FIS - Earnings call transcript Q2 2019 | Fidelity National Information Services, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to FIS Second Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. a teleconference as being Also Instructions] reminder, is today's recorded. [Operator

go the this Relations, to Please time, at call Mr. sir. I'll Rozof, Investor And of turn over Head your Nate ahead, host,

Nate Rozof

the is our morning presentation and are and conference for today XXXX Thank you. website Today's FIS conference webcast, thank quarter call Good second This corresponding at at webcasted. joining fisglobal.com. all you us available for being call. release earnings news

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

performance These refer presenting net Please will and measures earnings Reconciliations we Also, the of important GAAP. are EBITDA, language. adjusted adjusted share. financial the Harbor to information conference net to release. earnings throughout our call, this measures non-GAAP information Safe are by non-GAAP adjusted including for GAAP information financial be per earnings but financial presented defined our in as the company, are not

for President Chairman, Worldpay's second Worldpay quarter second successful CEO, closing remainder will FIS's and During acquisition. the CFO, the review guidance Gary of Norcross, of Woody highlights financial and today's call, and our will our the XXXX year. discuss and quarter the Woodall, provide our results

slide With Gary? that, will Gary, who begin his I'll the X. comments on to turn call over

Gary Norcross

begin especially Worldpay and to that officially investors clients strategy. announce to family. pivot Nate. chapter I'm Good FIS pleased call. the their well combined. the FIS team excited to I'm in exciting Worldpay you, as growth and our and the welcome have to into next welcome as today's Thank morning We now very

other areas the Worldpay Stephanie we and and about of what and future together. optimistic company to team couldn't be will with growth are driving in leaders the Mark, I staying merchant accomplish Charles, more continue company key from the and this business our joining of FIS.

Clients the how bring new shared have and with capabilities. expanded they opportunities will that the to partners from are the their both about table companies FIS excited

merchants, markets globe, map provider This us create and invests leading seamless world of across unique institutions to experiences. will way redefines financial to the ability digital capital the pay, accelerating economy. this advance and technology the a for the power our end-to-end banks gives Together, we growth. road positioning us the As combination organic to

to had that confidence Worldpay remain quarter, six that remain successfully robust us quarter, strong quarters generated our execution. focused exceptionally FIS markets the increasing a second Both to growth. sight up us were by clear of strong continue providing giving line XX% has sales. of organically FIS consecutive more revenue our backlog and accelerating X% and sales In our teams on second than

quarter the their solutions in demand continued the and to customers for Wins drive efficiencies. amplify experience for to our operational digital improve client

us more support bank platform efficiencies, IFS a processes for also through toward digital customer and processing insurance One in its our Digital solutions costs key a solutions experience our reduce $XX billion large select streamline outsourced expanded our example, For office with a its experience. to new new hosted enterprise in improve assets gain the for This regional relationship capture with to improve the customers. segment, and propelled agreement company to move significant multiyear U.S.-based back large and than item

agency the better and arm top than firm operations. banking servicing regional management of to a institution serve chose to bank's management to in a agreement this segment, under FIS the GFS asset five our large long-term $XX its UK solution signed a core Also, for of billion cost an partner in Additionally, transfer with assets FIS post-Brexit. markets with support gain German-speaking more efficiencies in within goals

trajectory has Worldpay high-growth payments in ideally is and business markets, secular maintained including positioned growth as integrated the a payments. strong Similarly, global e-commerce

e-commerce, adding XX. to These during clearly solutions the the new resonating wins by sales XX Within that tailored global quarter, global bringing continued momentum cross-sell exciting with are merchants. wins Worldpay Worldpay's and its total show reach

pro opportunities On basis. day revenue on from one of million. combination to combination, The growth significant $XXX Worldpay X% of FIS organic X% synergy the creates FIS rate increases a annualized also forma

revenue future. the the coming We into trends expect and begin range realizing next in to revenue to the organic X% towards growth months in then synergies accelerating X% year X%

our value-creating to on in our opportunities we our new services and enhance will differentiated we'll harnessing unique Later provide flow. transformation to clients. leader in addition, proposition the the that our combined I'll perspective and to a by commerce into cash financial within bring reinforce continue global growth further the value and In invest call, of power

Woody first, financial through But will second take us our results. Woody? quarter

Woody Woodall

enthusiasm our my my to transaction closing thanks also and for for success. Thanks, a I'd making teams Gary. the sincere to express this like

have announcement we in of been picture today complete order of FIS going see hard forward. work We since transaction information provide with paint investment to the the a package how community at clear to a

combined XXXX. but This guidance rest lift, well initial done a a of plus includes have It's teams great year second job. presenting for our as been quarter thoughts heavy both combined outstanding as for quarterly companies pro financials the historical company forma results the

Turning an to In results FIS' the revenue X. consolidated organic increased on basis. second on X% quarter, slide

X% points per XX.X% expanded EBITDA margins basis $X.XX to to share. Our grew EPS and adjusted XXX

sales Gary growth top we the that quarter the first Our the continues line saw acceleration mentioned. strong in reflects and momentum

program expansion consolidation margin the divestitures. was prior-year data of center ongoing our benefits healthy and enhanced Our by

pleased FIS. with are future we for of the half year, and excited very the first of are the We

slide X. to Moving

during an X% the basis grew margins points. corporate banking Our businesses and IFS accelerate and segment continues was increased broad-based XXX EBITDA as line quarter. our and X% strong wealth on digital to and expanded by IFS' top organic performance and famous each basis

EBITDA XXX basis organic by also accelerating X% very points. GFS a quarter and expanding strong with had to margins revenue growth

division, this to continue Within institutional of wholesale the experience on basis. year. in growth, improving to and trends, increasing half will business X% returned by business the our We the second an organic GFS anticipate

