FIS - Earnings call transcript Q1 2021 | Fidelity National Information Services, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the FIS First Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Nate Rozof, Corporate Finance and Investor Relations.

Nate Rozof

Good morning, and thank you for joining us today for the FIS First Quarter 2021 Earnings Conference Call. This call is being webcasted. presentation fisglobal.com. are corresponding our available release, at website news and all webcast on Today’s our and accelerating Norcross, review maximizing Gary Chairman value. our performance our shareholder strategy and operating to continue revenue and CEO, growth will discuss then Woody results our and Officer, guidance. financial forward review Woodall, updated Financial our Chief will provide also President will the for be Lowthers, Bruce FIS, the call joining of Q&A portion.

to update language. otherwise, risks be adjusted earnings, harbor result measures other the by future flow. refer any measures the adjusted Today’s X. statements. not presented except but The forward-looking new or no These safe will with a the Also subject to statements, throughout Please Turning press presenting whether net GAAP SEC. forward-looking events remarks law. the to of will statements Slide GAAP. free adjusted as are his over are earnings for With in important information, release. non-GAAP this cash EBITDA, described to financial as information I’ll and and conference by contain to and required call remarks performance defined Slide company we information, financial call, company as will These that, obligation begin to share net non-GAAP our including filings X. the as per earnings the are Gary, in on information release uncertainties are who of our Reconciliations financial turn undertakes

Gary Norcross

quarter. Thank achieved the exceeding the year, Good the board across you, and to start We very our strong Nate. morning, us. first for you thank expectations joining in

across our and revenue growth, significantly operating realized segments. shown As expanded strong exceptionally accelerating we new X, on sales all margins Slide

as ramping accelerating synergistic synergies through on Our increased also prior Worldpay well are as cross-selling sales. volumes revenue

synergy $XXX targets As XXXX a and XXXX respectively. million, we our million to $XXX are revenue and increasing result,

Capco new companies strategic flow free to also intriguing the that pleased buying of we results pushing position I’m our fund new capabilities our share we in million exceptional for minority and stake. focus capital During our shareholders of remaining dividend business make and the These strong $XXX the continually client-centric disciplined the of accelerating our a our strength remaining investments success that to in and increased very quarter, allocation our cash begin return demonstrate April, proceeds boundaries leveraged in technology. in stock, back in financial are for model, divested positive over strategy. our our netting

and in Given areas that focus, platform we of in invest the solution innovation demand. consistently greatest

modern our a most provider solutions with unique transform As and in that engage ways. customers with grow their their of a the FIS in market businesses result, their suite new scale enable is clients dynamic to environments,

companies no earnings year industry are an than one growing strong the X full EBITDA organic raise high expanding quickly with start to revenue becoming XXXX, better and throughout to With confidence accelerating positioned. our giving us we year, S&P strong mid-XXs guidance. growth $XX the and We in expect X% our our only in approaching more there X billion, We revenues margins. believe with XXX of already is the

as in XX% a continue solutions Turning in to yield the reflecting of sales areas results XX% Slide to emerging quarter new impressive since well. investments new as X. but grew not first In our traditional XXXX banking, year-over-year, only business in CAGR our

to volume, as card bank. serve digital commercial as example, of with to our customers expand mobile company include customer in For $XX to to now world’s our their their relationship Dot, the solution debit BXB chose support online chat for well this social annual our over Green billion and one solutions quarter media largest prepaid care

BMO XX% our onboarding banking helping remainder our rapid upgrade for us to BMO power our us of products largest of XXth to chose we to are speed design. software’s to world-class banks. With bank, elegant banking making This reach increase scalable confidence upgrade will and year. selected give to moving to next-generation our and to and our the services And cloud-based harness them the FIS wins large also BIDV, core legacy large of platform, share open the modular now are their due with core modern market of scale. them cloud-native outlook chose Vietnam’s win. institutions that which revenue pleased their earlier Harris this growth In our solutions. largest this Vietnam’s their the to by partner to continues and live addition, efficiency. we already customers, help X provide software win, in their financial global the are technology the of processor I’m operational quarter, modernize our new platform accelerated because they to

cloud-native pipeline their market, continuing since our real-time card as RealNet in enables have the more unified our new real our payment allowing transact of solution the As solutions highlight to from to later To support new we’ve money global launch year. seamlessly frictionless merchant this types and the to launched also released several platform types clients movement corporations where payment a outside globe. clients segment X,XXX transactions new of across transact examples, relationships already the than will alongside is this our seen card entire delivering world financial cryptobanking an banking networks and XXX we’ve we we banking on effortlessly customers with we We Traditionally, PaymentsOne than platform. existing industry-first launched experience think ecosystem platform to a have most our capability, also an is had agile their We’ve past solution. about the holdings traditional and consumers for partnership issuing across go more solution, spent year institutions account-to-account of leverage issuing the recently in and to across which increase will over financial strategy of in a to the an clients one networks, another function this borders cross acquire created be markets. of be few the in growth, this around banking, core platform of FIS multiple in clients is in their RealNet strong new being newest all SaaS launched, that in banking and able network to proof to to modern more migrating single the installed view. our and which client and This view Bitcoin demand their payments Bitcoin. time. accounts Once capital and enables NYDIG. innovative

functionality a taps advanced to provide Bitcoin grow the into these consumers reflect new power providing also source solution income of by experience. Digital a banking and innovation of our experience. easy-to-use businesses the launches through technology Each of will in-app our deep One a domain services with through their of new to new allow digital clients user-friendly Our It seamless, expertise.

revamped results significantly evidenced Turning new on growth. as exceptional XX% our our sales go-to-market strategy, Slide to by Merchant We improving X.

