MA Q3 2019 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q3 2019 Earnings

Reported October 29, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2019	Q2 2019	Q3 2018	QoQ Change	YoY Change
Revenue	$4.5B	$4.1B	$3.9B	8.6%	14.6%
Op. Income	$2.7B	$2.4B	$2.3B	10.8%	16.1%
Gross Margin	79.0%	79.3%	78.9%	-0.2pp	0.1pp
Net Margin	47.2%	49.8%	48.7%	-2.6pp	-1.5pp
EPS (Diluted)	$2.07	$2.00	$1.82	3.5%	13.7%
Free Cash Flow	$2.1B	$1.4B	$2.2B	57.8%	-4.5%

Revenue Flow

Item	Amount
REVENUE	$4.5B
Cost of Revenue	$937M
GROSS PROFIT	$3.5B
R&D Expenses	$0
Selling & Marketing	$227M
General & Administrative	$513M
SG&A Expenses	$740M
Other Expenses	$135M
Operating Expenses	$875M
Cost & Expenses	$1.8B
OPERATING INCOME	$2.7B
Interest Income	$0
Interest Expense	$63M
Other Income/Expenses	-$121M
INCOME BEFORE TAX	$2.5B
Income Tax Expense	$426M
Net Income from Continuing Ops	$2.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$2.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.1B
D&A	$137M
EBIT	$2.6B
EBITDA	$2.7B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$4.5B
Cost of Revenue	$937M
GROSS PROFIT	$3.5B
R&D Expenses	$0
Selling & Marketing	$227M
General & Administrative	$513M
SG&A Expenses	$740M
Other Expenses	$135M
Operating Expenses	$875M
Cost & Expenses	$1.8B
OPERATING INCOME	$2.7B
Interest Income	$0
Interest Expense	$63M
Other Income/Expenses	-$121M
INCOME BEFORE TAX	$2.5B
Income Tax Expense	$426M
Net Income from Continuing Ops	$2.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$2.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.1B
D&A	$137M
EBIT	$2.6B
EBITDA	$2.7B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$2.1B
Depreciation & Amortization	$137M
Stock-Based Compensation	$77M
Deferred Income Tax	-$51M
Other Non-Cash Items	$364M
Change in Working Capital	-$280M
OPERATING CASH FLOW	$2.4B
Capital Expenditure	-$219M
Acquisitions (Net)	-$447M
Purchases of Investments	-$211M
Sales/Maturities of Investments	$251M
Other Investing Activities	-$87M
NET CASH FROM INVESTING	-$626M
Net Debt Issuance	$0
Common Stock Repurchased	-$1.8B
Common Dividends Paid	-$335M
Other Financing Activities	-$28M
NET CASH FROM FINANCING	-$2.1B
FREE CASH FLOW	$2.1B
Net Change in Cash	-$473M

Balance Sheet

Item	Amount
Cash & Equivalents	$5.1B
Short-Term Investments	$751M
Net Receivables	$5.2B
Inventory	$0
Other Current Assets	$3.6B
TOTAL CURRENT ASSETS	$14.8B
PP&E (Net)	$1.5B
Goodwill	$3.7B
Intangible Assets	$1.3B
Long-Term Investments	$757M
Tax Assets	$518M
Other Non-Current Assets	$3.3B
TOTAL NON-CURRENT ASSETS	$11.1B
TOTAL ASSETS	$26.0B
Account Payables	$505M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$2.1B
TOTAL CURRENT LIABILITIES	$10.7B
Long-Term Debt	$7.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$97M
Other Non-Current Liabilities	$2.4B
TOTAL NON-CURRENT LIABILITIES	$10.2B
TOTAL LIABILITIES	$20.9B
Common Stock	$0
Additional Paid-In Capital	$4.7B
Retained Earnings	$32.3B
Treasury Stock	-$31.2B
Accum. Other Comp. Income	-$858M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.9B
Minority Interest	$100M
TOTAL EQUITY	$5.0B
TOTAL LIABILITIES & EQUITY	$26.0B
Total Debt	$7.7B
Net Debt	$2.6B