MA Q2 2019 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q2 2019 Earnings

Reported July 30, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2019	Q1 2019	Q2 2018	QoQ Change	YoY Change
Revenue	$4.1B	$3.9B	$3.7B	5.8%	12.2%
Op. Income	$2.4B	$2.2B	$1.9B	8.3%	23.8%
Gross Margin	79.3%	79.1%	78.3%	0.1pp	1.0pp
Net Margin	49.8%	47.9%	42.8%	1.9pp	7.0pp
EPS (Diluted)	$2.00	$1.80	$1.50	11.1%	33.3%
Free Cash Flow	$1.4B	$1.2B	$1.4B	15.7%	-0.7%

Revenue Flow

Item	Amount
REVENUE	$4.1B
Cost of Revenue	$853M
GROSS PROFIT	$3.3B
R&D Expenses	$0
Selling & Marketing	$225M
General & Administrative	$503M
SG&A Expenses	$728M
Other Expenses	$135M
Operating Expenses	$863M
Cost & Expenses	$1.7B
OPERATING INCOME	$2.4B
Interest Income	$0
Interest Expense	$51M
Other Income/Expenses	$122M
INCOME BEFORE TAX	$2.5B
Income Tax Expense	$471M
Net Income from Continuing Ops	$2.0B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$2.0B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.0B
D&A	$122M
EBIT	$2.6B
EBITDA	$2.7B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$4.1B
Cost of Revenue	$853M
GROSS PROFIT	$3.3B
R&D Expenses	$0
Selling & Marketing	$225M
General & Administrative	$503M
SG&A Expenses	$728M
Other Expenses	$135M
Operating Expenses	$863M
Cost & Expenses	$1.7B
OPERATING INCOME	$2.4B
Interest Income	$0
Interest Expense	$51M
Other Income/Expenses	$122M
INCOME BEFORE TAX	$2.5B
Income Tax Expense	$471M
Net Income from Continuing Ops	$2.0B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$2.0B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.0B
D&A	$122M
EBIT	$2.6B
EBITDA	$2.7B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$2.0B
Depreciation & Amortization	$122M
Stock-Based Compensation	$73M
Deferred Income Tax	$27M
Other Non-Cash Items	$136M
Change in Working Capital	-$870M
OPERATING CASH FLOW	$1.5B
Capital Expenditure	-$182M
Acquisitions (Net)	-$814M
Purchases of Investments	-$492M
Sales/Maturities of Investments	$621M
Other Investing Activities	$100M
NET CASH FROM INVESTING	-$767M
Net Debt Issuance	$1.5B
Common Stock Repurchased	-$1.9B
Common Dividends Paid	-$337M
Other Financing Activities	-$163M
NET CASH FROM FINANCING	-$937M
FREE CASH FLOW	$1.4B
Net Change in Cash	-$140M

Balance Sheet

Item	Amount
Cash & Equivalents	$5.7B
Short-Term Investments	$809M
Net Receivables	$4.2B
Inventory	$0
Other Current Assets	$3.3B
TOTAL CURRENT ASSETS	$14.2B
PP&E (Net)	$1.3B
Goodwill	$3.5B
Intangible Assets	$1.2B
Long-Term Investments	$867M
Tax Assets	$478M
Other Non-Current Assets	$3.1B
TOTAL NON-CURRENT ASSETS	$10.6B
TOTAL ASSETS	$24.7B
Account Payables	$432M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$2.0B
TOTAL CURRENT LIABILITIES	$9.5B
Long-Term Debt	$7.8B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$95M
Other Non-Current Liabilities	$2.2B
TOTAL NON-CURRENT LIABILITIES	$10.1B
TOTAL LIABILITIES	$19.6B
Common Stock	$0
Additional Paid-In Capital	$4.7B
Retained Earnings	$30.5B
Treasury Stock	-$29.5B
Accum. Other Comp. Income	-$730M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.0B
Minority Interest	$101M
TOTAL EQUITY	$5.1B
TOTAL LIABILITIES & EQUITY	$24.7B
Total Debt	$7.8B
Net Debt	$2.1B