MA - Earnings call transcript Q1 2020 | Mastercard Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Mastercard's Q1 2020 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your presenter today, Executive Vice President of Investor Relations, Warren Kneeshaw. Please go ahead, sir.

Warren Kneeshaw

Thank you, James. thank earnings joining call. and first for everyone, XXXX quarter morning, you us for our Good We coworkers are you all hope and safe. your families and Officer; and today Miebach, Financial me are Banga, Chief With Ajay Officer. our Mehra, Sachin Executive President; our Chief our Michael

from is the will prepared Following for the will only opportunity then Ajay, if announce the for questions. and plan the to additional an necessary. for we the today, open our into that comments get queue Michael length Due Q&A your Sachin, comments for operator to session. of minutes to It queue allow XX questions,

our You in access slide Investor deck performance accompany earnings can data the and our the release, supplemental of Relations call this section that mastercard.com. website,

furnished the morning. with this was earlier SEC the Additionally, release

be to regarding non-GAAP amounts. release and Our our a unless noted. reconciliations will include GAAP measures deck results financial of Both on otherwise today non-GAAP reported the the basis, currency-neutral comments slide

factors release, in performance future could the Finally, as of forward-looking our at website our Actual earnings affect are summarized days. end this Mastercard's in A that recent performance. be release set the and from replay filings. earnings on will future call that statements forth posted to could our detail regarding include differ SEC in of our everyone performance will today's about call for XX remind forward-looking I'd Information statements. these more materially like

call turn will I that, our the now to Officer, Chief With Banga. over Executive Ajay

Ajay Banga

good Warren, and you, morning, everybody. Thank

as the and shows streams we had our strategy the and performance, you strength Our paying in But first that that have revenue trends continuing off. solid over our decade to our started and but first perused is quarter kind services-related to of XXXX. spread, as last it performance the pandemic know, all off strong off the impacted diversify developed we the revenues quarter in build

That's And that address diversify build solid like to trying and extraordinary the need do has strategy, everyone Now, clients period. brand Post our on we position our and throughout our grow, our technology, us this truly and together. we're support built this of created wonderful talk our a in you fortunate partners part. the able to we've challenge virus Michael else, of being put of will foundation hear to execution more difficult data, this the Sachin And and about me later. and people.

it's getting we've critical core, the of policy implementation on the having At most a the is all healthcare efforts, response to such important track. and And as public in positive as been our the this distancing social scaling increasing address needs is first economies therefore response sustained to step world's reading, back and the capacity is coordinated are effect. of It health the a crisis health near-term. the

the The will the middle prophylactics, on testing terms effective successful company and longer therapeutics processes and be development vaccines. over dependent and of the implementation of

Now, and we the with investment Therapeutics Foundation together our The Gates in contributing Wellcome Accelerator are through Trust.

policy be recovery a be time, particularly hard will We're across to during markets hit. also individuals, very downturn would effort provide the of packages and takes which critical for mean introduced businesses the being seeing others and stimulus of fiscal efforts are many In particularly hold. are the a for to supportive strong who this relief number countries, monetary small across as

assets, forces We've small the unique the technology, as a foundations million policy and are necessary mean determined the resources of recovery and of coalition support. Definitely, will with with product States. $XXX to of support by workers in in are needs partners effectiveness of out. displaced addressing philanthropic But initiatives. commitment we joined that across businesses shape insight time, providing the the helping tech U.S., United a Onward well the of speed as are and be Ultimately, we these again

how at tell let a to moment are we for looking gears this me on shift Now, you the ground.

that the We about mitigation restrictions contain new curve a work social through some really distinct the the helps framework to and distancing are orders have initiatives on and time COVID normalization like growth implemented team phases, effort growth. bend authority in the progression in entire spent from of by developing company. Think a public four cases. together travel and containment, and as stabilization, Containment home an the

buying initiatives complete from rapid in large perspective, volume this a Portfolios stabilizes characterized lower where in new believe currently the is spending with to payment limitations aided contraction are mitigation stabilization course, of mobility phase markets. perspective, our a necessities level and by around by most and spending in From we by phase are on due stabilization and, We these levels. a focus of e-commerce.

an and normalization, gradually becomes availability The will environment not will rollout tracing anticipate effective therapeutics the levels. think be before by improved a rebound and necessarily path spending the the this safer by enabled evenly. next during to recovery phase gradual mitigation to This to phase pre-COVID spending of practices characterized is vaccine. testing the we broader begin where governments We and in relax even phase, citizenry, of for but

mass early clothing, probably to is like geographies We pent-up see particularly areas throughout this some travel normalize normalization entertainment some would year. and travel rest of will earlier. domestic the intra-regional sectors that and expect signs It's possible take will like of healthcare, and Other or to we in home or sectors, long-haul or demand, there longer where improvement, recover.

to believe will available than to pre-COVID And the We bring proven help this where spending fruition. growth, final phase therapeutics trend change is widely vaccine and gradually levels a higher levels.

long we We sense. So we've It's and seen and are linear, using. Japan how Singapore fans necessarily containment, say to it's framework this as will growth recently this not the normalization stabilization, last. is think framework in makes impossible and frankly

We running the lexicon across with business are this common this company.

move forward. as You terms we will us about talk these progress hear in

that business important drivers more business. of our forms but payment in seen this rooted The to of secular we just all impacted, this accelerate out crisis. trends. expected cash and and PCE to electronic check are back from our clear to is you've bringing are than Now, coming those, It shift being is our metrics

We have a with to credit, strengthening prepaid balanced focus commercial like prepaid, portfolio which in in this. on debit, grow payments and to debit more share worked a times across and resilient hard tend be

presence We've our our the as of demonstrated in also with geographies diversified terms base business around customer globe. and our

to which our our us to capture a and on also new demand. the our revenue a liquidity, much linked strategy which of very of payment us are but transaction All build to course, they execute on new further capabilities foundation and this of help levels, significant flows a inorganically. in diversify services to are Now, not they strong balance for sheet lines, and organically, portion importantly allows stream long-term,

to three The be we're way. positioned near-term doubt than will of that very ago, the no these look just well months expected opportunities our significant it coming but most see different to make we we

turn we inside externally are So, address governments other now, like Normally, to both and and today. that large. also our situation the can company, let doing me the customers, control at are what we things our we focusing but to every with on society time,

most of the with our issue, and important employees. start me the Let health well-being

working open allowed have majority remain from do vast wherever but so, been employees to home. of the they offices are Our our

circumstances people new dealing and challenges. are unexpected Many with

in We're employees them off those we our themselves helping are benefits, take additional with or providing in to which health for every way care can. their loved that need ones. time for We

layoffs year. We our no have be COVID-XX-related assured will this employees that there

on the operational based network systems and and built have we resilient tested. fully remain regularly Our infrastructure that core have

as mitigate as planning. and they continuity are they with institutions side. that fortify come ensure navigate customers we're AI our in them We their are strong others engaging well, the tools, downturn plans helping other the out can risk them we on help leveraging financial business to to scenario

walls four reaching pandemic them worked we're focus out of with on today's the needs governments, of specific much we’ve And in in over also light increased crisis. to support beyond an past their our

