FIS - Earnings call transcript Q4 2019 | Fidelity National Information Services, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the FIS Fourth Quarter 2019 Conference 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 conference as being And Instructions] reminder, is this recorded. [Operator

the now Please to like would conference go to Rozof. I Nathan turn over Mr. our ahead. host,

Nathan Rozof

today to you. as year full webcast as on today's conference is available for Thank news and call earnings FIS our thanks are This fisglobal.com. webcasted. morning joining quarter all Good XXXX us website well being for call. and release, the fourth presentation everyone at And corresponding

will discuss Woodall, Gary recent Chairman, Officer, Norcross, and and CEO, guidance. quarterly results Woody our and full-year trends performance. will financial our quarter our our describe provides FIS' President business Financial first and XXXX then operating review Chief

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

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

turn X. I'll the to who'll Slide that, With on over his Gary, begin call remarks

Gary Norcross

exceptionally quarter revenue the year financial as technology performed of This, in down and We All year growth for delivered XXXX on well Nate. X% organic strong closed the today. along the our with be quarter. joining integrating to I'm three full well us morning industry. are path the segments for as outstanding very well year. results. year you fourth to thank transformational able successfully for for a sales production, Thanks pleased announce was FIS. full the our Good and largest and transactions

activities working, I'll strategy us led an how that integration record large solution This Later, increasing as how includes that the positioned driving signing of for as about stronger suite. this our solutions. our and well in largest the very for some XXXX. our wins even core Our is three noble to demand strategy our quarter sales exemplify on and monetization, is and banking talk country banks

growth in rate In $X.X organic X% billion accelerated resulting the revenue. fourth quarter, in our to

our resulting new in were history, Our results sales quarter increase new for sales in more than an the XX% year in in year. and largest the

backlog as installation well expand. Our to continued as pipeline

our Adjusted performance high of EBITDA contribution primarily to expanded execution new from well sales, the growing points, as revenue of as of the the XXX by outstanding by cost and driven installation our resulting volumes basis margins transaction overdrive synergies. margins team

we run As million exceeded generating interest synergy cost When target. quarter initial have the think already annualized basis. synergies savings, exited we rate expense an our $XX in including about $XXX and in on we million integration cost synergies, revenue

performance, which ramping strong continued expect XXXX, future both in cost expectations detail and revenue increasing revenue we acceleration we our result As organic into we synergies, accretion. our are With of a growth heading momentum later. and our impressive will for earnings

this and years are want We modernization and and Disruptive own We industry ago, cloud-based. cloud-native results Turning our machine cycle, an value artificial omni-channel. clients wanted because change. transformational ambitious industry to solutions like empower our platforms. technologies development business we and modernizing technologies began software in to journey. strong the to And industry we moving to delivery and client innovations open, towards I sales a our about re-architected consolidating modular embarked future by be also Slide began services ready we talk automation, models transformation, our on X. learning, believe new to broader we embracing its Several that digital did to technology evolve the able and to intelligence forcing and propositions. was financial new the be

our demand as Client is yielding for thesis sales new results, The several industry as FIS. we've years demonstrate our as evidenced over correct. by the past the about our that investments made results clients are well

assets the top complex MUFG Banking bank as segment, both billion a innovative, implementations. a embarked than as of us $XXX XX transformations. Platform bank three Banking XX top ability that to and They top top Union with bank. a banks recently of selected well FIS. journey were solution very well to we This selected combined banking our a legacy because In the an transform to largest large their that as the XX had next-generation a execute XX, scale Bank, personalized XX excited environment on includes Modern total announce to country of our in our their core for consistently I'm deliver and more ability our announced as top

and ground significant financial to Platform transform containers, industry. a platform the of The up. first next-generation highly represents the enables banking, open capability, delivery digital for entirely was future through institutions of developed the art is new clearly built the the and APIs a and Modern This flexible from model. state It milestone SaaS innovative Banking cloud-based with

its pleased a industry open banking API our also with our that signed XX core including Code agreement power to an IBS framework top Republic, First Connect. announce leading platform, to modernization I'm bank, program we with

the for large IVS continues throughout the leading it's to prove banking why core SaaS US. platform regionals

legacy for known of banking their start applications outstanding bank's will a pivotal growing from three believe the needs the because what scalable in-house systems of them and consumer cloud-native open are continue transition core First banking to open better expand serve the decade-long chose we base, clients. will provider and business client allow to wins meet well strong of of our incumbent to They These as the be platform, Republic FIS global deployments. experience. over which client existing as growth and is its

Turning to segment. our Merchant

winning deployment. on are strong due superior continued client and flexibility value systems We to our proposition, integrated

a of top one shift for U.S. businesses. as of global after leading routing example, many additional developing consistently client cost fraud for clients, of us a our engine, categories to across continues well authorization proprietary processors as their shared and We acceptance. For evaluates demonstrate the choose to rates, engine FIS across volumes these that search results their marquee exceptional

The one because reach. our to of In and in consolidate payment who Europe, to technology category large selected both multiple payments. FIS acquirers is was looking capabilities global FIS covering deploy addition, global number to a unique online turn their in-store company and and omni-channel across retailer

our with segment, to driving simplify end our In solution clients’ our Capital to Markets is demand. ability complex suite needs end

in strong sales exceptionally growth a we in resulted modernization Our strong strategy year, fourth quarter. the saw very and has

is We the demand job business. continue to SaaS on-premise balancing an our deployment, with see team that doing increasing outstanding and demand for license

example, a into on risk solution to payback one is their clients, our enterprise next and with further their for up-sell this investment digital large and proves management our For that In expanding of include our bundled be levels. relationship solution of data instance, asset one cash, needs. a excited gas will agreement, numerous with liquidity announce to customers entered a we oil large the premium largest I'm to their providing business This tools. cross-sell SaaS we that cloud-based the world's also managers. help generation ability visualization company, corporate treasury, and and offering us

