FIS - Earnings call transcript Q1 2019 | Fidelity National Information Services, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the FIS First Quarter 2019 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Pete Gunnlaugsson. ahead. go Please

Peter Gunnlaugsson

Good Quarter Greg. and to welcome Thank Earnings morning, Conference First XXXX Call. FIS' you, everyone,

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

contain release will obligation to SEC. refer as except remarks future statements. filings Today's These as whether subject law. X. Slide by undertakes to required to the are forward-looking risks statements, information, forward-looking harbor events described as statements Turning or the no with any company to Please safe The in and a otherwise, uncertainties update new language. and result the press other of

Turning to Slide X.

announcement. recent We regards to will our providing with also information Worldpay be

quarter's information As that such, of regulatory filings a today the also nor the solicitation and its Worldpay the forward. filings of discussed should call participants neither an entirety to is that in update securities solicitation and statement note my to proxy Please Gary? turn to copies the to easily it's provided moving of qualified with results. these obtain regarding our pleasure filed a registration SEC. SEC statement how over vote. to with offering additional today and is refer joint has by Information in first discuss proxy the FIS With Gary that,

Gary Norcross

We profitability the that our the am morning, FIS' you revenue, results to exceeding very announce start to first us. delivered earnings Good joining strong thank I Pete. you, and for and exceptionally Thank growth quarter. expectations story continues. year, pleased for

Turning X. to Slide

driven record and strong growth a consolidated of than throughout XXXX in continued volumes more by year sales sales and X% was QX. Our revenue of

attractive new remains especially positive and strong, which consolidation, Clients' further divestitures. impact strong factors our demand another in a exceed saw data for backlog, We year deal XX% increased expanded prior achieving Worldpay, solutions. very significantly compared early growth new continued markets. contract execution year period. year. FIS. gives the our also our accelerating track and which of announced growth These for in our of margins operating drove And us remain spending for Our we growth drives and These result faster-growing solid the on the plan robust center solid transformative of pipeline acquire are momentum create particularly very our as factors the confidence a sales, and more growth modernized positive on to than quarter to and for our portfolio noncore sales expectations. These overall to of combined total our in we with quality results, full value our

this Given year. for start, we strong raised the our guidance revenue

Slide remains future. on of to infrastructure our and revenue FIS into total our investing advance to solutions X. over leadership X% Turning the by clients' of modernizing the forefront

omnichannel rankings, these with that operations, underscoring IDC, enable named and bringing capitalized clients FIS recently more a digitally-driven, industry-wide businesses. open their leader our leadership innovation-focused X run on to cloud-based solutions group, as We have analyst their solutions American market their to position, investments. Industry digital of connect our the North efficiently and grow banking in in customers and impact

in cloud the proof consolidation the data advanced increased our was executing the U.S. gateway This analyst, drive our accelerate the industry also strategy most strategy, on organization. named solid our most by industry, to within API is continually efficiency modern banking core of API Aite our recognition and strategy center towards progress Connect Code deliver as Additionally, Group. among and providers solutions

X. Slide to Turning

our with and finance of very pleased to acquire strategic recent future the lead to we also announcement Additionally, Worldpay. commerce, are

As continuing significant historically while will and our years. accelerate optimize successful last discussed opportunities over of strategy leverage growth, margins M&A you revenue transaction we synergy million to of combination integration. this to provide This continuation three $XXX month, a synergies is with through effective

transaction few to and and will include X revenue profile am As innovative On organically accelerate new I received period of and new early pleased a regulatory of to merchants referral other creating gives a have solutions and billion our we in revenue of this and opportunities of we These drive from deeper the as for that broader waiting for reminder, on high-value Department the the to merchant combined offerings Justice for streams the Hart-Scott-Rodino filings just global over payment Worldpay growth strong retail expanded network; processing transaction. of the termination $XX have this trajectory. in institutions, immediate progress This such will and early confidence solutions global organic organization year. and financial solutions; in community QX payment e-commerce ability growing company, our termination high-volume tools, innovative are for X%. our commercial close with payments opportunities a share approximately day payments. faster growth which enhanced as us fraud a combined a revenue,

structure. as well to progress synergy our We goals. informed meet go-forward planning will in towards Until have making early you defining are good will closing, begun we and we operate continue organizational move and our we separate keep close. X are to we aligned Culturally, postclosing as our organizations companies,

