Mastercard's (MA) financial performance in Q4 2024 demonstrated robust growth across key metrics. Net revenue for the year ended December 31, 2024, reached $28.2 billion, reflecting a 12% increase compared to 2023. This growth was driven by both the Payment Network segment, which contributed $17.3 billion, and Value-Added Services and Solutions, which generated $10.8 billion. The latter saw a significant year-over-year increase, highlighting Mastercard's diversification efforts.

Net income for 2024 was $12.9 billion, a 15% increase from the prior year, while diluted earnings per share (EPS) rose by 17% to $13.89. These results underscore Mastercard's ability to translate revenue growth into profitability effectively.

Operating income for 2024 was $15.6 billion, up from $14.0 billion in 2023, reflecting a strong operating margin. Total operating expenses increased to $12.6 billion, driven by higher general and administrative costs and a rise in litigation provisions.

Cash flow from operations was a standout metric, reaching $14.8 billion, a $2.8 billion increase from 2023. This improvement was attributed to higher net income, increased billing collections, and reduced cash outflows for litigation settlements.

Mastercard's investing activities saw a net cash outflow of $3.4 billion, primarily due to acquisitions. This represents a significant increase compared to the $1.4 billion outflow in 2023, reflecting the company's strategic investments to bolster its business capabilities.

In terms of financing activities, Mastercard used $10.8 billion, up from $9.5 billion in 2023. This increase was driven by higher share repurchases and dividend payments, underscoring the company's commitment to returning capital to shareholders.

Mastercard's gross dollar volume (GDV) grew by 11% on a local currency basis, reaching $9.8 trillion. Cross-border volume growth was particularly strong at 18%, reflecting increased global travel and commerce.

The company repurchased 6.5 million shares in Q4 2024 for $3.4 billion, at an average price of $518.22 per share. This is part of a broader capital return strategy, which included $13.4 billion in total capital returned to shareholders during the year.

Mastercard's liquidity position remains strong, with $8.8 billion in cash, cash equivalents, and investments as of December 31, 2024. The company also has an unused line of credit of $8 billion, providing ample financial flexibility.

The company's effective income tax rate decreased to 15.6% in 2024 from 17.9% in 2023, primarily due to a favorable geographic mix of earnings and a tax incentive grant from the Singapore Ministry of Finance, which reduced the rate by approximately 4%.