GPN - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Global Payments First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will open the lines for questions-and-answers. [Operator Instructions] And as a reminder, today’s conference will be recorded. At this time, I would like to turn the conference over to your host, Senior Vice President, Investor Relations, Winnie Smith. ahead. go Please

Winnie Smith

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

Our accompany our slides be the earnings and release that the Relations www.globalpayments.com. found Investor this area at of website on can call

our and and we impact These that comments materially cause by conditions forward-looking statements in statements. to these the economic results statements are from place I’d subsequent some forth SEC, call actual our are operating and We inherent XX-K of expected uncertainties the in filings. today’s business made to you to subject management remind Before future undue factors that other including begin, caution could and reliance operations the recent of not to about conference COVID-XX our filings with during on expectations. differ factors, including Certain contain our like most on set financial risks, results. risk you

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

will several are referring measures ongoing our financial to performance. non-GAAP be reflective of believe more we which We also

with a regulations, press reconciliation an For morning and to financial to accordance materials. the see the measures please most our full comparable non-GAAP X-K release in measure furnished this filed this in our GAAP discussed of as Form call exhibit SEC our supplemental

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

over call the turn I’ll Jeff. Now, to

Jeff Sloan

Winnie. Thanks,

strong that into despite throughout XXXX, We the headwinds are delivered heading expectations pleased exceeded incremental our quarter to another results have yet macro of period.

highlights business of with solid revenue, margin our resilience quarter and earnings free performance execution. achieved share and record record per we first Specifically, track cash flow, our again and

Solutions in marketplace. delighted momentum especially which strategies winning for We with ongoing Merchant differentiated the are are growth exhibited our as our performance,

early reporting we've We gains. payments drove that sales Integrated and results strong reflect attractive bookings in high-performing this market growth for creating are two US And two these businesses, see combined evidence on opportunities those today quarter. these to and a favorable trends additional and growth more The and strategy we we businesses year, further to share, of best accelerate cultures. the Global by new and been Payments both our providing businesses during streamlined across go-to-market gaining payroll our capitalizing continue the unlock

the increase partnership, We're commerce We we have GPI and also our acquisition our efforts to of partner harmonizing and are Heartland as as excited, the will sizes. all professionals, go-to-market launched in we these drive joint across expect well businesses early our penetration facet significant our solutions recently opportunities Google our sales with referral stages cross-selling customers, of co-selling channels. the leveraging of customer enablement of for new

remain our our to Google and later phase on digital of grow help to success additional Business platform this merchants Platform last year. My Google faster services connecting track we UCP, launch Grow We Unified also which relationship North utilizes our of with expanded Commerce launch Google, Further, initial Asia America, in or next following our the by to to year. acquiring our the Pacific One late

Speaking the in excited acceptance payment UK its and Global new Europe. of Brooks leading to to modernize with platform, is a omnichannel partnership capabilities Payments our across Sports announce

multiple as payment Group expanding we Asia our and the our with Europe, features with with in across of beyond North pleased new to addition, Hilton, Swatch world's regions. our existing charging America We're relationship ChargePoint, including network scope increasing brands are incorporate functionality to be now the present e-commerce. card EV of the include and also largest stations and agreement In to partnerships in well Pacific, as

Trade XXX America, UCP continues we to Solutions Treasury currently Europe gain traction. targeting customers. via Citi partnership approximately and Our spans are UK And Citi's Continental with the North that and largest of

together continue We and Netherlands Across expect merchant our combine unique dozen and ability to be through add And across are online by year Germany. Ireland, live countries software we Spain, in XXXX. a we new X to the harbor including and recently our launching also in partnership, Italy, European geographies end countries in channels. our additional early businesses, mobile in will Europe payments in-person and by to launch

and the our as quarter which later great we our solutions, revenue well plan traction nearly solutions in with retail see key Vital example, and bring generated markets, UK, Spain one of As across including software the as Europe the continue Central International particularly first to POS growth this year. we XX% restaurant verticalized platform, to to as in

Mercedes-Benz growth vertical solutions Our tailwind have these the bookings, robust double-digit rollout going Stadium additional QSR, multichannel Bros a soon be POS growth Dutch and and and support businesses our for now to events with live our as Merchant part we will relationship our increase in growth. point-of-sale in of successfully In XX% a we expect completed In our remain markets with with our include of offerings to brand's enable expanding the cloud vertical, partnership commerce portfolio Enterprise delivered to solution forward. stadium its our software strong Xenial we will gone ecosystem.

to digital calendar remain also John worth new Ann's, Silver's Further, Southwest the franchises. track Mode a to Deli deploy to year board and prior Grill complete signed Jamba menu of of McAlistair our XXXX. agreement its all Cinnabon, it's end with Carvel, the Xenial Denny's we Xenial's Deli, to Focus Schlotzsky's across and We Cloud rollout restaurants Brands solution on solution Juice, POS Long that Auntie highlighting

for signing of the bookings International new deal XX% best estate, of and in physicians its platform, continued quarter surpassing in significant utilizing growth of the providers new And also TouchNet Our a Zego delivered the and first delivering active in vertical AMD first XX,XXX business time. for the newest the ever. delivered of the of period. Columbia, market, quarter number our which history, includes largest its bookings another milestone with eclipsed single Early quarter sales British University nearly with the strong record success the real

at or launched Later our we said a Buy XXX-plus BNPL As from we the our conference, BNPL in benefit We as we we methods discussed continue in ecosystem, quarter payment alternative augment September Now service as exactly first would. portfolio investor to technologies. innovation Pay to our ongoing marketplace including our