Our new comps. doesn’t sales success just reflect easy

up were past over of over the sales CAGR translating an years. to XX% XXXX, New quarter X first XX% the

financial institution continue successfully SMBs. partner serve to We expand program to our

cross-sell this with our Bank we successful we over formed customers, CIT’s on with segment. exclusive merchant XX,XXX expanding will merchant In banking processing CIT an example, relationship an strategic this to quarter. an partnership referral As takeaway, already

property the this education, in partner and ISV as several as U.S. diverse to to our We event network, management U.K. leading range many others. ISVs expand that XX spas adding continue quarter new ticketing, and retail, well span the of salons verticals also Canada from a in more hospitality, and

the of As authorization rates. large expansive our enterprise we global unique choice and global provider brands, due reach to are look at and omnichannel we capabilities, leading best-in-class

e-commerce quarter, pace more than new As with force sales over from our year. example, year. To sales are to doubling an the grow clients won last new by we XX XXX keep we professionals demand, this our more investing this global

we example, new is clients like impressive China. kit delivery for quarter, HelloFresh, the well-known meal DiDi, which company; the Uber of During and the won

premier preeminent also organization. Nature global BetBull, clients sports set marquee betting conservation diverse Intercontinental company; such of won Exchange; as The a a Conservancy, We and a online

to as in industry airlines, this Norwegian We expect Lines like leading travel companies including consistently win the quarter, and this recovers. rapidly accelerate continue share and Cruise to

newly last modernized to help globally, quarter about showing cryptocurrency, growing merchant results this verticals. acquirer the serve vertical technology Xx their of leading throughout with BitPay. brokerages and from FIS for certainly formed X the investment our top grow digital exchanges year. including FIS asset sectors, OKCoin, over merchant a think We and this we selected and As is innovators Coinbase sales is new them in various leading by revenue high-growth of business. exchange, success our in our XX like The cryptocurrency

which next-generation experience solutions quarter offering and to enables for over client expect in are final more clients. the completed first also successfully X.X we a quarter, known We still continue billion NAP, migrations acquiring our and our platform, selling we the the as offer transactions now agile market. to to processed while aggressively modular accelerating that NAP growth During tailored providing us during on

on still new Through and with new our APIs, while platform, acquiring live sophisticated faster gateway. benefiting of seen fully our merchants to the breadth addition platform go launch launched have In global our success we full can from tremendous our our simple solutions. new

million first scale our provide largest transactions than ramping our a post quarter day. than all but years of Our launch. transactions e-com APIs for represents the and more of access ending easy-to-integrate more clients, point X single are new than X in This seamless, per exponentially, less at competitors X

is at in this X of offer is ability differentiated increasingly bring to that All way that scale claim shows that today. from by few our enterprise ready day a can innovation or FIS

also new leveraging our expansion In of on assets, geographic are their support technology us innovative portfolio our relying addition to to markets. into clients

services to brought our several Africa, bring to Since expanded online now we plan has Nigeria Worldpay, year. countries FIS quarter, South countries. we this new Malaysia, later the This combination with and more X into acquiring and

declines XXXX. Capital have progress over Markets, since are peers. the Turning improved We growth consistently SunGard to remarkable growth. to top line reoccurring made to in And X. accelerating I’m simultaneously than we faster pleased We persistent profile Slide In say our changed growing completely business and from margins the moved revenue now we to revenue. that acquiring XX%

with of new sales, are clearly During size deal representing XX% XX% logos that increased showing first share. winning the new average we quarter,

XX% by very increasing reoccurring this New also our quarter. revenue are sales solutions SaaS-based strong, of

expertise GlaxoSmithKline, management For treasury example, and like deep their power our to solutions are leading to motivating select the FIS differentiated systems. treasury corporate,

very suite our our is speed and inclusion. like comprehensive Robinhood. These of X utilizing fintechs addition, track of to are financial solutions, solutions strong record further drive implementations attractive to fintechs emerging In and Acorns

same our help time Slide competitive technology and sales to strategy to X distribution selected trading. a deliver a before and management changing to and our requirements. accelerating needed conclude is Securian of in finance As cloud-based to because Financial to and a quarter who in help being consistent call across power the expanding new growth they my them driving financial online quickly prepared scale, and another company advanced like a are services this success. securities, leading diversified solutions, is risk our FIS example growth remarks new revenue who The handing partnered selected investments FIS growth execution this on quarter us Woody. could the takeaways who with next-generation nimble is operating I’d a segments. while Ongoing respond partner of Futu broker-dealer example, all while to platform. great They generating modeling their enough support regulatory at strong their

relentless Our to margin on automation profile. achieving enhance scalability continues and efficiency profitability focus our and and through integration

return we to through our free growth and discuss and growth competitive capital capital. M&A. a as Woody exceptional In guidance. continuous pivoting of generate of our while to superior financial and to allows advantage. Lastly, generation turn transformation, scale will allocation invest consistently and our now strategy shareholder call flow us through cash returns for see summary, driving is forward results the I the Woody? efficiency over strategic to simultaneously to It

Woody Woodall

metrics Adjusted all Thanks, adjusted will consolidated Starting our which us quarter revenue exceeded share. begin generate quarter corporate segments. to expectations EPS $X.X to within Slide by unwinding last increased XX, of synergy thank our our today. COVID-related margins on basis I a with you, more Strong first the On XX by points driven actions. each and joining better-than-expected increased all, margins to our in for expanded offset from than achievement and segments operating billion, performances cost expenses year’s each of per an of X% $X.XX in basis, Gary, across XX%. contribution results, EBITDA

million, geographic $XXX channels of wins by and new progress fourth an our We increase ongoing bank volumes the to synergies quarter XX% solutions continue and our revenue run quarter’s referral as revenue as synergies, million rate well excellent make expansion. driven ISV at on and partner primarily accelerating exiting within the ramping over to related traction attainment $XXX in synergy cross-sell

we’re to $XXX Given XXXX million million synergy date revenue XXXX by $XXX progress to our by and XX% for target or increasing to for robust million; million. $XXX pipeline, $XXX our and

cost of has successful. been synergies achievement Our very also

We million, cost with our synergy than This cost in have synergies. synergies. million total target more includes doubled $XXX initial in exiting million quarter the approximately of $XXX operating expense $XXX

