FIS - Earnings call transcript Q1 2018 | Fidelity National Information Services, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the FIS First Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. Instructions will be given at that time.

conference recorded. this reminder, a is being As I'd Gunnlaugsson. turn the to Pete call over like to ahead. go Please

Peter Gunnlaugsson

Thank you, morning, XXXX David. Good earnings first to conference quarter FIS's call. everyone, and welcome

Norcross, today's This Woody Woodall, with Woody with Financial X, being today release with with Turning today's will will conference the Chief corresponding presentation also Chief the company webcasted to and are continue highlights Officer. slide for Gary call and Officer; is Executive President on fisglobal.com. news begin me results. call website our Gary financial and and quarter available at

Moving will Materials contain future of release no to I Safe events, whether the supplemental provide update Harbor required to GAAP any today are as statements to information, SEC. other today's as slide and by as law. in obligation to a described attachments X, slide the the remarks undertakes order and meaningful forward-looking statements. in uncertainties financial a release are company you references periods in the more to statements and between results in risks comparison provided new language slide. to to and will Reconciliations or forward-looking filings These of press press refer appendix the except result the otherwise, measures with between subject the non-GAAP presented also the presented. the on non-GAAP presentation. include the The

the pleasure Gary? it my discuss over is to X, business Gary Turning now the quarter. the slide for turn to to to highlights call

Gary A. Norcross

the relationships; exceeding have line Based factors driven forecast, exceptional been and delivered Woody robust of and execution to the sales earnings our growth and thank the very by a segments. we EPS Key our through across momentum continued increasing guidance announce FIS and clients be the a higher quarters; expansion of results revenue, past you that include accounts; on delivering and client Pete. several IFS was for existing year, and profitability GFS our to Top the and new joining volumes pleased Thank quarter expansion. you, balanced growth logos. very start will discussing strong client and margin these for I'm for full-year. Good today morning expectations, our transactions of us.

We to globally accelerating by be our and pleased continue services. the for market products momentum

revenue XX% Turning within our $X.XX quarter, grew increased $X.X for results earnings for execution per strong of driving over adjusted strategic margins the our our continued to share We XXX to areas expanded billion. slide in in basis to points increased share. delivered X, X% plan, by EBITDA and efficiency investing and the per We focus operations. growth

turning on We have momentum into our closed strong deals expanding by demand further our and pipeline. year-end sales capitalized successfully

volume X% organic were top the Demand growth experienced momentum revenue the quarter. sales the Digital our Solutions. line segment we saw strong quarter. transaction digital quarter. for Our adoption Integrated end-user strong platforms. of solution Wealth Solutions increased in And more Financial particularly we remains across verticals and key business Retail robust, Banking, in previous were QX for in drove and deployments our than growth building on banking the Outsourced

non-strategic lower at was from by divestitures in Core especially businesses. post-trade points, buy-side the capital the organic transaction mix top global higher businesses. volumes growth our this segment high Margin over Our results. as the growth X% well driven processing offerings, institutions, impact license and quarter of Growth basis quarter. from fueled drove line especially and market delivered revenue margin and for GFS XXX segment across through of diverse margin IP-based exceptional and strong the as banking, of by multiple was across within processing, offerings expansion positive

provides total forward backlog insight Woody speaking of which forward, Going the revenue entered year backlog a contract. strong We under we billion, disclosing into to are $XX.X visibility. this revenue revenue provide the about will metric a with insights. new additional

reinforce execute to X, FIS. to our includes plan clients Turning strategic that meet offerings and continue for to our significant demand executing and and in growth. drive client actions modernizing slide transformational results we This to investment on near- on our our drive continuously long-term

