GPN - Earnings call transcript Q1 2019

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Global Payments 2019 First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will open the lines for your questions and answers. [Operator Instructions] And as a reminder, today's conference will be recorded. would Vice turn Smith. President, I to conference time, host, your Investor this like the to over At Relations, Winnie go ahead. Please

Winnie Smith

Conference Good First to welcome Call. XXXX morning, Global and Quarter Payments'

by remind Before begin, some comments conference are statements I'd contain to subject and management we in you to our today's during risks like of that the forward-looking which call made uncertainties discussed materially. These We recent risks our you statements. SEC most XX-K results and to subsequent these actual filings, place differ uncertainties and to filing. caution could not on undue cause including any reliance

this only call, to Forward-looking call statements of no them. date update of this during we obligation undertake speak as the and

to share, our ongoing Some are operating fees, as measures of adjusted such revenue, which more and reflective plus of refer adjusted earnings adjusted we network the margin comments believe per non-GAAP adjusted made performance. net net revenue

a of For comparable our other trended financial our exhibit and Relations to see most measures filed the both of this at the please as regulations, an our to www.globalpaymentsinc.com. in SEC morning and full available area Form which financial in reconciliation website X-K are with furnished Investor of release press measure our non-GAAP GAAP these highlights, accordance

me Senior Joining and call and Sloan, CFO. Cameron Jeff Executive CEO; the on are Bready, President Vice

over Jeff. Now, I'll the turn to call

Jeff Sloan

region grew growth share each differentiated basis points demonstrating are XXX our We in earnings of expanded our quarter the business double-digit delighted adjusted adjusted per to of have nature XXXX, of the organic by We another results, further first delivered and XX%. outstanding margins yet model. quarter generated in

in payments and investments results distinctive is defensible. solutions technology, we consistent to generating have by enabled in our industry-leading the success and are ensure multiyear distribution made Our

of confidence mix to strategy, moat have omnichannel forefront partnered with ecosystem faster-growth geographies. of us remain And and our earned, across the of a to and built competitive and our we a market-leading markets elements our core exposure at balanced ability sustain that the and innovation. e-commerce are gives a in growth across We scale software, solutions

business accelerated OpenEdge. our we Growth Let's with quarters OpenEdge years. several produced our the partnered software quarter start in led and in one of best first by top-line at

call, number ISV XXXX on with with XXXX, momentum a already highlighted ChiroTouch. in newest our of is signed chiropractic We're a with Technologies OpenEdge XXX new helping our record which partners offices relationship partners solid have fourth partnership our we quarter through municipalities in XXXX. and in off to our approximately closed with start As Tyler through drive

with both strong We ASI legacy also our and quarter. and our launch the all continue growth channel we and versus integrations extend this is in to our is realize Technologies, as lead Gather and our with equal Not will in completed integrated proof competition. results partners created this

achieved assets, or interfaces added As and for AdvancedMD, streamlined in to patients trend easier simplify to substantially payments have for referrals balances. from bookings increasingly we results good in ACTIVEs year-to-date. point and very new quarter. partners in Ironman make while growth bookings OpenEdge of at AMD it and for OpenEdge experience, quarter user has its making we're the service outstanding increased and the to generated co-pays across enhanced we software remained robust the and also relationship our with the first our community AMD, quarter. portfolio owned large two the favorable

the by Payroll its Heartland AMD of as deepening practice part solution. its now Additionally, offering module is relationships bundled

months just cross-sell to our acquisition. highlights Our few teams sales short the among since a ability alignment enhanced effectively the in

believe And in addressable have strategies, our United we We capabilities are of market extending the distribution our AMD's note the and progress enhancing operating is We by stack. to technology, of value our and beginning our leveraging regulatory solutions span made States. their compliance consistent one AMD full scale largest distinctive businesses. practices vertical that the growth our to at solutions environments that on accelerate core in payments to with and markets take Edge best the

acquiring owning strategy participants to first survey trend vertical-specific industry that concluded the For share, that, payments preferred toward companies was was example, increasing a software enhance second sell-side and ownership over recent time. of that market

distribution. the into we highlighted segment success And in segments value Payments leading, in in payments fact, In all It same entire as sizable, which across to stack the and software three. diversity owning own any restaurants, software of defensible education verticals of solutions healthcare strategy and leading is to as of solutions and all type integrations. truck in we Key survey is the for of one capabilities of and restaurant the ecosystem our a and markets. the And Global Each the critical model. taco provides largest the Taco for we the our conclusions regarding of one survey's that believe market. market restaurant, of is the which results example, are is Take, our from scope, superiority of example scalable gateway restaurant is worldwide solutions quintessential foodservice cloud-based vertical, reinforce that serves customizable our That the for the our our and extensive payment target. and portfolio. size products of a Bell. today,

than best-in-class, to Android spending caterer. principally cloud solutions our looking operating solutions in both To of payments Built and size marketing the time, customers and gauge iOS worth We full food that running of hours. it, basis. support easy on interface the with market self-select provide up to to friction XX is describing Global zero based the less platform aspect for lending, the and is customer. truck this in market. scope for growing and the be differentiation, available the Payments offerings are types mobile-based entry extensive this for menu Further, that and some These a of competitive States other position As with SaaS of is, how which software invoicing, reporting. most Heartland of time payment small-merchant unique services. point-of-sale the Mobile. deliver every today. those Mobile in a their through merchants check among our it or increasingly card With and food the manage for Starting same one with at the can need market by Heartland systems, businesses on-boarding, simple use United all analytics, email high-touch we can provide the on segmented, and increasingly intuitive and as is truck end is At in single a Canada operator solutions and and small we of

single-location bakeries or restaurant Register in shops, our basic released the and straightforward recently up Register establishments. newest The the entry counter-service We vertical checkout. size. Moving to solution is fast with feature-rich point-of-sale Heartland coffee order

the addition is few. of receipt, like products application we an In and of name The to business are the and solutions this unique high-tech winning. cutting-edge cash level instant includes introducing and printer a are marketing, requirements precisely drawer, extensive suite why functionality at breadth to analytics, we a capital email functional like market deposit, and of

