Fidelity National Information Services (FIS) 4 Aug 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the FIS Second Quarter 2020 Earnings 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. Instructions]. [Operator

Relations, this the recorded. host, conference Corporate and reminder, like would Head is Please Finance turn Rozof. to over Investor conference a I being now of go As ahead. Nathan Mr. to your

Chairman, discuss with will performance Financial business Woodall, CEO, are our our operating us and Gary our trends corresponding thank quarter within we and FIS trends review Chief are presentation seeing President strategy, conference quarter The the and joining earnings Norcross, financial our webcasted. as we being on for our the call the webcast results Good morning, Officer, then is for Web as Today's COVID-XX. well today fisglobal.com. and will are call. you and our site second at XXXX news available seeing Woody release, segments.

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

the pandemic one be Thank you, us viewed today. and COVID-XX joining of thank world. most for and our Nate. for country challenging The will the morning Good times as you

the execution experience. while couldn’t to as implementation, very and However, in I of native intelligence very given and benefits challenges. possible. our all be consumer XX,XXX technologies, than more prospects. and clients us strong revenues prouder artificial results, in our catalyst important to through strong the The product a all development pandemic a our employees of reinforce This quickly behaviors outstanding achieve despite spurred maintaining to the quarter processing our commitments response has sales cloud and our has been these driving omnichannel of is and COVID-XX multi-core wins converting success and changing many automation, a delivering

These with drive later. to accelerate next-generation growth. conversations clients and who discuss are that results suite gaining to that show the sales ability our of we momentum, our will through adopt in competence our Our and quarterly strong wish solutions results company's continues trends to

Slide like to strong to I’d X. second Turning quarter. discuss our

was revenues pandemic’s Our this to of exceptional billion. the impacts This $X XX% achieved growth historic impact. almost despite grew

organic decreased globe, Given shelter-in-place X% restrictions on the an revenue around basis.

points basis as in model. the continue free automation. reflecting We and Worldpay in over EPS our as technology structures the durability $X.XX ongoing faced in revenue cost million business we and as through expanded flow, investments of XXX initiatives cash generated from drive headwinds, by well we benefits to While a margins down $XXX integration our

Given of billion, $XX organically backlog line increased the channel, clear acceleration giving of revenue to our growth. X% strength sole in to us continued sales ongoing sight our

model can clear resilient our our is deliver solutions. given Given of strong business these it ensures and breath results our results, we diversity

us products And in for and a agile have technology markets, industry acquisition preeminent as to In when are of payment world-class invests. of services new Modern in in high-value one-year our company have capital to the world world. brought of banks global the we’ve continued Worldpay with integrated It with We Worldpay. record across Banking Connect and to merchant advancing investments Slide us technology X. One. and of milestone that Digital capabilities. transforming financial significant enable acquiring the two teams including banking, and comes Platform, to brought the track we and way anniversary the e-commerce money be it the Turning the marked Code our the our was Last investment its and week pays came more of a movement certainly market, success the together.

creating list extensive focus we've of by the on a acquisition, seen combined new When collaborative in the Worldpay and past of we together company we aspect accomplishments closed industry. over covers creating We’re unique the with the of the significantly that immediately company. on market. both teams in the last sides every ways the something thrilled July came Slide is in since have is that X the that year differentiated with traction subset The achieved very

We goals meet in to continue and than to quarter, targets. the $XXX synergies in cost annual of well and aggressive synergy ahead end schedule revenue on of our expectations synergy are At the have teams million outpace synergies. $XXX three-year more our million annual our achieved

have we drive we the continue now, opportunities cross-sell We implementing are growing an additional million and to of revenue have process $XX in growth. in a pipeline will that additional that synergies of

journey for next next-generation one position cloud-based four We to network goals investing so colleagues exceed data leader Slide XX, have center early significantly investing our would synergy footprint. data over Our XX recognized decided changing smaller creating successfully industry the of as technology early dynamics winning we are ago to is ability and company be that growth to the a by to in modernization to team. technology. testament value our to network pivot today, a On to center the consolidation forward the allow by XX by to our in the and launched the years us to we Fast years. us in compete

cost $XXX by and We cloud total compute will reduce of our the in middle XX% in have the year. next of over million

fraud banking clients invest Syndicated APIs combination e-comm These our Worldpay Worldpay of advanced open in our market that was Platform, catalyst propelling segments. Banking and They we Modern investing has FIS solutions. on growth and technologies. included payment growth in makes next-generation provide Digital Access stack and architecture innovative for Simultaneously, Together, This our platform, these to investments which capital what our pace. launched segment Lending. componentized Code been Derivatives NAP in with the is Trading at and Solutions modular products One, the Worldpay, the powerful. our the primary capabilities Next-Generation own Next, often so innovate Connect, also our flexibility their application Post based a new are

experience. client moved Next, we on to differentiate building on our ourselves to industry-leading