Unified cloud increase deploying for provides Feedback into of results nearly modernization for with our deliver, Digital for that value and our and solutions types; solutions strong gateway, on solution strategy clients our online financial and robust our delivering Connect, omni-channel in on get Some delivering will and and modernize are ago, to of provide coupled processing first clients detail power are strong next-generation Woody APIs tripling a delivers to with the digital that and modern these them for transaction to and provided results will growth, robust and the pipeline, new creating underscores Code demand continuously now global our for X,XXX proof translate strong weeks of our strategy adding line learn investment across making XXX feedback, more prospects and believe and be platform payment cloud-based clients; experiences and the offers our with positive that confident their confidence strong partners efficiency events. of our clear XX% to scale. that the competitively are This show hands-on hosted help than decisions, quarter investments reusable to solutions. post-trade and we solutions, investments has and are very about and the are three quarter on than new a solution more market, additional to financial built for future. conference personalization, consolidating one at our deliver market our remain sales into technology large into Payments our results interest from venue the very our bringing banking This nearly sight drive for core into FIS overwhelming strategy X,XXX our for gives for demand, social beyond, platforms in to of private strong mobility client which We that banking been clients, modernized innovate clients One year. performance; bringing in we investments us with all capabilities that long-term our of for full will and Woody? speed market environment. our provide delivering shareholders. more goals we APIs Proof build in integrated we with services; XXXX which and returns agility the annual XXXX continue which engagement to our on ability capabilities our our consistent user the common complete payment experience include: components capabilities; differentiated

James W. Woodall

Thanks, quarter. for Gary. begin with summary I'll slide on the our consolidated X a results of

reminder, reflect basis results on million. historical assets. increased the and share. to on financials comparable demand XXXX to $X.X basis. EBITDA first adoption share XXX with like-for-like quarter, adjusted a improved more XX% year margin sales a earnings expanded and first markets quarter per grew healthy increased basis ASC increasing an revenue and to set of XX.X% in entered As a We're EBITDA We the X.X% the momentum. of per focused points $X.XX XXX and seeing now $XXX a organic billion X.X% our In the to

model our have strength our months. last sales Our first had and the success business the quarter over reflect results six the of of teams

basis versus $XXX first Moving and million to slide points quarter, X.X% EBITDA to grew EBITDA in to XX billion the to $X.X an grew the revenue quarter. in on $XXX X, IFS prior-year organic expanded XX.X%. basis margins million

the of XX, as positive processing transaction tough debit for fees, This card driven Payments Turning solutions. business, well by as new production higher growth some and in the volumes. and slide declined to the healthy was our grew X.X% accounts Wealth with primarily saw Banking X.X% the We and driven positive signs volume wealth comparable. termination year of onboarding remainder by the business fraud quarter. for lower license performance a

for new mobile to and increasing adoption, full small low-single solutions. expect continue quarter. for onboarding We Digital Growth the our grow, and by and client was the X.X% volumes Corporate our platform, for year. grew confidence primarily user business these visibility volumes digit for higher us giving to driven growth to

saw our within Treasury also growth Corporate strong Solutions. We

fees period. were prior-year at in $XX As relatively expected, flat in term million the million $XX the versus quarter

consulting growth year. this business. our in remaining quarter Approximately XX, while slide in an on GFS of was the continued revenue to first grew expansion the EBITDA removal million. late and XX.X%. operating revenue by Margins business Turning million, $XXX half the grew reflects X.X% in driven divested basis of higher-margin $XXX to quarter, basis points to to expanded of expansion XXX leverage The last our XX.X% organic IP

of the with margin segment. pleased are We of consistent improvement profile the this

Wholesale quarter, we buy-side the suites increased business group. institutions. our to X% in grew solution license for with start XX, our slide and strong pleased for Moving growth We're space the the and to global sales and this with saw year very across Institutional the volume

growth resulting of core in acceleration a Asia-Pacific and for primarily call, in sale [ASC geographies, quarter and growth of banking confident X.X% of year. X% the in year XXX Europe. to international GFS the particular, back-half outlined all in of across the we in license expect not in based full X% February on grew do As Banking an volumes large growth second similar transaction by our and the driven revenue and the remain Payments XXX]. timing growth higher We

The and of $XX reflecting the first for an cost EBITDA corporate million. $XX period, $XX XX, segment $XX compared reduction million, Corporate the revenue loss include the quarter in slide million X% management. Other Corporate results million a of and Other to with of in was continuing Moving to prior-year quarter expenses

XX, the cash slide was Moving quarter to for $XXX flow million.