Heartland self-select the of offer distribution in this merchants professionals. Register segment unrivaled our United of our States, online purchase for broadly breadth will support both XX/X, be the this Our is size available sales and for in through we at the Heartland as customers market. is XXX

mobile complex multiple ordering, XXX,XXX This Heartland establishments includes remote kiosk XXX online management, Restaurant table more highly via up at to and with the solution. restaurant software to management deliver our kitchen sophisticated and customized, pay functionality locations, fluent across cloud-based we with unattended For vertically locations.

Payments. customers other allows a sold channel, payroll, in software Heartland competitive email our professionals This applications, scheduling, at the product for many this This and the make our solution over of Global as with Restaurant products, lending assets Also legacy currently has more delivered XXX and technologies our simply with with process. key like the competitors open advantages our dealer analytics, of and our employee disruptive network same coupled over sales cannot XXX marketing Additionally, competitors delivery are new into lack point integrations through dealers. long-standing and cloud-based to is management well our comprehensive sale. distribution architecture breadth as features seamlessly suite Other leading SaaS services, of accounting software depth industry-leading partners tap on match. platform. inventory Heartland

our service provides SaaS or service complete enterprise restaurants and a solution quick end-to-end at management combined platform companies food globally. level, Xenial, SICOM Finally, QSRs for the

Specifically, boards, menu in digital the and front kiosks dynamic systems, of software ordering. capabilities house, include point-of-sale mobile our

as For provide data payroll finally, the offering well we And and scheduling multi-location customer management middle of house, kitchen, and solutions. procurement. house drive-through our as analytics, engagement, loyalty of inventory includes back

a rich products have pipeline We in queue. our of new

intelligence enhance to we AI represents experience, sales at example, drive-through or currently of are which testing the For generally QSRs. artificial two-thirds help

by preferences there from offering menu recommendations our customized voice we offer leading recognition mobile generated the QSR be Specifically, of case, customers, for further demand AI. to the indicated one past able We data derived accelerate believe we as such with future are opportunities technologies is growth. boards, drive-through to the exterior, At utilizing order use interfaces. digital customers, pie with expand menu us our constructing leading and to significant to and expect just

provider or most restaurant Our providers in to comprehensive and competitors industry, only. limited primarily as solution front-of-house franchises onpremise of ability or complex a typically payments serve the offering as for at vertical solutions in our unique the the is providing some scope, are needs the in cloud-based legacy software point-of-sale

include the ranks XX we Hortons brands today, QSR Wendy's. and Company of We Burger customers of are and Magazine top Taco keep including, rank of our King, list Bell, Tim XX proud

solution we already successfully customers. cross-sell engagement customer SICOM, and SICOM to to combine a to able Xenial Xenial large two As been enterprise continue have we

in large of Sodexo partnership its in worldwide forward we serve tuned. foodservice of technologies, foodservice and Xenial worldwide has footprint, is of mobile that Chef, position locations new house, well scope notable a we XXX,XXX We with business last we Compass our including into customer the providers solutions Asia. industry, the adding management corporate of established a pleased deployed entered four also as countries Americas, differentiate competitive globally, with $X.X It system. XX SICOM Xenial of across the are Europe in both discussions With kiosks and the and services deploying billion five we Sicom acquisition. are our to their TAM geographies. customers, corporate the are Stay an with solution additional middle excited point-of-sale our food Additionally, also both our our management further won largest kitchen two QSR in with about currently that ordering, the with expand the geographies. multiple the our and across RFPs. new as partners, to and to look We're to

our across but our the vertical solutions leading entire faster-growth not markets, bring restaurant payments international leveraging to in are additional partnerships reach software-driven our to technology and We portfolio. only

expanding into that by Austria on geographic to We into our to this capitalize that are are pleased announce its our home capabilities areas. we distribution seek To and country new we Erste footprint further technologies, also month. of with leading unmatched expanding later partnership end,

global and our in from Central We our Europe we secular resilient strong partnership the of markets, legacy business made over a substantial of business. software matters. and is favorable defensible as with and trends and technology scaled in venture at growth value this scale we how partnerships joint for partnerships in such differentiated, durability market, relationships distinctive, combination and our Mexico our that the omni-channel businesses, our where and into creating half proposition decade, our our is innovative investments last expect peers. offerings, drive our different scale in existing globally have Expansion new model Austria, to just e-commerce and once have Across highlights distinctive soon-to-come

trust year, Over the and vertical markets global now including past this competition of sense in and Cameron. the trajectory we differentiated every restaurant strategies ongoing in call businesses, very and quarter why go-to-market category winning our past the With use and our for of I'll XXXX are integrated indicators to that, October our firm segmentation, first we our reviews XXXX, best the markets. and where day pleased over March foodservice market are We management of future detailed of e-commerce globally. by a have for and provided provide and both our largest strategy. turn our omni-channel confidence of these our which We're with growth,

Cameron Bready

Thanks, Jeff, and good morning, everyone.

our XX% exceptional earnings revenue adjusted geographies. on start first network as was earnings an quarter quarter prior-year delivered network adjusted $XXX currency a Canadian margin of On fees again XXX an first representing nearly net XX% weakness share $X.XXX the and more financial period. marked This results billion, XX%. and basis operating over included North the to in revenue Adjusted XX% grew adjusted performance than XXXX $X.XX, plus In across headwind businesses XXX increase currency year approximately basis, expanded America from we from point strong the segment. plus growth constant XX.X%. the approximately fees reflecting per Consolidated our net per growth of a million, the was to was XX%, points for basis share constant Adjusted Our dollar. a or basis.