with X Our scope we we our through Late and Asia Pacific for offerings of marketplace that longstanding year, billion PayPal, announced which and issuing leverages expand annually. our last across beyond we institutions provide that combination extend an solutions to initiatives BNPL e-commerce compliant multiyear responsible agreement the relationship America, the supporting unparalleled transactions a to technology that target footprint significant allows BNPL through In with point, have across merchants Europe that through the and we reached I'm retailers, the our while in business growth And our enablement report with multiple and will a choice. basis to enable time, first providers we target this to our markets consumer integration payments happy merchant live BNPL and drive to and expect market-leading financial regulated, single PayPal new addressable our additional cryptocurrencies expect in support a period. quarter target markets. alternative already their expanding on be expanding for and geographies North verticals

asset hold a ACT, assets. alliance announce a sell enables pleased of strategic digital we are range digital to trusted a and with that platform consumers Additionally, buy, to

credit with range redemption enabling technologies prepaid customer card as a expanding solutions. use We and will by programs ultimately our with loyalty offerings debit, and payment acceptance. our a issuing of clients, ACT include linking cryptocurrency, offered virtual, collaboration supporting to cases announce for Banking and broad Service multinational also cryptocurrency excited be bank We're a starting in to leveraging

Solutions. Moving to Issuer

highest our other Global XXXX of Money with We where technology to use our years. Virgin multiyear debit are businesses. partner Ireland-based memorialize live Global case, selection CaixaBank our also Further, and This first Payments TSB, for Permanent have implementation Virgin are providing in across and our the letter completed pipeline for of aligning over takeaway, successfully solutions, to conjunction competitive provider debit renewal with that issuer its the a our our would our to our Money relationship migration our as announced next and as strategy In and proud to business well two double long-standing next acquiring potential TSYS we stands achieved thrilled portfolios. to Metro months. debit issuing to issuer Money with customer our significant signed we continue go wins, level complements to is We're Payments successfully leading Virgin agreements opportunities recent positions the partnership share benefit portfolio from XX and signing as platform strategy the is partnership as and we Europe. several its a accelerated card credit the combining has capabilities with growth of which significant Bank UK-based CaixaBank is history, technology market announce largest with of a its for other new to And recently in the stream intent issuing it which both winners. expect February. credit optimization customers transaction with in since offer

of in record expect States. upon that We are selling through to Issuer and the is more American-based largest our United because technologies portfolio winning acquisition are distribution conversion by to another we expanding channels pipeline a Simply we our our distinctive North significant of in leaders previously. have closing one more markets ever the add than to we put, clients defensible in Solutions business, sizable more scale market-leading

be have XX anticipate successfully in XXX our and our with CaixaBank AWS, go by partnership cloud And client fintechs AWS with with to to with in platform and settlement pipeline, we cloud us available provider end built first planned and of issuer services large include Issuer business, XXXX. the collaboration now XX of financial to migrations as tracking Mastercard startups. unique and already prospects to institutions which a active over announced cloud. recently the for among neobanks, preferred XX executed cloud. is to our the now Together clearing directly are we the the in authorizations, with the Our modernized We've modernized

currently have with competitive four We eight of are worldwide, intent institutions of also takeaways. which letters

We participating RFPs active cloud with in globally. and several XXX% institutions currently are large retailers

at the market. Simply sells. put, functional stack payment us globally in differentiates public operating the fully Our scale issuing cloud modern

our with capabilities payable technologies ability solutions, as business. As we on we're managing BXB combine further look accounts our market-leading to now Issuer into of a best-in-class part our capitalize Solutions SaaS MineralTree to

and went Bookings successfully excess American of one financial with Investor Bank the and for March. spend discussed possess our growth live at XX% our fit companies, When quarter, in Issuer businesses Conference globally last AWS and worth last Bank that achieving MineralTree highlighting card of year. are perfect grew the card accounts enterprises. BXB products the that are believe that history that co-selling including into its MineralTree that we this signed enterprise Finance of into in solutions virtual institution to West overall card business. commercial in our accelerate we virtual in been As It's extended will September, larger program, the relationships efforts continued BXB within already of spend linchpins the growth the and late momentum as now well payable the month entered a and segment Third Fifth with our our quarter, of largest a we for middle with scale which We're period market this strategies. card as viewed highest key MineralTree's delighted in and our customer that both us XX% capabilities have light, MineralTree's large at allow virtual

Our successful. solutions BXB business to be focus our growing on continues

an States. with and achieved the our United include stores to since with company. set our driven corporates financial focusing running to we've investments years have We partnership our expanded XXX refine solution in strategy This the enabled EWA we Barrel its our time, existing and stops agreement states. increases not partners, that than employees growth to more by Paycard customers, the Lots, the more adds our eligible than technology At over Farms, partnerships we've across we relationship our simplifying by Cumberland and in merchants, we to than opportunity more the the made during Paycard XX core Also, X,XXX Big travel recently began have and last We country with could software eight more locations renewed collectively portfolio leaders, over stores spanning their same XXX%. large corporate resilience composition the institutions. our pandemic pleased businesses our outsized and with the seek and on including be continue of in Cracker

events sharpen our review to strategic have that Netspend look details consumer our Netspend's business As and I a on plans to set our announced is initiative, pleased significant that there quarter, assets additional as assets. focus for we solutions. part in We in interest am providing of of last to forward these of direct-to-consumer the unfold. progress that our we report made BXB on future

that our do businesses our has and time in Before devastating our providing on responsibly closed team situation road members, Paul, regarding we've and not to a financial call what we Ukraine. support business across we've we over Paul? those in I been that for team the been sale values of to I of express And customers We turn done the and the can provided This take culture map humanitarian We Card concerns decision-making. the and operating Ultimately, our have United deepest recently Russia. solace to members region. my in some Ukraine. for the support any partners our difficult impacted. Service all

Paul Todd

Thanks, Jeff.