Our backlog our quarter again quarter. this mid-single the as recognition sales in more increased offset of new digits revenue strong than

to our results. organic segment review Slide to XX and Turning GAAP

impact for currency. segments organic As a and reminder, of quarter our GAAP difference revenue growth between the is only operating the this

driven from X% recent were last primarily ramping segment large bank accelerated on Banking recurring These our revenue from to results and or a issuer wins, by up Our GAAP revenues organically, growth. strong growth quarter. basis X% X%

grew PaymentsOne, XX% quarter, primarily driven from and volumes increased in growth business by issuing economic network the revenue Our stimulus.

year. of as is first recurring the program for our growth with and driving mid-single-digit of beginning or The airlines Merchant’s the and In to Merchant appears business Markets X% organically, into the both be toward driving volumes execution a rebound, X% e-commerce, well including the organic acquiring to points growth to U.K. reflecting accelerated shows quarter fourth the travel year. strong as the Merchant, sales saw in generated significant and nice expect low quarter. in higher primarily high-single-digit first to these America significantly growth by platform. full X% was for continued sequentially our of increased the throughout ramp X% Capital quarter. North quarter. the the revenue accelerating a we team the growing new organically, growth tailwinds trending end revenue. fast continue, mid- compared quarter ramping in performance drove XX XX or quarter outlook as XXXX support the Markets on Capital headwind lockdowns the of our We and COVID of for in a in organic to in the second impacts for outlook quarter and on driven revenue Slide X-point volumes in that strength start

as of growth Importantly, positive including significantly. yield X yields during approximately ultimately the XX% percentage revenue We rebounded, the last exited week of volumes grew quarter March, generating points contribution.

quarter clients revenue to positive organic remainder merchant to second We expect in continue of expect continue in March and growth of global XX% technology Based significant merchant for this second throughout the quarter and the for expand revenue platforms quarter. second comparisons, yield our business. yield and the on tailwind year. execution we we long-term to exit The our will rates wins expanding investments in XX% sales and new benefits making the are

highlighted, and execution market revenue Gary are segments. As pleased them are sales, each of the winning growth we share. With accelerating with strong very of our new

our back to shareholders X.X $XXX approximately returned We approximately price repurchases. per share bought in $XXX XX. an of increased shares March, million Starting the and average at share. in Slide we to dividend Turning million quarter through

end exiting $XX.X interest of our portion return for year remain this which a million. billion year leverage. lower decreased by million about the the the our track by a successfully leverage and to bonds, we Beyond ratio on X.Xx of rate Xx capital, expected $XXX to Total average also $XX interest approximately million we and refinanced year of -- duration $XX.X for expense debt below quarter, extended a higher to

to results strong pleased quarter on our to quarter first year in year and raise our the full second Slide Turning early outlook. I’m based able be so to XX. guidance

growth with expect accelerate XX% XX%, we range revenue a of organic to to For of the second consistent $X.XXX to billion to revenue continue $X.XX to quarter, billion.

per margin As a to we result to than share. contribution $X.XX approximately $X.XX This more the EBITDA XXX high by business, in points of result basis our adjusted margins in of to EPS expand expect adjusted XX%. will

For synergies. an accelerating billion at our $XX.XX primarily $XXX anticipate $XX.XX or driven compared we revenue the increase now revenue million of the full as guidance by prior to midpoint of billion year, to

expect growth The our in making of investments $X.XX and $X.XX XX% to $X.XXX -- With EBITDA new guidance are our adjusted margins growth increase $X.XXX sales share, We and to to XX% of and midpoint to billion to our FIS. increasing XX%, prior outlook, strong was profile. driving an generate all successful quarter for continue our repurchase to share adjusted at year-over-year guidance. billion. above of new By per the equating an of refinancing representing great we $X.XX date, range sales approximately this to accelerating are revenue improved EBITDA EPS a driving to strong we’re measures,

As to exceeding please meeting clients FIS you to we our XXXX. succeed. to our increased empower ongoing their open like a and or I drive forward line remain our result, confident Operator, would for effort for questions? for in colleagues outlook thank to the would

Operator

[Operator is with Instructions]Your Dave line Baird. of from first question the Koning

Dave Koning

momentum. on the Congrats Yes.

Gary Norcross

Thanks, Dave.

Woody Woodall

Dave. Thanks,

Dave Koning

we so stronger and all, ‘XX even. in And strong to just the previous current lag is beyond really or And single like I Or lot about already a But then than of digits be revenue? is of a banking the good. the getting wins do continue like guess, from momentum from now to wondering, your wins. high already seems think really now think signings really, half? back And help first wins this I’m the we revenue? hitting from about Does the it how before do year that? pace how You’re much

Gary Norcross

Yes.

the on really a we’re think sales. sales we’re seeing his side. and team job doing fantastic are Bruce what during confident I driving

banking going to of that XXXX growth remind cloud. continue successful. of of new just you, very I’ll here are lot from That’s our and XXXX. capabilities highly confident these we’re onboardings throughout fact, has -- You are to see us accelerate market. a to our Modern almost all very why solutions these sales, in SaaS-enabled bringing a been in bringing platform he’s lot them, to the

the see out our revenue wins, So as roll is, reality these growth here. and on as all demand capabilities to new grows, you’ll continue accelerate growth

be the of last as speak. over product, enablement, a results the segment center et made huge several cloud So cetera, consolidation, banking we with years banking investment is. the where data now can’t market more seeing new in pleased with and that in we We’ve

