BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Visa Reports Strong Fiscal Third Quarter 2024 Results
SAN FRANCISCO, CA, July 23, 2024 – Visa Inc. (NYSE: V) has announced its financial results for the fiscal third quarter of 2024, showcasing robust growth across various key metrics.
Financial Highlights
- Net Revenue: $8.9 billion, a 10% increase both nominally and on a constant-dollar basis.
- GAAP Net Income: $4.9 billion, translating to $2.40 per share, a 17% increase year-over-year.
- Non-GAAP Net Income: $4.9 billion, or $2.42 per share, reflecting a 9% increase year-over-year.
- Share Repurchases and Dividends: $5.8 billion returned to shareholders.
Ryan McInerney, CEO of Visa, stated, "Visa delivered strong results in the third quarter, with net revenue growth of 10%, GAAP EPS growth of 20%, and non-GAAP EPS growth of 12%. Our key business drivers were relatively stable, with payments volume up 7%, cross-border volume up 14%, and processed transactions up 10%."
Key Business Drivers
- Payments Volume: Increased by 7% year-over-year.
- Cross-Border Volume: Grew by 14% year-over-year.
- Processed Transactions: Rose by 10% year-over-year.
Detailed Financial Performance
Visa's GAAP net income for the third quarter was $4.9 billion, or $2.40 per share, marking significant growth from the previous year. This includes special items such as a $118 million release from the indirect tax reserve and $67 million related to the donation of investment securities to the Visa Foundation. Excluding these and other items, Visa's non-GAAP net income stood at $4.9 billion, or $2.42 per share.
The company saw net revenue of $8.9 billion, driven by growth in payments volume, cross-border volume, and processed transactions. Payments volume for the quarter ending June 30, 2024, increased by 7% on a constant-dollar basis. Cross-border volume, excluding intra-Europe transactions, increased by 14%, contributing significantly to Visa's international transaction revenue.
Visa's total processed transactions for the quarter reached 59.3 billion, a 10% increase year-over-year. Service revenue for the fiscal third quarter was $4.0 billion, up 8% from the previous year, while data processing revenue rose by 9% to $4.5 billion. International transaction revenue also grew by 9% to $3.2 billion.
GAAP Operating Expenses: Decreased by 4% year-over-year to $3.0 billion, mainly due to a reduction in litigation provisions. Excluding special items, non-GAAP operating expenses increased by 14%, driven by higher general and administrative, personnel, and marketing expenses.
Cash and Investments
As of June 30, 2024, Visa's cash, cash equivalents, and investment securities totaled $19.7 billion. During the quarter, Visa repurchased 17.2 million shares of class A common stock at an average price of $276.75 per share, totaling $4.8 billion. The company has $18.9 billion remaining in its share repurchase authorization.
Dividends
Visa's board of directors declared a quarterly cash dividend of $0.520 per share of class A common stock, payable on September 3, 2024, to all holders of record as of August 9, 2024.
Notable Developments
- Exchange Offer Settlement: On May 8, 2024, Visa settled its exchange offer for class B-1 common stock.
- Interchange Multidistrict Litigation: On June 25, 2024, the Eastern District of New York court denied the preliminary approval motion for the class settlement.
- Preferred Stock Release: Visa released $2.7 billion of the as-converted value from its series B and C preferred stock, issuing series A preferred stock.
Despite the positive financial results, Visa's stock price fell by 3.1% in after-hours trading, reflecting market reactions to the earnings announcement.
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