MA Q3 2020 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q3 2020 Earnings

Reported October 28, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2020	Q2 2020	Q3 2019	QoQ Change	YoY Change
Revenue	$3.8B	$3.3B	$4.5B	15.1%	-14.1%
Op. Income	$2.1B	$1.7B	$2.7B	23.3%	-20.7%
Gross Margin	75.5%	72.6%	79.0%	2.9pp	-3.5pp
Net Margin	39.4%	42.6%	47.2%	-3.1pp	-7.8pp
EPS (Diluted)	$1.51	$1.41	$2.07	7.1%	-27.1%
Free Cash Flow	$1.5B	$1.3B	$2.1B	16.8%	-30.3%

Revenue Flow

Item	Amount
REVENUE	$3.8B
Cost of Revenue	$940M
GROSS PROFIT	$2.9B
R&D Expenses	$0
Selling & Marketing	$168M
General & Administrative	$460M
SG&A Expenses	$628M
Other Expenses	$164M
Operating Expenses	$792M
Cost & Expenses	$1.7B
OPERATING INCOME	$2.1B
Interest Income	$0
Interest Expense	$105M
Other Income/Expenses	-$190M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$402M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.5B
D&A	$141M
EBIT	$2.0B
EBITDA	$2.2B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$3.8B
Cost of Revenue	$940M
GROSS PROFIT	$2.9B
R&D Expenses	$0
Selling & Marketing	$168M
General & Administrative	$460M
SG&A Expenses	$628M
Other Expenses	$164M
Operating Expenses	$792M
Cost & Expenses	$1.7B
OPERATING INCOME	$2.1B
Interest Income	$0
Interest Expense	$105M
Other Income/Expenses	-$190M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$402M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.5B
D&A	$141M
EBIT	$2.0B
EBITDA	$2.2B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.5B
Depreciation & Amortization	$141M
Stock-Based Compensation	$75M
Deferred Income Tax	-$22M
Other Non-Cash Items	$419M
Change in Working Capital	-$472M
OPERATING CASH FLOW	$1.7B
Capital Expenditure	-$165M
Acquisitions (Net)	$86M
Purchases of Investments	-$160M
Sales/Maturities of Investments	$120M
Other Investing Activities	-$80M
NET CASH FROM INVESTING	-$199M
Net Debt Issuance	$0
Common Stock Repurchased	-$2.1B
Common Dividends Paid	-$402M
Other Financing Activities	-$2M
NET CASH FROM FINANCING	-$2.5B
FREE CASH FLOW	$1.5B
Net Change in Cash	-$898M

Balance Sheet

Item	Amount
Cash & Equivalents	$10.2B
Short-Term Investments	$400M
Net Receivables	$3.7B
Inventory	$0
Other Current Assets	$3.9B
TOTAL CURRENT ASSETS	$18.5B
PP&E (Net)	$1.9B
Goodwill	$4.2B
Intangible Assets	$1.5B
Long-Term Investments	$913M
Tax Assets	$607M
Other Non-Current Assets	$4.1B
TOTAL NON-CURRENT ASSETS	$13.1B
TOTAL ASSETS	$31.6B
Account Payables	$341M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$2.7B
TOTAL CURRENT LIABILITIES	$10.0B
Long-Term Debt	$12.6B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$86M
Other Non-Current Liabilities	$3.1B
TOTAL NON-CURRENT LIABILITIES	$15.8B
TOTAL LIABILITIES	$25.7B
Common Stock	$0
Additional Paid-In Capital	$4.9B
Retained Earnings	$37.4B
Treasury Stock	-$35.7B
Accum. Other Comp. Income	-$880M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.8B
Minority Interest	$85M
TOTAL EQUITY	$5.9B
TOTAL LIABILITIES & EQUITY	$31.6B
Total Debt	$12.6B
Net Debt	$2.3B