Visa’s net revenue grew 14% in its fiscal third quarter, but operating costs rose faster, putting the company’s 10% constant-dollar payment-volume increase alongside a larger expense expansion.
The company reported $11.633 billion in net revenue and $3.878 billion in non-GAAP operating expenses for the quarter ended June 30, according to its July 28 earnings release filed with the Securities and Exchange Commission. Revenue growth was 13% when measured in constant dollars, while non-GAAP expenses increased 17% from a year earlier.
On a generally accepted accounting principles (GAAP) basis, operating expenses rose 19% to $4.756 billion. Visa linked most of the non-GAAP expense increase to higher marketing and personnel costs.
Payment volume increased 10% in constant dollars. Visa processed 71.7 billion transactions, also 10% more than a year earlier. The two measures show growth in both the value and number of payments handled during the quarter.
Excluding transactions within Europe, cross-border volume advanced 12% in constant dollars; including those transactions, it rose 13%.
Among revenue lines, data processing revenue climbed 17% to $6.042 billion. International transaction revenue rose 6% to $3.853 billion, while client incentives increased 18% to $4.680 billion. CEO Ryan McInerney said consumer and business spending “remains resilient.”
