Visa Inc. (NYSE:V) Q3 2019 Earnings Conference Call Transcript
Jul 23, 2019 • 05:00 pm ET
Welcome to Visa's Fiscal Third Quarter 2019 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to your host, Mr. Mike Milotich, Senior Vice President of Investor Relations. Mr. Milotich, you may now begin.
Thank you, Jordan. Good afternoon everyone. And welcome to Visa's fiscal third quarter 2019 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. The 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 and 10-Q, which you can find on the SEC's website in the Investor Relations section of our website. For historical non-GAAP financial information disclosed in this call, the related GAAP measures and the reconciliation are available in today's earnings release.
Now let me turn the call over to Al.
Alfred F. Kelly
Mike, thank you. And good afternoon everyone and thank you for joining us. It is clear from our strong results today that the business continues to perform well, as we simultaneously invest to deliver growth in the medium to long term. Given that it was a busy quarter, I'm going to streamline my comments on the business performance and only offer a few headlines. Then I'll discuss how we are enhancing our capabilities through our recent acquisitions and investments. And finally, I'll review our progress in building partnerships around the globe with FinTechs as well as our traditional clients.
So let's start with our third quarter results. Revenue growth was better than expected at 11% or 13% on a constant dollar basis. Payments volume growth was 9% on a constant dollar basis or almost 10% excluding China, which continue to be impacted by some run-offs of our dual branded cards that captured domestic volumes, and have limited impact on our revenue. Cross-border growth rebounded up 3 points from last quarter, and client incentives were lower than anticipated. Processed transaction growth accelerated to 12%, adjusted expense growth was 10% reflecting marketing investments, the impact of the new revenue accounting standard and a number of non-recurring items. And adjusted EPS growth was 14% lapping a low adjusted tax rate of 18% last year. Vasant will share more details in his remarks.
As we look ahead to the future, we're pursuing our strategy by A, investing in growing and enhancing our network, including capturing new payment flows, building out our acceptance footprint and expanding our base of clients. We're building our arsenal of value-added capabilities that could be components on our network or on other networks, what we call network