X to for themes. Slide Turning key

now on segments. our Focusing

delivered segment and of Solutions organic margin X% growth Financial expansion revenue points. basis Integrated of XXX Our exceptional

exceed was expectations accelerate resulting from by new segment of clients Following strong we'll onboarding underpinned outstanding the throughout growth XXXX. results strong sales growth this growth in QX, as This year-over-year. to revenue for continues

our saw clients continue volumes also to and as processing increased very transaction well. perform We

as engage looking innovation and a opportunity of meaningfully streams Our channels. multiyear more in all digital sizes new us revenue customers digital investments are clients continue be strong driver to with for build to for

billion and digital personalized, capabilities banking assets $XXX more small bank its in example, to selected U.S. the than our business to more solution with One in For efficient a consistent customers Digital cooperative bring national

platform, modern to $XX branches leverage enable multiyear This addition, channels. a self-service Digital will a institution, One and modernize sales and billion digital and its transform core agreement in to services. who factor service bank the is banking key In U.S. strategy within to and is upgrading community capabilities FIS success omnichannel our its environment

processing IFS client very Our growth transaction the strong This combination with drove underpinned strong also logos, of again division payments by this quarter. and growth new was volumes. coupled

also our seeing solutions. are adoption in exceptionally demand loyalty We strong for

including successfully restaurants. For are expanding example, retail our offering we and into markets, new consumer-based loyalty-as-a-currency

to mass is one-to-many our model. our quarter, last noted strategy enablement deployment through our As innovative clients new bringing capabilities

strong remains will this for be and to and strong results QX give the pipeline IFS segment a IFS. robust summary, confidence us our healthy. environment Our In spend continue driver growth

successfully are opportunities strengthening on which We business. expanding are already capitalizing and our new robust

than Global will strong Our of basis by translate the very sales, revenue Financial current and new more of due and was for XXXX. almost for this Revenue logos growth year segment to and transaction volumes clients. organic reoccurring into remainder Much banking of Solutions results the relationships QX and revenue driven and expansion from growth growth payments exceeded delivering sales with XXX of organically. growth grew in our expanded to nearly margin increased accelerated X% plan results These XX% processing division points. GFS

selecting origination processing global with us to a European services For expansion. geographic as example, its support loan powerhouse and FIS relationship financial expanded by multiyear a of its payment its partner subsidiary

banking our also payments leverage our We to challenges. portfolio long-term to our support accelerating payments. ability a These market-specific and with card underscore global broad cross-border our expanded relationship brand, local ability business-to-business expertise with market to wins solve

solutions and meaningful drive risk in Our continue new revenue opportunities. investments compliance to

demand are and for throughout new of their We industry life cycle consolidated more reporting options. U.S. help seeing to trail track requirement the to organizations easily equities with good comply orders audit

a by services for relationship we result of As Prodigit financial solution. entering agreements new global the large expanded providers our three demand, into quarter during that with our

are We healthy. the Like GFS investment remains growth our strength and IFS GFS environment, spend the with markets of pleased within trajectory business. very our pipeline

minutes more an the realize X,XXX ability X venue of these our results clients We Feedback FIS. for opportunities clients. the learn to conferences. in closed We the than was we strong and the recovery and are for our service-level less our grow revenue transformation kind announced at at overwhelmingly attendees are gains of not are to providers the about confident significant in large America, many the to in hours wins to them more we this is of believe from pace. the show modernize, our first not throughout XX benefit from to that drive minutes, turn recently than and applications its to accelerated kind modern The hosted for driving efficiency into themes This to product digital technologies, a objectives designed committing using our offer we last on provided achieve are Where North this conference of lowering technologies capabilities. times modern first most our thousands prevalent positive bold were to business platform early industry, help for solutions event Based clients. of but and clients our continued demand. its agreements

long-term and with sales line which will Woody? returns robust our full our believe coupled decisions. our the to in the into and It our continue goals beyond, deliver with strong in provide clients XX. competitively growth, our are differentiated strong of results shareholders. value build quarter now to delivering our in gives into and us first our our strategy to This on sight and additional confident the drive Slide clear we for innovate quarter global scale. pipeline, Woody that to will Turning results also detail for very underscores on remain strong feedback, and are solutions investment year. our ability financial confidence We for for translate and XXXX

James Woodall

Thanks, Gary.