results organic and American were U.S. delivered growth, our led in by vertical which markets once strength double-digit normalized businesses. low distribution North Our integrated business, our direct driven again by

high We high-teens, continue single-digit consistent relationship quarter channel our wholesale channel to expectations. see in in US growth our the with declined led our while

acquisitions, approximately million $XX quarter. in recent and contributed AdvancedMD SICOM, Our the

was North basis which expected, a offset than in basis. which organic expanded more Including Our local Margin Canadian this in from business grew America offset low points improvement by Canadian in digits and reported headwinds acquisitions, pressure our declined trends weakness on Canadian solid XX.X%. the dollar. execution, was of headwind, currency, than operating impact results our in more Adjusted as by the low the and margin strong businesses from the single driven dollar. to XXX Canadian recent digits modest technology-enabled single

on plus Turning increased quarter for XX% net first network the a adjusted X% to or million reported to Europe, basis. $XXX constant revenues currency fees approximately

and As impacted Local headwind basis from we mid-teens, XXX market businesses which win in gain solutions operating to XXXX, from was basis investments, this elements execution and our terrific up as new compared our Commerce by of with by currency strong delivered by the Spain Unified quarter, foreign points trends offset partially Central adjusted e-commerce was European our margin respectively, approximately the local as our in mid- XX% in Europe, an the as business point foreign saw growth continued offerings, launched share Europe differentiated conversion. backdrop the in Likewise, as partners. the currency led quarter. that currency was growth our in which grew for as anticipated, Platform of benefited the well we a region XX and organic benefit and high-teens macro against reflecting from organic in of strength favorable region, omnichannel continue strong including headwinds. relatively with growth we currency growth timing

to XX% the currency to Moving double-digit as region a addition reported XXX-basis expected, constant Pacific point $XX organic grew net plus over currency X% adjusted Asia currency was million or revenue approximately and Again, low from our local business, network conversion. in of the on foreign fees partially basis. a growth our central offset by headwind

an the from benefited Our Hong in execution, and key pressure XXX continued local driven strong Asia currency continued trends operating expanded robust quarter. across margin growth Australia, by Adjusted points, outstanding growth our Kong, organic reinvestment despite Taiwan, from the impressive and currency basis in and in India markets, including business.

remained As below within our the leverage quarter, the of X.X range. targeted our comfortably of end times,

returned approximately share. an X.X near-term per to capital and the approximately share to More program. we shares capital and allocation of to return the approximately shareholders average specifically, expenditures possible. strategy, repurchase our the in business, stated absence we we $XXX opportunities $XXX million digital shareholders in through in our Consistent look During invest most of grow million manner at repurchased efficient the invested million with quarter, the price $XX to capital

business, good program share the in investment we value repurchase creating we the been has a are very Given believe well. our as

or fees result $X.XX in plus net As to to outlook raising revenues first range performance we expected constant-currency expand XX% to now our of margin a on XX XX% for from of our by to basis. XX% billion $X.XX points. XXXX. expect basis over We a now operating growth the are quarter, strong to billion, adjusted is up XX% network Adjusted XXXX to reflecting

in earnings now of $X.XX Lastly, adjusted and revenue expectations relative adjusted plus to include what half network worth of per share point of XXXX. net we is growth for increasing forecasting of XX% reflecting foreign earnings currency we initial to adjusted were XX% to time fees to outlook our that at guide noting headwinds are over incremental February. a our our per $X.XX, a nearly the range It XXXX share also

and ahead call model, as opportunities Jeff. to back we to the momentum excited sustain reflects in enabled results turn strength I'll our outlook our as more updated confidence about build resiliency be as the strategy. our the underlying competitive our Our upon the to our not well advantages shareholders. business and ability value continue We of by industry-leading drive that, deliver long-term to our over With for could

Jeff Sloan

our as an toward validates the continues plus industry and to at industry, business decade We competitive our the further pivot of the Cameron. have the our us business. we technology. consolidation model wisdom half leading playing in Technology accelerating believe to positioned Thanks, last widen. targeted Recent over investments our transform of a ever-changing in that role our moat are continues forefront industry

concentrate merchant see to leadership of cloud-based results, the see through the it be and not We place computing colleagues operating of the While it's our exhibits. digitization ongoing better validation, think gratifying receive worlds that the confidence is heartening of most and business momentum financial and of positioned. could the and a success ascension ongoing intersection the to that payments on third-party our our and We morale virtual of in that customers. our among SaaS physical to

industry-leading Winnie? We expand us and the of to well decade. are the performance share excited into ahead sustain about significant our next opportunities

Winnie Smith

Thank everyone will limit to in to begin queue. one session, go questions. our question to everyone your to I'd we the we to now follow-up question-and-answer like accommodate ask Operator, Before you. one with

Operator

line the with from you, Thank George question Cowen. ma'am. our first And of instructions] will come [Operator Mihalos

open. now is line Your

George Mihalos

things considerably. that our margin I Hi, up That points. basis congrats the starting quarter. includes maybe off, year strong side another guess, good outperformed on guys, very pressure. expectations on you're the kick and FX To morning, XXX because

an guiding extraordinarily then in spend? You're the Should the also assume of Anything And full be I were to some the call to kind year. bps we there'll for strong, discretionary strongest XX APAC in there? ever. that increase out margins think

Cameron Bready

and Cameron. ask start he Yes, color I'll Jeff George. in like It's add. he'd chime to additional to if any has

as continue product, in growth. America A topline that the way The are here new obviously the into to vertical guiding obviously to business. full ongoing where we in back investment we're year. the drive it feature reflects solutions and right for relates things to be few specific software You're market going North functionality invest to guide around businesses in our software new the

