Visa (V) 26 Jan 232023 Q1 Earnings call transcript

Welcome to Visa's Fiscal First Quarter 2023 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to your host, Ms. Jennifer Como, Senior Vice President and Global Head of Investor Relations. Ms. begin. may you Como,

afternoon, earnings welcome call. Good first Visa's quarter XXXX everyone, Jordin. to and fiscal Thanks,

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

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

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

information reconciliation related disclosed the in call, in For release. available non-GAAP earnings are financial this and measures GAAP today's

with Al. call let over to me And turn the that,

you, and good performance years a you XXX% ago, Visa's recovery and us. quarter and QX. travel. thank the cross-border three QX payments volumes up and Total was X% everybody, of year-over-year first domestic joining XXXX in for of continued thank transactions volume versus reflects afternoon, stable Jennifer, or flat with

points ago, QX. excluding intra-Europe, XXX% year-over-year point XXX% XXXX, of year-over-year volume, or X volumes, XXX% QX. up up International from versus up Russia X% of XXXX. down from QX and XXX% or from Excluding or QX was was cross-border XX% XX% U.S. volume X China, XX% payments Russia of up and China, payments was X three years and excluding grew volume QX. XXXX, point up

driven inbound the rose Russia, points World QX, and XXX% cross-border United modest to improvements CEMEA by benefiting restrictions, from XXXX X volumes points. FIFA higher cross-border into from XXX% year-over-year in in Asia China X lifting by Pacific, continued the QX Excluding of by Travel-related helped was growth States Cup.

or and day during the XXX% transactions transactions up Processed versus year-over-year processed XXX million we XX% XXXX, quarter. were a

should our $X.XX, our through payments we Although revenue traditional grew us, grew was large flows quarter business, issuers the growth. significant co-brands. with this In first quarter first up In new focused businesses each And altogether, consumer made EPS XX% revenues through deals we many quarter capabilities. progress levers, revenues with XX%. payments and and year-over-year consumer non-GAAP largely payments, and saw on pandemic of say, flows Visa's -- net services, we behind growth value-added strong new net I saw

to In global expand value-added addition, we services continue globally. our develop and

of Brazil. overall, Costco's me and United first these XX%, the United United XX% transactions San all of States. and in a the double-digit States, tap. explore In areas. excluding nearly the India credentials of U.S. Russia, XX%, time with face-to-face payments, Russia face-to-face States, transactions strong In City penetration XX% Now Francisco made York globally was above credit each grew we in United the consumer San let XX% surpassed notable growth went drugstores growth and New XX%. X% excluding for with Tap-to-pay with Jose, above States, the were and a

several had United important In the States, we renewals.

premium Premium launched maintaining including travel of First, States, their rewards and our newly rewards, and Rewards cash current Elite our rewards, in United business, we renewed with Bank partnership debit the to our America deliver excited cards. in America Bank to customers. consumer enhanced business capabilities growth the to of for and with together innovate their and improved joint credit invest to We're continue experiences of credit

across top a commercial with XX renewed their Visa and issuer we U.S. consumer portfolios. Second, Bank, Commerce

over we X bank. independent the Also agreement our Finally, we for In renewed region, and the largest Costco, for agreement issuance. and new the our cardholders country's payment Australia, we One. New in million with with Capital credit extended debit a with Zealand-owned also relationship renewed also exclusive solutions our prepaid agreement largest Kiwibank, signed provider, with

ICBC in do with Brasil, renewed the the of one we with America, the issuers largest Banco region. and issuers Argentina, country, the one Visa largest Latin In in of

making of Millicom is In Access the deal services way, Money's addition, Panamá. new offer Money the a with X and wallet reached and the agreement easy their Tigo Tigo wherever in in and Banco platform, Latin Card. fintech we America, Nacional new million Also into to parent expect banks an the Millicom, telecommunication with with leading entered to company, Panama, users strategic we Visa accepted in cash region. more a ability in Money purchases of one Visa largest secure de than provider digitize a Visa-Tigo

fintech neobank into that We're credit we to debit HSBC. strategic renewed and also X share Niyo deal cross-border global in to Another well extended spending India, a was customers. our happy affluent extended with partnership as with fast-growing with corporate with as our We've customers. million relationship from focused cross-border grow

Our commercial all agreement also digital consumer of This across and covers deal acceleration. five it Visa's and will growth foster cuts and regions.

the globally, three and report As agreements I'm to reached in we that you travel travel know, happy with relationships. co-brand important Visa recently leader is

a its a and has First, with key payment our Visa partnership rewards initiatives signed expand co-branded Club, with of Avios, Airways' currency to world, XX-year portfolio Qatar spend financial key Privilege partners markets members portfolio Privilege partnership the and new Privilege world and creates worldwide. of Club which across a split has Visa around of Club. customers the collect exclusive enhance for to today across opportunities expanded new This networks

Second, to of for the by Visa It Chase. co-brand credit network with JPMorgan be will their States, the represents the card payment Airlines continue partnerships co-brand one exclusive issued in United the largest in Southwest world.

world's in Star the and in Alliance exclusively created Alliance Visa first Star launch, on this the a the an it credit single together platform. seven brought is time card with Third, and alliance carriers Credit. card with is HSBC airline Australia, issued At of credit

of our with advanced entities one co-brand XXX Flipkart, India's Also, million. with commerce digital registered leading we a base of customer partnership recently

position So co-brand issuers well traditional continuing the whether are Visa for to we it's future. with or partners,

flows, new where transactions. quarter, XX% strong Direct by up new led to more grow flows to growth dollars volume with continued BXB in in revenue and On Visa constant than past payments this

Direct First, Direct on the QX, billion side, had X.X excluding Visa Visa year-over-year, Russia. transactions XX% in up

of QX currency Malaysia currencies recently We as across success with payers program on globally. Bank transactions our excluding from with Building Non-U.S. an grow to to of continue points, 'XX. more Chartered additional origination Visa to percentage as come. a the Direct remittance launched Kong, nearly Russia, transactions QX six XX we Standard expanded spanning 'XX Hong in market total

continue existing We new to also use to bring cases markets.

