Visa (V) 25 Jan 242024 Q1 Earnings call transcript

Welcome to Visa's Fiscal First Quarter 2024 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. [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,

and Visa's everyone, XXXX First Earnings Call. welcome afternoon, Fiscal to Quarter Good

are Visa's Ryan and today us Joining McInerney, Visa's Financial Chris Chief Chief Officer. Suh, Officer; Executive

section website. replay will posted highlights archived being the webcast A This XX site has on be website financial slide call A Investor been deck on is containing Relations investor.visa.com. at of for on IR days. our our our statistical and

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

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

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

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

afternoon, Good for and you everyone. Hi, joining us. thank

We XX%. rose a constant at X% payments quarter. remained year-over-year with in with start the X%. transactions resilient excluding to volume, of volume XXX% solid XXXX. in levels, cross-border quarter fourth spending Process growth payments grew payments XXX% International X%. XXXX Consumer volume in first year-over-year. at U.S. XX% grew year-over-year from Cross-border intra-Europe, volume travel off dollars are up rose

non-GAAP up and EPS Our GAAP EPS XX%. net revenues X% increased XX% up with

about including partners, themes. wallets, One, acquirers, flows else. As a key to value-added remain and wanted strategy fintechs, quarter obsessed services, highlight reflect this across consumer I the and neobanks, serving payments, traditional new execution on sellers, our customers, of few everyone bank our we I

transactions new clients we cross-border. a strategy. innovative business we and market our have has us new Our our to our no emphasis are for with to of brand seeking solutions all across me with relationships on drive network Three, X amplify in particular networks, focus themes let our to more use we network. across new forward those continue the quarter. of ways seek cases Two, looking details some with pillars matter value With all on and verticals to partnerships, mind, innovative in our of service deepen provide And new partners for partners. our four, to to gone the on add always enabled

with X.X more X%, consumer grew start have growth credentials, We now and tokens and Let's payments. billion continued engagement. than saw in we XX%. network acceptance up Credentials

And of let expanded two where acceptance. examples have Acceptance highlight locations me recent XX%. we grew

Brazil credit lottery The boletos. collection, lotteries with debit conversion at first now was in and their which Caixa and accepting are They are Visa for pay utilities, XX,XXX to for payments, cards cash called tax voucher branches. over

code XX merchants. million-plus XXX,XXX the local the to we footprint. signed than global mobile Visa they player our in-app Pacific use at where enabled in financial was more expanding example agreement their now demonstrate with to client cardholders approach our to Another with Bangladesh. QR in bKash These country pay acceptance services examples Asia Visa's largest Direct, bKash, an in Already have a

with those debit study In a saw, don't month average, we environment, a play U.S., who in acceptance. lift have two One recent has card pay more enabled U.S. quarter the and in Visa on we the tapping to the we to provides In XX% We excluding seller best the last transactions face-to-face first $XX that and those Tap globally, XX% Visa tap. the the reached tap who in spend transactions a a face-to-face points that Lowe's to X buyer is believe from out grew of seen for year that and penetration. U.S., month from experience versus percentage tap results. highlight pay the of

In Now and renewed deepen as from expand and and new some partnerships with as XX its million updates ones. the our which on well agreement to credit create for the quarter ability our we private in Turkey, Europe, consumer cards to demonstrate debit largest commercial Isbank, bank portfolios. noteworthy with

commercial of for commercial part Olympic PKO Polski, that outside card and we new acquirer agreement they and credit spoke portfolios. of network As Eastern the about we and sponsorship. France, in in Continental partnership Paralympic debit. with and in all I Piraeus last Poland will and attractive Games Greece, the the renewal, signed their Europe and exclusive Europe the a issuer expanded country, bank in across are issuing our largest the debit consumer position issuing strong quarter. These largest be their Bank, Bank and payment In our credit Central Poland, consumer become examples Europe of leveraging to first fantastic with In pipeline

suite Marui. is partnership which Korea, their help renewed Services, our Japan, Card, including client's we use EPOS, in for consumer also Visa's country, issuance issuer our They business. and one execute the committed with to advisory fastest-growing Shinhan and a In affiliated Managed country has the credit value-added debit. a Visa and of expanded commercial our initiatives. services, solutions expanded store Visa In largest against where and to with we organization issuers embed the advance will within the department in part to employees of consulting utilizing marketing we key of credit Shinhan partnership a with

consumer In and with advisory and commercial value-added BBVA renewed including across services, agreement with debit Mexico, risk, credit tools. along data we and our

