- Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Global Payments Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will open the line for question-and-answer session. [Operator Instructions] As a reminder, today's call 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 third 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

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

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

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

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

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

call the over Now I'll Jeff. to turn

Jeff Sloan

the our across a quarter, the record delivered excluding and execution end the in dispositions, resiliency basis and guidance constant market on of Thanks, our highlighting cycles. model, cycle of our higher XXXX business Winnie. third consistency consistent September with currency We results of

EVO have strategic received achieving all these the regulatory results United our while as NetSpend's consistent clearance and business. business suggests into revenue And sequential consumer continued a neutral domestic, Payments, Importantly, Internal undertook took we fixed contemplated for and far We of billion to of we each performance the Hart-Scott-Rodino on a issuer concerns, foreign adverse solid It's certainly much core macroeconomic quarter, exchange broadly would change versus double-digit our transaction did possible require substantial at making and but improvement initiatives. ongoing foreign fourth to States for filings income in October with August our with current on finance that merchant attractive progress divestiture continuing that could worse, acquisition that extension our business see produce concurrent basis. revolving jurisdictions, in our growth, thus successful facility. financing and the again the we made and expectations for given metrics enhancement August do environment. rates, by long-term delivered an steps We August of September our and a we offering things the change in transactions. Notably, $X.X not early are EVO in July. credit versus the and now

$X.X our Silver transactions. with billion completed also We strategic Lake and associated investment

that of partner, Silver We Joe our Osnoss senior and to Lake welcome proud keep, the we of Board are we Company from Directors.

following after continued Our year-end a the an robust acceleration remains QX. growth into quarter issuer business track for on into acceleration core third

complex most remainder our many of to the and the institutions well speak with globally sophisticated into this relationships decade. Our of competitiveness

announcement commercial go-live million further top growth a which early XX issuer after the a United record takeaway post-merger with than pipeline the now XX our of the future. providing of was the of better competitive accounts, trajectory Our example confidence our into at in recent merger. States, conversion well of What stands banks one our

month, this began earlier and we the small on We accounts and are TSX. new servicing onboarding business that consumer commercial bank's delighted

commercial consumer partner existing to next prepared of accounts conversion this expect the its for be We year. early and

This new customer quarter, partner, make well existing preferred converted we portfolios retail as acquired of and we a AWS, technologies. as both continue with takeaways. for U.S.-based solutions partner, large an portfolio a were also as the by commercial technology another distribution progress bank unique And competitive financial issuer large consumer cutting-edge institution great which to and our for

company be to in who issuer seven We extensive RFP have achieved partner will platform reached the live, with cloud in an across were as a all institutions an process. travel global LOI which we that through have are solutions of a a chose for and after fintech Prime announce Once pleased its Europe. with leading an our process customer RFP TSYS on nearly letters U.K. of intent currently AWS EU and competitive takeaway. the competitive this first We worldwide, technology

as corporate volumes expanding XXXX on in our double our our of accounts our At Traditional fourth million newest XX%, pay Another existing travel partnerships. digits our last future and of September, transactions, grew the by to increased by providing QX, aligning our of seven transaction pillar with conference highlighting ongoing BXB trends of competitive have led opportunities. strategy recent markets. announced and gone five card recovery file strategy, quarter, since And the market in long-lasting dividends. growth LOIs, of beginning the takeaways, continues we to as sequentially target customers winners addressable $XX commercial this by which with further contract growth driven including account investor increased cross-border strength meaningfully share

part successfully BXB MineralTree's earlier this after this with segment assets now business capabilities are aligning year. this of of As we as a Netspend's quarter, issuer our managing

technology Santander footprint, we seeing the which on technologies BXB vast and market-leading with Bolt] institutions, are rails. to takeaway. across management our access agreement banks and account multiyear in expense portfolio, in analytics, reaching letter commercial card to leading commercial commercial Recent as with BXB services highlights We specialty virtual the centered of delighted payroll Extend, card [Even world's to are and the a includes with and and integrated massive partnership include United virtual with a solutions, signing competitive partnerships States fintech with momentum globally fintechs distribution commercial a data enable financial payable card solutions providing nonbank intent card a

have virtual also pleased and financial card services to leading institutions. are signed AP services with new We wins in U.S. two

with capabilities our capabilities. the Ramp to our Visa Acumatica branded with most achieved solutions, to And all, on in virtual with also We're widely the generating software Sage. number cards and support signing spend of environments Canada, space. its of month date; of receivable Microsoft, cross-sell a BXB MineralTree card Additionally, and to automation relationship pleased platform, augmenting proprietary September expense enhanced to management milestones, have deal accounts a recently including EVO's this is marquee the record-breaking including before in fintech ERP referral the leading one Bimbo bookings with their its integrations file extensive U.S. used fabric some agreement paid of payables in market course, including in card largest and our a executing of to Oracle, through BXB and the SAP, Grupo

for of extensive Parts Payments Global operations will are Google Cloud, that Company transactions pleased Moving with Google solutions to network. States. Auto the have Genuine BXB and Leveraging for NAPA in NAPA domestic cloud-based partnership the payment across to Parts with streamline partnered to its we Solutions, combined announce power Commerce distribution innovative deliver Merchant United we the

in expand We U.S. to are ramp last continue customer, success expect market Volumes in the our in Google year. quarter. America we Asia the the acquiring throughout to late our building now initial with North following Google relationship launch a with this as continue of Pacific and

We our partnership to with also anticipate Google Europe year. bringing next

in Business our Google Run grow to We by merchants on launch we the to all the help connecting services X markets Additionally, third My Grow well business digital to of for our track yet we this again our e-comm ahead have year. as remain additional omni-channel solid quarter, Google delivered and of platform done faster quarter. Phase growth and

unique course, to acquisition addressable markets and the to virtual peers. will new the seamlessly into enhance Germany EVO continue and pending more our markets. our physical of ability like our And benefit We Poland than of worlds geographies and in from entry blend target

an Europe luxury partnership Gucci, for uniform corporate division to to with solution services a experience of multinational most and have We reached seamless and carrying into e-commerce sophisticated deliver agreement one beyond for a Pacific, we Asia the excited are expand acceptance our French will virtually retail recently where of brands.