late remain the outstanding extent, $XXX average quarter our XX% flow approximately of To our impacted interest XXXX. flow $X.X shift contemplated XXX% free to Hurricane was of confident tax approximately debt also approximately rate and Despite full-year is X.X% was into flow as cash March timing Debt of impacted quarter capital. of cash full-year The working we the of were approximately by was in payments Irma these which cash XX a in our fixed target weighted in lesser primarily XXXX rate. million billion. by one-time forecast, is headwinds, conversion. total of from a related First first

the XX%. quarter for our was rate expected, effective tax As

For approximately an existing repurchases. in quarter XXXX, dividends share approximately $X.X we April repurchase total remain to shares billion Approximately $XXX the approximately X.X repurchased shares returned million the million. we for share and In additional year-to-date our million shareholders to $XXX We our $XXX through dividends our to million for repurchased million million, bringing shareholders million shares authorization. million. X.X for paid X.X first $XXX $XXX quarter, for in and

of be end this the Finally, quarter basic will contract, the at XXX revenue the weighted revenue average XXX share begin million. count is and was quarter, defined recognized Starting under as backlog which count and will backlog. diluted Revenue future we signed in periods. our our million share is disclosing

As Gary billion. current $XX.X the backlog is approximately mentioned,

of of our the XX% backlog recognize recognized Over months, revenue XXXX expect of be remaining revenue next to approximately periods. two-thirds will about this the XX in we The or future one-third guidance.

revenue first Our consolidated what previously with line the for figure in we was quarter messaged. is recurring had XX%, which

to announced adjusted are morning that our Moving XX, slide guidance. this EPS we raising we

share, share full-year performance now growth. per raising first about given we expecting which strong Therefore, to quarter. XX% adjusted guidance per $X.XX are are $X.XX XXXX EPS Our was to operating the full-year we previous of per to $X.XX the XX% share, EPS $X.XX representing in $X.XX

guidance. We increased are our share earnings in per full-year confident

does Although with year, quarter the very XXXX. are we pleased not of a one make start

our cash remainder strong leverage service model to of top year, will investments growth. a value-added business and the consistent we predictable client sheet. line to flows significant market-leading continue healthy the and balance This produce solutions and creates in maintain For

you to XXXX cash in us That next Our the Day York questions. may drive to for return (sic) growth our and week, remarks. invest cash prepared future City. and Investor Tuesday, margin excited see shareholders. X In for ability now to at [XXXX] strong line ongoing to concludes expansion Operator, we're flows open our you New closing, May allowed

Operator

from question of with will line come go Please the Koning And Baird. ahead. our first Dave

David J. Koning

guys, job Hey, Yeah. again. Great

Gary A. Norcross

Thanks.

James W. Woodall

Dave. Thanks,

David J. Koning

going the quite think, in were a Yeah. I And year. was as the I of And did of than think in right remember closer of first to the even slower supposed guidance, growth first does the through be I from year, little higher And just QX from steal that QX? margins of a may of too. growth not dynamic? that the to QX, lower half margins – about be to the Maybe revenue of drove good at revenue but the the expected momentum at rest maybe kind right, guess, end? all, the the end rest the as rest Or of bit growth the what keep it if be I little than right year, it year top-end the better you so whole top-end,

Gary A. Norcross

Yeah, Woody and a in in strong We no, good let add. very I'll had QX and really good across QX board. sales had into sales well. came really It We Dave, start, had the QX as QX.

Payments and cycle. various that had long of did of As the we there's then call, and long know, back an But sales, of the nice also as GFS regions. the onboarding on team talked us because excellent for in we a you Banking our prior there's gives most that the out confidence sales half a job some year, deals cycle in in license

see overall SunGard lined the finished programs while program, had up. strong all We completely continue our on the we finished to we we've momentum synergy not good synergies, of had

we've of those year, last onboarding So, year we're and this of – through that's the actually generating back on margin. into results some the and half

well had we than high quarter. nice across board – very and as volume, expected about good Woody we're translates just just into and talked So, improving in just so that a transaction very we our that revenue higher the all at margins. really really QX

James W. Woodall

better we but we That's the guidance. better some of incrementally timing in Yeah, Dave, the certainly raised are and full-year. EPS QX talked full-year. we feel think if about, There both top-end about about feel why items you bottom-end incrementally certainly we the it, about

David J. Koning

And you. I guess follow-up. just Got a

figure now? top-end, As X.X% and more of the rest guess, should I later, the in and backed thinking like to you mentioned because QX the that close we kind is what on but you're QX, we in – think stuff, X.X% about out year, it QX, it timing can to issues the for are be that is of you then above

James W. Woodall

I would on QX. say, consensus of for more top estimates directly we're right

David J. Koning

That's you. got you. Okay, great. great Thank guys. job, Well,

Gary A. Norcross

Dave. Thanks,

Operator

ISI. Next to Please go Evercore the line of with David Togut ahead.

