 2023 | Year-over-Year Change |
|---|---|---|---|
| Net Revenue | $9.6 billion | $8.6 billion | 12% |
| GAAP Net Income | $5.3 billion | $4.7 billion | 14% |
| GAAP Earnings Per Share | $2.65 | $2.27 | 17% |
Key Business Drivers
Visa's growth trajectory is supported by several key business drivers:
- Payments Volume: Increased by 8% over the fiscal year.
- Cross-Border Transactions: Excluding intra-Europe transactions, grew by 15%.
- Processed Transactions: Total transactions processed increased by 10%.
Strategic Developments
In September 2024, Visa announced a definitive agreement to acquire Featurespace, a company specializing in real-time AI payments protection technology. This acquisition aims to enhance Visa's capabilities in preventing payments fraud and mitigating financial crime risks.
Shareholder Returns
Visa continued to demonstrate its commitment to returning value to shareholders, repurchasing approximately 62 million shares of Class A common stock at an average cost of $266.97 per share during the fiscal year. Additionally, the board declared an increase in the quarterly cash dividend to $0.590 per share.
| Metric | FY 2024 |
|---|---|
| Total Shares Repurchased | 62 million |
| Average Cost per Share | $266.97 |
| Quarterly Dividend per Share | $0.590 |
Legal and Regulatory Environment
Visa faced legal challenges in 2024, including a complaint filed by the U.S. Department of Justice alleging violations of the Sherman Act. The company has stated its intention to vigorously defend against these claims, asserting that the lawsuit is without merit.
Overall, Visa's performance in 2024 reflects a strong recovery in the global payments landscape, driven by technological advancements and strategic acquisitions, positioning the company for continued growth in the coming years.
A Who Owns Visa Inc. (V)
Current Shareholder Structure
As of 2024, Visa Inc. (NYSE: V) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders are typically institutional investors that hold significant positions in the company.
| Shareholder Type | Percentage of Ownership | Notable Shareholders |
|---|---|---|
| Institutional Investors | 80.3% | BlackRock, Vanguard Group, State Street Corporation |
| Mutual Funds | 10.5% | Fidelity Investments, T. Rowe Price |
| Individual Shareholders | 9.2% | Various retail investors |
Top Institutional Shareholders
The following table details the top institutional shareholders of Visa Inc. as of the end of 2024:
| Institution | Shares Held (Millions) | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 372.5 | 18.4% |
| The Vanguard Group | 358.0 | 17.6% |
| State Street Corporation | 208.5 | 10.2% |
| Fidelity Investments | 105.0 | 5.1% |
| T. Rowe Price Associates | 80.0 | 4.0% |
Class Structure of Visa Inc.
Visa Inc. has multiple classes of stock that affect voting rights and ownership:
| Class | Shares Outstanding (Millions) | Voting Rights |
|---|---|---|
| Class A | 1,733 | 1 vote per share |
| Class B-1 | 125 | 10 votes per share |
| Class B-2 | 120 | 10 votes per share |
| Class C | 10 | No voting rights |
Recent Share Repurchase Activity
Visa Inc. has been active in repurchasing its shares, which affects ownership percentages:
| Period | Shares Repurchased (Millions) | Average Cost per Share (USD) |
|---|---|---|
| Q4 2024 | 22 | 270.85 |
| Fiscal Year 2024 | 62 | 266.97 |
Dividend Distribution
Visa Inc. has a history of paying dividends to its shareholders, which reflects its commitment to returning value:
| Dividend Type | Amount per Share (USD) | Payment Date |
|---|---|---|
| Quarterly Cash Dividend | 0.590 | December 2, 2024 |
Market Capitalization
As of the end of September 2024, Visa Inc. has a substantial market capitalization:
| Market Capitalization (USD Billions) | Value |
|---|---|
| Total Market Capitalization | ~$556 |
Conclusion on Ownership Dynamics
The ownership dynamics of Visa Inc. reflect a robust institutional presence, with significant holdings by major asset management firms. The class structure allows certain shareholders more influence over corporate governance, while ongoing share repurchase activities demonstrate the company’s commitment to enhancing shareholder value.
Visa Inc. (V) Mission Statement
Visa (NYSE: V) operates as a global leader in digital payments, facilitating transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. The company's mission is to connect the world through the most innovative, convenient, reliable, and secure payments network, enabling individuals, businesses, and economies to thrive. Visa emphasizes that economies which include everyone everywhere uplift everyone everywhere, viewing access as fundamental to the future of money movement.
