MA Q2 2016 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q2 2016 Earnings

Reported July 28, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$2.7B	$2.4B	—	10.1%	—
Op. Income	$1.4B	$1.3B	—	2.4%	—
Gross Margin	79.5%	78.7%	—	0.8pp	—
Net Margin	36.5%	39.2%	—	-2.7pp	—
EPS (Diluted)	$0.89	$0.86	—	3.5%	—
Free Cash Flow	$953M	$933M	—	2.1%	—

Revenue Flow

Item	Amount
REVENUE	$2.7B
Cost of Revenue	$551M
GROSS PROFIT	$2.1B
R&D Expenses	$0
Selling & Marketing	$184M
General & Administrative	$388M
SG&A Expenses	$572M
Other Expenses	$191M
Operating Expenses	$763M
Cost & Expenses	$1.3B
OPERATING INCOME	$1.4B
Interest Income	$0
Interest Expense	$22M
Other Income/Expenses	-$15M
INCOME BEFORE TAX	$1.4B
Income Tax Expense	$382M
Net Income from Continuing Ops	$983M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$983M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$983M
D&A	$93M
EBIT	$1.4B
EBITDA	$1.5B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$2.7B
Cost of Revenue	$551M
GROSS PROFIT	$2.1B
R&D Expenses	$0
Selling & Marketing	$184M
General & Administrative	$388M
SG&A Expenses	$572M
Other Expenses	$191M
Operating Expenses	$763M
Cost & Expenses	$1.3B
OPERATING INCOME	$1.4B
Interest Income	$0
Interest Expense	$22M
Other Income/Expenses	-$15M
INCOME BEFORE TAX	$1.4B
Income Tax Expense	$382M
Net Income from Continuing Ops	$983M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$983M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$983M
D&A	$93M
EBIT	$1.4B
EBITDA	$1.5B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$983M
Depreciation & Amortization	$93M
Stock-Based Compensation	$31M
Deferred Income Tax	$12M
Other Non-Cash Items	$179M
Change in Working Capital	-$237M
OPERATING CASH FLOW	$1.1B
Capital Expenditure	-$106M
Acquisitions (Net)	-$42M
Purchases of Investments	-$194M
Sales/Maturities of Investments	$195M
Other Investing Activities	$37M
NET CASH FROM INVESTING	-$110M
Net Debt Issuance	$0
Common Stock Repurchased	-$462M
Common Dividends Paid	-$209M
Other Financing Activities	$20M
NET CASH FROM FINANCING	-$649M
FREE CASH FLOW	$953M
Net Change in Cash	$282M

Balance Sheet

Item	Amount
Cash & Equivalents	$5.2B
Short-Term Investments	$1.3B
Net Receivables	$2.2B
Inventory	$0
Other Current Assets	$2.1B
TOTAL CURRENT ASSETS	$11.0B
PP&E (Net)	$680M
Goodwill	$1.8B
Intangible Assets	$762M
Long-Term Investments	$172M
Tax Assets	$337M
Other Non-Current Assets	$1.5B
TOTAL NON-CURRENT ASSETS	$5.3B
TOTAL ASSETS	$16.3B
Account Payables	$452M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$3.4B
TOTAL CURRENT LIABILITIES	$6.5B
Long-Term Debt	$3.3B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$83M
Other Non-Current Liabilities	$562M
TOTAL NON-CURRENT LIABILITIES	$4.0B
TOTAL LIABILITIES	$10.4B
Common Stock	$0
Additional Paid-In Capital	$4.1B
Retained Earnings	$17.7B
Treasury Stock	-$15.3B
Accum. Other Comp. Income	-$697M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.8B
Minority Interest	$32M
TOTAL EQUITY	$5.9B
TOTAL LIABILITIES & EQUITY	$16.3B
Total Debt	$3.3B
Net Debt	-$1.9B