GPN - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Global Payments Third Quarter 2024 Earnings Conference Call. [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. Please go ahead.

Winnie Smith

Good morning, and welcome to Global Payments' Third Quarter 2024 Conference Call.

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

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

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

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

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

Josh Whipple. on is Bready; Joining our our call the CFO, Cameron me CEO, and

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

Cameron Bready

We those well took you to who in the update company to partners the who value XXXX our month and as create where last opportunities we we a of to Lenny, York, see for morning, Thanks, everyone were virtually. person on appreciate and attend investor first participated time in and good shareholders. our since as our conference We comprehensive host meaningful everyone. New ahead delighted shared customers,

solutions worldwide. that software outlined payments, . a commerce time, market of intersection we and operating delivering at we the innovative are at As leader

are and of enviable have portfolio of to on moving We software track its an record service. foundation winning phase best-in-class we build leading Payments next and are capabilities this journey. strong growth Global to position payments And with for the today of a aggressively

our our capabilities, our to strengths. and simplifying refocusing teams to are strategy, and our unifying play allowing and business We us streamlining competitive

a have with payments We untapped portfolio of rich software capabilities and significant [indiscernible].

strategy. and transformation is solutions a of deliver we through to to in already of returns. committed allocation And channels an business our way successful our Our drive unleashing are all a more all higher capital shareholder-first frictionless

poised decade believe the grow, for next As unlock strongly we position we we and to significant the business are to value. capture

already definitive a an announcement business While Francisco front progress of agreement today agenda we our are we Partners. have our that in ambitious to to making us, we sell transformation with AdvancedMD reached

returns to simplify our capital our exemplifies This business commitment shareholders. transaction and I'll more our for discuss this accelerate shortly.

Turning XX% in quarter to adjusted growth period adjusted the net revenue operating earnings results. expansion adjusted to delivered compared of We same per share basis XX and XXXX. margin our points X% third growth,

strategy refocused environment. solid as to uncertain particularly continue Our execute our operational against light and macro the of performance was we transformation, well in

Our account businesses. new Merchant new in XX%. mid-market POS embedded net We and cloud again channel by America, a sales Solutions direct and software revenue and by business grew integrated delivered strong our POS led growth, by our North POS largely this and X% SMB saw driven quarter, adjusted growth which

proof and experience, resonate a feature-rich offering with customers. solutions reporting Our engagement that continues delivers to house world-class payments,

allows serve QSRs. configurations us and all capabilities and including our to of customers breadth complexity, sizes of leading many of the And the

our quarter long-standing and partner. its Wetterberger, board expanding menu achieved with this We to primary have are kiosk excited as a relationship new agreement technology

higher this in also XX% XXXX. bookings growth momentum strong compared tracking food management We with seeing service to are year

our offerings Germany expanding are this further of POS quarter. pleased launched successfully markets are in U.S. into outside to we the have and Additionally,

additional Mexico, to remain our solutions POS markets, international near bring including future. to Ireland, on Romania Poland, track We key in Austria the and

in education, expansion Education relationship University strong in and with our the we the business quarter. strong new a also with our have a a continue We globally. XX partnership in and launched Wales. significant win higher pipeline months, University marks British signed new In Columbia this recently [indiscernible] a university opportunities U.K. Brown new we Ireland a last to of Swans and in eighth of saw signed performance with the University,

and X,XXX the than X.X community the over solutions during peak programs more In verticals, summer our powered events camp million season. with software registrants

Island, a they signed largest that State, also achievements one winning are with in We the market provides POS Washington we software businesses. that in with These service demand Parks new country. the the Bainbridge Rec partnership and and reinforce their and customers in grow run today the with and features our of to

gains we share and we on significant drive key to business. conference, initiatives see this discussed continued we our our As opportunities investor as for transformation execute at growth

are platform, invested them we our By we'll will brand, improving our Genius we POS globally. First, harmonizing the enhance partners and capital. clients capabilities while to our grow, delivery return ability consolidating our accelerate under efficiency and on extend and for drive assets our on value a common

channels growth our software verticals our win to share to driving continue that our in and enablement are into will capabilities the ability and point-of-sale suite the And concentrating our and and are our pushing connecting to we be commerce better Second, we solutions third, leading most our all environments of in globally. impactful full investments distribution assets of market. through

We vertical. education America Canvas, the quarter senior dental vertical; MatrixCare, verticals. living continue integrated our we to technology, that this dent in desire through we demonstrating Notable both serving the solutions a North in serving Alios and and features see within partners wins this payments embedded include space, partners in solution ecosystem, new our and clear the their software in have strategy, ArchCenter strong of the growth the Shifting monetize to to and pillar

ISV executing this position. in United over across Am. We in business international the Lat to also partnerships XX further Asia initiatives quarter transformation, successfully Kingdom, our Australia extend leadership on Pacific, the we and our Through signed are

are focused looking operating with at term. discrete both referral on are partner the payments facilitation, dynamic work solutions our long a from commerce partners the allow not to We along payment and the that flexible products, pure arrive with models to us are continuum offering to enablement over our for but

further our playbook accelerating in successful the international these We're and commercialization approach payment more also new our U.S. ISV markets. taking securing integrated to sourcing to nascent markets, from partners

them the suite provide enablement of revenue accelerating the partners and simplifying commerce jointly includes to opportunities. solutions. revenue working full our end process onboarding to to with are driving and across leverage we and to the This services enhancing and features commerce capabilities, and additional customers. experience, partner while accelerating embedded more their Further, speed our value our empowering customer

payments. Moving to core

strong quarter, to in in signings this partner will We growth enhance also new further distribution our saw which a serve this channel.

partners significant revenue capabilities products these also with improvement bring to new the in we as continue and more We a opportunity see through relationships.

