Mastercard Inc (MA)

“As it relates to Q3, we expect that our rebates and incentives as a percentage of our payment network assessments will be slightly higher than it was in Q2.”

“As it relates to the BVNK closure, as Michael mentioned, we expect the acquisition to close in Q3.”

“We expect to close the BVNK acquisition this quarter.”

“On other income and expense, in Q3, we expect an expense of approximately $125 million.”

“We anticipate a 0.5 percentage point headwind from inorganic activity, while foreign exchange is forecasted to be a tailwind of approximately 0 to 0.5 percentage points for the quarter.”

“From an operating expense standpoint, we expect Q3 growth to be at the low double-digits range versus a year ago on a currency-neutral basis, excluding inorganic activity and special items.”

“We expect a minimal impact from inorganic activity and a headwind of approximately 0.5 percentage points from foreign exchange given the recent trajectory of the U.S. dollar.”

“As it relates to our expectations for the third quarter of 2026, year-over-year net revenue growth is expected to be at the high end of low double-digit range on a currency-neutral basis, excluding inorganic activity.”

“Open USD is set to go live later this year.”

“And finally, we expect a non-GAAP tax rate in the range of 20% to 21% for both Q3 and Q4.”

“We expect a minimal impact from inorganic activity and a headwind of 0.5 to 1 percentage point from foreign exchange on a full-year basis.”

“As it relates to operating expenses, year-over-year growth is expected to remain at the low double-digits range versus a year ago on a currency-neutral basis, excluding inorganic activity and special items.”

“We anticipate minimal impact from inorganic activity and a tailwind of approximately 1 percentage point from foreign exchange.”

“Although this is the same range we shared previously, we now expect to be higher within the range than our prior expectations, largely due to our stronger first half performance.”

“As we look to the full year of 2026, we expect net revenue growth to be at the high end of low double-digit range on a currency-neutral basis, excluding inorganic activity.”

“As we look to the rest of the year, we estimate impacts from the Middle East conflict will remain at similar levels to what we saw towards the end of Q2.”

“As we look at the second half of the year, our base case continues to assume spending remains healthy.”

“More specifically on your question on rebate and incentives, what I'll share with you is in the second quarter, we expect for rebates and incentives as a percentage of our payment network assessments to be slightly lower sequentially as compared to the first quarter.”

“Second, we expect lower cash balances and higher debt levels in the second quarter.”

“We do not expect these to repeat in the second quarter.”

“On other income and expense, in Q2, we expect an expense of approximately $150 million.”

“We anticipate a 0 to 1 ppt benefit from the disposition while foreign exchange is forecasted to be a headwind of approximately 0 to 1 ppt for the quarter.”

“From an operating expense standpoint, we expect Q2 growth to be at the low end of low double digits range versus a year ago, again, on a currency-neutral basis, excluding inorganic activity.”

“We expect minimal impact from a disposition that we anticipate to close within the quarter and a tailwind of approximately 1 to 2 ppt from foreign exchange.”

“As it relates to our expectations for the second quarter of 2026, year-over-year net revenue growth is expected to be at the low end of low double digits range on a currency-neutral basis, excluding inorganic activity.”

“While there will be some impact in Q3 and Q4, we expect that there will be a gradual recovery or progressive recovery, which will take place in Q3 and Q4 based on the assumption that the conflict ends in Q2.”

“And finally, we expect a non-GAAP tax rate in the range of 20% to 21% for both Q2 and the full year.”

“We expect a 0.5 to 1 ppt tailwind from the disposition and a headwind of 0.5 to 1 ppt from foreign exchange on a full year basis.”

“From an operating expense standpoint, we expect growth to be at the low double digits range versus a year ago on a currency-neutral basis, excluding inorganic activity.”

“We anticipate minimal impact from the planned disposition and a tailwind of approximately 1.5 ppt from foreign exchange.”

“As it relates to our expectations for the full year 2026, net revenue growth remains at the high end of a low double-digit range on a currency-neutral basis, excluding inorganic activity.”

“We assume the conflict ends in Q2 and the related headwinds will be largest in Q2 and then progressively recover as we move through the second half of the year.”

“As we look at Q2 and the full year, our base case assumes underlying consumer spending remains healthy outside of the impact of the conflict in the Middle East.”

“We do expect that Security Solutions is going to be a continued significant growth driver for us.”