So, the Central a we market me, get that years, about partner, have Europe, with the Asia of the associated tail. back in obviously with the our is what that to partner running to strong we're talked same really plan three as -- the up we seeing is proposition enter our over forward. about increased of couple year. our that going thing with investment Asia, respect a fair in with into same investment Austria. European our new to fairly And growth the healthy think and highlighted amount last Bank. excuse script, I we're entering of a for much amount In opportunity business we lastly, about obviously, and provides potential excited we've There's Erste then talked the new quarters theme which for of We're

the fairly business that. diversified in markets. margin first the course obviously in more in to nicely planned overall China an Greater result but margins years, past no the that very quarter, expand to have for we not away was made full of same again further first meaningfully exception expand three year in saw Asia, investment -- region, do able As the the our quarter period. quarters investments expansion We've will in in level we the first that over an the We Asia in margins expect few in we and at Asia to back we've year that from been

George Mihalos

helpful. very that's Okay,

Cameron Bready

points obviously result points. margin our from up a XX for our Just prior full to to basis as quarter question for first outlook as to year we updated the on basis of up that XX expansion strength, the --

George Mihalos

you the restaurant a about lot vertical Jeff, of there. time talking your spent positioning and

or the at merchant end different sort if of average sort that think as updated a thoughts XXX,XXX the via of the of changed so. just a owning of And market? over any volume few partners materially restaurant I doing going market direct segment you Heartland going high Has segmentation about around low and call the the end, sort bit -- software for time acquisition, last of years? maybe the at approach, of was, or and specific the it, the of

Jeff Sloan

a great question. That's George. Thanks, Yes.

questions So, well we the on detail lot provide our take your as here. prepared segmentation with the as restaurant tables I'll slides. a of remarks strategy online series in in

not see -- But answer the as the does different First, The restaurant It's of SICOM. we Heartland of slide Heartland is the, size same core to addition the matter? online. size call that no. is, it what the still you'll on is first relates what course,

service with enterprise higher So than is in and SICOM a QSR not vertical. management at we the primarily XXX,XXX. the food average has partnership that surprisingly announced October That the

As X-plus surprising in business time bigger every ago in from merger. in Burger United than the America, that that's prepared legacy the little years at remarks, Heartland I Tim the every our a mentioned States, of not Hortons North King

I'd would though What depending that is the in on say distinctive Global The I the we we market full thing breadth is, Payments other differently of different the to instance distribution. each view is have say channels.

in and Mobile each of case way instance online in including the sales select in base self from our dealer restaurant. go we through the So to all direct Heartland Heartland up

numbers really breadth has and you across and conjunction a our and that of We're the of can direct our what and incredibly is in and markets is States we in is, we report in globally prepared no restaurant the winning coverage breadth about in distinctive had us, So SICOM Xenial certain have of the terms Heartland of United from chain. dealers. through partners on I with hope the at George, the basis I remarks do the it efforts online proud as and really strategy, one came think and today, tell in success And also distribution.

on the of you're of in on distribution do describing. I customer type depends about think it terms of size, and the you're that type So, talking it depends

results that show is that think it's I in what distinctive these case. each

Operator

our from will of with come William Bob Napoli question the next Thank line Blair. And you.

line Your is open. now

Bob Napoli

Thank also on making you, the good morning. And congratulations and you're in certainly right that investments solid the direction. quarter

you Data, Now Worldpay, of talk rapid Global the your your would. of many model, on Jeff, the the different in means of ways. a and growth are of merger you is There's when Fiserv-First group. were going the FIS what market, you Global? among in and that as First Adyen's wondered the I comparing Square away. that legacy what legacy suggested, that on seeing about market if competitors, pace, Global. the the legacy a in rapid lot and competitor growth, transformation is of to thoughts industry changing how, thoughts is this Data, for happening sure is at in that competition and change FIS kind I'm means Like just But who a change the sorry, the you're Not the what for what

Jeff Sloan

technology-enabled really year, Bob. is competitive years. five-plus that question. Thanks. announcements that great adopted think, over in cycle environment 'XX increased What confidence 'XX, I strategy the for in would last a and Yes, It's the think our the say we've this the reflects validate the results recent guidance, business. And the you guide of I our I in the saw results you our the saw remainder today,

who do differentiated a we very anything, I think than As of lesser announced a for you much some transactions as in have the market. strategy commoditized folks are

back finished describing, really last combine just Those step and defensible the technology strategy leading-edge channels going you with if think a competitive forward very five-plus distinctive as second, a at. technology significant over I really investments company to is provide software-driven and in we're distribution. to we our moat where and a as for years

we're the UK countries, focused Austria. you size with business. comparison X% that geographies, companies is to only that different our to be SMBs; customer, soon example, of mentioned, So in XX squarely The XX so for is we're some different of on in

all asset as distribution, the differentiated different through of self-select up have which partnered And of composition, way world. tech well in software. the the as forces largest direct We sales types selling is one owned,

to tech, own overseas additional into settlement direct countries organically up Mastercard, today, mergers of partnerships the all a revenue that's the been announce and everything $X generating have reflection direct with operating, those transactions, and people So and countries of kind that we've we've second, if is for else, those go things because think Visa truth how you say announced have sales, step membership their growing is Bob, folks the of the gratifying And the double and coming that etc. I direct of States we think, I that The billion-plus United markets been those facilities, announced. in would running validation what in a back results that digits States, It's with in XX X,XXX licensing, markets today can in they see doing. generating. people they and the been to we're is outside

to for that that a people that We've time, gratifying it's long the reflected think that's So see been other that right in doing today. and strategy. you the see that's results