distribution days, result the channels. adding as the progress Last strong highlighted U.K. quarter, in And this beyond continues a direct we bank-based we evolve merchants market new of remains while solutions referral and demand generation early the it as capabilities already of traditional to are initiative. expansion seeing our

last We joint X,XXX just over and have new Germany successfully merchants venture with are added Commerzbank also making our its substantial headway through inception quarter. since in

we we as this telecommunications momentum TV national good Europe, and geographies Across the region, proposition enhance Sky these have [indiscernible]. markets. leader, marquee across to several signed and Mexico in to value in wins including continue LatAm highways multiple Shifting quarter, we our

had notable Bodega, also In growth, wins in class. several Petco, addition to market, revenue including in this we double-digit C Grand

our share of client business through commerce payments are value enablement solutions growing variety initiatives a In on terms of expanding our transformation, wallet propositions. engagement core and focused and

also in can in opportunities, targeted growth We're or the term. have and we prioritizing attain where pursuing short scale leadership international markets investments

partnerships premium channel strong longer-term to our in outstanding ensure our are the is our needs More drive experiences positioned core clients form our continuing to broadly, enablement trends. for while and higher support complex and value. We expansion leveraging also solve distribution to we evolving diversify globally are well commerce as institution will our goal we customer with payments relationships lifetime increasingly financial service, deeper providing to

payments POS integrated and businesses these feeder core a leverage us our also customers from solutions channel as provides additional for as Ultimately, grow. they

of direct base well indirect as Finally, X it's all ventures, will highlight our to better our that in partners, pillars, joint industry of of relationships. of merchant and us the the important broad our distribution including broad base across as sales teams a allow wholesale transformation to leverage strategic one premier

divest alignment identified at or review, in certain looking highlighted strategic with we focus connection lack with them conference the of assets, strategic businesses appropriate. As and are as our to we markets and our exit lines investor that

this successful definitive As integrated agreement and we has as partnership Under of AdvancedMD a we our advanced business. a to this part connection multiyear commerce continue to work, a to business. ownership, our its strategic with sell I solutions AdvancedMD with enablement provide also transaction, customers. payments MD executed to agreement earlier, noted reached In been very

and business, fit the reasons. that best it not we for as However, made strategic several was simplifying focus on our streamlining we determination the

a amplify programs compliance is are in First, other geographies. that market significant Health businesses bespoke to requires and and capabilities that care difficult across investments

integrate into on regulatory our our operating create in fully extensive requirements limitations health care new add are there that model. Second, complexity to and ability it

we have merger, exposure health and our partners. embedded strong conflict the care in integrated with potential the to Lastly, thesis channel business. for post in increasing

continuing want partnerships their Payments, strategic and to forward members team through thank to our forward. we Global to AdvancedMD look together work We contributions our to going all for

Issuer Turning to Solutions.

We in in cloud financial a successfully our cloud are control. we AWS have implementations, completed first conversion with We others Pacific. now institution many in execution X including can pleased environment global X Asia leading our the for in with areas pipeline. We clients the our

over contract We quarter. went share supporting by aligning implementation pipeline successfully new existing conversion X at of Today, X during market third after accounts partners, the large FI portfolios winners. strategy recent our remains acquired XX with our million to LOIs also completed of further

cross-selling enablement agreements this over year. and ongoing We're in also having product success having signed commerce solutions servicing XXX

the forward. clients. we visibility and have of our largest global providing noting years, clients us partnerships going we renewed our renewed good reflecting is that of It worth last of strength Lastly, stability the few recently top and our over XX XX X

volumes, softer-than-expected with quarter transactions Despite by largely this further during experienced driven impacted were our our we second decelerated quarter. card commercial execution, from the by what results

to product also a partners FI in in delays approach our from business incremental saw macro more cautious take trends PayCard as uncertainty from and trends. We they investment employment saw softer some spending we given ongoing project sequential weakness and

are and modernization transformation as persist headwinds manage we positioned believe these execute we our journey. well as on to they We to continue

and win grow Issuer Our across new transformation modernization, today. which our leadership efforts strong we for existing are on and further share the completing enhancing to position cloud our amplify markets, centered will addressable command right

products entirety, and allowing issuers us diverse in We are tailored and needs neobank our platform with across native solutions manner. and API-enabled use including market focused able regions that union, extends commerce services our market And sizes, to or address solutions, individual This greater speed and on to and a and with clients deliver opportunity enablement support with clients. through credit multiple serving fintech all of its products range to delivering the compliant our also in cloud components secure community, agility of to investment a cases the of segments. we're differentiate and in segments,

progress geographies. We're the further our this year. new also more and efficiently development are pleased applications us making track of we Our expand on to on to allow complete solutions easily cloud-based the modernization client-facing in with remain and

pilots We XXXX. have initiated in launch commercial customer a to continue and number of expect

paving over adoption be the Additionally, way selling for we next time. widespread will year, cloud exclusively solutions

Milton. Before my relief number to resulting I Josh, the comparison presence Helene tails want organizations over faced is a impacted from critical turn by Hurricane affected. it to The those the impact to have supporting the where in our in those to and providing business I of events Southeast devastation significant from widespread these a we operations. region, hardship and Payments Global to financial express condolences all to by sincere damage

our and customers on members, John? We can all road the will continue ahead. to to team support do we to partners recovery

Joshua Whipple

basis the for roughly adjusted to period. at this look offset the reported XXXX. and Cameron, from our contribution billion which acquisition share of includes good an margin increased of an $X.XX net quarter, we currency quarter, XX closer a of morning, period unfavorable We Solutions points of XX.X%, compared X Thanks, delivered rates from was $X.XX segment. achieved exchange to increase X%, of . of Adjusted per the by same foreign performance Taking XX% net operating and X% everyone. adjusted prior for during billion reflecting [indiscernible] the growth increase earnings $X.XX, third the year. partially the of revenue revenue the of Merchant from point third by impact adjusted Payments, in

in at is our we software, investor discussed of lines to core X and unify point September, our As we working around business: conference global of embedded segment integrated are in sale merchant payments.

and software as third X,XXX quarter. added locations POS for the delivered successfully Cameron the double-digit locations year-to-date. POS roughly growth quarter, mentioned, we Our new XX,XXX and have nearly added POS business low during We

growth software we and for Additionally, businesses, bookings across both quarter the XX% year-to-date our third periods. achieved new

revenue double-digit strong which saw businesses, in also We adjusted net delivered performance our Education growth.

for the embedded third Our quarter. integrated payments single-digit achieved high business growth

an added XX year representing software increase XX% win period. to differentiated continue during prior the with quarter, integrated capabilities of and We across over offerings the new partners our software our

partner consistently strong to highlighting our year-to-date development and also market ISV demonstrating on New XX% results the our increased basis, offerings. business further signings a receptivity