We them positioned emergency solutions. uniquely provide both businesses and through help our payments to multirail to are people

almost Express the millions program enable XX% are involved some Chile. in account-to-account we're reaching world, support, now programs social including of of specific Direct of displaced leveraged the We financial being rails, also in United which support this and COVID-related payments hit in hardest about market. to like the prepaid that payments benefit facilitating and around payroll workers to markets and people, And through the state Israel States in work or the as and U.K. disbursement assistance all as in to businesses diverse

going there's more can on, we're but do. we what about lot a thinking always So

returns and let the difficult find on, we move will. just I the innovative of we ability this. me tremendous in in before then have through circumstances. And confidence get will face say, of to mankind confidence solutions it So

expect return driven the the trends fundamental growth company force. have will We that in

that products model benefits benefit business value that the diversification, from existing longer our and we which by the and resilient to solutions fact term. contribute of a prop, benefits from to ability new can that introduce ability all our grow have over to We optimize

fortunate side-by-side turn you this teams know, to And working the that, very unique him with to as with operating I to has I'm through have together. I'm going who, So over navigated as call this all we've me, think reporting Michael, him. time to

Michael? So,

Michael Miebach

you, Thank Ajay.

possibly our through be of to Likewise. growth. and streams the and our shift are be, leaning and connected executing new on together payment customer we end base leaning the containment diversifying banks, flows, a merchants, capturing well and now phases partner compare in and ultimately clearly we is We're customer with work strategic consumers, reach. the we're which payments, why in, to building the times, as fintechs difficult geographic Yes, needs can priorities, driving new our while closely normalization as revenue especially as these secular staying best and for electronic anticipating stabilization governments,

critical coming of All driving strategy to our enablers these our key they continue success crisis. been parts this be have will and of out

we this of expenses long-term to agile manage how on growth. ensure remaining while All

three let in on So these how of an turns this. doing take idea are me to give we each you

shift. secular off, First the

clearly of and drive expect both being we to increase mobility a of our efforts, new made by these dramatic to Now e-commerce products, with and persist despite transactions forward. of opportunity trillions some payments We've and of to low still seen check best in online our this cash going dollars store. time there's in behaviors an in

accounts present is in which When not year. for volumes from card over we April, look our up volume, of XX% XX% at last switched

in to important and our on down digital capabilities increasingly So our drive efforts. is doubling these are expanded online customers offer and we app

example, services, For leveraging by payments digital are merchants Payments and easily. accept securely our Gateway able to

digital every platform now our which benefits to Underlying these ever. of rates, and transactions, purchases safe Simplify enable set course approval it channel makes capabilities, than digital e-commerce today. easy again, and few more for up a options and really within matters which secure our small across Commerce just medium-sized improved And bring days, like businesses us matters tokenization

We tokenize have U.S. from in JD.com such to FC file. on e-commerce new and cards the commitments large the with retailers as China

contactless is out Now late with in of driver the by the in electronic anything as exchanging consumers the is and else. fastest, quick or a safest cash, now stores of to easiest way store, key of way and and payments, to conversion touching for pay cash to especially get announced WHO and a the terminals healthiest without looking as in

seen over worldwide transactions first in XX% contactless quarter. have in We growth the

this enable banks, to are we cards. over. Our conversations new renewed limits are by once beyond helping is the last than to new saying we current indicate of pandemic commitment half continue created the And tappers around accelerate a contactless in increasing being of will are see with they the habits our And recent this globe. issuance It will more consumer use that situation, insights contactless to today. contactless

on to growth Now, the moving pillar.

We to credit, important and globe. deals commercial debit, the prepaid continue win around

Brex just Let commercial me in partnership global you services. new Russia, Sberbank examples, recent our with products an including and including a give with expanded expanded few agreement

processing also We preferred space. Banco commercial and with long-term Brazil make and its our the commercial Inter in issuer partner. And to extended credit prepaid Mastercard relationship Afterpay consumer in agreed has

these a as and its credit purchasing very over of downloading In T&E really significant as announce U.S., us, business well provider in and business will Bank, we've And the pleased be program. cards I'm new the card important small to again, virtual U.S., with Live card loans moving that debit the commercial programs in times. to including Oak won

beyond. and to We've such consumer come a share markets are time to the as Brazil, mentioned. debit globally current us - prepaid and course several environment in Ajay our along that the number markets We in trend that with and India like Continental debit I'd of and Europe. global our leadership this believe increased well will really lead in over our serve in back of leaders

their be which digital capabilities. customers used products to even credentials Further, their when can offer cards we online, enable don't these current that like have issuers have debit,

cooperatives with are have We XX customers examples the than notably, Mastercard with this in million Germany digital enable cards. several to to debit quarter. access banks Most more working card exclusively -

our focus to Let's shift strategy. diversification the

Now, position. our with we expanding in customer continue leadership to base, make and we good moved fintechs, progress where a we've developed early particularly

of examples new prepaid the include co-brand XX expanded with NXX, Sesame Some otherwise the markets sechsundzwanzig Credit recent program known as N wins and a U.S. around around relationship in globe. with

Now, on to diversifying geographies.

local approval in we allow know, domestic the received to have to switching China. up you transactions our application, have partners been will us our We're As JV which to really forward looking all UCC. preliminary set in with pleased our for license

the out next expect over year. process We will this play

us of strategy. takes to pillar our build this Now, the

we've effort has As long build our you will to revenue in and diversified run. inorganic of new to a organic growth, invest be the is only but accelerated combination which made over also This streams. times continue to and means know, particularly a concerted important these valuable revenue, our through not

services. off, First

lines not are are despite well, to linked transaction as the downturn services Our portion significant levels. a up holding

for So to me you. let life bring this

For current our help analytics crisis. example, differentiated our them the assess, insights customers during and react are plan and using to

Now, implemented acquisition through we our learn a industry-specific to years and few ago capabilities address test our have APT needs. unique acquired

cases. levels grocers this real-time and like example many use could on engagements and an more working Here's in promotions be inventory with

in to we to ecosystem With is world. likely even value that significant And working and important NuData, will well which like most address post-COVID-XX are RiskRecon to more and RiskRecon, continue online. help Brighterion, acquired transactions moving through frauds, The shift have are more also and as of for capabilities framework. behaviors we identity our companies us reduce digital beyond the us businesses assist assessments the position recently to to a as are even bring operational and before We're us the Ethoca vulnerability and charge we costs creating cyber healthcare resolution. small it of doing fraud breadth providing by back it and are to occurs. as intelligence prevent organizations issuers payments, This Ethoca allows cyber merchants of even services burden helps

and And real-time payment updates payments, are of couple finally, here our on in particular. new a progress in flows

in address are the and Philippines, that PXX. implementations of progressing out including want cases account-to-account Our are planned, to in like the these with payments. do in recurring real-time payments particularly the rails breadth our point Arabia as I nature to Saudi times the of and Nordics resilient given these, use