sports continues Carolina vertical of channel of and areas, subsidies e-commerce markets to with the markets to social in excited currently year-end. world's partnership live largest our Citi Xenial this in with of In solutions and to as in robust. improvement post the remains and pipeline and Together, one UCP one recently and And and quarter Finland, Panthers to Spain, treasury saw solid School with on expected, Our continue top and the lapsing Jets. and recently signings signed expect our the we we entertainment live substantial go trade the customers, portfolio, Belgium, wins France this lunches. announce Winnipeg business are targeting Norway growth the are business prior via school new in delivered Sweden of went top pandemic and media return platforms significant we Also, to the Denmark, Italy, our Citi's a in Solutions world's platforms. with in Citi

in our new vertical Lastly, for real digital continue our see with payments solutions. we growth market our estate driving flexible strong double-digit Zego, product significant demand to business,

launched with realizing signings in to already Kingdom partnership. that announce I'm Lastly, this delighted we United lead relationship flow the referral Virgin and merchant and Money this new are quarter from strong our have

new the remain of next Virgin did quarter said Money's exactly would early We on we to do we track what also in proposition launch We XXXX. year. third pay

positioned record continued and year-end. Our businesses are well of their into track heading growth extraordinary core

are Our the with expectations. partnerships line investments right our new strategic in plan tracking are our and

year. are heading are the quarter in position the Josh? final into We be to the fortunate of that we in very

Josh Whipple

Jeff. Thanks,

expectations We are strong macro with the quarter, pleased ongoing third with consistent was performance our despite concerns. our in which financial

$X.XX an a constant from delivered currency year we basis. revenue adjusted net prior of of Specifically, X% billion, increase on the

share QX. on Excluding from the Adjusted net NetSpend the from the exit impact XX.X%. of operating adjusted Russia. This of of $X.XX which revenue performance business billion segment, the sale, of which an impact of an per look margin a delivered basis. operating adjusted quarter closer XX% of XX on was the in improved includes prior technology-enabled $X.XX, on We improvement execution our currency currency revenue of Merchant XX%, basis quarter, a basis, for X% increase performance our our basis the this consumer are XXX and The constant $X.XX a the XX% currency and approximately result record XX% adjusted the increase highlights basis. assets segment, held outstanding constant exchange a Russia year as for at of an for Russia net absorbing impact points a exit constant a Taking earnings by our foreign an differentiated of strategy. year-on-year billion, adjusted on basis classified excluding increase net margin achieved neutral was during of of Solutions third a to points

channel business on solutions, And in of this our another Payments top combined well which which Our growth and as XXXX, strong over our quarter growth. POS QX strong we in mid-teens and delivered mid-teens XX% HCM payroll XX% again grew which to nearly momentum the led business, software U.S. quarter. as in quarter integrated Payroll see continue by of reported grew our

growth remain continued the and School exchange of ongoing gain Solutions and in businesses omni-channel the currency market our vertical in COVID-related the currency the trends continue the prior bookings Zego, delivered on business. share. And solid and U.S., our our headwinds backdrop relatively adverse we strength demand while our parts from by restrictions basis remains across led business a e-commerce we Outside Asia omni-channel worldwide portfolio. growth see for Our compared quarter Pacific, again constant foreign strong and despite solutions as stable, across to macro this solutions also double-digit overall to to teens achieved year, in rates continue

shifting faster-growth strong seeing demand we're coming see Asia Central customer geographies, outside Southeast of U.S. needs to in continue revenue well are as Europe and that the improvement out we our differentiated Specifically, including with key Spain, the aligned capabilities for pandemic. significant

both from Solutions, is periods. basis quarter X% in Netspend's BXB to Turning million in on revenue, constant including improvement Issuer which currency net of delivered $XXX business a a third XXXX, adjusted the this assets

Excluding the from core quarter as Solutions accelerated impact basis of with our BXB, growth was second and points Issuer the long-term consistent we XX targets anticipated.

with consistent and account and high file quarter transaction grew Our performance. was on the single revenue second digits

transactions card points focus year, XX%, XXX also and commercial basis the in with XX.X% growth from period. on by fueled by increased mentioned, of Jeff adjusted operating the growth efficiencies Issuer accelerating prior As our the improving increased throughout driving margin business. our

our signed contract We issuer are new two that team the during pleased one partners quarter. and extension

remains Jeff for expenditures. quarter collaboration we for this proof our markets adjusted we in standpoint, as opportunities. a our with financial $XXX the million and to of a remain continue investing we continue serves we at model, wisdom outstanding flow million and of results new capital growing good delivered and see also significant strategy mentioned, to of quarter the flexibility. our Additionally, cross-sell cash merchant in while AWS. point all as we This includes cash of record pipeline after businesses in $XXX From resiliency the as issuer delivered activity free flow of sales the have list levels across our Overall, clients opportunities

We capital the for be roughly continue expenditures full to expect million $XXX year. to

we the our allocation front, during period. shares of for XXX On million repurchased capital million X.X the approximately

unsecured completed Our extremely this ended worth remains years. made below on balance rates are roughly average priorities the substantial strategic financing we billion this including $X.X and August, on rates. basis. quarter, notes with of It's healthy, and related sheet leverage X.Xx successfully debt market achieved in noting initiatives. of In progress of the billion duration of and that a net We XX.X an September yield senior current a liquidity with blended our we a offering $X.X offering well X.X%

$X.X the the notes convertible a in with X% senior Silver coupon. of investment billion completed form Lake strategic placed also privately We with