with our of our performance of benefits, foreign the in exceeded pandemic, recent the and headwinds more exchange in currency expectations strong which pleased incremental the stimulus first adverse are war Europe multi-years rate. the despite financial quarter, We anniversary-ing from

prior Taking of points, a the net the point look year constant net This basis. an we quarter, $X.XX to our growth the from this increase of nearly share the rate for expecting at we or results share per from per XX.X% revenue basis the low double-digit was a the billion, was points XX.X%, our an over for technology-enabled strength a from by POS on currency increase billion delivered X% year first currency driven on XXX of acquisitions. or quarter HCM performance constant a currency X% first generating February operating of prior from the of our growth we produced excluding achieved basis. Adjusted Notably, quarter the at and margin the adjusted on of earnings XX% basis Solutions the adjusted on growth XX in an mid-teens and the $X.XX strategy. of XXXX, call. longer-term were basis. Integrated that year-on-year compounding Notably, points, margin was XXXX impact execution an of first $X.XX, business basis a segment, To year performance adjusted These earnings ahead impact in delivered revenue Specifically, basis quarter, operating or adjusted quarter in end, we of were and the of approximately XX% net adjusted XXX segment. for business organic roughly XX.X% by XXX business. a business The of another XX%. XX.X% to consistent excluding Software constant result the our grew growth indicated that closer for improvement Merchant the of of compared prior increase strong we our addition target improvement Solutions Jeff highlighted, M&A. Payroll our

solutions, the were compared XX% overall the in prior high pleased that market vertical our year. range portfolio delivered for the growth As to we

benefiting bookings continue progresses. trends As Jeff markets highlighted, positive portfolio, a for to will recovery software we this businesses our from seeing and as we own are across are our also be expect the tailwind we us year the vertical

on points this managed This repositioning anticipated. for headwinds growth first and had last in to within quarter. sequential the revenue partially the this ex-nonrecurring the which margin Moving quarter, was consistent we the quarter, basis offset target. net the impact in these basis impact increased Normalizing we revenue, our mid-single million and revenue. XX.X% XX segment. revenue last a inclusion was was related to segment adjusted by quarter, headwinds to two MineralTree. our for items, consistent the on as a Solutions year. transaction our this our digits, saw Consistent We nonrecurring throughout Issuer of cards of had had net MineralTree $XXX XX On in some services commercial file delivered prior it with adjusted revenue. Issuer to quarter growth in our segment excluding account Also continuing reported basis continue. with a from monthly adjusted from improvement with first beginning down offsetting X.X% points, long-term constant and XXXX Issuer items, we currency of basis, Solutions, expect mid-single-digit we operating Similar of expectations growth our

Business benefits two the lapped in as higher our years stimulus segment, assistance. and teens, of revenue Finally, levels the Consumer expectations net adjusted Solutions consistent with and of in from our segment declined unemployment high

capital operating XXX focused and higher of margin from years unemployment operating products and Reported converting continue we flow full year. Adjusted double-digit million invested the lapping cash of Our benefits. the $XXX federal cash standpoint, delivered XXXX. adjusted Business and $XXX and expanded continue fourth for delivered two impact on the again, for XXX% the a $XXX during levels adjusted quarter, million of expect BXB target to segment free for our the roughly, for free the year-on-year, points roughly flow to revenue Consumer due earnings period. adjusted margin in to growth capital of declined quarter in expenditures stimulus sequentially excluding We this quarter, the From in consecutive for efforts of we of basis XX.X% MineralTree. cash million adjusted Solutions of to expenditures spending flow

repurchased million and remaining priority. had this authorization, just $XXX the share share X.X million. of repurchase billion quarter repurchase a $X.X On approximately remains roughly allocation At this end, for shares we our we capital over front, key quarter our under

liquidity after of balance with healthy, repurchase $X.X ended activity. and extremely remains we sheet period billion roughly Our the

end. on a basis was debt Our at leverage X.X quarter net position times,

the trends we we a guidance could the our the expect now encouraged initial pleased more by remain were not couple worth underlying with financial incremental we business, the noting impacts and in that not are reflected despite It seeing Turning and February. the be performance operating for we to provided environment. is in XXXX, outlook we of in

in we year of in excess which will $XX we exited forecast. revenue First, operating our rest to have prior for estimate Russia, the reduce relative our our business the million of

this be also for significant anticipated year. range, reflecting foreign to our segment $X.XX throughout on our and given level, at billion, lower currency growth growth. these line year, in the that we headwind recovery we outlook revenue adverse full expect provide the top the revenue macro double-digit long-term the from a continue aforementioned adverse remains the net we had revenue than some are or a Solutions economy to to our at It will reflects Despite of range To previously. constant we cycle over exchange a incremental currency with we color expect on for items. to performance continued a to XX% also stable This rates growth Second, low $X.X anticipating consistent range. pandemic target impacts, double-digits XX% benefit, the basis, to expect for albeit adjusted XXXX growth net Merchant XX% be to adjusted of to segment X% continue end from billion more the

the and anticipate mid-single-digit inclusion the of the our revenue MineralTree be to at adjusted net now Issuer high range. of growth With we end Solutions,

the provide We progresses. our strategic review for process Netspend Consumer business updates as on the of will, process course,

basis anticipated the annually. our expectations up On impacts year expansion of are previous points to basis our above front, basis to up from to XX margin acquisitions. from cycle expansion excluding points points up margin recent for basis for our is raising we or XX to XXX This XXX to points, the guidance XXX of the

couple Moving of to a items. nonoperating

effective maintaining to the earnings be for XX% for annual are share together, full interest be XX% range XX%. adjusted this rate a per On growth the the approximately of full roughly year We roughly it to expense in million and tax to basis, expectation to adjusted constant expect to reflecting $XXX our for reflects XX% of Putting $X.XX to year. for all net our $X.XX, of currency be XXXX. we XX% growth over

rates impact to from through the we absorbed earnings. recent foreign incremental enhance we margin effect, Russia in taken adverse expected So preserve have revenue and and currency actions have exchange

despite Lastly, XXXX, from challenging I in are on growth in pleased with would move highlight our perspective, through In picture summary, quarterly first we we that the to a phasing macro building the the a we performance as a environment. progressive quarter. first continue expect outperformance quarter

excel, continues with us of And underlying strong successes Merchant and pipeline, for BXB I'll performance, to Our the future. position and over turn the our Jeff. to enhanced record our back in call early modernization the focus segment that, segment efforts Issuer well