XX. to per points prior In increased margin revenue $X.XX organic quarter, EBITDA EBITDA the expanded basis X.X% share. and XXX X.X% XX.X%, an and share compared earnings period. to grew adjusted Turning per year basis to Slide on increased to first X.X% the

the a expansion for line was growth, This top margin earnings. quarter to exceeded year our and expectations start strong and

EBITDA IFS on points XX. basis revenue Slide XXX margin of X.X% organic and to with Moving expansion. XX.X% basis increased grew an

As execution highlighted last we few the mentioned, resulting revenue Gary growth. strong the have sales is in accelerated quarters

strong management wealth driven quarter. strong growth in processing see was Slide the by XX. quarter Payments volumes. This for to transaction quarter. with continues X.X% the Growth primarily increased and grew was primarily X.X% wealth by Banking Turning to for our business. driven another

solution Corporate strong payable sales and in digital X% grew year-over-year. and Additionally, integrated nearly small adoption continues new for and with solutions. grew our the quarter, our business XX% see loyalty-as-a-currency to wins

Turning compared year organically, while X.X% XX. GFS Slide to to grew grew the period. prior EBITDA revenue X.X%

this XXX quarter, For XX.X%. to margin basis expansion represents the points of

and expectations institutional We well. revenue and to continuing quarter group XX. These Brazil turn of previously Slide were driven positive team the group continuing were next and results large with than solutions the declined payments their the driven financial wholesale nonrecurring strong the X%, strong difficult this license results primarily in momentum to license XX%, by demand Recurring and with anticipate outpacing Banking a for These for for mentioned grew continue our about increased teams in exceeding were revenue X.X% year. to our The the institution sales quarter the Moving comparable. plan. better quarter. deals, execute and by remainder in digital sales market.

Slide to Moving XX.

Corporate incentive due X.X% our $XX by organically our with care and accruals and to health of loss benefits. for million compensation exceeded results an $XX Our the grew to related approximately operating quarter million. higher segment by Corporate driven EBITDA plan Other expenses

effective Slide rate about million $X.X as over $XXX outstanding March cash interest XX% the for billion year average flow XX the quarter, increase of to of weighted XX. was a Debt X.X%. an period. Moving was with Free prior

in for XX%, year. Our through with full the and shares million quarter $XXX for the approximately of quarter the effective returned and in the rate over tax to X.X for million shareholders $XXX million million We the repurchase expectations dividends. $XXX quarter was first in line

As with Worldpay share a the repurchase reminder, we have our program transaction. conjunction in suspended

diligence, XX In to the $XXX to estimates opportunities expect communicated like drive our sales million remaining on limited these in revenue XX-month regarding color $XXX have XX million leverage from recent a vendor to million the we an to with that to rationalization; post Over Worldpay during expect category have the and to solutions Turning proposition, interaction portfolio value market around to discuss efficiencies, little XX- expense of close, we facilities client complementary convert will months an identified to the $XXX first approximately revenue the due come are Of synergies consolidation or should we in we we add generally I'd sale. announcement. we plan in synergy will a functional operational XX. incremental million come million a including achieved to the Slide and synergies. costs complete on stand-alone about some data are savings, These and very corporate $XXX alignment. deliver required. by anticipate today, primarily in market committed driven be basis; with to another million synergies. what of but the center today Items also related period, from to over technology we have above and $XXX effort finally, through $XXX

As we on both morning announcement, on companies delivering very synergies. strong shared record and a the exceeding have track

mentioned, transaction close to in Gary now the we expect As QX.

debt looking markets May. looking capital early as are as a at finance transaction. and to potential U.S. both We'll be as prepare We European debt we issuance to the the

guidance X%. increasing Today, end market investments into for demand we sales are year, translating the we in revenue growth. our Last of modernization now solutions strong revenue to have making the innovation. and highlighting our XX. and These Slide and accelerating translating investments efforts Turning increased to been been into the have low began we are and

We earnings our guidance. are reiterating per share adjusted

of quarter for program. the the expectations continued for the by suspension is remainder being Our of our offset for year and repurchase the strong operating share performance strength

Turning a year to to very Slide for FIS. successful XX. This start was the

remain In results. for addition our on transformational our driving a delivering deal, clients highly M&A to teams announcing and operating focused

and invest cash our strengths value continue future top to to may growth to prepared remarks. exceptional the These will open concludes accelerating and expansion margin line shareholders. questions. our produce We growth, return That leverage for us line Operator, you to leadership for market allow robust flow.

Operator

Instructions]. [Operator

comes of question first Your David Evercore from Togut the ISI. line from

David Togut

good And acceleration to see growth. revenue the organic in

Gary Norcross

David. Thanks,

David Togut

revenue 'XX. the your of for as since for to growth of the quarter growth since IFS, the and fourth looks be This a organic 'XX; FIS strongest highest quarter second whole

look higher of drivers: my two? revenue strong this underlying do when question you So year. payments, banking, that this Clearly, rate. the next at you're the the sustainability they But organic remain or the you for for really lifting is growth year guide conviction have the can

Gary Norcross

Yes.