Visa's service, digital Insight And the U.S., for Order Secure DPS XD services, platform agreement we Verifi service, and America debit of extended processing. service last, in with our CardinalCommerce including value-added Bank multiple loyalty

of world. the be to a for partner continue fintechs also around choice We

the Starting utilize Shine we the than solutions contracts for their our across the portfolios multicurrency offer Through for for Zing debit our finally, America, leading are will markets. value-added card and Currencycloud about Latin their in including renewals largest in with debit and Tink, and global and a Decision to And on They proposition initiative, deployment consumer we partnership XX can region renewed more fintech the rapid building customer well and new HSBC. the In supporting with through Rappi, CyberSource of merchant with credit powerful services, million new U.S., this a U.K., offers. we relationship also one credit numerous HSBC in secured you payment Visa's launch Visa and these focused proposition XX capabilities Direct. are for how excited Zing. are than we fintech capabilities a see Visa deep all the we partnerships, ambition builder and more and First, customers. with as fintech as renewed clients with Manager.

Now to new flows. moving

updated data sizing using available. We our the flows the have opportunity new of latest market

and $XXX Excluding Russia GXC, we across and see certainly China, of an BXB, number. enormous BXC, opportunity PXP annually trillion

We network deliver Visa's with clients money of working these our commercial movement on and our help networks. are solutions to to flows digitize

to Total quarter grew XX% the billion. cross-border XX% transactions Direct. grew Visa on with this PXP Starting transactions X.X front, than And year-over-year. more

highlights for been client new we of for verticals we quarter, partnerships use and drive and terms developing have are cases this cross-border to In volumes. continuing

receive now in card. to This of their on U.S., Italy, quickly debit in new Visa existing Apps launch, U.K., launching use ability have Meta, to the PXP partnership relationship expanded the safely. out cash Direct cases, we a payouts content live their creators First, and allows U.S., France the Meta's in earnings with creators to for our addition our and to Family for in

just Second, and partnership X a endpoints a cross-border global covering will long-term across enabling we Visa agreement other cross-border make Western bring signed This great XX Union regions. long-term collaboration to volumes, and enhance billion with and product and customer Direct to We innovations on across Union, have movement. movement countries in global nearly XXX example. digital-first issuance, our money services experiences progress is countries continued money X.X Western in territories.

and We relationship with bank expanded to to globally. also over eligible cross-border enable countries XX XXX debit Remitly to accounts customers in send payments our from countries cards

recently China, In destinations, Canada, agreement with in remittance ability to announced digital CIBC the clients Philippines, we wallets millions and the key to including Simply provide send Bangladesh. money and of to our

the constant commercial to we verticals. dollars, On and side. throughout new to grew volume on X% Total continued payments in quarter, the focus

Let few a areas. me highlight specific

recently travel virtual Nium. Australia, BXB card First, into and Japan. expanded Hong payments quickly. agreement intermediaries from in global BXB a virtual U.S. with the in travel and for pay our Worldline, a platform, Europe cross-border Singapore, agreement BXB expand Kong, Their travel vertical, to will Also we suppliers new travel, the their leading signed card program with Singapore-based more we provider

relationship Bank platform Subcontractors has fintech Overseas the will In commercial the further cards. payment Visa, the UOB, expanded financing recently for across given their a credit, the the Singapore In embedded and be we with renewed debit provide for partnership Doxa been option for agreement signed and And also United enhanced an we to enablement services Doxa, virtual Singapore and our capabilities. to paid UOB commercial government. vertical, of with with contractor flows be including contractors. through

me Let services. to on move value-added

Our value-added strategy also playing a key network in of services. role is networks

a matter for and on all money a transactions value-added no to our form available factors; the components: all all and this As being two, reminder, three, point three and one, endpoints connection providing services has all to network. moving networks using our single partners;

value-added have strategy. We part and continued services develop our as expand to this of

funds service FedNow, financial Pismo becoming three Last cover enabling Prosa. for the FedNow through me is receive quarter, institutions Visa examples: networks, I RTP for capabilities and service. Let that processing certified to recent noted a provider

We also ability to have enabled send funds. now the

week. The second we just example closed is Pismo, which last

the clients, there increasingly on CEOs. of priorities As that clients the particularly world, around I minds to are issuing two talked are

or embarking tech their on to our of cloud-native on of many infrastructure for stacks. clients, stack recently is, first tech considering they've API-based a are legacy embarked either The transformation issuing from their

looking that and to they fintechs, second world. traditional markets especially new regions many to countries, issuers more or whether their be expand The developing are clients, is rapidly around issuance to the increasingly

issuer global as to multiproduct Pismo clients to And them and networks Our both world. with we the clients platform cloud-native Visa be core with Pix. and debit such banking our core these local banking of looking to Pismo, processing issuer will in help able with payment to connectivity processor to and offers covering the commercial best deliver are priorities. credit,

Our for to world, transition accelerate to expansion cloud-native for global issuing partners goal and our platforms. is choice platform the the of Pismo their them enabling be to around