$XXX As the a transaction share. we executed instruments, approximately per significantly customary effective is that convertible with cap call premium raised conversion to

Silver to have We as a are new delighted Lake partner.

our consists revolving the And capital billion pay financial the our We currently. $X.XX provides offerings Our and loan outstanding revolving structure closed facility credit on existing proceeds XXX% credit ample from down us with term of fixed these new we used simultaneously balance to that a facility. flexibility. rates

continue X.Xx. Following NetSpend by our we to the anticipate EVO and net be leverage the of completion to the which quarter, transactions, we closing end of expect consumer first the approximately

We return while to current ratings. year-end maintaining current leverage XXXX calendar by to levels our expect investment-grade

from for outlook we of August our for the remain call. remainder XXXX, trends to the Turning the the expectations seeing, given are our underlying core business unchanged

for points basis and our XXXX. to of consumer of expect in billion XX% growth full point incremental relative FX to Including for outlook to held growth basis, the to expect to year reported adjusted dispositions. net now We adjusted foreign currency On August. net a XXXX XXX excluding of a be report or provided to range continue to currency revenue these expect headwind the we we revenue a XX% business, constant NetSpend's impact headwinds, reclassification sale an exit assets Russia revenue of billion in roughly $X.X net we the over incremental of the $X.X for XXXX, to basis XXX adjusted

to as outlook increasing basis basis the for margin full to our prior up adjusted compared for to expectations up points We expansion XXX operating to year XXX points. are our of

QX earnings we Lastly, an expect adjusted roughly approximately basis constant consistent expect by to in to of to over to currency growth XX% increase call from $X.XX be $X.XX continue for impact with the $X.XX our in to year, August. now per XXXX. a FX $X.XX, We on earnings additional XX% share an outlook, full of per reflecting range prior adjusted share headwinds early of our a

sheer the summary, pleased of quarter our are range we earnings Russia per to expect we result, range in to currency at foreign exit now albeit very end a from magnitude of are given the impacts performance. and the $X.XX absorbing. report of we share third $X.XX, In a the As with low adjusted our

in to merchant we BXB with future. and for in excel, And segment well segment, Jeff. our pipeline, focus positioned the by over remain the Together underlying modernization led Our I'll enhanced our that, of continues with the strong. issuer to call the efforts back strategy technology-enabled trends record successes turn and business are our

Jeff Sloan

in third as have performance record Thanks, Josh. the healthy. quarter delivered Underlying remain we across throughout XXXX. We broadly businesses fundamentals again

significant in assets and back concerns around, of we third the do that implementation pipelines strategic see and now enjoy the track and financial of the macroeconomic broad-based operating significant in disposition progress not financial have have the to we on typical pandemic, with consumer fortune continue to are The noise, bookings make and initiatives evidence And remain trends we to experienced expectations. NetSpend's we our in to-date of acquisition we currently. Despite While the softness quarter. the or of that with dissipation the squarely our levels. on good background EVO the

capital early was debt Our executed. August timed in raise well and

Lake enhanced and serve balance transformative cycle. and off Silver strategy Merchant closing with terrific These remains to early BXB, our start. in XX% to Issuer with and the our a our confidence roughly including partnership XX%. new XXXX, our with represent Solutions Our strong, deals expected revenue, sheet will us increased of of provide in these targets is transactions will Upon comprising net over growth margin the approximately Solutions, accelerate adjusted

Halloween, gain more and our each share geared We with corporate with multiple enhanced continue customers simpler levers model, toward in over the everyone. to have segment a Winnie? margin to cycle prospects. Happy growth

Winnie Smith

Thanks, Jeff.

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

Operator

with Wolfe question Please Darrin first with proceed question. comes of Our Instructions] Research. [Operator line Peller from your the

Darrin Peller

little growing you're was in on think parts start we the I it Visa line the When into or dive merchant Maybe than better we just side. the volume. a XX% actually drivers, bit data, and off moving the

what's in what's more strength a the us just And minds so on if you your that. color could driving sustainable about bit little give and

doing maybe to just you behavior changes. you segment? reiterate types of seeing any beyond macro you're then seeing structurally want versus Moving are in minute, behavioral a for if not actually what's consumer just if but that well really any And -- if -- or not again,

Cameron Bready

Cameron, they'd jump I'll color ask It's in, and add I'll Jeff any like to. and to Josh

So think kind And good our data, is think, than you gratifying data, that strength and to we're peers, across particular, is very to particularly, the propping our and without rebound business, me up the for merchant look is your I volume seeing is point, would in I significant which, I the networks benefit of our say travel the most stability sort across of that's numbers what's what when of at better in if performance, look our you the I sectors. of volume other people. think

I widely we not As we've talked really good as many participate about recovery in the know many, entertainment. that, result of seeing in coming growth of kind channels, don't really the which is volume and And of driving those a we're across times, travel strength portion of a the sector.

with pleased point the exposed the segment really the really volume we're not is notwithstanding market make. first of growth produce, I I'm to the would fact we're to So able that

people XX-plus the be space. The perspective. we more goods that others Consumers our in the how I comment are experiences. say, of And would to last services think, marketplace. more generally align away quite from question, exposure positioned say experiences. pandemic from I'd that overall and I'd was diversity not time more have second what thing markets Hospitality end seeing, that kind portfolio is continues with in have and and retail trend. pivoted our on it largely good as the in sort your are, The is seeing across to on volume the as as good vertical portfolio our macro we're trends Obviously, seeing we to during I are of focused given an well of thing across and think you're I

quarters and move sustainable in I seen strength the think that as we is time. we feel we've forward stability last pretty growth confident the over volume several that and

broadly. operating in to we of So, normal saw make QX and a I merchant I'll And operating reflect the expectations normal segment more is for now you that if the kind last environment. before kind the results sorry, feel we're just. of turn comment, as in over it And Jeff,

well. the dealing We pockets weakness are around with as of globe still

in relates the to periodic China of U.K., portion markets cetera, policy. So with I'm Obviously, desire again of travel fact coved it sort a and seeing a business. lockdowns have Asia Pacific. as zero still their we're small that the continue we're relatively notwithstanding COVID-related impacts And Greater seeing to macro of et overall of touch in our with a course, pleased impact restrictions, although the to performance, the struggle

on we've look with across I overall think growth from the obviously, not But at it's And has weighed sort macro slightly a as and overall notice aggregate, there. again, impacts well. of in U.K. seen that of certainly, very hard in volume to if variety the the pleased the factors performance everything revenue performance stemming you the portfolio.