I are been sales indicating we've continuing ramp think, our up. David, to that

again, value. growth this total year-over-year see You once quarter, on contract XX%

be we working engines years. over very well. to for think, as So products in we've the investing are market and the The the sales demand that And seems services been high several you last to and it's think growth do cycle a organic sales nice, FIS long for cycle. the strong, onboarding we very businesses. future, long our a and for continued it's know, then But that projection existing

in we So QX on we last that's We've are. that signaling across a sales into call. feel had year well. good been year quarters, led about every We've where multiple and great as

James Woodall

David. Yes,

should a think acceleration. more confidence revenue If little this conservative of year us on raising the some revenue our one continued first the as and year, so guidance, out view doesn't and for coming of the you typically, into a normally make quarter give the quarter color you about level

David Togut

your core from to customer demand bank Worldpay's of corporate their merchant-acquiring their have cross-selling for services feedback received customers Understood. what you into And regional respect base? then with

Gary Norcross

as we'll from be Obviously, the complementary for our client FIS. clear landscape. ways address outstanding Worldpay us so base extend It to The the was as as as it's going close, tell see forward But they strategic combination. this they're getting I a been putting great unique see help innovate -- company from move this to of early They They -- help see ever-changing to on has our how address is to clients going see them market They -- enormously company. response what as future. and payments it them is in and supportive. combination. we very our to our a together and about all going excited opportunity the been very teams the compete a it to sales the feedback you, in has would combined it

David Togut

Congrats again results. on strong the

Gary Norcross

Thanks, David.

Operator

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

David Koning

job. great Guys,

Gary Norcross

Dave. Thanks,

David Koning

little called that of maybe But the anything know, was rest bit first I on you in guess, actually to that, license there unsustainable. better Brazil to I out -- was year. question the of a GFS in gets the I&W QX revenue sustainability, don't the David's the And Yes. all, just similar specifically,

that more just about what as be is X% we there was of when X% to in rest So year, sustainable? we maybe the might a then the rest of the about think think year? And not this grower the

James Woodall

Yes.

to I of anticipated. growth we the things. couple quarter. couple came couple think the helped year in of in had about a items of earlier point a than We a items by that consolidate Those for

a year. year, getting about as adjust those having about that locked be of get grow you about them worry we the down if closed we're it'd and we're their easier. to the for to remainder throughout talk you year and see out So excited GFS X% not Certainly, grower. But amount, the the so the accelerate of rest will growth certainly for comps

about We over the we raising of continue So we about feel feel course the end bottom to execute and to the good guidance good want the year. it. of

Gary Norcross

it transactions expectations for of team The was closed always this pretty resulted close look GFS exceeding between the obviously much When really team always that more and plan great have job -- sales some that in there's you very sales scheduled focused quarters. the because But in we the Yes. than everything really and expect incur we that past in stayed slippage to QX what did really, quarter. and our quarter. some in the historically, a forecast

well, really of as we with did going remainder year our us about think which, raised. revenue gives a confidence as targets into further the the they good job point, So to Woody's

David Koning

kind you a But sense. it's a guess just to a sometimes, And X-part question, EPS quarterly us Great. give I of Okay. give second question.

the up sales then on percolating you've also, So that? just there? JV, anything the that -- now broken anything did interesting And Brazil

James Woodall

base our really, I'll EPS. touch estimates consensus the to QX the that. say very expectations close right for on market And I'll now, are

models think are Gary base on shape, So pretty let and good I'll the in I of touch the sales in kind Brazil.

Gary Norcross

some But still continue in Yes. got there's opportunities bullish that we're Brazil. separated, combination, JV working still some just I further on. that It's transition sorting good agreements that'll get we traction in the on conversations. early. Worldpay Brazil. We're the have the think We No, we to with think good accelerate. Brazil And out we're we as

is on than Brazil coming there'll a market more So for that, Dave, but be us. great

Operator

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

Darrin Peller

Nice job, guys.