Moving Europe Pacific. delivered and U.S., channel Asia core growth trends partially partners by added this which quarter, we a to in core was the Notably, over this in in softer year XX% offset the payments growth was payments, prior new by XXX period. quarter. during the solid increase mid-single-digit driven we This

our suite prior amplify our with consistent distribution with and Europe. impacted to to third full moderation slight the X% across by is Central customer quarter. efforts in banks reported in grew the for to a consistent the SMB September, of the volumes from the by region the needs. our merchant were highlight I sell This and Shifting was peers. lower trends due quarter would volumes, our in and to our same-store volumes which sales, also that Eastern capabilities weather-related markets address channels Southeast to events negatively hurricanes

last of an reflecting delivered acquisition or EVO XX% increase Issuer segment, of margin in improvement our execution on adjusted year an basis XX of operating strong sequential We Payments the the strategy. of points ongoing Solutions and Merchant completing since produced reflecting PayCard year period. the X% X%, nearly excluding revenue to million, quarter, an which $XXX prior adjusted of is X% net of the billion growth compared transactions our We processed in segment $XX business. increase

large also volumes. card This in in transaction growth partners, marks the deceleration further highlighted while FI slowing slowed trends volumes Consumer of consistent points roughly X.X we with transaction sequentially. several saw our commercial by

Cameron and Additionally, these we revenue have seeing seen current the unfavorable partners, the And broader service incremental with certain resulting smaller regional bank acute customers mentioned. investments while we're trends mix an in delaying as environment, and in product dynamic. softness, have been more

largely have cycle Despite medium implementation the outlook both by Year-to-date, conversions. the file. on the we and term. on the total implementations for The added execution. million with softer our this fourth XX our to the gives renewal of pipeline quarter, and traditional approximately us roof added of strong for strong confidence quarter traditional macro conversion a trends, accounts many record completed over activity, We we deliver the near driven X our we've file million XX XX and our large customers of in continue completion accounts business

BXB mid-market Moving portfolio. for AP generate segment to continues core our bookings. Automation our to Solutions healthy The

their similar to of take and approach, business, card commercial number reducing suppliers cautious AP also Although more our spend. we're customers associated seeing a the

as point headwinds in we we due trends market impacted business of a the segment Additionally, sequentially softer employment to serve. saw our this roughly by negatively growth the quarter PayCard incremental the

an to year. points of and decrease compared margin XXX the prior a Issuer adjusted Solutions delivered XX.X% of operating basis

technology we saw As as service the a enablement expansion margins lower-margin last to away managed recall, and you strong offerings. from may more issuer pivoted business year

income adjusted free benefits, from cash adjusted some those also lapped modernization. for invest pressure now flow of rate million, standpoint, approximately related while the seeing just net trends flow. $XXX are margin a macro We roughly while of strong I continuing we quarter conversion cash we flow to adjusted discussed, have in From free XX% representing the cash to produced

adjusted third flow impact on saw year the cash Since of noting prefunding settlement of cash from of of the to adjustment weekend, the reversal that ended inflows this timing. quarter expected. $XXX quarter included worth free as weekday remove our while ended the a quarter million prior settlement we It's impact an the

capital $XXX the to to or million around during be $XXX X% in We and expect invested revenue million of continuing spending expenditures quarter, capital roughly in XXXX.

to remain net early level Our the position be to in on with our the leverage the decreased X.Xx leverage of long-term lower sequentially. for end We at year-end, quarter, turned consistent low our targets. quarter Xs by third track

liquidity. and remains sheet have available $X.X billion balance healthy, Our we of

a is weighted indebtedness debt fixed cost X.X%. Our of approximately with average core XXX% of

As Darren purchase AdvancedMD a for $X.XXX of reached agreement to sell a definitive price we mentioned, total billion.

transaction taxes by neutrality. year-end expect this up have returning To approval. shareholders to for end, market leverage quarter. remainder We close with entered plan $XXX accelerated to return that and $XXX subject expect to an million anticipate to million share the we connection the this to open repurchase into transaction, In the regulatory through and we addressing maintaining purchases after

we unlock at that as refreshed first to with alignment step divest a strategic lines and of exit. we review, value lack certain also shareholders. that markets, part conference, represents good assets identified process, for focus transaction we in of This investor while or As intend discussed business our our that our our to serving and

international opportunities, to the Directors We Board repurchase in additional continuing exiting an It's geographies certain this are beginning increase our worth that on also capacity of smaller share $X.X billion. quarter. company's including to execute highlighting approved authorization

clear, announced the incremental we're is at divestitures. As this. $X.X over $XXX conference, before X next shareholders million to to targeting be investor the returns today highlighted we of ASR billion our To we contemplating years

our longer-term our opportunity growth buying strategy in back and a potential. continue our given shares as see We confidence compelling to

outlook. Turning to the

durability highlights benefits focus as priorities. sharpened our performance strategic execute on we and model year-to-date the Our of the our of our

$X.XX from growth AdvancedMD. to expect of excluding the We net $X.XX to range to reflecting X% reported adjusted billion, impact to the billion continue XXXX, of over of disposition revenue X%

in environment, of expect expand now given margin we issuer basis trends the expect softer still XXXX. XX points due to macroeconomic seeing business range, we're adjusted to annual operating we be for our However, end to the and that the up to at lower

the segment [indiscernible] now full basis margin merchant of outlook We to dispositions. of consistent of to remains iCore business in XXXX. net expect This excludes our we percent business the continue and expect For growth merchant to operating the up year. impact adjusted the report revenue our with for prior adjusted level, points X-plus expansion for XX

