Mastercard announces Q4 revenue is up 27% in annual earnings report

The financial services company surpassed analyst estimates, reporting higher fourth quarter revenue and greater earnings per share.
Written by Evan Zimmer, Staff Writer

Mastercard reported Thursday its earnings for the fourth quarter ending December 31, 2021 of $2.3 billion, or $2.35 per share, a 27% increase from the previous year, on revenue of $5.2 billion.

The company beat analyst expectations, which had estimated that Q4 earnings per share would come in at $2.19.

Revenue for the full year is also up 23% to $18.9 billion. Mastercard CEO Michael Miebach said in the press release that the increase in revenue is due in part to an increase in consumer cross-border spending, which the company reports is now above pre-pandemic levels.

Mastercard's full-year EPS was reported at $8.40, up 31% from $6.43 per share, on revenue of $18.9 billion. "We are optimistic about the coming year as consumers, businesses and governments have become more adaptable to the changing environment," Miebach said in the press release.

The company revealed cross-border spending was up 53% over the previous year, a significant jump from pandemic levels, showing consumer travel is up. The company also reported that new acquisitions contributed to a 9% increase in revenue.

"While there is some uncertainty related to Omicron and potential future variants, our overall expectations for 2022 are positive," said Mastercard CFO Sachin Mehra on the earnings conference call. Mehra said he expects revenues to grow in 2022 at the high end of a high-teens rate, without taking acquisitions into account. With acquisitions, it could be higher.

Speaking about the company's three-year plan which they introduced in November, Mehra said Mastercard is on track to reach its goals. "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," he said.

Miebach said the company is optimistic as the new year begins, as Mastercard is expanding its services and partnerships, including a new collaboration with Coinbase to allow the purchase of non-fungible tokens (NFTs) with Mastercards. The company is also looking to expand contactless acceptance using smartphones.

"We are executing on our strategic priorities and making good progress in scaling new products, strengthening partner relationships, and winning new deals," Miebach said.

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