X%. with start then the this just back look to we off gave when and -- the gave of as deal, me were much at you Let up what kind you growth forma confidence? plus growth and the X% bridging going all then year to we being some guys on progressed. plus think -- Because way X% to X% up acceleration for has quarter's go about to the I investors questions targets revenue the bridging talked this having you still pro Was so

Was did X% So the see that in guys? stand-alone factor are X% you -- to a strong that for you outlook growth? you higher this FIS

James Woodall

you XX the probably. missing our you if points on is timing of models that growth missing together primarily were, Probably the delta. people That's Darrin. what side what to were business. add the seeing XXX growth that accelerated reason for piece of basis that, were and the probably of Absolutely, We're expectations had -- as Worldpay's expectations our to around

Darrin Peller

All right.

a and And shoring it do are sounds itself, third -- the see then question synergies timing it to It's I a sustainable, have should -- on of mentioned now on to great of see does color that up what quarter types and just guess I it mean. is sounds quick more deal. the banking you summer in good we So But the the you conviction the revenue is you being deal timing hear. relatively guys the you the like like And little be more synergies. timing. which now.

and with give conversations the $XXX perhaps context more clients over other little giving beyond detail of year in conversations X, of terms even above Just the what's can timing any you the and opportunities $XXX some a million million? the you more and around on color in us then

Gary Norcross

some I and approval been -- mean through We've for is we've us. together able plan, able release to to groups in, Darrin. to timings we shoring they're now our of early of start flow. as building how and going synergy yes, confidence bottoms-up the regulatory the which Woody's getting start important Well, to go and process a the more gives really some an milestone us point, up

see. very As of seriously. a The get work you plans as really know, lot that we like teams and to people, Like cultural in we about through ways. we've and -- to alignment the very the very we think companies, very playbook take have we similar combinations the a the which go implement both together. think these exciting to has been about in We ways. strong two between markets market similar is We clients

all allowed will point, synergy together. it you your has two lot our look think opportunities combined So just to there's and between that running the company we we get more a us just collaboration forward, as we and of put to of when tell them working closing timings. then because a QX then companies And in together confidence around

Operator

of Your line Brett comes next from question Huff from Stephens. the

Brett Huff

Nice quarter.

Gary Norcross

Thanks, Brett.

James Woodall

Brett. Thanks,

Brett Huff

already. is asked this question -- a little bit First about

give a synergies. we on how us been getting Some can more investors are questions from get detail little you the of revenue the we've to

market but of to that X kind buckets? those you close Can is us some easier revenue end in end market, and more us Just of the in on those to kind on you little give X acceleration of us market gave stuff a examples into close. bit detail that harder buckets. things give differences last part timing, the for breaking articulated the of You and a little and more end standalone FIS up

Gary Norcross

Woody so we how regards as remarks. revenue do you really so either the those And I of assets we prepared and the with know, we're to only to about and are opportunities opportunities, talk X in across can of real cover some on think companies Well, I side I some talking look Brett, separate operating just we'd mean, of there and across we're think getting go market as that, units there's exist tried and things. we But operating as that comfortable Yes. some much those his company. today, more we more do that -- to where

a even through, Worldpay mass applicability push through enablement then perhaps to strong base have So our strategy, capability the could think versa. we FIS to client vice that and

kind we of of easy transaction We've things we in those think around talked think how some perhaps volumes there's routing So fall the opportunities personalization We about about and bucket. and to things debit pointed the those some card and there. interesting some benefits. around

Just Worldpay's ability our merchant to portfolio. optimize

you as us sales company there's really short extensive it the broader So some the has take our term. to some products the accelerate will think medium that it believe a in for we number capabilities value it, about of where broader just about engagement, Then also examples those that those take in to and client client there's in will will things a across place people of understand talked interaction Woody help ability solutions number that relationship revenue highlighted script, the we for and either proposition.

our at If a $XX that novo strong simple currency, growth lot a with and I as have seeing something of merchants. launch, a across which mean for has we're merchants don't us now really opportunity we lot And to exposure a million a of think lot business a deploying de think as limited not our potential, a over a now reach. more is from X run well of rate you as there. million look huge. than as year, of that's there's loyalty But we adoption that you even about

confident the it's real that really And company's going that's reach there'll going either to So we're we side, like that just global where is revenue synergies. combine opportunities capabilities about drive this a just not there's on extension acceleration. the the these a we're in capability think building be to on exist, very the as go

the things where growth we all give us as look So confidence is. at of those just

execution. and another accelerated our growth, sales strong us highlighting Quarter-on-quarter highlighted keep GFS. throughout we'll really that just all course, and both for we was strong sales and very, year. Of quarter IFS for last very QX

to continue accelerate. so And you'll see base business FIS the

confidence. those give us So all

Brett Huff

That's One second both bit give helpful. that. and SLAs, to Digital And then center data consolidate even Is that how start give your competitors things little you. us other that to Kind be of Great. the to standard? banks of there? the like has been know a industry on might shot background you on your strategy magnitude servers. more important What's us the as us highlighted is a the mass important I out that against question your that bigger change the enablement, for across interesting bow