Moving to the macro Issuer to compared unfavorable than net our slightly year earlier. highlighted full X% Solutions. trends We revenue XXXX. is range outlook in the anticipate given This I adjusted growth the for lower prior

now expand the up adjusted margin business basis We to Ishwar operating XX to anticipate points. for

approximately expect be to a reflecting continue we aforementioned due expense per earnings still prior the with expect this year full for interest of together, all Moving approximately growth end year of nonoperating range albeit XXXX, to likely to of million effective it for and $XXX the we $XX.XX, to tax to rate XX% the $XX.XX in macro Putting at our couple our net adjusted to weakness. the consistent be to adjusted items, outlook. lower be XX%, over share XX% to

that, now to call with turn And back I'll Cameron. the over

Cameron Bready

our and to our strategy. solutions we operating our enhancing that how clear experiences organization begun a positioned our single client sharpening to compete everyday company. emphasize completed elevate organizational to provide the model our markets successfully structure we commerce And across transforming last better. deal we business processes a addressing We operate comprehensive accomplished are X strategy, Josh. full win. and agility globally, of a We fuel complexity, have best [indiscernible] internal months. unleash potential, our the our We've well-articulated our growth, We the a to Thanks, positioning focus reoriented execute under review our . against make and unified over great and our where and market-leading

growth business, We business position our are things our platforms for and sustainable success. and doing all streamline unify consolidate our and the right to our distribution reimagine to

in will and execute month, on outlook to of deal additional us to at we much years. of we the and our a in realize This deliver will accelerate in over which agenda great and and XXXX in our financial have complete what medium-term and investor last provided our ability our is We targets growth next our XXXX conference allow conviction beyond. benefits transformation few reflected

the see We partners opportunities we about our Winnie? for value are ahead significant excited create customers, to and shareholders.

Winnie Smith

go now will to we Operator, Instructions] . questions. [Operator

Operator

Will The Instructions] question Goldman from of first coming [Operator Sachs. is Nance

William Nance

commentary So just referenced, maybe I restructuring XXXX the you to the that revisit Cameron. and of wanted around initiatives some

guys these questions I the think that a Day on initiatives. have digits provides you deceleration cushion on to confidence mid-single Investor execute post degree lot year next of the some the focused to enough of of with

I And so X% at at little bit this look from a payments. if you with tailwind of take you a merchant think were quarter,

you X% about with is of So anything to some initiatives? sort and these guidance call cadence of feel restructuring the play we should the How kind organic next how the of can it then year. low And Xs of about of cushion expect do you deceleration kind the implying there next out? year of that share for in something level

Cameron Bready

comment your question. Josh Yes. the and of ask I'll latter on it Well, it's part off, kick maybe Cameron, I'll to

macro So month. shared Look, the confidence medium-term a guide last a at got we've that level, in would I say lot we of

way to 'XX transformation look that clearly as are through think drive I importantly, our the we're position the I think time at and as as have positioning perhaps is a balanced approach. 'XX to 'XX us the 'XX . And position we think, frame. we growth work the accelerated for 'XX pipeline, good into I and we 'XX, poised key 'XX in and we business initiatives how the

cushion, flexibility to position the to a business the think, of allow need I terms in I growth. we sustainable long-term revenue things to for enough perspective, expectation do to have the do think, think we I us

per $X growth While shareholders at year the same billion delivering and earnings next time, share. amount capital, we're significant in double-digit returning to of a

of the and transformation, return doing responsible to through need business approach to compounded while the a to share the earnings as rewarding we again, time in to shareholders I expect journey. of progress what be at position think the kind working growth still same is obviously, we're I we per we the deliver, able capital think, while the our through good shareholders to, do to So

of plenty we I the work back shared flexibility to in more the we is certainly, we're think we're XXXX XXXX lot short month. in in revenue of as So time. we business. through we internally, a start we the into starting sort into XXXX about what acceleration think doing medium-term We've And for of that have to already yes, are fully at think last of see benefits of calling progress outlook. confidence head as the more got will least get as answer we half materialize I when of results a all lot our the and

Joshua Whipple

deliver well, by $XXX relation more benefit Day, then we talked run plan than to in the incremental income of And of as rate at some to the half we the million Investor restructuring about of first operating XXXX. charges, as

You restructuring saw in those of here QX. charges some

As to and to charges through? next, we X that say, restructuring of see and cost start some I'd flow of those and the expect onetime X/X range benefit about, talked over approximately ahead quarters, go the the we achieve, we'll to X we those expect

William Nance

just if And that Appreciate it. color. follow-up may, quick a on sales. I the Got

the of software on owned AdvancedMD, congrats portfolio. announced. roughly getting pegged I we this So XX% had to think

on just just revenues margin of about sale? commentary wondering post strategic may million could And profile the $XXX was the sort think should any you million revenues I thereabouts. to confirm the sit agreement, with $XXX if we and roughly guys that you how payments of So the

Cameron Bready

Good Yes. question.

north is number. of -- of matter, aggregate So it's about as revenue XX% an a AMD that little sort

forecasted that XXXX, had. obviously, revenue we commercial million sits of There around So business of by virtue that AdvancedMD. with the outside $XXX the the some Most revenue is payments we million range. today of $XXX in will relationship for stay to that us,

business kind for asset $XX The of range basis, kind teens EBITDA for of in us multiple marketplace. I little on in on premium we which the but that, secured than cash us EBITDA value is revenue a EBITDA going EBITDA the So million a range. think for for multiples with sort the high that multiple that it's of is a or a around XX%. the cash are roughly a bit . Cash -- AdvancedMDs EBITDA good this around multiple, basis. higher And

Operator

Bergin The question of Cowen. is from coming next TD Bryan

Bryan Bergin

the point-of-sale those wanted brand ask the third and there. I weighing us to initiatives thus results, and on on related just And sense how any the a far? point-of-sale early progressing? friction churn realignment consolidation feedback on sales consolidation, give any Just just from client execution quarter early are

Cameron Bready

No, I would I question. say it's appreciate you it. asking a great

a POS on common a positive our side, a unifying and approach. brand platform capabilities there's there's certainly, go-to-market common So to of internal the Genius And the lot of and lot excitement, brand. brand our about of a receptivity I think, under finally aligning all

of deliver deliver a that to to capabilities I able the globe the key them. full in in with can be think which we all around want we geographies suite

So we're still in early days.