committed XX simplified of For typical example, hours. service level our we XX XX to agreements sharp many we minutes And of industry-standard for cloud-based to solutions proactively our groundbreaking to the contrast in pricing and FIS. order financial clients to These contracting the models do enhancements even are business support institutions resonating for how it to in our with in make we market. smaller easier to

and future. significantly this enabling and Finally, integrated further internal capabilities journey our to our We and support colleagues communication for to collaboration began improving upgraded we the our prepare enterprise clients. better toolsets, our

in could that the none us off. has ways our and transformation While that pandemic demonstrates behaviors changing accelerated paid the predicted, technology in it have we've of consumer strategic have enterprise made investments

our success Slide around FIS’ XX, on As simple three revolves blueprint pillars. strategic to continued ensure shown

for investments accelerating centers first The and The demand FIS. revenue to pillar that solutions our trends around are in client next-generation we technology growth our differentiated power increasing ongoing for innovation. continue experiencing will

focus relentless driving our results. scalability a on driving Second, of key is efficiency component meaningful operational and

integrate to peers best-in-class or to we strategic continue acquisitions, operational efficiencies, further build allowing with scale on we As lead will us our margins.

value. to allocating record of we shareholder Lastly, strong a maximize have track strategically capital

to investing well allocation technology organic acquisition targets in innovation. Our investments capital in approach includes disciplined high-growth and as our product, both as

sales a results to back Slide on the quarter Turning XX. and on focus

our clients pleased growth, which with our at empower them consecutive solutions announce banking, we a world that double-digit to I’m of cutting now are year-over-year which to embracing than compete in is more changing quarters where years. better sales streak new speed. In Our spans technology extended two record edge

FIS solutions. We our technologies sales platform frictionless our despite They of our omnichannel to and to demand to our chose top Platform second This ways U.S. billion supporting forward because Connect leapfrog technology new goal clients modular banking. digital bank the new the legacy look seek solutions. $X the Platform, value Client quarter, four top during the legacy banks. to due signed We on banking as complex ready ninth ordinances. Modern XX digital win, their bank's for contract experience. future to suites Banking our cloud a One of Code marks to over U.S. robust architecture Modern from Our transform implement including of in delivered remains XX to modern Banking total Digital shelter-in-place another and ability product

lending to financial Our process many real-time pandemic. throughout speedy and services U.S. to and the us the small supporting Protection funding Paycheck implementation businesses Program, under streamline institutions for families allowed

card by period. support ramping to this up during several quickly aided also Pandemic U.S. and operations states processing We prepaid EBT challenging

identify Client remains multiple to now continue our and merchant. Turning adoption opportunities. solution cross-sell close strong of and we Payback to Premium

payment and we drive nearly point-of-sale increased entered acceptance. redemption our improve pharmacy’s with to agreement XX,XXX into Payback its pharmacy cost Real-time example, loyalty U.S. locations. the solution lower will traffic, top of their For at strategic a program spend a Premium with at foot

recently an merchant regional exclusive signed of over bank also We branches. a with XXX partnership referral

all of the will and to FIS XX,XXX provide functions We back-office processing existing their we’ll convert bank. merchants for support portfolio and

in the robust because stations at fuels in-store Additionally, gas technology the and chose XXX enable technology station solution. independent FIS of fraud payment to largest operator our UK our payment

to are Together pleased increasing solution over with new merchants channel. and we commitments to strategic migrate in investments several payments by partners, creative year-end. a have our I’m are we Finally, announce XX,XXX go-to-market integrated developing new that

as top their with will our SaaS-based Clients markets. We efficiencies solutions robust. solution consolidating remains for office back embracing our front, and German end-to-end solution that on operational Turning the middle bank competitor to end-to-end existing well suite. them deal enable to solutions RegTech solutions. capital point differentiated three Demand signed as expand a to by our a innovative are increase

lending a In addition, their finance deal with cooperative a to billion with power nonprofit signed suite. we XX in commercial assets nearly

discuss Woody? tell, the and to the As quarter busy to many very a Woody over this was more successful fronts. now I'll financials you turn detail. on in call highly can

Thank you, our to exceptional back morning. work you empower who to joining and clients, communities time. a and done us support Gary, another difficult I’d thank all through our like our have colleagues very to thank this giving for one

balance expectations transitioning before to sheet, global liquidity quarterly finish board. then a financials, our our our second significant financial I’ll had an results cash transaction exceeded our pandemic and I’ll results has the of quarter the position flows. merchant While our update across trends, with impact with our on begin

quarter and fundamentals, mission-critical We investment model the as durability our business of demonstrated to competitive we This remain overall our thesis. confident position continue clients. our to long-term provide technology in

point by tax driven segment. better-than-expected, headwind and for highlights X% volumes Each filing Turning the primarily a a banking from to performed other, in consolidated and deadline. is U.S. in accomplishments X few of exceeding merchant associated Slide consumer a our well organically, corporate of ago. growth capital quarter. as in decreased expectation durability XX excluding with or strong also markets X% months shift improving as execution revenue and Organic inclusive our On the our and basis, in a segments

as coming expanded out invest the transaction and firmly Adjusted to $X.X stronger in improved that robust be in leverage as May in of XXX increased times, our to high and volumes innovation. points XX%, margin we While believe margins global commitment quarter our flows we uncertain and to remain FIS we pandemic scale, EBITDA basis during even this cash billion will June.

