Visa Inc Q1 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Sanjay Sakhrani - Keefe, Bruyette & Woods - Analyst : Thank you. I had a question the improved outlook. Obviously, the volumes did better and they accelerated. Does the improved outlook assume the growth rate sort of sustain themselves or maybe you just go through sort of what the drivers are? Thanks.

Question: Will Nance - Goldman Sachs - Analyst : Hey, guys, I appreciate you taking the question. I also wanted to follow up on some of the stronger spending results that you've seen -- you called out the strong results that's been pretty evident in some of the prints so far this quarter. I just wanted to know if there's anything kind of when you peel back the onion and some of the data that you guys have. You know, if there's anything obvious that you would attribute this acceleration over the past couple of months toward that I know. You called out some things around holiday spending and obviously there's been a lot of days mix things going on, but we spent I think a year talking about ticket size being a headwind. So I'm wondering how much of this is sort of a new run rate and lapping, kind of tougher comps over the last couple of years versus kind of an outright acceleration and kind of spending above trend. Curious to see if you have any thoughts on that. Thanks.

Question: Darrin Peller - Wolfe Research, LLC - Analyst : Guys, thanks. Just a couple of two parts to a question. But first one is really to do with the underlying trends we're going to see through the year with regard to the moving parts on some of your easier lapping. Given that there was some business as you talked about that had come off last year that lapse. How does that impact your volume trajectory in the US. As the year progresses, we can think about that. Obviously Reg II started to help already. And then maybe just a quick follow up on rebates incentives. I know you talked about this being the higher quarter, that we were going to start the year off at. Maybe just if you could help us, was this in line with your expectations in terms of the results that we saw, or is anything changing around timing on it or did it really come in as expected? Thanks again guys.

Question: Andrew Jeffrey - William Blair & Company, LLC - Analyst : Hi, thank you. Can you hear me now?

Question: Andrew Jeffrey - William Blair & Company, LLC - Analyst : I apologize for that. I'm sorry. I wanted to ask on value-added services, given the recent closure of feature space and I think some emphasis in Pismo. Can you talk, Ryan, has there been a philosophical change or a change in emphasis perhaps in Visa's value-added services initiatives. And going forward, as we think about greater opportunities in that area, should we think about Visa maybe emphasizing some more security offerings versus processing and gateway? Just trying to frame that up.

Question: Harshita Rawat - Bernstein & Co. - Analyst : Good afternoon. So Ryan, I want to follow up on your comments on kind of this unbundling of the capabilities and ask about Visa A2A. We talked about 10 new RTP network partnerships. What are you hearing from your issuer and merchant customers, bill pays, probably now there's use case. How should we think about the road map of use cases, monetization models and also the dynamics Visa debit in terms of cannibalization.

Question: Timothy Chiodo - UBS Investment Bank - Analyst : Great. Thank you. I wanted to dig a little bit into the mix components of the cross-border business. So you said in the past that roughly about 60% of it is travel and the other roughly 40% is e-commerce. And I know that evolved a little bit throughout COVID and now into the recovery period. But when we think about the e-commerce component, I believe that some of the Visa Direct-related pieces are sitting there. So whether it be the remittances that are cross-border or the marketplace payouts. I was hoping you could dig into those 2 or that broader bucket if there's any rough growth rates or growth contribution or sizing? And if not, just any general comments around that aspect of the cross-border business.

Question: Jason Kupferberg - BofA Securities - Analyst : Thank you, guys. I wanted to touch on tokenization for a minute. I think you said number of tokens were up 44% in the quarter, obviously, a pretty robust number. So if you can just give us a general update on tokenization strategy and any potential timing or magnitude of actual monetization opportunity from tokenization? Obviously, understanding the benefits of it from a fraud and security perspective. But just wondering if there's any direct monetization we should be thinking about? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 30, 2025 / 10:00PM, V.N - Q1 2025 Visa Inc Earnings Call

Question: Bryan Keane - Deutsche Bank - Analyst : Hi, thanks for taking my question. Ryan, I just wanted to ask about X Money. How long does a project like that take for you guys to implement with X? Any kind of idea on how fast and how much volume that might ramp? And any thoughts on economics, or it's just kind of Visa Direct type transactions. Thanks.

