MA Q3 2018 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q3 2018 Earnings

Reported October 30, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2018	Q2 2018	Q3 2017	QoQ Change	YoY Change
Revenue	$3.9B	$3.7B	$3.4B	6.4%	14.7%
Op. Income	$2.3B	$1.9B	$1.9B	18.1%	17.8%
Gross Margin	78.9%	78.3%	78.7%	0.7pp	0.2pp
Net Margin	48.7%	42.8%	42.1%	5.9pp	6.6pp
EPS (Diluted)	$1.82	$1.50	$1.34	21.3%	35.8%
Free Cash Flow	$2.2B	$1.4B	$1.6B	64.0%	37.9%

Revenue Flow

Item	Amount
REVENUE	$3.9B
Cost of Revenue	$822M
GROSS PROFIT	$3.1B
R&D Expenses	$0
Selling & Marketing	$203M
General & Administrative	$444M
SG&A Expenses	$647M
Other Expenses	$142M
Operating Expenses	$789M
Cost & Expenses	$1.6B
OPERATING INCOME	$2.3B
Interest Income	$0
Interest Expense	$48M
Other Income/Expenses	-$23M
INCOME BEFORE TAX	$2.3B
Income Tax Expense	$365M
Net Income from Continuing Ops	$1.9B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.9B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.9B
D&A	$111M
EBIT	$2.3B
EBITDA	$2.4B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$3.9B
Cost of Revenue	$822M
GROSS PROFIT	$3.1B
R&D Expenses	$0
Selling & Marketing	$203M
General & Administrative	$444M
SG&A Expenses	$647M
Other Expenses	$142M
Operating Expenses	$789M
Cost & Expenses	$1.6B
OPERATING INCOME	$2.3B
Interest Income	$0
Interest Expense	$48M
Other Income/Expenses	-$23M
INCOME BEFORE TAX	$2.3B
Income Tax Expense	$365M
Net Income from Continuing Ops	$1.9B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.9B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.9B
D&A	$111M
EBIT	$2.3B
EBITDA	$2.4B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.9B
Depreciation & Amortization	$111M
Stock-Based Compensation	$55M
Deferred Income Tax	-$102M
Other Non-Cash Items	$313M
Change in Working Capital	$91M
OPERATING CASH FLOW	$2.4B
Capital Expenditure	-$130M
Acquisitions (Net)	-$11M
Purchases of Investments	-$417M
Sales/Maturities of Investments	$315M
Other Investing Activities	$12M
NET CASH FROM INVESTING	-$231M
Net Debt Issuance	$0
Common Stock Repurchased	-$1.2B
Common Dividends Paid	-$260M
Other Financing Activities	$7M
NET CASH FROM FINANCING	-$1.4B
FREE CASH FLOW	$2.2B
Net Change in Cash	$710M

Balance Sheet

Item	Amount
Cash & Equivalents	$6.9B
Short-Term Investments	$1.6B
Net Receivables	$3.6B
Inventory	$0
Other Current Assets	$2.9B
TOTAL CURRENT ASSETS	$15.1B
PP&E (Net)	$876M
Goodwill	$3.0B
Intangible Assets	$1.0B
Long-Term Investments	$279M
Tax Assets	$502M
Other Non-Current Assets	$2.6B
TOTAL NON-CURRENT ASSETS	$8.3B
TOTAL ASSETS	$23.3B
Account Payables	$382M
Short-Term Debt	$500M
Deferred Revenue	$0
Other Current Liabilities	$4.4B
TOTAL CURRENT LIABILITIES	$9.7B
Long-Term Debt	$5.9B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$50M
Other Non-Current Liabilities	$1.9B
TOTAL NON-CURRENT LIABILITIES	$7.8B
TOTAL LIABILITIES	$17.5B
Common Stock	$0
Additional Paid-In Capital	$4.5B
Retained Earnings	$26.7B
Treasury Stock	-$24.8B
Accum. Other Comp. Income	-$670M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.8B
Minority Interest	$92M
TOTAL EQUITY	$5.9B
TOTAL LIABILITIES & EQUITY	$23.3B
Total Debt	$6.4B
Net Debt	-$513M