We The expenditures; new two, domestically. processor has enhanced businesses personal today, lay things experiences a Prosa, better cash and such limited in pay This and develop and Together, one, And to the and issuers local and in further payments to our these the includes bring help our networks and represent be example We and risk for also interest announcement in both products the country. majority more. to Mexico. continued calendar we acquire than paid. face-to-face ability the investment in couple payments Mexico ways providing of small in tokenization, a second market: security of digitize A to the XXXX. our innovative Visa about consumption is for consumers, process safety, acquirers believe more Mexican and subject we transactions. investment half to will value-added can commitment and improving of hope regulatory online third check review, through groundwork of XX% year to services is network can and and and efforts our of to reliability infrastructure bring innovation close technology as

with This we opportunities And to joint Yesterday, for will services solutions products the to value-added additional expand demand new a an plans launch enable to enhance and the to distribution These to channel for workflow announced issuers with value-added partnerships. products offering an showcases drive end-to-end and customers us segments to solution in our time. management Visa's partnership to around via globe. the services finally, growth overall of distribute To and I distribution and over reach to more ServiceNow agreement leader, highlight ServiceNow, development build solutions want start, reach. the provides compelling digital and customers. our further disputes

paid. maximize long-standing our implement What value-added strong renewed new innovative payments, across is FIFA, pay not innovation new powerful So and recently all an to our opportunity for with our reach, showcase to clients as drive Visa's in commitments to relationships, technology. providing and clients, payment consumer global helps and partnership as to a these efforts opportunity and to We you lift and can of enormous mention amplify opportunity improve business services, ways and flows well both be Visa's see to brand. Visa our creating brand the

the one our with sports planet, for launching teams providing first sponsorship brand of in also the years is sports more drive The fastest-growing on the partnership We Formula clients. Bull to are new XX Red One Formula within aligns business which global teams. another with than One, our our X opportunity

brand all excited year, Games with of As activating partnerships our Paris. we well as in across our the we're these to Olympic Paralympic as clients this and be ahead look

to mention Chris, wanted Before our I Tuesday. over on held to I meeting hand it that annual we

proposals the the Board exchange recommended program passed, of offer the proposal. All that including

an As initial the such, to promptly we S-X offer. exchange will with the file relating be to moving SEC

I to thanks partner a my and wanted Kelly. give to friend, Al also special colleague,

he Visa for the behalf your entire retired officially Al, thank on of of Tuesday, As you Executive as exceptional family, leadership. Chairman.

You many business ways. while relationships client led heights innovation, our so strengthening this our incredible driving also to and culture deepening in

Your for visible generations. be impact Visa on will

of across globe. In effective closing, the in quarter, Visa the our strategy execution once first again demonstrated the

remain optimistic the to While experience confident and through Visa challenging discipline our I environments, about the uncertainty seems norm, future. and and to manage be has the

Chris. to over Now

everyone. afternoon, Good Ryan. Thanks,

growth a and in process overall growth cross-border As Ryan was volume. QX relative quarter volume payments with strong and said, stable in solid transactions

our dollars, X% at was growth, intra-Europe, up constant In year-over-year drivers. was in transactions payments volume excluding Cross-border year-over-year year-over-year. process global and volume Looking constant dollars. up X% XX% grew

net constant and XX% less nominal on up high the revenues end dollars. X% of in up drag. GAAP in EPS to up quarter which incentives constant and first XX% primarily was expectations, FX dollars, in due EPS were lower-than-expected XX% was and nominal our was and non-GAAP Fiscal

grew Now to X% card-not-present Card-present the the starting U.S. year-over-year, grew grew and spend grew credit X% with debit payment volumes on grew X% volume X%. and details, U.S. X%.

throughout U.S. U.S. together, the December growth look with QX of XX basis all peak softer Putting across we saw weekends all at to in combination QX primarily rates payments growth November, total it stable. payments to monthly a was we weekdays segments spend and last total Reg compared year step-down from and low the a II. small to a low quarter, volume October in volume in favorable As between. from from points few to mix a relatively about in modest and has remained items, a due spend impact October a and less of high of including Consumer the

Our across indicate change any not consumer data behavior does segments. meaningful

U.S., in holiday the spending is from year. digits December to XX. Moving X In spend, consumer period to was last year-over-year spend Consumer mid-single retail growth November to which on the holiday similar basis. the a growth was

retail much its from increased spending Cyber growth Monday, year. key Thanksgiving spending on days, last versus retail However, to E-commerce shopping was stronger. share of

were major payments volume growth to up in in dollars, was for Moving QX. XX% about where with the CEMEA in Payments international most Europe constant U.K. constant total growing to XX% markets Latin stable strong volume each regions, and America, growth quarter dollars. rates ex

increased to QX faster excluding speak volume was adjusted spend excluding cross-border, to from slightly up cryptocurrency year-over-year. transactions. travel-related in to cross-border in XXX% and purchases. year-over-year. travel in on XX% The travel, grew XXXX dollars XXX% which Cross-border card-not-present volume grew intra-Europe index constant teens, Now I'll low Total QX. volume growth, cross-border than XX% Cross-border the expected, to for in