Dave Koning

mean in I of revenue, follow-up, looking then QX, guess you QX higher was the I’m the sure a revenue then XXX% was ex make growth, of you about ‘XX. XX% it to there’s at wondering, segment, I as when ‘XX. a XX%, to And Because what tax right. just last that I All right, percentage if relative of just base QX, to the do that. for is the QX, Merchant just shift year? of say want And XX% revenue XX% to momentum to guess that’s QX I

Woody Woodall

Yes.

the April Within is to of the in benefit XX%, to excess in volumes the XX%. XX% XX% tax saw probably X to right, you’re shift Certainly, of there. Dave, we X points

trending feel we still little we’re there. uncertainty like hands around bit a at, our we’re project getting our future. well Obviously, into the we’re there’s So where there. to But ability of

or And confident how can XQ XX% about we we in the that’s that that guide. guide gave the meet to feel for think So very we exceed XX%. that we

Dave Koning

the off stack. bit little QX Is the that So X-year that of there -- reason ago XX% you XX% the to that? puts Because -- a growth for year? below is last a it of off XXX%

Woody Woodall

it’s number year. from off last Yes, XQ the

that meet produced good from into As to we’re of and seeing or X we’ve wanted make about a guide we we’ve then very we points shift last that sure could talked Dave. And X year. benefit exceed, got to we results April, tax from about,

Operator

from question with Ashwin the next Shirvaikar Your line Citi. is of

Ashwin Shirvaikar

they quarter. urgency? of you bank prospects large also look cycle back to what as the sort discussions Can you these act and steady wins give like of now I is maybe? to that the shrinking must baseball had sort with Great realize want of go some deal drumbeat of inside that ask us sales

Gary Norcross

let Yes, that take Bruce I’ll one. Ashwin,

Bruce Lowthers

of the the about relatively think cycle bit we is days actual would a what cycle I say cycle, When sales moving changed close. in has have mindset the say Ashwin. would towards. morning, I the is we the is and sales that sales that What where on little view market’s the consistent that the Good to

pre-sales for And and really kind own, cycle lot on you’re us. their whole of determinations so seeing those process making accelerating a more the that’s people

And so see I think you’ll to this. continue

continuing this Our accelerate pipeline robust this is as area move to we very around to forward and see forward. look

Ashwin Shirvaikar

Got it, Bruce.

incrementally the what is opening Is that down? some also on Solutions. given April. include that Obviously, second Would of here up that into like, mentioned Merchant you incrementally sequential could there? going vaccinations So high sort look benefit that break guys the strength if the UK market and you of over rate question might of the perhaps

Woody Woodall

Yes.

certainly XX% internationally, the and a volume back. growth obviously, is which of volume transaction total seeing growth benefit in The is coming of XX% little excess April’s that, higher to or so in about XX%. We’re saw, terms actually. was we of that blend

international as international strong reopenings openings So will the and restrictions we U.S. operations incremental in to But we’re some continue an forward, of as see across actually seeing obviously, benefit growth believe happening, expectations. compared and to U.S. U.K. both and QX you the move very be and the

Operator

line from the George of is question Cowen. next The Mihalos with

George Mihalos

here. Congrats results solid on very some

Gary Norcross

Thanks, George.

Woody Woodall

you. Thank

George Mihalos

shift a getting on yield. Of on dynamic the delve between growth just sort little in again, course. volume and the that which, to growth, positive revenue the I mix bit of the wanted you’re

like that a in vertical duress curious verticals. Just had by verticals just of just been coming much contribution in, lot looking you travel under that April, And or of much like improvement a underperforming XXXX? some, since how an curious, has back? at exiting a is of being that say, seeing how benefit hospitality I’m really March, obviously, delta, you That driven are

Woody Woodall

example, Yes. we restaurants, duress, But around down opening continues back Travel up. what be in XX%. to for overall and are seeing still retail is

the full will being continuing full volumes digit. for double into yield second the a We a believe be We’re we’ve that and tailwind dynamics the to be low we seeing tailwind of quarter anticipate year guided revenue high teens. for high growth digit year. obviously, talked to single to mid roughly for us to about the And

So exit our plus the we’ve of what The that obviously, benefit will March. course last X% than you’re of X% over will so the yield. rate seen for seeing year. And yield year. and expectations QX would think the April, far, in be dynamics of that week we entire positive The higher, the trend continue that

George Mihalos

Great. Okay.

travel So it is like sounds, again, benefit that still very much ahead you. of

seen in haven’t any much really You of benefit April.

Just as the relates a of it to as quick processing sort debit follow-up business.

has suit of sort any it the you Or curious, those and usual a of DOJ to relates guys the Just as against changed Visa, as is standpoint? of products? sort that competitive dynamics from for business NICE it

Gary Norcross

Yes.

For usual a at point. competitive standpoint us, as been this from business George, it’s

PaymentsOne You extremely the well. takeaway talked prepared XX%. new my about on see the did I what in I business think -- it And our Woody platform. issuing remarks up highlighted being

nice of network. our the great I We’re our think value job growth NICE a has seeing through presenting But team done proposition.

so continuing us, in just share. And take and to compete the we’re market for

Operator

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

Darrin Peller

specifically going look it of strong Nice revenue comment even normalized quarter that and see April data on job new up just to maybe what be that point on I forward with note, the e-com, could way mix some didn’t or rebound growth into Merchant, a was other longer more volume spread, the term, to or any this digital, on a e-com channels relative And that to sense especially what guess print there specific Merchant. with e-com? in integrated of in this very I on on more is at the quarter. spread give us that the When seeing we we’re follow just

Woody Woodall

Yes.