In the as are account-to-account in annually, rails. more world. transactions at process double-digits account-to-account billion know, companies countries our - which real-time we you And the in X more U.K. over involved we're rails than around many alone, growing

as delivery social Now, day-to-day the home are Send. in measures more turn you expect, use and would payments pushing like services distancing digital platforms, which person-to-person to Mastercard activities

growth persists. Even aspects in economy weak some volume growth like the of ride-sharing, very see with here. to strong strong continue slowdown We the

cross-border disbursement also our growth momentum in which Abu PXP with in have account-to-account There's late strong seen cases, has of remittances. cross-border live including including BXC assets, We use in Dhabi gone First as flows with Transfast. and flows both, Bank, of across

We information, is protecting Europe players comprehensive work which last while Further in to this front, them exchange all way us Tesco banking market our to for with open that U.K. the will is we a leading expanding longstanding data over and the as the around excited rollout year, we space. we its as in we I'm a of facilitate for believe notable, evolves work a that efforts open services ability to and opportunity relationship be significant very real-time set the given world. solutions the launched landscape see banking, of makes to privacy to in on particularly that our with open banking the and the And continue ecosystem.

of are our all With actively as backdrop, this we managing expenses. a

us in and ability opportunities areas, expansion to we enormous And of our the customer we circumstances We closely. the flexibility warrant, such and interests our adjust long-term how to situation and growth. as model preserved the such At we digital, demand. advanced and support readiness expense manage with as spending invest on have to and quickly market developed, company. customers framework this the the we time, in to important made critical geographic real-time prioritizing the quickly our payments. strategically same are will at services, see a based each adjustments long-term focus looked for best continue line to enables drive our in these factors, As on our adapt as The

detail now over to and our management turn more Sachin. the me expense on let financials For overall, call

Sachin Mehra

Michael. Thanks

and mentioned, this Ajay is Michael As us unprecedented for all. time truly an

the would moment Mastercard. I into to take numbers, the I the Before acknowledge to team a like get at of resiliency here

customers maintained light their business, will In circumstances, start I recently, I today in have that seen have will this We our focus the of our current focus comments and my most supporting the results. and during we period. each walking challenging QX but trends by other partners our through you of on

acquisitions increased excluding a a includes investments. page special the Net both this X on highlights related Total and contributing equity operating impact grew losses items expenses are acquisitions. basis increase revenue So which and of the turning to a ppt company's three, to gains to on X%, here and few approximately growth. ppt X% currency-neutral X with

offset acquisitions, both due $X.XX, X our to $X.XX from income grew to and of includes EPS reduction contribution X% grew to a dilution a $X.XX of income X%, share X% by related acquisitions. recent Operating repurchases. which year-over-year was up net ppt by which include

of we quarter, about worth billion stock. the repurchased During $X.X

the additional page last by metrics pandemic. each growth due quarter with basis can and has partially pandemic offset Worldwide GDV down impacted quarter, currency day from by declines due and impacted credit of the or was ppt approximately leap X%, X%, Let's the starting on where growth grew GDV an favorably a processing the in U.S. the which year, X% see dollar March. and for four, respectively. to was you to was and the debit February of to X operational first volume gross turn local X%

put globally. most by on moment. last the January, place in progressively U.S., growth will are ppt approximately the I X% X% Outside quarter more down decline growth as March travel overall and X in double-digit seeing a from in February volume of growth get driven volume in began XX% restrictions resulted This but Cross-border were volume to into local was through cross-border by trends decreasing was basis. we through quarter. for the on currency a detail regions,

in Turning to XX% growth contactless. home recent then saw trend transaction page March, in declines five, strong ongoing February, approximately the which in globally resulted through adoption as reflecting implemented, the for was stay part quarter. of of the supported growth switched by practices were at We XX%

In and Mastercard Globally, there growth billion addition, are issued. Maestro-branded X%. X.X was card cards

six again, our volume items, revenue was the incentives. of as to described cross-border primarily on increase by transaction strong few volume well offset by noted. growth, revenue turn line partially let's higher The and basis rebates Now, decrease in offerings, for a otherwise and a as net highlights and on in page a services growth unless X% driven currency-neutral

this contributed acquisitions mentioned, to previously X ppt growth. As approximately

revenues grew GDV. driven solutions, growth strength Intelligence the worldwide grew revenue the decreased line from held volume by services, assessments offset grew remaining including the XX%, individual The up contribution is X%, driven is The a up and the line switched mix. X quarter. while at processing which Cross-border ppt in primarily Services acquisitions. difference X our by well X Data XX%, & fees was Domestic Other in decreased by ppt XX%, were Cyber in partially difference by driven Transaction primarily & this transactions mainly fees cross-border X% quickly volume while growth items. X% X%. mix. ppt Looking with

and Finally, rebates deal recent increased as incentives anticipated. XX%, reflecting activity,

impact this as incentives reflecting they activity will incentives over quarter and gross you recent the rebates amortization a deal to XX% revenues, fixed of of see sequentially at smaller look percentage of you a increased gross revenue If the and base. that

versus by expenses Moving a can ago related security, you growth on to X%. non-GAAP of new to initiatives, This currency-neutral continued differential partially X to seven, The investment to the the flows. enablement, our safety basis, X ppt that total page hedging and see period. a offset such strategic year acquisitions, in ppt as and benefit losses gains and a X related includes related in increase increased ppt digital expansion payment remaining operating on geographic

the to worthwhile and to I a circumstances, we capital it from you turning given eight would update standpoint. thought allocation Now on page where be stand

through in business $X strong of strengthened the program first flows temporary share business, strength excess recall, liquidity may priorities impact our strong cash repurchase that to long-term our suspension of flow, expense in raised capital operating And our COVID-XX not our return structure and invest you the a and migrate our we to model capital strong the are operating cash maintain quarter debt equity mix our further time. of more a for of As the sheet, of shareholders allocation have towards discipline, This over capital billion have Despite debt we prudent the balance growth normalized and position. QX. of changed. the and generated our priorities these

tremendous billion inorganic end It strong on cash only us of had obligations, new gives themselves opportunities to maintaining also first to and do, equivalents environment. prudent believe in present is capitalize $XX.X a the flexibility that position we thing liquidity economic may this current the cash, investments. but We given our environment. not that At quarter, meet and to in the organic the

as examining are this. deals at pipeline expect you have a actively, the like we We time would in that

will program it execute done. the we reevaluate share improves as the opportunistically relates on have this and buyback we visibility macroeconomic as will program, to Lastly, as historically

of what discuss Now, turning standpoint. let's operating nine, three page seen weeks to the April through from metrics we've first March and an

have volumes the distancing implemented, phase. recent see The were stabilized were trends. by place you better domestic we detail measures rates indicating of the social put containment that across spending here and in restrictions as additional are decline through signs phase, with We is Essentially, help of declining understand recently restrictions to these hold being travel cross-border have taken in stabilization followed what the March, as various jurisdictions. early you providing

that to have It to measures times even is at distancing point and been implemented different social the out important different globe and countries. around within degrees

not Part developed So, location few much followed Asia of world is moved the phase. every same in the of March, and by in the last weeks. first, balance in the