a period a align to certainly, have impact see to a of going good of business to those probably around enthusiasm a going There's our and over But today. sale of longer POS sale from we time. point-of-sale of we a over dozen imagine, period a do of brands can our point brands growth you in have around where different lot work on perspective, is time. the business deal and As go-to-market point of

actually POS. for business. good a specifically as in nothing relates quarter out I the call bookings It's to would it our POS So still quarter,

none consolidate consolidation sort efforts really time, onto of a will forward. going QX frame of we over will, performance. of more of through work our look be course any single time as in sort in of kind POS platforms the We But demise reflected we the probably some 'XX internally. offerings legacy as unified platform the that to is That point-of-sale

probably from we're a as And But look around all brand. to say may on intensely very important -- differentiate huge point-of-sale channel. what restaurant, the the market for we we bring more space excited competitive excited I see than us to Obviously, white it's that perspective. we said we're would in further retail. about align We that to offerings in even in be balance, today. retail us in under for subsegments opportunity think about some I an before, of doing what there's see certainly the less the today our restaurant market of in Genius and common a we're can platform we retail the

and And work overall doing see around in going brand, here. more to think we're under really exciting, business we deal ability great a I rapidly. there's POS scale together very we're offerings is I for success outlook [indiscernible] much that lot the our to think the our bring enthusiasm of the So when a of

Bryan Bergin

appreciate underlying some on of improving? factors of I these not of your factors Can some and growth? that. are in drivers these further just sight some of line commercial do to under just you performance have And here. you volumes dig control of delayed then and issuer issuer understanding Okay. the on some the investment And for

Cameron Bready

team Yes, I execution it's good work mean question. an pleased I the remain doing. standpoint, we obviously, is from a our think with

that his us a opportunities QX conversion heading QX, into positively of in obviously We positioned of highlighted I We as fair have impact north pipeline in will of which XXXX. converted slightly XX good accounts. Josh million kind a think comments, better amount

spend. is. control lot a is macro what to commercial have don't over We The degree, it environment, of some

the I on our process lion's good market we we probably given exposed control, pipeline issuer an to today opportunities things more the for in can commercial, balance, the commercial think that portfolio. a are from But to of share just relates we of it as perspective. have We

customers over us we'll conversion of years, partners good of XX be as of have We've next platforms on renegotiated line for pipeline the last course well. few few XX XX the the our sight -- XX that over top which to months. the bring what revenue of We accounts XX will our into years important to those gives a to next good over our

business. good So I into got we've the 'XX for at what think timeframe, the as we kind expectations be 'XX, of visibility the should look

see there through obviously beyond. where expect the be of guidance continue into the issuer XXXX to business. 'XX being that modernization we in accelerate and the work we Assuming remains for we able And we from move provided kind month last to we as as journey, our is, to macro midterm forward it

Operator

Deutsche from question next of Keane coming The Bank. Bryan is

Bryan Keane

Just of on business? different fast be as sale how more geography of this And specific revenue inside Or that for there be up is well? in the then assets was likely in growing -- AdvancedMD, to the is software merchant business? that areas other could

Cameron Bready

Yes, question. Brian, good

business, growth midterm high midterm was So impact brands is of AdvancedMD. doesn't the going kind Good healthy around Obviously, growth in for AdvancedMD our business guide, contemplated, forward. range. really our growing outlook guide it that obviously, our single-digit and our

of we're healthy And be kind a Francisco with commerce their going growing to forward growth continue Partners to obviously, business. partner to payments it's and good, . solutions. So drive delighted in to able enablement business help through

conference called last of at out as it what divest think our I of as are neighborhood investor to in planning $XXX we in mix, $XXX the somewhere we the month, million revenue. relates to million to be may else

are businesses a we refresh we've we to that drive forward. already time. over align of out that strategy our business assets As and called with we the want don't long think where period and move These strategically

further obviously, just obviously, step any we're And AdvancedMD on working think imagine, have that AdvancedMD returned want than to with process. the we very the that to value But the we things of on. in to more and proceeds did But there that you still to we execute. in we was same the provided, preserve we to given we're given that trying first potential last as integrity working don't be processes to with go shareholders that. what I much can So a we efficient would way being look have enhancing a things execute them are month, shared the guidance we're manner.

Bryan Keane

mid-single just still we're digits. weakness as despite there at follow-up, Got that it. my economic payments core the in is there And seeing kind hanging out of

digits. from it next that about what the guidance, embedded to to where talk I single low low Can core given change probably would is maybe you be it the today? to just digit digit year, think fall mid-single was going the to was see core single for

Cameron Bready

Yes.

is kind worth One that think few I to just things as think that. there's of general it I relates macro out are calling a the environment.

doing have AdvancedMD, of lines of macro-oriented we're I softness maybe some may as I going we probably today. our a exits activities businesses saw activities certain think and most wind the involved the certainly downs just but as the what where business. not fair, with say QX that to hit we that's some and doubt, of stop your risk we're and without large but where sequential also that's we're may be part of where or like QX, sort point that more of portfolio divestitures where a that to And that the of would activities exiting is relates in it relative performance business the to

drives So we as core think that's to a for I little outlook of bit of what the look some XXXX. payments

But going one I'll that continue need example in an this note business. for in core opportunity core obviously, sales to quarter. as like and a [indiscernible] revenue to for just is, still for which to we quarter. compensation working that's good to those of you Obviously, around program that of create drive for we that bit feel in the impact do our we're fourth things give in other a themselves. program our partner work activities, sales professionals we're realign softness that trying we earn think bit better that to channel, orient sits specific to good as creating little to doing work outcomes we have that think on a to to very [indiscernible] kind production that's channel payments. the I our new distribution compensation little our reorienting we're professionals We're payments. our We're a obviously to line new with might

that payments are as of relates transformation to working our may those it have on So our an we're on business. the core that kind impact things

area And and a we touch perhaps range look the expect to to reason 'XX in as growth 'XX mid-single-digit reaccelerate to to look we would as that 'XX. part that that's we the of slowdown that us gets

Operator

next Capital is Dan coming RBC Perlin The question of from Markets.