Jeff Sloan

during track expectations in on our am Paul. raised quarter, for And our which We deliver performance I the has the to guidance XXXX. rest our Thanks, cycle with record pleased September results us XXXX. of for the absorbed for share couple remain, enter incremental guidance results substantial despite and first gains. XXXX quarter our further year momentum, months. the sustained we've the in unprecedented We and support headwinds provide with last of

Our deepening highlight year our targets of strategies, of the the regardless moat our competitive while environment. for this wisdom

the Looking ahead, capitalize we to by focused our prevalence, at on Conference Investor continuing in which Winnie? on we maintaining and momentum differentiation software September. depth in digitization, commerce enablement, omnichannel of our trends discussed are

Winnie Smith

begin session.[Operator Operator, our we will go now to we Thank you. Before questions. Instructions] question-and-answer

Operator

line Wolfe question Research. the from Instructions] first Darrin Peller Your [Operator comes of from

is line open. Your

Darrin Peller

of to market I the And outperforming share want position that assets have first obviously Jeff, rebound side volume the card still you of sense? and we're off there's strategically it's the on because with if just assets, potential the just underscore merchant very importantly, any which can again in positioning. I the growth -- guys. really, Hi, couple seeing remind us you Visa's think, they know side, all, thanks, what's I of the come? to be the years there's verticals, think of talk some now, credit does start When volume well. makes you just understate when incremental, still the next think, the where but think on about of more you if reopening

Jeff Sloan

Thanks, Yes. Darrin.

in question. with your pleased but spot couldn't business. especially We you're the in Merchant our performance be I overall, on more think

the let's reopening you on with started where just question. So start

we to As in growth to I relative excited vertical our we're to We in markets said, has our XXXX. prepared business had, relative remarks, markets high this quarter returned our just not very think that growth vertical XXs we said XXXX, as business.

to mid-XXs accelerated actually in first bookings growth, the Darrin, Our quarter.

accelerated Cameron businesses So within a can vertical number that in the describe of markets. actually, has performance our

In terms of recent also Darrin, active been reopenings, there had include have to K-XX returned more and laggards, growth. example

of combination business, Investor quarter Payments the been in as including, had Global with is quarter really, would That same reiterated that been business place. which business, the it So no we quantum turn it as at saying XXXX. little that's about think thereafter. a just resilience been are kind of double-digit I feel the over Day to our pleased remarks, elements give in Addressing growth this we our our business first really your of Payments we of Listen, And in another Payroll of prepared of are before and to described revenue there strategy reported year good a our for color. today a said business, essentially think tailwind and our where and our the we there. really the this second matter, Cameron going I very question to be Merchant the particular, merchant with have of I first we Darrin, across morning, pandemic, in business We've more that that in kind as in again Integrated number a board. of we bit our September think business US

So number I strategy think of over next years. as a matter the

from We have vertical segment. tailwinds the market

a described despite the States broader give XXXX a Payroll the of business ago, as want Cameron, pandemic. said our number last lost we more the Payments for color? really and to here I As bit and in quarters, minute from little our United you and haven't step do GPI a

Cameron Bready

to fourth with happy Good relative Jeff things. sequentially XXXX. active, really, that would obviously continuing are morning, points those, probably obviously, of K business the I'll a improvement markets the hallmark them our Sure, it with the of to from continue to gives cover. market lot were confidence for vertical the the last to about just of couple growth balance level the is I'll start growth recover. quarter is relative that XXXX, relative think Darrin. highlighted tailwind I positioned through versus markets obviously to start overall XX And that those XX for of of for and markets to a of I to be couple growth well push be up XXXX helped a Merchant vertical vertical experience us which And to both years. a business as to. over

high-teens, just TouchNet Levels to up On performance. AdvancedMD the XX% side, flip I grew and this levels. to digits highlight AdvancedMD, want again It's continue up the which quarter. fantastic nearly produce absolutely XXXX. TouchNet again. in double yet grew XXXX XX% and versus It's over relative to

positioning the up One sales bookings just lastly, well about to consumer new say our market and would consumer I continue of the point would earlier execution discretionary this heavily But a of business And like impacted kind for as of the across the things. that two sort tale an the been out. matter, now In positive. thing, to year. again, stories. overall, more and both And see that business. was on very aggregate remain we a diversity quarter, trends what across of roughly Jeff's exposure have recovering, very other balance just the business, it performance are continuing with I of always is it sets has of strong verticals across new non-discretionary. we XX% the we play of And markets is sales vertical part Merchant the vertical the a couple So highlight that, is,

time, we're continues diversification the business as macro a markets. evolve over is to the how as across obviously, positioned So happy very vertical matter with

Darrin Peller

for That's if don't helpful. quick Paul, mind. Very Okay. really you follow-up

this cadence the it to it of Just raise year? again, what Thanks on the through And what's by gave conviction the time the margin you around? side, guys.

Paul Todd

Jeff Russia yeah, expectation said as as incremental that cadence the offset we tweak Yeah. most for that kind But on us of overall foreign quarters of of some from up for in to the kind years. very the expansion up move kind so to the of on the kind year. prepared his a the points. focused Darrin, I mean, remarks, basis to two now cost side steps And exchange matter, the up to well allows we've some year, of actions that as we kind as kind get as of throughout to margin recently, of last obviously, adverse of margin XXX took, really progresses throughout it been

step quarter. the So again you kind saw up points. another step quarter to third It basis the that us, to us and second have get the in We'll will another in overall up fourth XXX to XX basis of step in points.

Darrin Peller

guys. Okay. Thanks, again,

Jeff Sloan

Thanks, Darrin.