So let's of measures a in with distancing starting looking at overall you this where varied little the more see have The essentials, or social by on such impacts down either volumes, start clothing, category on switched require bit includes categories, discretionary pharmaceuticals closely, can up the items restaurants, progressively gas. holding are March. spending groceries, impacts mobility This and such well. pretty Spending as on utilities travel, with that are and as significantly. spending, recreation

the XX% card in in other people We spend from those travel has accounts services seen specifically people up as have making Michael shifted, have way Not over about healthcare excluding earlier, purchases surprisingly of now mentioned volume switched in grown. April, XXXX deploy related actually for spend not e-commerce also present XX% has which than COVID-XX. to as been

most their notably the distribution seen also and shift. to stores restaurants omnichannel efforts, merchants accelerate department have in accommodate We

alluded weeks, recent volumes the early of switched that ago indicating levels total, Ajay phase year stabilization approximately In XX% signs at to. down in are versus

perhaps April of part of stimulus, early but across regions, actually have fiscal week all early in due improved to impact still it's numbers days. third The the

the We as last are several days continue the seeing stabilization over well.

signs the forward, expect deferred will Early as begin return hardest include to will health people spending that as on been and spending as social signals personal show needs, of we care. such and Looking hit that distancing of are normalization. some have gas measures relaxed, to sectors work on

sectors, and there such Other where longer normalize domestic is demand, intra-regional areas take pent-up home respond. to as some and expect We earlier. improvement particularly travel will to clothing,

same switched the similar are switched entertainment. transactions by mass are part. in long-haul and are as most in to they For travel for we the spending what instance, Trends volumes, impacted seeing factors

card spending in are trend of will increased limits an that transactions, We increase have the use seeing we present world. this We by contactless supported in the facilitated the continue. around and think part

XX, the to a page you the gray I provide down little XX% on year-over-year, - line, indicating leveling phase. more cross-border be to off, at have total, if to approximately recently. like of appears signs cross-border trends bit now In color Turning the the volume stabilization would seen look again, we little early

However, distancing spend significantly at has the last social were card restrictions line, level. Not travel the card measures you not orange understanding look the to and accounted a is better about numbers, surprisingly, at card to implemented dropped for and half get year. best it if between to think present present Each way of spend as and since a bottomed cross-border split of these cross-border present. about a our minimal

to is left see little deterioration. room very there further So

card line is which On hand, chart down resilient, has the of approximately present, yellow other XX% in the more April. the been not

significant online know declines in travel should this you that includes However, spend. related

actually the the present up online aspect green demonstrating card approximately April, of resiliency in travel, cross-border. is line, at So you looking you spend not this can see XX% of if exclude

dependent availability and the that So in is related normalization turn of of spend on effective is to phase in is in the returning on the consumer improvement of summary, therapeutics vaccines. ultimately relaxation travel an cross-border dependent to and growth restrictions the confidence

XX page to outlook our now going Turning forward. and

at to year this are Consistent throughout for these understand XXXX trends are time. we'll the We to revenues, reconsider you we the net or providing we quarter updates provide given do at the this be to XXXX will periodic also withdrawing we our either approach, not operating view seeing. with better visibility. a forward second time however, current quarter For metrics the have this intend, uncertainties, help and to our performance as we objectives

make your want additional a few you modeling. with to I comments do, to help however,

First, travel in with inter-regional than travel impacted respect to cross-border, more Europe. has significantly been intra-regional

result, intra-Europe yielding up transactions. made are which percentage lower As of transactions, cross-border volume than increased is of an a inter-regional

our our the our This revenue a of transaction benefit portion demand not. cyber solutions. from portion analytics term. from service revenue something we are the longer Overall, some of lines expect to services for Second, our diversify services revenues, over is generate continue linked while data to helps and levels, strong seen we have to significant we company's

the will expect continue services to products. we outperform quarter, In our growth second core

impact the on however, should, some are rates dependence the on Cyber at down transactions, execute which growth & and remain to Intelligence we the come will transaction customer our both switched lower to expect lines. in revenue the sites, measures but sequentially and other services distancing declines social positive of sequentially ability and overall. our projects quarter, You of the These of processing expect to due the to impact second be

accelerate, percentage incentives We revenues sequentially, increase continue transactions are expect restrictions Separately, reflecting and expect a relaxed. as services-related to incentives and to we over mobility gross as rebates deal of revenues switched fixed a activity begin amortization base. would and normalize to of gross to smaller revenue

- Michael are we Now, strategic expenses, turning to strategically carefully expenses can important initiatives. mentioned, invest we in managing to ensure operating as

year low this acquisitions, We basis, currency-neutral decline operating area and single-digit expect up ago. to have QX in ramped at now excluding a our a versus rate a in efforts expenses on

Other mind. items to keep in

year. to a be the expected is and for to ppt the revenue X quarter headwind exchange Foreign

quarter ppt to the expenses exchange and the Foreign in to a for will X closes the about a Nets second the will assuming quarter. extent. third similar operating both ppt to revenue tailwind year, X operating transaction to with be contribute and to expenses X Acquisitions

at investments, issuance are expense equity losses In run a from rates. quarterly we metrics. approximately our million, on income our the recent and and and interest rate given non-GAAP which This line, debt excludes excluded now of gains our $XXX prevailing other be will expense

of for the assume XX% of to respect tax, With XX% Ultimately, get assuming tax to the geographic a as rate mix will through you does approximately should this. we business year, change said, the not Ajay significantly.

stimulus. and seeing are signs the impacts early We of of stabilization fiscal

address and opportunities a period uncertainty significant well position are strong to through navigate We in lie emerge this ahead. of to very the that positioned

to that, I over the Warren. back will with And call turn

Warren Kneeshaw

James, question-and-answer Thanks, now we're for Sachin. ready session. the

Operator

ahead, Go the please. Maurer from [Operator Craig Instructions] Autonomous. line our of first And question comes with

is open. line Your

Craig Maurer

especially everyone well. taking thanks questions Yes, additional is the for for the detail, and hope

at on continued sustainable versus present, do talk two we to And us cross-border is I nice about think understand How non-T&E to exit how much about Thanks. stimulus One, you wanted the to dependent and BXB the efforts? focus is of much you efforts cross-border, not on do think if consumer was You related improvement. related is activity. when saw things. that recent think card know second, could you that, you stimulus hoping that or could spend help how So XXst? April rate a

Ajay Banga

thanks. Great,

which days for our of revenue of speaking United you of the first recall first third are XX% of global they're States, of United a our this had, tough the fair of but that's the few figure next of region. and out amount go was the Sachin And exactly The remember, money across recently. that it's to stimulus, that the and what part in outside of U.S. fiscal part, XX%-plus when while from as remember to and the started trend the outside that's every impact were the continuing only comes week relatively States, trends April week

can that I So think don't clear I if system. don't answer, but you I through assume stimulus a that's fiscal the pouring know only you the could give

