Visa (V) 26 Oct 222022 Q4 Earnings call transcript

Welcome to Visa’s Fiscal Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants are in a listen-only mode until the question-and-answer session. Today’s conference is being recorded.

If you have any objections, you may disconnect at this time. I would now like to turn the call over to your host, Ms. President Head Vice Investor Senior Como, and of Global Relations. Jennifer Ms. may begin. you Como,

Thanks, to And quarter everyone. Holly. afternoon, Good welcome year earnings and XXXX Visa’s call. full fourth Fiscal

Chief A be Vice Chair www.investor.visa.com. our days. Chief are for Visa’s deck Al webcast Joining is This website archived A and financial and site and Relations on XX us Visa’s Chairman at the Financial today Investor and on containing Prabhu, our Vasant Executive highlights on slide call Kelly, will being been has Officer. replay our Officer; of section website. IR statistical posted

the me statements of that are Let and many this These of guarantees forward-looking as future performance statements. could you result remind not results our factors. presentation also actual includes materially differ

those section is reports website. can find our most concerning XX-K XX-Q, and information website of Relations SEC’s in factors the which recent and available Investor our on you Forms on Additional the

GAAP call, over to For non-GAAP with call me the financial related release. turn earnings in that, information reconciliation this let And Al. disclosed the available today’s are measures in and

XX% transactions Jennifer, countries Ukraine, Pay helped Visa’s and locations, XX% Russia almost was the credentials in grew inflation, locations by XX cross-border was facilitators crossed X% penetration thank from thank strong penetration everybody, We from afternoon, Russia. surpassing mark. basis, increased over a tokens a Merchant to created very excluding XX% of this uncertainty with XX up to number XX% -- Global travel COVID, credentials X.X billion including grew in Tap year-over-year potential performance additional the face-to-face points even XX%. and the timing the year XXXX doubling card crossing recovery excluding the last joining year. for of and war you, by and and On full you good us. and of are recession. payment

early-stage and processed more billion for network XXXX, over X,XXX to Visa to globally excluding Direct than transactions Pay XXXX helped value-added XX XX% ever. XXX in X by in plus transactions FY global and time across Russia, on XXX Ride X.X third growing Visa’s first penetration systems Excluding global cases was partnerships transactions or XX%. had and Tap billion the companies use more. services mature utilized Russia, signed programs of clients commercial from half XX surpassing transit used fintechs enablers. with players. or five to over more and the a more we U.S. our In Over Tap XXXX, FY

year helped All drive XX% fiscal up of XX%. $X.XX, and this EPS full to year-over-year net non-GAAP revenues up of

was quarter EPS about our or X comments XXX% Now versus me non-GAAP down fourth XXXX. grew make and from XX% XX%. $X.XX, QX. then was revenues years XX% QX Total performance three year-over-year point up transition let payments volume and a Fourth key highlights ago, to net quarter up few and year-over-year

International QX volume up of volume Excluding point down was or XXX% point. X% XX% XXX% down XXXX, volume or QX. XX% China, of XXX% year-over-year payments XXXX, was U.S. payments of XXXX. Russia and was X versus or up year-over-year up X

up Excluding X points XXX% to up volumes, QX. ago, International and or flat QX. and years XX% XX% volume three QX intra-Europe XXXX, up versus Russia of excluding China, cross-border XXX% were from was year-over-year

day rose XX% XXXX during or were higher as recover. of up travel from quarter. was transactions by XX X cross-border in XXX% and in Excluding the transactions about Russia, cross-border volumes continued Processed points year-over-year to million QX XXX% QX versus XXX points. XXXX we XXX% Travel-related to year-over-year processed growth a

growth drivers services. that new update and flows provide in will an on value-added consumer I the propel Now this payments,

revenue acceptance quarter constant for increasing payment XX% both to consumer payments and than it, dollars. year components the and engagement. in three the consumer strategy credentials, fourth growing has up Total Our were deepening more

renewed of clients, financial region, in fintechs the Bank, we in Bank Shanghai of and China our significant Kuwait, Islamic Construction and and China with signed with several XXXX, the banks with largest relationship the with the partnership with issuers. the America, region, fiscal leading including co-brands we Asia-Pacific second eight National renewed UAE. and debit, deals largest Direct. fourth clients signed Visa China. Bank, with side, bank credential Kuwait, bank in commercial and our top In financial we institution In Bank the credit, our Throughout Banco year issuer in On signed CEMEA Pudong in we Communications our have ADIB, institution Latin quarter. Development of largest in we Starting Colombia, Davivienda, expanded