David Mark Togut

on Congrats the morning. Good strong results.

Gary A. Norcross

Thanks, David.

James W. Woodall

David. Thanks,

David Mark Togut

The Are the drivers Institutional should X% X% organic. year? we a and of thinking behind and quarter the that growth fourth versus is for accelerated the the to sustainable business number rest Wholesale up be about

Gary A. Norcross

team Well, those product let good is it We're sales about very We've where sales had really talk and from executing. demand pleased channel. strong the me Institutional for across the Wholesale lines.

especially the we're in of they cost a looking As total of X built we seeing capabilities Tier of talked customers, institutions a to where lot ownership. lower past, now those those David, lot their in-house, they're

our You've seen model the and sales SaaS also post-trade, and group. across seen growth but that you've also license in sales strong utility good

nice diligence, just we it and really really saw market So, this with conditions all but it's lot it's the driven by a being disparate capabilities due SunGard in to of coming cost really people lower ways ownership. overall of are together for to that back forward office through pull effective with and front, the sales channel, just the middle and more capabilities looking see

been has strong. sales So,

because some the the business. very executing growth I&W but closing an very pipeline we're in pipeline pleased and against to we nature, You are that time, although to and more pushing fee the Institutional business rates out model the demand more license that level continue over with in get lumpiness job and a see Wholesale of in SaaS teams and will the we strong excellent do did that and

David Mark Togut

it. Got

call. dividend? you willing demand more end-market spend constructive seem Are the U.S.; being to about the tax sort to demand the of banks in on than XQ any tied increased cuts that You seeing more

Gary A. Norcross

frankly, little QX, one – make in had strong really about the improve. and into good us does a two Well, good it us. gives in seeing our little quarter feel a and into in to conservative. strong us quarters The momentum sales be difference which like We there. but them lean pipeline make looks more going row, what a market now forward conditions QX for we pipeline we doesn't at looking more We've a sales times frankly, can demand QX, saw

do improving. So in demand I now, markets right think are the

James W. Woodall

more I out both XXXX gives And the higher really us and and think, years, that back-half importantly, in visibility David, beyond.

David Mark Togut

Quick it. final Got question.

alluded and beyond to beyond? margin What those drivers those initiatives are and initiatives, expansion additional XXXX You SunGard. are some of

James W. Woodall

Yeah.

we of one could of next data but see past center factors week, future ability consolidation Phase is talking beyond margin expansion. I and the in the drive we've certainly to David, the traction to-date, drive that one of think, talk XXXX. going things been strong the seeing program about that that We're about X and margins we're in more program to

David Mark Togut

very you Thank Understood. much.

Gary A. Norcross

you. Thank

Operator

go to line Please with And Incorporated. next the of Brett ahead. go Huff Stephens, we

Brett Huff

a on quarter. morning, Congrats guys. Good nice

Gary A. Norcross

Thanks, Brett.

James W. Woodall

Thanks, Brett.

Brett Huff

bit Can do think a you growing, sense you had you some business? I'm et about of handle kind that's products? around. little guys about questions of We've how trying a get digital And trending, to revenue? cetera, of consider your kind any digital guys talk total your What accelerating, as

Gary A. Norcross

haven't necessarily the for digital. the Yeah, of grower us strong very, disclosed exact very been a It's years. over revenue we

about Digital talked approach way all dating out really As and to remarks, new omni-channel will capabilities, we've we're digital, an prepared to my third-generation I've back frankly be deployed our is in our just the digital rolling been that XXXX. which One

think strong across market million the great we're XX We've true about And example, to our leading with share us prior and banking very consumers more omni-channel, running, be also has upsell existing and a mobile for capabilities out. really continue capabilities. this app. take experience beyond a our client us that's clients, across we're Digital for continued for moved on calls foreseeable future. continue moved rolling opportunity to grower excited just has now to next-generation our for We it's but our banking mobile than strong going disclosed But base. we the to see demand really

Brett Huff

your look question where that assets, – add a of compelled Or Where you of follow-up products. as most you across to portfolio technology most you would a really to? you and My could? is have add lots is like big scale if company you in guys to to are hole feel compelled broad Thanks.