X. Slide to Turning

addition In accelerating are our wins, we revenue synergies. to these new also achievement of

synergies end by million reach While annualized initially to million the the in months $XX achieved already synergies run five of $XXX rate after of annual revenue first we have expecting XXXX, closing. in

result, than exiting This cross-sell expected we're increasing XXXX, opportunities. ramping a the faster revenue synergy $XXX targets exiting As of our million $XXX our reflects and million XXXX. to multiple

During a solution. well quarter debit across see this two we we're volumes demand meaningful payback premium traction the experiencing clients innovative signed quarter We the continue fourth very during as large solution. payback for as ramp for significant as ongoing our premium fourth networks to

allowing redeem points to to U.S. thousands at will First, be them partnering of to with pay millions we PayPal banks. online rewards from with checkout earned consumers by enable of

Second, our of loyalty retailer its X this I'm relationships excited Together, enabling its we're that top announce innovate U.S. the XXXX its with solution. help consumers deepen customer entered across with millions to payback into to with agreement premium client program we to locations.

quarter. also the another merchant during We referral agreement signed large

expectations to initial regional pleased We grow. opportunity incumbent continue from with to sales be continue clients. bank referral five pipeline to our and activities merchant agreements, ability our months, share to sales and first think regarding plans. take will our well sales this midsized exceed we of continue And very across ahead the our we are our In providers

and bundle strong our as into continue giving well Now to new we go-to-market, discover opportunities targets. cross-sell integration our confidence that execution, to are a we in newly-raised we offerings

our to base. We've joint as a client re-loadable provider our solutions metro client first a have expect already new transit prepaid develop solutions has Worldpay cross-selling systems. follow. large for the fair signed emerged Together, to partnership global into with cards partnership this already example, won For the opportunity and more

expense as to our months schedule. running ahead a organization XX very original a earlier our model. With synergies, of steps integration also further functional full drive taking much as successful to this achievement our are timeline, Due operating well we more to accelerated of streamline revenue are we

Merchant leverage segments. us our us go-to-market recently believe We into this synergies, we've only allow changes accelerate will markets. the and to innovation strategies to between further of Some drive our allow Banking also but implement revenue these not our better will

organization. for allow development us our highly in Banking believe have alignment creating consolidated This development We be Operating this Chief technology engineering within best-in-class dynamic suite businesses our organization. a to Officer what software will we and will and also deployment increase Merchant industry, combined of

about As gives you have And great momentum together. can success for us feel an see, even we stronger the come and XXXX. great this companies confidence how

X. Slide to Moving

global a In that Solutions, across market-leading highly a clearly have e-commerce business segments. differentiated model solutions resilient Merchant in our integrated We by leader we're payments. is and our

Banking These evolve, models us financial global provide uniquely next-generation comprehensive from and portfolio as our the from XXXX. expect high approximately reinforcing these we growth them XX% mix, to As in maintain and increasing these banks beneficiary seamless industry position revenue merchant financial as our profile. transform solutions. mix, their of to we momentum to channels the by In markets, up growing as of services technology high community rates growth unions customer to to institutions to large the primary secular and of we're help well in-house Solutions, in credit continue cloud-based outsourced their of percentage of of our continue organic legacy Worldpay expanded have our the trends business we as a differentiated by business grow, growth XX% Due be software. towards durability will Therefore, the continues experiences. of to

Finally, our to an Markets, workflow in and to that dividends. offerings to complex develop helping is automated middle- us front-, We are end-to-end Advanced win Technology our investments paying processes bundled their Capital enable share. and in market clients RegTech with simplify back-office

In delivery addition, an have our increasing mix an SaaS to revenue by recurring growth based model, profile increase by of driving streams. predictable using further we revenue the opportunity

reinforce rates In are organic our our order XXXX and reporting as drive follows. for of increasing segments priorities to growth,

to into First, delivery on our over and lean are we driving past X continue continue will pipelines. investments Clearly, sales we're growing new going to to landmark strategy the XXXX. invest the wins, our new and in sales, years innovation in the to capitalize

achieve will goals. we cost order in integration to and Worldpay seamlessly the our Second, synergy execute revenue

momentum look will in and schedule to further of well-ahead XXXX. our accelerate already are We

Third, continue to we growth scale of the we through our program. on sector revenue drive profile. data Last, will our of the high consolidation will markets order growth our reinforce durability to center continue in efficiency

was more wins of XXXX As year, realization, you and achieving can accelerated in our exciting XXXX. and to have tell a even we by synergy line transformational sight

to I'll round opens Woody discussion up over the financial he now call call questions. Woody? before to turn the to the

Woody Woodall

in like you Thank results I everyone this, to before the cover like would our Slide some beginning call. I'll also XXXX, I morning, XXXX would today's financial recap I highlights to achieved and through Gary. XXXX XX. with we take you, to that of welcome But financial This outlook.

and positioned During our with future. it we into for acceleration continued the eye an company growth XXXX, creating and ongoing now margin superior toward revenue and both shareholder transformed expansion and returns

in First, we significant our profile acquisition executing most company's by transformational organic growth history. the and our accelerated

investments our of durability with like notable reflect new mentioned and Gary the technology These and to outcome our in client wins made we reinforced profile the ones also benefit earlier. our the of innovation growth We clients. sales record that

Given make our will success, to these we continue investments.

well internal Second, margins synergies expanded in as aggressively we before efforts, that integration place ongoing were well by cost Worldpay the as expense through driving initiatives our acquisition.