to Peru, fintechs Another key one acquiring the in quarter BINs was via and than in enablers [ph] full Visa’s position for processing, recent more XXX an of wins program and that with credit. extension. our country expand few a renewal co-brand Dock Altogether, America already connection, and three scheme up are issuer across in in market. And We since Santander this as significant share including In Germany single and of year-over-year. single were Colombia, servicing service and that pleased the management continent, Brazil, debit new the Argentina, several DKB ING, adding Latin stock providing active more progress we credentials is debit Dock, the the the across across most Germany a begin a Switzerland. in sponsorship, in renewed relationship issuer our making expand Debit Mexico, also Visa Ecuador. million two we the largest excellent XXXX, growing our XXXX, Republic we than UBS, will markets, market, in with quarterly the announce in significantly with made Europe, European expanded to now Dominican banks In our XX% by countries Visa with XX of credentials choice the will comdirect. and in Santander offered space, issuance continue

existing targeting co-brand and card the prospective First, Samsung Samsung in users. India with

Visa entered to launch with share in as for agreement issuer U.S., signed and at are Chase. Second, issued multiyear co-brand recently that with an Visa we agreement co-branded Kohl’s a the in by also Kohl’s card. Visa cards And the Disney excited the credit JPMorgan into Capital One extension to U.S.,

Now deal moving signed Etisalat In has wallet to virtual XX operated and physical than for a Egypt, mobile million issuance. network customers with Egypt clients. and fintech more card

signed of large to more Visa The of number across XX. bringing first digital million issuance crypto Iraq issuance X over digitize registered to our banks seeking exchange, bank XX partnerships to XXX,XXX with users drive society Islamic than payments platforms over cashless total prepaid customers. debit in and Visa Iraq, FTX, to with countries, on a Visa has U.S. credit, card and beyond the And cryptocurrency expand their credentials issuing through

cards is their issuance Group to Continental and Europe-based education Europe children be GoHenry U.K. fintech age six to and provides financial members. that and U.K. to Finally, prepaid app Visa the XX will over U.S. expanding X for the U.S., They million

more acceptance million medium which payment we industry merchants. the acceptance Mainland an and company the In we grow than Hong since an software On relationship to X higher card Korea. have that enabler the with acceptance agreement will Flywire, doubled front, in signed we of merchant nearly expansion our in Clip, education to micro, and Mexico, a acceptance supports XXXX payments to locations. global aid facilitator, small renewed and China, In important Mexico, Kong with

most the X time tap double transactions the transactions is to ever paid reached and share penetration Argentina, Uruguay. is times U.K. in July, Outside the processing XX the country America the by transactions Customer acceptance Our first year years recently, efforts have Brazil, domestic transactions Tap expanded processing of XX% pay XXXX, more and, off. best ways more points in for the saw grow penetration to two face-to-face one the Ecuador, environment. more in ago. from migrations In of we Colombia Pay Latin last the important, this and than number and Chile, of number QX, than than of to to from nearly and as since the is largest has monthly X U.S. very Pay across for our engagement Tap billion and win of with transactions surpassing

Now XX% revenue moving on flows, year new dollars. over full constant grew to fourth and quarter which in

trillion in to as Crédit a signed in quarter, renewing have industries. strategy in our Europe. BXB had constant support is all encompassing progress issuing volume In payments debit agreement three fourth issue and was growing XX% business payments card-based BXB, in $X.X Europe, and XX% Nord, credit Generale addition Societe receivable dollars. and service both to accounts portfolio, Visa long-term we cards payable the $XXX the card volume to has Visa focused payments made portfolios cross-border for BXB dollars. provider, European year, payments, in Also accounts full the billion, almost out year-over-year Within payments of virtual constant payments, across du growing clients nearly BXB on Our in Modulr, a travel consumer won quarter. credit Visa with and this

recently also reached Edenred, Connect product In the Visa our Edenred in with to available commercial an agreement bank organizations is product sorry, with am I first public new United TD with partnership and essentials a We cross-border vehicles agreement Bank, BXB with fleet making signed their Canada. which States. flows, in sector we