Jeff Sloan

Yes. the add Darrin, same just Cameron We to the it's on thing said. see I'd Jeff. Assure what business.

issuer ex the So consistent you of currency the quarter expected. versus core what if and kind X.X% report growth and assets acceleration we today, BXB at second the constant with look

You've growth in services. on transaction growth seen and pretty and file value-added authorizations in accounts steady

had we quarter. XX think million in accounts the I

tracking side, as post cross-border only side, really the does the the We same the month, slide accounts also on said quarter issuing commercial record transactionally pipeline side. for in metrics XX% We're is a implementation I'd third million merchant not was include show, a XX as Caixa. Of cards, in have good thing cards. September mentioned, that the was as month up on say on commercial a the merger. we in The Cameron

merchant. do and that So Cameron the described I where consistently think exposure, tracking it's networks with what very in we

Darrin Peller

bridge then at this the quarter But were think And maybe, guys itself, FX look said guidance, there the for to core you the adjustments on, also we terms outlook embedded. talking out, basis be to I points But other when saying I'm if there's guess back. for wrong, year bit just then you're you in maybe the more you're are. but when side. XXX a what is again obviously, that XXX looking and FX the to little added follow-up what financing correct financial if on results quick Josh, might could reiterate try there's one or be any some Just you I figure clear. just was, going -- of you adjustments adjusted, any that me reported about at

Josh Whipple

Yes, absolutely, Darren. Thanks,

So I in business we remarks, answers XX% the FX net earnings total revenue the my basis is points XX% would as XX%. Constant XX% what of growth exactly to is, our headwinds. I said said say then adjusted And prepared year for of a XXX expectation and of currency currency core Constant remains to for same. adjusted of your. the

If given question. that XX, in press that's components you can hopefully, go the you out. Schedule break release, and helpful But look ahead where of and your our answers each we've

Operator

you. Thank

Our next with Jason comes Bank the question Please of Kupferberg your from question. line proceed of America. with

Jason Kupferberg

as close we to the of both and divestiture just acquisition the in to question with QX. ahead I think on start pending of a those wanted

the said synergies from comment based in you to any understand quarter would full offset here But to just NetSpend dilution I I'm just rate or run that not? EVO trying is XXXX, last achieved at clarify, earnings think on I wanted being EVO? there's earnings whether that consumer. net lost the

Darrin Peller

Yes. No, thanks.

they together, an offsetting NetSpend they're -- on So as think timing, EVO it's where asset about swap much and one pretty depending you another.

from dilution overall neutral an would accretion that ahead and perspective. we So expect go be to

Cameron Bready

full are transaction They're rate at as commentary thing neutral. and The quarter synergies, only run last an other each that is correct. we provided add I'd dilution the NetSpend Jason, EVO offset to do roughly matter. accretion you transaction

EVO XXXX. more it's color part timing too So rate provide obviously that run assume synergies does line to have the say sight comment and obviously early on on we of we early the the as of I'd close. it year, into to we really better the on get transaction. get We'll full of

better we the timing point, feel business, of But potential, it's of XXXX. better business trajectory to of consumer for the and close term long-term of earnings out for As imagine, will of we growth a about with when the we contributor like you drive think obviously time a business revenue transactions margin a individual better rate if positioning better can to the the of the run over synergies, for get strong business each good profile, kind the lack the very EVO, of for long of a Josh's swapping run. outlook full kind

Jason Kupferberg

just guidance And Understood. this then your each think cycle margin quarter I you've a to well that's raised guidance. follow-up, as Okay. steadily year, level above a

I drivers you little from but underlying to growth issuer? gotten make to a just expectations a benefit more think that the you've exiting quick little bit on understand I the point Russia, bit just you driving wanted a outperformance? if of then for can would comment are QX And

Jeff Sloan

and Josh it's Jason, to as start, I'll comment Cameron Yes, well.

but at fourth the the quarter, going on know the XX% the growth. the acceleration margin expect end the up, you in guide, will see And you segment, we model content revenue X.X% XX% the issuer of things the all margins constructed, we merchant we volume at the come sell, of think more high We When more look things X%. in in growth, incremental the the I So those today I increase know in performance. core at software how day. but up look our very fundamental an driver of quarter. second is expanded the at is Josh versus those the better segment, do, a you underlying transactions announced transactional you

bit the operating a quarter margin quarter. into the and little the about fourth year guidance. the really what's Company So, Josh, the as performance expanded driving fundamental I to fourth say throughout would is we talk head the you want

Josh Whipple

Yes, absolutely.

ago. the growth of throughout regard XQ issuer. the based Jeff XQ, business, look, And that mentioned to think September, that was what regard nice to internal XX in really say to first saw then that And are would the moment there. consistent a quarter, suggest just we issuer what I metrics on So with the would we're we and now obviously, points is question seeing had XQ, with to basis I the a we've through things in of year, which saw seen the XQ month trend

the the very, we quarter. those the continue issuer, an feel into we very fourth good So, and of trends with trends expect about to underlying see business

Cameron Bready

comment, cetera, And in us Jason, that reiterating obviously final we it's in earlier very on to booking business the relatively we're we profitable right? and sort We're towards Cameron. focused I'll on something growth, to add I it's drive expansion kind and that just business. of for just not that, driving consistently. software, point one it's said said, to really to Jeff's in it's for that continue emphasize allows do making particularly but premised sure profitability expand more through margin, in attractive flowed merchant mix technology want well of on to growing belief us a continue positions we're We all our to growth, just But profitable that has the way booking et business, that growth, business. profitability enablement, to flowing of the of the focus through sake growth revenue to revenue the margin and a

Operator

you. Thank

of Deutsche question question. the Our from line Brian Bank. your Please Keane with comes with next proceed

Bryan Keane

just pockets in that percentage of some our Just so knew the of of make the of kind U.K., weakness, have revenue we areas, Pacific, Asia sure maybe models. wanted Canada, to of maybe we

Josh Whipple

Brian, I'll jump in. it's Yes, Cameron.