“Core card network upgrades are already delivering faster transaction flow and near real-time settlement. These capabilities are live in South Africa today already driving new wins and incremental switching. And we look to extend into other markets over time.”

“But what I will share with you is that in Q1, we expect our contra as a percentage of payment network assessments to be flat to slightly down.”

“Other items to keep in mind, on other income and expenses in Q1, we expect an expense of approximately $50 million including the benefit from the government grants previously discussed.”

“Separately, as Michael mentioned, based on the recent strategic review of our business, we expect to record a one-time restructuring charge in Q1 of approximately $200 million will be recorded as a special item and is excluded from our non-GAAP metrics.”

“Foreign exchange is forecasted to be a headwind of approximately 2.5 ppt for the quarter.”

“Estimate a tailwind of approximately 3.5 to four ppt foreign exchange for the quarter.”

“Now turning to the 2026. Year over year net revenue growth is expected to be at the low end of a low double digits range.”

“Have now enabled our US issuers to participate in agent pay. And we are working to enable our global issuer base by the end of the first quarter.”

“Our base case, which is the the basis of the guidance that we've shared with you, is that consumer and business spending remains healthy”

“Finally, we expect a non-GAAP tax rate in the range of 20% to 21% for the full year and approximately 19% to 20% for Q1.”

“We expect a headwind of 0.5 to one ppt from foreign exchange on a full-year basis.”

“From a net revenue perspective, we expect currency-neutral growth in the first half of the year to be lower than in the second half.”

“As it relates to our expectations for the full year 2026, we expect net revenues to grow at the high end of a low double digits range on a currency-neutral basis, excluding inorganic activity.”

“We expect to realize the operating expense benefit primarily in 2025 and 2026, while the other income and expense benefit will extend multiple years beyond 2026.”

“The cards are migrating over, and they will continue to through the course of the fourth quarter and going into the early part of next year.”

“We expect our non-GAAP tax rate to be around 21% for Q4 and between 20.5% and 21% for the full year.”

“Acquisitions are forecasted to increase the OpEx growth rate for the year by 4 to 5 ppt, while we expect a headwind of 0 to 1 ppt from foreign exchange.”

“From an operating expense standpoint, we continue to expect growth to be at the low end of a low double-digits range versus a year ago on a currency-neutral basis, excluding acquisitions and special items.”

“Acquisitions are expected to add 1 to 1.5 ppt to this growth rate for the year, and we estimate a tailwind of 1 to 2 ppt from foreign exchange.”

“We continue to expect net revenues to grow at the low teens range on a currency-neutral basis, excluding acquisitions.”

“We continue to see Q4 having the highest contra percentage relative to the other quarters, primarily driven by timing within the year and normal seasonality.”

“Look, I mean, the conversion is underway. We expect the conversion to complete in 2026.”

“It is fair to assume that the headwind in 2027 will be there, because you no longer have the benefit of that contractual obligation offsetting in 2027.”

“You should not assume that the offset completely negates the impact of the lost net revenue.”

“There will be further impacts, which will come through from an associated revenue standpoint as the cards start to migrate away from us and are migrating away from us. That being said, there are some contractual obligations, which will help offset some of this financial impact in 2026. Net-net, there'll still be an adverse impact from a net revenue standpoint.”

“I would say, yes, sure. I mean you would see the lapping effect of that particular value delivery, which took place for which we priced happened in the second half of this year.”

“I would say that in Q3, we expect rebates and incentives as a percentage of our payment network assessments to be sequentially higher compared to Q2.”

“And at the same time, we continue to expect a strong partnership on the credit side and the services side.”

“We expect this year the net revenue impact to be minimal to our overall company's net revenues. Vast majority of the impact we expect to feel will be next year.”

“So what you should expect is that the lapping impact has gotten more pronounced in Q2 and then we'll continue through in Q2 -- Q3 and Q4.”

“Finally, we expect our non-GAAP tax rate to be in the 20% to 21% range for both Q3 and the full year based on the current geographic mix of our business.”

“In Q3, we expect an expense of approximately $130 million, given the prevailing interest rates and debt levels.”

“Acquisitions are forecasted to increase the OpEx growth rate for the year by 4 to 5 ppt, while we expect a headwind of 0 to 1 ppt from foreign exchange.”

