EX-99.1 2 ma06302022-exx991xearnings.htm EX-99.1 Document

Earnings Release
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Mastercard Incorporated Reports Second Quarter 2022 Financial Results

Second quarter net income of $2.3 billion, and diluted earnings per share (EPS) of $2.34
Second quarter adjusted net income of $2.5 billion, and adjusted diluted EPS of $2.56
Second quarter net revenue of $5.5 billion, an increase of 21%, or 27% on a currency-neutral basis
Second quarter gross dollar volume up 14% and purchase volume up 18%, on a local currency basis
Purchase, NY - July 28, 2022 - Mastercard Incorporated (NYSE: MA) today announced financial results for the second quarter 2022.
“We had strong revenue and earnings growth again this quarter, as overall consumer spending remained robust and cross-border volumes grew 58% versus year ago” said Michael Miebach, Mastercard CEO. “Increasing inflationary pressures have yet to significantly impact overall consumer spending but we will continue to monitor this closely. We have a well-diversified business model and the demonstrated ability to deliver strong operating margins through up and down cycles.”

Quarterly Results
Second Quarter Operating ResultsIncrease / (Decrease)
$ in billions, except per share data
Q2 2022Q2 2021Reported GAAPCurrency-neutral
Net revenue$5.5$4.521%27%
Operating expenses$2.5$2.213%17%
Operating income$3.0$2.329%36%
Operating margin54.9%51.7%3.2 ppt3.8 ppt
Effective income tax rate18.7%16.6%2.1 ppt2.2 ppt
Net income$2.3$2.110%16%
Diluted EPS$2.34$2.0813%18%
Key Second Quarter Non-GAAP Results 1
Increase / (Decrease)
$ in billions, except per share data

Q2 2022Q2 2021As adjustedCurrency-neutral
Adjusted net revenue$5.5$4.521%27%
Adjusted operating expenses$2.3$2.19%12%
Adjusted operating margin57.9%53.2%4.7 ppt5.4 ppt
Adjusted effective income tax rate18.8%15.9%2.9 ppt3.1 ppt
Adjusted net income$2.5$1.929%37%
Adjusted diluted EPS$2.56$1.9531%40%
1 The Key Second Quarter Non-GAAP Results exclude the impact of gains and losses on the company’s equity investments, special items as described on page 11 (“Second Quarter Special Items”) and/or currency. See page 11 for the company’s non-GAAP adjustments and the reconciliation to GAAP reported amounts.



Q2 2022 Key Business Drivers
(YoY growth)
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Gross dollar volume
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Cross-border volume
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Switched transactions
(local currency basis)(local currency basis)
up 14%up 58%up 12%
The following information is provided to aid in understanding Mastercard’s second quarter 2022 results, versus the year ago period. As a reminder, we suspended our business operations in Russia in March 2022.
Net revenue increased 21%. Excluding the impact of Second Quarter Special Items, adjusted net revenue also increased 21%, or 27% on a currency-neutral basis, which includes a 1 percentage point benefit from acquisitions. Primary drivers of the increase were as follows:
Gross dollar volume growth of 14%, on a local currency basis, to $2.1 trillion.
Cross-border volume growth of 58% on a local currency basis.
Switched transactions growth of 12%.
Other revenues increased 18%, or 23% on a currency-neutral basis, which includes 3 percentage points of growth due to acquisitions. The remaining growth was driven primarily by the company’s Cyber & Intelligence and Data & Services solutions.
Rebates and incentives (contra-revenue) increased 19%, or 23% on a currency-neutral basis, primarily due to increased volumes and transactions and new and renewed deals.
Total operating expenses increased 13%. Excluding the impact of Second Quarter Special Items, adjusted operating expenses increased 9%, or 12% on a currency-neutral basis. This includes a 5 percentage point increase from acquisitions. The remaining increase was primarily due to higher personnel costs to support the continued investment in our strategic initiatives, as well as unfavorable foreign exchange activity.
Other income (expense) was unfavorable $357 million, primarily due to net losses in the current period versus net gains in the prior period related to unrealized fair market value adjustments on marketable and nonmarketable equity securities. Adjusted other income (expense) was favorable $2 million versus the year ago period.
The effective tax rate for the second quarter of 2022 was 18.7%, versus 16.6% for the comparable period in 2021. The adjusted effective tax rate for the second quarter of 2022 was 18.8%, versus 15.9% for the comparable period in 2021, primarily due to a discrete tax benefit in the prior year related to the remeasurement of the Company’s net deferred tax asset in the U.K.