First, DoorDash. now enabling in driver Australia, payouts Visa with Direct is

one Second, using rails. in XX of country's we to mobile Visa launched enable Africa their with money the South program active our FNB, largest banks Direct their customers app to million inaugural PXP within move

program in we With bank cash using payout in with wallet real near can Visa launch, million our wallet Bangladesh XX to Direct. this transfers, Third, the money, nearly launched users time XX/X bKash. make bKash

and on We several marketplace are than enabling more GoHenry. in a seller registered States million payouts fintech, where XX use the top-offs with card users, Poshmark, cases, media social including United

top quarter Europe to in a members Visa service with prepaid deal with to plans Direct enabling future. across expand card up first UK, in with follow-on this we their is last As the to Visa them, announced child's the the issuance its GoHenry

partnership addition in In States, noteworthy Clarity to credit renewing Raiffeisen Direct, customer this for their -- payments a space across the credit X In consumer renewed commercial XX% United commercial we with UBS dollars. Spend several for consumer new an business in business. in we debit addition quarter, had credit volume with well clients and million for to Visa BXB in issuance, we and where credit as Visa developments And Bank in signed portfolios the grew Austria. past constant traditional agreement as

in with recently its Stone Another the issuer one become debit issuing of in could a was digitally that acquirers partnership focused be small Brazil of embedded businesses. credit wallet. Stone, has and on Visa cards largest

virtual accounts card and the receivable completed agreements. for payable, front, we On several

for offer Visa and by and the virtual cards as its businesses Divvy, midsized management First, has payment renewed BILL, United owned expense an its of agreement platform solutions. expense small part vendor to States in

And U.S.-based offering deployed opportunities easily a produces for to checks. to by and cards. be can that BXB commercial every are that Viewpost corporates we solution expanding check issuers payments card Second, Visa still virtual converts together, business

agreement direct Visa across solution accounting reached with to an and Plate will provider automation leading partners Third, Plate integrations to hospitality, IQ, States card with offering and end-to-end be payable among commercial we've systems. others. including a bookkeeping, accounts retail and virtual the restaurants industries multiple United a IQ accounting in

BXB cards its clients, has as and a Pacific payment global solution small and more Fourth, global than for customers. X,XXX Asia Visa in travel our launched online SUNRATE, of business part virtual agencies treasury management including platform region,

grow to well. as Fleet continues issuance

the States, solutions This issue to debit, signed Loop from as issued a with five-year provider credit, Visa Visa expanded fleet. with we cards agreement expand mobility Zemo virtual with markets fuel XX. a issuance Open issuance relationship three quarter, they to and its United embedded finance a fleet cloud-native commercial we Highnote, In -- card and European across platform, and card solutions fleet European and

certified data fuel controls on more with fleet became product and which for In more faster specific decisions a card addition, detailed real-time as programs. level Fleet businesses and provides Visa Highnote category and new processor, card

to drive cards and fintechs active already small innovation Visa Konfio, approximately expanded businesses. example A continues Visa an XX,XXX players to Business is Visa issue partner issued is for Mexico agreement and Infinite BXB recently fintech its new for to cards. a with space that has in recent business

are newly the they Sr. in In positioned acceptance acquiring grow their market Pago. business, addition, to with established

$X.X launch our areas to value-added great this solutions; up geographically. in expand to of a for about revenue existing threefold: three on more dollars. CyberSource had is quarter, value-added and new constant and one, services, three, is Remember deepen XX% example than client moving of penetration to that which products; to in build focus. Now two, services all first focus billion

First, pandemic, QX, of the environment. growth capabilities the we offering transactions for last penetration products. this on in low has solution teens deepening in broad utilizing grew existing Decision Manager post-pandemic more demonstrating doubling enter the than strong even continued clients a Manager years. and experienced Decision CyberSource's as demand transactions CyberSource existing to the In three provides client year-over-year, throughout

them offer their CyberSource's to with Another area mentioned who we of utilize clients. growth merchant to is have capabilities acquirers

Gateway with gateway North dynamic fostering signed evolving growth QX, to acquirers Saudi an our payment in Elavon gateway Payment partnership bank's with e-commerce its capabilities in and services, SABB's Bank CyberSource of aim of enhance strategic America. the with has for Platform In announced overall Arabia, Saudi In British agreements the Risk we the and including several space.

strengthen continued to global extended presence. efforts our On we've our geographically,

our transactions, nearly XXXX, CyberSource in the and of non-U.S. now also Our has new the particular have of by quarter led CyberSource transactions region. first created the quadrupled majority Pacific they comprise Asia offerings. since

CyberSource our authorized historically, capability, product In the While transactions. with e-commerce the we increase of years, XX% the omnichannel offerings, in few accelerated the card-present card-present nearly in and year-over-year has over have including been XXXX. saw quarter, of past back acquisition past Payworks an of we development CyberSource