“From an operating expense standpoint, we continue to expect growth to be at the low end of a low double-digit range versus a year ago on a currency-neutral basis, excluding acquisitions and special items.”

“Acquisitions are expected to add 1 to 1.5 ppt to this growth for the year while we now estimate a tailwind of 1 to 2 ppt from foreign exchange.”

“We now expect net revenues to grow at the low teens range on a currency-neutral basis, excluding acquisitions.”

“One is the fact which you mentioned, which is the lapping of the wins we had last year, which is going to start to come through as the year progresses. It started in Q1, it'll continue at a more accelerated pace in Q2, and then it'll go on for the quarters to come”

“The other thing which you'll see is the lapping of certain amounts of pricing which was put in place last year. So that'll also start to come through as the year progresses.”

“So we continue to expect a strong relationship with Discover.”

“The guide we've given you as it relates to our full year numbers contemplate our best estimate of what we think the impact of that transaction will be.”

“So I perfectly will expect that rebates and incentives because it's a timing issue as far as I'm concerned will actually occur as the year goes along.”

“But in addition to that, right, we do expect from a cadence standpoint that as the year continues, that you will see, particularly in the second half, an increase in operating expenses which will take place because we do have plans to make investments and there are several areas which we will make investments on”

“And third, we expect incremental interest expense in Q2 related to our recent debt issuance.”

“Second, we expect interest income to decrease in the second quarter due to an expected lower average cash balance.”

“On other income and expenses, in Q2, we expect an expense of approximately $135 million, given the prevailing interest rates and debt levels.”

“From an operating expense standpoint, we continue to expect growth to be at the low end of a low double digits range versus a year ago on a currency neutral basis, excluding acquisitions and special items.”

“Acquisitions are expected to add 1 to 1.5 ppt to this growth rate for the year.”

“We continue to expect net revenue to grow at the high end of a low double digits to low teens range on a currency neutral basis, excluding acquisitions.”

“On other income and expenses, in Q1, we expect an expense of approximately $120 million, given the prevailing interest rates and debt levels.”

“Acquisitions are forecasted to have a 1 to 1.5 ppt impact to this growth rate, while we expect a headwind of approximately 3 ppt from foreign exchange for the quarter.”

“From an operating expense standpoint, we expect growth to be at the low end of a low double digits range versus a year ago on a currency-neutral basis, excluding acquisitions and special items.”

“We estimate a headwind of approximately 2 ppt from foreign exchange, while acquisitions are expected to add 1 to 1.5 ppt to this growth rate for the year.”

“So, we see this as a space that's going to continue and drive growth for us.”

“The other element is around pricing, right? I mean we've talked a little bit about some of the pricing actions which we've taken for all the innovation investments that we've been doing as a company. You're going to see the lapping effect of that come through as well.”

“Similarly, as it relates to citizens, the vast majority of the ramp up on citizens took place in Q2 of 2024 with a little tail effect in Q3. So, you'll see that again lap off in 2025.”

“So, you'll see the lapping effect of that come through in 2025.”

“And then, our business there, both from a secular and a market share standpoint that this should perform well.”

“This planned addition is expected to make our cybersecurity value proposition stronger, open up cross-sell opportunities with new customers, and add to our addressable market.”

“Starting in 2025, we expect the new Pillar Two global minimum tax rules will offset the benefit of this incentive brand.”

“Finally, we expect a non-GAAP tax rate of approximately 17% for Q4 based on the current geographic mix of our business.”

“On other income and expenses, in Q4, we expect an expense of approximately $85 million.”

“Of note, this reflects higher spending in advertising and marketing in Q4, as compared to Q3, primarily driven by the cadence of spend related to our sponsorship activities.”

“So I believe that the penetration of generative AI and our fraud and cybersecurity product that will only expand.”

“We said in the first quarter where we had a slightly lower growth rate. We're going to be higher quarter -- every single quarter for the rest of this year, and that is playing out as predicted.”

“So if anything, this whole space is going to grow further, and you're going to continue to see us invest in that area.”

“So I continue to expect a growth opportunity there.”

“And then more specifically, as it relates to Q3, we expect that our rebates and incentives as a percentage of our payment network assessments will be higher than it was in Q2.”

“It still remains in the pipeline. It's still something we expect will occur as the year progresses.”

“Finally, we expect a non-GAAP tax rate of between 17% and 18% for Q3 and 17% to 17.5% on a full year basis, all based on the current geographic mix of our business.”