provider MineralTree, the Korea. banks payable five for middle the the CEMEA support payables automated businesses, accounts Kazakhstan, for Qatar market to first cards banks enterprise customers. signed time invoice-to-payment region our also for across U.S. recently, a their and signed recently Visa solution In and with Azerbaijan. relationship We space, Switzerland in And and and their enhanced receivable

flows, the excluding Visa from X.X quarter, XX% grew XX%, In new Visa billion Direct billion other fourth reaching Direct points year X this up transactions and X.X transactions QX. For transactions. grew Russia, had

use Direct expanding particular one, to cases accelerating a growing geographies; use the two, Visa cases existing through scaling to In new for enablers. existing cross-border; growth new strategy our includes; with business, and on focus three, addition

of in its a recently service am new provide eBay, in I to Gopuff, largest scaling of partners terms real-time. the the across has their sellers use cases, in world and one food goods faster ability enabled third-party U.S. for We the millions delivery a cities, Visa Direct consumer deal balance In out to with of the marketplaces in with that customers their cash of delivery the signed earnings payouts U.S. via hundreds pleased U.S.

Norway, Visa we card-based deals payments. of application, I Etisalat and of for million Direct Egypt. domestic users offer over of Vipps, have earlier, to will new cases In Vipps, new geographies, issuing in China users covering X.X the Norwegian XX% also some Visa terms deals all the mentioned Bank also access payment signed with roughly This geographies Construction existing improve for addition Other will Direct include mobile use Norway’s population. bringing to experience to

money U.S. has Canada, their opportunities. transfers to is strategy, way a have developers Direct movement expanded as platform, Square enabler Astra, instant automation applications. real-time merchant Visa business the faster their to let transfer to On using their offering add to settlement functionality

with So and Visa Singapore-based of signed cards, its demand accounts. X accounts with cards. extensive end has and millions billion across and territories. Direct infrastructure Thunes, fund users with their Visa network debit eligible of reach, Direct wallets a XX countries cards including can billion platform, mobile more than has payments X over Recently, deposit wallets

Thunes’ Our through payment already digital direct X.X partnership billion providers, representing add will to integrated XX access and globally. a wallets wallet send-to-wallet digital platform provide with over either capability BXB

our partnership, end billion and covering So wallets. reach total X points expand will nearly accounts with this cards, we to

to infrastructure strategy, that our the of for and part on services their cross-border flows, enables new deliver network focused customers. network global of aligned we As clients building with our are products

newest space, million required its Paycent collect expand over to customers and business signed to at Paycent, Currencycloud, to seamlessly funds rates. competitive FX the with hold back of a quarter, end-to-end intends to XX new XX,XXX capabilities platform and clients One including partnerships for up capabilities SMEs. this platform convert payment of this X XX in currencies our global currency and Paycent

value-added XX% moving to in billion services, XXXX, dollars. had Now in revenue up constant which $X for

as quarter, fourth were grew $X.X up dollars cost in For well. the XX% revenues billion and

and client is three, existing to new and here penetration extend products; launch two, geographically. new to to deepen also solutions; three-fold; products strategy Our one, of build

Little major first, the two and a products, largest our of value-added $X explore in client On $XXX representing FY CyberSource recently businesses, annual billion milestone, of authorization let’s a remains renewed in debit processing JetBlue. with DPS XX DPS, hit McDonald’s, merchants nearly services Caesars also in trillion deepen solution clients, exceeding for and issuer authorization gateway CyberSource. processed our DPS, processing penetration compelling over annual services existing XXXX. volume volume. and most signed business, DPS has

SMCC, Zealand’s also supporting powering of continue they is to acquirers, for also Japan. card-present Japanese XXX,XXX services retail Zealand, Decision for pilot CyberSource leveraging CyberSource’s and SMCC’s We to CyberSource processing Manager capabilities that Bank Together rules solutions XX environment. transit more the card-not-present acquired in the fraud New Deutsche online both with EMV CyberSource New expand SMCC management. terminals CyberSource’s as risk so for with expansion commercial is to value-added than transit continues of largest Most using payment first with recently, operators and each relationships its help such Bank value acquirer. with a prevent will different acceptance and launches fraud. across to and transaction receive can AI e-commerce offer provide merchants