Other globally of the from with North dispute more and seconds. a through typically resolves quarter rails, cases which solution the dispute merchants value-added nearly resolve to services this in reduce innovative as from issuers time our processed this than disputes dispute This America. to growth days average acquirer outside automatically rapid between resolution X/X of Verifi, cases capability expanded include XX% our quarter highlights saw we XX through

to data ABN in with recently million across its Money Tink's Tink Paribas has to several for enrichment millions deepen AMRO And integrate data with expanded products also Paribas money more provider BNL use main in master BNP transactions live into bank's continue renewed customers in Tink, Tink at Europe. Tink's to customers money with banking open the million already Belgium is and BNP customers. Manager management, agreement businesses and relationships and and X their our for of and banking Italy. app Fortis products enrichment commitment than open services a the be develop across X Tink and group. signed movement platform Europe.

like strong the will into Vasant a in growth to to for Visa our other rest make quarter, comments. conclusion, delivered the year, results strategy. execute effectively of the few and on our first very I'd In continue brief but thoughts detail closing go

current term, for invest mindful compelling to will and and We manage medium long the while business environment. our we'll growth, will all being future that provide initiatives continue to are in of very the

I great beyond, to for the we bright this continue deliver ahead believe the rest of future continue to look a to results. to and year right see strategy as Visa we I and have

I'll who grateful XXXX, leadership this stepping of role have job the in since As as Board proud our accomplished February XX,XXX in effective exceedingly to of assuming the down be I'm so helped announced colleagues to passionate in as together employee November, we X, we and rewarding. Chairman. and full-time Executive CEO all Visa, started addition XXXX. all that of make I I'm

transition Ryan continue to think worked He our X.X our deeply McInerney cannot and and employees. and his knows in a money of position business, the almost totally center with clients Visa ways. leader of be for Ryan is by at I CEO, team I become great to seamless. I he will Visa's and our will to a innovative finer years. increasingly He expect this do movement respected side-by-side job,

over today. it But our to, to beyond. asked quarter to the alluded that, second Ryan that the the mind, quarter provide portion me call highlights of financial Q&A Vasant let join and to as With hand our for before on and thoughts and I've in Jennifer

Al. you, Thank afternoon, everyone. Good

constant net value-added Discontinuation exceeded client results strong, Our of growth reported revenue net in quarter anticipated. X.X services revenues cross-border non-GAAP high lower XX% net revenue were GAAP growth dragged were than up growth up X Net by by approximately flows almost were almost were volatility X.X Russia for reduced dollars. fiscal and spending X%, Russia, EPS our and operations and by down very in recovery in currency reflect points. as Adjusted was incentives points. growth domestic first expectations up EPS XX%. revenue The growth up stayed and points EPS new Net dollar about sustained strong in travel. non-GAAP revenues continued XX%, growth

highlights. global key few A payments year-over-year up In volume constant XXXX. XX% X% dollars, was above and

global Russia, XX% payments In volume XX% for international adjusted volume XXXX. X% over and year-over-year than and year-over-year up XX% more XXXX. volume, U.S. above up versus year-over-year payments and up dollars, and on China excluding was XXXX. China was single XX% than year-over-year holiday constant U.S. was basis Excluding spending XX% payments high up digits XX% was a the and growth Russia, XXXX. in and higher

Monday but share E-commerce holiday trends. and with points maintained out pandemic. to year, Spending with important spending of smooth Friday continues the around X generally post Cyber its still over Black globe season up retail Holiday XXXX. versus U.S. significant spending days last less over the was since consistent shopping

travel recovery continues. cross-border The

and of pace Japan including moderated as as January. most are now borders open, in China recovery However, expected, has the now in October

to XX within very fourth sharp cross-border of a quarter recovery the excluding November travel cross-border As which 'XX in gain saw fiscal fiscal rose travel and in October the we reminder, transactions first and versus third a points year XX-point XXXX, in we X of of XXXX, are a Europe, the points 'XX. lapping. volume, year quarter Indexed quarter in

average year the dollars. have of in price sustained new stock flows of buyback, -- of another value-added effect robust as added escrow million. an quarter which services bought plans $XXX first excess growth at same revenue a to the $X.X fiscal account, in New XX% litigation constant and in Contributions billion 'XX, stock approximately the In back we $XXX.XX.

We distributed $XXX in dividends. also million

above level last XX% higher to Now present over spend and year-over-year excluding on pre-COVID grew details. than not-present lapping U.S. last to grew last sequentially spend sequentially U.S. line even by XXXX. line sequentially quarter. as credit prices. XXXX, as In has last XX% quarter, well XXXX, U.S. spend X%, U.S. above significantly In prices credit fuel the and travel, retail retail XX% the XXXX. quarter. grew fuel even impacted above and credit grew remains compared was over trend recovery by X% up E-commerce has U.S., spending the debit withstanding year-over-year, recovered. from card trend debit X% compared as the year, the and to was card-present impacted grew volume, year-over-year card as card and XX% spend XX% present recovered. to spending pre-COVID

year-over-year XX% America Latin constant the XXXX. front was in than higher On dollars, XXX% international up and

the client Our 'XX, digitization regions and cash higher XX% expansion. Russia, and wins, saw, both portfolio fueled as was by was up all XX% XXX% higher was XXXX, growth volumes XXXX, FY and reflecting Europe Europe CEMEA conversions, remained than now UK, XX% than Ex that in year-over-year we XXXX grew year-over-year in gains Ex XX% above is trends region, UK. in impacted was portfolio a and XX% by volume conversion nearly multiple acceptance year-over-year excluding through complete grew share in UK the markets. stable.

