Volume continues to surge + diversified business is firing on all cylinders Mastercard (MA.US) Q4 exceeds expectations

Mastercard (MA.US) released its fourth-quarter and full-year 2024 earnings report before the market opened on Thursday. The data showed that Q4 revenue grew 14% year-on-year to $7.5 billion, slightly above the market's average expectation of $7.4 billion. Net profit grew 20% year-on-year to $3.3 billion, and adjusted EPS was $3.82, topping analysts' expectations of $3.70. The beat was mainly driven by strong consumer spending that boosted transaction volumes, as well as the company's diversification beyond traditional payment networks, into areas such as anti-fraud services and global fund flows. The company's operating profit in Q4 grew 17% year-on-year to $3.9 billion, with an operating margin of 52.6%. The total global purchase volume - the total amount of shopping done using Mastercard-branded cards - grew to $2.11 trillion, in line with expectations. Moreover, cross-border transaction volumes increased more than expected, up 20% in local currency, compared to the expected 17.5%. For the full year 2024, Mastercard's revenue was $28.2 billion, up 12% from 2023. Net profit was $12.9 billion, up 15% year-on-year, and adjusted EPS grew 19% to $14.60. Last November, at its first investor day since 2021, the company predicted that its net income would grow by a "low double-digit high" (close to 19%) percentage annually in the period from 2025 to 2027. This growth rate is lower than the company's previous forecast for 2022 to 2024. At the investor day, Mastercard also highlighted growth opportunities related to global remittances and expansion in the Chinese market. CEO Michael Miebach noted, "Our diversified capabilities in payments, services, and solutions - including the acquisition of Recorded Future this quarter - set us apart and provide a strong foundation for long-term growth." Following the release of the report, Mastercard's stock price rose 1.25% in pre-market trading to $555.64 at the time of writing.