MA Q2 2020 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q2 2020 Earnings

Reported July 30, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2020	Q1 2020	Q2 2019	QoQ Change	YoY Change
Revenue	$3.3B	$4.0B	$4.1B	-16.8%	-18.9%
Op. Income	$1.7B	$2.2B	$2.4B	-22.8%	-28.8%
Gross Margin	72.6%	76.0%	79.3%	-3.4pp	-6.7pp
Net Margin	42.6%	42.2%	49.8%	0.3pp	-7.2pp
EPS (Diluted)	$1.41	$1.68	$2.00	-16.1%	-29.5%
Free Cash Flow	$1.3B	$1.6B	$1.4B	-22.7%	-5.8%

Revenue Flow

Item	Amount
REVENUE	$3.3B
Cost of Revenue	$915M
GROSS PROFIT	$2.4B
R&D Expenses	$0
Selling & Marketing	$93M
General & Administrative	$434M
SG&A Expenses	$527M
Other Expenses	$186M
Operating Expenses	$713M
Cost & Expenses	$1.6B
OPERATING INCOME	$1.7B
Interest Income	$0
Interest Expense	$101M
Other Income/Expenses	-$17M
INCOME BEFORE TAX	$1.7B
Income Tax Expense	$270M
Net Income from Continuing Ops	$1.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.4B
D&A	$145M
EBIT	$1.8B
EBITDA	$1.9B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.3B
Cost of Revenue	$915M
GROSS PROFIT	$2.4B
R&D Expenses	$0
Selling & Marketing	$93M
General & Administrative	$434M
SG&A Expenses	$527M
Other Expenses	$186M
Operating Expenses	$713M
Cost & Expenses	$1.6B
OPERATING INCOME	$1.7B
Interest Income	$0
Interest Expense	$101M
Other Income/Expenses	-$17M
INCOME BEFORE TAX	$1.7B
Income Tax Expense	$270M
Net Income from Continuing Ops	$1.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.4B
D&A	$145M
EBIT	$1.8B
EBITDA	$1.9B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.4B
Depreciation & Amortization	$145M
Stock-Based Compensation	$75M
Deferred Income Tax	$3M
Other Non-Cash Items	$104M
Change in Working Capital	-$289M
OPERATING CASH FLOW	$1.5B
Capital Expenditure	-$183M
Acquisitions (Net)	-$198M
Purchases of Investments	-$56M
Sales/Maturities of Investments	$132M
Other Investing Activities	$186M
NET CASH FROM INVESTING	-$119M
Net Debt Issuance	$0
Common Stock Repurchased	-$10M
Common Dividends Paid	-$401M
Other Financing Activities	$0
NET CASH FROM FINANCING	-$409M
FREE CASH FLOW	$1.3B
Net Change in Cash	$969M

Balance Sheet

Item	Amount
Cash & Equivalents	$11.1B
Short-Term Investments	$390M
Net Receivables	$3.9B
Inventory	$0
Other Current Assets	$3.8B
TOTAL CURRENT ASSETS	$19.4B
PP&E (Net)	$1.9B
Goodwill	$4.1B
Intangible Assets	$1.5B
Long-Term Investments	$958M
Tax Assets	$573M
Other Non-Current Assets	$3.8B
TOTAL NON-CURRENT ASSETS	$12.7B
TOTAL ASSETS	$32.1B
Account Payables	$369M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$2.6B
TOTAL CURRENT LIABILITIES	$9.9B
Long-Term Debt	$12.5B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$83M
Other Non-Current Liabilities	$3.1B
TOTAL NON-CURRENT LIABILITIES	$15.7B
TOTAL LIABILITIES	$25.6B
Common Stock	$0
Additional Paid-In Capital	$4.8B
Retained Earnings	$36.3B
Treasury Stock	-$33.6B
Accum. Other Comp. Income	-$1.0B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.5B
Minority Interest	$78M
TOTAL EQUITY	$6.5B
TOTAL LIABILITIES & EQUITY	$32.1B
Total Debt	$12.5B
Net Debt	$1.4B