“On other income and expenses, in Q3, we expect an expense of approximately $100 million.”

“Acquisitions and foreign exchange are forecasted to have a minimal impact to this growth for the year.”

“In terms of operating expenses, our expectations for the full year are to grow at the low end of a low double-digit range on a currency-neutral basis, excluding acquisitions and special items.”

“Acquisitions are forecasted to have a minimal impact for the year, and foreign exchange is now expected to be a headwind of approximately one ppt for the year.”

“As it relates to the full year we expect net revenue to grow at the high end of a low double-digit range on a currency-neutral basis, excluding acquisitions.”

“We also expect they will contribute to delivering positive operating leverage over the long term.”

“Separately, as Michael mentioned, as part of our recent reorganization, we expect to record a onetime restructuring charge in Q3 of approximately $190 million.”

“Acquisitions are forecasted to have a minimal impact to this OpEx growth for the quarter, while we expect a 0 to one ppt tailwind from foreign exchange.”

“We expect higher growth in advertising and marketing in Q3 compared to the first half of the year primarily driven by the cadence of spend related to our sponsorship activities.”

“Acquisitions are forecasted to have a minimal impact to this growth rate while we expect a one to two ppt headwind from foreign exchange for the quarter.”

“As a result of this organizational realignment, which positions us well for the long-term growth, we expect to incur a onetime restructuring charge in the third quarter.”

“With these strong results, we are reiterating our full year 2024 outlook for both net revenue and operating expense on a currency-neutral basis, excluding acquisitions and special items.”

“What I was basically alluding to is that as the year progresses, we will be spending more on the advertising and marketing line.”

“You'll see that come through the ensuing quarters as the year progresses as well.”

“We don't expect any dramatic impact on the business from the interchange changes.”

“I don't necessarily expect that the growth rates there are going to get comparable to what we see on the safety and security side as well as in the consulting and marketing and loyalty solutions side, primarily because the opportunity which is there on Safety and Security and Consulting is a much larger TAM and it's a faster-growing TAM, and we're continuing to execute on it.”

“As it relates to the thoughts I shared as it relates to growth rates for value-added services and solutions for the remaining quarters of the year... the growth rates would be higher in each of the quarters compared to Q1.”

“There was a time line associated with the license, and we're expecting to go live with the first transactions to a very specific question here in the month of May.”

“Finally, we expect a non-GAAP tax rate of approximately 17% for both Q2 and on a full year basis, all based on the current geographic mix of our business.”

“This expense is higher than what we had in Q1, driven by lower forecasted net average cash balances in Q2, primarily due to higher working capital requirements as well as the geographic mix of cash.”

“Other items to keep in mind, on other income and expenses in Q2, we expect an expense of approximately $85 million.”

“Acquisitions are forecasted to have a minimal impact to this growth rate, while we expect an approximately 2 ppt headwind from foreign exchange for the quarter.”

“In terms of operating expenses, our expectations for the full year are to grow at the low end of a low double-digit range on a currency-neutral basis, excluding acquisitions and special items.”

“Acquisitions are forecasted to have a minimal impact for the year.”

“This reflects continued healthy consumer spending and higher value-added services and solutions growth in all quarters for the balance of the year as compared to Q1.”

“We expect net revenue to grow at the high end of a low double-digit range on a currency-neutral basis, excluding acquisitions.”

“But if you ask me the question on a year-over-year basis, I would tell you, I don’t expect any meaningful shift in terms of suddenly the trajectory of how the secular opportunity is being realized between the U.S. and the rest of the world to be changing between ‘23 and ‘24.”

“From an overall EPS standpoint, it actually ends up being slightly accretive because of the more than offset, which is taking place on the tax line there.”

“So for example, Citizens, Webster, UniCredit, Deutsche Bank, all of these will play out over the course of ‘24 and in some instances, over multiple years.”

“So overall, I tell you from the U.S. standpoint, it continues to be a very important market, one which is going to be a decent contributor to our growth, driven by the PCE growth component, the secular shift as well as share.”

“Finally, we expect a non-GAAP tax rate of 16% to 17% for Q1 and approximately 17% on a full year basis, all based on the current geographic mix of our business.”

“On the other income and expense line, we expect an expense of approximately $60 million to $65 million for Q1, given the prevailing interest rates and debt levels.”