Question: Dominick Gabriele - Compass Point Research & Trading, LLC - Analyst : Hey, thanks so much for taking my question. I was actually just curious if you've heard through your partners on either the consumer or commercial side, if the threat of tariffs pushed up any commercial spending or consumer spending, and if you've tracked that in the past? Thanks so much.

Question: Bryan Bergin - TD Cowen - Analyst : Hi, good. Afternoon. Thank you. I wanted to ask on commercial. So I think I called 6% growth, so one point improvement there quarter-on-quarter. Can you talk more about the trends in commercial spend in 1Q and further improvement expected or I guess, sustainable here in the '25 outlook relative to what you saw in '24?

Question: Dan Perlin - RBC Capital Markets, LLC - Analyst : Thanks. I was wondering if you could just speak to the point around the strength of the dollar and really like the purchasing power parity associated with that. So for I guess it plays into cross-border, obviously, for outbound US, but it's higher for people to come into the United States, but also in terms of just spending patterns. I mean, obviously, this is going to be a strong period for a little while. And I'm just wondering to what extent there is a proportional benefit to your business. Thank you.

Question: Andrew Schmidt - Citi Global Markets - Analyst : Hey, Ryan. Hey, Chris, thanks for taking my question. Just wanted to ask on the regulatory environment in the US, obviously, a new regulatory regime here. I'm wondering just your view on that and just conversations maybe you've had with issuers or other parties. Just trying to get a better sense. I know there's a few things going on in the US, obviously, curious how you're feeling. Thanks so much.

Question: Craig Maurer - Financial Technology Partners - Analyst : Yeah, hi. Thanks for taking the question. I wanted to go back to some of the big deal renewals you discussed early in the call and ask about the interplay of the different revenue lines in these renewals. What I'm trying to understand is, you're obviously making pricing REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 30, 2025 / 10:00PM, V.N - Q1 2025 Visa Inc Earnings Call concessions when you make these large -- when you enter into these large renewals or deal expansions, to what degree are you able to make up for that with other revenue or VAS being sold into these issuers? And I know this is complicated, but how much is that accounting for the expansion we're seeing in some of the other revenue? Thanks.

Question: Jeff Cantwell - Seaport Global Securities LLC - Analyst : Great. Thank you. Does the news this week on DeepSeek influence how you're thinking about your business strategy, possibly in terms of what are you thinking about stepping up the usage of AI to help with managing internal cost or maybe in terms of whether you're thinking about using AI as a tool to support your growth and unlock new revenue opportunities. Because it does appear from an outsiders perspective, AI potentially could help improve operating efficiency. It might even perhaps support some of your revenue areas like authorization or fraud prevention. So I wanted to ask you for your view of DeepSeek and the rise of AI generally means for Visa as far as strategy and where you see opportunity going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 30, 2025 / 10:00PM, V.N - Q1 2025 Visa Inc Earnings Call

Question: Tianyi Wang - J.P. Morgan Securities LLC - Analyst : Hey, thanks. I'll close it out with a question and a clarification, if you don't mind. Just on the question with Asia Pac, it looks like that's the only laggard again as a region. Otherwise, growth is really good. Any change in outlook for Asia Pac and the usual macro versus structural question there. Just curious if there's any change in thinking in the region. My clarification was just on the restructuring, was that contemplated in your prior guide? And will I presume that the savings that you get from that will be reinvested pretty quickly? Sorry if I missed that. Thank you.

Question: Tianyi Wang - J.P. Morgan Securities LLC - Analyst : Asia Pac. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 30, 2025 / 10:00PM, V.N - Q1 2025 Visa Inc Earnings Call