Third, of these management savings operating we the with below items. disciplined enhanced our line

million by generated structure. expense we interest example, savings of managing strategically annualized capital For our $XXX

cash debt free accelerate pay generated the cash billion approximately to in flow to our only Finally, in generation in free integration transaction innovation We We to XX% fund investments XX% free $X.X of to billion anticipate as since flow and in also to to flow revenue phone we expect used to well our the according down conversion generation XXXX. cash $X.X revenue. close, not but dividend. continue and pay XX% as

loan example, recently a market is managed provides Partners. which majority focused and within solutions acquired markets, area acquisition our an services For small, Virtus and a tuck-in capital technology we segment. of is but stake on in strategic high of growth. credit It Virtus the rapid value,

capital our accelerating results, market the on impact material will a reinforce have to small too further profile. consolidated segments it growth it's While

to will debt the XXXX. repayment we prioritize of times in reach leverage order by to forward, continue target X.X end Looking our

cash and sales strong investing acquisitions strategic continue in to us even drive allow innovation tuck-in to delever. and Our to make will as technology we new

we capital we our increase will will allocation growth dividends scale will return high in into and opportunities markets. toward buybacks. our M&A beyond, reviewing shareholders M&A As capital Absent strategic shift ongoing to that resuming opportunities, and priority through move secular, XXXX

see, XXXX, more. we we would what in you based we doing As our are said do accomplishments even and can on

XXXX, XXXX, First, announced expected XXXX. is diluted guidance range modestly we in to Worldpay turning and be we the now formal initially accretive. accretive adjusted the EPS transaction entire in for our Today, before

was Today, we XX% target we million. Further, increased target $XXX about our our synergy target $XXX $XXX synergy million. XXXX increased revenue million. initial revenue synergy to our revenue Second, XX% to by

again we $XXX initially million. Third, to we which raised million, is expected cost synergy $XXX today

further to Finally, of These our XXXX. hard in continue and growth confidence and the strong increase for the accomplishments see team demonstrate my we accelerating work XXXX revenue outlook and beyond.

Reflecting In finished performance across results revenue adjusted our and adjusted an quarter, revenue organic XX. moment. expanded to increased our and increased segments, $X.X per X% Slide the EPS billion with on the high a top-line on of XXX was three to billion Turning quarter year points during $X.XX which XX%. summarize our basis guidance. by We a EBITDA share. our exceeding strong $X.X the in note strong our results, to basis Adjusted EPS I'll all margins to fourth operating

accelerated $XXX XX. some I'll mid and results continued now e-commerce on Solutions’ payments as sequentially expected, segment the Merchant teens. in XX% XX% margin. color to segment provide saw integrated EBITDA and our strong Slide on in quarter, representing of The organic a million growth growth to high generated

As we expect digits the throughout the and in underlying we business robust, to synergies remain low-double grow XXXX, revenue we segment expect look trends ramp to year. this at as

$XXX market year, quarter Our organic generated and million continued segment a the and segment XX% Banking EBITDA Solutions X% margin. X% the by growth for for adjusted generated primarily demand our for solutions. driven for This leading

impressive digit growth strong to generate We confidence increase in expect new recent mid-single in XXXX, provide the to trends. continue wins Banking and our

revenue strong, when This of a accelerating percentage fourth X% very generated excluding XX% growth representing adjusted EBITDA, $XXX quarter. points that was two item in onetime drove Markets’ million organic segment approximately a during growth the margin. Capital the

to XXXX, project and as we from acceleration over continue markets For show recurring capital to messaging, in improvement growth revenue. our modest firm drive we XXXX

on interest expense in our cost our the schedule. making savings, as corporate progress cost including in are of run-rate plan. of quarter of the of our have is duplicative which million in integration running fourth million Wordpay ahead ahead We're significant Slide to synergies, $XXX XX, $XXX operating consolidating exited we to progress savings, annual issuer Turning made reduced synergies generate running million merchant generating and as expense as costs, operating platforms well also substantial and $XXX well expenses. reducing We

already, With XXXX of we've run-rate in all target cost $XXX increasing achieved the progress savings. million to our are that annual cost we synergy

driving growth, as complete we'll of efforts balance integration completing to sheet fast in with be are focus our our We attainment next M&A and synergy ready to energy enter deleveraging year. as and approaching we more accelerate plans execute possible. and By to able revenue as costs strategic our along be even hard XXXX, these

I set the to Before of details like Slide guidance, the provide would XX. stage I our on XXXX

accelerate organic confident past ability expanded further profile revenue in our to in in growth for We our the XXXX. accelerated adjusted history and margins are organic XXXX three adjusted years. have and significantly topped with time revenue over $XX highly growth we billion our first EBITDA our company's Revenue And our beyond. the in

X% XXXX growth now three in Over X% XXXX. revenue from in the past organic and in X% years, to XXXX, increased

revenue that moving our earlier, significant synergy visibility multiple expectation momentum increasingly and before sales described out approach in confident and have are the the X% growth into XXXX opportunities years. With for in revenue organic higher we the to accelerating year Gary in

margins. to Turning

by synergy have more points be We XXXX. which offset expanded adjusted underlying generate X to of and expansion, the partially we achievement expansion to of will and initiatives in over margins consists additional This XXX points basis ongoing points of years EBITDA of XXX approximately another investments. XXX than points by XXX project basis to XXX margin XXX past

back our re-investing delivery. the increased into investment sales business and portion expense below-the-line are in We interest innovation, of as a savings

investments revenue of continued at these growth. driving acceleration are All targeted of

capitalize the market are We on seeing making right investments to are these a that significant now. we in order momentum in

we is to pipeline ever sure are Our want new win. seen, largest sales I and positioned I've the to make

so start delivery implementation converting sales announced big invest I’ve Therefore, utilizing with you capabilities we largest I quarter. have seen, revenue. clients even as to get also new those our capped In faster record these up we want and wins the big and addition, new this that following backlog into wins we a would expect

year billion, our provide XX%. revenue EPS Slide current to $XX.XX to growth XX. organic of XXXX. on for full of to to year like full guidance X% growth $XX.XXX adjusted first business per expect adjusted $X.XX share we and and and I'd EPS to XX% revenue of $X.XX quarter Based trends, of details on X% billion represents This Finally,

slide. to increase of will for planning adjusted the we to our We expect year, assumptions EBITDA XX% and margins provide the more bottom on approximately full the

