Visa Inc. reported its financial results for the first quarter of fiscal 2025, ending December 31, 2024, showcasing a net revenue of $9.51 billion, a 10% increase from $8.63 billion in the same period last year. The company's net income rose to $5.12 billion, up 5% from $4.89 billion, while diluted earnings per share increased to $2.58, compared to $2.39 in the prior year. The growth in revenue was primarily driven by an increase in processed transactions and nominal payments volume, despite higher client incentives impacting the overall figures.
Operating expenses for the quarter surged by 22% to $3.28 billion, up from $2.68 billion a year earlier. This increase was largely attributed to higher personnel costs, which rose 23% due to severance expenses and an expanded workforce aimed at supporting long-term growth initiatives. General and administrative expenses also saw a significant rise of 42%, influenced by unfavorable foreign currency fluctuations and increased travel-related costs. The company recorded a litigation provision of $44 million, reflecting ongoing legal challenges.
In a strategic move, Visa completed the acquisition of Featurespace Limited in December 2024 for $946 million. Featurespace specializes in artificial intelligence technology designed to combat payment fraud and financial crime, aligning with Visa's commitment to enhancing security in its payment processing services. This acquisition is expected to bolster Visa's capabilities in fraud prevention and risk management.
Visa's operational metrics showed a notable increase in processed transactions, which reached 63.8 billion, an 11% rise from the previous year. The company also reported a 10% growth in nominal payments volume, totaling $4.03 trillion. Geographically, international revenue grew by 16%, while U.S. revenue increased by 3%. As of December 31, 2024, Visa's cash and cash equivalents stood at $12.37 billion, reflecting a solid liquidity position.
Looking ahead, Visa anticipates continued growth driven by the expansion of its payment network and the increasing adoption of digital payment solutions. The company remains focused on enhancing its product offerings and expanding its market presence, while also navigating ongoing legal matters and economic conditions that may impact its operations.
About VISA INC.
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