MA Q3 2017 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q3 2017 Earnings

Reported October 31, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2017	Q2 2017	Q3 2016	QoQ Change	YoY Change
Revenue	$3.4B	$3.1B	$2.9B	11.3%	18.0%
Op. Income	$1.9B	$1.7B	$1.7B	17.4%	16.2%
Gross Margin	78.7%	78.9%	80.0%	-0.2pp	-1.3pp
Net Margin	42.1%	38.6%	41.1%	3.5pp	1.0pp
EPS (Diluted)	$1.34	$1.10	$1.08	21.8%	24.1%
Free Cash Flow	$1.6B	$1.2B	$1.3B	33.0%	22.3%

Revenue Flow

Item	Amount
REVENUE	$3.4B
Cost of Revenue	$723M
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$203M
General & Administrative	$390M
SG&A Expenses	$593M
Other Expenses	$141M
Operating Expenses	$734M
Cost & Expenses	$1.5B
OPERATING INCOME	$1.9B
Interest Income	$0
Interest Expense	$35M
Other Income/Expenses	-$9M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$502M
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	$118M
EBIT	$2.0B
EBITDA	$2.1B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.4B
Cost of Revenue	$723M
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$203M
General & Administrative	$390M
SG&A Expenses	$593M
Other Expenses	$141M
Operating Expenses	$734M
Cost & Expenses	$1.5B
OPERATING INCOME	$1.9B
Interest Income	$0
Interest Expense	$35M
Other Income/Expenses	-$9M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$502M
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	$118M
EBIT	$2.0B
EBITDA	$2.1B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.4B
Depreciation & Amortization	$118M
Stock-Based Compensation	$49M
Deferred Income Tax	-$33M
Other Non-Cash Items	$252M
Change in Working Capital	-$61M
OPERATING CASH FLOW	$1.8B
Capital Expenditure	-$133M
Acquisitions (Net)	-$224M
Purchases of Investments	-$627M
Sales/Maturities of Investments	$582M
Other Investing Activities	$24M
NET CASH FROM INVESTING	-$402M
Net Debt Issuance	$0
Common Stock Repurchased	-$838M
Common Dividends Paid	-$235M
Other Financing Activities	$31M
NET CASH FROM FINANCING	-$1.0B
FREE CASH FLOW	$1.6B
Net Change in Cash	$382M

Balance Sheet

Item	Amount
Cash & Equivalents	$5.6B
Short-Term Investments	$1.9B
Net Receivables	$3.1B
Inventory	$0
Other Current Assets	$2.6B
TOTAL CURRENT ASSETS	$13.2B
PP&E (Net)	$901M
Goodwill	$3.0B
Intangible Assets	$1.1B
Long-Term Investments	$240M
Tax Assets	$425M
Other Non-Current Assets	$2.0B
TOTAL NON-CURRENT ASSETS	$7.7B
TOTAL ASSETS	$20.9B
Account Payables	$722M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$3.9B
TOTAL CURRENT LIABILITIES	$8.0B
Long-Term Debt	$5.4B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$139M
Other Non-Current Liabilities	$860M
TOTAL NON-CURRENT LIABILITIES	$6.4B
TOTAL LIABILITIES	$14.4B
Common Stock	$0
Additional Paid-In Capital	$4.3B
Retained Earnings	$22.4B
Treasury Stock	-$19.7B
Accum. Other Comp. Income	-$542M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.4B
Minority Interest	$96M
TOTAL EQUITY	$6.5B
TOTAL LIABILITIES & EQUITY	$20.9B
Total Debt	$5.4B
Net Debt	-$166M