Our ranges. new high gives guidance our multiple cross-selling and provide sales visibility, momentum, me significant which substantial confidence achieving in opportunities backlog

Turning to our first guidance. quarter

of share. growth to EPS XX% adjusted expect per $X.XX revenue EPS XX%. $X.XX of represents We $X.XXX adjusted of X% and X% growth organic $X.XXX and to to billion of billion to revenue This

a a After receiving about quarter range As we during then reminder, X% quarter during to benefits the of point we the faced to after XXXX. first ramp the quarter, first upper one-time revenue X% remainder the for to tough toward of our grow in year. over the comp expect of first of we'll XXXX, have which end the a growth

remarks Before questions, wrap for the the with up we prepared up following. open line our I'll

delivering cash in well-positioned stronger expand are continue We value a and to even flow. XXXX. XXXX looking we substantial beyond, free and to continue in to was margins increase financial generate forward as XXXX performance transformational and significant shareholder I'm momentum, year, revenue

concludes may This the our prepared remarks. questions. Operator, for you line open

Operator

have America. go with line Thank Kupferberg of Bank the Please of you. ahead. [Operator do Instructions] from And something we Jason

Jason Kupferberg

quarter. Really in nice Hey. results morning Good the guys. here

XXX that maybe those segment, concentrating estimating than what kind be a elaborate about just you to bit you're EPS of XXX It see the the I guidance to the of is. further, going dollars? some little looks by of like Woody, just So, margin to is I talked share bit reinvestment bip higher a which it on where count is further. little little reinvestment. can be bit to additional you may wanted But front, stream a if wanted XXXX refer

Woody Woodall

we We margin even helpful walk Yeah, about to through margin. XXXX. the be I might thought out you closed expect it with a XX% XXXX for bridge

points lot an investment delivery. the driven XXX driving XXX in driving across to that expectation We've get well, about significant in center points in the the to OpEx That We improvement. XXX revenue. Worldpay incremental XXX XX When aggregates the about XX XXX would talked of and opportunities right efforts that having driving improvement. wins of about roughly basis faster investments, efficiency about to basis get for points. dollars being and the greater to The very roughly are the XX% of as operating talked we driving XXX to see primarily of data and big of wins revenue then we flowing points and consolidation of business we very, improvement. improvement. sitting Merchant get capabilities in are investments, backlog XXXX. in in They seeing the got Those you large scale terms basis into XXX sales Then specifically think synergies as flow robust And with offsetting turning for little Banking XXX than both in a of revenue implementation a there about you -- some to pipeline, points year a about of both the those Merchant, its points expansion Banking impact full think basis I incremental or are basis and marketplace basis Gary basis want to particularly is normal are those points about now. business of of the about towards in the

Jason Kupferberg

you as run that there refined And follow-up, Understood. just synergies rate there of Or had XXXX. Okay. Is OpEx? for little incremental that more mostly cost too? in bit all is in I a million the expense December. think a the increase in $XXX interest

Woody Woodall

We OpEx almost related. every expected it to be dollar

Gary Norcross

Absolutely.

Operator

And to Peller Research. you. line Darrin ahead. Thank will go with go next, Please of Wolfe we

Darrin Peller

revenue results. Nice we Look, saw guys. Thanks of strong trends about X%. Hey.

quarter X. think X When synergies just and Merchant fourth the and the Markets really look comp to tough the on X in rolling I really quarter, was touch the we you the notwithstanding first at out by it can these range at at the rate? XX, And of versus Capital that driven give run strong some not there Thanks. would year? you higher. just a high-end be scenarios like and out that maybe comp, through towards the seven, tough the be then, at quarter better us you seems end the should it low-end if first see that could playing if trend Notwithstanding

Woody Woodall

called out even you end growth guidance be I point prepared of placing quarter, anticipate are a we the from. in that's of where of X% the After the it the at consolidate remainder the think, I my year. our about remarks. first growth Yes, to Again, to came X% high for

be Beyond would to the end that we that, of high expect towards range.

Darrin Peller

to I synergy I'm if in how potentially perhaps. guess the Maybe just revenue what Okay. synergies end run What you examples could just is of specific the are wondering scenarios timing to what synergies, the and or timing like the on revenue low end, beyond, cadence, targets? led raise some the you going?

Gary Norcross

prepared growth Obviously, necessary we the But to solution curve feel premium with highlighted capabilities make winning both really accelerates sure across -- We and been builds. our Banking and that Capital have want question, we will in What to wins. no, Merchant the – the solutions. is into be it’s cross-sell payback synergy to the our because these guidance this revenue to and for propels that the We personnel timely -- Markets install curve just of on-boarding some Markets clearly discussed. Capital we’re growth the our end upper us response investment tremendous implementations across the we the great our Yeah, accelerating as raised in just you that Woody Darren. of raised large we that past, have of see, nature. backlog And remarks. as like we actual the

generation we're seeing segments, for really all the really solid just suite. So solution across next good demand

the rate. year in raise to $XX Our million importantly, installed all pipeline producing guide. more exited business. and revenue. that to close We continue the our that's sales, revenue continues And grow, with us and of run to in our And we pushed

that's them well $XXX So initial million target for of ahead our to XXXX.