Operator

line next Your El-Assal question Barclays. of from comes the from Ramsey

open. is line Your

Ramsey El-Assal

Hi. headwind? specifically, question, you your April this my that Can Thanks morning. for sort of seeing you're in tailwind portfolio? inflationary pressures on, signs what sort are in seeing whether of And Merchant comment to taking tipping from you're any

Cameron Bready

and we it's Yeah. relatively Cameron. chime-in. March. consistent Jeff say good, Maybe saw I'll pretty April I'll say thus I have ask far been in Ramsey, with I'd start would trends what to and Paul and

the and point pressure, we're putting So I that of say, the short answer inflationary level down not is seeing, consumer behavior pressure slowing in to any the on the your changing overall to spend question a really is, would market.

going that where continue consumers demand and as that there destruction We're that goods seeing not being up to price know, and might ends overall inflation we're obviously, with the that. tick the point, volumes generally, cost obviously yet. that purchasing you So are environment, up, services to reflecting offset inflationary as an of benefit to

April thus is trending, consistent with far. I expectations I think our think,

Ramsey El-Assal

issuer wanted has deeper been more Okay. what A opportunity? How ask you deal as debit? the about TSYS help and forward to I credit about think do an shop. AWS business. opportunity To follow-up an does the I degree a as issuer debit as into debit move the on me, we you of think for traditionally move

Jeff Sloan

an Yeah. Ramsey, it's question. Jeff. It's terrific

with the significant let have just very wins debit elements. announced, because a So we've they me that already start

portfolio. debit this the But of is really win, portfolio. credit to So, if XXXX, remainder the you go in Virgin already piece Money back the the of we've fall that's the coming year converted the

a much us. expect along non-bank as is for lines as the Money, So relationship going with remarks offer think very have environment digital be the to card rails, the significant Virgin mentioned wallet can debit. ACH well to very as where morning, that's I we of which I an And this prepared our win we in

expect to I and up that XX be this next within said the running We morning. months, as

this February, If which largest now you in we across the are issuers what a Europe. announced also of announced debit-centric, of also recently, debit additional CaixaBank, Caixa combine largest and of in that across Europe. with intent We a bunch get that we renewals is one morning, into had in the signed release letter the we before we said really our even among our processors supports expect to remarks all do in statement we morning debit press that again, AWS. with be co-sell also That opportunities you this and prepared with Europe

start just me addresses Ramsey, first Let the that because there, part.

neobanks. a with had about, the and that number and I morning. the active second LOIs FinTech you AWS, think of what this that announced With we On number we prospects part of was pipelines of announced we XX asked startups

the opportunity with in think debit, card is there the Ramsey. side really particularly lines virtual along of I the AWS,

make which anyway. to mentioned one addition in the debit technology will us just more with leading everything of institutions, traditional So providers I

that you be, announced those virtual the into and card-centric, neobanks, about relates AWS September, in pipeline the particular, BACT we relationship tend this to the be, issuance as prospects about If FinTechs, cryptocurrencies Ramsey, we with to the debit-centric that virtual tend and on cards. with morning in it virtual what side, with that, on think the XX plug those virtual card talked in cards plugged into start-ups, to

BACT but just role to but is we've really, financial been months. and side we're announcing very not over last months, the morning honest, expansion AWS on do institutions be of to see significant our really a XX to next the business. months going a traditional XX the play think issuing that So there, the so sort of I of to number serious has debit this

Ramsey El-Assal

Great. so Thank you much.

Jeff Sloan

Thanks,

Operator

the Your next of from of question Kupferberg America. Jason from comes line Bank

is open. line Your

Jason Kupferberg

I think see seasonally, as typically merchant about the quarter-over-quarter about single-digit mean, it morning. thinking mid wanted on just or of you growth the I quarter-over-quarter. would Thanks, of side second know kind quarter, so I maybe start guys. the Good to specifically in we cadence fact about think that we quarter, got if you've impacted year's Omicron going arguably, a QX way. FX, the guess, guess, other of extent. to Russia I bit, that kind I And, this from the you're little growth. second benefit But some to then and go

relatively merchant make the QX, that macro thinking terms assuming calibrated the stays stable. about how rate for in properly you're So are sure quarter-over-quarter our expectations in of growth

Paul Todd

this Yes. Cameron start Paul. I'll Jason, on that. of to want top and add may is

M&A business, the that compares standpoint. low year-over-year the obviously, about from the then an really, of a even basis, of kind Merchant first continues kind comparative last kind for just we, on three easier As or bit little for get then of following, for the double-digit half. of is double-digit a to similar. comp basis. side of currency basis we And the did of the kind of, half on a of, a XX% kind relative there's almost year year-over-year in the XX% around quarter on growth of growth, back kind call talked our tailwind just the comparative kind it And i.e., low a over on the in an constant impact a that's we in us you first quarters. organic into merchant growth how the Fundamentally, But have

base only difference a of is the of And or noise of XX% really, kind double-digit of the start remaining currency. at reported kind just down then comparing Cameron? to from north And XX%, we the low that And constant kind between of so three kind go you this matter. XX% of we're quarters. rate growth what over for kind into

Cameron Bready

well. that it think I covers pretty

the XXXX, quarter, growth we you grew first look in If at XXXX the of we obviously, In in versus cadence second, the XX%. X%. grew

have double-digits double-digit expect expect And quarter range, very full every year. easier Merchant high for QX earlier. business different as of his Paul to grow because to point, watermark we But overall comp. being the So the comp to naturally, we to the obviously, highlighted the obviously, the you're a going be in

Jason Kupferberg

Right. Right.