As of June 30, 2022, the company’s customers had issued 3.0 billion Mastercard and Maestro-branded cards.
Return of Capital to Shareholders
During the second quarter of 2022, Mastercard repurchased 6.9 million shares at a cost of $2.4 billion and paid $477 million in dividends. Quarter-to-date through July 25, the company repurchased 1.4 million shares at a cost of $448 million, which leaves $6.7 billion remaining under the approved share repurchase programs.




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Year-to-date Results
Year-to-date Operating ResultsIncrease / (Decrease)
$ in billions, except per share data
20222021Reported GAAPCurrency-neutral
Net revenue$10.7$8.723%27%
Operating expenses$4.7$4.113%16%
Operating income$6.0$4.532%38%
Operating margin56.0%52.3%3.7 ppt4.3 ppt
Effective income tax rate11.9%16.6%(4.6) ppt(4.6) ppt
Net income$4.9$3.926%32%
Diluted EPS$5.02$3.9128%34%
Key Year-to-date Non-GAAP Results 1
Increase / (Decrease)
$ in billions, except per share data20222021As adjustedCurrency-neutral
Adjusted net revenue$10.6$8.722%27%
Adjusted operating expenses$4.5$4.110%13%
Adjusted operating margin57.7%53.0%4.7 ppt5.3 ppt
Adjusted effective income tax rate12.3%16.4%(4.1) ppt(4.0) ppt
Adjusted net income$5.2$3.741%49%
Adjusted diluted EPS$5.32$3.6944%52%
1. The Key Year-to-date Non-GAAP Results exclude the impact of gains and losses on the company’s equity investments, special items as described on page 12 (“Year-to-date Special Items”) and/or currency. See page 12 for the company’s non-GAAP adjustments and the reconciliation to GAAP reported amounts.
Year-to-date 2022 Key Business Drivers
(YoY growth)
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Gross dollar volume
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Cross-border volume
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Switched transactions
(local currency basis)(local currency basis)
up 15%up 56%up 16%

The following information is provided to aid in understanding Mastercard’s year-to-date 2022 results, versus the year ago period. As a reminder, we suspended our business operations in Russia in March 2022.
Net revenue increased 23%. Excluding the impact of Year-to-date Special Items, adjusted net revenue increased 22%, or 27% on a currency-neutral basis, which includes a 2 percentage point benefit from acquisitions. Primary drivers of the increase were as follows:
Gross dollar volume growth of 15%, on a local currency basis, to 4.0 trillion.
Cross-border volume growth of 56% on a local currency basis.
Switched transactions growth of 16%.
Other revenues increased 18%, or 22% on a currency-neutral basis, which includes 5 percentage points of growth due to acquisitions. The remaining growth was driven primarily by the company’s Cyber & Intelligence and Data & Services solutions.
Rebates and incentives (contra-revenue) increased 22%, or 25% on a currency-neutral basis, primarily due to increased volume and transactions and new and renewed deals. Rebates and incentives (contra-revenue) include a 1 percentage point reduction from Year-to-date Special Items.
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Total operating expenses increased 13%. Excluding the impact of Year-to-date Special Items, adjusted operating expenses increased 10%, or 13% on a currency-neutral basis. This includes a 5 percentage point increase from acquisitions. The remaining increase was primarily due to higher personnel costs to support the continued investment in our strategic initiatives, increased spending on advertising and marketing and unfavorable foreign exchange activity.
Other income (expense) was unfavorable $527 million, primarily due to net losses in the current period versus net gains in the prior period related to unrealized fair market value adjustments on marketable and nonmarketable equity securities. Adjusted other income (expense) was favorable $2 million versus the year ago period.
The effective tax rate for 2022 was 11.9%, versus 16.6% for the comparable period in 2021. The adjusted effective tax rate for 2022 was 12.3%, versus 16.4% for the comparable period in 2021, primarily due to a discrete tax benefit due to final U.S. tax regulations published in the current year, partially offset by a discrete tax benefit in the prior year related to the remeasurement of the Company’s net deferred tax asset in the U.K. The U.S. tax regulations resulted in a valuation allowance release of $333 million associated with the U.S. foreign tax credit carryforward deferred tax asset.
Return of Capital to Shareholders
Year-to-date 2022, Mastercard repurchased 13.7 million shares at a cost of $4.8 billion and paid $956 million in dividends.