Financial Performance Overview
As of the fiscal year ending September 30, 2024, Visa reported significant financial metrics:
| Metric | Q4 2024 | Full-Year 2024 |
|---|---|---|
| Net Revenue | $9.6 billion | $35.9 billion |
| GAAP Net Income | $5.3 billion | $19.7 billion |
| GAAP Earnings Per Share (EPS) | $2.65 | $9.73 |
| Non-GAAP Net Income | $5.4 billion | $20.4 billion |
| Non-GAAP EPS | $2.71 | $10.05 |
| Payments Volume Growth | 8% | 8% |
| Cross-Border Volume Growth | 13% | 15% |
| Processed Transactions | 61.5 billion | 233.8 billion |
Key Business Drivers
Visa's growth is driven by several key business metrics:
- Service Revenue: $4.2 billion in Q4 2024, up 8% year-over-year; $16.1 billion for full-year 2024, up 9% year-over-year.
- Data Processing Revenue: $4.6 billion in Q4 2024, up 8% year-over-year; $17.7 billion for full-year 2024, up 11% year-over-year.
- International Transaction Revenue: $3.5 billion in Q4 2024, up 9% year-over-year; $12.7 billion for full-year 2024, up 9% year-over-year.
- Other Revenue: $969 million in Q4 2024, up 30% year-over-year; $3.2 billion for full-year 2024, up 29% year-over-year.
Operating Expenses
Visa's operating expenses for the fiscal year were as follows:
| Expense Type | Q4 2024 | Full-Year 2024 |
|---|---|---|
| Total Operating Expenses | $3.3 billion | $12.3 billion |
| Personnel Expenses | $1.6 billion | $6.3 billion |
| Marketing Expenses | $551 million | $1.6 billion |
| General and Administrative | $424 million | $1.6 billion |
Shareholder Returns and Stock Repurchases
In the fiscal year 2024, Visa executed significant shareholder return initiatives:
- Total Share Repurchases: Approximately 62 million shares at an average cost of $266.97 per share for $16.7 billion.
- Quarterly Cash Dividend: Increased to $0.590 per share, payable on December 2, 2024.
Strategic Initiatives
Visa has focused on expanding its technological capabilities and enhancing security in payment systems:
- Acquisition of Featurespace: Announced on September 26, 2024, to enhance real-time payments protection technology.
The financial data presented reflects Visa's robust operational performance, commitment to innovation, and strategic focus on enhancing shareholder value through disciplined financial management and growth initiatives.
How Visa Inc. (V) Works
Overview of Visa Inc.
Visa Inc. operates as a global payments technology company, facilitating digital payments among consumers, merchants, financial institutions, businesses, and government entities across more than 200 countries and territories. Visa's primary source of revenue is transaction fees from merchants and financial institutions for processing payments.
Financial Performance for Fiscal Year 2024
For the fiscal year ended September 30, 2024, Visa reported significant financial metrics:
| Metric | Value (USD billions) | Year-over-Year Change (%) |
|---|---|---|
| Net Revenue | 35.9 | 10 |
| GAAP Net Income | 19.7 | 14 |
| GAAP Earnings Per Share (EPS) | 9.73 | 17 |
| Non-GAAP Net Income | 20.4 | 12 |
| Non-GAAP EPS | 10.05 | 15 |
Quarterly Financial Highlights (Q4 2024)
In the fourth quarter of 2024, Visa's financials demonstrated robust growth across various metrics:
| Metric | Value (USD billions) | Year-over-Year Change (%) |
|---|---|---|
| Net Revenue | 9.6 | 12 |
| GAAP Net Income | 5.3 | 14 |
| GAAP EPS | 2.65 | 17 |
| Non-GAAP Net Income | 5.4 | 13 |
| Non-GAAP EPS | 2.71 | 16 |
Key Business Drivers
Visa's growth in the fiscal year 2024 was primarily driven by:
- Payments Volume: Increased by 8% year-over-year.
- Cross-Border Volume (excluding intra-Europe): Increased by 15% year-over-year.
- Total Processed Transactions: Increased by 10% year-over-year, totaling 233.8 billion transactions for the year.
Revenue Breakdown
The revenue streams for Visa in fiscal year 2024 were categorized as follows:
| Revenue Category | Value (USD billions) | Year-over-Year Change (%) |
|---|---|---|
| Service Revenue | 16.1 | 9 |
| Data Processing Revenue | 17.7 | 11 |
| International Transaction Revenue | 12.7 | 9 |
| Other Revenue | 3.2 | 29 |
Operating Expenses
Visa reported total operating expenses for the fiscal year 2024 as follows:
| Expense Category | Value (USD billions) | Year-over-Year Change (%) |
|---|---|---|
| Total Operating Expenses | 12.3 | 6 |
| Personnel Expenses | 6.3 | 8 |
| Marketing Expenses | 1.6 | 16 |
| General and Administrative Expenses | 1.6 | 20 |
Balance Sheet Highlights as of September 30, 2024
Visa's consolidated balance sheet revealed the following key figures:
| Asset Category | Value (USD millions) |
|---|---|
| Total Assets | 94,511 |
| Cash and Cash Equivalents | 11,975 |
| Investment Securities | 3,200 |
| Goodwill | 18,941 |
| Liability Category | Value (USD millions) |
|---|---|
| Total Liabilities | 55,374 |
| Long-term Debt | 20,836 |
| Total Current Liabilities | 26,517 |
Shareholder Returns
During fiscal 2024, Visa returned value to its shareholders through dividends and share repurchases:
- Dividends Paid: $4.2 billion
- Share Repurchases: Approximately $16.7 billion, repurchasing 62 million shares at an average cost of $266.97 per share.