Okay. That makes sense.

see on comment to the be if the the obviously, potentially that I up to implemented Caixa by end right wanted would just caught nice win. I of Following see this issuer, revenue just based growth XXXX? trending? for you about And how this generally backlog see implementation can progression on issuer Thanks then more the year talk if guys. just you quarterly of

Jeff Sloan

Yeah. Jason, thanks. to Paul start talk little It's about I'll bit Jeff, a I'll the and cadence. ask and

XXXX. Caixa So the of we end the at expect implementation to of begin

the that, the it. of continue in obviously, and So really of we'll impact but XXXX, into XXXX it And given start some will have size that's beyond.

pipeline. of As prepared in we intent doubles sign size our it's largest implementation XXXX we've single since said the effectively remarks, the had our letter of and

other The does US other and remarks, prepared include referenced thing well. by cards bank, mentioned of in acquisition remarks a I of American our XX the call. prepared we the second in North one pipeline the is have hope announce as to to expect million in And we that not my the a Bank which which those implementation I things quarter large

XX million. Just the to be in clear, that's not

the position moment. when as we're in the we a half pipeline, year will that head implementation we in into Paul a back So hope which through about we talk the burn of

is As keeping thereabouts about replenishing that, actually we're it? record and or constant today. the you through it to relatively Paul, it talk level at it as we burn want

Paul Todd

Yeah.

stepped the last expectation up of mid kind did quarter year. kind have the the first revenue But in comparative as this that the in higher mid then the to and for kind of of mid- at landing fourth single-digit single-digit is rate to as third that kind higher to So and ultimately that quarter business, the for and growth our relates said we of we in on to step we step-up second Jason, year-over-year. the it mid call, from on our single-digit quarter

that And well our at referenced the as there. well, the given on mid on some with a last said kind we step-up some comps of single-digit the we I have we as activity have that side easier the exited just that progressive and the as higher things managed call year. So repositioning conversion of the services doing of as of kind year throughout we we're

end run that kind it's up in when rate, step the So growth but year. we not the of the the also expect exit be just it's only to rate progressively year, at we

Jeff Sloan

as just travel called March Paul I'd comments, Yeah. just January, February in saw prepared versus commercial Jason, card, returned. Omicron improvement business versus said add, out obviously, his which waned what and February, Paul in that corporate

that expect to on. Visa/Mastercard be as much like improving goes We XXXX

March we in do the card, coming or two headwind. So so, like in years a tailwinds February kind was really addition last to until up see pipeline, the which and commercial for Jason, of record implementation

Jason Kupferberg

Right, right.

remarks. for Well, thanks the Okay.

Jeff Sloan

much. very Thanks

Operator

Your line question Dave next of Koning from comes the from Baird.

line open. Your is

Dave Koning

little actually your price, job. can seems yield Nice in guys. by out Like, Hey, just than with quarters? and to could if maybe I up yield better interchange adjustments, maybe merchant. like Yeah. tick place just just software see maybe into we pricing faster the start to And we're coming maybe environment. It own start ability getting a growing

Cameron Bready

Look, Dave. your is right. overall Yeah, thesis think I

yield versus environment as is a yield. we XXXX think the nice Obviously, growth for it. seeing vertical tailwind a returning markets constructive are relatively I to to levels probably best way characterize

some of have but well. you You is of do that kind Most as are interchange called out benefits as we know, bundled the our flowing pricing interchange through. pricing, plus,

overall merchant down business the cost overall. generally good as that's and a our customers, importantly, More thing the generally tailwind acceptance for of a goes for

we're own businesses as one. we're positive And number costs where say, seeing our technology the two, obviously, a an the mix seeing shift would things: of I environment an a enablement, all inflation, for our couple number increasing. is That's obviously, environment of that towards point are discussion given So, fact acceptance point specific there as to more well. one, software, more continues business

think pricing I sort is positioned overall the the we good feel about for of balance So, how the pretty environment year. of

Dave Koning

really Great, just level. follow-up, a thanks. a just And high maybe

anything, like, intact? if greatly long EPS kind as mean you high-teens time are or as is as that goes about things as over feels about is me that April, like It of I better term good reflect fair the quarter growth. growth we in talked to high-teens of ever, kind on this on, You've feel time. good as probably

Jeff Sloan

it's think -- I Dave, Yeah. Jeff.

guidance to the Paul ask in and I'll XX% raised to right, it's the We high-teens exactly comment. think I September. to cycle

reaffirmed today this for Here, different macro environment. targets year. worse, we that in are a those much are really, our just We

I very is So, business shown is think we've the what resilient.

the a which vertical during Cameron recovery Darrin bit was As Headwind. during as vertical about, the the of a business, asked recovery, described, markets business markets the

tailwind. a it's Now

balanced of So want seen you've I in had mentioned, period you last seen over think a as over Cameron almost business Paul, couple good to very changes the maintain months time. make…? macro we're environment confident that cycle-wide somewhat a with feel the that in to independent targets of a very the we've the place, of to our we've

Paul Todd

questions, tailwinds we're doing we've things Certainly, vertical say relative this we pipeline and just coming kind size, as an stronger us our the got I that is we've it talked on of the couple the couple is cost guidance picture. gives just on raising good the things kind of in earlier, margin hit EPS the that, markets improving several tailwind of the the of this of is you that additive we're about would growth I business. commented side, we've a And Jeff between morning really with on year commented confidence back really then, just kind that being side dynamic. the last about progressively as as side, just morning. that Yes. talked long seeing merchant of for then, time we've additive kind and yeah, cycle on the guide this a what picture issuing and quarters as growth and in of pipeline in even to And that had biggest in shape, this

Dave Koning

guys, Thanks Yeah. job. great

Jeff Sloan

Dave. Thanks,

Paul Todd

Thanks, Dave.