Second Quarter 2022 Financial Results Conference Call Details
At 9:00 a.m. ET today, the company will host a conference call to discuss its second quarter 2022 results. The dial-in information for this call is 888-330-2508 (Toll-free) and 1-240-789-2735 (Toll dial-in), using passcode 6451878. A replay of the call will be available for 30 days and can be accessed by dialing 800-770-2030 (Toll-free) and 1-647-362-9199 (Toll dial-in), using passcode 6451878.
A live audio webcast of this call, along with presentation slides, can also be accessed through the Investor Relations section of the company’s website at investor.mastercard.com.
Forward-Looking Statements
This press release contains forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. When used in this press release, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements that relate to Mastercard’s future prospects, developments and business strategies. We caution you to not place undue reliance on these forward-looking statements, as they speak only as of the date they are made. Except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events.
Many factors and uncertainties relating to our operations and business environment, all of which are difficult to predict and many of which are outside of our control, influence whether any forward-looking statements can or will be achieved. Any one of those factors could cause our actual results to differ materially from those expressed or implied in writing in any forward-looking statements made by Mastercard or on its behalf, including, but not limited to, the following factors:
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regulation directly related to the payments industry (including regulatory, legislative and litigation activity with respect to interchange rates and surcharging)
the impact of preferential or protective government actions
regulation of privacy, data, security and the digital economy
regulation that directly or indirectly applies to us based on our participation in the global payments industry (including anti-money laundering, counter financing of terrorism, economic sanctions and anti-corruption, account-based payments systems, and issuer and acquirer practice regulation)
the impact of changes in tax laws, as well as regulations and interpretations of such laws or challenges to our tax positions
potential or incurred liability and limitations on business related to any litigation or litigation settlements
the impact of the global COVID-19 pandemic and measures taken in response
the impact of competition in the global payments industry (including disintermediation and pricing pressure)
the challenges relating to rapid technological developments and changes
the challenges relating to operating a real-time account-based payments system and to working with new customers and end users
the impact of information security incidents, account data breaches or service disruptions
issues related to our relationships with our stakeholders (including loss of substantial business from significant customers, competitor relationships with our customers, consolidation amongst our customers, merchants’ continued focus on acceptance costs and unique risks from our work with governments)
exposure to loss or illiquidity due to our role as guarantor and other contractual obligations
the impact of global economic, political, financial and societal events and conditions, including adverse currency fluctuations and foreign exchange controls
events and resulting actions related to the Russian invasion of Ukraine
reputational impact, including impact related to brand perception and lack of visibility of our brands in products and services
the inability to attract, hire and retain a highly qualified and diverse workforce, or maintain our corporate culture
issues related to acquisition integration, strategic investments and entry into new businesses
issues related to our Class A common stock and corporate governance structure
For additional information on these and other factors that could cause the company’s actual results to differ materially from expected results, please see the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2021 and any subsequent reports on Forms 10-Q and 8-K.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
www.mastercard.com
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Contacts:
Investor Relations:Media Relations:
Warren Kneeshaw or Jud StaniarSeth Eisen
investor.relations@mastercard.comSeth.Eisen@mastercard.com
914-249-4565914-249-3153
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Consolidated Statement of Operations (Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in millions, except per share data)
Net Revenue$5,497 $4,528 $10,664 $8,683 
Operating Expenses:
General and administrative1,947 1,718 3,791 3,394 
Advertising and marketing210 216 391 335 
Depreciation and amortization189 186 381 349 
Provision for litigation133 67 133 67 
Total operating expenses2,479 2,187 4,696 4,145 
Operating income3,018 2,341 5,968 4,538 
Other Income (Expense):
Investment income12 
Gains (losses) on equity investments, net(117)243 (193)337 
Interest expense(114)(106)(224)(213)
Other income (expense), net(3)
Total other income (expense)(220)137 (397)130 
Income before income taxes2,798 2,478 5,571 4,668 
Income tax expense523 412 665 774 
Net Income$2,275 $2,066 $4,906 $3,894 
Basic Earnings per Share$2.34 $2.09 $5.04 $3.93 
Basic weighted-average shares outstanding971 990 974 992 
Diluted Earnings per Share$2.34 $2.08 $5.02 $3.91 
Diluted weighted-average shares outstanding974 994 977 996 