just you months, year, at of as pipeline, revenue upper even when at to are the look feel feel ranges. those million quarters on plus sales we the through already And first the through first back you five when $XX in about highlighted our first the really the half or those And about guidance of very into the that good with confident Woody's in three look So end board QX. we that we synergies. point,

Darrin Peller

If and really Thanks we banks Republic won, guys. I are large see Those wins big the that Union. squeeze just First don't often. two you in

So back Thanks. a go quick on little to can queue. you color that? And just give the then I'll

Gary Norcross

in continue more architecture next we was several to this XX wins. talked industry didn't Yeah, the for a about significant top on XX were about this and we XX there open was a modern, top mentioned. a where There moment lot three significant XX saw, allow call one, name, to there we compete finally talked you starting I top I on decades. type – We that future said, much was to more institution, but them the about core capabilities a top a to that lot the also many modern just much about institution all call much And platforms. is think as transition instances, multiple going that go this in very and very lot to we top demand makes XX pent up is talked tied institution, that to statement that of a a And tremendous and extremely decades amount global there more quarter is institutions marketplace. to as old this a in are legacy financial the off legacy a we'll XX And banking. through a a of when a large And transformation they're old see market that top architecture. to decision

the global honestly into we're industry good going very is as industry. in the years next next on fact. excited the the real about good to full We transformation pipeline seeing banking is core feel for you started generation basis can this capabilities, So we've I feel capabilities. been begin. I've in what timing about and And spot, when we're far for we're tell a ever for generation as we that really as a investment four like these cycle. very heavily ago, investing seen Three,

Operator

next, go Suisse. Chiodo of line And you. with we to go Credit Please ahead. the Tim Thank will

Tim Chiodo

Thanks a lot guys.

e-commerce sort a be acquiring into Worldpay about does key revenue the in a new what opportunity then, number global markets, rough is? of acquiring opportunity is the about many how confirmation, And a expand little globally. So expansion, in clearly, the to is actually business, could timing, international you just talk should question to in acquiring. also seem to countries. many, e-commerce an in-store store good Worldpay And on But there see in that of And upside a wanted not that formal just leader if my think synergies? we potential markets bit

Gary Norcross

and We're revenues very Merchant about excited great you're will relationships between that be through those as and seen that's working synergies we No, those a our very we about team upside. FIS. We're described. the come excited together not strategies, and the and pushing into our exactly banking right. we're And relationships. actively markets combinations in again, merchant broader other question, are it’s you the under how It's

a aligning basis. to so, And do, We've strategies, our of building already participate initiatives global on up we those like development that. seeing everything countries we on focusing we're out correspond been that the market

that. so more the company. upside that's coming And on of But to absolutely will be the future

Operator

Shirvaikar ahead. next the Citi. with And will go Please we you. Ashwin of Thank line go

Ashwin Shirvaikar

Woody. Thank Hi, Hi, you. guys.

Woody Woodall

Ashwin. Hi,

Ashwin Shirvaikar

example, to like closer I XQ you to solid was X% -- thinking in since kind this X% good be can take these with bridge mentioned they're this hoping close longer. of X% I'm XX little bank, gap, the is versus a synergies because very they're -- X% be the talk longer of of like, larger to seem to ’XX that for incremental that kind top wins? to from how stood Hey, that? a they regards about X% going future earlier much like more It Could might To you question. you by and results. the seems hoping year, some bridge growth, bit large of I’m you events to that

Gary Norcross

business, and But not the only really the on we're being it not amount that well talked that. earlier is call. our Yeah. it beyond is the newer well cross-sell seeing talk we're No, growth a cost you we’re you're sale of and larger differentiating also Markets continue in I dollar programs Merchant on value the demand longer ownership talked we We've growth about then synergies, Banking we business, to now, proposition ability very our it's drive cloud-based multiple a our technologies. What a through Obviously, and playing the demand the these deployments, thought. Capital for multiple, timing month that's implement. raised XX-plus total got not lower on time excited a for out seeing falling cycle, the on the around quarters, about large of XX-plus single-digits rapid right. we do year that a sales times makes when And our market. We've It’s and than whether that, what these lot X% real business the in only on of multiple we driving to or us raise implementation about month this also, in we of that cycle. the institutions over about now uncommon to in of revenue period receptacle goes think, take rates exactly upper

But importantly, to verticals as able in that drive you've wins all being of revenue of years lot our accelerate of take the a combination Woody discussed. confidence synergies. going significant and of profile combination So to of this our share more three growth across out to gives compete sales us is new this got and continue

Ashwin Shirvaikar

outlook that And -- included I rate if might growth provide have you missed have it. the provided e-commerce Got tax missed and perspective specifically it, rate in but within might from TRA just did Merchant? terminations either I clarification you the the

Woody Woodall

of on Yeah, touch those. I'll both

and owner On to and grown an than rolling a ownership the XXXX the of high over back further the slightly TRAs, growing that XXXX of the lower the average, growth higher structure with Ashwin. average, e-commerce to deal to e-commerce deal integrated and XXXX in to TRAs, integrated in on actual the immaterial benefit structured e-commerce EPS rate, and grew mid the high timing XXXX only mid just and regard teens actually way is together With of the the EPS giving benefit with teens. was to

Operator

Thank you.

will Next, Togut to ahead. Please go Evercore. with line we the David of go

David Togut

morning, Thank Woody. and you. Good Gary

Woody Woodall

David. morning, Good

David Togut

see in returned to to Merchant the QX. XX% growth Good organic Solutions

outlook for down as for growth low-double of and what integrated kind the e-com XXXX? could fee XXXX, you What other break your digit call do expectations you rate one then would channels of for If sort bucket, expected of merchants. organic for and your kind

Woody Woodall

Yeah.