Bob Napoli

what the your inorganic an much really, And so global and guess XX the I pipeline Mastercard, but important next fintech just now that your U.S. think, said private to they deals their With going a the XX look in globally. would that from most are is in over perspective? what had that reviewing. not you in follow-up expanding There that are in markets, position, I is are is thoughts years, question your built in you've on so on to you business where they

Jeff Sloan

Sure.

remains So full. the pipeline

today, remarks to is profile I year. prepared of our our been his which right Cameron middle on range capital the period sheet that managing we've think a and in in a commented balance over of

pipeline the So, full. is

additional scale would say a the vertical Now horizontal of and we're what's pipeline? I new it's of geographies mix mix software assets, preclude already it's of a those never in. that geographies, consolidation. Yes, say, mix in it's I'd a

if we're And you on very we Bob, with do And the Heartland. Of partnership look strategy, that be we can slide, everyday. our course, at to pleased couldn't with more distribution you pleased. restaurant what how core is see

out certainly would further horizontal any rule I distribution. So not

that say to in So at had I terms that years I've open, of been more at. things ever high-quality say expand X wide the looking we're the I opportunity I it's don't our plus types think Bob, would the of would organically. Company, we've business in

make the historically us right further The between go and us, very our as But as we inorganic with a front where opportunities in runway is flexibility to organic have we capital growth. provide to long to decisions, to go of things. the have to and important for thing those done

Operator

Thank you. line come Sachs. Jim next with of the from question Goldman Schneider our will And

line open. Your is now

Jim Schneider

question. -- existing for software taking kind employees the you could software you assets and example, assets saw we the if for Thanks those morning. Good on my your trended have kind kind of keep it ability some retain software with helpful, your time, was wondering ACTIVE Jeff, a you've how strategy. for Maybe about provided you us that and sense others, very owned can give fresh? of of the to I color was maybe But

Jeff Sloan

it. Yes, sure do Happy to Jim.

of pleased and very businesses. in particular, retention, attraction employees been technology-enabled all including at and we've all across So motivation, ACTIVE with businesses employee our our AdvancedMD new of

ties And told APT in and this, before, October in here, meeting, of we you we I first, Utah XXXX they showed summer and I partnered Jim, the our when one I and with was of you it to suits, wear XXXX were remember kind you'll at showing If of jeans think that big concerns. I Jim, of at back first APT used casual. not up back in appreciate probably up and

As today, the jeans know of you we're us pretty Jim, Company. casual the around rest

today OpenEdge, So did the running I AdvancedMD who four true employees time and employees running way in we've The transactions. way. today, Zealand. did by companies, companies folks New the we where those Australia a five later folks and who are would of years thing -- is today the ago. easy we ACTIVE are years say, who debit APT at seven those Same folks folks today running long that papers of we're The realex with that and are are running Jim, those come

certainly years the the with something greatly Jim, good. around plus. did it's but all Payments of when decade very terms APT to retention very have been monthly of focused our ago especially been last we first on, Global specifics half And seven that were So and our we results that's partnership in over something, We track our consistently businesses. at retention attrition very benefit

we we're where pleased So, with are. really

I vertical new the people we additional excited that markets make think with with that to continue at business investments in. we're are into the geographies software and

terms also the around folks are us those globally of we usual for world. think mobility opportunities in who provide I for businesses running

something been looking really very time, think much So, good outcome. it's initially. very success it's we on a story, were I But a in over focused fact

Jim Schneider

attractive in a remarks. terms comments you seek focused But vertical, of bit That's might sense that potentially talk helpful, a you assets thanks. there be follow-up, that verticals think us preview then kind in M&A could whether you on? maybe And where target? make in your prepared about to other a could of additional verticals any government I maybe you're out think of any the you and there's as then vertical any around alluded some to maybe give could

Cameron Bready

in it's I'll on Yes. if one Jim, Maybe mind. you don't Cameron. jump that

a for surprisingly, targeting not don't lot to about it's reasons. that vertical may be So probably specific of competitive markets color we want give

still can based imagine, one, fairly We market markets previously, of player, there's the look opportunity you're I number fragmented of three and acquire As highly where a where size for software and operating in payments, you really between the lot as monetize about to where extensively growth, strong market an as a with opportunity nexus on markets at we've obviously or a opportunity. the we opportunity to target two have software this well payments. talked we the think

we we broad-based some ourselves, where them look those solutions owning and the look international U.S. by can determine outside also other to have which markets export We operate obviously of markets vertical at applicability, underlying today. we technology the where the pace at bring to that

of those about against more from we So an the strategy to obviously of that markets a deploy think market successful owned It's kind that's our weigh to for our software we capital And at generally already that highly opportunity. vis-a-vis standpoint. we and partnerships today managing has grow model, acquisition we're kind continues obviously expansion to partnership been make which pace. strong sure how nice where us have very

those to how that's criteria. without can verticals getting specific would about what you verticals we would into targets. think draw what conclusions marketplace, the markets specific probably So But generally or meet as and own your

Operator

will Jason Kupferberg the our And America from of Bank Lynch. next question Merrill with you. come line Thank of

line Your is open. now

Jason Kupferberg

Appreciate thanks, percentage versus it And just us update of to restaurants vertical there. to guys. restaurant did circle much Can dive back terms revenue? the now Hi, margin the the of how now average? How is wanted of compare in is actually give vertical. an how a this the big in on deep software you processing? as total Company I

Cameron Bready

in Heartland across of the the Xenial probably of dollars end to And Relative and hundred business Sicom the to the rest and it's guess, for of space. across of we vertical, you, small Payments, rough where as Yes. at is when mid- million the dollars, Heartland million well. the below Global Heartland going probably that, and market hundred of the of side have couple enterprise Restaurant Mobile, Register another be, a the neighborhood software couple

Sicom majority say Xenial roughly the again I level. would revenue software-driven, today, that is probably that at of So of half the with

Sicom you or its doesn't, customers. not recall, As historically services has payment provided to

But the against today, that'll large us, currently, size time. looking software in so the that that particularly us we're a of for for increase payment execute that's across over the opportunity the payment vertical here revenue fairly a sitting it's of market of So to market aspects segment cross-sell and business.