It as EBITDA X. quarter expanded foreign to XX% was per increased when impressive Adjusted And Revenue crypto share. for on currency X%, headwinds. increased Worldpay, see XXX and basis slide by you by excluding margin EPS another can adjusted points. $X.XX

headwinds. in with by top the issuer Solutions when growth, strong secular X% Worldpay's XX%, solutions Merchant expectations. foreign Fueling basis, constant and segments, The teen's on statement each line line technology crypto upper its solutions excluding currency currency and grew increasing a

continued U.S. in track to of on cost and complete, keeping its by business base providing $XX Worldpay These it results end year. solid of begin the achieved its million platform quarter, migration, cost during year. synergies to a million momentum, successfully annualized $XXX the the the program, strong reflect second the completed synergy half

model, call over X. go-forward discuss to on operating beginning the back turn Gary, our to now I'll slide

Gary Norcross

Thanks, Woody.

we distinct, two we the talent segments. complementary of As operating will but reflects global and This into structure together, businesses our great bring and organization our companies new structure our three integration technologies. Worldpay's

will Merchant Solutions. segments the and brand. with using Going Capital be Market Starting will forward Solutions, banking to Worldpay go market FIS merchant Solutions, solution our

Worldpay's to its Heimbouch, The former and segment continue by market build Mark leading in Officer, who be position led e-commerce integrated will Chief President will Operating global and payments.

growth expanded led to Solutions who our accelerating Bruce role, previously Bruce client Lowthers, his by IFS. Our In will continue Banking drive be global led across will segment base.

as and will side Our capital corporations the facets solutions third firms and across serving this well Bruce provide and segment Mark insurance best-in-class lead as markets all sell segment of will side industry. companies. by

All three The common denominator clients, is all across across with the global serve largest multinational of leading at these scale. solutions segments three digital global markets. enablement

be to full potential. also reach to They bring our small agile, and resilient help their capabilities midsized clients innovative and to

three positioned in markets. all uniquely Finally are high-growth secular

X, powerful of segments slide to will Turning to in go all market client a value we with our three proposition.

the than years, tomorrow's FIS has more by creating do technology. clients growth develop modernize customer to for and XX For driven experiences. around services We and solutions today's business technology, over world

innovation, success provide in our today investing by their to continuously future. and grade and position the innovative, enterprise customers to We create clients for solutions that access secure

data secure the simple, are create invests. and and intersections for between future, advance our that pays, client's new way our and and the world With more markets while solve that experiences banks insights, seamless to we technology delivering

global classic world enable the at we our Using clients' global our reach level. scale,

grade With enterprise enable their businesses more to and connection across enter to with the their run of access solutions global entry. financial new that ecosystem, into markets provide lower greater we more cost grow clients effectively, speed and new them efficiently,

together. further on us laid at Worldpay why insight scale, so and of to commerce at innovation our this confident growth ability revenue foundations to puts This and the the in is accelerate financial the at strong world. in global our Delivering even I'm already FIS build heart

-- I'll opens to call out now before financial discussion turn the call to questions. Woody? round Woody back he our the

Woody Woodall

Thanks, Gary.

X. Moving to slide

financial We e-commerce the meaningful have secular, long-term integrated contracts exposure by recurring acquisition, enhances attributes markets resilient. a providing revenue a This for Worldpay that’s these profile and creates solutions. compelling revenue Worldpay to by is and strengthened predictable which high-quality The supported further transaction high-growth mission-critical like by payments.

focus many creates deliver model and aggressively operating scale on substantial leverage operational world-class a We one and using excellence. Our SaaS solutions to drives expansion. margin

synergies. is use same of the One mindset to Worldpay this and of will the that components operating together transaction the cost we significant this attractive has focus team drive

will cash is FIS enhanced strong flow Finally, which be known as significantly generator, forward. going a

will targets, free cash flow qualities three almost on the growth. years for our attractive our constant double These integration As next shareholder focus value future capacity will we earnings our dramatically with invest to achieve growth. over expanding creating substantial create combined

we run of confident this us XX. line synergies. opportunities our generate than our to $XXX making exit in detailed of to annual XXXX. expectations practices, accelerate slide million sight synergies by with we run have rate months now of to identified have integration even end synergies Consistent ability the to Turning $XX XXXX to annual more Through $XXX planning. taken of achieving four our a to total million million past We do time advantage at rate line planning, the of have original revenue more past in

to organic we a rate As we X% forma in towards pro expect achieve and growth XXXX in X% basis future Gary these approximately annualized synergies, on as XXXX from mentioned. the accelerate in higher our

enhancing revenue payment loyalty business. our generate optimizing additional and driving synergies volumes by across initially will and issuer networks, We fraud solutions Worldpay's our

solutions demonstrated in a that by these proposition are supported of market opportunities value clients. with today for are our All

move out, platform, we our market utilizing expand our increasing presence include for rates referrals. opportunities emerging merchant and geographies global in leveraging to share channel longer our further authorization for e-commerce back As term global

$XXX than Through than rate expected interest we on an million expense due in run includes of Turning end expect savings debt. annually planning million integration by $XXX annual to of we to time our more validated cost increasing deliver XXXX. our synergies successful the This slide the more XX. including line savings to net total expense that Worldpay’s refinancing to basis

corporate efficiencies, quickly the $XXX executing We million XXXX respectively. by million run you at and this look our achieving closed operational transactions, rate cost will to is and Consistent This $XXX our million technology operational alignment up $XXX step and quarters. on XXXX, synergies expect by upcoming transaction rate. past that will to now to exit updating with begin progress end a run synergies annual and for in annual XXXX we the of forward and revenue optimization both

XX. to slide Turning

strategy remains consistent. allocation capital Our

flow This quarter conversion to and free cash of million $XXX over revenue year-over-year. XX% a growth we XX% generated representing

months approximately is and X.X approximately X.X to XX delever leverage months. to committed we to XX times current Our times in are rapidly

of Even acquisitions growth. it to sheet, to we the further strength tuck-in balance flexibility consider the enhance us gives as delever, our

We our dividend million continue $XXX over returned shareholders also current program, grow and will to to this maintain quarter. which

strong cash our drive industry-leading in invest to Finally, we'll organic use free continue to sustained technology flow initiatives to growth.

leverage With of still our do the balance while power flow our and we the our each of sheet targets. free cash these of things can strength hitting

to slide XX. Turning

are quarter third the our beginning XXXX fourth on company, to guidance Worldpay's and combined presenting We August results which contribution includes for X.