X% X% the total be in slightly going than again, and range talked of we've the about U.K. X% is roughly size. a over same the business, revenue It's before. again, market, about on the sort roughly total larger that of merchant It's to of actually So, U.K. company. the but little Canada X% company

more Asia pockets it's Asia of Pacific. Pacific,

a and it's So little Canada, given U.K. the of for and X/X weakness, the where we're of restrictions that size seeing COVID-related lockdown. probably bit

globe. perfectly market talked a long We business, every growth, the every every overall perform of in Brian, notwithstanding is to us market, would perfectly channel line good constant sort in that we we The the for this quarter I growth geography, expectations think a revenue business. much is material and for portfolio, every that again, the going for very to we've don't our have very expectations the in with XX% the say need good Russia, not excluding was about have So that. performance not example is again, And time. in around I everything of currency for really hit which

that's So merchant our cycle of create we that areas poised consistent for produce to continue see segment. feel expectation we to move our guidance continue growth but We'll forward. may the as challenges, with pockets to

Bryan Keane

would just Yes. is. further? protect a that think question see the the And do you maybe, common of then we potentially I the get deteriorate have definitely, you if deteriorate, in place contingencies Jeff, get What and know kind macro in about No, to volumes. can macro, if does growth, as it EPS you you

Jeff Sloan

merger. incremental when million Good today. the would I in closed that to took you we kind Brian. pandemic was history a on saves permanent. six $XXX the any cost of early see after than example see an than 'XX to look challenging That we we of A have think weeks, million Yes. nine further to how in March environment TSYS great the probably one was question, don't annualized our of macro of more couple of we've operated which out in months, $XXX be

expect when close -- do to beyond course, we the we to When the the in normal to do deals, accelerate environment, EVO merger to as operating continue first quarter the 'XX. the announced, we even we have ability Of we're of deals synergies. we're

$XXX our go expense the you EVO, synergy annualized If for synergies. to million it's on of back commentary expectation

first would we've ability the at year. assumed that's time Obviously, I those we've the those think those. think is what accelerate in the we an and of phased around at I to be in realized on August move said X/X X number

record of cost expectations TSYS the case in from merger even So, of and we on accelerating we track synergy of did flexibility do. that's realization, on the And the need we as our merger the also to Heartland synergy side. the over-performing we have if a kind have what

of from So broad-based listen, to look environment. beyond, of through for of pull the macroeconomic said how don't the Having you'll as evidence that. and it our impact we've have the see can that, three a to any we think We in internal levers manage 'XX I said think if of and that history, kind in prepared at today, place. done about the we see remarks first weeks expectations as plenty good you are metrics any October we our we really

Operator

Thank you.

James proceed line with Please the of question. Faucette comes Our next Stanley. question from Morgan your with

James Faucette

on mentioned up and potential. EVO you synergy on question I there Brian's the want to follow

can you terms feel outlined? what and that started more the potential bit a are more from finding As that to like at there like optimistic about you've do to kind business, at puts to those move are in of this is could there little what at least that of look than you've And you could closely you around? talk takes that synergies encouraging come stage, think maybe

Jeff Sloan

Jeff. it's question. very and It's I'll I'll Cameron too. ask comment, to start, Yes, a good

to So United really We're period activities in hurdle through now our for the imminently. the States, we're is the here proceed. integration which starting us primary HSR regulatory

BXB. we the think assets, at spent obviously, work. announcement August for more their who's done job an on in Anaheim time in X and time as the EVO do are transaction the would reviewing highly elsewhere. software I businesses we a is, more say said, particularly opportunities August the attractive. with of continue at with X, of in and was to bunch BXB than operating even I now about we developers BXB So have the excellent business, of bullish their meeting What sure, Jim, Tampa on I'm I their

Payments what BXB very with know, we business. ex-EVO you can and time aggressive our think As being, do targets Global for has we the

that MineralTree the that we're that's the particular, expect before in plus addition EVO's calendar XXXX, and of We year today. to business assets. XX% grow in In

So, I they with are. was very where impressed

and go-to-market done excited realize you Anaheim software think the combination talk to combine for with want elsewhere and terrific On and Cameron, in in a opportunity revenues and have additional strategies I job Jim side, about to and BXB. team very the the development detail?

Cameron Bready

building Yes, of great well. international EVO's particularly particularly addition in bringing these into augment in a some enablement James, markets to where EVO's our and it's done software is solutions, But internationally, the I our significant to about to solutions payment comments. side think product markets market the product on by couple products they're of our on have And to don't sort set solutions, a very oriented. particularly what other revenue excited in but I'll of the side, operate opportunity we're Cameron. of the today, commerce bringing BXB our add businesses we think commerce they're markets, prospects other as certainly, enablement would a we I I say, U.S. particularly job in doing payments markets. portfolio those

