MA Q2 2017 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q2 2017 Earnings

Reported July 27, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2017	Q1 2017	Q2 2016	QoQ Change	YoY Change
Revenue	$3.1B	$2.7B	$2.7B	11.7%	13.3%
Op. Income	$1.7B	$1.5B	$1.4B	9.8%	19.8%
Gross Margin	78.9%	78.3%	79.5%	0.6pp	-0.6pp
Net Margin	38.6%	39.5%	36.5%	-1.0pp	2.1pp
EPS (Diluted)	$1.10	$1.00	$0.89	10.0%	23.6%
Free Cash Flow	$1.2B	$651M	$953M	87.4%	28.0%

Revenue Flow

Item	Amount
REVENUE	$3.1B
Cost of Revenue	$644M
GROSS PROFIT	$2.4B
R&D Expenses	$0
Selling & Marketing	$214M
General & Administrative	$398M
SG&A Expenses	$612M
Other Expenses	$144M
Operating Expenses	$756M
Cost & Expenses	$1.4B
OPERATING INCOME	$1.7B
Interest Income	$0
Interest Expense	$39M
Other Income/Expenses	-$25M
INCOME BEFORE TAX	$1.6B
Income Tax Expense	$451M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.2B
D&A	$111M
EBIT	$1.7B
EBITDA	$1.8B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.1B
Cost of Revenue	$644M
GROSS PROFIT	$2.4B
R&D Expenses	$0
Selling & Marketing	$214M
General & Administrative	$398M
SG&A Expenses	$612M
Other Expenses	$144M
Operating Expenses	$756M
Cost & Expenses	$1.4B
OPERATING INCOME	$1.7B
Interest Income	$0
Interest Expense	$39M
Other Income/Expenses	-$25M
INCOME BEFORE TAX	$1.6B
Income Tax Expense	$451M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.2B
D&A	$111M
EBIT	$1.7B
EBITDA	$1.8B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.2B
Depreciation & Amortization	$111M
Stock-Based Compensation	$49M
Deferred Income Tax	-$31M
Other Non-Cash Items	$256M
Change in Working Capital	-$268M
OPERATING CASH FLOW	$1.3B
Capital Expenditure	-$74M
Acquisitions (Net)	-$975M
Purchases of Investments	-$375M
Sales/Maturities of Investments	$254M
Other Investing Activities	$162M
NET CASH FROM INVESTING	-$1.0B
Net Debt Issuance	-$64M
Common Stock Repurchased	-$931M
Common Dividends Paid	-$236M
Other Financing Activities	$16M
NET CASH FROM FINANCING	-$1.2B
FREE CASH FLOW	$1.2B
Net Change in Cash	-$829M

Balance Sheet

Item	Amount
Cash & Equivalents	$5.2B
Short-Term Investments	$1.8B
Net Receivables	$3.0B
Inventory	$0
Other Current Assets	$2.4B
TOTAL CURRENT ASSETS	$12.5B
PP&E (Net)	$845M
Goodwill	$2.8B
Intangible Assets	$1.1B
Long-Term Investments	$233M
Tax Assets	$375M
Other Non-Current Assets	$2.0B
TOTAL NON-CURRENT ASSETS	$7.3B
TOTAL ASSETS	$19.8B
Account Payables	$654M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$3.9B
TOTAL CURRENT LIABILITIES	$7.6B
Long-Term Debt	$5.3B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$140M
Other Non-Current Liabilities	$842M
TOTAL NON-CURRENT LIABILITIES	$6.3B
TOTAL LIABILITIES	$13.9B
Common Stock	$0
Additional Paid-In Capital	$4.3B
Retained Earnings	$21.2B
Treasury Stock	-$18.9B
Accum. Other Comp. Income	-$699M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.9B
Minority Interest	$96M
TOTAL EQUITY	$5.9B
TOTAL LIABILITIES & EQUITY	$19.8B
Total Debt	$5.3B
Net Debt	$149M