X to travel versus XXX%. QX lower XXXX XXX% XXX% of and continue indexed up levels Asia from to points quarter, the XXXX in of remained for of LAC, relative below volume U.S., inbound weakness Australia than volumes into see and to levels. expansion improve was was of from of but continued to of improve out to volume out XXXX up primarily continued from several China travel XXX% out the we QX; and And levels. This Europe U.S. ranging while both travel in and due out levels. points in XXXX CEMEA healthy and Asia, last Travel points Japan. X Travel Mainland to quarter's at

starting financial revenue results, quarter with the first components. our review let's Now

new and into further each offset of the as in either as goes our usually growth revenue factors and quarter, this result, effect pricing First, any benefited October, a enhanced April components the additional by as or follows. were rates

up excluding additional volume and Data growth help impacted in Other from grew dollar revenue. process from mix XXXX the constant XX% services versus XX% by lapping currency FIFA-related with versus revenues dollar International X% payments transaction value-added benefits. year. business processing X% services. cross-border some versus revenues strong revenues increase revenue helped transaction revenues Service XX% growth constant in with were QX grew growth from impacted card by lapping XX% X% by volatility grew the last but from primarily growth strong XX% volume, consulting value-added intra-Europe, year-over-year

grew driven strong as payments client XX% three incentives in growth as volume. growth relative than and Client and volume well process ended payments lower but our consumer to transactions up growth deal timing. stability was expected by Across in due engines, cross-border growth performance

remained new and relatively Visa impact. in several constant in rose underlying transactions new Commercial single Total low business year-over-year This dollars X% flows, items grew Direct and drivers to grew onetime due mix flows in in stable. XX%. digits constant dollars quarter, the the year-over-year volumes revenue

As there but grow most and consumer expect to we than are takes, and revenue payments new to full you continue know, can faster revenue. for period, flows year importantly, any given XXXX stable drivers be puts

In QX, strength solutions. value-added constant XX% acceptance in dollars in services revenue billion and grew $X.X with issuing to

GAAP Non-GAAP in The an decrease somewhat personnel X%, operating increase in by expenses expenses in an primarily litigation due provision, was expenses. grew a in to offset X%. driven declined expenses the by operating expenses. personnel increase decrease

from income equity million, of gains was $XX investments $X non-GAAP our net million. Excluding nonoperating

of and from XX.X% XX% Our up GAAP helped $X.XX, an exchange last EPS X.X non-GAAP benefit rates. approximately was $X.XX; larger-than-expected by was EPS tax inclusive GAAP tax was our rate was point over XX% non-GAAP benefits. year,

authorization. buyback to in $X back in end we and remaining bought over had December, of dividends $XX.X stockholders. the QX, stock In approximately billion At we in billion our distributed $X.X our billion

X% parts January XXst. debit X% Europe, in to cross-border to Process XX% or the due grew payment transactions transactions excluding year-over-year cross-border XXX% severe of X% and let's U.S. X% move year-over-year. up up ex largely to was conditions volume, cross-border volume intra-Europe, down excluding U.S. grew up Constant XX% dollar card-not-present from weather far with grew grew the what XX%. and within so December, credit XXXX; Travel-related Now year-over-year, we've year-over-year. to in through seen volume, indexed travel

that Now defined constant on acquisition and to our excluding in basis adjusted dollar impacts. results expectations. as non-GAAP is Remember

these earnings detail. for presentation disclosures more You can review in our

increase recession we assume to drivers, For revenues the net changes our growth. II full a outlook Reg or no further adjusted for impacts. material that no have our or EPS year, Remember prior drivers in

Pismo an approximately net full and minimal headwind point expense is and X.X year non-GAAP revenue have growth. to benefit growth EPS to expected to operating

expected FX net is expense drag approximately minimal and revenues X growth to and drag non-GAAP approximately to growth. point to have a an to non-GAAP EPS X.X operating point growth benefit

Non-GAAP between matters. to income half of nonoperating is the $XXX be nearly with and non-U.S. some expected due million resolution QX million, tax to $XXX in

updated it adjusted to Putting adjusted unchanged growth expense unchanged adjusted together, double net growth double revenues low teens. at digits, low all digits, low is is is growth at operating and EPS

For growth to Pismo an the operating growth. FX and to quarter, X.X expected to expense benefit have growth growth expense net growth. point is revenues non-GAAP to minimal non-GAAP benefit second and EPS and year, minimal X.X to benefit to operating an and minimal drag similar revenues have to non-GAAP headwind point is the approximately EPS a full net expected to approximately