an it full-year conviction organic Our supports revenue approaching revenue in and organic on through the combined our growth in basis, adjusted X% XXXX. growth supports guidance X%

companies, both synergy program. cost data at program expansion $XXX driven million center margin by our ongoing Worldpay's and reflects primarily guidance EBITDA Our consolidation

Going to forward, stock compensation, continue has we added previously back. which will expense Worldpay

not would Worldpay. This creates into guidance been expectations prior million for approximately in compensation incorporated that $XX stock within our have

fourth the employees We is and expect guidance. third for approximately expense $XX to this stock in the quarter compensation during factored million $XX during incur Worldpay which into approximately quarter, million

with excludes dialogue resume pleased we to Exchange following am method and our I report constructive prior Commission, that accounting of amortization adjusted purchased intangibles the reporting EPS, Securities of only. will which

earnings per share ensure $X.XX of appendix of our this to methods between we both and $X.XX to and of provided $X.XX the the presentation fourth For the reconciliation EPS third We've in in quarter, adjusted a per EPS anticipate $X.XX transparency. release share guidance our quarter. to

like full-year Along with be assumptions outstanding message XXX the XXX I to provided weighted we on slide, the will shares million that would also million. additional approximately to believe our

wanted we some While formal call, QX our a commentary. of our to provide XXXX on XXXX give I quick guidance recap on

million Given we our the confidence expect rate strong our revenue rate X% towards X% XXXX. $XXX business XXXX from run growth at of within our accelerate synergies, to trends organic to and exit revenue annual in

Further, $XXX cost million synergies in to to over at addition net annual we expense rate savings. million generating expect exit XXXX in run interest $XXX of

be this in integration, to XXXX. date success accretive now our with acquisition Given Worldpay we to the expect

the line. With that, call over the Q&A. for open I'll may you turn Operator,

Operator

Baird. ahead. first we'll take with Please [Operator Instructions] question go Koning from Dave And our

Dave Koning

Yeah. Hey, on progress. auto guys. Congrats

Gary Norcross

Dave. Thanks,

Woody Woodall

Dave. Thanks,

Dave Koning

guess, along segments expecting to gave growth banking and And acceleration next I'm how I it's the others I three the maybe for growing? markets. the little you And ones of the interesting couple segment X% XX%, acceleration, first those X% you're of of how more merchant wondering you those could all to contributes segments and see talk segments. Yeah. see Maybe bit than capital a you years. about each results and new the know which over

Gary Norcross

Yeah.

I you're over high-single, to looking merchant in think the low-double-digit growth We're at next years. the kind few be a of right. rate

be capital looking in the We are markets banking mid-single-digits at lower-single-digits. in the to and

into pleased in revenue both synergies years. next the in banking seen very the growth few we'll both the business, have merchant higher both momentum, driving and in going we're the see acceleration XXXX. over and with think businesses we've But I businesses

Dave Koning

And think midpoint be accretive I range, Okay. ago, Great, least X or on that months thanks. I I since you -- I think being XXXX, to originally it will about maybe -- then, to talked accretive that guess was or at that, the then, you now XXX. think, ago this XX XX And said range. to months deal of

had you results across But better expected also now than both companies.

had end that You thinking higher expense range we now? are I down. mean, of of going interest kind

Woody Woodall

what we've in where today, to accelerate of XXXX. pleased certainly accretive XXXX. that and a in with XXXX, instead deal an diluted we're to But being updated revenue clarified far I we're as deal really synergies progress certainly Hadn't date, was think the on as at to really looking earlier. at pleased able

Dave Koning

Okay, great.

how be cash nearly does exiting, free that What we exactly? double what flow dollars think level, that may mean just from Lastly, XXXX. or... Double or do in just of --

Woody Woodall

Dave. billion, Yeah. back If XXXX announcement deck, are or at that the to in describe day of out $X.X synergy we $X looked post looking number at we number go you and the billion still think, year to I

Dave Koning

it. Okay, great. Well I thanks appreciate guys.

Woody Woodall

you. Thank

Operator

you. Thank

Our ahead. next question in go David from queue with Evercore. comes Togut Please

David Togut

Hi. Good morning and congratulations.

Woody Woodall

Thanks Dave.

Gary Norcross

Thank you.

David Togut

least organic like growth and of three time looks X% at quarter first years. in consecutive second for the probably that's FIS, It the core

assumption like your for the trending organic this to year. of you're X.X% revenue standalone year? the seems half back the Because be would organic for for X% FIS it full what guide So above growth for

Gary Norcross

been seeing a that It's off investments now. We've about sales, few turning good that paying the Yeah. for question. into making, the certainly sales quarters. We're last talked into we've revenue

consolidated the guide on X% stand-alone a we would a number right to now be Dave. If FIS basis, raising standalone our more for like were we standalone

Woody Woodall

now well strong had very sales, Absolutely, six look really sales, quarters this past maybe Yeah. looks if good. Pipeline strong we obviously consecutive Dave you quarter. are of

modernization. we've we're pleased the really investments all made So, with on

new data work market, We've around, we're the bringing availability programs. consolidation. that mass to of that about limits enablement we've center our All done talked

digits. FIS very into feel going mid-single that's those All we And base. across pushing really are continue to confident the that former of

David Togut

Good the the give on? raise to so conviction you then, synergy for the on changed million synergy on see. And year-end year costs targets, by targets the what million revenue exit three raise months, to early XXXX the synergy, few $XX rate, in revenue $XXX to raise specifically last on and

Gary Norcross

One together. business we the saw teams whether what across pulling think when to Dave working started the on And the bases. various got And tracks, revenue is lines deployments product we we working the on the I new we working various opportunities. together. start start the And client start potential on.

due we based when we operating during we we on saw saw into announcement, the When on a diligence, as the top-down of synergy building diligence, a experience, just across lot even confidence ground well, into in And up and come on planning. side come started we've done our based what number. we due

exceeding ground and all of that a then the us. market start our the delivering earlier out excited address I at from products, we gives have have total the what on both for revenue reaching where But into They're build confidence going And feedback market thinking always the expectations. had thought. you're cross-sell to confidence. from we always confidence than that you the FIS next them. that’s gaining clients mean always Worldpay what's high can driven clients as We've great us is, year good a also those what we're about the what our us about combination lot and really how this of -- on to very been side mean, addressable opportunities up, are, what against you and

why all of those we're revenue synergies confident forward. So things in with into come play going the

David Togut

Understood. Congrats, again.