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Consolidated Balance Sheet (Unaudited)
June 30, 2022December 31, 2021
(in millions, except per share data)
Assets
Current assets:
Cash and cash equivalents$5,921 $7,421 
Restricted cash for litigation settlement584 586 
Investments438 473 
Accounts receivable3,175 3,006 
Settlement assets1,063 1,319 
Restricted security deposits held for customers1,621 1,873 
Prepaid expenses and other current assets2,409 2,271 
Total current assets15,211 16,949 
Property, equipment and right-of-use assets, net of accumulated depreciation and
     amortization of $1,736 and $1,614, respectively
1,950 1,907 
Deferred income taxes920 486 
Goodwill7,519 7,662 
Other intangible assets, net of accumulated amortization of $1,839 and $1,755,
     respectively
3,676 3,671 
Other assets6,955 6,994 
Total Assets$36,231 $37,669 
Liabilities, Redeemable Non-controlling Interests and Equity
Current liabilities:
Accounts payable$633 $738 
Settlement obligations672 913 
Restricted security deposits held for customers1,621 1,873 
Accrued litigation923 840 
Accrued expenses6,111 6,642 
Current portion of long-term debt735 792 
Other current liabilities1,390 1,364 
Total current liabilities12,085 13,162 
Long-term debt13,746 13,109 
Deferred income taxes371 395 
Other liabilities3,767 3,591 
Total Liabilities29,969 30,257 
Commitments and Contingencies
Redeemable Non-controlling Interests26 29 
Stockholders’ Equity
Class A common stock, $0.0001 par value; authorized 3,000 shares, 1,399 and 1,397 shares issued and 960 and 972 shares outstanding, respectively
— — 
Class B common stock, $0.0001 par value; authorized 1,200 shares, 8 shares issued and outstanding
— — 
Additional paid-in-capital5,163 5,061 
Class A treasury stock, at cost, 439 and 425 shares, respectively(47,359)(42,588)
Retained earnings49,599 45,648 
Accumulated other comprehensive income (loss)(1,232)(809)
Mastercard Incorporated Stockholders' Equity
6,171 7,312 
Non-controlling interests65 71 
Total Equity6,236 7,383 
Total Liabilities, Redeemable Non-controlling Interests and Equity$36,231 $37,669 
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Consolidated Statement of Cash Flows (Unaudited)
Six Months Ended June 30,
20222021
(in millions)
Operating Activities
Net income$4,906 $3,894 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of customer and merchant incentives812 651 
Depreciation and amortization381 349 
(Gains) losses on equity investments, net193 (337)
Share-based compensation175 152 
Deferred income taxes(466)(15)
Other18 32 
Changes in operating assets and liabilities:
Accounts receivable(257)(158)
Settlement assets255 769 
Prepaid expenses(1,033)(995)
Accrued litigation and legal settlements85 63 
Restricted security deposits held for customers(252)110 
Accounts payable(110)(92)
Settlement obligations(239)(906)
Accrued expenses(282)27 
Net change in other assets and liabilities53 187 
Net cash provided by operating activities4,239 3,731 
Investing Activities
Purchases of investment securities available-for-sale(124)(261)
Purchases of investments held-to-maturity(139)(173)
Proceeds from sales of investment securities available-for-sale14 38 
Proceeds from maturities of investment securities available-for-sale113 171 
Proceeds from maturities of investments held-to-maturity160 156 
Purchases of property and equipment(201)(146)
Capitalized software(280)(191)
Purchases of equity investments(43)(87)
Proceeds from sales of equity investments— 
Acquisition of businesses, net of cash acquired(313)(4,200)
Other investing activities(5)(9)
Net cash used in investing activities 1
(812)(4,702)
Financing Activities
Purchases of treasury stock(4,788)(3,067)
Dividends paid(956)(873)
Proceeds from debt, net843 1,282 
Contingent consideration paid— (64)
Tax withholdings related to share-based payments(136)(125)
Cash proceeds from exercise of stock options68 44 
Other financing activities(6)
Net cash used in financing activities(4,975)(2,801)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents(202)(24)
Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents(1,750)(3,796)
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period9,902 12,419 
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period$8,152 $8,623 
1 The Company corrected prior period classifications of certain line items within investing activities on the consolidated statement of cash flows with no impact on total net cash used in investing activities.
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Non-GAAP Financial Information
Mastercard discloses the following non-GAAP financial measures: adjusted net revenue, adjusted operating expenses, adjusted operating margin, adjusted other income (expense), adjusted effective income tax rate, adjusted net income and adjusted diluted earnings per share (as well as related applicable growth rates versus the comparable period in the prior year). These non-GAAP financial measures exclude the impact of gains and losses on the company’s equity investments which includes mark-to-market fair value adjustments, impairments and gains and losses upon disposition, as well as the related tax impacts. These non-GAAP financial measures also exclude the impact of special items, where applicable, which represent litigation judgments and settlements and certain one-time items, as well as the related tax impacts. The company excludes these items because management evaluates the underlying operations and performance of the company separately from these recurring and nonrecurring items.
