MA Q3 2016 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q3 2016 Earnings

Reported October 28, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2016	Q2 2016	Q3 2015	QoQ Change	YoY Change
Revenue	$2.9B	$2.7B	—	6.9%	—
Op. Income	$1.7B	$1.4B	—	21.0%	—
Gross Margin	80.0%	79.5%	—	0.5pp	—
Net Margin	41.1%	36.5%	—	4.6pp	—
EPS (Diluted)	$1.08	$0.89	—	21.3%	—
Free Cash Flow	$1.3B	$953M	—	39.1%	—

Revenue Flow

Item	Amount
REVENUE	$2.9B
Cost of Revenue	$575M
GROSS PROFIT	$2.3B
R&D Expenses	$0
Selling & Marketing	$184M
General & Administrative	$346M
SG&A Expenses	$530M
Other Expenses	$105M
Operating Expenses	$635M
Cost & Expenses	$1.2B
OPERATING INCOME	$1.7B
Interest Income	$0
Interest Expense	$23M
Other Income/Expenses	-$37M
INCOME BEFORE TAX	$1.6B
Income Tax Expense	$449M
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	$93M
EBIT	$1.7B
EBITDA	$1.7B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$2.9B
Cost of Revenue	$575M
GROSS PROFIT	$2.3B
R&D Expenses	$0
Selling & Marketing	$184M
General & Administrative	$346M
SG&A Expenses	$530M
Other Expenses	$105M
Operating Expenses	$635M
Cost & Expenses	$1.2B
OPERATING INCOME	$1.7B
Interest Income	$0
Interest Expense	$23M
Other Income/Expenses	-$37M
INCOME BEFORE TAX	$1.6B
Income Tax Expense	$449M
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	$93M
EBIT	$1.7B
EBITDA	$1.7B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.2B
Depreciation & Amortization	$93M
Stock-Based Compensation	$25M
Deferred Income Tax	$7M
Other Non-Cash Items	$237M
Change in Working Capital	-$122M
OPERATING CASH FLOW	$1.4B
Capital Expenditure	-$99M
Acquisitions (Net)	-$44M
Purchases of Investments	-$780M
Sales/Maturities of Investments	$252M
Other Investing Activities	$41M
NET CASH FROM INVESTING	-$630M
Net Debt Issuance	$0
Common Stock Repurchased	-$591M
Common Dividends Paid	-$209M
Other Financing Activities	$25M
NET CASH FROM FINANCING	-$774M
FREE CASH FLOW	$1.3B
Net Change in Cash	$29M

Balance Sheet

Item	Amount
Cash & Equivalents	$5.2B
Short-Term Investments	$1.8B
Net Receivables	$2.4B
Inventory	$0
Other Current Assets	$2.2B
TOTAL CURRENT ASSETS	$11.8B
PP&E (Net)	$698M
Goodwill	$1.8B
Intangible Assets	$747M
Long-Term Investments	$149M
Tax Assets	$327M
Other Non-Current Assets	$1.8B
TOTAL NON-CURRENT ASSETS	$5.5B
TOTAL ASSETS	$17.3B
Account Payables	$437M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$3.6B
TOTAL CURRENT LIABILITIES	$7.1B
Long-Term Debt	$3.3B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$82M
Other Non-Current Liabilities	$545M
TOTAL NON-CURRENT LIABILITIES	$4.0B
TOTAL LIABILITIES	$11.1B
Common Stock	$0
Additional Paid-In Capital	$4.1B
Retained Earnings	$18.7B
Treasury Stock	-$15.9B
Accum. Other Comp. Income	-$717M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.2B
Minority Interest	$30M
TOTAL EQUITY	$6.2B
TOTAL LIABILITIES & EQUITY	$17.3B
Total Debt	$3.3B
Net Debt	-$1.9B