Sachin Mehra

is Yeah. just place, the see the measures starting I'll terms look are around put same if add April And as of which - we're Ajay even a saying. there Craig, were the back little few where quickly trends next example, well through, Germany, what the you beyond days of Actually So see social Austria. impact like Right? start Sachin. that coming Australia place was and you week we've seen as that into week. it's restrictions in Poland, in cross-border to in place XX, slight in distancing ending continue just which markets for this globe to Italy, put relaxation bit countries, to in a stabilization taking come various for to

this seeing through. We're come

to well. to to level start are get being people call as and back spend through to their around, move to, that being able back we're out it getting wouldn't really getting I point normal the ways, starting come as of see but so And that

the And to which week not mind. you. of you're in third this. cross-border, there contributing few are cross-border, travel, in On is second are lift That what keep of place is that of present tell I'd you kind your taking factors should which - card excluding around seeing, that April, here kind just question a

the is timing coming the prevalence is at various of having see globally more not important, Easter if through is One merchants an but impact, globe. equally we're across to what omnichannel starting

to to importance of going the they're and online they've hitting, into the that come themselves going starting merchants into online enabled And as with see the realize channels, through. more impact channels. coming and of So they're are crisis more

retail, the level categories where you're come seeing tell subscription some areas general marketplace services, like is clothing, seeing. you're in in Other you, activity spend I would of in in through

So kind that we present metrics as you're with to seeing come there. of the relates kind share are like card - it color in trend of not of those seeing those how to cross-border all That's out. I'd trends you through play

Operator

Deutsche comes question with ahead, Bryan of Go please. next the from Bank. Our line Keane

is line open. Your

Bryan Keane

I thoughts bit volumes in guess, more impact I'm that just yields on little cross-border a And in safe. rebates variability just - stay and then volumes, much some on the impacts contracts or a know and higher and why on is line rebates incentives isn't and are you the there a the reduction incentives bit lower well. - how is the margins. little of of can it us give so Maybe as more and about Thanks there there it the an I and decrease. as secondly with structured surprised is there

Ajay Banga

Sure.

to and fixed. going we component. fixed is is are through. the The that well first come fixed the is about piece is system. So and are on going they there forth variable are rebates component. to the the variable our quarter, based of rebates you're the and on still fixed fixed, and And The remain which - and growing is volumes, in going from reality how see see can in volumes of component you component, moves you're volumes to a is there incentives a were constructed. quarter extent first impact see back be to so incentives, that going there variability Bryan the you're through going to And which be incentives aware variable The So, levels Right? on there.

got of in and various The come which quote new call the other seeing call into, and you've we've deals, that what to as We incentives about I in prior mentioned - mind keep the had you the would deals. on renewed you're you aspect to entered impact that is kind the line through earnings and our impact of of rebates well.

what in kind for what year. of rest we're is. ultimately change volumes Obviously, depending the it of the out keep will really on So that's trend The as to component be there. you mind variable where will what fixed the seeing should

which in got as we've to volume as The around it what question you've cross-border. we're can we second mean, terms tried transparency to you is as provide much relates I trends. of seeing

there the kinds Then think which you of in There yielding. categories cross-border. the different inter-regional nature is about intra-Europe cross-border. will is of thing of lower where cross-border is what generally in keep to mind the - is three I are there cross-border, think in

expect is and two stuff bring And to because to you than break as that would that about normal. sooner about and inter-regional you the intra-Europe then buckets. fact back think up just And think should two that by how there's we up that's short-haul stuff. come buckets definition. kind are even there stabilization into I I'd And of long-haul move inter-regional normalization, only a would The short-haul you inter-regional the from

can don’t between and if to are - the the one locations. other restrictions various do country, you're So more for example, Europe that country and border have transport naturally as you happen ground in you would relaxed and

yield way yielding, think a inter-regional So that's low intra-Europe From about should standpoint, you it. yielding. high the

So as to mix the factor come got you’re modeling. of into in back, starts how terms that to inter-regional you've

Sachin Mehra

you about which ago That case not its is margin, but about if their mix contribution is comment little remember various aspects services margin of cross-border one was One few and margin. has the company remember services, asked years also percentage was you - the were revenue, I margin and to a in margin a know those today. our of smaller company. average our when for lower our

Our a the services different kind into they're they should cost as scale it dominate volume. profitable allows us and at of because those fixed the larger you business, together look them, we that us be for leverage over them very lines all building when put businesses in to

we margins. a on we some good as feel think feel revenue We are diversification. of I So good the where about relatively company, about

said, some inter-regional and until and today up. kind Of it down long-haul to course, be obvious. Sachin fix as intra cross-border will stuff is That's extent, of

to in going keep keep can we're to business so, we growing And our what the meanwhile. doing

Operator

ahead, comes question please. JPMorgan. the next Tien-Tsin from line Our from of Huang Go

Your open. line is

Tien-Tsin Huang

presentation. thoughtful Really

and some your such Just valuations deals set up. in as priorities like the that the activity, or can side your to some clients the you Have we saw pandemic assume of there pandemic sounds front, because question to on or there appetite could contactless changed of here changed that accelerate there see more products? through M&A of embrace Thanks. Bryan's might other as deal your actually And we've - that follow-up people could be before? that that of a line pause incentive weren't we is then somewhat have your it related the opportunity have it,

Sachin Mehra

Tien-Tsin. Thanks,

really incentives, and we is would rebates the as our on our So we're business. running point business run

with to one new of part going course. We're constantly deals. do to We're know of deals. customers. to to imperatives grow You just We're do do going our going share. is We're renew That's market interacting our deals.

rebates which our is of the pipeline is you're through share what play and you and to pipeline, active visibility with that honest pretty will going completely how are incentives to of where thoughts we and and that kind which activity I've you, we and come factor nature be so things to terms best with of around in the a out. see on, going And all of done

Ajay Banga

go pandemic put it M&A conversations the Those at There sure hi. I'm don't come should way. - which because looking - this are Tien-Tsin were It's good valuations as go On There and are that up, that that's jumping of continuing let we along. side, in even things, hit. view are and we thing. a couple will before you me the as just a down. know may developing, us others I and

the conversation. home that to a willingness is more may the capital a be of what access with and company liquidity a and that them distribution, I able to interesting creates ours be better in better that other parties think what's gives to geography for feel like capabilities, here they

that down, comment but be to is is acquirer as valuation the do be valuations deals are balance the you think to right will the time you view And they reason. to I want jump find us all get you you of right I or trying of and really the if bring want interesting, do right done and the the acquirer there the for find value us. for an to kind what

at So we be thoughtful this. powder to dry time a our keeping are like

Michael Miebach

of flows, as open just And here. banking, strategy, us mind areas The focus data changed, cyber, haven't Tien-Tsin, to a of those the still we're Michael new payment in we top described. engage true manner for really so staying analytics, Ajay that are

Operator

MoffettNathanson. of please. Ellis ahead, next the comes with Go line from Lisa Your question

Your open. is line

Lisa Ellis

glad and voices, you, for about this for well. little talk Michael, is related everyone Can maybe bit is is - cross-border or to a and Glad Ajay to cross-border this hear all your travel.

you major have then to borders Thank be you'll like your in in partners, co-brand what et cross-border the issuing like? recovery be under and are with dialogue willing and people in and So what start major governments does which your willing on to planes to back view, reopen conditions place think path also see both you. travel you long-term As be governments, get your cetera, traveling? partners, to look