Gary A. Norcross

– fill, think trying Well, for say very across from we product would when Banking, verticals we're us, about there. Institutional a that Wholesale, little we've gaps Payments, when think got to we Retail gap true and various serving, I our

did You've Management. about years. seen something real-time last on we several example, feel in ClearXPay good us honestly, made few portfolio. over very an the We with investment, the fill for a We payments. But Wealth

the update consolidate, you're about talking in our be standpoint, those instances and revenue One scale the adding things in while for two, backlog sight, world, capability. we of we'll down especially shareholders talked week we our always sense scale that line we capabilities the a important and really one next about of us which next-generation to new to an frankly, in some do the – four investor we will tremendous some us company. any feel allow the three, of interested is to today, talk market across made and From bringing three we're it – hearing be if we'd about verticals would have scale's processing for scale in as of platforms

Brett Huff

guys. appreciate you, I Thank Great. it.

Gary A. Norcross

Thank you.

James W. Woodall

Thanks, Brett.

Operator

Schneider comes Sachs. the of line question from go Please with Next ahead. Goldman Jim

James Schneider

on what kind really respect is terms like you more clients? something it that's Maybe terms a think of customers, little you sounds bit of of of that for picked terms Thanks taking bank the up afternoon. in also, discretionary your kind there could incremental bank Good items to outsourcing. my at landscape? see customer on the Is to conversations you consolidation Gary, And with the in both spend of your of willingness with M&A in update set your broad outlook maybe question. the us then

Gary A. Norcross

both do industry. a opportunities think people in see are We're fairly seeing our the a But our stay play. increased it we conferences, Frankly, valuations size a closing. sales that with see just exposed of to We're next ago Jim, much great as standpoint, got which to shows come said, right? three we'll just in our do year-over-year, of demand. We the channel I our the it's I that to up acquisitions, up in discretionary theme first enrollment, consistent new getting forecasting not through start consolidation Yeah, drop on one. will get tremendously and company, three expensive, XXXX are consolidation demand to giving one weeks into large was coming capabilities. I industry. in run clients it willing their consistent will user talking at as another that those We various completed, we as as to a multiple are travel although do, And we So, steady, question. banks also think in do consolidation dollars look spending weeks. more From me actually

would is indicate So, demand there's of quarter two into a last we're well. couple growing definitely and the that push quarters things over that as seeing the second

the in continue of the to So, Woody at of going valuations too fairly and you'll also continue significant high in remainder I rate. don't year confident we are going to think a on the that a pretty rise just is demand assuming But to continue. see that that industry, consolidation some

James Schneider

FIS, of your think helpful, thanks. share where could view on kind of buyback? just valuations, terms I&W And speaking to for of thoughts maybe can That's M&A acquiring you specifically businesses kind your or M&A follow-up, you of relative updated us that any maybe in a landscape targets, targets whether businesses, other give complementary the or valuations? attractive on And be be expensive there as areas merchant

Gary A. Norcross

Valuations can anything there you we're other by we value, make could M&A opportunities high. it share verticals we with sense. Well, we drives of acquisition. are know. you three the are a telling those buyer. be shareholder across In can also activity that SunGard indicated look Payments, can certain any what is, confident not across But don't do Institutional look and in look would and tremendous Wholesale, Probably can we we you Banking, Retail words, across and mature as I'd that

have, and our for organic we're on margins. very So, increasing very our our we we're expanding strategy growth in us, confident confident

brought those an So if to our broke interesting, us or that we made opportunity presented shareholders, value found a and could a sense, itself, an that we verticals, or capability do to it. market that really of lot but consider we product existing adjacent new one and – us return of into

James Schneider

you Thank much. very

Operator

next with ahead. Fitzgerald. Cantor And move go Foresi Please to we the of Joseph line

Joseph Foresi

wondering Hi. M&A an get all we retirement the changed an could your at of if and update on I was have debt being less with plan, opportunity? targets

James W. Woodall

No.

in out we $X.X We expected. based XXXX on be So, closed which up slightly growth. ticked our about debt. QX, with That slightly in down down year-over-year was to billion anticipate come aggregate debt to leverage EBITDA and

debt to of we back as shares to-date over flow the We as course and So, that excess will at cash – pay down continue slightly year. a year-to-date, of well. million $XXX of use the about look we bought