Operator

Mihalos comes question George of Cowen. line from next from the Your

Your line open. is

George Mihalos

Great. back kind commercial. that Paul, did exactly you guess Good the How some equation. on of first then to the handy? commentary circle the I benchmark, to kick contribute the to just off, kind quarter? questions. quarter much did a if thank perform guys. first have on Jeff's in for issuer to things to of here to that my of relative And maybe happen how Issuer MineralTree And clarification you Solutions just taking side in morning, XXXX

Paul Todd

Yes.

on roughly were MineralTree. as impact of MineralTree, basis relates So it we to ex flat a the constant currency

to the think impact roughly so about the way obviously, X.X% kind year, full comes think that the adverse right growth, being to the FX play. at into additional roughly it that's although about for kind the And MineralTree some got right of of and we've way

that look as non-recurring single-digit transactional when kind is what progressive a file Jeff or we of from kind at mid So that benefit the reached exceeding look to card. that and the normalized with certainly, sequential. kind kind solidly in And that relates being of accounts kind solidly it rate about back the single-digit of to there still together, relates X% so that high haven't But pulls saw as and commercial February And we ex relates that on and We mid as growth commercial services rate. levels our commercial were to at you growth growth business kind in to down. roughly kind in our said, did, at rate it sit card, managed overall the But overall rate And the of putting step-up we revenue in to pleased so card were and levels. MineralTree. then XXXX, or we're as of segment, of on of the growth almost just XXXX picture as XXXX it of the it growth of March and business particularly some kind of between the all mid it for as still not it those quarter. relates of

George Mihalos

been us with better, that to you but what if bit. curious a how Thank international Can the appreciate gears a you're to you a I think conversation, side, from is lot maybe I my merchant just progressive? geographies last about just was have great. you. talk shifting had on of lagging, those sort seeing That's better, give then Europe looking mean of little color. I APAC guys international those And Okay. can I sense

Cameron Bready

I'll jump Cameron. there. Yes. in George, it's

of of growth range. recovery overall, right. But acquired to the the in a the into of we've it we the have a XX% you latter as was little quarter part continues range Obviously, the spot Europe a from Bankia the think high bright in was standpoint I footprint. organically, that Obviously, across bit growth XX% European the got from mostly that rate in a kind tailwind was XXXX. well progress

it a U.K. in really along joint positive, positive, very levels, Bank As at spot, continues be is quarter. with Erste remains is venture businesses our to bright attractive two rates. XXXX to which Central very relates Those the good growing and the strong had Spain Europe. are with

the we've across markets to those the extensive digitization degree. accelerate, payments As obviously, pretty seen a two pandemic of

again, standpoint, the think, I performance I progress. So very a a those have recovery overall they businesses, strong from out, to as position Europe, think, continues year stand in

in the bit and to completely in the in the China particular. first actually Asia a went Greater backwards China quarter, little attributable lockdowns markets, that's in

we see Asia a did So headwind be to growth.

the X% Asia grew in overall quarter. about

a of Some currency obviously that was negative environment.

And some of to it lockdowns. obviously was attributable the

bit region. region. reopens, across But as into to first expect we quarter a the the to continued growth latter that to for it of we move quarter more As anticipation into get second in absorb market and part double-digit again rate, back the our of headwind given sort of hopefully the the QX, is of impacts did little the have obviously, COVID which we a

George Mihalos

Cameron. Thank you,

Cameron Bready

George. Thanks

Operator

from line from Chiodo comes Suisse. question next Timothy Credit Your the of

open. is line Your

Timothy Chiodo

Global bit X,XXX I Payments in recently, wanted so Thanks software business. a on for I to question. Integrated, you Great. partners. disclosed my partner the and little roughly believe dig in past pretty the taking

year? taking. to want around follow-up where the on been the doing is And across more then, you've services and those. Thanks are of services adding the it's online mix number little how in-store? lot. from, maybe of average has types partners grown a financial about many then, where come of And they're talk a that Just those and bit from, many penetration embedded per the additional How

Cameron Bready

I'll they'd Tim, other Jeff and Paul start. and comments to like Yeah. I'll to jump in ask Cameron any provide. its And with

been PayPros. growing organic So rate at in obviously, since through then of obviously, has kind Global business time, Payments if of APT that an you rate. in just mid-to-high-teens generally acquisitions and look the of back our combination then Integrated And grew the

years that now, base you think focused partners we on exist today, about course, And through combination as organic that plus come GPI. of partners Merchant then, the in largely well, that was of their a merged business portion X.X business when lastly, with of about combine if into it's had and TSYS growth. ago So we that a those, TSYS of integrated

say, the the coming largely we've So, done, you look strong I at trends course would over from of acquisitions if partners, coupled that's mix very time. growth of with the organic

they additional we partners say there us about add would added three aggregate, a opportunity XXX,XXX that are to mid larger estimate to pinpoint partners, it you hard year you a the As many depends can it relates because as first on to of to size the integrated targeting. give partners in we're new business. quarter, portfolio. to dozen. bring able about we to tell an And I In in for be it's largely our add a I how

wins sizable XXX,XXX-mids today. really or that three were are ones in those about really So given that, has it about and attractive that excited business

population new we for can is go target obviously a XXX,XXX us. adding So of good and result very a

particularly that to XX any in on So partners. business into the low, XX well year, partner very given add is Attrition we'll in side.

into a the obviously obviously given a our business ability growth continue And period partner penetration of then, our So we new within to see outlook longer better portfolio. the levels favorable for get to partners over add base-of-mids. time, in

a the in remarks, unleashing the that big two of sales as our as As really U.S. geared way our go-to-market relationship-led customer doing we and matter and strategy together. now bring GPI channels part Jeff his on around A systematic of payments combined base opportunities GPI have in seamless our we highlighted prepared really that more a business. is partner professionals

course to our of is base key underlying speak. more to going launched element time payments the GPI we products, have from second to our matter in business cross-sell of the that businesses portfolios. as The business two in so capabilities first we've a the already obviously, over into lending that improve also We're And U.S. into cross-sell doing that ability to those add our quarter. into

the which bringing go-to-market commerce services, So into kind motion channels enablement question, value-added of by to capability going ability the channels. is embed that to overall last U.S. a business as unleash we as have GPI our to more into more smoother together, part your able by of really those two be we're the solutions enhanced is portfolio, more the across environment obviously slightly merging

Timothy Chiodo

appreciate lot. Cameron, I GPI. the Thanks that Great, a on really update

Cameron Bready

Absolutely.