Jason Kupferberg

mix may space. been the be others seeing some called us not the a just on seeing as is guess from the overall? to sensitive I But zooming your macro to And terms are My out dynamics such that around in just as of little a bit. for of underlying have you standpoint, point Jeff, world Easter maybe consumer. Maybe get a what for what out you're in take minute wanted view Okay. your guess that merchant

made I from But countries a I quick macro on mention overseas. you thoughts a a of standpoint. your think would couple love

Jeff Sloan

and Cameron I'll may jump in. Yes. Jeff. Jason, it's start,

So I that is say consumer that is would overall healthy. snapshot

You saw over the at the GDP ago number last in the one United that seen the number States day of years. two so X%, numbers that higher go out over of you've a or

Jason, we terms February in we're of the as healthy and little United this concerned back weeks thinking think Canada you the in if up a in we said the said, consumer. further, -- in So two December, call, I last Kingdom of the

January. us heard February As really in say reversed you've in that of call, kind the

So, It the very it's falls know the we flipped, the Christmas be December week tends you February But if never on, Jason January. of in that that of that as holiday-driven. weather, like to in for obviously day kind said, thing.

can see in results today. You reflected our that really

were So, those were Asia. for. in impact the things never that really watching we We saw

too. that very wasn't in currency rate think was quarter the in I hear a lot on the in gave. through I and performance of XX% we issue consumer quarter XXXX were talking biggest the back consistently you it can can Pacific the playing that the the the through movements said XXXX, fall revenue us. Cameron APAC tariffs, go in to And FX Cameron's for Asia a about health quarter for growth fourth the with us XXXX really is think people constant when consumer see the today organic first pretty commentary But first is now which of of If that consistent impact you you to say of

February Jason, bit call what so that that a would remains Probably better frame. moderately kind would of GDP I saw I saw other little in we print around lot States, day, but the say the with So time financially a United the consistent we world, say consumer very in the healthy.

to As stuff how on stuff. we the to it that that model Easter, calendar, is know relates mean I

quarter take into date, things processing -- So number regardless our of et we account when do what those budgeting. fall cetera, in, we

when us see. to other those as folks So, I'm is out available bewildered bit a point of always for all a when problems calendar big

Cameron Bready

in Maybe other Cameron. it's of points add probably a non-discretionary. largest more that couple consumer market our market a US are skewed And to Jason, we I'd the as toward just in reminder,

and obviously business exposure, more hold that's to maybe healthier volume day you more total XX% restaurant, types generally more I'd business revenue we're remind of little for areas again number more streams you in So, transacting globally. Number up cycle those see more would year, the transactions defensible software called day tend obviously are our as well. consumers amount in a susceptible revenue us bit see built skewed end predictable, cycles cloud-based like do now software, is of toward model through two, at the better QSR of a revenue more of trend competitors we out that the bit probably resilient, thing than one. we and less we the nearly this as toward see, performance little other particularly even where as market is in our to that last pivoted just an again well downturn and out. stream we've discretionary that where do overall as a obviously might we have to that subscription, the a tends in And even of that better The consumer

So business kind year. environments. again, the for of say QX to variety the going relative expectations we things the of Jeff's overall right think we've done macro a into the would all macro was point, to environment I reasonably good But our in to position

Operator

you. Thank

the question of comes next with Wolfe line from Darrin Our Peller Research.

open. not Your line is

Darrin Peller

Hi, thanks. guys. Alright,

Jeff Sloan

Darrin. Hi,

Darrin Peller

touched OpenEdge integrated I continued record bit competitive know pretty And more business question business at on grow is I a that a just OpenEdge this strong we've you look rate. generally around on been more the the mean dynamics. to payments just questions Just but -- obviously and business, at -- at a before, we when and first this hearing your market

we're like look evidence seeing of at your [indiscernible]. really doesn't the numbers it that least So in

initiatives there own more that try I'd in to ISVs is the other you're more payments partners it on and you give any like sustainable? do pipeline? doing then that differently? and the are us seeing is their the business? impact some hear, having So, you color so Can of to Or something Is

Jeff Sloan

Yes. Jeff. it's start. Darrin, I'll

yes, answer is the So we're winning.

we February back call, if significant So three go our wins. announced you to

all already. and that rolled and Tyler chiropractors and situations. I won we RFPs all municipalities, to out this a ASI involved toward this Gather morning we actually last number the as which three We end bidding And of gave were color more well as were gave morning, that ChiroTouch, think And year. in were we've as RFPs. around color of competitive those

part we've the good our folks think I the answer of built I very other with But side. the think good I So sales think mousetrap. is part a on a job answer that done is we've of very

OpenEdge United its So Kingdom; to markets putting our aside in our multinational is say offer other is lot cross-border, in execution of and sales, multinational go like of is as I'd It's it's to, example, everybody say made we mobile-based investment alluded ISVs And as something, API-centric, our that like on ability basis, to products Tyler, well cases. to nature; OpenEdge Cameron ability our not multinational things which a ability to lot critical, is scope, us. as has partner the very offer in those for Canada particularly in native of in. really with a jurisdictions. to also multiple I'd in in architecture distinctive also a

about we really relates the relates That to at it business. as say it unfounded pack your VAR, concern been, ISO that I'd pay was a seven when fact, years with to the first as has our Lastly, in APT least as concern question bought ago.

