Visa Inc.

Welcome to Visa's fiscal third quarter 2020 earnings conference call. All participants are in a listen-only mode until the question and answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host, Mr. Mike Miletic, Senior Vice President of Investor Relations. Mr. Miletic, you may now begin.

Thank you, Jordan. Good afternoon, everyone, and welcome to Visa's fiscal third quarter 2020 earnings call. Joining us today are Al Kelly, Visa's Chairman and Chief Executive Officer, and Vasant Prabhu, Visa's Vice Chairman and Chief Financial Officer. This call is being webcast on the investor relations section of our website at www.investor.visa.com. A replay will be archived on our site for 30 days. A slide deck containing financial and statistical highlights has been posted on our IR website. Let me also remind you that this presentation includes forward-looking statements. These statements are not guarantees of future performance, and our actual results could differ materially as a result of many factors. Additional information concerning those factors is available in our most recent reports on Forms 10-K, 10-Q, and 8-K, which you can find on the SEC's website and the investor relations section of our website. For historical non-GAAP financial information disclosed in this call, the related GAAP measures and reconciliation are available in today's earnings release. And with that, let me turn the call over to Al.

Mike, thank you very much. You know, the past few months certainly continued to be challenging, and our focus has and will always remain on the well-being of our employees, clients, and the communities in which we operate. Even with significant impacts to the economies around the world, many aspects of Visa's business have proven to be resilient and we've continued to invest to propel Visa's growth well into the future in consumer payments, new flows, and value-added services. Today, after discussing our results, I will then provide an overview of the ways COVID-19 is shifting the ways consumers, businesses, and governments want to pay and be paid, and in turn, how Visa is helping them. I will close with some notable deal highlights for the quarter that demonstrate how we continue to enable the movement of money globally. So to start our third quarter results, Net revenues in the fiscal third quarter were $4.8 billion, a decrease of 17% or 16% in constant dollars. All of the business drivers were significantly impacted by the pandemic. Payments volume this quarter declined 10% globally or 9% excluding China. Cross-border buy-in excluding intra-Europe, which drives our international transaction revenues, declined 47% on a constant dollar basis driven primarily by the lack of travel. Including inter-Europe, volume was down 37%. We processed 30.7 billion transactions, or over 337 million per day through the quarter on our network, a 13% decrease over the prior year. However, in each case, the business drivers improved each month throughout the quarter meaningfully for payment volume and process transactions, and only marginally for cross-border volume. In new flows, Visa Direct grew global transactions in the mid-60s for year-over-year, and our value-added services revenue grew in the mid-teens year-over-year. We also effectively managed our expenses, which declined 5 percent, but more importantly, this was achieved without affecting investments in our primary growth initiatives. Our non-GAAP EPS declined 23%. While COVID-19 certainly impacted our fiscal third quarter performance, there are many trends that are accelerating the demand for consumer payments, new flows, and value-added services, which will help our business as we look ahead.