Gary Norcross

Thanks, Dave.

Operator

Jim in question next will Please Schneider come Goldman The with ahead. go you. from Sachs. queue Thank

Jim Schneider

throughout e-commerce us the side? Worldpay's earliest to whether a and bank of Can Whether Maybe some more those kind that's on what you just examples question. following the Good some expect of of just about etcetera? materialize distribution global network on that's morning. David's maybe your you up products be could of Thanks give synergies of a question. revenue sense for taking previous my bit

Gary Norcross

is to to new Jim as his existing across base. Worldpay's we're the our Woody client or in that see think, existing prepared combined it's remarks, going really our and ability short-term I capabilities discussed -- deliver capabilities our what

So routing be that on early initiatives. the think on, real obviously, we'll debit some opportunity there to launch. We lot focusing gained about on We talked be a there. is

you that so and that information access in can portfolio merchant merchants were that that the into nascent we space really that merchants When about Worldpay portfolios merchants, do analytics provide going start opportunity thinking our to real data to over a and way. around

capabilities you pick-up other able merchant more seeing as more that of to areas other programs. on start Longer that a sides step-up. as We're past being seeing about base. talked to about cross-selling of pick-up we'll see the that also -- start going term, where You think loyalty across currency will referral using deploy both our in to we've

So revenue got line into the really good opportunities. synergy we of sight

launch teams post going building now The Marketing materials the has really hit on in what in and coming great them plans. all sales bases. running out together a with go-to-market done ground their those close selling job letting are to be we're

So a into all that's revenues of insight on. triggering our good strong

Jim Schneider

a That's And of rate you having environment strategic the that in the clients? you kind how about do helpful. into give interest segment XXXX? their specific just remainder us or outsourcing decisions? impact current of on any maybe core and kind Solutions the of spending the they're heading and about feel follow-up saying year Thanks. little if of from Banking then Gary on update and your maybe a macrolevel bit can an What as And of kind it's

Gary Norcross

where the I I about calls hit especially, net rates customers watches looking financial their directly they're You invest. and to interest good means what's go up in And income. being their institutions. really industry really is what margin go lot down, talked financial on to their of at they a honestly clearly technologies. interest long we've too we're and going And think institutions historical does as question. rates they interest this know, our you're mean prior that have what everybody number this on on a Jim in as on a lowered, and But mode of hit seeing now held I for therefore legacy were it's a think

-- so six we've And strong quarters seen of consecutive sales. what very

pipeline going full businesses both very markets back half of the across capital Solutions. year, of and the a our banking in have We all and Merchant

So, to the They bullish making don't those going digital are us they spend have the the the They to in move cloud. opportunities decisions And that platforms. to banks have I people to enablement pull think all capture be to confident in to that and their as direction. survive. at things next-generation have on very of to short-term, to because in future. time, the this move is and pushing in make back able those point really FIS to next-generation move order well-positioned revenue are

Jim Schneider

and update, thank for guidance Congratulations you. the

Gary Norcross

Thanks, Jim.

Operator

Thank you.

Please queue in Our Shirvaikar next go Citi. will come Ashwin with from question ahead.

Ashwin Shirvaikar

my well both Let this as on Gary and is deck presentation me as initial the useful. add very here congratulations Woody closing deal

Gary Norcross

you. Thank

Woody Woodall

We Ashwin. it. you, Thank appreciate

Ashwin Shirvaikar

sure. Yeah. Sure,

Let next that as of of the analysis? think great. provide on level for historical of used we about going well proper type FIS GFS sort sort investors start What question. some with be me underlying used to if and the you segments IFS can expect multiple information. information do to lines also should both can that color provide disclosure so some subsegment provide actually forward Any of obviously information you would timing underlying the Worldpay as of when underneath. as

Woody Woodall

Yeah, Ashwin thanks.

great combined information. historical did a in job team the pro think I pulling forma the

with disclosure, earnings think you going will. If there. have capital see you can in it way That be external at if segments which release the markets. to QX you quarter back We're can to and data back merchant, help the by will to look you today, continue I around all the the new XXXX, banking

continue both and disclose but detail, the on within externally information on and But results we'll technology Merchant continue transparent of results. and won’t to to banking. driving market probably what's commentary globally domestically we at our to that in what's some the provide We'll provide level color the around Solutions those solutions, going granular

Ashwin Shirvaikar

of based exceed expectation you there synergy on record you that is number. Thank for Got then it. regards market And -- the your that's sort that. will to a obviously it. with track Got

one last would You well. deeper were to synergy bringing the other. as a explicitly what's get that side longer term near-term increased on -- started of and synergies publicly wanted also confidence with sort now of not here increasing and that off time, the on between I regards into the kind well changed the little up bring expectation the and with you speaking to synergy why up bit

Gary Norcross

Well, why I generating start and in. mean Woody million I'll at don't honestly you job the debt, $XXX an the I operating let team outstanding did refinancing look Worldpay's Ashwin, just chime synergies, when there. really savings over I of mean

on So to where needed forward. we target obviously number increase our that's million $XXX that going

Obviously high got operating very we the confidence in synergies.

more As know, synergy expectations our XX%. exceeded you those -- we've than historically exceeded by

side, the $XXX we're you revenue is our We've on-boarding. which As million. at beyond look our now revenue extended rate at increasing

of just on points I my to revenues really going are those clearer sight of, are think, line board. earlier, we've how getting to come

and teams So, between worked can't signing Woody close. but the talked trivialize how about hard I had it,

is nothing information at If do prepared of of all amazing. not like the this, you a look short you call combined