In addition, the company presents growth rates adjusted for the impact of currency, which is a non-GAAP financial measure. Currency-neutral growth rates are calculated by remeasuring the prior period’s results using the current period’s exchange rates for both the translational and transactional impacts on operating results as well as removing the related impact of the company’s foreign exchange derivative contracts designated as cash flow hedging instruments. The impact of currency translation represents the effect of translating operating results where the functional currency is different from the company’s U.S. dollar reporting currency. The impact of the transactional currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. The impact of the related realized gains and losses resulting from the company’s foreign exchange derivative contracts designated as cash flow hedging instruments is recognized in the respective financial statement line item on the statement of operations when the underlying forecasted transactions impact earnings. The company believes the presentation of currency-neutral growth rates provides relevant information to facilitate an understanding of its operating results.
The company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation.
The company includes reconciliations of the requisite non-GAAP financial measures to the most directly comparable GAAP financial measures. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for the company’s related financial results prepared in accordance with GAAP.

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Non-GAAP Reconciliations (QTD)
Three Months Ended June 30, 2022
Net revenue Operating expensesOperating marginOther income (expense)Effective income tax rate Net income Diluted earnings per share
($ in millions, except per share data)
Reported - GAAP$5,497 $2,479 54.9 %$(220)18.7 %$2,275 $2.34 
(Gains) losses on equity investments 1
******117 (0.6)%113 0.12 
Litigation provisions 2
 ** (133)2.4 % ** 0.7 %89 0.09 
Russia-related impacts 3
(6)(33)0.5 % ** — %20 0.02 
Adjusted - Non-GAAP$5,491 $2,313 57.9 %$(104)18.8 %$2,497 $2.56 

Three Months Ended June 30, 2021
Net revenue Operating expensesOperating marginOther income (expense)Effective income tax rate Net income Diluted earnings per share
($ in millions, except per share data)
Reported - GAAP$4,528 $2,187 51.7 %$137 16.6 %$2,066 $2.08 
(Gains) losses on equity investments 1
******(243)(0.9)%(182)(0.18)
Litigation provisions 4
**(67)1.5 %**0.2 %52 0.05 
Adjusted - Non-GAAP$4,528 $2,121 53.2 %$(106)15.9 %$1,937 $1.95 

Three Months Ended June 30, 2022 as compared to the Three Months Ended June 30, 2021
Increase/(Decrease)
Net revenue Operating expensesOperating marginEffective income tax rate Net income Diluted earnings per share
Reported - GAAP21 %13 %3.2  ppt2.1  ppt10 %13 %
(Gains) losses on equity investments 1
******0.3  ppt17 %17 %
Litigation provisions 2, 4
**(3)%1.0  ppt0.5  ppt%%
Russia-related impacts 3
— %(2)%0.5  ppt—  ppt%%
Adjusted - Non-GAAP21 %%4.7  ppt2.9  ppt29 %31 %
Currency impact 5
%%0.8  ppt0.1  ppt%%
Adjusted - Non-GAAP - currency-neutral27 %12 %5.4  ppt3.1  ppt37 %40 %
Note:    Tables may not sum due to rounding.
**    Not applicable
Gains and Losses on Equity Investments
1. Q2’22 pre-tax net losses of $117 million and Q2’21 pre-tax net gains of $243 million were primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities.
Second Quarter Special Items
2. Q2’22 pre-tax charges of $133 million are as a result of a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation.
3. Q2’22 pre-tax net charges of $26 million were directly related to imposed sanctions and the suspension of our business operations in Russia. The net charge is comprised of general and administrative expenses of $33 million primarily related to incremental employee-related costs, offset by a net benefit of $6 million in rebates and incentives (contra-revenue) primarily related to a reduction in liabilities as a result of lower estimates of customer performance for certain customer business agreements due to the suspension of our business operations in Russia.
4. Q2’21 pre-tax charges of $67 million related to litigation settlements and estimated attorney’s fees with U.K. merchants.
Other Notes
5. Represents the translational and transactional impact of currency and the related impact of the company’s foreign exchange derivative contracts designated as cash flow hedging instruments.
