Mastercard Q4 Earnings: Revenue And EPS Beat, Strong Growth In Payments and Cross-Border Transactions

Mastercard Inc (NYSE: MA) reported fiscal fourth-quarter net revenues of $7.49 billion, up 14% year over year and 16% year over year on a neutral currency basis, beating the analyst consensus estimate of $7.39 billion.

Adjusted EPS rose 20% year over year to $3.82, exceeding the analyst consensus estimate of $3.69.

Payment network net revenue rose 13% Y/Y (+15% Y/Y on a currency-neutral basis), led by growth in gross dollar volume (+12% Y/Y), cross-border volume (+20% Y/Y) and switched transactions (+11% Y/Y).

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Value-added services and solutions net revenue rose 16% and 17% on a currency-neutral basis, driven by growth in its underlying key drivers, strong demand for its consumer acquisition and engagement and business and market insight services, the scaling of its security and digital and authentication solutions, and pricing.

Mastercard’s switched volume, reflecting the value of transactions on its network, rose by 13% year-over-year. Cross-border volume, which indicates travel demand by tracking spending on cards outside their country of issue, increased by 20% in the same period.

The adjusted operating margin expanded 40 bps Y/Y to 56.3%. The net income climbed 22% on a currency-neutral basis to $3.3 billion, while the adjusted net income improved by 19% on a currency-neutral basis to $3.5 billion.

As of December 31, 2024, the company’s customers had issued 3.5 billion Mastercard and Maestro branded cards.

During the quarter, Mastercard repurchased 6.5 million shares for $3.4 billion and paid $606 million in dividends. As of December 31, 2024, cash and cash equivalents stood at $10.8 billion.

CEO Michael Miebach noted its diverse capabilities in payments and services and solutions, including the acquisition of Recorded Future this quarter set it apart and positioned it well for long-term growth as outlined at its Investor Day

Q1 and FY25 Outlook: Mastercard expects net revenue growth in the low double digits for the first quarter (versus $7.14 billion consensus estimate) and fiscal 2025 (versus $31.46 billion consensus estimate).

Price Action: MA stock is up 4.05% at $571.51 at the last check on Thursday.

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