Sachin Mehra

too. kind up Nice after Lisa. locked a lonely thing here. get voice hear you little We Hi, this of to guys'

you issue the thoughts But picked that some asking over I’ve crux get is So, here's little crystal thing. to time. give that's What - a a ball of you're the let into. me difficult

phase. happening what is, one in that China United think that a than, of say actually a first is The Europe more believe is seems phase is States and I begin with stabilization China more will is that see I in will normalization the you in you

four, that the of there, two, even U.S. know speak, we're governors a that some well. yet to may as you if parts weeks. Although, the up change in how five hearing don't next over predict just I open begin to three, see

being places. rest the let's of There phase journey But through they've normalization stick is long It's China more in the of China the phase. to than in with for that idea us. done, a begun. not Wuhan has Beijing bookings. got their just Shanghai locally is open have begun. and Guangdong and local Trains have and and Planes But Restaurants got travel in bars are still bookings. challenged.

here. think are - a got that's and from data Australia we'll I us. experience of little up, get rest are of now the little we China's New bit So, learning so you And more from the think Zealand opening a beginning countries than ahead that some to curve of

government certain talk is Talking the does to opened about cross-border your of countries they with cross-border travel, connections about being can which about China reopen. what comfortable question to about is up, corridors kind feel of beginning

be which as traffic also talking improving they're at challenged, to since Japan, Taiwan about We're and were Kong well. thinking seems reopening point been to about of a but a Hong Japan and little more obviously time So has Singapore. they

Europe, what longer think you'll corridors get find travel is I within cross-border or you open will situation of in So haul before which going. first

also will time in domestic for systems been to of to take issue planes are had weeks. United carefully for back having previous very come watching the and of while, people the of very the grounded actually more to be they in cleared own last on that’s obviously security their but the the keen having a quite this That or know two bookings. day get TSA couple over States, see stream, some through they than they We through. planes is are There crews and airlines The to reactivated. its need

general at into enough up but don't large yet for probably all will summer, a peak entire know. how that world somewhere this the whether a in we compared My that's over it's who we don't those literally get to I reliable are available shape. is life Now, that crisis, know. saw indicators very therapeutic to I disadvantaged, in with end of back will the quantities prior the that's the view low level across

with work will we have The be direction. curve. the inflection the seen the I work Foundation seems to point of of that availability with bunch in that and point a some Gates kind suspect in So the a therapeutic of others

point. countries in of letting people The people time so. getting quarantining is know, that and them planes without at fact get don't in you you long-haul can I without about a confident think can from actually don't to another their real I vaccine, confident and them that point entry country for get testing on

is there's scientific And next we so year, which sometime earlier, to vaccine reason unless have a probably I me, believe. that good and a don't to find still miracle

stabilization, this medium growth lenses. to to are these preparing expenses we And kind we're running of the We're have we and through our what on phase, us and So here. of I and are our and company normalization you'll view trying doing. very long-term pretty think through the see ourselves confident do what focused that's

and real-time our and competitive well cyber we're confident in about working share security. are our analytics we're digital growing deal about confident and fintechs working payments doing with flow, services debit advantages and We banking open and what and with to and keep

know will cross-border tell So I have faith back. come in lot of we're to up don't to, a you what how but I when

Lisa Ellis

e-commerce there certain cross-border little you heavy unique - or you. or anything and is e-commerce more non-T&E just similar grow is, of least comments similar the composition generally enough. Fair that? like just certain On meaning, that is it a about or non-T&E is or you heavy, of it for retail like that Yes. in up Thank related I of moves aspects are to Thanks a comment ways speaking us. can point Okay. a what media like different box are e-commerce Can does guys. there bit follow my to domestic than black it at that that the a give regions think lot

Sachin Mehra

question. Sure. of cross-border component should is. I'll that that's not think Sure, take mean, portion Lisa. the I I recognize you an what Look, insignificant first

portion component. present the not of meaningful a actually it's pretty card So

Ajay Banga

stay But good. that a from Very percentage very try. to away good good is giving trying We're you try. regarding

Lisa Ellis

Already the doing you all I the little lines, am on math sure can.

Ajay Banga

me from to subscription I that of there's that, which to of that stuff relates you a of. as would stuff, in everything which Let what comprises clothing, kind appliances, in give a whole imagine the category. all color Right? mean, gaming, little sits bunch of bit services, purchases to in you there's

is more your not make in one see sure in to starting of point merchants want online to the are to the previously of point environment I I lot about actually you the So similar who that online sit to that it's out a participating starting categories bring card kind whether present to in are present would to domestic akin and in themselves ready to what were it's We're see actually smaller not get there. very activate in the environment, would through. we The some environment. see come participate

Ajay Banga

never these people and provided who right are as now, delivery life five the - X.X, weeks right online change the last in well. We online cross-border a getting alone. States that's from for grocery true all food do feed in daily in that's United And are the big

Operator

Wolfe from Our Go the Research. next please. of Darrin question Peller line with ahead, comes

Your line is open.

Darrin Peller

It it's seems a been have pronounced longer more doing a or structurally. be which of is I there recent impacts is trends, has term lot more that everyone looking to Look, than Glad even there clear quarter, this going okay. think - investors through. - are impact from which second

as If and much? something coming offset the payments for if some contactless travel help sort the challenges actually of just you think maybe just benefit industry of or and this, your potential you more could opportunities folks be of of guys the is can the more us, netting structurally so, guys seeing And out? of all be which that what list use accelerated it payments potential are of include to it from pronounced not are talk you we being thoughts accelerated can you changed, beneficial near-term, now through - cross-border real-time versus enough up out like structurally things of to the what that may

Ajay Banga

his future. you that, is imagine, of can that's to kind devoting attention As Michael his

So go here he is. ahead. Michael,

Michael Miebach

Ajay. Thanks, Hey, Darrin.

when behaviors is is terms at or consumer changing early. business behaviors, So what of, in say, we little let's look it

commissioning how that. travel but trying basis. when little you out on As research, are there all to of we a to it's cast were earlier back, and to saying, coming is a vote understand engaging obvious, But few already, there e-commerce that they're clear on coming relative least is digital. is the a are things the in pretty and And and a this numbers at push first pretty through

people here, e-sports, consuming are getting let's used and towards they have getting delivery some moving to entertainment, there So so outside before, virtual used people service might digital continue behavior say, via persist. gone we patterns believe to, will are to that while is

our as the versus only cash, that digital at to space, benefit for capabilities, net digital our cash. the that continuous should cyber tailwind. there's from it's that. in electronic we we that existing be related of displacement we expect be increase anything payments, We not it a So displacing do a we that explained solutions, that's in look - it underlying Even

e-commerce even use from going could online clearly away negative the that to other out see it hold towards talking attitude is German Darrin, cash, is cooperative banks the to in that to And cash But that I way trend. start gave earlier, will will in to before. most that Now, I example from the a the on where question cash benefit this coming you was countries, the even out one that is, more help cash. of your be about thing be you contactless you expect than shift what

the last really are quite XX% XX% increase. numbers astounding, significant. to That's The quarter

right rounds now. research We've study States, cash spending want of the spend a just cash us are done of exactly people first less said tell XX% that. The consumer less to United do people actually where that - in

will contactless from. benefit going we anti-cash, to something is be So more all