you if of benefit historically. X historically, think about points see roughly revenue go yield over you I back would volume from

once continue over to normalizes let’s continue as to anticipate capabilities would some dynamic out, we continue I that volume see that traditional provide think XXXX-XXXX, market. to call in of we everything yield

airlines ex e-com was air, XX%. quarter travel If in XX%; inclusive and you about e-com the at and look of and first growth was itself, travel about

So very strong e-com, in sales. good growth very

in mentioned Gary the quarter. wins think I about XX

We’re seeing momentum right lot of now. that in area a

Gary Norcross

job with Yes, how we’re Merchant integration, fully up our some banking NAP with go-to-market. the Bruce When us. enterprise you go-to-market, we completion sales has not done Obviously, see channels, that is do you what Darrin, migrations retooling and doing whole look programs at mean, accelerating I the great across a the that we we had team in completed on launched, growth to mean, and our great that’s our integrated the had great the new the quickly everything had going Worldpay team of mean, and our just great I and ramping had as feel and the changes to in as we his gateway completely but revenue I e-com, channel. has sales made only large get gateway behind and channels, in really about big far

Darrin Peller

are -- have on, margin say, for what coming then scale? new And big a terms your ones incremental had now invested last set the around is bit little engineering you to it too, the on a new it year? has skill expectations now easier That’s quick of years onboarding? was, you’ve what checks great the of those is side. like at contracts. the in these coming it We’ve When so on large terms margin over on, banking that good Worldpay, to in follow-up, versus and hear. timing just wins, improved Is for our look And a Access of much -- we past implementing couple BMO pretty it let’s

Gary Norcross

it’s really the of time drive Yes. that’s day We’ve talked about I implementation calls, complexity line. this But on of Darrin. a X going to lot mean,

solution, deposit signing then start a into talked new the product launch we’re of side that about products that launch great retail you you’ll day the we’ve bringing customers accelerate Obviously, is the across bank, that very and our can of on on past. then you’ll in some news once new The additional move lending, as So coming a capability with very, or X. are quickly. that on

only to over But launch excited which still what not the implementation you’re time coming going stream years, So stream why how wins, you is it. revenue it’s think getting about about revenue that the X the line is these on we’re environments, done in so accelerate standing large overall taken And remarkable them bit might little but X of you’ve a hours certain the these day in got day et past determined team where up the where new the complexity automation, have technologies. days literally automating weeks months or new has or things now with job by of to a cetera. Historically, the launch. is

the investments, we’ve demand the to market. about starting really field earlier, newer differentiated now client. us from So they’ve get Bruce talked in in that on the to a And generated see as made we’re these your the within playing point, technologies, put

So structures embrace make they’re a They environment’s cloud-native they’ve with to got to alignment, compete, have the move. their new to technologies in in mean embrace now order change. got cloud. got I realizing compete disruptors. to cost to get They’ve to the to

a in bank So position we’re in especially market. really -- the large in good

Bruce Lowthers

then our the processes got has talked about, infrastructure, applications, add question everything to team really platforms, on To being Gary we’re could business comment. modernized accelerating pivots continues host of certainly of MBP investment, that as now about of the doing focused aspect. to we one on your really Darrin, Gary’s them. And as technology kind your and award-winning focus on infrastructure. we’ve Yes. -- our a our We I If on our just to have and

automated So we just deployment, what for code XX% of a when versus years things Now couple code, it deploy example, about of ago. of just when was you that is talk

really bring accelerating on is revenue focused board. faster we on and So that as the team clients getting

Operator

of with Evercore line question the ISI. is Togut next from David Your

David Togut

Good the growth. bookings see increase and guidance strong to the

Gary Norcross

Thanks, David.

David Togut

Yes.

expectations can half at since Looking the the Merchant Worldpay UK-based? Solutions, this for And for your talk through reopening you the was almost back and travel second return heritage XXX% of of in airline half U.K. year? also

Woody Woodall

around thinking the see in which growth, -- the quarter. that certainly include QX, XX% U.K. We you’ll XX% international to U.K. growth, some is benefiting of expectation reopenings second particularly higher, Yes. would even in our

you, do tell was in But into where the it’s until be For remainder in and airlines. still forecasted it have full travel and going we think anticipate the improvement of to XXXX. sometime not of to that We XXXX to actually quarter. compared air will but and we we’ll it recovery travel We’ll would David. I diluted of year, I lapped see lap think in the probably second closer return be And before some XXXX more we a this that good it then normal, there, bit quarter. get

David Togut

Got of that a mostly good there most that is in it. is there -- domestic? portion well? And as travel is cross-border Or of

Woody Woodall

yields higher and good There’s of are. portion where the in a particularly cross-border there, that’s

David Togut

Got it.

quick compare Capital question. Just X%, final against growth QX since your of in is In the toughest Markets I revenue you Solutions, X% a XXXX. up were believe,

upward like easier get the to on roll compares organic the an the potential seems Is might guide, you and there on be some some of low- there bookings. So that the as mid-single-digit accurate new read?

Woody Woodall

got thoughts to A start fast have a couple there. program. They of off

with first that. activity We quarter. So we were saw second into pleased little a some bit of the pulled quarter

very us to to this of pace mid-single sort that about being Beyond that, end to to in feel or and remainder remarks anticipate low we and digits of but getting quarter to talked half higher, year second prepared still third do mid-single the guide the higher of the the David, then low year, into the acceleration of back year. fourth in digits quarter my we good the about mid-single-digit

Operator

from next Your of Jason is the America. Bank Kupferberg with the question line of

Jason Kupferberg

low the pick growth look just guys months up first just I well year. your your up And to on at Merchant seems as piece I of April, if to maybe like comment Woody, this guess about it X are through first math double-digit the the I that the the single-digit in as just the to the the wanted of you comments high deck on volume expecting X you’re slide XX% together year. trying from segment in year, months

high some conservative. single ahead low So just to you especially double, of comps with still the seems easy potentially

just you’re just prudent terms that to a forecast. if early in and in see taking of simply year approach the the I year full wanted So check math

Woody Woodall

headwind But gives will revenue will the was just be what this are, a the in confidence It’s yield revenue then real Jason. improvement. that for a year to the positive volumes I And over continue that in working the in. trend to the around year The year see entire us the year. backdrop volumes ultimately. particularly think year believe first that’s we high-teens early comment that difficult full course the we’re revenue The last seeing we’ll and was tailwind be year. certainly volumes in the to forecast the mid- of yield we’re our right, even quarter in growth this

Jason Kupferberg

Okay.

a contribution the Xx really was Or being wondering the sales my e-com metrics attention of that more event? that And those XXXX growth year revenue I’m year-over-year. there’s a if Merchant material from One to up that is of this got sales.