Daniel Perlin

pulling million follow-up question AdvancedMD and just of $XXX revenue here. you midpoint that and you're about a of growth? like then growth for or range, But really of a be out existing talking telling the from of then X% the have base rebasing $XXX growing just to I million are X% the 'XX, off that 'XX us point the base clear, to -- are you the keeping kind

Cameron Bready

the was way think of called X% organic. it of revenue. exit easiest about neighborhood step $XXX first the $XXX AdvancedMD in Obviously, the think out to at the is somewhere that process. to the Yes. I million we're We is conference, Dan, investor looking in million to

about think into at that conference organic we as growth, head targeting we range we're our we as XXXX, So highlighted mid-single-digit investor last as month.

the easiest a about as it way to So that's revenue matter. think

with, to. have by Earnings divestitures successful or obviously, will growth earnings, that be to clear earnings that et from will divestitures, one think as be double-digit as next assumes we're proceeds year. AdvancedMD use of going about deliver it we're just But organic of number, impacted matter, whatever sight revenue in revenue overall asset any being Obviously, cetera. aggregate a we an line impacted

were organic providing we're that guide, numbers of the medium-term our all sort for numbers. So they

Daniel Perlin

the know, macro on attrition a you then the exit steady pivot, quarter falling follow-up implied. third And there's of that's just imply the to just seem relative rate I hard have And of force like some feel kind Yes. on given to quarter I the I some And to it are kind rebranding. here to That's potentially as fourth does helpful. it. to in you It's get mean kind X%. a said, sales heavy core. I holding that that sell, of headwinds got its don't

just that, seeing rate it can it fact confidence So such for that quarter business, hold have you're actually obviously, that about exit. just But the be the could seem you things despite the longer should to term. there else all why fourth what into doing the exit disruption these would say better, you more similar anything you're -- to like

Cameron Bready

would and particular, large. it's that be disruption of in Yes. I to I is fourth that in October sort one obviously, by don't going of looks things would October than more say we've know the that I little better And quarter. September. note couple A a incrementally seen

the that it's think that's September, we some the the the of impacts impact and Helene of have whether of, Europe, in which detrimental certainly in of to most largely heard the hurricanes, I never Central that Southeast a for weather probably impact us, an in the time end saw of had at and or due Milton U.S. storm Boris, but also market frame. had important pretty is you September which

what with we of the of in seeing disruption, a weather just lack large, better. obviously, September. by that's bit fairly in of us sight perhaps we little we I And and So a saw QX, given in to we're what relative consistent little looking, October, saw a line better little think bit kind have of good trend to merchant

quarter for confidence driven got it look maybe Some some slightly of level, but by our driven of fourth a we of And of to and large, the what good we by exit kind lack the expectations again, ability business, in QX. storms, the that than as for -- same better we've around of by, lack headwinds. FX saw to

bump same XXXX. sort to No trends, year largely heading expecting that into really were it's we issuer kind but just successfully. issuer, that conversion the late little execute are from For little able on QX better QX obviously, bit performance exiting in the the of a up of but we we the macro, a expect for improvement macro given a of cycle

Operator

question is of Research. next coming The Darrin Peller from Wolfe

Darrin Peller

that on minute. up follow a for to Just

revenue fourth better quarter closer I that X% in third mean, somewhere very year, which growth. X% sounds then -- maybe the Cameron. running And organic total X if quarter, don't X.X So exit or I than to like the we point I organically, of point we versus this guess, quarter. If helpful for was terms know, we're it

of the know Just for XXXX, macro trying you thinking conservatism that I setup transformation. point about incorporate a to with maybe along were disruption business a the given little or which the to so

revisiting But the us and just negatives that the there this . roughly those 'XX that building that mid-single-digit 'XX. remind the off conviction in a starting the know question are at range, guess, blocks and on The on the transformation from give X% maybe are sort year maybe -- positives to X%, could earlier just exiting offset us negatives be at you're X% I of positives negatives macro. If we confidence on

Cameron Bready

it's initiative. would transformation Yes, Darren. One few I working fair things. our a say already is a on question, we're

expect we as we to see about start half into of as the we're starting our things XXXX. execute -- in have back pipeline, to those expect head initiatives flow some as start to So think we those, get as we to performance. to -- continue we we our the Certainly, for today, to through of the executing impacts business positive benefits

confidence, transformation we continue obviously, are position we little performance bit work kind to through gives disruption we're that of 'XX a things, that point, and to which ourselves positive on a your to work that in have the for us as other executing initiatives business may the 'XX. as reacceleration and to to of head So into the be we going on some to continue even year, while

transformation the to start that provide half XXXX certainly value are into many in to get and look as of we our of materialize at it's -- life there kind business planned life are execute. Many that balance as activities as and it, the going in for frame start XXXX. as execute. the for them have cycles of probably those our But head of program. this XXXX we I them at initiatives of of time longer-term back we're working you look transformation to part today have to XXX -- short-term start initiatives business -- cycles And the on largely of So have to to many to

cushion enough terms to back business of deliver of kind to to There's share, think So question, kind response I shareholders ourselves of going how still ourselves earnings positioning to transformation, described, execute XXXX to given while double-digit the I in $X of growth in earlier again, billion be right 'XX. deliver and able on to way the given reaccelerate 'XX think performance and my we've positioning on flexibility. capital in per the of sort return we're just the we've in I the

Darrin Peller

still on was conversion actually, of mean fourth good you're better is cash topic expecting capital your for clearly see Okay. what this to quarter, continuing return. the it's conversion quarter. the free I and

year's what So have that next to the buyback [indiscernible] but standpoint on and cash helpful, the being when could still planning maybe be end timing billion by into you're just free share $X of is the leverage the going And we that you think if accelerated even utilizing the you're of just buyback buyback. from of just revisiting you then about the targets us when remind year? for . a

Joshua Whipple

Yes.