tend to we focused their base. our growing partners software revenue on So fact, that in are find

change, announced an our as we are those goes they've think been but business, these go volumes that of nature not an in the not of partnerships agreements, all large rev companies that's do. share and businesses, we of of I to and in we've time with five-year on scale that up part three our With course. manage integrated ordinary have just issue. it's that what Obviously we're good some as recently, realized and

more I can we'd honest, the my haven't that the is which it's multiple market, markets the But changed. pudding. sales, really better competitive. always The really, provide better markets, course, in So things highly And win more proof solutions. is better be been own think execution, we of view in let's technology, with,

Cameron Bready

been And goes in that Darrin, thing where we will The higher gate. is would often competitors out relates to to one, is to Yes. add years, to even those a I more give And share only what much that decision-making win And it's two, show saying Cameron. for rev offer rev other created we've situations the our me. a than it share you're the of which equal. process how willing is ISV a as all not integrated the lot involves

results. I that nice in seeing breadth think have I play across with competitive a So us depth we has space. and given vertical the advantage really think track out record, the And our of the partners, that you're of capabilities markets in thousands different

Darrin Peller

right. All

margin Just one things quick to upside opportunity mean trying follow-up. of identify I the overall. is the we're

moment? extrapolate it that talk it shouldn't can be? be about edge a big going maintain a of to we And of want rate is you revenue to margins that? competitive Or run just longer showing there the requirement the and margin that the get view to the penetration if software the is greater you the mind, our to where You results, opportunity. software I business, in your get keep greater can term, the your in mean to so there investment for incremental you better

Cameron Bready

the the of sort we're higher, business. I frame that years. to the it Yes. of factors. time about number the software next and you're portfolio, think opportunity business software, several a It's over looking, comprising we businesses appreciate more add operating Darrin, is the ultimately One X, overall opportunity much Obviously, degree to up over some more margin on the then course; a ends I the cloud-based the which the question, for it. base optimal how to here SaaS-based, really is depends the talk couple think, of overall I and good of

top-line to side to payment back being to the having So we've mid-XXs to about drive to continue without in more growth. the business margins business the talked to of low traditionally investment get able the make meaningfully

software high-XX% we I margin able of get sure maybe to range back to we to as think mid- to before in to a we portfolio, the levels the to the the driving that topline growth ultimately into higher have more to Company. add we're can drive we're capital so sustain same more make point business that the the

by working to largely And capital we We're not shift that's the execute We to new software business margin the about a portfolio, I We're driven to that generally we're to from the it think continuing mix markets further We're that think add we So, upside software for against. of way globe. the think lot around opportunity starting for bringing only certainly our today. opportunity more it. the as there's scale businesses. here, increases.

same drive we're going very the of sustain manner in investments forward. in next think job expansion high we're the balancing making back business the the that to margin business I course think So, in business and the near-term the execute to several same years. nice levels continue incremental the with we'll a growth doing of I growth in over And that of the

Jeff Sloan

line Greene Thank And of question our the come with next from Oppenheimer. Glenn will you.

is Your now line open.

Glenn Greene

morning. and the on restaurant Jeff. Good Thanks. update, for Congratulations thanks the results

Jeff Sloan

Glenn. Thanks,

Glenn Greene

penetration. needle GPN the was moving trained Do forces question, the bookings your just trends, direct was I an this AdvancedMD, first specifically curious at sales update of point? Just get payments you to our more and on sort booking expect

Jeff Sloan

I'll Jeff, start. Yeah, Glenn, it's

to payments So at fair progress a on amount that made AdvancedMD. we penetration actually we of the alluded

OpenEdge would our amount in in time on is capital So fair in an into tell I automated better of a AdvancedMD to partners. you very referrals spent leads substantial OpenEdge We what basis. increase integrating

So, that to getting of to at period substantial last started next that to hope make XX% with the number time. we progress we that be over closer XX% year

payroll have remarks. as also prepared We in our in we rolled announced

to offering the progress we've we about offices, on we're feel payroll good So, we're what integrate into referral so made pretty starting to the physician's integration.

that further, particularly of If of fit we it's all in Payments. business. large Global not you step back AdvancedMD, size a At

impact, generating. guide to department. our X-figure able and really given a to overall at economic So make payroll going to not out to meaningfully the our AdvancedMD add develop is to Global It's it's the big Payments additions in important But strategy to Payments. continue and here in for OpenEdge put actually what at range morale with be us the Global and AdvancedMD

strategically of just show the and to So, numbers, it's up incremental lot -- blocking going it's important in it's not a tackling.

Cameron Bready

Glenn, than as back better first say of perform and it's the our for the strength on would coming Cameron. half that's expectations I AdvancedMD quarter XXXX matter. Yes, largely a did off bookings

strength frankly of in suggests first not for above it's in better the had strong scheme do were every $X but huge over we billion and now little first the helps. budgeted quarter As obviously you the a between grand back them can of the of business. of business 'XX kind that positions we understand, leading generation into obviously in for in that period year obviously revenue there's time the booking The revenue, of half a sort and to quarter and amount saw the of budget. Bookings a bit

for we've well to expectations perform for that bodes continuing for that think I exceed that balance to business of XXXX will the continue So well set team. and the hopefully,

grow market. under-penetrated delighted the and we're in a to believe with a there's So, and far highly of to expand that lot business progress opportunity fragmented, continue thus

Glenn Greene

profitability in from it Okay. M&A, perspective. the North And despite margins, Anything points, Anything think FX so that's timing-related? pretty about then just Cameron, sustainable? a on quarter? unusual XXX it more business back-end the phenomenal Is I mix? quarter in the specifically America, and Is basis