But have building side. really around, we're tackle expense also, side, deep all dives, owners of week and been doing where and week the those out, plans the going revenue the to in business

all. big about change, the last that's since really those that's been topics. our Well public So what's conversation

three what that we in smooth the high actually years. some, out $XXX So million, expected, confidence earlier coming next is will great. the see over revenue That than originally that which we on curve

the we guide here. the savings saw the And make did everybody frankly expense, want OpEx. that sure interest that stay When at we original you to our committed look on operating to

that that's raised So we expense when savings number. overall

team where key positions commented the in landing I of together But come to FIS important well. and we we're this personally. very at are in me companies time. have at cultures the point of Worldpay, leadership very very the pleased, from was The

So, as half all and back of us go in XXXX. just the confidence, the of to of into we gives year, that lot a

Ashwin Shirvaikar

is going think could if are interest $XXX growth, the the reinvest or it to in, I going on Got one be bottom-line it all get it. clear that that? a to should just side, better And of quick million squeeze mean I we to is how -- or of piece the thing, or you incremental, the,

Woody Woodall

will That interest the August savings It X. will go bottom-line. dollar start to dollar for

Ashwin Shirvaikar

Got This it. Thank is you, great. guys.

Woody Woodall

Ashwin. Thanks,

Operator

Thank you. from in go ahead. with Markets. comes Dan Capital The question next Perlin RBC Please queue

Dan Perlin

and accomplished congratulations thus on everything guys guys Thanks far. again you have

Woody Woodall

Dan. it. Appreciate Thanks

Dan Perlin

pretty fair cross-border bet. You kind wanted a just macro here. amount the And evolving has of in a quickly e-commerce sense of of you have. exposure is that I been opportunities there backdrop terms to get guys

But also kinds a of in it somewhat be risk can of these environment.

And near-term? Obviously suggests hearing curious, seeing get I'd okay, going so any you of Thanks. I color anything in your things on of was that. what you're kind if from your love What to that are kind guidance clients. are just be but incremental

Gary Norcross

Yeah.

close. -- met You as I've been would I've since know, Dan, of expect, it’s you early. clients already with several the Worldpay largest

volumes not with U.K. concerns are they trends, slowing performing Obviously, seeing turnaround the very there. look been e-commerce point when they're continued the the But at our areas. in like due engaged well. Brexit. seem modeled, really at across we've those in any time. expecting Frankly, that, this We've any board. in and So we not consistent we're to Frankly, busy

are same-store Our well. sales growing

we're indicate, in of those And pleased And things so, feel seeing. all would the with very we're that we pretty confident forecast. what

Dan Perlin

Great. you. since a year just kind quarter? bit I we fourth terms a you'd and of trends think quarters little I in Can third you the third you – for the land to Thank Woody, us can that think got you you a the I'm correctly. the of fourth X%, of stub assumptions? heard then about how quarter trying rolling into on little maybe growth if bit you said of organic help at kind thought just and

Woody Woodall

It's of more in get That's the the right. fourth view get I'll all start on flowing a point X% through. months of with the and fourth Worldpay as three grower first. about organic quarter quarter you consistent numbers a

is months year. little a from that. getting instead contribution as there. comp a quarter. two That third And last growth lower but year was in last watermark Third months Really heavier. quarter, difficult got with our you're three quarter bit the conformity than got accounting We've a of QX Worldpay's in in a higher we high of the little impact and third fourth little a terms growth the both of of

you're by just Yes, really you X% QX looking pull at grower that, at that's what So like points more mentioned. some those there. I a you're all driven that in of looking

Dan Perlin

off the something Okay. one synergy in more I were make terms of strong. then of margins Thank the one-time Worldpay's sneak U.S. just you. want in nature? sure, just is charts closing EBITDA And platform that if in could to the there attainment was I kind or the

Woody Woodall

attainment. one-time. No. for just the in it $XXX for looked we would. Very track on and drove million still strong thought They full we year the Not million $XX synergy like quarter to

Gary Norcross

completely movement Yes, Dan. is the Also consolidation done they positive. really are which U.S. with

So program we the and normally, felt going about just confident the we we as NAP well. very day, was very that the over announcement in talked thought in UK

consolidated We very so in confident that now U.S. also the platform that's felt been U.S. has and us. behind

Dan Perlin

you. Thank Excellent.

Operator

Thank you. The go next from ahead. MoffettNathanson. question in Ellis Please Lisa with queue comes

Lisa Ellis

thanks and Thanks, Good Terrific. guys. morning.

Gary Norcross

morning. Good

Lisa Ellis

spending the what merger -- are comment you on your from could is you going of most and personal challenging time the sort your focused? be where aspect perspective Gary, to of

Gary Norcross

now, spend these -- and seeing not with post being close I'm clients. any always Lisa. in days flags. my I with I'm said I not that a red question, great of now, is Right But right seeing where mean, Well, early employees time most very it's

make of I front We've on our our that to know, call, on everybody London. portfolio. very the employees want the already town that on clients largest meet market. this commitments because my way in you hall to and You with of Right sure expectations make strong, stays something I'm on already focus of two in day global been in our out met clients that's that after sure close the we a -- on been hit Worldpay's focused I've

And then sales. frankly don't anybody focus want just get on to distracted. We

earlier blend sure -- So there. minute of about the in time I early cultures that talk a also focused on I'll lot the I’m earlier together. spent a call. that making on

so eliminated cultures perceived and come those know differences subtle cultural But or important can is as we and are get those everybody get a find great. You these barriers which barriers it's aligned team. will together identified to very

team important. Landing the very as was about talked leadership I

and to I great were that able close. feel between So do that we signing

we've go-to-market focused that's the to I'll -- hitting right a now focused. I'm years. very in excellent in ground are business, we're really been will to well. quickly have to and Obviously and job. prospects of and into make I'm growth weeks where doing shift really of obviously on on so but the So because for he's focusing getting engaged FIS He's lot But right But so with here we He that's the as early days shift few next the start sure talent going that. pivoting the and where brought running, quickly -- that of Marc's very Worldpay I'm there understands really now. that