Yes. So Darren, this Josh. is

for which we'll in we capacity, So buying additional market. the balance look, And announced we this accelerated share the open of year, the then shares morning. we some have repurchase, be which million have obviously the $XXX

point by leverage leverage around next the then buying our to go time expect back billion shares that worth year, low next we the of back continuing And point and into approximately Xx We as leverage we'll the ahead of be $X year. right point to the to maintain go end and year, year get period? next down

from incremental and Darren, to And medium-term that that think we Obviously, say, as return go about outlook. that we well. to AdvancedMD the proceeds said ahead billion what also to were shareholders I'd then you the going as the is $X.X over the

thinking over about again, term. near term kind capital and longer So how of the allocation that's we're

Cameron Bready

just Darren, would add, to that. I And

target the QX. we think be news. which for obviously is around we at kind of As And reduced do time our I I leverage XXXX, highlighted by good targeted of the kind obviously, as to -- morning, ratio XXXX, We're on this leverage of about and we we that. X.X% QX exit think to QX mean, we'll end

we So be it we're on we end where the the by the that want trajectory that of would out year. leverage to we get to called

be take of XXXX is way and kind most . capital market the about get return will shareholders. case for into base to of as think XXXX efficient obviously into consideration that we to we'll $X conditions Our billion but and ratable, return best

our that a of think value kind next it over cap, maybe X.X% about over think million time at to perspective, and XX% of back neighborhood through the for obviously, step macro committed look market returns, next XX% that the opportunity plus X we've more cap market morning, shareholders over returned pretty the to getting announced I $XXX shareholders I somewhere a of frame. few years that you attractive create capital ASR of to years our the if in this the we're which we As is from

Operator

. question from next is The Huang Tien-Tsin of JPMorgan. coming

Tien-Tsin Huang

just wanted out in the about are is going . softness curious I'm broad-based seeing in just the this what's ask cards Or on the TME figure spend. all how any some you I just to just is, change commercial on trying with to of cycle. weaker Again, force. volume?

Cameron Bready

from across see which reduced a flows, also, we're Yes, environment from a think the business, I out our just business, seeing we're in cautious in. software in I we businesses a bit our little a macro even BXB little issuer Tien-Tsin. of it's mean kind our Look, flows reduced in and and Certainly, the just money being board commercial of around of just business bit in card volumes overall flows. perspective. but on we're it's spend bit both little perspective. commercial called We seeing T&E make you a

pretty broad-based. So it's think I

the market U.S. our of business. We commercial have in in a significant portion the issuer

kind bellwether results. our of spending an certainly, materializing is of how overarching for are we're that that's seeing is of And in in slowdown, so say, we kind overall the would what business kind And market I faring.

lost We customers haven't any in space. that

the have had same we business to previously. book continue of We

just no market. So perspective, there's that the flows seeing we're really in change, from I overall say, it's our would volume the

Tien-Tsin Huang

Got it. that No, figured no, the I case. was

learn, the Just some trying Cameron. here. factors of understand trying Always macro to to

On as there on exclusively it? PayFac? drive you on here with the is commercial payment be the hold provider AdvancedMD payments Francisco with AdvancedMD, the given still agreement And follow-up, how penetration to -- just quick my still you'll long room

Cameron Bready

Yes, absolutely.

not today. I the opportunities think fully to payment to penetration in more going portfolio in penetrated the business. there's We're be drive

do of the to the penetrate embedded over model business. to existing try time good continue and to to have So still more base seen We did new work it, the to the of sort an convert in of payback of business. sort integrated a that the we wins around terms offering of last, existing net in AMD or in so able traction to business and on being year back after go of book cross-sell call we've

obviously, for And own business. the has aspirations its Francisco growth

have they're an them with payment as offering adding new relatively to So a perspective. we new with customers, embedded partner be that to able be as will sales seamless

So growth. we good runway still see for a

partner integrated of I acquiring we'll was as and it, recall, forward initiatives. grow ours an AdvancedMD, the continue prior own scale and us of you to their ours them they partners and of sort on we'll post integrated execute think and to move look divestiture, if to remain an with

Operator

The is question next coming Williams of Trevor Jefferies. from

Trevor Williams

like and point It on currency basis X guys go biggest it specific to the I probably a the merchant just constant for in Cameron anything to to weather little the what slowed by looks least third is saying could there. you're sounds the put and bit wanted back organic But better. you in at was of QX I on moving more then like if some about growth pieces, second more on magnitude detail around . an mean impact if quarter. there quarter order merchant October growth based

Cameron Bready

it's question. good a Yes,

your So is math roughly I right. think

that little you've this by from before bit But there September, a I other think already. borne there out seen point. weather of the a reported say macro was even who would I Yes, have was softness QX weather kind of of impacts of it. some quarter in some QX to QX sequentially. commentary think about others And sort I QX, the to it's was in of

driver to largely that look QX and at So the as that's kind we QX, of in about ballpark. it's

little of kind quarter I north of X% QX. So X% in organic think a the growth in versus

As we're at little a expecting QX, bit look better. we

we're impacts far But same see expecting So too of obviously the we I a ahead I certainly, and -- And to to we bit QX, what wouldn't FX it that in little not get headwind relative saw of QX relates we expect in less as skis kind QX. wouldn't to QX. in get here. weather saw QX my

little not So . it's expecting we -- it's a to I be wouldn't there. sequential bit significant. But again, of going improvement are say

Trevor Williams

a over guys assuming on it. for how then, if on Got ultimately, then you view curious, outlook, potential that you you have that there's within accounts file Okay. Discover, the and And there that could Cameron, closes guys, what CapOne updated time? impact medium-term for And even any relationship. tailwind just assumed

Cameron Bready

and we a our them question. just One Obviously, great partner Yes, Capital ours, just prior their is agreement with renewed long-standing Discover to it's a them of announcing transaction.

Look, So but partner too I can that into all of -- far a I is can't partner get long-standing a been say they've long ours. conversation,

through We have they're they'll accomplish, be clearly a trying great aware that relationship expect We're And of to those ultimately merger it what guys. Discover. the endeavor. with successful I with is that think, with

capability. would is just around last they've ecosystem their built And sort our thing I say the of entire

think we and a One of for we our approval things that, for relationship the for with positive sort So to ongoing that business. One. term, obviously the just as Capital given we're a process. successful, will be regulatory extent in Capital news us to the combined our still longer think Discover of think they world, future the around forecasting it are into our positive outlook be premature But we But sort about little it's that's