Recent Developments
On September 26, 2024, Visa announced an agreement to acquire Featurespace, a company specializing in AI-driven payments protection technology. This acquisition is aimed at enhancing Visa's fraud prevention capabilities and is expected to close in fiscal 2025.
How Visa Inc. (V) Makes Money
Revenue Streams
Visa Inc. generates revenue primarily through four main categories:
- Service Revenue: $16.1 billion for the fiscal year 2024, an increase of 9% year-over-year.
- Data Processing Revenue: $17.7 billion for the fiscal year 2024, an increase of 11% year-over-year.
- International Transaction Revenue: $12.7 billion for the fiscal year 2024, up 9% year-over-year.
- Other Revenue: $3.2 billion for the fiscal year 2024, a rise of 29% year-over-year.
| Revenue Category | 2024 Revenue (in billions) | Year-over-Year Growth (%) |
|---|---|---|
| Service Revenue | $16.1 | 9% |
| Data Processing Revenue | $17.7 | 11% |
| International Transaction Revenue | $12.7 | 9% |
| Other Revenue | $3.2 | 29% |
Payments Volume
Visa's business model is heavily reliant on the volume of payments processed. The total payments volume for the fiscal year 2024 was $14.2 trillion, a year-over-year increase of 8% on a constant-dollar basis. This growth is attributed to increased consumer spending and the expansion of digital payments.
Cross-Border Volume
Cross-border transactions, which represent a significant source of revenue for Visa, saw a notable increase. The total cross-border volume for the fiscal year 2024 reached $3.0 trillion, marking a 15% increase on a constant-dollar basis, excluding transactions within Europe.
| Volume Type | 2024 Volume (in trillions) | Year-over-Year Growth (%) |
|---|---|---|
| Total Payments Volume | $14.2 | 8% |
| Cross-Border Volume | $3.0 | 15% |
Processed Transactions
Visa processed a total of 233.8 billion transactions in fiscal year 2024, which represents a 10% increase year-over-year. This growth reflects Visa's strong position in the payments industry and its ability to capture market share.
Operating Expenses
For the fiscal year 2024, Visa reported total operating expenses of $12.3 billion, a 6% increase from the previous year. Key contributors to this increase included personnel, general and administrative costs, and marketing expenses.
| Expense Type | 2024 Expense (in billions) | Year-over-Year Change (%) |
|---|---|---|
| Total Operating Expenses | $12.3 | 6% |
| Personnel Expenses | $6.3 | 7% |
| Marketing Expenses | $1.6 | 16% |
Net Income and Earnings Per Share
Visa reported a net income of $19.7 billion for the fiscal year 2024, translating to earnings per share of $9.73, which is a 14% increase compared to the previous year. The non-GAAP net income for the same period was $20.4 billion, or $10.05 per share, representing a 12% increase year-over-year.
| Financial Metric | 2024 Amount (in billions) | Year-over-Year Change (%) |
|---|---|---|
| Net Income (GAAP) | $19.7 | 14% |
| Earnings Per Share (GAAP) | $9.73 | 17% |
| Net Income (Non-GAAP) | $20.4 | 12% |
| Earnings Per Share (Non-GAAP) | $10.05 | 15% |
Client Incentives
Client incentives, which represent the discounts and rebates provided to clients, amounted to $13.8 billion for the fiscal year 2024, up 12% from the previous year. This figure reflects Visa's commitment to maintaining strong relationships with its clients while driving transaction volume.
Cash Dividends and Share Buybacks
Visa's board of directors declared a quarterly cash dividend of $0.590 per share, a 13% increase from the prior year. Additionally, Visa repurchased approximately 62 million shares of class A common stock at an average cost of $266.97 per share, totaling $16.7 billion for the fiscal year 2024.
| Financial Action | 2024 Amount | Year-over-Year Change (%) |
|---|---|---|
| Quarterly Cash Dividend | $0.590 | 13% |
| Share Repurchases (in billions) | $16.7 | 38% |
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Article updated on 8 Nov 2024
Resources:
- Visa Inc. (V) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Visa Inc. (V)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Visa Inc. (V)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.