VISA INC. Q1 FY2025 earnings call

• Acknowledged the tragic air collision in Washington, DC. - Strong fiscal year start with $9.5 billion net revenue (+10% y/y) and EPS up 14%. - Key business drivers: Overall payments volume up 9% y/y, US up 7%, international up 11%; cross-border volume ex Intra-Europe up 16% y/y. - Consumer payments: 4.7 billion credentials and 12.6 billion tokens; growth in Visa Flexible Credential, Tap to Add Card, and Tap to Pay penetration. - New flows: Visa Direct crosses 10 billion transactions, partnerships with fintechs. - Commercial: Volumes up 6% y/y, wins in verticals. - Value-Added Services: Innovations in risk, advisory, and partnerships.

Consumer Payments: Net revenue driven by growth in credentials (4.7 billion, up 7% y/y) and tokens (12.6 billion, up 44% y/y). Visa Flexible Credential, Tap to Add Card, and Tap to Pay penetration growth are key drivers. New Flows: Revenue grew 19% y/y in constant dollars. Visa Direct crossed 10 billion transactions in 12 months, with partnerships like X Money and OnePay. Commercial: Volumes up 6% y/y in constant dollars, with wins in food/grocery delivery, healthcare, and T&E verticals. Value-Added Services: Revenue grew 18% in constant dollars. Innovations in risk solutions (Visa Protect for A2A payments, acquisition of Featurespace), advisory services, and partnerships with acquirers and issuers contribute to growth.

• Q2 adjusted net revenue growth expected in the high-single to low-double digits. - Full year adjusted net revenue growth expected in the low-double digits. - Lowered tax rate expectation to 17.5%-18%. - Featurespace and Pismo acquisitions have minimal impact on net revenue, ~1% on operating expenses, ~0.5% headwind on EPS.

Q: On improved outlook, does it assume growth sustains?

A: Chris Suh mentions Q1 results are strong, more update on H2 closer.

Q: Strong spending results, attribution?

A: Chris Suh talks about US holiday, discretionary categories, lapping Reg II, and regional strengths.

Q: Value-added services, philosophical change?

A: Ryan McInerney says no change, focus on solutions for merchants, issuers, fraud, advisory.

Q: Visa A2A, use cases and monetization?

A: Ryan McInerney talks about unbundling capabilities, initial Bill Pay use case in UK, plans to expand.

Q: Cross-border e-commerce, growth rates?

A: Chris Suh says e-commerce and travel growth converged, Visa Direct cross-border growing faster.

Q: Tokenization, monetization?

A: Ryan McInerney talks about token-enabled services, revenue from credential enrichment, heatmap services.

Q: X Money project timeline?

A: Ryan McInerney says Visa platform enables quick implementation, volume ramping to be monitored.

Q: Regulatory environment in US?

A: Ryan McInerney is optimistic about reduced regulatory burden.

Q: Big deal renewals, revenue interplay?

A: Ryan McInerney says multifaceted conversations, expanding partnerships into new flows and VAS.

Q: AI impact on strategy?

A: Ryan McInerney talks about early AI adoption, using AI in operations, product development.

Q: Asia-Pacific outlook?

A: Chris Suh says AP growth is moderate, muted environment.