Lisa Ellis

generating the you XXXX? on begin to revenue global taking you're is the Like make of years. follow-up, sure my to the synergy sort what how track XX next know sort on revenue and Could in we term over then describe out it's are actions longer the Thank And Terrific. and you. expansion track? you synergy progressing critical one the is just will over of ones of out that in months

Gary Norcross

Well, year. see going line. it to revenue you're to as rate see Obviously talked the through accelerate growth our about approximately X% we you're going growth organic to next

to X% You're going and out. in move the it see X% to years beyond that

we've and doing been got it, we've doing already teams we're our together. What

certain it's huge go-to-market or capital markets in teams, where Our our banking presence teams whether those teams, and we -- our sales we've it's teams getting it's teams markets Australia together. with together have India, we're whether Worldpay Brazil and teams whether got

we being the that's important, which important. in us those we're is going able local and to to very be that presence markets company, introductions local a things a about penetration have of but to us different for leverage global and presence, is business accelerate is really change e-com One very those make

of we well are those today. down the So, path conversations

to points, fraud decrease the further distance also are you augment with about But really when increase already e-commerce apart we're authorization those rates. Really, those where doing and think to to Obviously, how we're want raise XXX regards XXX authorization points basis We we us. steps basis want today. rates that to product. and do separate the rates. We

it. us will those accelerate into pretty two about really So, those markets excited and things new we're help

have some we'll really think I good traction.

going -- think to we said we in have While potentially that's months. we'll have here good in to XX be next process, some wins I some the the early later XX

Lisa Ellis

one, related Can an and is faster or those the growth business, Fed maybe next one announcement impact payments comment not for you've you? highlighted Okay. MasterCard of for the area I account-to-account how you And changes Fed like and this important that's you. last then quickly buying know announcements to the merger. FIS now of types ACH faster morning's core market on announcement from then how just that in

Gary Norcross

payments got area That's a saw acquisition. huge focus Well, clear running It now more a It's We to today the payment real-time in MasterCard. of good software. countries into think ago by faster where a to is question. an their platforms acquisition lot XX movement's now talk payments occur. gone Yeah. going, pay of going I very a people form four Nets how with about A us. on been actually years a for today. real-time than over FIS focused looks I We well. are announcement our it like on it's lot. little money great We're

I those Fed look that payments. you all logical announced, real-time When didn't FIS. you It's doing look also what is at create surprise what would Fed accelerate for they're it the What tell opportunities would in the things me. to

they those is make move various the as that we sure to the So, capability across to payments to moves as channels, breadth important across various verticals. what's money have capture us of full

well-positioned we're to as real-time that very accelerate, capture volume. payments So,

capture As well-positioned volumes. e-commerce accelerates, very we're to those

breadth about banking, on capital across So, we talked a merchant, the global markets. basis, across lot across a

is our as other new asset these The roll not is, across to there we disintermediated breadth have a to really on. technologies thing realize us allows that be portfolio

for these that capture So, so long-term will drive FIS, or moves absolutely and and our positive. more channels, we to just various can of Thanks be as money all more announcements revenue stream.

Lisa Ellis

congrats I you and Terrific. again Thank you guys. to forward am Thanks. look updating and

Gary Norcross

you. Thank

Woody Woodall

Thanks.

Operator

you. Thank

of Kupferberg, Lynch. Our next America go Merrill question from ahead. Please comes Jason Bank

Jason Kupferberg

Great. morning, How you? are guys. Good

Gary Norcross

Doing great Jason.

Jason Kupferberg

Terrific.

little basis to mean around accretive deeper commentary it XXXX. Can accretive? just accretive, wanted a in clarify? deal on see can it or on you the we the just I that that XXXX will be exiting So, will becoming Do go now, a year you full be if

Gary Norcross

So basis. we your were think kind a what get joint for it's number of a are accretive stand-alone on merger on a use talking our full that disclosing assumptions proxy, year really expectations some show market kind we the base, $X.XX projections basis, and That's XXXX, that's in FIS XXXX. about. of our that are And to so we

Jason Kupferberg

I closed. That's very Okay. side the of helpful. deal this just OpEx on things. juncture, know just obviously the And, was at I curious

million you're the expense still $XXX target, interest that excluding So sticking with savings.

if that million, on hypothetically, deliver the that you to be the side, operational piece? corporate do potential on more But upside you ultimately technology, $XXX would expect alignment

Gary Norcross

it's know really to about this point talk too You time. that at early, in Jason

I we some gave think million Woody see insight, how $XXX into the spreading.

we into the we're confident $XXX very situations, on these dig As million.

these taking make leverage damaging enterprise across looking we're we full sure We we're the think advantage. without getting out to the at combinations business. of the maximum that -- FIS have And

hopefully about this this pivoting said, upper-single -- number accelerating and growth, the to higher times, the Obviously, a we've of in is digits in our growth, want the we long-term.

So, synergies on into early. we as those the FIS. build technology But of a business corporate it's very side. side lot of more come good that but out that, the also will of and feel But we

on the the transparent, we've of in on we synergies, things being are throughout always process. is that great very taken where One pride

So, in areas. or three get, insight quarters those this, of where we we are into see where as might majority the synergies, giving coming see we'll several of the into from we start more any upside

Jason Kupferberg

on on basis. strong that on side the me. trajectory of Worldpay of helpful. solutions, I I an quite you're just That's Okay. And was again XX% metric. curious, at tech half for what the adjusted just the assuming for kind really was know last second one year

Gary Norcross

Yeah. growth for of We've in that's been thinking been line rate, about quarters. mid to number high-teens outlined with technology solutions a

Jason Kupferberg

Okay.

Woody Woodall

the It's to executing And execute line with is market. been in in really very described continue to expectations, well. what's our

Gary Norcross

the his are to that his he based everything no indication there's should he's about you going what another is look, and come I off in mean look if seeing that, volumes on it gives really to confidence team And continue, and in We and talked strong great And remarks. and Shane cross-sells. of -- that just guide. we're there to team execute. going prepared continue that quarter that had us

Jason Kupferberg

Nice appreciate comments. job. the I Okay.

Woody Woodall

Thank you.