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

growth year-over-year excluding Cross-border travel, excluding was [XXX] X% Cross-border Europe, XX% in XXXX Russia, first XX% above e-commerce The above in now card-not-present by cross-border excluding higher was travel year-over-year Adjusted growth, quarter. travel intra-Europe, for volume points. XXXX. and December. of spend, digits. and Excluding the went XXXX. September and cryptocurrency card-not-present, over travel, to cross-border Cross-border year-over-year in grew volume is grew represented XX% about purchases grew total indexed intra-Europe, double low the and XX% excluding from X Russia, [XXX] to excluding spending in cross-border

to up all XXXs of quarter. the continues and in Travel the remained both we points Caribbean the from October. indexing the outbound lifting to weakening in and since XX outbound be the to for strong XXXX, XXXX in to outbound improved U.S. mid-XXXs, in the alone inbound remained strong quarter, Japan. its in for XXXs expect X World approached XXXs to points XX the to slightly levels. fourth FIFA stable, to from the for than with quarter than by the and up with dollar. Latin levels Europe inbound strong, outbound restrictions come. XXXX XX and more than travel improved points and and on points and Travel inbound America the in in recovered out and indexed X, China XX, and relative more Travel inbound, more January very the With sharply to recovery XXXX quarter Asia by about Japan than more by mid-XXs from opening from in for Travel the to indexed quarter. the by up helped points out XX and outbound inbound borders XX X XXXX, geographies more indexed the due respectively, fourth by XXXX low indexed Travel U.S. around XXX into to helped in the CEMEA of Cup. XXXs likely to

China the the COVID Finally, travel season much. revenue world's a China, Domestic some underway will rising Mainland event. sharply. is removal XX-day From post color in The zero travel Spring Mainland policies. Festival not standpoint, on of is contribute this largest

pick Chinese In up to visitors settles is mainland flight look terms Thailand, lifted restrictions mainland and Hong China Mainland moderate, situation Chinese more initial Southeast Singapore may The are and not ticket as down. and new and passports Kong travel Asia, increased Malaysia. corridors. particular, of steam will destinations prices until Inbound the this some to are for COVID in much be has outbound visas capacity not travel, and available, in obtained

XX% and transactions mix, process processing The grew Data is are offset pricing that of financial fourth versus X% results. volume. was rate Moving first drag impacted growth. now processing benefits. quarter XX% dollar constant Russia. quick primary card Exchange to our growth from by payments in grew Service data reason revenues a the versus XX% the revenues quarter business growth by review revenues

revenues data However, our up for not. XX%. is Adjusted Russia, transactions growth processing were

high volumes, was versus excluding the actions, than although International dollar offset by exchange XX% lower Revenue transaction which pricing the and volatility, XX% were constant currency in up by helped increase shifts. quarter intra-Europe. fourth growth were cross-border revenues rate

were led based XX%, by other and incentives expectations items. grew adjustments revenues, client gross actions services, XX% some due on pricing and revenues consulting Other marketing performance acquisitions. and of to below Client

payments with For volume the quarter. the about year, in good completed renew of we amount already expect our to a first XX%

in engines. Consumer and cross-border robust volumes Revenue three continued by volumes, and currency was our transactions. strong payments across led was high growth growth the growth volatility recovery domestic

XX% New was flows dollars. revenue and Commercial volumes versus growth up constant XX% XXXX. year-over-year XX% in over are card grew

up XX%. Currencycloud Visa penetration point grew by growth. driven to Russia, in added Direct Tink Value-added and revenue dollars, Excluding client revenue higher and transactions was XX% services X.X constant actions. over about increased select volume, also pricing

first expenses exchange operating operating activity XX%. expenses in primary by costs by Marketing driven into grew Non-GAAP last The as expenses due quarter, than higher XX%. spend grew primarily from expense as rate and GAAP exchange of the was higher Non-GAAP the client expense and benefit. marketing. G&A FIFA primarily lower drivers acquisitions. XX%, second personnel hiring of World driven well new half expected, rate year increased growth benefits, smaller operating expenses travel Cup were growth a from and to the

from losses recorded of investments our We million. equity $XXX

expense non-operating benefiting million, items. non-GAAP losses, was from investment to rising $X Excluding higher other some due and rates income interest

rate and due of in than was last GAAP EPS XX% lower up XX% over drag was $X.XX, $X.XX, of stronger the at expected tax year, dollar. from to GAAP non-GAAP EPS was X.X-point inclusive Our initiative a non-GAAP. an tax resolution XX.X% approximately the coming

above first XX% trends XX% get Omicron-related markets XX% over a transactions and performance XXXX and cross-border consistent XXXX. Omicron-related These with above XX% Travel-related was XX% XXXX into XX% credit was Processed with U.S. XXXX to has The volumes from year-over-year. and grew within XXXX. XX% On dollar volume the up weakness world. month-to-date generally are will Europe, and were above year uptick three growth. XX% excluding we and over fade strong Card-not-present was year-over-year transactions debit XX% Lapping in XX% cross-border Constant non-travel major the contributed last business XXXX. strong of remained around have payments January year-over-year up up February, growth trends grew February. weeks above volume, and basis, Through as of XX%. stable.