Paul Todd

Thanks, Cameron.

Operator

from Your line comes of the Williams from Jefferies. Trevor next question

Your line is open.

Trevor Williams

puts Great. the and full to I guide. to walked Paul, Thanks. year Good just you the morning. gave clarify on want relative first when it last you takes through quarter.

midpoint Can sort built just the end, progressive remind macro in track the Thanks. guidance? the the aside macro on assumptions the like expecting still you you And improvement what have you're the the change throughout Just what spending from if of year? misheard correct to I the the there rest in high to any is to me it year? built trajectory there consumer of low and is us sounds for of end it, impact, for FX

Paul Todd

up kind relates build obviously, to on. building as the on we how what Yes. of depending that the our customers and we're we're it we're kind our of -- so of I seeing based macro for mean, what kind forecasting each Trevor, into on segment, in of and one fundamental businesses, what

to kind to model. of build back don't said, And we've as a kind more we said as recovery, said, kind that did, changed state. we of of way of at. kind get that has that nothing of with we kind and being of rationale referenced, into we normalized the a always things kind kind protection a you do, progressive we with assume continuing With last time, So, looked of the

our So, that on of we overall we're our embeds of kind from we forecasting just all kind standpoint. of kind of expecting normalized businesses, all the in, based across an of way do what have

It's So, provide say, some of more do pendulum that of kind built being there's just been move kind as that normalcy. of growth along anything that with and I to kind of there. wouldn't we for return kind And in. that said, normalized we've incremental non-protection

Trevor Williams

win, the just starting I and pricing some of you market was narrative Caixa particularly I been momentum business. clearly, a curious Okay. big is, lot the more just some bit your Perfect. on in guys the in pricing. But then have the aggressive get the of on around US, competitive with a in little Issuer, there's competitors where No, that's to really pipeline and as just implementation in mean, US, the helpful. on the a And environment, follow-up,

updated competitive Thanks. how to the of repositioning your the So that of I was how how get seen fits on with and the couple the environment of AWS just over the last evolve kind partnership, market curious there into view in the the US years. business you've

Jeff Sloan

the Yes. competitive. that I environment would issuer. It's in been always changed very Trevor, Jeff. really competitive say hasn't

to thing has the one this seen is lead with think AWS, with and in the really we've ability more changed technology, really that I us. is recently, partnership particularly which our unique to

But the And of we landscape than any different two years the our to seeing. of our we unit as we're what So, collaboration certainly unusual when I technology, ago, things our to honest. merger to is or kind I to bit was be think three that's don't relates a it think of with quality it have did AWS. now particularly do table, service, bring the

decision that, If looked that's as And came of in the we at one important reasons is of because that touchstone view and you them. they our go they think cloud, at strategic for were said the we public as any. went RFPs point where I AWS, a they looked good at the to they is an think believe this to in selected a back through what full February, we looked they think technology, and that I CaixaBank we us

file another. I think a really pipeline the as implementation XX record million is accounts on

guide kind So, pricing our progressively throughout at of at think the I business, think if has been the be Paul to we'll you look as to you shifted mode technology described over that toward XX tells XX I look business, of I pretty that in leadership. that which has about what where I think you in months if as next the increasing need I you really environment think end-to-end competition, quarter, trajectory, of kind know which a think well the what good is

And have think industry. I So being, technology. what Trevor, new, really is in with is foremost, and our if scale we it's first anything unmatched at

Trevor Williams

Jeff. That’s great. Thanks,

Operator

Your question from Ashwin the final Citi. of Shirvaikar line comes from

is Your line open.

Ashwin Shirvaikar

Thanks for wondering Cameron, year, Jeff, would if of add question, Hey, your talk what expectations hear to the from about card you if Paul. good was through specifically the taking commercial course to you. I you normalization the talk could that? to could

Paul Todd

this Well, Paul. is Yes. Ashwin,

we recovery or a obviously, We digit. kind into, talked have a kind the on built higher normalized about the that mid-single kind side more of guide the of commercial certainly of of card progressive

growth. And levels. so the of call a card that [Technical certainly, it would this picture, maybe earlier, we kind XXXX And improving side, with not Difficulty] point built commented maybe will, still, kind I is to even additional on still as commercial I in. the if of are of you back

far And how obviously, particularly, there kind kind tailwind about, had we aggressively volumes some back I'm commercial fourth into just to kind What to is year. we level. this we XXXX could be things still of And into but though, of quarter versus relative the saw We'll so that get if core that progress. seen incremental pleased to move of kind card, Because as we've the in back. see the we in so have XXXX March some what particularly pullback and we we February, fourth come part have said, seen of it obviously, as I picture. latter of in quarter, seen offer XXXX,

to coming But Ashwin. seeing not to it, yet that are roughly we way right So that about think albeit level. back, be it the would XXXX

Ashwin Shirvaikar

some a interest have absorbing margins. different just it. where if you Got expense? offset, but it. then clarification you're higher basically And is missed a the The EPS I factors, of through could items. walk revenues lot that on Got with unchanged Or of might completely that. below-the-line

Paul Todd

Yes.

the prepared environment up kind the on did remarks, cost. kind of interest with tweak relative increases. In of the I we're the we to in commented So rate that

And in. so that's baked

a cost that absorbing doing in we're So standpoint. we're from what

of impact, of still the higher what our So the in in we're that's Russian of some prepared think, the I mean, yes, this we're pleased FX, adverse and guide kind absorbing interest squarely incremental remarks, kind EPS with commented, costs kind I range. we staying

Ashwin Shirvaikar

Got it. Okay. you. Thank

Jeff Sloan

behalf us everyone, thanks, Ashwin. of On joining Well, thanks, for this Global Payments, morning.

Operator

concludes you today's your Thank for conference This participation. call.

disconnect. may You now

Global Payments (GPN) 2 May 222022 Q1 Earnings call transcript