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Non-GAAP Reconciliations (YTD)
Six Months Ended June 30, 2022
Net revenue Operating expensesOperating marginOther income (expense)Effective income tax rate Net income Diluted earnings per share
($ in millions, except per share data)
Reported - GAAP$10,664 $4,696 56.0 %$(397)11.9 %$4,906 $5.02 
(Gains) losses on equity investments 1
******193 (0.2)%181 0.18 
Litigation Provisions 2
 ** (133)1.2 % ** 0.5 %89 0.09 
Russia-related impacts 3
(37)(67)0.5 % ** 0.1 %24 0.02 
Adjusted - Non-GAAP$10,627 $4,496 57.7 %$(205)12.3 %$5,199 $5.32 

Six Months Ended June 30, 2021
Net revenue Operating expensesOperating marginOther income (expense)Effective income tax rate Net income Diluted earnings per share
($ in millions, except per share data)
Reported - GAAP$8,683 $4,145 52.3 %$130 16.6 %$3,894 $3.91 
(Gains) losses on equity investments 1
******(337)(0.3)%(269)(0.27)
Litigation provisions 4
**(67)0.8 %**0.1 %52 0.05 
Adjusted - Non-GAAP$8,683 $4,079 53.0 %$(207)16.4 %$3,678 $3.69 

Six Months Ended June 30, 2022 as compared to the Six Months Ended June 30, 2021
Increase/(Decrease)
Net revenue Operating expensesOperating marginEffective income tax rate Net income Diluted earnings per share
Reported - GAAP23 %13 %3.7  ppt(4.6) ppt26 %28 %
(Gains) losses on equity investments 1
 **  **  ** 0.1  ppt14 %15 %
Litigation provisions 2, 4
 ** (1)%0.5  ppt0.4  ppt— %%
Russia-related impacts 3
— %(2)%0.5  ppt0.1  ppt%— %
Adjusted - Non-GAAP22 %10 %4.7  ppt(4.1) ppt41 %44 %
Currency impact 5
%%0.7  ppt0.1  ppt%%
Adjusted - Non-GAAP - currency-neutral27 %13 %5.3  ppt(4.0) ppt49 %52 %
Note:    Tables may not sum due to rounding.
**    Not applicable
Gains and Losses on Equity Investments
1. Year-to-date 2022 pre-tax net losses of $193 million and 2021 pre-tax net gains of $337 million were primarily related to unrealized fair market value adjustments on marketable and nonmarketable equity securities.
Year-to-Date Special Items
2. Year-to-date 2022 pre-tax charges of $133 million are as a result of a change in estimate related to the claims of merchants who opted out of the U.S. merchant class litigation.
3. Year-to-date 2022 pre-tax net charges of $30 million were directly related to imposed sanctions and the suspension of our business operations in Russia. The net charge is comprised of general and administrative expenses of $67 million primarily related to incremental employee-related costs and reserves on uncollectible balances with certain sanctioned customers, offset by a net benefit of $37 million in rebates and incentives (contra-revenue) primarily related to a reduction in liabilities as a result of lower estimates of customer performance for certain customer business agreements due to the suspension of our business operations in Russia.
4. Year-to-date 2021 pre-tax charges of $67 million related to litigation settlements and estimated attorneys’ fees with U.K. merchants.
Other Notes
5. Represents the translational and transactional impact of currency and the related impact of the company’s foreign exchange derivative contracts designated as cash flow hedging instruments.
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Mastercard Incorporated Operating Performance
For the 3 Months Ended June 30, 2022
GDV (Bil.)Growth (USD)Growth (Local)Purchase Volume (Bil.)Growth (Local)Purchase Trans. (Mil.)Purchase Trans. GrowthCash Volume (Bil.)Growth (Local)Cash Trans. (Mil.)
Cards (Mil.)