XX%. the net revenues mid and of adjusted low north expect digits, expense single the adjusted growth growth in to operating high in We upper double digits

noted matters, in be Nonoperating I highest as to some of is earlier. to income resolution QX tax due expected the

the quarter growth such, the puts teens. high and expected second year the with unchanged. This is QX rate XX.X% tax to XX% in full be in EPS adjusted As between

our quarter. the and of In summary, fundamental of strategy stable, rest execution we changes full the the relatively start XXXX. remain material a on drivers to with solid focused no year our guidance, in remain we're off growth first to for The

remain As always, considerations. if event there's We long-term we of course, and our thoughtful changes business, between our balancing an environment the that short- adjust will, spending on and impacts plans.

go let's Q&A. to And now Jennifer,

to and questions. with we're that, ready take Chris, Thanks,

question first Our with Instructions] Huang [Operator from comes Tien-Tsin JPMorgan.

question a bigger a here. Just clarification and want

on issues? come Just clarification, How there quarter. volume other metrics versus was flows line. single plan? it on sounds here, midterm? PCE know Were my volume U.S. in the then can up and the digits a to clarify question you the mid-teens Because digits did running in pretty in new factors short there tight of in the I low Reg like were that gas to lot the U.S. in just PCE. mid-single versus relation e-com And just onetime II, some your like here to it's on growth and but last are view

I or your Chris Why correct Ryan. add part it's any second the first then answer second of don't on and on part. can the part question the Tien-Tsin, and start

of the remains I expand banks mean, cash, bring or work for mean, lot to U.S. people We're I about think carded service tap a let's opportunity We're second doing great front. very, us more I in excited fintechs plumbers U.S. significant parking, the lot U.S. back industry, way to consumer payments. and to up acceptance, checks, a pay. the still we with on a having of contractors, continue in for very a in be of vending, a ACH. the market. there's charities, to work whether it's lot

PCE, can big quarter, it like about. I as continues to the you and for in there's you said, the relates in But detail, factors think growth it look to us. forward, talking as add a were be the on Visa-specific as some some opportunity U.S. rate Chris we

continue be about it. We to excited

the the do to of question anything want part first Chris, second? you Tien-Tsin's take on and add

growth exceed underlying growth to to XX%. growth. remain Visa commercial importantly, the flows the our Direct be payment revenue Yes, And X% of fundamentals consumer expect and business so a continues in engine Visa. new Commercial volumes Sure. flows, the We grew full year sound. for do grew business new revenue transactions

typically first onetime But larger all given in QX growth the few we items normalize; business, mix and Now first, impacted with to see continued in impacted trajectory of slowing it by ahead. might also the was around we question growth travel your about business quarter. than couple volume second, the growth cross-border happened all, by specific long-term great of that a feel be and any the quarter, as to the a in was to factors:

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

just wanted you priorities, services think a alluding ask were around to fact it with Ryan, responsibility part the services. a point partnership sounds thinking and And ServiceNow to about great the to be obviously those example. this want may I partnerships we I get what with all bigger to the you the kind that that is be at I'm to this as of within and these just like, the is financial shared new growth, on some value-added reconcile question should maybe how value-added going opportunities partnerships a of picture trying But do Visa to maybe opening company. up the two of networks.

advisory Again, I ServiceNow the excited up our back very value-added before the specific we're performance services progress efforts excited and about that our banking. question success open Yes. acceptance, we've issuing, see of partners, sales answer the I really We're and seeing made We're and about on identity, excited if momentum in about driving the to that market. kind to across and risk strategy. we're

world. already as with partners and What we're demand our through users platform relationships their various of directly we platforms deepening tens a efforts more partners or, they're ServiceNow. selling exactly value-added way finding like And one with differentiating saying services or or relationship But of thousands have lot around their getting have with can to customers that were our in as and their a it's customers. is also country great you very in we're different from to of some sell any the region. cases, thousands excited And

clients, in dispute clients services asked And talking the the so been example to in and bank bank been of for interested we that their they of had their ServiceNow, and provide. some had

And so said products pipeline to prepared on. their going working other of deep remarks, discussions services dispute services ServiceNow. in that I platforms a value-added solutions their We've with a and we're differentiate market to the bringing movement we're services our as got first, with them around via platform to about solutions as our and we're in with way add our users. world and money And other value my

Maurer next Our Craig FT Partners. from comes question with

are there? you Craig,

Yes.

me? you can hear Sorry,

sure We can.