Joseph Foresi

the stand I'm then, update where data us can margin Got the in an on the give anything the Thanks. that. you can driver you Maybe think, us margin hope drivers? Analyst past. on top it. of just center the not you front, with And I remind Day. stealing has been I consolidation from

James W. Woodall

been I Well, few more a from have margin lot a last synergy broadly, expansion perspective. think, of years the

That's combination main a the in of expansion. in the of quarter that back three of then, revenue of of margin expansion drive driver increased businesses. future beyond, divestiture margin and growth we've This We really XXXX as the our One, seeing had couple margin seen center high will certainly margin and a components. the traction year, consolidation and saw main low we data expansion. drivers some are around you of half

Joseph Foresi

you. Thank

Operator

from of Jeffrey comes the SunTrust. Please go question Andrew Next with line ahead.

Andrew Jeffrey

guys. Hey, morning. Good

James W. Woodall

Good morning.

Gary A. Norcross

Good morning, Andrew.

Andrew Jeffrey

GFS changed mix. touched sales. you, a to you I meaningful little in hear complexion also, much anything how of you little Woody, Pardon little in business a you And Can in to recognize terms is about think the mix revenue a – there side, on the I Is talk in license business FIS. the more bit historical license of that on me. volumes a Interesting sort volume, changes heavy volume? SunGard well sensitive regard? to on And bit broadly little in that then, is is the maybe bit expand as how that's than as have of you just in visibility

James W. Woodall

also a high is we've meaningful We base talked license we've business. have the revenue the wouldn't about revenues I in consistent recurring XX-plus XX% the very an of in say had had starting the percent. change in backdrop, No, We complexion are we but a saw look more processing terms at markets volumes do difficult you – the volumes. are what processing the front. to think I on in processing it see and how which as increasing quarter, markets volume in The broader the past the with little performing, but you predict, of what did of

revenue looking major what's in both the in we landscape about combined, the very type those So, what we good terms no or feel at have, but change of driving it.

Andrew Jeffrey

how period that's color of the and on And Any current into revenues, on the... Okay. you. grown of translated backlog historically figure that's which thank sort helpful, is how sort

James W. Woodall

That you, that we've non-recurring divested I in an businesses past. very realigns the testing, tell would would about has I revenue translation Yeah. XX% has to the back about similar, recurring we've some revenue number. which been up say, as our ticked the really the talked in revenue

going trending looking We new our it's relatively as disclosure, haven't much back, a in growth energy it spent obviously way drive line as It's backlog we'll rates. longer but going at obviously going to ultimately term be with forward.

Gary A. Norcross

Yeah.

Andrew Jeffrey

of for than me. contribution words, mix figure, in from sort last that let's the GFS of is say, first business, more similar little a – incremental, one to other In And is backlog in just IFS? quarter sequentially the as it

James W. Woodall

the I contribution is would say similar.

business. our As about on predictable you it's think very business a a Andrew, broad forecastable scale,

ability and terms terms of in our in there some license, lumps but very have of here predictable We forecast. again, to

Gary A. Norcross

IFS segments. remaining onboarding. and the really has various revenue But, at the revenue think agreement Yeah. rate, the in reoccurring similar point, as it it, Keep to on it under of and term business contract revenue very the higher based with is really right? rate in a about mind, Woody's that backlog So, reoccurring our you onboards much that

Andrew Jeffrey

Thanks Okay. lot. a

Operator

ahead. Glenn have the Greene with go Next line Please we of Oppenheimer.

Glenn Greene

is to to you companies wanted of macro just sort But the where you for products, about sales if nice the back question more little that. quarters, getting sets, of of go couple across I first Gary, are. morning. color sort bit service give you've the A really the of are demand track my pockets and us could talking more last Good any? the pickup there's acknowledging better, one hear seen Thanks. of you on to where in specific seeing environment demand

Gary A. Norcross

a seeing about number a capabilities. and we're the it's Glenn, new all honestly, Yeah. strong across pretty pull-through excited our We're good great question, of verticals.