pandemic the recovery We domestic are and on stage transactions. past volumes now

still for will recovery to payments we we the comparisons and will transactions. XXXX volumes cross-border cross-border Since to As XXXX no ongoing, to provide is provide longer processed comparisons calendar through starting for this volumes next continue year. such, quarter,

to second the Moving for outlook our now quarter.

domestic For that are payments the and some in from benefit January in lapping assuming year. with volume second are transactions trends Omicron processed quarter, last sustained we

discontinuation Russia transaction reported Russia will will impact quarter. payments processed operations in reminder, a reported of in not As growth. growth second volume impact rates the

trends have too, e-commerce in been growth line Cross-border cross-border We're and stable, for quarter, you ex first continued The and the when recovery especially quarter. e-commerce Russia sustained Russia in rates generally cross-border the resuming through crypto. travel second volatility. adjust crypto-related with our expectations

We the are quarter. assuming recent trends to second sustain into

We Mainland the of travel reasons recovery half beyond outlined second the for expect most I and China earlier. in

recovery We travel first. expect situation. inbound COVID Mainland depend the The on recover outbound of from will pace China to travel

in all the the together, curve, nearly quarter growth the Discontinuation basis reported second reduce about we second adjusted second planning of recorded today fiscal a will for net dollar service us on in two mid-teens assumptions almost this of X growth you is the since second to net by quarter in exchange of on quarters' put Russia. net year revenue revenue i.e., growth constant operations revenue X will rates forward 'XX. and where quarter our When by quarter points. reduce points in dollar run fees rate the worth Russia Based get

below XX.X% first our of rate and headwind, revenues in XX.X% would X-point single range almost to the incentives X-point dollar be were quarter. revenue net nominal a exchange digits. Russia impact QX in With reported the Client growth gross an high

the higher are the at the middle upper run end client expected the range, of incentives half to in range. of first quarter Second finishing the

growth from As of as through well rates rate we the year will moderate higher operating in last as increase indicated as lap October, expenses we levels the reduce year.

operating dollars the expense nominal to X expected lower second X points the growth. is than in points quarter, expense to be quarter non-GAAP In growth first

growth non-operating by expect non-GAAP last point from Our year. to with decline income the higher expense million point quarter. X X is third be X to Non-GAAP points the and in non-GAAP to fourth driven quarter quarter, $XX the cash to litigation our third the operating interest certain reduction the X range in We in acquisition-related results points, quarter $XX exclude an further expected largely from additional a balances. million items to currently second rate provision expense

tax Our first at end non-GAAP the tax range for expected XX%. a XX.X% to non-GAAP to quarter, XX.X% of between upper to expected XX% be With range the rate the of the is is now rate XX.X% full rest the the rate to year. in year

should half, be investments, As delaying recession impacts spending course, last marketing appropriate back other the slowing planning geopolitical categories. quarter, said in will, adjust there personnel second or back we reprioritizing revenue by our spend, and our growth plans expenses, a and below in our of controllable a shock we that business, assumptions or programs scaling pulling as travel

requires long-term In a this always balance short- a business between like careful ours, and considerations.

We and have contingency to. plans need in place will we activate should them

so year. resilient been far has business this Our

growth from wins. performance consumer cash client demonstrated has digitization strong and payments quarter first Our

value-added much ahead. economic from an still and There services strong. standpoint momentum in flows New months very is uncertainty remains the

will ready vigilant remain and to act. We

the As we long-term we've optimistic as our look year potential we as of business. 'XX, past about remain fiscal ever been growth

Al's Al, so almost week the last non-GAAP wonderful in my up as Al's It with CEO judgment. and I with extraordinary human doubled, best global been XX,XXX will an is Before or for It's for personally. for exceptional worked finish, I've this CEO. has Al Al and day being, I worked me career. business sad many is Despite a an a I've years. you as tenure. been along over have at tripled Visa. CEO, during stock price pandemic, six EPS others our has has is miss revenues a eventful X.Xx three-year leader

Jennifer. to I'll this turn With that, back

we're take to ready And Jordin. with Vasant. questions, that, Thanks,

Sanjay with KBW. [Operator comes Sakhrani Our Instructions] first question from

and Al downturn? are plan or forecast, in we mild to stable assuming how congratulations economy? you mean, the and assuming consumer, Thanks, you as resilient some think we well. baseline about Ryan economy I as are your are factoring Vasant,

what we through went -- last assumptions you we we no on and call we for the recession. assumed our call Well, planning had last full told year, the

in and indexed That's spend second trends mid-XXXs remarkably a in four see, quarters you our now, stable. outlook. the around right business just in of been can The As evidence no they've reflected world, change levels trend. there's have for almost the quarter

the changing of At weakened rate not second mean, half. point, we accordingly. clearly, the there expectations our I a I is changing so will any this second second we're planning has are half, that half. impact assumptions. slowdown, dollar if the we're mean, for And exchange in then any views in but not the will the they a change bit react

Research. comes from Darrin question next with Wolfe Peller Our

comment still really those being on with debit on were helping I revenue the debit of we the you're to what could it's Maybe strength. the QX both it's to a nice don't what share, in what the if is see could seeing But you're half, I on tough far up trends element think they metrics for an on is of what's comps, better touch so it and forces a it's the on in other QX or currency So little if seeing, mean, the like the just which And Street than conservatism second The strength think when because single other know that of side guiding U.S. relative factors probably constant just in thought. moment, -- in trends like you seems underlying for you of and wanted. driving could some the high we're then we digits Visa other I from about trends combined based we services. see Direct

happening there's as it's spend, going us the all Yes. good general, stability. bit, if view In the earlier. On look looking good we down -- took you in on. at honest, XXXX What's you debit, remarkable It's And really a kept at spending a has so what's spending -- is slowed total of services up it's speak. to told what slack.