And think, strong, on expense then more from markets I coming very opportunities side, in obviously, we secondly, where revenue overlap. see we much the that. very So have duplication we

are to the U.K., environments, gives of across U.S. Spain, market, merchant rationalize in then strategies business. And as us more traditional and we EVOs here that Mexico. meaningful expense going go-to-market course, areas So opportunities for integrated then the across channel technology, obviously overlapping and certainly those businesses. provide operating Those

we together hopeful we in sitting the about opportunities would the our very we the here practice, I progress two provided. there's ability as businesses high but think we into next upside synergy certainly the time years. XXX. with as that good together, few that find keeping targets confidence So the we're we bring and we'll say have revenue tap even we in that I bring past can to Certainly, exceed businesses today, over feel And more there in achieve to

James Faucette

the and topic develop? of the but update it BNPL a -- as seeing goes Global was on to ago, one Any helpful. to in Global's more you're ecosystem to you more opposed to on integrations That's time maybe maybe the try drive BNPL would your trying now question. one? place are pretty ecosystem Obviously, providers color And as those I by? it's be with I'd merchants seeing there providers Are bullish guess not BNPL generally, then still you add follow-up right as gentlemen a scale love how as by update any the more important place year in

Jeff Sloan

ask to too. I'll it's Jeff. Yes, side first. join James, I'll issuer the speak Cameron start and to

provide perspective credit to relationships responsible regulate BNPL So KYC And the and institutions is today, I tremendous think side services on pre technologies right progress with the do. given is EVO, our amount advantages to we've X,XXX issuer our extending financial a with to BNPL have that providing the and and used made of or we BNPL. AML providers absolutely a thing in

clients and have a the States, implementations United FI particularly underway, the traditional rate take-up BNPL very customer number high. the We United been outside issuer has Kingdom in for and the our of from

of implementation as never what in ever of said an And slide, in we've In includes beyond fact, I more that the been don't pipeline opportunities merger which had, greater. would say, I we terms the in has post so funnel pursuing, issuer. I of think don't we're think BNPL

the Cameron, including our issuer traditional think with aligning of strategy merchant? and doing you I the side. BNPL do on seeing successful the in We're has thing the market area financial share do. want particular in things to on comment institutions as in of So, been that winners go in traction as we're along most lot to absolutely well right fintechs, a

Cameron Bready

certainly. Yes,

as to our BNPL a whatever to our launched tap solution through first provider we merchants want the side, they with BNPL That allows quarter. merchant the rails. On our service into year earlier this work in

day, mechanism. of time, payment of end as BNPL just ultimately another is we period a over alternative So talked about

given done into major this BNPL the of what which would opportunity ourselves what's be we to BNPL service, into we're year. data light transpired to utilize BNPL payment seeing to clients that, reporting, objective our our our allow Not value-added all just we've with would a the services extent But to all providing the today. settlement to choice and do, the our and able we of for Our that we're requirements, they providers, provide to in merchants for in plan to and on we their course marketplace make whatever surprisingly, tap are doing to are to slow that to of your is marketplace. their able merchants, the analytics obviously today in offer provide point, customers as to sure all have to we the rails tap consolidated to said have us consumers the work to have We're choice, over day. and who want again, capabilities BNPL they the providers provide any position around

the business from risk So, I about We're credit consumers. feel strategically of we're there. positioned taking good sort how of in not

the and value-added with it's our for, BNPL to choose work customers able technology balance own So, to. our services looking the to we're but be providing we're providing not any service on they a provider or sheet, are excuse

Jeff Sloan

omni to roughly I'd or line if James, of revenue point for our of this the again e-comm last Visa reported numbers of at is by market remain ahead we as the in the represented there, company. omni e-comm MasterCard also which add those XX% our your numbers, morning, you look now and

which hypercompetitive wouldn't line/accelerating/multiples in of growing. I been we We didn't positions the be So, market's if have think, a we've via in UCP, been offering the now. been those about, four where we've for years plus talking

market. about that is. we're in by So, piece but business the our continual really is the where feel performance of business, measured Obviously, good BNPL relative growth with to business very that we pleased as our a card-not-present

James Faucette

you. Thank

Susquehanna. question. with comes Please with Our your Jamie the line question from next of Friedman proceed

James Friedman

to Congratulations. also issuer. about ask I want

-- reflection marriage the the a of accounts Any on of the is Is on related XX% that the So said comps? that strategy boarding? that transaction or helpful. growth. color you're you I have on commercial types might that would Is or commercial file to of think side, you be

Jeff Sloan

Yes, Jamie, it's Jeff.

fantastic that area. related So, just I the think business card to it's commercial in really

very improvement So which commercial for what comparison, throughout you the really saw corporate is from networks sequential most of cross-border the as we've card a seen bunch of recovers. card similar for as what relates is to travel, issuers the in it really large to commercial us XXXX, area

institution say financial would north I we the bunch of a right? on well, as a of side an of people aggregate got that's So growing who XX% of lot thing other the XX% The issuers. corporate are that, average, is,

who have growing at issuers, are money today. banks, multiples number We that some center of

the that, efforts. business part remains is So healthy. also AWS modernization that add of that would very I

two consumer, not applies commercial commercial that developing the that in So TSX that. card. There's just the technologies to card. also and to we're elements is One but

is And modernization the institutions Citigroup, think we're an that in this in decade eight-year really. commercial confidence that business the with that part earlier signed remember year, the may to smart Citi large like us You I efforts undertaking. end the this extension have of us of

I thing morning would throughout we revenue is into stream the this second diversifying as the year, and announced The also say, fintechs.

the with our way us has really about the commercial is part, we and we I cases, and think entry BXB, Extend into financial BXB been So, today for with beyond obviously us for which institutions, Ramp a part we deals into some think as announced businesses deals in announced core terrific in fintechs today expanding and traditional start-ups.

do cutting-edge results BXB that the commercial the showing is relationship, technologies the commercial to AWS, a well we're quarters think in and of we've I place unique really in card as cards. leveraging that there good the with relationship as is we in couple been the building have last producing

strength so much corporate ongoing not really travel and is in it marketplace. as it's the So recovery comparison the