to good anticipate in and feel about strong, so Merchant, that. Growth the think integrated was you If quarter very strong, would pipeline we still is we still planning I to high fourth about e-com teens think the expectation mid be in from and perspective. a

obviously, hoping remainder the profile business Banking saw the to you With what of the being Merchants. the quarter into of synergies some on fourth profile, growth see we're flow the to in similar and those of both

you've to XXXX. So them got balance around

But the synergies all XXXX. and we're for revenue the in going Banking pleased the double versus into blends expectation segment. the with roughly Our pleased are certainly yeah, with around quarter, Merchant growth, fourth the overall XX-XX, acceleration digits, still low of looking segment

David Togut

Got it. then as a just follow-up. And quick

in I points share of Can you guidance? of are in front pricing specific that your that any and into think what of there consolidations XXXX with on kind model us basis are from about historically XXX you revenue for consolidation baked annually your headwind kind pressure. expectations

Gary Norcross

no would anything the historical similar we we model, specifically that real headwinds we competitive outlined, have than into don't point, baked this always change Yeah, have say would David, of other so I there. at trends. levels

Woody Woodall

banking impacting our what consolidation think primarily not in that's we're from that's Yeah, we're in going projecting across markets we the industry, group dramatically saw but base XXXX. to we no, is think where, when we're we not, about not, client from to the going continue, accelerate obviously capital

a it's been, it's consistent trend. been fairly So

market. consolidating. customers things are we're the about the FIS' regional is positioned of nice that the to large that doing in because tend typically Those position the be in One

instances that So closely beneficiary but the watch in over and pretty a behavior those front. lot we've of been it consistent modeling well continue of But we'll XXXX of combinations. on that, to

Operator

Koning Please will Baird. of go ahead. we to Dave Robert. line W. with next And go the

Dave Koning

better when so, of the think a since of or think $X.XX then is $X.XX think ago the trying little know first bit Is up or all you it maybe what it maybe rate, maybe we've benefit it fair what brought these guess, not $X.XX I of push of then better. put number, tax a like lower Those I synergies, had, And few we bridge a investments Yeah. guess maybe have refi, just you from so, are guidance. what's I no cash that incremental bringing and back looks to first down, gave use quarters the fair to would bridge? in to like down share really in two real least count that little that at XXXX. a the things It looks you're accretion

Woody Woodall

shares we benefit. We we round When with fourth that grab saw we yeah. as delivered didn't refi delivery, not guided we sales think in close, and reach was pretty and at point which buying and the certainly sales described We opportunity are back third the second that deleveraging $XXX the before. to reinvest being quarter into targets. an kind absolutely able in anticipate and execution that along in the to million pleased of we're savings. our another I until this or interest accretion of quarter, market the That's go of We so back

your those two deltas, Dave. big are So primarily

close. pretty it got You

Dave Koning

modeling the is Okay, hits that banking is solely and then, good. in size and ones, of quick tough that really And QX when comp the segment. then two the that acquisition in

Woody Woodall

was is in QX. about segment. it relatively The million XXXX. QX in acquisition in revenue comp in banking roughly $XX we contribution early tough And of the The closed small

Operator

you. next, Mihalos Cowen. to Please go we line up And the with go Thank George ahead. will

Georgios Mihalos

sure Gary did missed Hey you it, give guys, the questions. my what I in thanks. is year-over-year. Thanks I guess, Woody, but for taking not I'm if and increase backlog

up last X% it was think I quarter.

that, you. any on may on segment Just curious color if have strength you surprising to specific any have an been and that update

Woody Woodall

dollar didn't give we talk was seen. about a XX-K. disclosed What backlog that implementation get highest will of was the of backlog amount in ever the did component We specific backlog, overall the that I've

in amount, the that plus three three big While didn't some dollar give in wins wins connected core Gary it the we described certainly banking the Merchant. big to of a four, or

Gary Norcross

has digital, across solutions, what's on core really and solutions And and our SaaS we saw the across really great transformation. Obviously, several technologies. growth segments next in strength we sales in about with the things omnichannel times strong highlighted, e-comm strength business around Woody The we markets model and saw our saw our our business. doing the going we're on through of generation we're Tech frankly, three quarter. of in cloud-based Reg then whole talked Yeah, the integrated next-generation our great the all across there. merchant things the some Banking banking saw our doing call And year capital for our

So new we're obviously is unfold, very and that which with a pushes of, pleased XXXX 'XX lot all into to we of with how us have good. of deliver sales a lot on,

Georgios Mihalos

Well, that's great.

you on from the standpoint or if guys Visa I consolidation and guess just if and curious, the raising And to the follow-up, competitively curious e-comm it I'm of to been on in a interchange we a think adjust looking whether some Europe will now partnership business merchant that build You little gears then side. have any can really the on impact potentially shift side. opportunity. quick just has your bit more just up perspective kind as a

that think Thank you business. will any impact if legacy curious the Just Worldpay on have you.