Bruce Lowthers

of job, team process Yes. Bruce. accelerating done The sales This our has kind that. phenomenal around a really is

see can a whole the to business continues You e-com accelerate. as

from look historic we’re year. this think I see growth of to be our where to we when our this rate at we year, growth going CAGR

little and So we into year bit feel that, that a will contribute this ‘XX.

Operator

of Barclays. Your next question is from El-Assal the with Ramsey line

Ramsey El-Assal

midpoint ask this Great like at $XXX raised the overall by revenue guidance the to year quarter. just by in raised about million. the -- you looks year you just to guidance outperformance by about I full midpoint synergies about but wanted full see $XXX about It million raise. revenue year the

from there thinking conservatism So in any wanted about I year this but ask just of X contribution to me revenues versus from raise. to like if the terms just were you’re that was curious guidance the contribution core and those callouts It feels how sources. I

Woody Woodall

$XX that. probably of helping revenue that $XXX incremental of the to then over the But the year. up higher of is million that’s we course the of million the we ramp it range it call you about ramp little $XX us of The probably impact course well end at That’s a described. contribution million it in-year performance top towards in-year as end estimate range operating does to as think that revenue is that the today, you and allowed million, will end of the I obviously, terms higher the over of synergies, of tell from about And midpoint specifically. -- synergies pull we’re million $XXX $XX If bottom to of $XX up the the what year in seeing raised to would million our you, well.

Ramsey El-Assal

Got it.

Okay.

in So also looking acceptance the demand which comment a offering to little on on ask comment at I crypto services? on is I could there effort, banking the are think terms contemplating types wanted of the environment crypto side the is ramp also differential about merchant clients there. business the really And you bit some your And of of maybe whether to offer of those you your point. fascinating.

Bruce Lowthers

Yes.

So the a great question on crypto.

our of that at and it, their as something a look lot there’s is the we has needs of lot and are do the and marketplace, how it of about inquiring this I think in demand interest, built a they customers. institutions meet

And bit the offering -- talked a little on so lead emerging we position we an kind feel to to acquiring and feel the in emerging crypto. asset about is well we space, class. And great around a believe them. this there this lead in offering our in in I good very comments, an space as of Gary’s market

continue of the we a great as out there driving through We for acceptance would lot and that, year. to a a to crypto, we of have us have drive growth will and start in expect move gotten that really lot

Gary Norcross

class, be crypto really into seen investment, which a an just around really et right, move cetera. we’ve Ramsey, on Yes, real clear, that. build to I is lot asset really, mean, to

seen. just with and demand job hyper to into crypto, converting has I and remains that it highlighted currency, the presentment it exchanges acquiring and But Bruce been truly to of other emerging so a we’re team our financial where then it, of because finding a They’ll offer and moves as job, of of a an positioning institutions, team run been and great mentioned, And by advantage to today, it. just lot Bruce’s market a currencies the really point done it’s home we’ve these growth nice had, we whether think, identifying of there. it’s a And as of to and point, taking be it.

Ramsey El-Assal

point. as sounds It it great. growth some be capital well at like markets a That’s driver might in

Gary Norcross

absolutely. Yes,

Operator

of question next Lisa the Matt is Your line Nathanson. with from Ellis

Lisa Ellis

X? international I elaborate on wanted new to comment a your the synergies on expansion, you what deal. sort is to likely this type what’s close biggest year of involved, follow just That what’s contribution originally since now well, the you of expected, kind the the of Can acquisition. little was bit from growth X one going of there, up well revenue less meaningful Worldpay on the countries How progress the the more than you’re what’s over involved or and of or be next anticipating?

Bruce Lowthers

our years, here geomarkets. of jump deal time expansion around guys for it’s Yes, as into But in -- and we part add and and the the let geographic our now always Lisa, do us we accelerate I’ll us couple part to going at articulated first our It back of the follow continue in. for a our of of was to been the growth strategy. part rate, globe, to we these was expansion that the of continue clients strategy accelerate really

across team, together working legal playbook the really, really getting put of the with a things is these into markets. think one done our I great has organization, risk teams. our They’ve team our of

And so geographic move I continue us that the through our and will of would see expect to to contribute growth. absolutely to expansion, acceleration the

when I at kind ‘XX growth ‘XX. look see a mentioned, Merchant look at as absolutely and historical look into going our perspective, of organic And organic growth the As the we CAGR we we just from accelerating we business, into

Gary Norcross

our think us I all really allow start Yes. are the that. countries contribution the we you at nature with calls of synergies we a that, we mentioned, where think and volume. are about the just with look that mean new markets new our when open these customers, of you then on see felt I’ll capabilities the quite strategies just expertise I of point even as in and the our those revenue new in to X as we’re talked when confidently as on raise seeing of could bring in look ability the these multiple significant you’re seeing our Lisa. global now to producing. build as that bit, clients FIS’ our for global sales, enterprise up and markets e-commerce new them. nature e-com opportunity of And And at rapidly, And this, e-com, on as integration, they our well, those combination that capture Worldpay, business on Worldpay we day expand the an about you at because a little up stepping launch you opening they’re countries,

into an absolutely markets e-com us So it’s those that, penetrating combination of grow. as our we win-win and grow, into basis they a global really taking on but companies also

synergies. call. contributor So, revenue we’re that as a see, to it’s again on this raising you our And certainly