James Friedman

a lot And Slide good for there's Okay. Jeff. that on of color Thanks issuer. X on

any there? Caixa, I what's logic said in think wrong, Caixa. So excluding that I -- you're apologize. is heard excluding you're why the you there If prepared your I reason But remarks, about the

Jeff Sloan

again, Yes, number shortly. Jamie. to it's that ready in is we're go contract to Jeff because Caixa not

on million you number pipeline add is on add we'll $XXX so et board it. accounts gets $XXX that's that's queue, relatively it in then Jamie, implementation the we contract like you slotted an file in, that shortly. whatever implementation was base executed into into to which go the pipeline to conversion, LOI earlier a ready Once is business Jamie, cetera. to Caixa gets for it number, But The the intend rollover until means the then year. So million, number the term. if immediate this

as carrying the couple gives Jamie, some next the issuer growth sense, years that for So to business. in you of opportunity embedded the

because it's So, I consistent quarter in, to -- in contract that flow don't But in signed the the I that I be shortly. expect 'XX. to have going to expectations expect, is that expect didn't our with third

Operator

Thank you.

question. James. Please question comes your John with from line of Our Raymond with next Davis proceed the

John Davis

touch the to wanted here. margins on Just

I think, very consistent, elevated.

kind year doing every of of guidance a margin peers despite raising your quarter this lot You're the opposite.

of forward opportunities could be Are top of bit is being kind And ahead whether seeing little slowdown? leverage? macro this cycle we are what guidance the if base this expect trying just or that you is from Just of to line 'XX to more so in business kind forward operating and better similar pull these a a understand Jeff, just not or of the pull beyond? going aggressive in a expense forward you're can kind

Jeff Sloan

terrific response Yes, said, margin in is I mean, Jeff. to driver growth. pull of not John, couple I forward. questions a of a fundamental it's ago. improvement It's The as

the seeing in So reported rates, outsized are margin businesses as look second as than alluded to, quarter. the growth businesses, you our grow those in at that Merchant had to margins things think again merchant, that drive higher-margin we you're morning, software market are technology-enabled which Cameron XX-plus going And our which time that driving faster of is this for this the I percent that's a performance. row what when

on On the issuer side, it's a healthy very growth profile Issuer.

to I X% quarter, It the constant was in this. X.X%. think second now currency Josh alluded core

the in north As quarter in Josh third metrics said, now based the that of the our expectations right through week we're October. of for on

XX% drive to you margins that are better you're above returns. going average when have margin rates, incremental a relative plus number thing. market XX% So margin growing to That's fundamental at probably the businesses

targets. is, look, margin a execution. in making you here The got We've second long as exceeding provide time thing our I would alluded we or ourselves to say,

the we XX% really doing margins by driven year margin expectations, fundamental get into issuer that, appropriately the But into the I when for and growth enhancement next there. remained expanding next are opportunities disposition being, keep no, I if we're we merchants, this in it's EVO X% throughout think provide of of for time keep we NetSpend to cautious accelerated year. margins. EVO for half normal in So heading growth going back year, But think heading fundamental our

John Davis

as And then just a follow-up.

I prepared that assets. the remarks a you the think how to Maybe or spend fit a grow in will just percent. response understand MineralTree the either us expect to help question BXB MineralTree you've commented second XX-plus with to

is just forward. going the get BXB questions business, that's You said EVO's obviously, strategy we lot you're more BXB a excited but about

fits BXB, that just has be MineralTree maybe what helpful. So would with in how EVO specifically

Cameron Bready

jump I'll it's ask Cameron. and chime Maybe John, additional Yes, to in with other in, Jeff I'll any comments.

you its BXB of where trying fully to down achieve break individual I'd integrated end day, we ultimately, if is think we're it building strategy, what sort about of So into BXB have offering, blocks because software mid-market that the of and money scale to receivable solutions customers for heart to customers ability into market outflows enterprise the our at want and money we payable, the extent with accounts obviously, accounts largely well. provide to as

foundational think to will asset So I largest foundational the AR providing, as MineralTree the what with the today. obviously, support the EVO, have ERP It should if obviously, you complement, underlying about complement or that say, software will again is automation sort software the again, marketplace AP core in core strategy, providers capabilities. integrations capabilities, a of our with by we MineralTree into base

software AP again, driven by really solutions provide, AR like merchant So and around software both customers out in side. on space. strategy, the -- of if that The we've in be think BXB wrap the our the you we'll ability foundation BXB to about the done and to money money solutions. that will much to And

services AP to as payments, accept can their integrated fully in merchant obviously, ability one market. and or their that or integrated package we of make the on side, So a acceptance micro of a of course, fully those any again to as all that ability on solutions either payments sell into the package outflows that side

the elements. are we part EVO as think there So about attractive attractive I before talked of many

to is the build how complements One strategy here. developments payments the attractive it to nicely the trying we're global that BXB they of out and overall bring that most AR automation again, software

Jeff Sloan

to highlight prepared to remarks this morning, said, want add just it. but I'll I is John, what this in Cameron our so

MineralTree's we're business of of quarter base. one news. our that October, on financial which recorded, Grupo is just software into in called institution in in. the we done that's cross-selling the terrific traditional also our We've So card virtual largest deals Obviously, gone ever ground Bimbo was very something the out

in examples, remarks, few a you too. gave I our side, prepared Issuer the On

in XX XX opportunities cards right we every year billion and absolutely of the low-hanging virtual volumes in TSYS issuing in There's the do side, terms on go-to-market. leveraging cards. the and fruit Cameron's So we virtual plus of million-plus do already tons

then a 'XX. that obviously, So momentum to feel our business where build to, of headed. good we is opportunities. Cameron in universe as And is alluded continue focus whole EVO, And BXB into about us brings really to another heading

where very about into excited we So pleased trajectory the 'XX. with are. really I'm

Operator

Thank you.

comes the with Our Bob next proceed Please from William Napoli question line with question. of your Blair.