“Acquisitions and foreign exchange are forecasted to have a minimal impact to this growth rate for the quarter.”

“Of note, this includes an increase of approximately 1 ppt in operating expense due to a new Brazil tax legislation, which went into effect as of January 1, 2024.”

“In terms of operating expenses, we expect full year growth at the low end of a low double-digit rate on a currency-neutral basis, excluding acquisitions and special items.”

“As it relates to the full-year 2024, our base case is for net revenues to grow at the high end of a low double-digit rate on a currency-neutral basis, excluding acquisitions.”

“The platform, which is scheduled for pilot launch later this year, will leverage AI to provide personalized real-time assistance delivered in a conversational tone.”

“All of that being said, there is the overall strength we see in our CNI and DNS side, which we're actually very positive of, we're seeing good demand in that space.”

“I think our philosophy from an operations standpoint is to continue to deliver positive operating leverage over the long term.”

“So we continue to expect strong growth in value-added services and solutions, DNS and CSI, as we said.”

“Webster, we just announced, which we're super excited about, right? And the portfolio transition will also begin in 2024 and will take place over a period of time.”

“Our base case scenario assumes, a resilient consumer. And that's very much what we're assuming going forward as well.”

“You would expect that contra sequentially would be up as a percentage of our, assessment revenue in the fourth quarter, not too different than what you would see in any other year.”

“Finally, we expect a tax rate of approximately 18% to 19% in Q4, based on the current geographic mix of our business.”

“On the other income and expense line, we forecast an expense of approximately $85 million for Q4.”

“Acquisitions are forecast to add about one ppt to this growth, and foreign exchange is expected to be a headwind of between zero to one ppt for the quarter.”

“Due to the recent strengthening of the U.S. dollar in Q4, foreign exchange is now expected to be a tailwind of approximately zero to one ppt for the quarter, as compared to the three to four ppt benefit we had previously expected.”

“Acquisitions are expected to have a minimal impact to this growth.”

“And the last one I'd mention is around Unicredit, which is something which will happen over multiple years.”

“I don't see an end to the demand. In fact, that is key to our segment diversification strategy. So running at a healthy clip. I don't see any moderation here. This is -- will continue to grow.”

“So you're going to see a little bit of that trend come through, which is what we were kind of calling out. But all of that is factored into our thinking as we think about the rest of the year and in my full year guidance.”

“We still expect to be active in the markets. We still expect to vigorously compete in these markets.”

“Second, we expect a non-GAAP tax rate of between 18% and 19% for Q3 and Q4 based on the current geographic mix of our business and the recent U.S. tax guidance that allows for more tax credits to be claimed related to 2022 and 2023.”

“First, on the other income and expense line, we forecast an expense of approximately $90 million for Q3.”

“Acquisitions are forecast to add approximately 0 to 1 ppt to this growth, and foreign exchange is expected to be a headwind of approximately 1 to 2 ppt.”

“Acquisitions are forecasted to add about 1 ppt to this growth, and foreign exchange is expected to be a headwind of approximately 0 to 1 ppt for the year.”

“Our expectations for operating expense for the year are also unchanged with growth expected to be at the high end of a high single-digit rate on a currency-neutral basis excluding acquisitions and special items.”

“Foreign exchange is expected to be a tailwind of 1 ppt for the year, and we expect a minimal impact from acquisitions.”

“We expect net revenue growth for the full year 2023 to remain in the low teens range on a currency-neutral basis excluding acquisitions and special items.”

“As Michael mentioned, we are prepared to proactively adjust our operating expenses if we see meaningful changes to top line growth.”

“As the year progresses, you're going to start to see the impact of that market share on some of the players start to tail off just because you'll be reaching the lapping stage on that.”

“We view this impact of the lower tax refund to be relatively transitory.”

“As more capacity comes on, which we expect will happen, right, you will tend to see the benefit of that come through in our cross-border travel metrics.”

“So what you should expect is there are going to be lapping-related issues, which will be a headwind to year-over-year growth rate on all metrics and in cross-border as well.”

“For Q2, I can tell you that rebates and incentives as a percentage of total payment network assessments, it would be roughly similar to what we had in Q1.”

“First, on the other income and expense line, we forecast an expense of approximately $100 million for Q2 given the prevailing interest rates and debt levels, which includes a sequential increase due to our recent debt issuance.”

