MA Q4 2020 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

Q4 2020 Earnings

Reported February 12, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2020	Q3 2020	Q4 2019	QoQ Change	YoY Change
Revenue	$4.1B	$3.8B	$4.4B	7.4%	-6.7%
Op. Income	$2.1B	$2.1B	$2.4B	-2.2%	-14.2%
Gross Margin	76.5%	75.5%	78.8%	1.0pp	-2.3pp
Net Margin	43.3%	39.4%	47.6%	3.9pp	-4.3pp
EPS (Diluted)	$1.78	$1.51	$2.07	17.9%	-14.0%
Free Cash Flow	$2.1B	$1.5B	$2.8B	41.2%	-24.8%

Revenue Flow

Item	Amount
REVENUE	$4.1B
Cost of Revenue	$970M
GROSS PROFIT	$3.1B
R&D Expenses	$0
Selling & Marketing	$242M
General & Administrative	$636M
SG&A Expenses	$878M
Other Expenses	$214M
Operating Expenses	$1.1B
Cost & Expenses	$2.1B
OPERATING INCOME	$2.1B
Interest Income	$0
Interest Expense	$105M
Other Income/Expenses	$110M
INCOME BEFORE TAX	$2.2B
Income Tax Expense	$383M
Net Income from Continuing Ops	$1.8B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.8B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.8B
D&A	$150M
EBIT	$2.3B
EBITDA	$2.4B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$4.1B
Cost of Revenue	$970M
GROSS PROFIT	$3.1B
R&D Expenses	$0
Selling & Marketing	$242M
General & Administrative	$636M
SG&A Expenses	$878M
Other Expenses	$214M
Operating Expenses	$1.1B
Cost & Expenses	$2.1B
OPERATING INCOME	$2.1B
Interest Income	$0
Interest Expense	$105M
Other Income/Expenses	$110M
INCOME BEFORE TAX	$2.2B
Income Tax Expense	$383M
Net Income from Continuing Ops	$1.8B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.8B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.8B
D&A	$150M
EBIT	$2.3B
EBITDA	$2.4B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.8B
Depreciation & Amortization	$150M
Stock-Based Compensation	$52M
Deferred Income Tax	$66M
Other Non-Cash Items	$102M
Change in Working Capital	$98M
OPERATING CASH FLOW	$2.3B
Capital Expenditure	-$151M
Acquisitions (Net)	-$806M
Purchases of Investments	-$162M
Sales/Maturities of Investments	$62M
Other Investing Activities	$3M
NET CASH FROM INVESTING	-$1.1B
Net Debt Issuance	$0
Common Stock Repurchased	-$1.0B
Common Dividends Paid	-$399M
Other Financing Activities	$45M
NET CASH FROM FINANCING	-$1.4B
FREE CASH FLOW	$2.1B
Net Change in Cash	$15M

Balance Sheet

Item	Amount
Cash & Equivalents	$10.1B
Short-Term Investments	$483M
Net Receivables	$4.4B
Inventory	$0
Other Current Assets	$4.1B
TOTAL CURRENT ASSETS	$19.1B
PP&E (Net)	$1.9B
Goodwill	$5.0B
Intangible Assets	$1.8B
Long-Term Investments	$1.2B
Tax Assets	$491M
Other Non-Current Assets	$4.2B
TOTAL NON-CURRENT ASSETS	$14.5B
TOTAL ASSETS	$33.6B
Account Payables	$527M
Short-Term Debt	$649M
Deferred Revenue	$0
Other Current Liabilities	$4.4B
TOTAL CURRENT LIABILITIES	$11.8B
Long-Term Debt	$12.0B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$86M
Other Non-Current Liabilities	$3.1B
TOTAL NON-CURRENT LIABILITIES	$15.2B
TOTAL LIABILITIES	$27.1B
Common Stock	$0
Additional Paid-In Capital	$5.0B
Retained Earnings	$38.7B
Treasury Stock	-$36.7B
Accum. Other Comp. Income	-$680M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.4B
Minority Interest	$126M
TOTAL EQUITY	$6.5B
TOTAL LIABILITIES & EQUITY	$33.6B
Total Debt	$12.7B
Net Debt	$2.6B