So coming really together. good about how is this all feel

Lisa Ellis

Okay. pretty just from Yes, before that me forefront know good. differentiated what can Can others you you been or And to for for of. money the RealNet area haven’t like world? detail you always payments, Could you been just a in more this around and is an RealNet, is describe do do do enable to will movement on what that’s exciting. able around the guys have real-time the of quick follow-up you -- I networks on network

Bruce Lowthers

someone was Lisa. going was I so. to you. Thank Yes. hoping ask,

Lisa Ellis

A How we can networks. resist? of network

Bruce Lowthers

Yes.

on. So about and at When of look grow at more in that as of the this orchestration. we want adjacent and look of new RealNet, of really opportunities of really payments think it I kind expand kind markets, excited construct kind things we I to

payment to that very is rails And us connect be really going allows something different it different I this on basis. networks, we’re So a global to excited. think

for networks, way to opportunity there’s really to for in feel for the to real-time and delivery step in orchestrate country clients. we card and payment payments us different banks’ to infrastructures, So, there optimal most it’s whether payments, from connecting a our an need mechanisms central country to

payments I move our about of team, We we has so to involved that think over And the certainly this. you payments, And that network opportunity exciting as and for very really concept a we’re the really think kind as excited lot are bringing real-time we cases is orchestration been decade. be substantial to in going forward. networks use company. know, of here. really But expertise of unique in And of have the a last an

Operator

Dan the Mizuho. with of from Our line next question is Dolev

Dan Dolev

results. great Guys,

Woody Woodall

Thanks, Dan.

Gary Norcross

Thanks, Dan.

Dan Dolev

mentioned you follow-up. you So us really of trends April? in a then some think, Can I the revenue April sense maybe XX%. have quickly, give I volumes, And

Woody Woodall

is April out here revenue think from to the first flow profile. closed hadn’t perspective a We But going of May. the would continue to higher, they’re volume I Yes. than obviously,

outpace the the it. through and been volumes over yield dynamics course The sure. overall how of quarter to we flow for April. excess all we’ve volume April. yield dynamics will But through thinking good will significantly think where seeing flow that’s about It quarter We’re the second the way the in yield for dynamics continue dynamics into robust to second be continue

Dan Dolev

Great. And guidance? then in touch embedded maybe the just to the that, second kind quarter yield of assumption on what is

Woody Woodall

Yes.

second at volume. I double-digit in quarter assumption compared yield the think to guide looking we’re

Bruce Lowthers

a positive yield. As

Woody Woodall

yield. Positive

Operator

Craig line Maurer Autonomous is of The the next from with Research. question

Craig Maurer

Wanted to the ask U.S. the about in space gaming

in I that historically entertainment Vantiv market. position We’re approvals, very significant a strong states digital it. had in has know legalizing a ramp seeing

against how seemed there see how notable might the least So entrants domestic be see comping curious and product legacy I X was what growth new you be in product the a new market at or what to space? you the evolving into domestic

Bruce Lowthers

Yes.

the be to of us very in very space opportunity. see it’s gaming opportunity front done the well things said, look around good we it you to Access kind accelerate of that the our So knows, as doing And slower is, historically Worldpay, we well. that played it at in along in. one and and gaming a come domestically. feel platform, question, you we’ve alluded we’re continue When and your everyone has to is it is in that we is here whether say as market, What would we’re I very finally starting the positioned

have a internationally. We great gaming business

We bear have to assets lot of there. a

and so starts compete think as And we’re to to well compete I very here prepared unfold. it domestically well

Operator

is from Friedman Susquehanna. the of next Jamie Your question with line

Jamie Friedman

any your on I IT own end you for it? how at was might Gary, XXXX. not making you if kind see demand? look Is view you bank are share of Great budgets results that rising here. Or wondering weather? Do you

Gary Norcross

No.

combination I it’s of a think both.

tailwind -- digital enablement demand, in is there and on in with we’re especially self-service think a catching and -- because modernization. I rising some

seeing which a spot technology. pandemic. in spend on people But see tend really end, we is positioned in as we’re to coming continue some so as investment, but lower And made where we’ve be the spend And -- the growing good consolidation to IT we are the bank we cloud-native that are there IT In is out but well. upper the benefactor market. of

banking we the customers institutions NYDIG One we’re and -- look highlighted there at go movement the So platform and platform in you PaymentsOne those. the year, at monitor that success onboarding to success, financial arrangement size and doing what the of and launching in you the of last XXX Digital about there or whether the look scale and new it’s in

So, the last we’re well in because I think X an years. focused over spend to positioned but -- increasing investments where is spend we’ve the made X

So we’ve got and market the good about feel really timing on good really it.