“Acquisitions are forecast to add approximately 0 to 1 ppt to this growth, while foreign exchange is expected to be a tailwind of approximately 0 to 1 ppt.”

“This includes cost of approximately 2 ppt associated with the wind down of our efforts related to the P27 project, given their decision to withdraw their license application in the Nordics.”

“Our expectations for operating expense for the year are unchanged with growth expected to be at the high end of a high single-digit rate on a currency-neutral basis, excluding acquisitions and special items.”

“Foreign exchange is expected to be a tailwind of 1 ppt for the year, and we expect minimal impact from acquisitions.”

“We expect net revenue growth for the full year 2023 to be at a low teens rate on a currency-neutral basis, excluding acquisitions and special items.”

“Again, we are prepared to proactively adjust our operating expenses if we see meaningful changes to top line growth.”

“In my view, the demand for our services capability still remains very strong. You’ve seen that we’ve been growing at a faster pace in services relative to the overall growth of our business. And I don’t think we should assume anything different on a going-forward basis.”

“Just to give you a little bit of perspective, we had talked about Santander historically. That migration is in progress. And we’re through the bulk of a 9 million card migration there. We expect to be complete by early 2023 on that one.”

“And new networks is relatively nascent really. So again, I would put that into the space of it’s growing. It’s growing off a small base at a very healthy clip.”

“What I will share with you is as it relates to the recovery of both inbound and outbound for China, we have built in some level of recovery as the year progresses.”

“On the other income and expense line, we are at an expense run rate of approximately $100 million per quarter given the prevailing interest rates and debt levels.”

“Acquisitions are forecast to add about 0.5 a ppt to this growth, while foreign exchange is expected to be a headwind of 2 ppt for the quarter.”

“Acquisitions are forecast to add about 0.5 of a ppt to this growth, while foreign exchange is expected to be a 1 ppt headwind for the year.”

“For the year, we expect operating expenses to grow at the high end of a high-single-digit rate on a currency-neutral basis, excluding acquisitions and special items.”

“Acquisitions are forecasted to have a minimal impact to this growth rate, while foreign exchange is expected to be a tailwind of approximately 1 ppt for the year, primarily due to the recent strengthening of the euro relative to U.S. dollar.”

“It is important to remember that we are coming off a year of strong growth as we lap the effects of the pandemic, and we expect our go-forward growth rates to moderate accordingly.”

“We’re actively working with them to take the solution to market this year.”

“We’ve got a strong pipeline for Mastercard Installments and plan to add several additional programs across multiple regions throughout the year.”

“I will point out that as it relates to Q4, you should expect that the yield will decline some, which is very consistent with what you see every year.”

“number two, we are expecting stable to slightly improved cross-border travel growth relative to 2019 levels.”

“In terms of rebates and incentives, to your question, as a percentage of gross revenues we expect them to be higher in the fourth quarter.”

“finally we expect a tax rate of approximately 19% in Q4 based on the current geographic mix of our business.”

“Other items to keep in mind, on the other income and expense line, we are at an expense run rate of approximately $100 million per quarter given the prevailing interest rates.”

“We talked to you at the Investor Day in November last year that we see share growth across all of our carded products and we continue to feel very good about that.”

“Taking this all into account, including our well-diversified business model, we are increasing our expectations for net revenue growth for the full year 2022 to a low 20s rate on a currency-neutral basis, excluding acquisitions and special items.”

“What I'll share with you is the following that we expect that incentives as a percentage of growth will be roughly similar in Q3 to what we saw in Q2.”

“We expect a tax rate of approximately 19% in Q4.”

“and finally, we expect a tax rate of between 19% and 21% in Q3, which includes a discrete tax item related to an unfavorable court judgment, the details of which we are still assessing.”

“Other items to keep in mind, on the other income and expense line, we are at an expense run rate of approximately $115 million per quarter given the prevailing interest rates.”

“Acquisitions are forecast to add about five ppt to this growth. Foreign exchange is expected to be a tailwind of approximately five ppt for the quarter.”

“Acquisitions are forecasted to add about one ppt to this growth, while foreign exchange is expected to be a headwind of approximately seven to eight ppt for the quarter.”

“Acquisitions are forecasted to add about four ppt to this growth, while foreign exchange is expected to be a tailwind of approximately three to four ppt for the year.”