Gary Norcross

you. Thank

Operator

Stephens. next ahead. The with go you. Brett from queue Huff in Thank Please question comes

Brett Huff

Hey, on Gary again deal done. this and Woody getting congrats

Woody Woodall

you. Hey, Brett. Thank

Brett Huff

your modularization, what's -- -- we that a then spread innings I've of it merger. rewrite that you've been out. we kind are now? Two you thing on guide questions. process? been the quarter that then the the Where those also kind One of kind of and office on uptake rewriting early right where to of focused unrelated in the on this or Are doing still back program that related and to particular

Gary Norcross

the I Brett. question, appreciate

build. program late As project say know It very announced was to going I -- innings. in mid we're a that long-term you innings that would we when is well. very

some innovators. response some key has of We've in really to been continue terrific the market. announcements with wins we -- stage So made actually early-

to basis. doing we the cloud. modular announcements in platform. very being a have the platform one We going out about production now we're continues from agile program. And launching a feel quarters. in nimble be that in product good up it on have in some nice very on way on The We're to that coming the that really built Obviously, ground

Brett Huff

Great. related And then deal. the second to one

as of several taken on over sort done One kind the you've with the things the deals guys behemoth have of, years you’ve done center times. the data of great, you consolidation

Gary Norcross

Yeah.

Brett Huff

data I rolled then How what And getting started, the one this insight this three it's Worldpay? that cost that's the risk? ago. ongoing? any the kind I know one -- assuming -- I in. which gives with you is manage there years pitfalls getting Worldpay center do synergies of think, we kind how Is how us into project I'm going start that tell soon joining do we potential have assume Thanks. to And with of

Gary Norcross

phenomenal a our done tell and center have his team job CIO a I'd great you with just question, -- Well data consolidation. -- Ido it's Global Brett. Gileadi,

clients XX in of of digital the which hours. in availability of now the have guaranteed instances we've some than We've XX launched XX less to minutes less cloud. -- -- applications We publicly is XX% announced over our our at industry now private

really, it's So really well. going

within common And comes that will those part of under two become groups future. as in centers we so naturally ownership technology and consolidation plan data together the naturally FIS, overall put these the

We're very We've So -- years we feel program. a three well up. great team into geared confident. we're this got

just together. the we'll the we seeing to benefits now bring And team our groups bottom-line. as keep You're these drop churning

have very confidence we on execution. high So

key high technologies have the next-generation in a our We of will be confidence synergy saves. it to and contributor advantage very taking

Brett Huff

Thanks, guys.

Gary Norcross

you. Thank

Operator

ahead. from Thank Mihalos you. Cowen. come George next question Please go with will The

George Mihalos

congrats guys. good let morning, Hey, getting And me add on done. my deal the

Gary Norcross

Thanks, George.

George Mihalos

what the some on Is Can And you're I the wanted seeing there's really Worldpay, the at months. an e-com are of that side. changes couple Europe opportunity integrated as of e-com, at the coming FCA strong. talk again payment a that to lot bit as least or very, there it go side? next little then, solution you maybe sounds of within FIS, on could which be concerned back relates was Jason more you very to on segment disruption over for some in momentum point the happening, like are the some tech a about -- said there? trends? to continuing of But also It

Gary Norcross

to integrated first me it with start continues side. Honestly, strong. be still let Well, the

We We continued and actually with just given to and think sales reach. business. our new opportunity increased scale win there is combination size the

on and overall e-commerce the very a So number Shane's about on times call. business of performs. that we're very strong excited how We've site. really integrated talked the

So change as typically of regulatory typically to we see benefactor, Worldpay mean changes, -- any change kind tailwind about way are the about talked. What's issues. see a we I as it's is when the or talked that same we business FIS. interesting any so any Frankly, kind converting is, whatsoever, see changes of you the we for don't

And going be strong. to confident to are continue so, growth our we are rates that

Woody Woodall

IP in good a probably things are little higher in little XX%. both We saw, and lower the components XX% going. e-commerce But where the growth a was we expectations saw with with and really than that there, a that line blending to

regulatory drive of share look you changes can in rates the authentication wallet deal some fraud actually on our some some that's reduce drive low are board, some and those with opportunity coming exemptions line. friction at think If we of the down that to areas of that coming the

George Mihalos

a Thanks markets color. expected. great to that. as little a just bit gears for quick you growth returned follow-up shifting that And That's to capital so

little long-term to I single-digit low kind X% from the easier growth. think over Woody of you we that accelerate second the XXXX, growth half? bit that laid comparisons Thank given of a out somewhat back Should expect over half the you.

Woody Woodall

exactly accelerated seeing growth. some right. That's We're

execution Some within Martin but by of of the back markets. good easier that and is comps just the half XXXX a team, little also in capital facing we are

right. exactly You're

Gary Norcross

at the historical movement continue and are of noise see be to area, continue I ability honestly, mean that continues in the today look backlogs you to very a little share, sales. look we'll on at and when an we’ll you bit against execution, the volatility our license through go that teams backlogs you look Sales that. are to nicely outsourcing, standpoint, George. on what take at to from from just premise to delivering execution and those But strong

about that going feel business So, good we forward.

George Mihalos

again. Congrats

Woody Woodall

you. Thank

Gary Norcross

you. Thank

Operator

ahead. Thank with Peller you. The go next Research. question Wolfe in queue comes from Darrin Please

Darrin Peller

guys. thanks, Hey,

Gary Norcross

Darrin. Thanks,

Woody Woodall

there. Hey,

Darrin Peller

trends exactly But why substantially more FIS one-time market would What year you better? we And just Can point to know this guys be hear to they're different? great X% for the we it adjusting said It's to compare end when Listen, you specifically trending that's this we and X% look where curious X% quickly? so I -- is even what the what it you items. are is Hey. expect prior be now year. that's see. that look to last standalone year at at I'd and quarter, growing changed to what the sustainable. products that

that on color go ahead. more curious Just --

Gary Norcross

institutions really financial well financial you Darrin. things are is right? institutions, So you we well-positioned is, positioned. larger think look in at large look whether honestly, the the What's I two if or mid-tier changed FIS Well, world, around the

that at held have technology they specifically, onto If too investment look long. base you way really client their