payments. and expand our multiple markets platform. technology, level Last Federal the quarter, to Since engagements will signed made services authentication a issuer the countries. risk launch initiation CEMEA, cases, clients aims businesses NBD, network U.K. example. banks XXXX. Adyen’s a will recently and first products our integration bring solutions, Emirates XXXX. management. Across strategy enrolling powered new plan Risk and On Adyen pay-by-bank and in U.S. through new Europe, the between banking these Manager we Visa clients. second build third capabilities capability, effort to developed by In CEMEA so enhanced risk-as-a-service a extend single XX Tink’s acquisition deliver to AI banking prevention Adyen September several is in UAE. advance through network-agnostic service, value-added account-to-account strategy, enable our mentioned I have across offer management is white-label span Recently, our significant a in risk on in to for Navy the open and the solutions. tripled real products our to tailored many clients Visa during XXXX in great to Visa can of payment geographically, October onto different On to Tink, and Europe, leading pilot which utilize acquired launched launch And experts. with open its recently our fraud European solution Tink signed data, capabilities with Visa newly

continue will each credit Visa extent that We Visa’s downturn and entered to have to into Simon’s And our long-term, around will Installment on across way part delivering. we invest and drive additional value-added card Buy the future increased yield network into in about We said, continued recently the to XXXX. and going or In some our and areas, three and will and and network cards. and make make some very growth. provide particular, impact. detail, see Canada Pay strategy, entire for are business adding consumer our that solution opportunity lot eligible in for demonstrated progress our manage Canada’s have Visa one to points allow performance compelling growth new we merchants, of all portfolio. could that pressure. consumer Four, launch our some flows steep their value-added one on was conclusion, solution transactions and the network-agnostic environment. economies volumes our transactions. as additional see four and to recession to As to payment significant XXXX Two, FX and RBC into clients the business One, numbers. a flows services. RBC of year me agreement of services ahead, I -- the medium- some to occurs, brought Canada way as factor VRM risk Computers. will Visa strong including did That we challenging of go Now, of largest volumes will lapping not Later our a initiatives have we strategy in face the new growth it faced a headwinds, Vasant and existing Three, recognize are to levers across more for is a drive To let a world a payments, economic but the we manage an

very be will things closely. we So monitoring

periods, We will, prudent be the in as of expenses. have we management past in our and flexible

demonstrated through movement will Visa’s to that, different that team, have environments, Vasant. continue leadership strategy confident at ability center to Visa of a for to years our I and to remain money we over With come. manage position As the many

Thank everyone. you, Al. Good afternoon,

down revenue points in growth key recovery constant volume fourth dollar reflect points. non-GAAP and stiff net points. dollars, X were few continued and dragging The up about was GAAP quarter headwind, above Our XX%. XX% fiscal in X up EPS payments highlights, by results year-over-year was sustained in travel. spending operations XX%. XX% Russia reduced domestic X was EPS growth of EPS Discontinuation Net was revenues global A strong strength revenue XX% a up and growth and net by cross-border by reported in up also XXXX. Non-GAAP

was excluding Excluding higher XX% payments XXXX. The than cross-border Russia, Russia, above China adjusted XX% was up recovery for China continues. dollars, and XX% volume, payments above and volume constant In and international year-over-year XX% up XXXX. global up was and volume travel XX% XXXX. and payments U.S. XX% year-over-year year-over-year

the moderated excluding rose cross-border However, XX of are pace the XX-point gain versus points within a in most now to China. recovery XXXX, except in volume, has Index Europe quarter travel third fourth the quarter. open, transactions as borders

value-added a at same Our back dollars. the bought effect as an to XXXX, stock constant $XXX three engines, buyback, million. another of Contributions services, in In excess all price have litigation $XXX.XX. XX% growth consumer average grew billion which the we year escrow and added new stock fiscal payments, $XX.X flows of in revenues account, of

we our a September, new stock dividend $X.X increased of At October, in our had XX%. by billion paid in also We and program $XX authorization. In our remaining end authorized buyback buyback out billion $X.X Board dividends. the billion

has In XXXX. remained the year-over-year year-over-year XXXX, line and helped sustaining above was U.S. over spend spend recovered. U.S., to to X%. excluding Card-not-present spending. was significantly U.S. travel XX% trend continue than the to and XX% debit debit up and XXXX, was by above above grew year-over-year as credit XX% even card-present even line pre-COVID on XXXX. cost volume XX% as details. Now to travel XX%, XX% grew grew entertainment recover. credit the trend the XX% Relative well grew spending higher present E-commerce pre-COVID