“For the year, we expect operating expenses to grow at the low end of a low-double-digit rate on a currency-neutral basis, excluding acquisitions and special items.”

“Acquisitions are forecasted to add about one ppt to this growth, while foreign exchange is expected to be a headwind of five to six ppt for the year, primarily due to the strengthening of the U.S. dollar versus the euro.”

“We are monitoring each of these, but on balance, expect a modest improvement in cross-border travel versus 2019 levels and a generally resilient consumer spending through the remainder of 2022.”

“Going forward however, the year-over-year growth metrics will face tougher comps as we begin lapping periods when COVID-related restrictions eased and spending levels started to rebound.”

“There's nothing to be said that there's anything changing on the growth rates of our business. So that will continue.”

“the strength which we're seeing in card-not-present ex-travel from a cross-border standpoint, is something we expect that strength to actually stay going forward as well.”

“And finally, we expect a tax rate of approximately 18% to 19% for each of the remaining quarters of the fiscal year based on the current geographic mix of our business.”

“Other items to keep in mind, on the other income and expense line, we are at an expense run rate of approximately $115 million per quarter given the prevailing interest rates and our recent debt issuance.”

“Acquisitions are forecast to add about four to five ppt to this growth, including the acquisition of Dynamic Yield, which we are pleased to have just closed. Foreign exchange is expected to be a tailwind of approximately three to four ppt for the quarter.”

“Acquisitions are forecast to add about four to five ppt to this growth, while foreign exchange is expected to be a tailwind of approximately two to three ppt for the year.”

“So now taking all of this into account, we continue to expect net revenues for full year 2022 to grow at the high end of a high teens rate on a currency-neutral basis, excluding acquisitions and special items.”

“Clearly, the elimination of Russia-related revenues and the reduction of those from Ukraine create a headwind to achieving these objectives. If this would continue, it would result in a headwind of approximately two ppt to our net revenue CAGR.”

“So there is an assumption there. And we've been pretty vocal about that, that we do continue to believe that cross-border travel will return to pre-pandemic levels by the end of the year.”

“From an operating margin perspective, we will continue to operate with the philosophy of delivering a minimum annual operating margin of 50%.”

“While Omicron has had some recent impact on cross-border travel, we continue to believe that cross-border travel will return to 2019 levels by the end of this year.”

“Services continues to do really well, and has been accretive to our yield in the past. And we expect that given the opportunity in services, that will be the case going forward as well.”

“And finally, we expect to deliver an EPS CAGR in the low-20s range on a currency neutral basis, excluding the impact of special items, gains and losses on equity investments and future acquisitions.”

“This assumes an annual target market volume growth rate of 10% to 11%, cross-border travel returning to 2019 levels by the end of 2022 and doing our services revenues at a 20% plus CAGR.”

“Using 2021 as our base over the 2022 to 2024 period, we expect to deliver a net revenue compound annual growth rate in the high-teens.”

“On the other income and expense line, we are at an expense run rate of approximately $115 million per quarter, given the prevailing interest rates and debt levels.”

“Acquisitions are forecast to add about 6 ppt to this growth, while foreign exchange is expected to be a tailwind of approximately 1 ppt for the quarter.”

“Many countries have relaxed their border restrictions, and we continue to expect cross-border travel to recover to 2019 levels by the end of 2022.”

“I mean, as people are spending more in discretionary categories, lodging, travel, restaurants, credit is definitely coming right back to the top of wallet. And we expect that as the economy continues to recover in different parts of the globe, that reversion to mean will continue, and that's kind of our view as it relates to how credit plays out over the near to medium-term.”

“So, look, I mean, the value prop we used to deliver through cross-border payments on our carded products, pre-pandemic and post-pandemic is exactly the same. So we don’t expect that the economic returns, which they will generate, should be any different, given that the value we delivered previously, if anything, has only gotten better over a period of time with more electronification of flows taking place.”

“So we kind of view the following, which is to the extent that inflation is moderate, right? We think that – of that to be a positive tailwind kind of to our business.”

“And finally, we expect the tax rate of approximately 18% to 19% for the fourth quarter.”

“On the other income and expense line, we are at an expense run rate of approximately $120 million per quarter, given the prevailing interest rates.”

“Other items to keep in mind. Foreign exchange is expected to be about 0.5 ppt headwind to both net revenue and operating expenses in Q4.”