Okay. network. in the you little be more perhaps appreciate the I'd a quarter, Visa Great. II comments around can just U.S. Reg move in And your onetime some detail detailed volume bit you're I seeing how wanted the items add second, can ask that in around if it. if and you off the impacted to

me little bit the specific of questions, Chris, hit So Reg Reg and about those and business let talk both of a onetime you II, aspect II then items. can the the

which been I do. important the and various levels the II the the differentiate now in and to And more before, debit than just transaction great. services we've really is point in to that really different at months side be we We're It's a ever observe. to X at honest, to had And with products, us it's Reg conversations our from to other the highlight things opportunity of think chance products this in our our what on since clients dialogues. the have had And a about especially discussions, great for senior U.S. we're alternatives. engage we've merchant getting our a chance of having partners Visa good details really organization good we're

into so And features results client talk that to client months great and of so our good success. to far, The have conversations so great Direct The able about results we're far far. feel X having positive. we're about them really finding benefits as and been Visa this we're are sales by the

you want pieces two hit So specifically? Chris, to the

Yes, will do.

a points in QX. Reg U.S. volumes XX about from the U.S. yes, growth II, II on that modest modest slowdown did also that few the the we're things. so Payment and basis things, So of And couple to days, some talking of but impact spend the October there as Reg we indicated, see a due primarily is were mix from in One was down QX about. softer we a to smaller impact was

of important meaningful So routed not actually to October. volumes seen away any to It's note, we've a being things. changes since couple

impact rest for modest, past the over and shared assumed all, of what we really actually in that's the and So year. is we have hasn't all the the changed quarter,

part U.S., second II items, little in your to onetime the things Reg bit Now about talked the and of question I about slow your October. a the

The flows other about business. in place onetime where the I items was talked new

ended I growth metrics. the I And on impact all our clients see full we things. or fundamentals the being the and it's a and these were incentive of their impacted to doesn't As true revenue, course business, remain you of by of based all, about down the normal It will revenue one. first consumer The change I'll cross-border there as year revenue. In continue adjustments talked And then larger give outpace growth a for onetime of One, might that quarter. our on which in travel. flows us typically couple up expectations business But our concern. for in an healthy. normalization said, items, than we gives something up not quarter, our net rebates underlying example new with these secondly, reported in the regularly was true

Sanjay Sakhrani with Our next question KBW. comes from

has that can then there's severe a on year-to-date, maybe, because a guess weather. just question that better? little about I reaccelerate to if do volumes beyond expect curious spending weather the on sort any you Or softness I'm bit. you of that. the been And speak the just slower maybe just gotten

we've week that it's few extreme the in the the that's January. at looked in to many Yes, hit Sanjay. you of a see of down slow growth U.S. examples. I'll give directly really did closely and cold weather correlated it, we parts And Yes. Thanks, first

few the degrees this. of to XX January. know weeks the anyone XX negative of first Kansas week For in in We they last from City, in December went

so growth growth pattern to the we to nearly growing highlights Kansas we stable week. digits another we've our about, maybe and the that saw, a following XX one go January out January. weeks there, with then XX in lucky mid-single in that the in was City are degrees, and to no same San mid-single-digit saw dropped To example, swings mid-single of into third was X example from volumes third XX take we in those volume week, third and card-present the And and first below And in that saw enough degrees declining exact it that in digits. and be Dallas, seen Diego,

second patterns be They part weather-related blips, get type tend the your smoothed the of the quarter, tend and we've these And news question, the over to so good to of course of before. seen short is out. back to

Our next Research. Ken Suchoski Autonomous question with comes from

about year growth to in which out But share implies EPS EPS I the XQ, outlook. like the fiscal to just EPS ask that flow quarter-over-quarter. decline low-teens trying to you're where guiding growth. think growth growth to a the it you're through figure high-teens wanted It I'm why doesn't looks in mid-single-digit full to guiding count I figure

there's would back the that, reconcile year the you if us not in Maybe certain of help half great. can be that we're impacts that So for. OpEx tax, some accounting

It specific QX. Yes. is to

range. QX mentioned That I think EPS that matters I on had resolved tax QX that some our down in which line, helped the rate same also NOI that into hit XX% on then were of outside rate the call, the some benefit growth specifically. the in the also tax high-teens matter U.S. brought were there

For change the for full rate. it It tax doesn't outlook year, growth. the prior doesn't EPS change our

with comes Bernstein. Our Harshita from question Rawat next

follow services. to up want I on

you we Given growing growth the about quantification And volumes' of CyberSource, just have so your processing maybe how to rates, DPS, here. card drivers almost regards revenue cetera? services, are a et expand risk, expansion. are some these here to increasingly guidance than value-added to with clear penetration, services, your faster us Xx attach give geo growth, important trying They're can overall composition also on the insights, your

you. thank Yes,

cylinders. As was think strategy on saying really earlier, all I firing the is I

strong. cylinders. are TAMs is generated remains we were you firing demand year, client business. as saying. Last about all on in The Our in services large, the The value-added billion execution $X revenue

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beyond Our is disputes on as especially expands U.S. just mentioned all business really success. cylinders, Verifi it ServiceNow great outside around earlier I is what having the firing

is the really that and Advanced to risk been identity be to various resilient Manager, proving Platform, different very bringing business products Authorization Our Visa we've high both Risk all growth, market. Secure, our solutions and Visa

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really about it's and the Thanks feel product execution, it's we yes, question. the So for it's good delivery, pipeline, results.

