MA Q2 2018 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q2 2018 Earnings

Reported July 26, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2018	Q1 2018	Q2 2017	QoQ Change	YoY Change
Revenue	$3.7B	$3.6B	$3.1B	2.4%	20.0%
Op. Income	$1.9B	$1.8B	$1.7B	6.1%	17.1%
Gross Margin	78.3%	79.0%	78.9%	-0.7pp	-0.7pp
Net Margin	42.8%	41.7%	38.6%	1.1pp	4.3pp
EPS (Diluted)	$1.50	$1.41	$1.10	6.4%	36.4%
Free Cash Flow	$1.4B	$909M	$1.2B	50.1%	11.8%

Revenue Flow

Item	Amount
REVENUE	$3.7B
Cost of Revenue	$797M
GROSS PROFIT	$2.9B
R&D Expenses	$0
Selling & Marketing	$205M
General & Administrative	$446M
SG&A Expenses	$651M
Other Expenses	$281M
Operating Expenses	$932M
Cost & Expenses	$1.7B
OPERATING INCOME	$1.9B
Interest Income	$0
Interest Expense	$48M
Other Income/Expenses	-$14M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$353M
Net Income from Continuing Ops	$1.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.6B
D&A	$115M
EBIT	$2.0B
EBITDA	$2.1B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$3.7B
Cost of Revenue	$797M
GROSS PROFIT	$2.9B
R&D Expenses	$0
Selling & Marketing	$205M
General & Administrative	$446M
SG&A Expenses	$651M
Other Expenses	$281M
Operating Expenses	$932M
Cost & Expenses	$1.7B
OPERATING INCOME	$1.9B
Interest Income	$0
Interest Expense	$48M
Other Income/Expenses	-$14M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$353M
Net Income from Continuing Ops	$1.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.6B
D&A	$115M
EBIT	$2.0B
EBITDA	$2.1B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.6B
Depreciation & Amortization	$115M
Stock-Based Compensation	$55M
Deferred Income Tax	-$61M
Other Non-Cash Items	$295M
Change in Working Capital	-$484M
OPERATING CASH FLOW	$1.5B
Capital Expenditure	-$125M
Acquisitions (Net)	-$35M
Purchases of Investments	-$737M
Sales/Maturities of Investments	$493M
Other Investing Activities	$31M
NET CASH FROM INVESTING	-$373M
Net Debt Issuance	$0
Common Stock Repurchased	-$1.5B
Common Dividends Paid	-$262M
Other Financing Activities	$36M
NET CASH FROM FINANCING	-$1.8B
FREE CASH FLOW	$1.4B
Net Change in Cash	-$656M

Balance Sheet

Item	Amount
Cash & Equivalents	$6.2B
Short-Term Investments	$1.5B
Net Receivables	$3.7B
Inventory	$0
Other Current Assets	$2.7B
TOTAL CURRENT ASSETS	$14.3B
PP&E (Net)	$860M
Goodwill	$3.0B
Intangible Assets	$1.0B
Long-Term Investments	$268M
Tax Assets	$395M
Other Non-Current Assets	$2.6B
TOTAL NON-CURRENT ASSETS	$8.2B
TOTAL ASSETS	$22.5B
Account Payables	$345M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$5.0B
TOTAL CURRENT LIABILITIES	$9.5B
Long-Term Debt	$5.9B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$58M
Other Non-Current Liabilities	$1.8B
TOTAL NON-CURRENT LIABILITIES	$7.7B
TOTAL LIABILITIES	$17.1B
Common Stock	$0
Additional Paid-In Capital	$4.5B
Retained Earnings	$25.1B
Treasury Stock	-$23.6B
Accum. Other Comp. Income	-$632M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.3B
Minority Interest	$93M
TOTAL EQUITY	$5.3B
TOTAL LIABILITIES & EQUITY	$22.5B
Total Debt	$5.9B
Net Debt	-$352M