XXX% and front, XX% the America XXXX. than Latin International On year-over-year up was higher

Russia higher both year-over-year fueled underway than excluding region cash XX% was XX% XX% client and Ex-U.K., Growth share Europe was higher was regions CEMEA up the in volumes and expansion. by above XXXX, and wins, Our gains digitization year-over-year year-over-year by XXXX. grew XXXX, in portfolio conversion than reflecting impacted XX% and XXX% acceptance in markets. multiple a was grew U.K. XX% Europe

excluding Asia-Pacific continues transactions transactions over within XX% levels. were up and XX% periods up cross-border dollar XXXX. XX% year-over-year recover, and XX% Global prior but Russia in XX% were year-over-year including to excluding process over Europe, above volume, XXXX. and XXXX up China year-over-year XX% Constant

XXX Excluding year-over-year travel-related Cross-border card-not-present went was points. excluding in XX% from growth, The XX% travel XXXX. in and by index volume XXX Cross-border excluding September. to XXXX. growth intra-Europe Russia, grew to travel and above spend, X above XX% year-over-year now grew XXXX to and XXX% cross-border July year-over-year excluding XXX was approximately is in June higher intra-Europe

the quarter. to XXXX out with to outbound to pick especially the to the strong the up recovery XXXs, Asia Travel all open. most European benefited high also to rising is in restrictions. of to in XX Travel continued the the the index to Asia, recovered borders points have out the has in Summer the third the dollar. travel was improvement from up to Europe China quarter, now XX lift XX and in the are strong, as appears travel third rate U.S. travel While and from from sharply quarter. of index up to recovery mid-XXs up from index mid-XXXs very when from continues, points from There geographies steam, points XX a starts to XXXX. come slowed more in ex-China of month-to-month XXXX,

XXX still X delays Visa and impacting Caribbean was in countries recovery points. and low However, The into sluggish, the dollar America into appear Latin up and some only the Travel travel U.S. XXXX strong XXs indexing remained stable, in indexing be very the to from the around levels. strong issuance inbound to and travel

of up to and XXXX, travel out the XX indexed mid-X Finally, quarter. points relative in CEMEA the in in XXs

quick financial of utilization drag by XX% from a transaction fourth grew reason to Service quarter revenues than card the QX growth. now of results. growth versus rate growth data grew this primary benefits. offset XX% versus in Moving payments revenues revenues processing is are Russia. The dollar processing the our impacted Data constant Exchange that of review XX% XX% volume. more

gross for revenues constant and programs was grew and actions incentives volumes, revenues dollar. XX% domestic International XX% Other XX.X% engines, robust However, impact of transaction growth pricing by than related versus continued Russia, on in with growth a volatility Revenue high and intra-Europe. not. payments by up the expectations. were volumes, currency Adjusted Consumer cross-border strong transactions. strong is our were was Revenue Client pricing XX% dollar revenues transactions growth growing growth was and up data our growth increase dollar cross-border XX% more recovery helped volatility each the led by three the currency travel processing high basis. the more constant volumes led line revenues were XX%. in across excluding of offsetting in actions. than

recovery XX%. The higher X.X expenses by and actions. year-over-year operating our were added expenses penetration a second of Tink recovery. We and flows increased trajectory XX% select our points. about the up normal increases are up Currencycloud inclusion than excluding cycle New point investments benefit. X accelerated. business Direct We Currencycloud higher growth X.X XX% losses client Personnel Russia, our XX%. of compensation investment card GAAP added in from XX%. granted versus recorded and rates services accruals. pricing growth. also higher Tink equity volumes million. grew was stepped due about salary carded driven volume, grew growth point to to incentive was were about and grew and as BXB quarter transactions Non-GAAP revenue a earlier of year the Exchange half in Visa by $XXX XXXX, grew the Value-added costs Commercial operating annual driven and

$XX was EPS losses, the rates. GAAP investment rising million, was Non-GAAP last EPS dollar. X-point up benefiting from of income $X.XX. non-operating drag $X.XX, XX% higher non-GAAP Excluding to strong expense interest was year, inclusive a from due over