BB&T to at together, scale drive SunTrust Look innovation. coming all and about

you're technologies. So, just seeing spend different a secular that they're focusing of an in And number things. rate increase around market, on

on, go enablement, they're omnichannel with application. of capabilities. Digital capabilities, They're where that focusing space, digital really One next-generation, trying to leader a in to their we're Obviously, our

to cloud-based that technology a about If -- And move asked or of in that years. Brett or even some really you my globalizations. have How looking XX the place that some whether from XX about things for legacy Stevens, applications, how of you're been look these platform. next-generation at on talked at move to

of these really high rate. clients, And that's a to it very just us increased of of strong spend are an at All sales, just number look you going full high got driving six confidence fly things engaged. gives quarters continue. in teams significant opportunities We really when and who

working timing clients of favor investments position And so giving these giving I think, where of we've X-plus started made in we is have years where also in really giving ago. type we're We market, just technologies, investments. cloud-based on FIS, the

look applications, And our modernize to on next of investments years customers all these as really generation ago. our started accelerated themselves. that's benefit transform four to and We

Darrin Peller

of Ecom XX% overall. benefit any regards and the was again revenue have them of Okay. already right, in between All growth cross-sales, Did then, guys side, you helpful. the the that's with And I the to there from Worldpay. mean

were some XX you last that this year. started or list When quarter, off so incremental there

I on. come the for some we're to those start hoping of half, to think the is for really second where revenue

help e-com still rate the second of Is target? that on And solutions growth tech the in the with that overall should half? and

Woody Woodall

more about a seeing benefiting cross-sell we're that XXXX, But revenue now. we more is it. that described we right convert. revenue certainly are of those And growth excited from I of the is what as in perspective. Year-over-year, think, Yeah actually growth XXXX,

Gary Norcross

lengthy e-commerce, the mind right. can a I be FIS sales think to as Can also very about, new you similar banking. cycle, be Darrin. mean business in Keep it Yeah. sales fairly cycle, a across implementation long in but

e-commerce They're environment. integrate volume moving slowly start actually to the over. to software, the into going got You've

in the start ramp So XXXX. you But… seeing really

Darrin Peller

Okay.

Gary Norcross

confident still shared it very about year. earlier, we're those rates. what we the seeing half feel Woody And As back in growth current

you three these really out. talk like, what as about indicative four quarters, what, in really of it's to So are sales quarters and know we look what, going

Darrin Peller

right. All

Just revenue those synergies, co-production on last coming quick fruit deals nice those on plant? network, around a be low the should hanging

Gary Norcross

Yeah.

going it. about the think, seeing benefit talked process. that here revenue we We to start Now we're very early in some really

those as gives And that really we into sight high in line we've start so, calls forward And confidence topics us guide some those got XXXX into that of pushing discussed we've that. prior really on of X%. good

Darrin Peller

Thanks good. guys. Very

Gary Norcross

Thank you.

Woody Woodall

you. Thank

Operator

have for question Ramsey El-Assal more Thank do come ahead. you. one Please with time that Barclays. will go from We

Ramsey El-Assal

maybe for But I I -- near-term mentioned might last I'm wanted and optimizing thought that. about granularity Thanks on to follow-up actually more it – in terms fraud But question loyalty, question seems little do the that program. some like a pay realizations. where addition synergies Hi. on you with my squeezing of about here. network a been later taking Worldpay's the to planning synergy have revenue your loyalty me Darrin's business. in in get optimizing to you just with mentioned enhancing issuer optimization to trying of might've little with points in the

digital could business So is more a color grateful. be I'd what loyalty us if enhancing just little fraud exactly and Worldpay optimizing you give

Woody Woodall

Yes.

side On channel. well the and think push to as that and short-term the the I existing that take we you going it the are in longer-term loyalty distribution see as through capability in

Ramsey El-Assal

That’s right.

Woody Woodall

We on growing platform differentiation with incremental in already build drive was accelerate a for And e-commerce Worldpay's longer-term the into can that can will FIS and that we continue. there. it That stand-alone basis distribution. so

So component that's there. the biggest

through to more side, sets more work the standpoint. components more processes. really have color from through -- incremental On data we biggest the fraud data two to drive it's our sets are additional Those

revenue synergy contribution for starting level We XXXX in come of but pretty terms in it's that of more in of fourth coming to its more online, XXXX. quarter will minimal some end-year see

Ramsey El-Assal

spoke your just be that's routing you merger can different bank, and from about in alternative indication? us for Can or you or any marketplace benefit Okay. in of You to well-positioned will to color to payments in the evolution from speak then give that honest terms to something of the lot is and go you're And on path any potential kind would helpful unlock some a axis faster a lastly the of of that. map, capabilities how me, bit paths that -- there road merchant too? that --

Woody Woodall

Obviously, of exist We Ramsay. the that a long-term talking really could looking real and one there opportunities that's talk about might you there. No, today. we're of be company at, not about but prepared combination when opportunity that Yes. them start we're that to some think

Ramsey El-Assal

a Thanks lot. enough. Fair

Woody Woodall

Thank you.

Operator

Thank you. over our this At turn to for time, the closing will back I any comments. presenters conference

Gary Norcross

Thanks for joining us today.

a X,XXX most Worldpay are a base and team is the best-in-class of some We respected who successful brand extensive with loyal executive thrilled global and employees. combination. this industry. have businesses talented a represent partner and the network with in client over They

all very a of makes business, banking markets and combination. the profitable financial at aimed capital with economy transactions and digital the combined the and and our heart powerful This financial world's power us that institution commerce predictable

and who depend day. keep to on clients grateful all We businesses loyal to running us our their are growing every

employees invests. today. Thank personally for hard Finally, to our world and our us XX,XXX banks advancing for the thankful serving for I leaders is you FIS dedicated clients. and the joining way dedication am in work now and pays their

Operator

today. and Thank thank gentlemen you you. call for Teleconference. We And and for your that conclude AT&T does using for ladies participation conference do your Executive

You may disconnect. now

Fidelity National Information Services (FIS) 6 Aug 192019 Q2 Earnings call transcript