Gary Norcross

we continue feel any continually positions, look feel in on and good Merchant things. continue point merchant on, when only provider At our our we very the watch good you the any focus When Well, kind activity, globe, M&A our of the very our about partnerships watch of look all about closely. especially all ability. global our our be we scale combinations scale, obviously ability across going position you on to very at e-comm at and that we'll in but to truly to -- we'll this look -- time, those we and at

on these pass as typically transparently. structure through far all very those we of As fee our

impact those we're obviously, moment. But working we changes. any through see don't at So the

Operator

Willi Thank the you. Fargo. line go next, go Tim And with will ahead. we Wells of Please

Tim Willi

you, Yes. good I two Thanks to had questions. morning. and

of pipelines for what focusing the and five bit. on was, in and where last point they've talked first a retailers we the the you at to platforms. When of omnichannel, is, operational back again the sort sales reevaluating whatever of digital The sort substantially capabilities to about over four back-end activity, with retailers again the Worldpay it built about have years commerce Merchant, years, Thinking now investing the been aspect that side, think about little are you are this. a

Some them of side, got correct. to consumer

than the And a pipe wondering the global even that might ago, this RFPs for or escalation there be see down in a an down year different so sort with farther and sort journey if retailers. now half something might of we coming of is you year omnichannel ago,

Gary Norcross

would but a months. what only you question. increased cycle, in obviously involved I wouldn't over six five an say is what -- would sales RFP I'm our tell yeah, little been What activity, now, we're months a to is, demand seeing you capabilities. seeing say What we've and good I it's we're in the I increased increase Tim, pipeline for telling

the leading in up acquiring Worldpay that. some new They significant Obviously, our around platform. made made had some significant some, they also into leaning investments obviously UK the some we're so combination. investments had omnichannel had made And e-commerce. investments to in significant on

to all things, compete had and look done you Worldpay, between of us very Vantiv effectively. in when allowing on of is those on all global the playing nicely success very at a into sales what consolidation that So they our and

we're highlighted, solid my e-commerce as and good in good in one sales omnichannel across strong the prepared very especially growth I and seeing Europe pipeline So success remarks.

Timothy Willi

that as is along this to Great. this looking through force and of sales, and I'll the is Anything integration this making a And in move queue and cross-sell cross-selling. are call? kicking on and and in on follow-up always Worldpay any call for maybe lines performance lot optimization my think the you guys that sales you cross I selling your know structure you then changes sales at in terms back talked been there hop those compensation on through help with highlighted has effectively, elevate and the selling you about

Gary Norcross

create thing want to change we the You was make together. do highlighted That's execute the that commission important same and prepared an because credit We fact our for everybody step been always they got to the very before and last calls, any want to force. actually pulled any didn't confusion to prior got know we combination that sales focused we the sure is on across us want plans.

pull-through. made the think to haven't we everybody those to changes other our because of cost I we're and opportunity any because giving an now products. pull increase these So helped That's

across think it just finding the and other more remarks highlighted we're customers. it those call of resonate we the I side on the the capabilities and prepared more with companies is in two that existing

That something growth built that lot an didn't create during out. now identify out in cross-sell our opportunity. we've a that into Worldpay of a see existing was we a I has to now of due opportunity really So we as came highlighted diligence. that that prepaid But what opportunity whole allowed us customer new and

because really we're those together the thought just The identifying think team through benefits team a and and of you're teams in be together the pay seeing of on I cross we we'd the integration. full pulling those sells. XX two where months a So working coming as that things just ahead opportunities,

Operator

Maurer of line And next the to Craig Please Autonomous. will ahead. you. with go Thank we go

Craig Maurer

Good questions. Thanks the morning. taking for

seen understand least UK year Visa meaningful wanted allow from in the to a I First was compensation, underlying our some Barclaycard as etc. I hit to there. weaker wanted you Thank And trend expectation we've to at than the stock-based more there you. to in secondly, significant is, than understand guidance call-outs higher significantly what's and assumed just this uptick UK trends of the or

Gary Norcross

no other not at though business got We've the some that the are off to as the UK really words, in We volumes In saw recovery. also in pretty volumes where -- modeled prior in modeled a front, we've modeling leadership much new We UK. comfortable with already are we we're also frankly modeled modeled quarter little a the to very about our -- them that with end. significant amount. fall calls, our, we've they signing. recessionary talked on were UK about levels. We've we feel QX. softness we've on but in UK, Well, in in at But the

as an we in is grow really the So that well. UK there think opportunity share our

with of together we're the coming saw on UK much front. for in pretty So pretty we consistent that what quick modeled what team we XXXX. excited the is XXXX answer is the But

Woody Woodall

comment, it in compensation stock around majority vast the the fourth accelerations related of On activity is the quarter. to severance

Operator

you. Thank will with we Please Barclays. next ahead. Ramsey And to El-Assal go go

Ramsey El-Assal

also Craig's guess been factors can in the taking your bank question baked presuming with year a coronavirus you just for dovetailing macro environment the we've impacts hearing guidance, mine, for external have All you and my the guidance. of you obviously lot spending what and right, on have context comment thanks IT before in on that the election question. budgets of but we just that I are

Gary Norcross

fairly very at any frankly material all, throughout any we're Asian that be for few monitoring of we're it me don't take pandemic dollars I we a will let and these a but is and details. but closely on would comfortable issue. do the see of quick answer million and QX, would then a the that's just But region. a Yeah, the be is coronavirus. impact taskforce to modeled us into not obviously focused very let it that consistent Woody few have very matter impact now get XXXX. in going an the way our it we've Right say If we

consistency we those are the around watch look to growth continue XXXX. But things. world we Any minor at other So through when Woody? we as far as modeling rates comments, the

Woody Woodall

Yeah.

last and softness UK continue the talked model we in we've Europe a about in broadly. see As to the quarter,

our some We underlying quo to in regard XXXX of have with of status from outcome global the terms has of not put anything the it relatively plan The economy. remainder health in election. the been

Ramsey El-Assal

and kind revenue me, some give from could the on of of a synergy then report status secondly, key And you us Okay. lastly buckets.