Cameron Bready

same I back suggest at quarters mix. that we as of the level the business investment making to into want three expansion see of we expect rest about lot a It's to that the wouldn't business. the are year

out As little then year investment go the I'm appreciate, starting to sure bit slower progresses. up you and ramp as year, the in tends the Glenn, a

through outlook four margins that look business to through, the the in continue more to full reflects to how drive, again, we higher of and rates growth we'll flow the bottom year for kind think of I to we So want and top much with kind the balancing line. that of see to reinvesting line QX, investment expect three as

better margin plans on increased standpoint. remain into than think So a year, full obviously, from our flowing the track our well. full That's the I expectations the was also but investment as QX year outlook for for through

Operator

you. Thank of SunTrust. question the Andrew Jeffrey our from line will last with And come

Your now open. line is

Andrew Jeffrey

Hi, Appreciate in kind me morning. you here fitting at good of the end.

and out restaurants, I'm amount he changing. the sort impressive so-called can Bob's that's of to raised how As to wondering and specifically, by service from you follow-up environment. how obviously in a competitive some environment Jeff, you the but investments lot question how there view More has that wonder technology, competitive touched infrastructure just mean the if the made on relative Global it's of a if that of competitive perspective. I or you disruptors philosophically regard capital capital and on of comment a and might practically, what been in

Jeff Sloan

Yes. Great question, Andrew.

in have that at companies we that on those So that the posted done of this slides looked I X some morning. we think Page

evolve done attention folks So quicker business say that pay our to would. like more good and I otherwise it's we for even stuff even us than would pushes a and because thing have it that further

folks the occurred Sicom, the already more about Restaurant. case the think force what's not is of somewhat Heartland have we think Andrew, than us, enterprise a So at direct do of slides, than sales doing QSR and versus case have distinctive have also we in more we market-leading existing have the foodservice Heartland dealers in Andrew, are XX raising I market-competitive level, to those is level. Xenial also have capital, which sales where at at making an enterprise products, than In but also only the and which people XXX I unique we of some who other we detail those the profit, think investments

the the I assets that geographies. that self-select, in So think contribution are the is direct of to. but It's high the competitive us end different that lower market, dogfight distinctive that we terms of leading-edge just customers which absolutely sales for but technologies sales, have at slightly with reasons not here terms a sales those partnership it's products in of just enterprise are help end not think just you the of of alluded multiple in very I terms business. But in really but of direct and market, the kind unique

in foodservice have doing them, in about to with market, countries a like number in we in to none which companies start-ups really So we're like those Austria, XX referenced footprint in of of Payments, capital, of things. as Global business across and partners prepared the raised locations and nature broad-based nearly XX, our Andrew, the be remarks, geographies, think who've multiple something locations. can XX, and and soon Sodexo we the say that Compass The physically we fortunate have in folks XXX,XXX them really

a think or our not States parts is So the profit that, you're at really you're in that not news folks at enterprise of and meeting of very thin going the with hyper-competitive. solutions, day I to it's really but and going you're location Europe to end United help who raising But across really restaurants good plays Look, in list. you level. Asia, when capital do producing you're a And when also and dealing it Mexico the lot find just market without with Canada multi-hundred in it's of to strength. dealing the need

Andrew Jeffrey

the also Jeff. on sticking also Heartland And Restaurant, theme, Heartland Okay. of slide time? look go trying that's the sort That to slide kind enumerated move is the feels to Register maybe Thanks. competitive think just interesting pretty a toward to referenced a going Global's pretty the wonder with the back you attribute if -- on were gives and competition helps, at with you I I approach you it of just that self-serve if some three intersection And think the like over market competition advantage of you all when is offering. aggressive whether that, and to between

Jeff Sloan

I think the smaller you look you're in Heartland Mobile Register, customer those said you is what in Yeah, by and instance, right definition bases. if to at Heartland which first say, are

that's at probably on of there would of say, noted neck there the or product there somebody's single in where what switch not ahead the the remarks, from capital prepared that we But point day. a you So got neck, right of as And said we the I view, said, a slide, I you're one we're our of we're kind in distribution of as service think restaurant to truck, hard taco anyway. a and think everybody end I has gone.

I is difficulty more level, think need where and have and relationships of investment the have Heartland you accounts. service people to in to Restaurant because those geographic breadth the really competing is the that at the enterprise in

people is have we is in sales But have So, in customer with direct low I think as you that right other who folks at have self-service at the human a these to what customers, of really we've communities known addition support. the the end said business XXX those and what those and markets as XX/X, that day. then at in geographic other got they're service actually the getting being try margin film don't on support live live we for Heartland

pricing and -- of at their if market-based the night folks below announced what some results is you who've take are, last look including say, substantially our would I then rates the of So pricing. lastly

be say we example, all Heartland But Now, based move for we've years. of been trying case we said, that's the that's the market have we over over not historically, at last should to not and up that been said to think as pricing. time number on and -- that we've

you a if relates the We certainly So, it as product market. to a human more we great upmarket the that think umbrella of customer of form business in gets own on the name. We end think service obviously have firm very pricing as wants by know answer into not and else's with that's we we've can superior markets have got anybody lower certainly your good who somebody go to beings phone then page as they move you bigger, better. as to

to there going market. who's But So, is be come somebody the XXXX. I versus competitive to have do got to attack low easier certainly, advantage restaurants think XX a up for that folks we at somebody in and end of

Winnie Smith

Payments Global you interest Thank for for joining our morning behalf company. this your in us and of on very much

Operator

and our a program does on today's Everybody, we This participation conclude day. and thank disconnect. for your all have you Ladies gentlemen, wonderful may conference.

Global Payments (GPN) 3 May 192019 Q1 Earnings call transcript