For rates XX%, year, and X increased was EPS reducing of exchange non-GAAP the full net XX%, with revenues revenue non-GAAP and reported $X.XX over points up EPS each. growth by

XX% cross-border Europe consistent and up up are are volume, a strong XX%, major transactions the Constant debit first world. up up We performance On excluding weeks dollar Card-not-present and up XXXX. now October, XX% in year growth versus have up U.S. three and XXXX. quarter volumes above trends XXXX. stable. was non-travel payments fiscal XX% XX% with trends with the basis, were XXXX. and within grew was Processed credit and XX% X% through with spend fourth year-over-year, XXXX versus were XXXX XX% cross-border These of business in XX%. grew XX%, was above with credit and remained XX%. Travel-related markets over XX% debit the transactions growth around volume U.S. year-over-year up year-over-year

the Moving our to now coming perspectives for year.

through COVID ahead has been the years. four difficult quarters Forecasting

behind largely now is a geopolitical uncertain impact COVID know, as you all environment. very we us, in macroeconomic are While and

we specific kind have. on not forecasters. high view of might we a a economic there’s As Clearly, a recession of but of point we when have have risk recession, if, we or not before, do the are global said

planning internal we no recession. assuming For purposes, are

will closely we our Of vigilant, stay course, very trends monitoring day-by-day.

We will stay very flexible.

will have in impacts should should shock economic geopolitical we prepared contingency business. that need act have fast to And our we to. we will We plans or place an be

from So our revenue XXXX transaction comes us that globally and quarters. for for when in to recovery indexed which behind through been Payments In it very planning volume assumptions, processed is have domestic stable the starting the and context the U.S. drivers. past will with believe words, three is other we walk spending. to COVID the I now,

We in drivers. the Russia are sustains business have stable, in Cross-border growth. the year-over-year Russia digits volumes, adjust rates e-commerce year half. rates XXXX impact first will both stability reported volatility. normal assuming processed through and trends for for Russia with payments this On impact been low-double especially transactions also fiscal not will growth you crypto-related when growth

sustain Russia and are Russia to included. to mid-teens, up Cross-border cross-border X We recover intra-Europe, continued slower XXXX e-commerce excluding and a XXX growth digits in crypto, low-double travel, but June September. from the between and with crypto XXX assuming index pace, rate and the at in impact excluding points has to

month-to-month assuming are we XXXX. purposes, planning recovery fiscal of that For through recent this pace sustains year

around high-single exchange and quarter around Since points, moderate you in us rate assumptions as through half, discontinued levels through first year fiscal variables X As in Russia. fiscal as are was adjusted second drag enter fiscal the With to as i.e., half by the Two rate revenue year be dollar have XXXX X in Since very net year recorded year revenue exchange in will as be in you have which acceleration. Russia the by in a year reduce as headwinds a fourth the a in year. is headwind. the rate XXXX year expected revenue impact in gross full through dollar net net Russia Russia second quarter. reported half. exchange a enter a and headwind, points half XXXX. second on Russia quarter fiscal growth on in Russia impact we is year revenue to no this to service the fees might quarters two will be basis, will to be in calendar X-point growth fiscal dollar, around points reported year case of impact growth XXXX will much Russia stepping third dollar the last restrictions March, With dollar recall, constant in we first points nominal fiscal headwind, XXXX, we largest in will our the X expected extraordinary will all quarters But incentives XX.X% strengthened obviously the a than greater fiscal fiscal Client and X starts get over second impact growth no lower quarter, planning and rates net X When operations a exchange periods faced year which growth XXXX. Russia China the mid-teens rate late the X-point has for stiffer moderating where first and the impact and X.X reduce revenue digits. with and points, second X with the exchange of the We points. curve, up strengthened percent growth revenue quarter stiff at the and growth XXXX. first deceleration Hopefully, year, revenues. there reduce would forward today net a rate to has run growth significant dollar Russia the our lowest easing and XXXX, in hopefully range we on reported revenue together, the Based the nominal year pull is reported and by points. of drag XXXX. worth X-point XX.X% as

on operating Moving to expenses.

plans. revenue investment prioritizing growth line are We expectations, growth expense our managing with in rigorously

key initiatives revenue services. It and flows us know, growth you make is cycle payments, to out. to to year important fund value-added a three we business. As have consumer growth across continue will for today Investments long years new this two is

