Visa beats earnings expectations
Fintech Headlines for April 25, 2023: Visa beats earnings expectations, Nubank's customer base surpasses 80 million mark, Fiserv raises full-year revenue guidance
Yesterday was a brutal day in the markets, and First Republic Bank's stock price was cut in half after the earnings release. Nevertheless, Alphabet and Microsoft, which reported their results after the market close, beat expectations, so stock futures suggest a better day ahead. Let’s look into:
Visa beating earnings expectations on strong payments volume growth
Nubank's customer base surpassing the 80 million mark, and
Fiserv raising its full-year 2023 revenue guidance
Visa Beats Earnings Expectations on Strong Payments Volume Growth
Visa (NYSE: V) reported its Fiscal Q2 2023 results after the market close beating analysts’ estimates. Net revenue increased 11% YoY to $7.99 billion, driven by the growth in payments volume, cross-border volume, and processed transactions. GAAP Net income increased 17% YoY to $4.26 billion or $2.03 per share, and non-GAAP Net income increased 14% YoY to $4.38 billion or $2.09 per share.
Payments volume for the quarter increased 6.4% YoY (10.1% YoY on a constant-dollar basis) to $2.96 trillion. Payments volume growth was driven by International and U.S. credit card spending (up 15.2% YoY and 10.5% YoY on a constant-dollar basis respectively). Cross-border volume increased 19% YoY (24% YoY on a constant-dollar basis), and Total processed transactions increased 12% YoY to 50.1 billion.
Visa’s stock price is up 10.51% for the year and rose another 1.33% in the after-hours trading following the earnings release. During the quarter, Visa continued buying back its stock, repurchasing 10.0 million shares at an average cost of $222.09 per share for $2.2 billion. The Company had $11.8 billion of remaining authorized funds for share repurchase.
Data source: Visa, Operational Performance Data
✔️ Visa's payments business helps profit exceed Wall Street estimates
✔️ Visa 2Q profits rise 14% on rising credit, debit card usage
✔️ Visa Beats on Results. Shares Rise
Nubank's Customer Base Surpasses 80 Million Mark
Brazilian Fintech company Nubank (NYSE: NU) announced that it has reached a milestone of 80 million customers in Latin America. The company, which offers digital banking, credit, and investment products, has seen explosive growth in recent years and has become one of the region's most valuable startups. Nubank operates in Brazil, Mexico, and Colombia, and gained popularity by offering an innovative and hassle-free banking experience to its customers, who can access its services through its user-friendly mobile app.
At the end of Q1 2023, the company had 79.1 million customers, which represents a 33% compared to Q1 20222. “We added around 5 million customers to our base in just over a quarter, always with a great contribution from the Brazilian operation and increasing adherence by Mexicans and Colombians,” commented David Vélez, CEO and founder of Nubank in the company’s press release. Nubank will report its Q1 2023 results on May 15, 2023, after the market close.
✔️ Nubank reaches the milestone of 80 million customers in Latin America
✔️ Brazil's Nubank says client base up 33% yr/yr in first quarter
✔️ Nu Holdings Announces Q1'23 Financial Results Conference Call Date
Fiserv Raises Full-Year Revenue Guidance
Fiserv (NASDAQ: FISV) reported its Q1 2023 results yesterday before the opening bell. GAAP revenue increased 10% YoY to $4.55 billion, and GAAP earnings per share declined 13% YoY to $0.89. Adjusted revenue increased 10% YoY to $4.28 billion, while adjusted earnings per share increased 13% YoY to $1.58.
Revenue growth in the first quarter was driven by the Merchant Acceptance segment, which delivered a 12% YoY growth in adjusted revenue to $1.85 billion, and the Payments and Network segment, which delivered an 11% YoY growth in adjusted revenue to $1.64 billion. Adjusted revenue from the Financial Technology segment increased by 2% YoY to $0.79 billion.
Fiserv raised its full-year 2023 outlook and now expects GAAP revenue growth of 6% to 7% YoY and adjusted revenue growth of 5% to 6% YoY. The company also guided for adjusted earnings per share of $7.30 to $7.40, representing a 12% to 14% growth compared to 2022.
✔️ Fiserv Reports First Quarter 2023 Results
✔️ Fiserv Results Show Clover Revenue Surge of 22%
✔️ Fiserv takes lead back from FIS
Chart of the Day
Mastercard will report its Q1 2023 results on Thursday before the market opens. This year, Visa’s stock is outperforming its counterpart, advancing 10.72% YTD, compared to a 6.32% YTD growth for Mastercard. Will this change after Mastercard releases its Q1 2023 earnings?
Chart made with Koyfin
Jobs in Fintech
Vice President, Global Media Relations and Financial Communications
San Francisco, CA, United States
Senior Director, Europe Insights & Analytics
London, United Kingdom
Sao Paulo, Brazil
Sao Paulo, Brazil
Omaha, NE, United States
That’s it for today! Thank you for reading and see you tomorrow!
Thanks for reading Popular Fintech! Subscribe to receive new posts and support my work.
Cover image: Microsoft Bing Image Creator, Powered by DALL·E, prompt “people wave with their credit cards, look very happy, pop art style”
Disclaimer: Information contained in this newsletter is intended for educational and informational purposes only and should not be considered financial advice. You should do your own research or seek professional advice before making any investment decisions.