All Mastercard Credit, Charge and Debit Programs
APMEA$554 4.9 %12.2 %$396 14.4 %8,877 15.4 %$158 7.2 %1,552 903 
Canada64 19.2 %23.8 %63 24.2 %896 19.3 %11.2 %68 
Europe606 1.9 %14.0 %464 23.6 %12,951 (4.5)%142 (9.2)%985 673 
Latin America151 35.1 %34.3 %109 40.0 %4,450 29.6 %42 21.4 %344 341 
Worldwide less United States1,375 6.7 %15.6 %1,031 21.4 %27,174 6.8 %344 1.1 %2,887 1,985 
United States679 9.7 %9.7 %619 12.3 %9,380 6.3 %60 (11.9)%295 604 
Worldwide2,054 7.7 %13.6 %1,650 17.8 %36,554 6.7 %404 (1.0)%3,182 2,589 
Mastercard Credit and Charge Programs
Worldwide less United States640 9.8 %18.7 %607 20.0 %12,565 11.4 %33 (1.6)%160 751 
United States344 24.7 %24.7 %335 24.7 %3,505 20.6 %25.3 %293 
Worldwide984 14.6 %20.7 %942 21.6 %16,070 13.3 %41 3.1 %168 1,045 
Mastercard Debit Programs
Worldwide less United States735 4.1 %13.0 %424 23.3 %14,609 3.2 %311 1.4 %2,727 1,233 
United States336 (2.4)%(2.4)%284 0.6 %5,875 (0.6)%52 (16.1)%287 311 
Worldwide1,070 2.0 %7.7 %708 13.1 %20,484 2.1 %363 (1.5)%3,014 1,544 

For the 6 Months Ended June 30, 2022
GDV (Bil.)Growth (USD)Growth (Local)Purchase Volume (Bil.)Growth (Local)Purchase Trans. (Mil.)Purchase Trans. GrowthCash Volume (Bil.)Growth (Local)Cash Trans. (Mil.)Cards (Mil.)
All Mastercard Credit, Charge and Debit Programs
APMEA$1,103 5.6 %11.2 %$787 13.8 %17,061 15.3 %$315 5.2 %3,075 903 
Canada117 19.3 %21.8 %114 22.6 %1,643 17.5 %0.4 %11 68 
Europe1,164 6.2 %18.9 %883 27.9 %25,004 0.4 %281 (2.7)%1,884 673 
Latin America288 33.9 %34.0 %205 40.2 %8,647 31.2 %82 20.8 %667 341 
Worldwide less United States2,672 8.9 %17.1 %1,989 22.7 %52,355 9.8 %683 3.3 %5,636 1,985 
United States1,298 11.6 %11.6 %1,180 14.7 %18,038 8.1 %118 (12.1)%575 604 
Worldwide3,970 9.8 %15.2 %3,170 19.6 %70,393 9.3 %800 0.7 %6,212 2,589 
Mastercard Credit and Charge Programs
Worldwide less United States1,242 11.4 %19.1 %1,176 20.2 %24,211 13.2 %66 2.2 %303 751 
United States642 27.7 %27.7 %626 27.8 %6,576 23.2 %17 27.4 %16 293 
Worldwide1,884 16.5 %21.9 %1,802 22.7 %30,787 15.2 %82 6.4 %319 1,045 
Mastercard Debit Programs
Worldwide less United States1,430 6.8 %15.4 %814 26.5 %28,144 7.0 %617 3.5 %5,333 1,233 
United States656 (0.7)%(0.7)%555 2.8 %11,461 0.9 %101 (16.3)%559 311 
Worldwide2,086 4.3 %9.8 %1,368 15.7 %39,605 5.2 %718 0.1 %5,892 1,544 
Mastercard Incorporated Operating Performance (continued)
For the 3 Months ended June 30, 2021
GDV (Bil.)Growth (USD)Growth (Local)Purchase Volume (Bil.)Growth (Local)Purchase Trans. (Mil.)Purchase Trans. GrowthCash Volume (Bil.)Growth (Local)Cash Trans. (Mil.)Cards (Mil.)
All Mastercard Credit, Charge and Debit Programs
APMEA$528 30.3 %22.2 %$371 21.9 %7,694 30.5 %$157 22.9 %1,509 888 
Canada54 39.4 %23.5 %52 29.0 %751 31.2 %(49.5)%63 
Europe594 49.7 %42.2 %420 48.3 %13,557 49.7 %174 29.4 %1,047 690 
Latin America112 51.9 %43.2 %76 52.2 %3,433 46.7 %35 26.9 %278 257 
Worldwide less United States1,288 40.9 %32.6 %920 35.6 %25,435 42.4 %369 25.5 %2,839 1,898 
United States619 33.9 %33.9 %551 36.5 %8,820 27.1 %68 16.3 %332 537 
Worldwide1,908 38.5 %33.0 %1,471 35.9 %34,255 38.1 %437 24.0 %3,171 2,435 
Mastercard Credit and Charge Programs
Worldwide less United States583 34.0 %25.5 %547 26.4 %11,276 33.7 %36 13.7 %155 728 
United States276 49.7 %49.7 %269 49.7 %2,908 42.3 %48.7 %257 
Worldwide858 38.7 %32.4 %815 33.2 %14,183 35.4 %43 18.2 %162 985 
Mastercard Debit Programs
Worldwide less United States705 47.1 %39.0 %373 51.9 %14,159 50.2 %332 27.0 %2,684 1,170 
United States344 23.5 %23.5 %282 25.9 %5,913 20.7 %61 13.5 %325 279 
Worldwide1,049 38.4 %33.5 %655 39.4 %20,072 40.1 %394 24.7 %3,009 1,449 
For the 6 Months ended June 30, 2021
GDV (Bil.)Growth (USD)Growth (Local)Purchase Volume (Bil.)Growth (Local)Purchase Trans. (Mil.)Purchase Trans. GrowthCash Volume (Bil.)Growth (Local)Cash Trans. (Mil.)Cards (Mil.)