The closer a Looking our little customers. ecosystem. our into directly

portfolio a change. our - also that complex analytics, into these some we trends more exposure this services it's there of be going our change world the underlying believe is world, to will So from - more data current the of

there. ways that world And and we'll demand and talked then of just analytics more, economy digital in evolve & space. will - is in so our different do expect going of we more points of a XX data more I understanding might Cyber forward, more world data online, going Intelligence, about to only using more drive that what matter Everything

of is we ID actually is our get world perceive We that opportunity. digital on The had is start a of more that the an transacting early digital a question to attention significant of question to forward. who be lot in a of something going and going that

going at have crisis, at As we out that result see active you a we last packages stable getting is saw because governments that multi-rail you payments the of the role and seat couple as about role, talked through the so the going stimuli if an of strongly to a expect that only more from a already over increase What as give critical of we'll is economy we government to governments position that digital, the will that us in the coming and infrastructure see and look dialogue is national forth. will interest more that. taking years

lines those the get granular think I bunch are are research So a obvious, now that we're consumer close, latest on of the more top behaviors, running to staying we're right that.

Ajay Banga

only those everybody and less who the with much the midst world. somehow think than worse is governments become important those around even will with worse for more it's suffering working the thinkers - much economy is time like August. of and to in come if out I a that not are And better it's are Those suffering. who clear thing we the there who Getting this, out. that I'd add you are coincidence suffering had of inclusion this an that a start It's issue others, when

$XXX We've reach announced $X from why to to the we've entrepreneurs demonstrated do of way a over There's a the really even our to that out because is shown in of million in double time $XXX a try economy down We as reason we're as billion commitment this company We've women to their participate more. going years. to to COVID. we to what it do go businesses in small and million XX and it that two the a is ability reached can on million. million next facilitate comes better a thinking can good we time. think XX

Sachin Mehra

Hey, Darrin, one BXB particularly last feel and about, point. One last space. point that the passionate I that's

So now. we've opportunity been years a a BXB number about significant of as for talking

of the more what So think the supply supply global we and only that forth, flexibility impact drive going you to about so when increase. is on is chains expect and towards chains creating digitization

be going accelerating tailwind well. our to there's the participation some believe in flows So in we as - BXB

Operator

question our Bank the comes of ahead, Jason of America. Go Kupferberg line please. with next And from

Your line is open.

Jason Kupferberg

you. from hear to Good

interchange a talk fees. wanted and network Just about to bit little rates

the assume plan think announced you of that that in the not were perhaps the that some rate experiencing table be fees delayed Is this mistaken. to matter from already merchants in network COVID plans help had even or pressure U.S. to until or off just going the I'm should the environment? I amid still year are changes more interchange for interchange the updates either July, if we

Sachin Mehra

changes were be Just have their changes to to clear, talking interchange were different just interchange, about clear. just rates, interchange. would We [indiscernible] not merchants be increasing about to the

of way people as through this with their business models they those real releases struggling were don't merchant, the technology technology that whole bank gone So right and because changes home need linked navigate new their any from any midst or or meet a now up this. out of in bunch the with trying most people reasons for is is through new to the haven't of to who the of working with challenge home they

it to So a postpone not on how we'll depends that's do have goes I environment what that. fixed to and was it. all when how again, no decided yet, through we do idea the bit we'll manage little

Jason Kupferberg

U.S. got just in of Ajay the you've What your wanted of the get And thoughts. then quick to shape terms recovery?

Ajay Banga

But there. quarters, a next phase. a who to help sort - being and to into States of guess, what of the the is United as that out come beings that phase to pattern. that U.S. essentially a all will see to is I and ability certain a just states go they this Lisa you was I begin behavior interconnects like little I being believe social believe resilient bit each who recovery. this the will actually but little quite actually will think with other couple normalization I back I are of want open bit, it up to Back therapeutic Americans that, the stabilization telling believe enormously. do which their are, I kind of believe to lead

you be carefully in of and do shape. this better those the better post We having believe, plans who our lower a of at the recurrence our summer because shape we'll reaction be know probability need therapeutics hospitals it if we'll post the and probability some a to in have and will would signs, prepared level, hopefully kind be summer, better

some the would think comes more and such go. the we'll that you'll happens, have probably then be and by probably I see think end people confidence. around year phase, I what things through see so that And come and time been

a the in you of the we I better vaccine good, year, the front is the next into I of next latter then the think think early will by year. That's going about the way part are see improvement middle and don't news part then this short-term. it. if of And in in

our term a think is medium your this thing your thinking, think is shareholders our about manage do running unbelievable. I this so Michael's clients budgeting, that's And language, on that's and we should I and and employees plan for. your we business prioritizing four point. you to in company, our that are what believe and we at all do we're that expense don't how phases those drive what and how talking and liquidity build

them alternative different a confused. States, the stage how we very confusing same the in to way. that's And four-phased understand in see stay when now, we'll from helps know global thinking. us with you what It talk it's and But on call a to all underlying is one China state and trends. focused and trying focus We we're company of what, we're I part you're Otherwise not this United think go.

Operator

ahead, please. question the And El-Assal from line our Ramsey next Barclays. of from comes Go

Your line open. is

Ramsey El-Assal

on thanks that wanted news normalized, terms more progressing looking ask future to And of domestic maybe state how - and - where and you of the to of kind tactics aside strategy to my get deploy are a that I of taking question are for impact, - market. COVID and there into question. that going ability Have sort your to of generating you're you your the in need your crystallized partnerships of China things things in to that and Putting are you're paper sort need can in your revenue kind you on comment infrastructure kind to kind even generate the of to begin terms market? are in revenue of pen put market? a closer to

Ajay Banga

we've of -- revenue though first generating Well, even the already a and in got that's all, business great China today

Ramsey El-Assal

absolutely, meant, meant I yeah. Yeah. - I domestic.

Ajay Banga

yeah. Domestic,

Okay.

current where business, in So doing cards the we're is which largest by because and It's over the world's new the transit the there of few Metro, with way, card up the new passenger we're system per rebuilt otherwise a share, the traffic Metro. Shanghai bunch by that's is deal outperforming we the we've with people, something - on done China a actually in oriented days. even growth, programs with the first third software more little volume last

I Now, pay not bank lot travelers fare able enables their just the which China. the in enabling using be with QR but doing, of third work in to in be gates a year, will us quarter be, activity payments kind a we're to of going at this Shanghai there to hope into will Shanghai, of millions Metro that embedded international actually the we're tens ecosystem Mastercard codes issuance, of app. the That's

The post domestic of year getting are one, principal the application in we process deep in the license approval. this

progressing we evaluation of through will the infrastructure the at of kinds the technology course and go of all year, that national work is pace. ground, including the Over security the things of

its will - it It's that’s cutting you to That's add more because and There on work is back like time, it are have our through. still year on We we a away some and will we’re its that. that. running I nothing new, with that hit medium not that tell way long-term probably Michael to on take and take - time future that. can not keeping

Michael Miebach

for from up driving Currently is our our good in market our of into the time cross importantly, the existing PBOC the approval acceptance. border on why actively ensuring that to thing partnerships team we Ramsey acceptance with we using there most get live. and is technology go be and as footprint Yes is NUCC our as can conversations it extending that do partner the with we’re out once partners obviously domestic one very this development the

really that's focus. So the

Ramsey El-Assal

That's their acceptance you I could be didn't know selling super in helpful. actually side.

to for taking that's good So the know. Thanks questions.