I mentioned at the that opportunity scale. debit was think now you

card-not-present introduced of progress press, upon. the fully the the you presentation, maybe what there. also are which I the Premium I What somewhat in terms about authorization in buckets, and think that realization synergy of Payback executed key rates was on synergies the presume is inning other in

little but ... you prepared that think on I bit remarks mentioned your a

Gary Norcross

say questions. Yeah. Ramsey would we're just it's with synergies. started great just, our we're I no, getting No, obviously revenue

saw feel about go While we're we've targets. we our excited long feel even debit sales had. our would continues about to obviously targets quarter. and has to incoming tell volumes, my a remarks, put reach to additional in volumes that so you, routing We range very prepared contribute. $XX good We million, we've success our the I well great in done about I and great the way actually got through

innings So those and started. we I say significant just you were I in Payback, mean getting finished would as we but signings. early wins. highlighted some not very are Premium we're completely there, had very some late

a we You PayPal. just are year. and don't opportunities. trivialize huge those deploy are, next to merchant to X those mean I want Obviously, top got those

revenue seeing large started really haven't but we more So Premium pipeline Payback. around growth we're additional than seeing that important and sales

that's, only signed. we've that two So the those aren't

across is on referral merchant program institutions, us has our We a signed banks. the regional in pleasant larger base didn't now our surprised customers. We've number a one surprise. of response that that actually that is seeing predict we're which The very

models, that as rates the just working talked on on fraud on working the calls, consolidation. prior really the we've authorization far rates, about As and data

then those late drive results up we're point doing started So results work, XXXX. the in to I would that argue not doing and this the have even XXXX and will the work leading at

a So signings date the in about very these results, early lot of the early the on really stages but good to pipeline. feel things,

Operator

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

Brett Huff

a on guys. Congrats morning, quarter. Good nice

Woody Woodall

you. Thank

Brett Huff

getting the the know near the game on we're I here Q&A. end of

the just a So little I'll wins. more ask detail on one, core

is, we're I same that you really serve got big the three long just point, the visibility what banks is doing for hearing that? going guys question other do time, banks years. we've if transformations also your doing of Is of a XX their been core about we've you So this guess but the to it thing? And the tipping really what finally big the and that into big been at ones beginning my

Woody Woodall

Brent. had of on. the Even company back And or outsource I'll add FIS. like of follow see Gary one then bank a if a the ago, you couple color, let to a audience to questions XX Yeah. years top the top ever you some we a Investor Day, will was, in XX go

This quarter we saw three.

important is it. that I've this some about we're say of to point want very the I really as a pipeline optimistic it's described, we're full very as So and tipping seeing feeling

Gary Norcross

Yeah, no, really I do.

transformation it's the around a I really about We're it just think frankly have careers. talked of seen seeing a in none our matter, technology in us past. we that

lot And this of so the people But Revolution. technologies require with a a replacement. are Industrial the about newer reality talk going technology, transformation is fourth in these to

be these availability going to new going standards, conversion to not standards, legacy you're that really take this new open a standards. your scaled able to You're iterate go technologies, the advantage of have to through new this

to transformation. that our really the top yeah, bank so, XX making I decision And in remarks, top when their a all XX, XX are have a and got Brett, through significant milestone we think prepared a said you've industry as we seeing a I top go in

banking in Woody's we core lot reasons now We've that's of But points with our next investing very, very we're We've much going are delivery. dead success pipeline and discussions what active but a are. system, why a so generation got frankly banking one early on. on. had platform strong modern of the

expect announced. big we these don't the deals only to So be

I this and with in it, I issue. of meeting CEO, do every about was is excited and Asia is global even customer I over was a we outside in and about met the I we're country, issue. with when earlier every believe January, QX, was just So in talking this

to a global this just you're think transformation this core and the XX see of well occur And we're and getting for positioned I banking. so to I going is going very FIS kind just think across for next years, started. And is opportunity

Brett Huff

needed. Thanks That's guys. I

Operator

last you. comes go Friedman with question Please Thank James from our ahead. Susquehanna. And

James Friedman

me let And just upfront time. you. in the ask congratulations. two of interest echo I'll Thank the my Hi.

to So should think points XXX delivery, basis with is points or 'XX? it Thank reinvestment what a on nature and in we in regard you. about models related of you one-time to then away non-recurring? other remember thank will And our the in we basis XXX about quarters other about call-outs that terms that making call-outs the there basis, of we're should QX, quarterly for any are the while go

Woody Woodall

your question Yeah, first. I think second

underlying set X see X% normalize on versus other of XXXX, only we quarter X% called call-out We anticipate. the in that some that and the actually out think of fourth I be we charts. would capital growth don't the of about points benefit you markets

Beyond other that no call-outs.

original continue outsourcing some hope invest If the here. delivery. particularly larger you banking, continue this we of investment to make certainly invest in go would core in these sales, If back continue I'd to is continue to their to happy be certainly one to we question this we I time? institutions to see or

Gary Norcross

is do we Yeah, want look, that to we invest continue make James, curve. behind to continue that sure, to to growth our whatever we accelerate growth

segments. and all our across results where of So see sales like we've really opportunity seen in channels through moving the, our here we've market got a we the real our sales unique do

invest in as to and investing capabilities So sales have accelerate that further on get help ability our in sales well. they these deliver team, need in and them resources, to market we're and

So is a about all amount can we capture we've in now got these that the tremendous want make capitalize not markets Woody that, of have just that opportunities. talked Right it we to and delivery. sure on necessary demand, people

Operator

with now Thank to back Gary Norcross any we will you. closing remarks. And go

Gary Norcross

the advance a outstanding the globe like our also to of XXXX. accelerate associates to working work hard proud timeline I team to done to thank who I'm XX recognize the are I you. by pays of integration our has across Thank the way want and day months. every also invest. our banks our would full all in world results

please questions, have Relations today's for today. want joining our reach thank out team. I Investor call, you us following any to to you If

Operator

Thank until you. gentlemen, conference after be And midnight Eastern ladies March AM this XXth for replay XX:XX and at will available February XXth.

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Fidelity National Information Services (FIS) 13 Feb 202019 Q4 Earnings call transcript