Gary Norcross

amounts modern modern I really our focused think is, benefit in trying you last important our And and it's I was -- tell clients year we've it's across What on investing those compute of architectures over intention. think highlighted digital. the XX% stats, and expense on consolidation to We wouldn't the not is that's We into technology. shot for is center dollars of data would that. in say what from see a massive just the bow, capital I it the we're to show look, we're cloud.

are you're business industry very or recovery how move in The looking on are the when services industries this us, hours. is even those built across where for some is So traditionally fairly on disaster and industry or not XX rapidly. instances up, I recovery based And that's the be SLAs instances, they standard XX today. just mean industry. can on hours some

today understand to that in understand going we're standards showing industry is direction. what we is the today, we where lead we're to and the we're customers move where -- so And there our -- where are the and exception

we're consolidation, step and availability nice can't we're to to And the being only have but of to traditional going able get cost some because functions architectures. do getting just it does is really run getting of traditional out everybody are cost just really think nice some deployments I reductions recovery So in future. minutes getting we're in regards show not rate the to that and offer that benefits with you

a less It's from at minutes, establishing than accelerate think that's going substantial over XX step. timeline a is going to now get so there Honestly, to minutes, And there. XX time. less we from

we that testament think is. our where of our to that commitment story to And where important we it's and about be going. the that so industry willing think would But on just shows it modernization whom. clients an we shock an just And very important we're excited to pass were

Operator

Your next from Huang from Tien-Tsin the comes of JPMorgan. question line

Tien-Tsin Huang

you've it past. relation in in the Obviously, you, a the wanted ask asked I of do in before, How macro rank cyclical, just given and to I ask everything think would on quarters how this maybe about this know momentum the I've in in versus maybe? this of this is mind? market you sort versus issues to environment revenue you else again. spending seen side, other digital Gary, great much the Secular all your some ton And or momentum I'll good secular

Gary Norcross

Yes. No, sales across I it company was very it look, the mean, teams us. exceptionally The for quarter. well. a honestly, great I executed think a was quarter clean

demand record our lot a closings for out pipelines coming and of honestly conference got coming conference. out We've of of follow-up. Just just our

great. historically, an where see is which in industry the starting demand I across increase is -- we've to so think think I invested So we're

So cyclical, the industry I your secular from to strengthening. think

to clients, of demand their a too seeing they think as probably larger and financial with our ways for And instances that lot availability. to held have long. modernize long in to held on and to customers. really we're I of they starting state-of-the-art with technologies They're points our computing that for deployment on touch lot to really entire their a back looking office institutions modernize their honest, be large just cloud digital omnichannel look are some as can,

it so gives to this FIS. real going And continue that to me benefit is confidence

XXXX quarter, I So our about and in and said, good as really seeing about the services growth the for board. really what across pipeline feel, really solutions good I demand good about we're and of our our

Operator

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

Ashwin Shirvaikar

business. the I is the So start let on with clarification me wholesale And GFS. guess institutional

up on that said subsegment. Or you you past mix license outsourcing You've actually mentioned more change you've spite that incrementally demand were on impact and It those comp issue? sounded a like accounting an to the pick seeing Is other positive a of move from before? more are were factors in recognitions the issue. the creating in

James Woodall

Yes.

specifically a more comp was quarter issue. of First

license items about other terms moving of of still the from to in are Some going. talked last in the we outsourcing year

the sales revenue over our outpaced past course quarter year able XX% smooth I&W. we be as the sales, and anticipate those that the sustained a And But would we to good as we've but then had of growth in the seen were recurring in some nonrecurring accelerating there. recurring more out do that lumps be a Our in up model that nonrecurring of sales sales well.

Ashwin Shirvaikar

for as Got few it. if And then I products wanted quarters a highlighted have guys to could sort couple hot. of now the I you ask that about of being

well. to things. Worldpay with those obviously it things? those mass think a So are Is as as from Because both service, loyalty important my as on maybe two a about actually enablement, those synergies go-forward components possible size we of understanding, basis

a help and us. baseline good really a little getting would bit more So granularity

James Woodall

But year them when different flowing give as solution growth IFS supplementally rates. I'll growth runs seeing enablement, across areas the a particular of currency. it anticipate growing due difficult XX% number on $XX of full group more just It's products, rapid through it granularity to now. the quarter. be should a in we little but at some mass terms subsegments loyalty you Mass million because the more all enablement's right and of be XXXX. just color in a to this within primarily for a their as the done helps under pace, a about you That

