Visa has reported a 14% increase in its GAAP net income for the fourth quarter of fiscal year 2024 (Q4 FY24) at $5.3bn, compared to $4.68bn posted in the corresponding quarter of the previous year.
In the previous quarter, that is Q3 FY24, the American payment processing company’s GAAP net income was $4.9bn.
Visa witnessed a 12% growth in its revenue for the reported quarter that ended on 30 September 2024 to $9.6bn, compared to $8.16bn reported in Q4 FY23.
The increase in revenue was attributed to the year-over-year (YoY) growth in payments volume, cross-border volume, as well as processed transactions.
Visa’s payment volumes for Q4 FY24 grew by 8% compared to the same period last year.
Cross-border volume, excluding intra-European transactions which contribute to Visa’s international transaction revenue, rose by 13% YoY. The company’s overall cross-border volume increased by 13% during the quarter.
Besides, the total processed transactions reached 61.5 billion for the three-month period, a 10% increase over the previous year.
Visa posted GAAP operating expenses of $3.26bn for Q4 FY24, a 7% increase compared to $3.06bn in Q4 FY23. This increase was primarily driven by higher marketing and personnel expenses.
For the full FY24, the American payment card services company’s GAAP net income was $19.7bn an increase of 14% compared to the prior fiscal year.
Visa’s net revenue showcased a YoY growth of 10% at $35.9bn for the reported fiscal year.
Visa CEO Ryan McInerney said: “In the fourth quarter, net revenue and GAAP EPS grew by 12% and 17%, respectively, driven by relatively stable growth in payments volume, crossborder volume and processed transactions plus strong momentum across new flows and value added services.
“We see tremendous opportunity ahead to grow our business, deliver for our clients and collectively shape the future of commerce.”
Separately, reports surfaced that Visa is planning to lay off 1,400 employees and contractors by the end of the year, with approximately 1,000 of these cuts affecting technology roles. The move is part of Visa’s strategy to streamline its international operations, reported The Wall Street Journal (WSJ).
In addition to the technology layoffs, other roles to be cut include positions in merchant sales and global digital partnerships, which focus on collaborations with fintech and technology companies.
