In This Article:
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Net Revenue: Up 16% year-over-year on a non-GAAP currency-neutral basis.
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Adjusted Net Income: Increased 19% year-over-year on a non-GAAP currency-neutral basis.
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EPS: $3.82, including an $0.08 contribution from share repurchases.
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Gross Dollar Volume (GDV): Increased 12% year-over-year on a local currency basis.
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Cross-Border Volume: Increased 20% globally for the quarter.
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Switched Transactions: Grew 11% year-over-year in Q4.
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Operating Expenses: Increased 15%, including a 1 ppt impact from acquisitions.
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Share Repurchases: $3.4 billion worth of stock repurchased during the quarter.
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Value-Added Services & Solutions Revenue: Increased 17%.
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Commercial Credit and Debit Volumes: Represented 13% of total GDV, grew 11% year-over-year.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mastercard Inc (NYSE:MA) reported a strong fourth quarter with net revenues up 16% and adjusted net income up 19% year-over-year on a non-GAAP currency-neutral basis.
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The company has successfully expanded its partnerships, including significant renewals and expansions with major banks and financial institutions globally.
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Mastercard Inc (NYSE:MA) is capitalizing on the secular shift to digital payments, with a focus on consumer payments, commercial flows, and services and solutions.
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The company is leveraging its tokenization and biometric capabilities to enhance security and improve the consumer experience, with 4 billion transactions tokenized per month in 2024.
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Mastercard Inc (NYSE:MA) is actively pursuing growth in commercial flows, a $80 trillion addressable market, with commercial credit and debit volumes growing 11% year-over-year.
Negative Points
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Operating expenses increased by 15%, partly due to acquisition-related costs, which were higher than anticipated.
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The acquisition of Recorded Future and Minna Technologies will impact operating expenses growth by approximately 5 percentage points in 2025.
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The company faces potential challenges from geopolitical concerns and shifts in monetary and fiscal policy, which could impact future performance.
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Mastercard Inc (NYSE:MA) is experiencing competitive pressures, particularly in the European market, where local payment solutions are being developed.
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The company anticipates a headwind of approximately 2 percentage points from foreign exchange in 2025, which could affect revenue growth.
Q & A Highlights
Q: Can you discuss the drivers of cross-border growth and expectations for 2025? A: Sachin Mehra, CFO, explained that cross-border volume growth remains strong, driven by consumer and commercial spending. The first four weeks of January showed a slight decrease from 20% to 18% due to intra-Europe factors like travel spend pull-forward and calendarization. The overall health of cross-border spending is excellent, and they expect continued strength in 2025.