Gary Norcross

is more of a it's methodology. Yes. deployment product, not a Mass really enablement

been institutions, Our and not deliver of market money our large the they demand only meet compete the their faster for with et clear just how clients, to frankly, do a do compete emerging which customers. centers how they cetera, has fintechs, solutions ability cetera, et in how they demand do with

and as deploy drive and in our you'll to faster hundreds, team slate for pace put new And really that across of methodology, deployment year this for But -- if not to see continuing that did product capability continue way thousands, revenue stream. growth that'll then, nice clients. a faster. a capabilities tens so segment the And job around that in of the organic accelerates a IFS much innovating very that for market get millions they on us whatever increasing in ability it based then this to in dollars new will of market

Operator

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

Georgios Mihalos

congrats me on my add Let a quarter. very nice

Gary Norcross

Thanks, George.

Georgios Mihalos

Woody, to about sort things the off, just year. kick rest the of as two questions think we of

of we growth be going quarter the will to aggregate now an thinking the two to a from four? and And on that, basis, extent outperformed Should from business? that, outperform, organic comp to take through in first you quarter you to is fairly Firstly, quarter, the reinvestment be tough sort steady quarter. the you side margin related then any upside continue accelerate in

James Woodall

Yes.

little do comment, that. just the line to the I we're only X% Do quarter, remainder it's a so anticipate do do at a seeing am for this of the conservative the is front. On But we that revenue believe guide? gave I market. the with which guide point year is be I first conservative in in so to we first bit what X.X%., anticipate given we the from you, it

think market were data terms innovation. out in we We modernization, what we investing of been above centers, think terms in and incremental wouldn't doing. been I of reinvestment the of over in we've any see terms already

today, So think I for both would any questions. of reinvestment I accelerated don't answers think where your we and George, we look from that are

Georgios Mihalos

that a frame million The follow-up. the quick acquisition, domestic Worldpay international? kind $XXX way a just synergies And versus there revenue is great. That's to of from of

Gary Norcross

once announced opportunity obviously about outside we services. companies they to At we of U.S. We've this see combined total basis, really that XX% a expansion in financial Worldpay. revenues the haven't of George. into both be the the for one markets tell much of time, global a that the we're break how by -- revenue is that some want pretty growth would when flow that benefits for provider geographic back We out, we But approximately of high-growth as years. on alignment as quarters come On them and we'll revenue get But I the splits. give as with the you in timeline that X much the could more business, new the our our talked come framed more closed tremendous into transaction, we'll Obviously, helping in really that we get that. a of granularity accelerate you board of that will we coming certainly across will think

Operator

question Jeff next the comes Your line Cantwell from Guggenheim. from of

Jeffrey Cantwell

customers Visa that BXB if You've to ask could looks something platform is I There's their announcements think Connect particular in to tell interesting about like going which I then on that could the -- can of see be helpful so? incremental volume, Any help your opportunities for very case, significant that's will the if emerging us could nature. and new give with is about combination you recently. wanted cross-border. us Do had company's and you color And think be focus one new and opportunities you about several a it's in your that? us driver yourselves? how What there

Gary Norcross

the alternative What payment taking changing in of all for with don't technologies the types making We I to high. partnerships come needs. we're is the advantage growth. that the taking movement, The relationships. give of tell granular and drive various is meet through money is the real-time the need expecting in demands would where what But of the details or really client what I'm sure I of exist rapidly. out it. modernization they're team is for that future makes doing a our market landscape payment advantage you various us our and those pleased need we're to is look, very Yes, allowing capabilities team appreciate and sense of and job their Look, really need for back nice cross-border, very it investment strategy, our very

don't frankly, enter not being if Or enter if opportunity. by pressed relationships So an we into clients, into we that. we're we don't our see don't cavalierly

relationship be of the it. different different we globe it. the We're as FIS we going extension what our changes, is form of to a around good we're that on move approaching So benefactor and will think given excited about continue and And that how in take be strategy payments that factors an the to have one. It's today.