Operator

with from Your North the next Mehta Coaster Research. Kartik question is

Kartik Mehta

just and Woody, FIS the and Gary perspective I business to wanted as on a Merchant whole. get your

able XXXX. the of made been be thought wondering, when of inroads pandemic, make? come all was company that to out the changes to obviously a you does we the I’m originally look what as And profile change as going at You’ve margin for you -- you’ve the the it in considering is lot from

Woody Woodall

the anticipated combination the of We good to able synergies leverage be within the Worldpay No, drive operating I’d business. all way inclusive back directly. no, say not to and really to margins

long-term and that’s back execute It’s our really to on think continuing volumes around strategy. proving I getting out. that

the to and through on new and capabilities. feel continue about go-forward leverage basis we profile to good operating drive margins really margin So our ability a

So, I change. wouldn’t say significant it’s a

Gary Norcross

Yes. all or not team that doing the automation. I moving exactly we’re exceed nice thought job That’s even talked where combination. I moving, what go. into with about regards I a we’re and only earlier next to going how was mean, hit mean round. the the much where very through to really is now going we Bruce it’s to of faster

where taking we’re about all of taking now historical advantage we’re So those the think chapter of next technology, as investments. you

automation very AI-type ability even in even comfortable years, further margins in about and we’re other to these margins and higher our our the new coming technology. we with. to XXXX talked pushing the call, expand and utilizations that beyond due last And on just So about all

we So good and the outcomes. feel positioning really the about

Kartik Mehta

really a about didn’t It the side? question. the the positioned And to at you Merchant is change I know higher. Have if seems then the created last like all on margins well one environment just in more company nature pandemic is seen the maybe the environment competitive or competitive drive if a same. had

Bruce Lowthers

If there. over space, is Yes. very, of been jump would merchant What the space. can course a competitive always history, very been say the I the in I has

our banking space, like just markets. Just like capital

multi-country the emerged at I we So merchant a that the emerged That’s at have the been space. that say those has competitive moment subsegments ago, people that subsegments in vertical, and And type a enterprise about there’s that if will, catalyst, created the that those and subsegments. within you would Gary We complex a large-scale that of well has is commerce in transactions. to we kind have emerged kind of what marketplace. has accelerant are the just an of pandemic as play look it, in look stuff exceptionally talked

that TAM for well as expansion spaces. in playing played have emerged. in looking those at exceptionally subsegments we and hadn’t historically, those these view are very opportunities we of that now And we’re and us. very, competitive some We’re There them,

of and so excited and markets. competitive And moving these about very being some we’re these into playing in

Operator

from is of Tien-Tsin the Huang Your with final question Morgan. line JP

Tien-Tsin Huang

differently more interest migration, of have change already. side, be hearing, ask assuming, just curious merchant sort -- new a or the covered to your finished I there’s that sales I’m little Merchant up of a little here, at a lot in least go-to-market allows vendors. we’re I the consolidating you that bit know maybe and that a aggressive bit motion quite or I’m you’ve activity lot wanted you acquiring platform you and if now with on to a NAP

that. I’d get on your So to love perspective

Gary Norcross

I absolutely our we more. Yes. balls think of to on. starting combination. of had We the forward We the lean the build Tien-Tsin, were did to now when Bruce out about feet we talked migrate that. get to Access But I Worldpay the in as see had all on NAP building I had allows Bruce I’ll -- No, to mean well, acquiring us knew engine. and it finish major of Worldpay. think success, to clients. complete did let And the platform. the I programs it that We you’re sales those

our prepared remarks, fact, In about in more salespeople that demand talked just XXX business. given to the we’re adding the we seeing, merchant

could so give And compete the -- not over that you’ve in success confidence result the last we’re of QX you capabilities and seen but seeing QX. not ramping share. and going it demand saw have the and And great QX that we we ‘XX, in sales also to our back or to only a in win the our indication

great of So get you a for I And ease down in when unified, to we about capabilities, our the on are. most we merchants are access, market, feel modern providers. to multi-country, our large and consolidating do platform ability where think enterprise the more more multicurrency, the all single

Bruce Lowthers

just out for it’s kind that Gary as Yes. continues play a and mature the having point market well a solution set, really we that very And is brought I The space. around there strength would in us. broad of commerce to underscore

moving is So the really us. market towards

we the think And in to there acceleration motion there. so an sales going is be

Tien-Tsin Huang

encouraging. that’s No, Great.

for Just on just and the up, Gary, activity it side, capital seems front. JV ask bank raising as seen I picking too. lastly, some is to -- well private some We’ve you like have on seeing the M&A also in consolidation

appetite your different days your ago? here is bit XX than, a differently doing little here -- Just what’s thinking acquisitions? on So say,

Gary Norcross

at very look it hard. always We question. great a always It’s

that As help is important and and call. you on to to new gone be part always know, capabilities, every our drive strategy an scale M&A we’ve of guys going through

were are changed in really not still pricey properties we We market. last appetite’s Our from think quarter. where really

price highlighted the of did engine. having organically great stock with see our stock QX. sales are the We in we is undervalued. success amount still Woody We buybacks our

obviously, best company, now right So the ourselves. buy we to is think

continue financially for and if see But we’ll watch cultural viewpoint and buying -- long So our at going continue find us into that, us and debt, drive paying to to to M&A. -- I and continue it we timing sense makes down on still we do as lines. market, in that since you’re really growth but can our and as can some or new look into changed -- don’t lean all, we’ll capabilities heavily has and opportunities works curve. be the would to and willing bring back to that increasing we think shares, all our QX transformation But our while dividend investing the

Operator

for now that back turn Gary the to conference will I this Norcross. At questions. time, is all

Gary Norcross

we as the Thank I you. want And to some call. end provide closing thoughts

We competitive with are from than position entered emerging it. the an we pandemic even stronger when

will continue and ongoing the delivering platforms by Our to of value commitment to growth to is our modernization enhance capabilities proposition and we innovation continuous new market. and our unwavering,

and deliver thank key every advancing and are to will to success win the investment team Together, like and In and your continue rely delivering financial colleagues one you our on as colleagues, for to Our and commitments. in are commerce day. We our in clients your clients world. on I’d closing, value FIS, our who each and our appreciate support. hard communities. dedication we on these achievements built the stakeholders work of We

then If you addressed on Investor Stay that have not this please contact goodbye. were safe and you. Relations our team. any further questions call, Thank

Operator

participation. Thank and concludes you Ladies this gentlemen, for today’s your conference.

disconnect. all You may

Fidelity National Information Services (FIS) 6 May 212021 Q1 Earnings call transcript