Q3 2024 American Express Co Earnings Call Transcript
Key Points
- American Express Co (AXP) reported a strong Q3 with earnings per share of $3.49 and revenues of $16.6 billion, marking the 10th consecutive quarter of record revenues.
- The company raised its full-year EPS guidance to between $13.75 and $14.05, reflecting confidence in its earnings power.
- American Express Co (AXP) has successfully refreshed 40 products globally this year, adding value through new benefits and services.
- The US Consumer Gold Card has seen a 30% higher acquisition rate than the Platinum Card, particularly popular among Millennials and Gen-Z consumers.
- International card services showed strong performance with spend growth of 13%, with markets like Japan and Mexico growing at 17% and 15% respectively.
- Bill business growth was stable but modest at 6% on an FX-adjusted basis, indicating a need for acceleration to meet long-term revenue growth aspirations.
- Organic spending among existing customers, particularly in the small business segment, has been less robust, impacting overall spend per member.
- The company faces a competitive environment in the dining space, despite investments in platforms like Resy and Tock.
- Variable customer engagement expenses grew by 10%, outpacing spend growth, which could impact margins if not managed carefully.
- The company anticipates modest upward pressure on delinquency and write-off rates as it continues to acquire new customers and increase lending.
Ladies and gentlemen, thank you for standing by. Welcome to the American Express Q3 2024 earnings call. (Operator Instructions) As a reminder, today's call is being recorded.
I'd now like to turn the conference over to our host, Head of Investor Relations, Mr. Kartik Ramachandran. Thank you. Please go ahead.
Thank you, Donna, and thank you all for joining today's call. As a reminder, before we begin, today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and in our reports on file with the SEC.
The discussion today also contains non-GAAP financial measures. The comparable GAAP financial measures are included in this quarter's earnings materials, as well as the earnings
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