Bob Napoli

innovations on been you've Payments forefront, the the think, time, in over payments Jeff, of in industry. I Global

excited it just areas you're like becoming it As somewhat. and more you there's I most or look lot maybe of where I it's fintech still around slowed excited on, of mean of the about? embedded payments, I geographic? things anyway, down But are global, the is a of at innovations, a fraud industry mean, integrated VC Is you globally, thoughts think payments what that going around innovation -- more today Does areas? a fintech mean lot areas about? any most it that lot but

Jeff Sloan

a with and just about we think big stand-alone also I topic BXB spent this at start EVO, our growth 'XX about the think Yes, last a talked I Day. year BXB in our September driver Bob, and Investor mean, belabor about a expectations, to talking time we of won't but I ago we top, future our BXB year, is on strategies how do I the lot because call of

say the the second The which what on call is really side Cameron know I I of touched house, has enablement, merchant we thing would commerce on.

consumers are driving kind to we end bunch in is you stadiums, imminently more way call. that, at most seamless at alluded look as probably treated. want probably But with combination of day, the recent our Bob, coming notable. digital, before our the in next of to software, script, Mercedes-Benz that mobile be the If the announcements, of of the What's really a is the

think but at parking talked tickets, counter are So in maybe I maybe were pre-pandemic, are people seeing. stakes, 'XX in anyway. paper a touching I three the done something what Investor this, table people and taking pass, migration about we've stub our that that I getting repeatedly okay as all parking that's we people in going be years, right, people the to and happen five If a to to accelerated that for Day, that's 'XX, card. But digitally, think, lot the okay stadium, probably stuff was maybe inserting and said pandemic maybe by got maybe think, we're at their the

we will more your When example. into them, won, also it ticket's RFPs that from digital meaning as on can stadiums, something, your your and parking but on digitally, delivered with you phone. to obviously, pass just you is a going do So now seat. your take can phone, All too, when your lot your that be of Mercedes-Benz order come, is recently we're done stuff more now one phone,

it pick in You can do it No from anything a one touch a up kiosk, anymore. you wants locker. can to

and the its Another think you great Zego look device if about I and something what alluded real experience. commerce we example point-of-sale is Josh that same like this, Then today consumer and the of call estate, it's enablement, which to more thing. at means about performance, and less I

Bob, go they out, up We on fill their one on you show phone. your they with you It's up button stuff done you fill kind thing, a want sign those car, a kind apartment, things. your to electronically. want your When hand it don't iPad in. a press when landlord's If repair they a had at to the all your done those pre-pandemic, they repair check. on parking for of it in all you it's you a do anymore. there's back, car, new ticket office When touch No phone. it paper, would If want If of down people wanted hand a their ticket.

seamlessly the to growth So all how rate software well And do you a when and as as to you enablement here, commerce as services. combine a what people as provide -- really as which e-com well we think are is those need wallets our to there as undertakings as omni, who as think implementation built think about pros digital to the see couple environment we've are we opportunity evidence or well the those world need of can provides the as in I going. well of only payments

Cameron Bready

you question, ability only I The bring to the this of And would Bob, it's capabilities those touched Cameron. on thing to is and I add to your think outside U.S. in markets that, the

really for is think differentiated I us.

customer So the all the outside our the analytics innovation integrated We're software in and embedded our bringing finance bringing, the with of that point-of-sale Jeff was of describing, the we're markets to markets solutions process offerings U.S., now well. of as obviously, U.S. outside two intelligence.

is again, time that outside them the markets fact these our of part solutions, owning of now markets these capabilities for liked continue and software to distinction the as to some to in underlying we about differentiation they So export what by control ability the to U.S., strategy quite evolve. drive we've and

I -- sort So a for it's we're a of is particularly unique one about. think that excited that positioning and Global Payments

Jeff Sloan

to to just say, also question. the circle back I'd complete Bob,

side, cloud the issuer the sales. On

the and we now. have AWS X/X we X partnership deal, when the look, ago years of kind with announced unique So

most States, institutions Europe, last now Europe. for has the that with and timeline, the Canada along uncertain times I United migration, in are We I months the excited, financial infusions, the about that think traditional in that about not Gaylon few in top the most think been uncertain probably I I've of with reopened, path in mean, anymore. three but we're of work the world of Western very and financial

for cloud every day. of As think that in addition ago, want of I don't minute of the opportunities and one comes first we've have mentioned side. today on accounts and I those a had kind in million $XX implementation to bucket And the XXX% the ever RFPs on issuer says the accounts file, we we

the cloud and I the think side I terms would just beyond issuing the of say I think in we've areas So on both other of sales. cloud focus and BXB already on particular, sales what AWS described, in

Bob Napoli

follow-up. just that's maybe my And

lot what's takeaways an much quite you of seems about pricing, so few of I margins. incremental what issue? a acceleration of you But in a talked scale, by -- in mean to high versus have driving How You number is cloud be takeaways takeaways. driven a have that

Jeff Sloan

by think Bob, Yes, led it's really, I technology.

that really support So both I think side have we and first the people partners. institution consistently from technology the product-centric we we also excellent a our and have view on financial sales hear of world. and

you as listen, I fees. pricing, be as the in have run think MineralTree, driven it's also things BXB very at the on relates to think These obviously go-to-market our in product really But that day, it cloud smart, table with competitive. life, institutions our by that environment, are to So the with is sophisticated I cloud-centric. all which end the of the big, I with stack dovetails stakes technology very nicely now also stack. side, And and public or think

Halloween, I your us interest and Global investments made So all got wins nice terms of play think morning. out of behalf the On elements thanks we've the of in to in it's And and we've for successful everyone. offering, Thanks, this over happy years Payments, a of conversions. see again, period Bob.

Operator

Thank you. This concludes today's conference call.

time. You Thank participation. you your lines may this for your at disconnect

Global Payments (GPN) 31 Oct 222022 Q3 Earnings call transcript