you a were into the new were three doing – a XXXX. coming onto Over integration lot in innovation the of we of lot we last work of coming around a – market and but work on SunGard, years, doing also capabilities that's lot when

really growth drive a growth back cost our volume, several nice across seeing we've businesses We're office both out our So, of seeing of seen total lower ownership, of in also costs digital there. services in channels, sales to as but are their overall their people momentum. nice trying lot – and of

and into some new large of talked seeing institutions those GFS, into around we're over Institutional – saw today driving market. strength questions in Wholesale. our demand on we seeing core about capabilities, several and especially good across move we and As on good very components those traction We've some

the had So, felt have a a product such blend one great diverse always and portfolio. as we nice of it's about FIS really we that's that things

in and areas strength various their of Our and based in on can are given we our capabilities, our clients of clients those engagements. participate capability needs, our – investing various

Glenn Greene

kind accelerates think just quarter, of question to or growth quick the color in That that the for year. of half? confidence it kind got you've a back just a better within negative the some maybe like growth bit but Woody, got on that suggested visibility I then, and on low-single getting in of outlook But you you digit the IFS. growth one and what get sounded was the And back-half, of why the sort Payments little – for you've Payments Okay. in

James W. Woodall

about a I'll point. a specific license of fee Well, which a compare, We point QX. that year that a was about on term more was a We difficult headwind. had last was had get

and both X anticipate those that. underlying back-half visibility You We the saw year. getting add fraud you're growth, volumes seeing back, volume of into and those in into growth seeing points of and roughly we the are debit

the that's the mark year. for business think we Payments So low-water this

Gary A. Norcross

Yeah.

Glenn Greene

All right. Thank you. Great.

Gary A. Norcross

Thank you.

Operator

ahead. Keane Bank. is Bryan Please go with we question go Deutsche Next to

Gary A. Norcross

Bryan?

Bryan C. Keane

sorry about I'm that.

about got thinking your better increasing sales, revenue demand, recurring all better than revenue decided we've When to to But you guide. expectations raise strong, seeing the potential seeing you Just pipeline's guys you're are into guys the upside that the not stuff translate line? does good top a backlog.

James W. Woodall

about were XXXX our was I X.X% they're accelerating you, further top-end the us it back-half It point we're if around Yeah, into range in quarter, and year. then We very think within acceleration we've would onboarding, higher view gives still us sales the about. talked beyond. you of the and when confidence gives of our this in the tell a also the year And good while – relatively for of conservative.

feel and about, talked we're but a ahead make year, we've certainly of one So to-date. as about year plan doesn't the incrementally our better quarter

Bryan C. Keane

Okay. on in more because guys in Helpful. quarter. the should did the we of M&A Is you aren't much buybacks? the buyback finding stronger then, terms And expect return front that I see capital and

James W. Woodall

like We're be. just about of and to don't where it got in good feel We financial our fit buyers. disciplined strategy, is sheet's buy, buy terms leverage be sense. M&A to I to but balance being and our got to we the about our it's healthy. We a Well, like we – feel need of make part long-term to continuing deal's think strategically

see So with a think year-to-date that's I good $XXX evidenced a the absent And good share we fits M&A would buyback. anticipate of of over million that deal valuation the year, by buyback course share continuing strategically. to

Bryan C. Keane

for color, Great. Thanks and solid Okay. quarter. the

James W. Woodall

Thank you.

Operator

the from of Please comes question Cowen. next And line ahead George with Mihalos go

George Mihalos

strength? Good vertical strength maybe bit is coming morning, to at a maybe it little instead the from Gary, banks a guys. X international of the a dead you of Not those horse Or really from within standing talk community looking business, out around banks about versus but beat smaller where domestic? Is perspective, patterns is can Tier broad-based something spending the of some of some and versus maybe it sort in between groups? your

Gary A. Norcross

by, processing, of especially banking And SaaS there community comments, make some Well, about the out, George. it's domestically SaaS confidence. Institutional we a really size to which core I us I'd about this the debit willing it's be institution the gives we to of to try we're and for I've banks something outsource I it's to post-trade, Wholesale, been talk continue see stronger standing in model. to and a increased or of that's that's domestically continue a banks, credit think, continuing in well. demand would that, of we're those increased XXX% outsourcing lot mentioned talked to larger and prepared surprised of one demand in seeing lot my We've What whether on outsourcing trends, things the whether both those regional those a and an their capabilities remarks, in a if consider internationally, need markets but that this virtually in banking, as product, whether see

we as in market, license the in that especially George, Now GFS short-term, expect, fees. have more you