Ajay Banga

doing nature acceptance that's we're can or cross-border out be, what’s it been was that by going certain demand exactly Mastercard it into where by if it become real of the remember what principally in the certain China getting which domestically payment because meant driven you're the No, kinds on. system it, in should of as That’s markets, beast a so there well. focused it to on used for be verticals

Operator

line of question next And the from please. our comes with Rawat Harshita ahead Go Bernstein.

Your line is open.

Harshita Rawat

faster. very tourism all and on and could curious you’re you. at also travel exposure further terms bit provide some versus doing, being your just research, just are cetera weak area et with what still the please little color a zoom on what So the on a tourism based Thank your customers on in we scenarios, can are very looking long-term recovering of travel you of in be saying, here travel different corporate corporate of

Ajay Banga

points get here. you two Well, of kinds

here of that one we was travel and I a corporate in at to and says a people in bounce personal time to actually will will point will referring So intra-region basis back earlier. long get travel those least to corridors, view take begin

when a And need prior don't of business Even right degree supply a chains, that business few point to of never again. recommence. of analytics well interacting travel the X/XX do to so How serve travel corporate days shutdown long. rebuild actually because prior start you was now you other impact analytics rebuild had will view is will this of type. of And do a connectivity, have you how

even came it then recession. back, And the financial

the financial of So this digits a down XXXX, have is demand didn't mean we in shut through in kind I the the single recession went down down, world oil XX% XXXX in went in right.

Not I’m frankly talking times back scenarios. slower. an very happen a of an and time. travel travel lost little give from I quickly this know back came prior sure, sort times, to different we’re view came analytic So very will personal what prior corporate don't you yet. a

Operator

comes from from the ahead Our next question Sanjay of line Sakhrani KBW. Go please.

Your line is open.

Sanjay Sakhrani

you about are when guys better and you and things upfront think second containment clarification, I'll saving we hear you if of I trying get follow-up question or Thank efforts how the just I ask one and I'm we to guys, get cost the just are question think things progression nice now. about the where then that cost think a to doing well. guess have worse exactly second about of opportunities or should scope

year a in multiple relationship out you. Thank that more the comes there Is that this rebates. years? are affecting or over terms that wins contribution In revenue spread is of

Sachin Mehra

will second get on question expense. Yes, the then start actually take, I I the will and Sanjay. we'll to with first

renewing got to building the it relationships, So on about and which are Look, with. customers. your question or relationships existing of the in new you've either which we're things around context think

expanded already that through we’re on come flipping you’re basis starting of the of than or relationships you seeing to novo nature portfolios that and of see where revenue in deals, You you revenues, of see the come will or the the extent a through something sooner program a see that probably the you're will start to de new that revenue would sort.

So I think a mixed bag. it's a little bit of

come the expecting deals the the basis. being see pattern trend you the So forward we pretty what is a when way see historically than renewals, we're through. don't that I that new we've signed by past, going or on kind done whether that any of much deals different on what in

relates As expenses. operating to it

areas a Let expense on operating know little bit about focused I an sight on. line as me Michael from you we're a to what's the just of will share give more various going standpoint,

to it earlier our decline that specifically low to from range we’re we quarter. comments expenses and a looking take relates numbers, sharing ramp-up obviously a that's the thoughts first single around First, quarter, our on where the how my as the in see second the digits in in operating were we’re in can you based

following. the you about would you expenses I tell longer-term, the is should way think

don't on process. have line we’re do we're expense going long-term is We and growth thing, the prudence base, we the nimble remain want do to how to the flexibility prudent that going what economic in that from to prospects this of jeopardize do depending our company, smart part out environment appropriate, exercise the as an across various are is will as we expense standpoint of playing the will items thing,

Michael Miebach

Sanjay. called customer a pretty not and Yes, guiding investments, the one demand. I factors to out want also that you market answer, only it readiness just growth strategic and comprehensive thing then say That in long-term the two are was the earlier, but

do market right going So we would ready not what be addressing with now it. COVID-XX because not should with something they that the about is busy everybody's out and

and improving we’re other Right we now market for when our the cyber. improving, to and there back bring demand of that on investments a is what them like huge tie we’re that, as further So demand is couple can and needed broader and be initiatives keeping customer to done thing. basically see deferring

right sensible in is we but can to thing can not double do the like So down now. travel promotions just a to there, continue imagine is space what you

keeping demand, the stuff that's mind the the that and market think So you customer of how categories gave and kind then readiness strong, we it, in about long-term earlier.

Warren Kneeshaw

right. All

got time. we've the think to end allotted I of

final any So Ajay, comments.

Ajay Banga

to up longer than created capitalize mistaking signs of kept know and a beginning early the us successfully you stabilization. we that growth. all get to normalization you little that's opportunities not back Thank on your going thoughts. and for with questions this we’re believe environment. ultimately navigate a and to But we you can see to that tough I I’m model to has as business come diversified but COVID-XX will few to wrap allow a We our closing usual,

our We’re managing carefully expenses.

we us enable So on our company build to will and strategy. differentiate our that in deliver the continue grow, diversify, invest area and

should enable like Intelligence diversify in So services, products in for that so doing our Cyber our and or analytics, us customers enables the value like e-commerce. things & real and to see we revenue that share, solutions base, you digital drive data gateway to market us win debit they think our digital

ideas like most On digital some address help our to importantly banking for new and been rails an account-to-account while investing in including that payment us areas payment in which flows real-time and capabilities, open we’ve a identity.

ball, see over back services And partnering that of you to be payments don't will do governments could real-time examples analytics. and electronic we open I in deeper focus with about Cross-border this phases will but couldn’t of trend come shift clear importantly, I open that a world out, but where I time. and There value, cyber secular will where activity accelerate. have stand the digital think questions answer crystal will certain will we be go, see the more a some your could will the will on bring and and security very areas data to security sector increasingly identity view cyber payments private be in of are partnership.

said they while as a are I little come in prepared capitalize invested focused well heavily before no to way. doubt we have will as on these, that, and on Michael our and We’re these Sachin and these opportunities we back did be we

So we thank a you somebody well. be you get company, in and of past looking for while Thank us shake the much. for being this. people able hands support be very once joining once actually to hug I'm to and your forward safe, see give Thank continued a you today.

Sachin Mehra

everyone. Thanks

Michael Miebach

Thank you. Bye-bye.

Operator

today's concludes conference This call.

disconnect. You now may

Mastercard (MA) 29 Apr 202020 Q1 Earnings call transcript