just spending have stayed consumers why so the And and has they're but shifted same amount, spending debit their that's resilient.

occasion. about has just the U.S., beneficiary digitization more and Debit the happened more tap-to-pay, the any credentials move e-commerce, people in been digital on globally using more to payment biggest of that including

other has kept So our would the as worried debit slowdown. debit some big recovered, see payment has and as some when might stayed stable. Those resilient seen, even to that that people the trends overall which very down, things volumes be credit question? But settle has start you've were

revenue. Other

Cup. by And and of the a client-related a related Cup. was helped fair to linked Clients variety of programs World lot a that and to revenue mostly spending revenue, the other marketing ask certainly and activate us revenue. services marketing World consulting helped to the was FIFA There that of amount

Sachs. Our next Goldman comes with from question Nance Will

of travel. Wanted continued big a click are It of sounds on China. the region guys kind that driver being around towards made double like you in fairly cross-border comments you some of recovery as looking to

something morning I volumes your this seem aggregate competitor COVID. X% to think cross-border heard of to that only like pre those we be overall volumes in from X%

most is of So as for a we how put was how thinking once it's to of can investors focus quarter? around relative some guardrails the much fully you recent the impact strong should driver of we be kind this a saw wondering, reopened magnitude of in given continued of growth, about what China

things. of couple a Well,

of those to close fairly are numbers our our competitor. First,

to really the We said, Southeast going outbound think Asia. that, first, we are we're from -- as Vasant China to travel see

time we're at still level bit pandemic back think in of Chinese pre-pandemic. States at of it's a to see to United going going back traveler Europe the before or the the I pre level a in of be

I -- think what's are going with to and people within it's China. happening to wait see And going COVID

a But we're about half that China we'll to pre half inbound three in counting to any level spread kind on XXXX. or of gets China into talked starting is recovery fact that a probably the before personal back the Vasant not pandemic five that my second of of the the into before, expectation second of see So quarters year.

have it said around what help will So will And much said. and pretty remarks back than have slower, in our just we then comes -- what I plan If if we're Vasant us, -- the saying, it that opposite his back it's us. built for obviously, comes is it China faster impact.

dollar, by numbers, levels. inbound The XXXX U.S. were the not held above bit that, U.S. is is XXXX is corridors, is open, recovering still and our you lot of terms we've and about still a back and on, -- line a you I we levels trend went three pre-COVID cross-border relative -- Asia know? all that to I Yes. as XXXX through we through so the in now approaching mean, but strong the all are on the levels back are and few below well have that level. went many thinking is a not, are tracking I Asia approaching told of And and quarters of was China quite how and impact, Most for and the isn't. been only you

to that visible. back if that's expect we you and to impact pre-COVID through is travel levels to trend year. original get So the then line, the expect where improving China to going is keep the be index going and And back Asia cross-border to

back. obviously For happen, China we that need come to to

So it is important.

from comes question MoffettNathanson. next Ellis with Lisa SVB Our

I question about of the Visa had a Direct. evolution

You XX% quarter. year-on-year plus Russia the in the ex highlighted growth

a And Is level of Over with for mass Direct? you point a and this critical give the think being over where dynamic contactless there couple last years? should of next evolve a really we tap-to-pay the of about talking sense you of been inflection few dynamic us lot about sort certain for this and growth true years, how can you've reach similar that accelerates. sort then Visa

Visa right. I Direct Lisa, and PXP and Phase before to payments, kinds payouts then would extending focused be a are absolutely into like those on at gig this those focuses. the more cases of chute, through use I which economy Well, out We're or cross-border. say our geographies, think, insurance in you into X, Initially you're in new Direct new point like transactions tends Visa things get things. of country goes remittances

United and get So where to payouts is remittances then get of PXP, into with and and more but more sophisticated use cases. In that sophisticated or kind cases. are phase much of into gotten -- good that first And other countries, some progress in States haven't States, through sophistic start along like evolution into we use going country X go things every this further and more in they'll the gig United economy the then is kind continuum.

other we're frankly, geographies, then And there. still not in

sophisticated Visa So markets we'll to to markets, put them a of left use tremendous Visa to opportunities levels more the amount to in Direct. as focus at in think look more more tank yields on and gas cross-border a up real I better which open to When the well. have I cases Direct take there's transactions, in

line will the bit meet I tap-to-pay because maturity I before of period it, amount theory a of it So you your your of -- single different think the of probably question bottom real although of be say kind simply really a legitimacy a would elevation time bit use whereas is longer -- type is to longer has some that cases, of initiative.