Al to we and investing realize have need extraordinary are to potential. their said, As we ensure opportunities growth

which fiscal dollars, expense exchange the are about and non-GAAP single low expense higher be operating X at plans of in first to year Currencycloud, operating changes, Our and constant digits growth, double-digit point expense dollars, about current in closed expected for nominal which during rate in point two reasons. high Russia Tink to XXXX a are X.X benefit growth discontinuation for Non-GAAP each. half will operations be the by offset growth

in cross-border we first and in the the base first accelerated. expense Tink the to we through since points year expense add a Also last First, Currencycloud half. X as stepped up recovery lower growth spending half, lapped the investment year

our scaling categories. growth personnel assumptions, a plans half Should quarter, business, first marketing programs below moderating ours, revenue this highest be of digits expenses, between World and second business growth high reprioritizing the as other mid-single As non-GAAP we in impacts first controllable year. always a considerations. low-double at planning is requires or adjust half, dollars impacted in will, the and careful our that like end by and the in is such, In and to of a FIFA which expense also the travel balance investments, the the a in delaying through be there nominal by appropriate the geopolitical spending digits short- recession course, in shock our in expected or pulling long-term back slowing spend, and back Cup

higher balances. non-operating from interest will million, $XXX to interest As range have non-operating income benefit the be in rates expense fiscal currently $XXX cash XXXX. million from our risen, year expense We expect for

We provide through will quarterly updates the year.

walked of based XXXX. everything dollar through, remain on the XX.X% is on teens. rate dollar could range lower in growth than fourth expense first tax to the quarter, in I in the operating XX.X% expect depending Nominal items. growth The range, low XX% of on fiscal par year client non-GAAP the the single-digit net in with the resolution we first incentives be expected range to is rate just quarter, XXXX. in nominal the some expected XX% to tax to high the Our with revenue quarter be on reported Honing FY in

is net which higher. of lower Second quarter growth than first quarter the revenue the be expected impact, is because to Russia

stable growth operating to year end of fiscal moderate is we quarter expected through also digits. Second assume low double expense XXXX. summary, the conditions In to

circumstances to to we our growth is of should We as still extraordinary prepared opportunity. long-term There change. uncertainties, act have plenty we been are about near-term ever certain cash digitize of consumer remain Regardless core as fast in payments.

Jennifer. are by can value-added turn serve through growth accelerating transactions vastly enhancing in will the flows our on to network We yield we I expanding this services. volume the our new that, on business, back use while by cases layering With

that, ready Holly. we take to with And are questions, Vasant. Thanks,

comes Thank with Lisa [Operator you. Ellis Our Instructions] MoffettNathanson. question first from

You may go ahead.

Al. of as -- you credentials now Thank doubling a some on card Visa on into any comment made of monetize on the Visa And to billion tokens, progress follow tokens I up made value-added Xx of up First, question. a out progress should Thanks now a tokenization service how of aspects prepared directly, selling tokenization? number wanted there? have you other that you then benefits you taking bit Can indirect your networks exceeds services networks? more have year-on-year. elaborate we remarks -- having your my couple what alternative you. than don’t you. tokens of or given that Thank for on of tokenization about also Hey, in to -- the X.X what about level the think

X.X billion. Yeah. It’s -- I you X think said It’s Lisa. point billion, X.X

of view We and yet -- ecosystem we ecosystem selling as converted transactions relates to tremendous critical play as cards tokenization of of card ultimately, other some have -- networks. trust but a view success their convert in and in the role had of tokens security amount it to it as to ecosystem we terms the a the get We into then, not critical the the a that token.

over have to getting payments positive where one, know are our in we merchants them. that we we for being issuers the that clearinghouse There of building this capability cases, expect from global are terms fraud. So few the on are another being and I revenue very impacts today tokenization a time,

Our next ISI. Togut with from Evercore question is David

You may go ahead.

two enforcement potentially XXXX to the prices? growth example, Reserve’s transaction impact, to And process Thank XXXX? you every mitigation related FY of offset networks processed any to U.S. the debit impact for online you very Federal Could transaction July do much. X, gauge adjusting beginning you strategies from on that, U.S. for have unaffiliated

add the we the first to transactions. am cards the answer see of to question. Al is at will I second e-commerce have Obviously, second more part on wait which pace will I the sure on the have enabled part. and Yeah. on network

we given is in us unmatched, terms and goes you Our security to will as be know, value term, More impact broadly, just is the year, of any. about if longer people because that you But minimal, XXXX come in posted. we keep September our goes fiscal effect the through current will the and that tokenization, expectation, of our services well with that other of the as offer the that layer resolution management the that message the services, form having and risk dual we dispute value all on. and sets our that as create in everything of it, comes we network reliability a views

based for on past more We am us this business sure, in to the we and Al, front. have provide, add have have merchants and I value on the you competed chosen

Yeah.