Jeffrey Cantwell

financial months. having service numerous clearly us if then over what investment it in sense, partners give how for optimistic next cycle we a I you're conversations think if you can was in and and investment temperature XX your describe the with as with tailwinds are the are institution some a conversations space. XX because are of sense business your sounds positive they outlook they think well step-up FI like as across some to us I And Great. the your give still where wanted partners. could the about general see their you wondering the to you like there's

Gary Norcross

had in going you, Yes. in over we've I history the would last last the quarters, the here sales throughout tell largest all company five seen sales what given year. the last we on year, of

continuing acceleration given our personal the seeing This in frankly, we're conversations, ongoing well, a and quarter, conversations, my And big frankly, across quarter given their their team, pipeline to entire another leadership sales. spend. and desire

have that in seeing I our And their existing that building. the of accelerated think on frankly and you're long so around of with our and technologies think world, seeing real As and even earlier, commented institutions many larger institutions, growth. community that's sense held I been results urgency sales a in I too our there's

months So going I'm real with very be tailwind regards positive strong, is to to optimistic sales that for a and XX-plus the success. demand next us

Operator

Greene question the final your of Glenn And from today comes from line Oppenheimer.

Glenn Greene

Gary and Woody. quarter, Great

Gary Norcross

Appreciate you. Thank it.

Glenn Greene

the service CCB maybe broad the key guess sense a obviously Trying a a little maybe, more first the I success contrast talked and IFS Gary, if but the XX% talk bit you've of lot, growth, based to from the question, GFS. could a about perspective, product drivers was. it about get just how you sales

Gary Norcross

really into QX, had continued continued they led great year all operate We just do really our cylinders, I a back payments year saw a Glenn. product of lot to Yes. lines, major our mean, wealth a strong very and IFS, really on all business going sales, core well, to across capabilities. on Look, office in last it

continued everybody, well strong But pipeline's it's coming it's just all in a demand. mean out know, came are specifically, executing out that just leads like heavy the and all team you we people Sales nature. measure model. is the over As SaaS And in I I out reoccurring strong. of segment that our conference, The of conferences of very would you, and conference leads that we coming tell X,XXX year-over-year. had strong attendance.

I from And similar implementation, the about so sales -- GFS, have good where you I look of positioned. really institutions looking see, especially the really advantage long the get market to where have side the frankly banking anywhere global feel business with closed. I other to as you to a to the bank that efficiencies in the on large held online. demand, is the Obviously, cloud-native-type know, for out have When that even existing they're and of. new the IFS industries really been capabilities at good large stacks, take contribution bringing starting timeline sales regionals, retail X- implementation about margins as do too feel we're are really XX-month on cloud able gain their to the technology

large lot We're in Digital And some that the around with prepared so some demand a we've and lot a our around core banking remarks institutions. platform. One platform seeing success success on of very next-generation and highlighted we got

exciting Woody SaaS talked capital As you about. quarter. as solution, a movement and But that license have high with and really XX%. some just reoccurring into good, revenue as the sales an move licensing I real we're opportunity the to long-term very does that's strong, growth model, us issues, a markets then from strong well. mean up grow have for seeing we It solid

we some trail. a good regulatory audit the see business strong highlighted makes as transition. very demand. its and to change of even with But -- consolidated you'll So is lumpiness that And continue news that

that are at built. you occurring, that our we changes As of capability look that into those solution plays kind

really into think that's the some And so and next I'd feel spend good good the indicator quarters results, months. I environment We're sales a about XX-plus the nice for X industry. for

Glenn Greene

just then one Darrin it's the the forma. is final I guess And Okay. clarification for -- you Woody, the bridge revenue mean and asked I pro really a a question, the on just

you in of that organic? suggest and would Just want XXX say, clear grow Does accelerate, XXX FIS to X% basis points on XXXX perhaps make that that. let's standalone XX sure think north -- to I'm sort of

James Woodall

we That's Not how assessment to how a it. but today, of that's you we as it. fair guidance give model to here XXXX assessment a modeled fair

Glenn Greene

Congrats. All Perfect. right.

James Woodall

Thank you.

Gary Norcross

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

Combined A and delivering to entered strengths are robust we start those have quarter. pleased hard keep clear the performance their thanks dedication with remainder throughout today. our clients. on on and with depend sales in us to are for We and revenue, our very for first a line continued and of momentum and the profitability our execution sight Thank strategy, year consistent year. strong XXXX loyal work pipeline businesses joining We who and the build strong business earnings have you into confident for growth. a serving achieving of to employees our of special model the and and clients our and our us to leaders to day plan growing their running every

Operator

through this XX. Time will available and after replay conference for XX:XX gentlemen, Eastern Ladies May today be a.m.

using participants XXXXXX. the with TeleConference. for That today. the your You International time code AT&T and and may any X-XXX-XXX-XXXX at does XXX-XXX-XXXX replay dialing XXXXXX. entering access participation dial the access AT&T your Executive access by for code for teleconference you system Thank conclude conference

You may now disconnect.

Fidelity National Information Services (FIS) 30 Apr 192019 Q1 Earnings call transcript