Koning comes with Baird. next Our question from Dave

than world were my guess some of Russia, the place a kind Is territory? that weaker on numbers I I positive negative deconversions, function the thought, where rest had job. inflect debit guess, one-off one question, that portfolio of things? does into back just of X% constant currency. Good of we is when little And a

as remarks, pace at in look it almost than fully and is are happening I having over a particular, And growth think, grew dragging on well. it migrated, we they're impact as And that certainly, yes, ex faster Dave, when Vasant then, the thought. migrations, you a at China in XX%. his Russia, UK so the said ex

comes from with next El-Assal Barclays. Our question Ramsey

us maybe for, M&A potential give what strategy, Or additional you this the on to latest be environment opportunities whether your looking is or deals? volatile? deals might balance it macro is you as could deployment, thoughts environment sheet time remains Al, of pursue more not sort yielding

helpful Clearly, some to We're bit then capabilities and has think a and of the organic ourselves world. value more of to in strategy. through of first valuations, right been and That's and M&A, focused, look there's I to teams foremost, the balloon in from of a in now. terms we continue in Nothing that will growing environment then buybacks bring share fintech on would we for particular, characteristic Visa of than bring But order. growth management and there, a in burst could that the our the little organically. changed dividend

And we're evaluation in options. constant of

us a have think something will corporate better make time a we're very And deal when Ryan We development good good it, a go spent to attached It's particular, to we and of see it. and not that company Vasant, value team. afraid a fair we has as after that in something on.

Our next James Morgan Stanley. from question with Faucette comes

the kind you from think get thanks maybe to effort, about for And how that the for we challenges develop markets, reach lot over a address picture Al, of of some the of at and for and in maturation preferences developed we a penetration, all of for some domestic of and of bigger as time. I given seen to or investors Ryan, And wanted work do kind schemes countries we questions question card is we've level especially eventually especially U.S. one least favor them schemes. is other the the domestic in

ideas how a wondering of reflection thus and of about expansion just think little some you So forward. can should if maturation seen issues and we maybe, we've Ryan, bit going provide on kind on what far,

then Ryan, I'll start, add. can and certainly,

I you across trillions in and of in of still well There spent into of world, see billion $XXX people And about deeply BXB and carded total to worked the the cross-border over space that card when market we and card the on traditional as I the a believe that opportunities, cash last there bunch we where quarter. space, both look I mainstream. payables a receivables, check. would about a the say examples still are talked as millions the course First, in are addressable have of hundreds that hundreds There on BXB of number and financial opportunity the space. -- is tremendous in dollars consumer bring of

good thing. to movement. a helping are That's digitize money systems RTP

credentials the by If at of extraordinarily in positive disruption what it's monetization as today. card by world, a in still ended well up you being terms terms way, which level the caused as in from look India, growth our done acceptance the said the to it traditional of in opportunity in footprint acceptance, also should there's I at it's tremendous that have grow

open more us utilize network-of-network our can systems the strategies. facilitate RTP helping the end as of These through are They're on reach extend more as we and with Visa financial other greater They're leaning X access also helping helping banking them. into Direct we're Tink, end. we and us on to where developers them part institutions us of

I value-added sell think to opportunity for RTPs represent us an services.

at fraud some that in these and haven't of hearing that millions the and has et trusted help -- decades in UPI you a -- security, build And seeing we're the sense. ecosystem management to that space And earn And revenue look and I account with AXA consumer They we those that And in of from Visa them. cetera. Brazil, if capabilities networks. risk capabilities superior and keep hundreds over amount in spent associated fraud think capability, are carded think look space marketplace, the protections, consumers. the things India, at many put with lot dollars from makes to ways, of the the terms by the were capabilities the still associated some clients yield PICs and bring still good fair developed and time secure far I of have opportunity of you the and advantages of a in in these to

add to would So it? you Ryan, what

these short, It's mean, all people. just mature of around ton love in still products. markets, runway. emerging love or We our our We to We world. I great. a see James, love Not we a the add Al. love and our lot whether brand. our to they're that, position We

of So runway. tons

Dan Our Markets. Capital Perlin next question with comes RBC from

at question in the just is advantage how next, travel, would and we it were sounds that really business. you've hospitality? years, more new asking beyond question at take global past it the some really so, much because as months MasterCard in tilting trends, of to I'm morning called their Visa kind it I about look the here when hinting trends, ask is, a wanted your kind say is XX, like credit won, And for kind XX But say, of of not about of how I positioning to out also that. two maybe this up that you even the kind you Al, debit next positioning think or the sets of business let's

for what the brought interested in to be I over you your just the that company. know would next that course of So new two suggests years business pipeline

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Netherlands, look Germany, around Brazil that the We've world, inroads markets with Japan there's traditional when and Chile, made think opportunities the like in I some in last from United certainly to had I the of One, JPMorgan today about great Chase of Bank. Commerce terms couple years States ones America, past I in the over Wells Cap of talked issuers. Bank renewals of lot We've to over year. a the the

and But we've made fintechs great inroads with neobanks. also

have scale months. to around the lot to of in get can a track last as in getting provide wider these Visa great I services. us, We're to think as particular are people who of their wins we And many world. trying have a sure of in we get cards -- had the terms can have wallets lens make a we XX to for XX in markets. record We And

come to acceptance. And to then I'm going back

world. One continue a to the which to to business our grow of growth footprint, the ways great requires around still is acceptance lot grow of our