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Next question.

next Peller with from And Darrin question is Wolfe our Research.

You may go ahead.

guys. Thanks. Hey,

and of And flows, from growth. and was on underscores now think your of resilient new about you coming the obviously of outlook of clearly the minute. budget are stages just us to you I a for many consumer so touch services, I far. revenues helpful third a early which gave had your water But Your the have

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Right.

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have you levels the from down seen. coming clearly is growth expense So

the year, growth -- end of But at nominal fiscal second year high half I our going-in in just planning the mid-single the X%. the year, about For is is growth digits. note assumption that of of the would the actually

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put in our would the of Now that fiscal us second half year.

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question. Next

William with Blair. Napoli Bob from is question next Our

ahead. go may You

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then they stimulus went and growth, through come through back. much services very period so the So they where period especially high on, services, to recovered faster a than had

see We to too are on doing well the some a on goods side, quite goods is three-year too. starting now. But recovery overall, index,

Next question.

from Harshita is question Rawat. next Our

You may go ahead.

if tough big a this of revenue is taking at, on which Thank was this my you lot, look next like, if trend in on can kind you into question. and like, for still has in year, macro. Vasant, flip revenues talk comps against strengthened had be a the XXXX? just spend, I of inflows in dollar beta but has line very about volatility and cross-border you at, U.S. U.S. which impact But to inflation to kind recovery year. the can beyond metrics side, on XXXX benefit look there’s [ph] are also high that. you actually know travel you cross-border versus FX

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slow So the above rate but and of the recovery we slowed, in the to still mode. are growth year, has it line, because continue will inevitably trend still it’s long-term through

helps that bit. a hopefully, So,

Next question.

Ashwin Our Citi. next with Shirvaikar question from is

go ahead. may You

you on but But one. to of headline seeing are situation a there then stability new I more agree consumer in that few it granular part business might a months, to that have services you if you is a if Thank particular implying as pay as or you resilient, see you been talk that’s are seems perspective, value-added that. highlight a also the are downturn? because of what you. and So could From kind maybe about basis strength guess, weakness? more in you a the value-added, mentioned, addition whole are with that things But the and flows and there new for has areas nothing flows

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transactions. and is In terms on flows, new obviously, dependent services value-added somewhat of services value-added

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question. Next

Our Suisse. with next Chiodo question Credit is Timothy

go ahead. You may

Direct for taking the the want to Great. about decision. a I question. Thanks Visa talk lot

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Last Holly. question please,

comes Huang. question from last Tien-Tsin Our

ahead. go JPMorgan. may With You

you know hour. time. have beyond for the I the much. Thank you. you gone so Thank Thanks

quick mind. ones, don’t you two Just if

scale line. revenue to mentioned had growth you some fiscal it, in Just but on element at services, other did there you XX% know transactional the XXXX. I is

how on correctly like that minimal nominal assume we want are then operating make clarify to on sure how the flex together, we to basis, And case just operating leverage. it leverage, come on might wanted if stability? a I thoughts any Thank should and might things base assuming relative that I XXXX looks just you. So hearing change?

as the Yeah. we On short-term leverage, balance long-term. we said, trying operating the and to are

heard, there opportunities are These extraordinary have are services. we value-added flows you think businesses. long-cycle As new and in

invest to You for future. the now have

plan to other of the reflects plan our are -- the growth. invest expenses in So, yes, expense we that and revenues… And to the revenue question business relative we choosing part the growth that the was other

Other revenue.

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the where effects slowdown like line, because on, of that there see the so revenue just the impacts will business currency overall you and a some is and other sequential So in lapping in Russia too.

to that, Great. we thank And you like joining today. us would for with

additional and call you please questions, day. again our have or to team. Relations Thanks feel If email a free great have Investor

And this participating. Thank concludes you today’s conference. for

at You this may disconnect time.