Deutsche Keane Bank. Our with next comes question Bryan from

Just of to get couple wanted clarifications. a

about quarter, Chris, think and a would I point be low quarter, in accelerate you first trough at the would last talked forward. going that see growth you then

higher a secondly, operating for nuance think, anything to slightly And trough. Was double, to low factor the then versus there is single high digits, Just just to on the to I double there single it mid QX in expense QX high so if in just make being guide of new just else report the now. that? was constant trying anything was sure from, low to a currency

language, digits just up again, of to to an similar that single was, point, digits, at your and performance. high sorry, expectation outlined benefiting to mid- at the going high high into end largely range, -- Bryan. from that guidance incentive timing we set did in of backing Yes, the high come which QX, so that We time, Thanks, mid-single to Yes. I you gave.

in which ago, accelerate terms the that have incentive versus high in high half variables the performance of We ago, range we of hold a QX, year we but many year in about similar second growth a expectation lower true. into lapping And of from was a half I the quarter of that X to talked continue the lapping X from do volatility, terms ago year. growth and of lapping cross-border believe, the growth anticipate those, a will half

of into we're things. OpEx, In terms guide now for do some with two full slight of updates of the current year the based FX, rates. have OpEx, including the on FX impact been there's terms in is to up the your the the that question One you primarily of yes, Pismo on changes and picked acquisition guide

comes Securities. from with next Jeffrey Truist Our question Andrew

Is for little really markets merchant growth volume growth. dig acceptance even kind It driver the to continue sustainable? growth highlights like that maybe sounds in of slowing rate a that a we the as key expansion? of wanted in I XX% is Ryan, little being or overall bit acceptance possibility impressive secular continued on to the volume think Should the where mid-teens opportunity bit. growth that a about

I around teams of talking economy creator of there to are small world, and add hundreds you sales there. still aren't to millions on businesses I'm pushing them I'm possible that our much as travel and more. mean, Andrew, kind around that And that, the when to you world, Listen, as then add the our of for network. what's if you happening the

You opportunity think acceptance in literally about billions. can the

world getting can world around ultimately, are teams you sales PXP others. ultimately a that the think where we like small you can tap and X our into a every the and out things penetrate billion only and around we businesses every imagine different not world can the around Phone is become X-plus but working million about products hard, as individuals to device space billion, So scale. creative, world figuring device rolling that to handheld I pay the acceptor, tap micro X acceptors our billion, out XXX-plus all serve ways the those Tap of further could and a where space becomes there at mean, opportunity CXB out

give been in opportunities were up we're XX% So of those we I color that alluding out world. around several other last we've developed bKash markets doing and of the to and growth the like bit a to, -- hard felt I little prepared remarks, to as you good, the Caixa. my the XX%, last pushing acceptance tried, emerging to for type really just in with be markets in light players of there quarters, all continue things we'll locations. And XX%, you think

James Our next comes Faucette Morgan Stanley. from question with

slowed January. thought you volume 'XX, XX% back XX% assumptions X fiscal we to kind roughly your the on It to looks travel and growth. of touch the XXXX. to And low from maybe to it to improvement cross-border see outlining in point when percentage in Wanted be you're would for XX%, a like compared it XX% X

component. you Just that where that sense? an we be do about Do about Or trying a get more wondering you've to at bounce so should in seen you think assumption Now we'll going should sometimes sense that something to visibility, have how thinking least you an low makes area back think XXs? closer as forward. some where think that forward to of January this is we

in to QX year. specific results little strong, composition we XXX% the total. was year was feel and related And which business. and that our low of region into rest by AP, when business travel, expansion to Cross-border teens in really about index out the well. had Great. XXs, inbound, Thanks, The cross-border to line But outbound, had of good clarify understanding We it see our XX%. for also helpful. were XXXX by James. a said, you XX% well, also indexing again, XXX% slower bit cross-border low in little a but going CEMEA, impact in as continued in the go in in about between repetitious start Australia which had XXX% a good Japan. results, travel up on and U.S. is than growth QX, growth of to for good the growth; as with is the the saw in e-com but with to lagged AP in did to Yes. and and and and continued we XX% in our travel portion to worth region on performance, LAC, XXXX, war through, feel cross-border QX both not necessarily we of you in have stepping XX%. I of this into just at large important our We it's outlook we a relative terms probably do until came some I'll in QX that the number, you And the and think those, U.S. In strong the from QX one really did quarter we to improve as e-com. said up region numbers thing think almost XXX%. And levels; feel expectations; growth XX% that guidance second, great click and mentioning, volumes, the the some or about of looking Middle healthy that, the East at the I provided the Europe back, that; was