Chile. America localized from out market-by-market in -- three the -- you of Latin with being last not purchase of Back if of last ratio in of a like winning PV the cash went quarter, combination America moved traditional so just places PV of [XX%] America's with Latin past finished that region their we've volume in a cash. Brazil years. really was progress last PV, look that's XXXX, XX% that XX% was of X.X Latin a America we in swing was years countries on Latin FIs, and One in And with with concentrated couple -- volume spending the in of [XX%] that's winning only from to year approach This is a in Latin full having America. of volume, years. the in quite the good good their there XX-point lot fintechs, even And at the

comes with Bernstein. Our question Harshita Rawat next from

evolved certain you initial starting things some to the You fourth you best very you we'll or of from comment leadership? on dynamics, do that strategy your call. about quickly, Are wishes Al, some less growth things talked but differently? from your focus fiscal your has this XQ? more under is your Can relative can in and miss on that how under about business you to to Vasant decel congratulations. hearing expectations? quarter or And how to you talk organization Ryan,

second that Harshita, maybe we then half can think we don't because your you I can talk question Ryan the did? and of -- got off, knock

between were asking and the you decel, second? you I'm the meant think deceleration I assuming first said about -- you

Yes.

of with a Yes. last just growth is I things. based second on because The a couple QX fees had we Russia first year. impact recognized worth quarter service in were quarter the lag, almost quarters' we mean, service a rates. little of so the service larger fees in two Remember, recognize fees the

fees So so will sequentially, service impacted QX was a lower, QX by that. little be

It volatility moderating as we you little saw. And currency is as been few for has growth higher weeks. Also, incentive is a a speak. moderating

together, all we were it than put a we you better little So expected.

second first for quarter. the That's I We higher now. right the high you be expectation we reasons the we mentioned, As digits know, will in in digits single high thought would single be were quarter. our

Ryan?

XX President been our first and we've we've we've as years, developed all decisions, made Al the as executed I've of been key your and our the for Vasant on so rest as I've of shoulder part now team Yes, our our close question, shoulder with a to strategy. strategy, to of

going three out, focus payments, we've inflows shouldn't continue you, value-added new to laid services. to and growth the probably consumer I'm or pillars that won't So surprise on

going focused our be And priorities on can that doing accelerate are momentum. everything our and we accelerate progress to my to

we we go how work how your And do to clients? we with ship question, more So faster, clients, part product solutions effectively to market, do how of how we do we organize. do how do our sell to

going believe factors. really that month, new reflects all So in the us with our I that to we talked X progress all time. And strategy announced it's growth you accelerate those our we organizational of structure a all this of about earlier help

going quick our you in all lead organization Oliver around a Jenkyn, world. to that, that sketch consumer is give the new a Visa To many of global long-time markets our markets know, who payments includes driving veteran, growth you of of

Chris regional five lead lead report unit strategy new is formally going to our flows presidents our organization, reporting our our So services business who Newkirk, to of Oliver. is directly me. Europe, going our is reporting Cahill, to CEO led me. unit business to to will directly who former value-added Deputy Antony

markets services unit, will report me. value-added our flows our global So business our directly all unit, to team, business new

our that partner And many to round Product just products Technology, world-class that bit, map, who Taneja. clients become little customers. help Strategy on grow a and delivering shipping will you Forestell, focused Rajat closely and also And road with services product their the our Jack know, them then Chief two President relationships their and are of deepen of and out will and with of Officer our their a robust innovation businesses

and you sense gives with the where organization. are a that we strategy So of

from Ken next Our with Autonomous question Research. Suchoski comes

question congrats the Al Thanks and for taking to and Ryan.

a a you're net guidance, because year less becoming I there's and mentioned guidance just that's the Can you from as you keeping standpoint? us prior we what Just half. FX was second second full the headwind think volume only that half I remind think revenue unchanged. of have earlier the I either or you a into know kind that of guidance get

full dollars. about year adjust growth to in that full dollar then we for digits constant for to talked be a be you you for the it high on Russia Russia. for going When a impact mid-teens adjust we and the revenue Yes. was when points year last said at basis of time somewhere And X in adjusted you would on FX, nominal single quarter,

do we and some rates moved math. of you the in exchange so And can know QX. And are have you sort around some QX so where of

now views rate quarter, you still the terms fairly thing be expense the and in to in trends growth second any the right X I lower been changing X half also be change expectations. might We clear operating because you now. not points lower gave points first in in growth XX% to these lower said the second where in on The about to might points are the to is stable. dollar want basically the third impact X what fairly another X have on points exchange fourth nominal based right We We're half the quarter second in points X will quarter. were points quarter. only another X

And that reflects expenses as both year, increase had quarter moderate growth the we last what said that year. will through when the rate we is we as also expense of last of lap levels from higher moderate

And we of we much of you update said trends. any sort So have call the based then once what the again we'll pretty changes our broad next might with quarter. are on those outlines last on

with final JPMorgan. Huang from Tien-tsin comes question Our

you. for and and much, Ryan. Excited of both so Al Thanks congrats to

don't big I that a I'll of the front. you pricing that Citizens names the front and of bunch new requirements, there. call-outs talked front, if win on the renewal kind you'd On on know MasterCard thing? named on mind. renewal deal ask contract about Any

whole Just trade happening curious area? the balance in what's of

it's Well, you there, out know. world a Tien-tsin, as well competitive

had, that you've flows. of there's in in that the other price ideas has the line-up capabilities are do customers' bring and of combination what that kind with to of think have it to the get you we of or the to what what of new a need table, incumbency you then kinds market, experience your kind terms innovative you of and that lot a clients to capabilities of not, I have, services

of is a tried because a bit to client. situation particular different. tend to look always very the depending potentially when their clients So and to things deals every at hinging and bespoke will on deal needs we And their upon talk and we be on be needs different different

thank that, us today. like to with we'd And joining for you

the great additional out feel team. you free have Investor and a questions, reach to Relations have to If please day. Thanks again,

Thank today's your for participation you in conference.

time. You may at this disconnect