So there's a balance.

reoccurring As model, higher SaaS overall our the GFS, could continues raise that years Obviously, go lumpiness our will pullback not which backlog, much some people trend. and by in that revenue fees, our more pleased to as but up in license us a very some into revenue gives into reoccurring of actually company, cetera. to we see we're move et but visibility, certainly our in the only multiple quarters, out much,

last most me. that would I we say just in And to standing out is for several probably quarters. the that thing So that's continue accelerate the trend the see

George Mihalos

for you XXXX? fees can what full-year just Woody, expectation then, remind to the is And relative for helpful. term That's us Great. the

James W. Woodall

Yeah.

$XX had million million our got Our the about expectation relatively for last roughly year. forecast is $XX year. We've We in flat.

George Mihalos

Thank Great. you.

Operator

you has a if and think, from a that the back, I to a the taking with our Credit question Securities your line bit ask I wanted Condra of wondered question. morning. anything Suisse LLC few environment from that do competitive I Good the Credit quarters my come last improved being will to with seeing more - thanks. know (USA) Hey, demand mentioned ahead. headwind. just And that, Please go about Thanks Paul I of Suisse. for Condra customers. you're Paul that

you evolved? that could talk and on about comment that's So, how

Gary A. Norcross

we're line. the participating competitive executing in, still we've sales competitive competing also very or run in the I products teams think quarters in as a the well market well. might the very we extremely are I our it's in talked into But No got past, think, product I've particular marketplace. we different what geographic matter and market region and we're competitors on depending shared,

continue them obviously continue onboard We and I sales regions, sales force that's force we as behind to geographic in But, speed. various reps to invest our market to environment to get we've I any the say, and would as to seen and not – Suisse - additional around grow another in continue speak of pay to benefits sales going Condra just change well the Securities but demand. our question Paul and competitive our just the up LLC well very Great. Credit market. perform in products (USA) guess, and And

I institutions of a lot seeing customers from reform As I Does you're in are planning underway seeing lot now? still a your feel you guess early? from budgeting to still maybe really stages, this years you think you're Or the two a but tax early. – impact it and year things of are getting like demand about now, of are think things

Gary A. Norcross

cut We grow people a mean, across expenses. it sales pretty conferences – just quarter a velocity. the QX lot is we've curtailing our the good when really first much strong the see Pipeline and across us in sales on very do travel are really QX was typically are increased that's really was a for have us continues the demand to I user quarter for about board. with strong in Interesting, board. this I increase participation, talked seeing thing that's on market. call.

we're a our so, all of conferences. major And nice increase seeing across

So, indicators as growing demand's to it's are you people in me for continue. that long-term as entering really all our But those would nature. be contracts going know, and good are guys feel into, we

to so, probably months, cycle the And XX anywhere months typically from in to sales closer X XX duration. is

onboarding are times range. Our a in similar

making capabilities. the commitments, clients big are strategic So, purchase IP-centric mission-critical our are these

(USA) so, And about time. the LLC Okay, Paul Condra Thanks. good we Credit great. Suisse Appreciate feel it. - Securities

Operator

And that was question. turn speakers. call our to our last the back over I'll

Gary A. Norcross

your for and you FIS. joining us Thank ongoing interest today in for

a We growth. to earnings quarter of year profitability revenue, are the strong start pleased with and performance,

for growth results. in additional I another Regis pleased York Investor accelerating to a to positions week Day. are us Importantly, about convene plans we multi-year sharing City look the strong our when have pipeline forward robust at St. outlook we and that for XXXX our details New next year of

Joining Operating that their business. for you Officer Thank our in their FIS and work Global clients. Woody because us the employees of and Solutions to Financial businesses running Chief world. clients Financial and Operating me for business; joining serving like day. of keep Chief growing leaders and of today. is to thank who for both be loyal our hard Officer financial I'd and dedication Marianne It a also like closing, our strategic Bruce on will and every depend continues our to our update I'd Solutions us to In Brown, Lowthers, thank Integrated trust empower

Operator

at midnight. at for a.m. XX this be until and will Ladies today XX:XX starting made conference gentlemen May replay available Eastern

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Fidelity National Information Services (FIS) 1 May 182018 Q1 Earnings call transcript