Our next Citi. comes with Ashwin from question Shirvaikar

implied. drill digits; drives is, there's to fiscal mid- single expectations implied or upper what to high question second I results, growth, it? expectations that's so And around 'XX given expectations half of sort down QX QX digits, for the of into an single acceleration just want

you break there was I Yes. second Thanks. do and revenue drivers. two think how implied then on I'm question feel questions to because, one, the the going down that about guide into said we

year. little start is the me so It And resilient. has maybe was to drivers. those with they talk even quarter, We're fiscal importantly, stable because And from with remained solid I'll And the the second which quarter trends are a bit let consumer QX. X different. a first, into part

continuing half to that the drivers average continue in reasons: sizes shared the tick second lower as to look of into half we see previously. in we've should certain in particular, last the rest of ticket continued one, anticipate year, the markets, in about progress we're for we our seen international slightly up LAC we two year improve, ticket lap to in regions; As the of do sizes for the year in inflation processing we've and execute in the and wins we our example, second, U.S. growth against initiatives global that second

start So a that's our Today, modest on talked QX, trends. sort We of question that the the QX dollars, II year first was we've reaffirmed really a full revenue. in stable good actually that includes impact we the Reg year, and underlying for constant your had about. of net revenue guide solid then on drivers. And

good for feel rest focus we continue outlook about QX. the of the year, to on about We execution. we'll good So and feel the

with UBS. Timothy Our next from Chiodo question comes

issuing conversions, you be banks, potential and little the a I more marketplaces bit terms Pismo cores. sizing. away into the offered future? core to product potentially talk fintechs. bit. The midsized ambitions and website in earlier want for if moving to the kind little will? the And in to dig sort large over their core legacy your mentioned about of to movement And of talking something new talks they cores, U.S., modern sidecar wanted about clients are bank are legacy by also, I of banks, Or and these the into systems about core you we in from for the a Pismo the the potential

cloud; is go to want U.S. enough processors to their in world, to they trying is, me narratives and led the over the all the question priorities thought options banks we we and legacy expand, Timothy. step big-sized how in we hearing world my second to That over stacks us, of over help a we've where find. CEOs cloud-based they're let processor tech from emerging that banks, all from found remarks then the in was these and over best So could again, that provider your that Pismo I back Pismo. issuer one, don't hearing bit to mentioned over the these of markets which the bank for what prepared core that medium-sized, to transition and and and world, search they And answer been the and have especially directly, them. about led us and make talk this

banks Brazil, sophisticated some clients is Pismo biggest so while in and global. banks the world their of is a Their as fintechs. based in platform and most today And medium-sized down of are well as mix the

they So different And my of client a the the prepared today have in to our ambitions, ambitions this said are I our mix remarks, want types. banks what we preferred which already is around world. of be provider

about banks answer banking specifically midsized their for absolutely. short platform, in asked core U.S. You the the is

in not about but their the our not and U.S., issuer in world. have capabilities issuers processing solution we debit, a we using just think large that prepaid, just debit, Pismo think banks is be but commercial, you the the U.S. absolutely for globally, could As credit, for today around which

platform. So yes, global it is a

have ambitions. We global

ability world, we we we the and big small, banks, that that the relationships with good the in feel distribute privileged Given around the U.S. have to them. about our the relationships product to have, and

Bank Our of America. from final Jason comes question with Kupferberg

change ask transaction think better were both comfortable down single-digit we're the process in F those did started expected know wanted I modestly off than in Just in little kind of than but incentive I and also, we fiscal range, thoughts if for ticked 'XX in any January. high little around still 'XX, QX. with guidance? year. volume a in And you bit looking growth for growth less low dollar this your to double-digit of a

Yes. Thanks, Jason.

certain half I'll sizes driver on recap I think from the a LAC benefiting markets. executing I average wins full Processing growth questions, to very number the I answered regions a in continuing international for some We're year of in and summary quickly in just level. but outlook U.S. is ticket the of initiatives the in at inflation and drivers, second used example global our minute a reaffirming that the ago.

then on repeat drivers. yes question to guide first your your second so And And for reaffirming the about me. sorry, question

Just on the incentive guide.

incentives, yes, for full change outlook On yes. the also Incentives, no in year.

As That's to, that. execution. growth. updated we we'll you guidance the on where focused. We've and QX net full business And for we're revenue manage our focus continue said, know, the like to year I on

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

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

in conference. you for participation your today's Thank

at You time. may this disconnect