All Mastercard Credit, Charge and Debit Programs
APMEA$1,044 19.3 %13.1 %$728 14.8 %14,799 21.3 %$316 9.2 %3,065 888 
Canada98 23.6 %13.1 %95 16.0 %1,399 14.1 %(35.8)%63 
Europe1,097 26.9 %22.2 %770 26.5 %24,898 29.1 %327 13.2 %1,956 690 
Latin America215 19.4 %22.5 %146 30.0 %6,589 25.4 %70 9.2 %549 257 
Worldwide less United States2,454 22.7 %17.8 %1,738 21.0 %47,685 25.6 %715 10.6 %5,578 1,898 
United States1,163 23.6 %23.6 %1,029 25.0 %16,694 16.8 %134 13.9 %646 537 
Worldwide3,617 23.0 %19.6 %2,768 22.5 %64,379 23.2 %849 11.1 %6,224 2,435 
Mastercard Credit and Charge Programs
Worldwide less United States1,114 15.7 %10.4 %1,044 11.4 %21,394 18.0 %70 (2.1)%298 728 
United States503 22.2 %22.2 %490 23.5 %5,337 18.3 %13 (12.9)%13 257 
Worldwide1,617 17.7 %13.8 %1,533 15.0 %26,730 18.0 %83 (3.9)%311 985 
Mastercard Debit Programs
Worldwide less United States1,340 29.3 %24.7 %695 39.1 %26,292 32.6 %645 12.2 %5,281 1,170 
United States661 24.7 %24.7 %540 26.3 %11,357 16.0 %121 17.9 %633 279 
Worldwide2,000 27.7 %24.7 %1,234 33.2 %37,649 27.1 %766 13.1 %5,913 1,449 
 APMEA = Asia Pacific / Middle East / Africa
Note that the figures in the preceding tables may not sum due to rounding; growth represents change from the comparable year ago period.
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Footnote
The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase transactions, cash transactions and cards on a regional and global basis for Mastercard™-branded cards. Growth rates over prior periods are provided for volume-based data.
Debit transactions on Maestro® and Cirrus®-branded cards and transactions involving brands other than Mastercard are not included in the preceding tables.
For purposes of the table: GDV represents purchase volume plus cash volume and includes the impact of balance transfers and convenience checks; “purchase volume” means the aggregate dollar amount of purchases made with Mastercard-branded cards for the relevant period; and “cash volume” means the aggregate dollar amount of cash disbursements and includes the impact of balance transfers and convenience checks obtained with Mastercard-branded cards for the relevant period. The number of cards includes virtual cards, which are Mastercard-branded payment accounts that do not generally have physical cards associated with them.
The Mastercard payment products are comprised of credit, charge, debit and prepaid programs, and data relating to each type of program is included in the tables. The tables include information with respect to transactions involving Mastercard-branded cards that are not switched by Mastercard and transactions for which Mastercard does not earn significant revenues.
Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Mastercard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. Mastercard reports period-over-period rates of change in purchase volume and cash volume on the basis of local currency information, in order to eliminate the impact of changes in the value of currencies against the U.S. dollar in calculating such rates of change.
The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is provided by Mastercard customers and is subject to verification by Mastercard and partial cross-checking against information provided by Mastercard’s transaction switching systems. The data set forth in the cards columns is provided by Mastercard customers and is subject to certain limited verification by Mastercard. A portion of the data set forth in the cards columns reflects the impact of routine portfolio changes among customers and other practices that may lead to over counting of the underlying data in certain circumstances. All data is subject to revision and amendment by Mastercard or Mastercard’s customers. Starting in the first quarter of 2022, data related to sanctioned Russian banks was not reported to us and therefore such amounts are not included. Subsequent to the suspension of our business operations in Russia in March 2022, there is no Russian data to be reported.
Performance information for prior periods can be found in the Investor Relations section of the Mastercard website at investor.mastercard.com.
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