Visa Inc Q4 2024 Earnings Call Transcript

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

Question: Harshita Rawat - Bernstein Institutional Services LLC - Analyst : Good afternoon, Thank you for taking my question. A lot going on in the US regulatory fund with regards to the DOJ lawsuit, Reg II, MDL, CCA. Can you share your overall thoughts on the regulatory and litigation environment in the US, And Chris just as a follow up, can you help us maybe size your revenue exposure to US debit both including as well as excluding Visa DPS? Thank you.

Question: Ramsey El-Assal - Barclays - Analyst : Hi. Can you give us your updated thoughts on the competitive environment, especially as it pertains to or specifically as it pertains to pay by bank? We're seeing Walmart move forward with a new product and chatter around some other offerings. We've seen these products in the past, but I'm just wondering if there's anything that sort of changed on the ground to make these a little more interesting for consumers. I know you guys are involved as well serving that part of the market now. So curious to get your comments. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2024 / 9:00PM, V.N - Q4 2024 Visa Inc Earnings Call

Question: Sanjay Sakhrani - Keefe, Bruyette & Woods North America - Analyst : Thank You. I had a question on commercial volumes. I know they decelerated these days mix. But I'm just wondering, what kind of growth rate we should expect on a go forward basis? I mean, I know there's some macro impact and maybe just talk about that specifically? Thanks.

Question: Paul Golding - Macquarie Research - Analyst : Thanks so much. With the Featurespace acquisition in process, I just wanted to ask how you see AI playing into the business model. Do you see it more as driving vast or incremental business model uplift revenue or cost improvement or is it more of a competitive differentiator that will just keep you ahead of your competition? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 29, 2024 / 9:00PM, V.N - Q4 2024 Visa Inc Earnings Call

Question: Tien-tsin Huang - JP Morgan - Analyst : Thank you. Just wanted to ask how growth in '25 might look different than '24 across consumer payments, new flows and value added services?

Question: Rayna Kumar - Oppenheimer & Co., Inc. - Analyst : Good afternoon. Thanks for taking my question. Last week, the CFPB issued a final open banking rule for the US. Can you talk about what opportunities this could present for Visa from [Tink's] perspective and what potential headwinds it could create? Thank you.

Question: Andrew Schmidt - Citi - Analyst : Hi, Ryan. Hey Chris, thanks for taking my questions this afternoon. I wanted to ask about value add services growth, it's really good to see the consistency there. Maybe you could just talk about the predictability and then maybe comment a little bit more on the planning process of how you sort of feed the engine and continue to drive that growth. I know there's an organic and inorganic components of penetration aspects to this. But if you could help unpack that, I know it's a lot of things in there if you could help unpack that, it'd be great. Thanks so much.

Question: Dave Koning - Baird - Analyst : Yeah. Hey guys. Thank you. On the cross border line revenue growth was stable at 9% this quarter, same as last quarter, but reported volumes accelerated a percent. And I would think FX volatility was less bad, so that probably helped a little bit and mix seemed about the same. So I was wondering, is there anything else any other little headwinds emerging there? What, maybe -- what created the GAAP?

Question: Tim Chiodo - UBS - Analyst : Great. Thank you for taking the question. So I wanted to dig into two specific aspects of value added services. So first being DPS and the second being Cybersource. I believe those two combined make up a reasonably large portion of the transaction based value added services. I think the last disclosure on DPS was about $2.5 trillion in volume and Cybersource in the roughly $1 trillion. I was hoping you could give sort of relative growth rates relative to the rest of value added services and maybe some updated stats if possible. Thanks.

Question: Bryan Keane - Deutsche Bank - Analyst : Hi guys. Good afternoon. Wanted to ask about the pickup you've seen in October for volume growth, especially in debit. Looks like it's perked up a little bit to 7%. Anything you're seeing there in new wins or is that potentially a better economic environment driving that? And then just quickly secondly, on the price, the value, just a change in timing. What was the reason for the change? What -- why is the timing different this year?

Question: Jason Kupferberg - BofA Global Research - Analyst : Thanks guys, just looking at the US card, present volume growth. I think we've been in the 2% range here for the past two or three quarters. So wondering if you're expecting that to accelerate in fiscal '25. And Chris, can you just quantify with that favorable adjustment to Q4 new flows revenues were? Thank you.

Question: Jason Kupferberg - BofA Global Research - Analyst : The one time helper to new flows revenue in Q4, if you could quantify that?

Question: Craig Maurer - FT Partners - Analyst : Hi, thanks everybody, for taking my questions. Wanted to ask first, haven't asked in a long time about your thoughts on operating leverage. And your growing expenses at a similar rate to revenue in the forecast for fiscal year '25. And going forward long term, is there a commitment to grow revenue faster than expenses or are we looking at limited operating leverage in the future? And secondly, considering the fiscal year '25 guide, what are your assumptions around APAC embedded in the guide? Do you need acceleration in China to achieve that or is it basically assuming the same steady no growth situation there? Thanks.

Question: Trevor Williams - Jefferies LLC - Analyst : Great. Thanks a lot. Yeah, I wanted to follow up on value added services. I think the general framework you've given is roughly two-thirds of vast revenue is transaction linked in some form, of that portion that's tied to transactions or volume. How much of that today needs to be over VisaNet for you to be earning those vast revenue streams? Ryan, it sounds like most of it today is still running over your network, but maybe the off network piece should be increasing as a percentage of the mix over time, but anything more specific, there would be helpful? Thanks.

Question: Darrin Peller - Wolfe Research - Analyst : Hey, thanks guys. Look just coming off of the, I think it was 12% growth in incentives and rebates in '24. And now you're saying obviously higher '25 it's obviously great to see the activity should help us see in growth. Maybe just help us understand a little more around you mentioned a lot of renewals. But what about just net new business and market share gains? How does that build in? And I guess related to that? Looks like this year is a big year of that contra revenue growth rate. So, does that have an impact on how you think about this year's growth versus long term? We think it could be actually more so even better this year being a little bit of an outline here in terms of growth and incentives and rebates if we're thinking about that correctly? Thanks guys.