Operator

is The of Kupferberg coming America. next from question Jason of Bank

Jason Kupferberg

up better year ticked and segment ask hair. guide than to the up were on the bps which wanted by It XX like margins. I full the I looked in quarter, think expected you a Merchant there you was

the some outperformance. of drove what just curious So

Joshua Whipple

Jason. Yes. Thanks,

in so look, then say were some QX. expectations. is margin better better and mix, saw do I well, with initial is than performance slightly more to in expansion the the We be outlook execution. benefited consistent flowing So what in we would our expect overall from revenue Egosynergies quarter QX strong We

expectation our basis So you be as up for year. and merchant rightly did XX the we in do margin ahead pointed XX the point that basis go expect points we range. raise to out, full But for the to

think to I would And you of where if about saw say, XXX compression of margin XXXX, -- you go QX the comment back Jason, basis only other we if points.

we back. last quarter-over-quarter, seen were we we've and do, the we've you margin X going done what said or continued to go sequential quarters, Over X if exactly improvement

up year as the performance QX. -- lot we're XX. margin So guidance the to in And really full for the in with pleased us and confidence raising said, of I of a gave

Cameron Bready

there I more to are margins seeing where sort would we And Jason, strong. thing attractive further just business And growth of of our remains add, obviously, where growth areas the expand we're only in well. sort execution as in room have are business the

largely margin higher and in tailwinds merchants, for through So the performance expectation kind think much now to Obviously, of the that we QX on year. the very particularly track pleased kind the slightly we've worked of EVO we're with that integration. for deliver full

Jason Kupferberg

And software just of on sale Okay. then the in point bookings.

I think I quarter. saw that was up XX% in the

been number had that you about Day an given XX%. at the had up was basis I LTM it Investor on think

on given what's key the pipeline kind code for obviously, quarter, can forward? the seeing, growth lumpy engine ZIP I this sure a Just based mean, a is overall be So going in segment? it but a I'm of you're reasonable

Cameron Bready

It's market quarter, and products software our and we think bookings vertical across Yes. strong suggests point to else much the fair of obviously. question. And We sale what a in anything and capabilities a I the marketplace had is that as as businesses. right have solutions win

solutions got and have we a right the obviously, in of we the a belief, confidence our of we've lot have marketplace. lot capabilities, for that So

be they lumpy, can quarter-over-quarter. your good very So point,

That's an perspective. to see On trend XX%. that relates negatively conference. . The read it strong looking wouldn't growth. another bookings a growth for that this out We we're bookings as performance overall But across QX much to matter obviously of or what the to that basis, called or we quarter from X portfolio a I morning businesses. double-digit positively had reported So was at it want investor LTM very we strong bookings obviously, is we too into we reflects marketplace. the right to win digits, products level, into see that the 'XX channel. at we And our get have is obviously, underscores particularly the 'XX the that and that outlook delivering if commercial is in of and healthy as what by that kind success that kind and have driven think solutions well we double ongoing that merchant and I acceleration we and of productivity going in into the in be that good, to keep

Operator

question coming today James of Faucette Stanley. is last from Our Morgan

James Faucette

to that there? How what and think to just specifically last the just that you then be question us any that's should lumpiness. have help good wondering attrition, if disruption looks we over the up of can we want anecdotally, like. that sense I least that thinking sales how what at that a with so replatforming should lumpiness follow what on about happen in that motion sensitize around of may kind what rollout we that -- time And POS -- of normalizing about

Cameron Bready

would overall There would expect frame kind that I know Yes. Look, time one on vary the of performance to don't conversion be a to about it's of bookings the say I bring to from fair question. I quarter next. time of frame. lumpiness their may new talk business, lumpy. talk are I the sort lumpiness, of about And when implementation people that I

Obviously, to bookings a I effectively. deliver around We . I from portfolio So trying as one the we We bring to of here. the that we balance performance want to globe. be capabilities best to the bit markets in even platforms, to in POS want different would business able a have we're want variety today right and continue to the into we expect all replatforming be one unified the vary to next. want we at little particular, consistent point-of-sale deliver managing the we're can a the common to grow the it. But that strike would within matter. to quarter say platform. about as move may if to more think consolidated We same across operating business all environments the time, scale the

solely we're market we're So our of some forward kind a have matter, platforms demise as as the again, obviously, align that of platforms. net strike and and last to go what's that to outlook largely, we 'XX and work trying going balance We'll on to implied align capabilities existing to as At go-to-market the brands in 'XX that's we month. but continue platforms point, with we in legacy kind shared time. focus to move we new selling right consolidated 'XX,

Some I work 'XX from described. doing just the impact in of that is the

flow see 'XX of done we'd So level the 'XX realignment expect done, get I and same benefits unified around go to we 'XX see and performance I more the we see platform the motion don't start to capabilities. common the market through with know and replatforming expect in a that as of that would in 'XX 'XX. to to we in that that and

James Faucette

that. you to up softening what trend be get, are trying could quarter and -- of of I there. what on -- sides there and more Appreciate the see? SMB the And guess, matches But then to it. macro that seeing if remind and maybe I with you ask view was And That's kind both some happening that then on kind on -- X%, activity missed I'm great. commercial a this. last of Got wanted you volume just I of that us of the of sorry growth can your

Cameron Bready

say good in was a X%. me, QX in I it's Yes, -- QX, would it question. excuse

performance. to about it's relative So X point QX

I the and talked of September of it's we broader lesser weather-related think as a called before, overall, economy some then degree, the specific we time frame. in about to out more the impacts kind

already, kind relative we than a stable sort said macro largely little in QX a the in better of of in the saw absence environment frame. think September, looks and broader I of fairly what to weather the As October the time month impacts that's I

much from I a we're read in trends in to relates of too seeing activity would know don't that So terms as what we're seeing versus issuer SMB. I into commercial it. and it what

larger businesses card the we're overall Yes, towards think programs. macro operating skewed it's but spend be to spend programs are relative there, think given businesses SMB issuer, reflective willingness I there their just that's to to you in. uncertainty are is today and our for that some going commercial that If where more largely of running commercial in about just

seeing seeing volume and rest in you thank for SMB just the degree, broader reflects the I the of that of think very in hope Payments, morning. on a the trends here this . behalf joining has I we're of U.S. your we're much the Global U.S. well. Well, us marketplace, great as outside kind some both in everyone day. largely to markets

Operator

thank for your gentlemen, and you Ladies participation.

and the of your the this or may at log You rest off disconnect enjoy lines your webcast, time day.

Global Payments (GPN) 30 Oct 242024 Q3 Earnings call transcript