We million the short-term our pandemic. response commitment in in reiterating XXX to cost savings annualized are to

the the run our ahead in expectations, quarter, Our by well our pandemic. multiple schedule cross-sell deferral as rate as is well we impressive bank continued especially channel initial we synergies, achieved integration Payback In wins million through COVID ahead headwinds solution. in revenue see the remains of which as considering Premium ongoing caused annual the of our $XXX traction

excess cost million, million synergies $XXX in expenses. operating of $XXX We of also achieved including

At year, we As reach targeted of by full this are the XXXX. of track on a end ahead $XXX to schedule. of synergies cost originally initial in pace, this million target operating by a two our we reminder, years the end

by In consolidating also we permanently maintenance reduced platforms, in which in eliminated quarter statement. the our CapEx million $XX addition form D&A to operating technology savings, of on manifest itself this expense annual legacy income will

banking, meaningful presence. agreements demand Our continues our of This driven clients continuity our a the clients strong, sales transform to manage continue The have from attractive the that to investments dialogue with business looking we benefit around have win continue long-term their effectively paying digital in their and e-commerce pandemic us their performance operations operations by to we is increased SaaS-based increasing for and and remain environment. we’ll pipeline confidence market are through share dividends to verticals. giving to continues post-COVID and made

margin million, investment Ongoing XX%. was we continues to XX increased with X% leverage to our a decline our of pandemic. solutions to Turning expansion drive by cloud-based Slide and a in $XXX clients. caused associated segments. excluding in segment review solutions to headwind X% point or organically with transaction-related other as XX impacts adjusted EBITDA associated to to banking drive Banking the revenue our X our Banking points shelter-in-place value orders revenue recurring basis representing

performed during U.S. segment deadline June million tax lows. revenue quarter $XX X delay in from significantly the quarter anticipated and a April the of the and better than as trends contributed out into as filing third approximately XXXX. point of May second headwind transaction quarter of during improved the merchant The to Our pushed

down merchant was impact, Excluding XX%. revenue this

strength deadline. came headwind margin in taxes period, the their grew end-to-end $XXX was Adjusted driven the our to million, better-than-expected XX continuous buy-side pay million consumers sell-side due to recurring X% as $XXX over to demand some Merchant margin by verticals our revenue. as organically was this significant, XX% acquisition. significant the representing the innovative delayed ahead early balanced million, expansion in $XX year Capital drove EBITDA and to Worldpay elected representing EBITDA in across of adjusted While prior primarily solutions expansion approximately July XX%. markets quarter,

of recent overview Turning and to transaction an volume trends. Slide for our merchant XX

of growth we next-generation XX% well in flat. exited size the our of for in addressable in to speed Merchant into and Access strong order in networks. and quarter continuing July our dramatically has to airlines. the quarter, transaction e-commerce is when major Given both U.S. June trends consistent while growth capture COVID new of will which of as expansion seen Worldpay accelerate in to experienced as travel we’ve continue end in quarter market. improved strength international increasing growth the returned adoption by e-commerce, approximately invest and excluding with our accelerating approximately global scale, trends and X% sources the the and gateway particular improving volumes throughout with the transaction global Trends

unpredictable for While the pleased improving we with due I not to are the transaction dynamic ongoing trends, will be providing associated with XXXX and formal pandemic. the outcomes guidance

to I flows sheet, our Turning liquidity some and XX. on Slide cash want balance provide color position. to

internally billion remain are the second or strong of investing debt of of or in an X% even balance reduction debt’s and X.X%. others robust in revenue Our increase and of the technology to liquidity pandemic. flow to million In million $XX Capital in heavily a quarter. revenue, XXXX. expenditures and remains due the weighted capital quarter, in $XXX We no leverage from $XXX X.Xx growth the as were to XX% issued quarter This committed in free cash further in paid approximately flow, continue first of average We innovation increased highly ample yielding $XXX strong with million. core. dividends $XXX allows having cash generated down with XXXX the retrenching during by billion a at total interest rate million sheet $XXX invest us organic Liquidity budget. our million ratio XX% $X.X we to of about

results the resiliency turn confidence of quarter model all the be for now for durability While us, strength of couldn't increasing open and our the second our business I’d The Gary future for my team how demonstrates of like of our the challenging unique remarks responded. some financial FIS. closing call of in was to the line we Gary? questions. to prouder back up before clearly I

conclude stating to with continued is growth commitment to Thanks, XX our Woody. Slide I unwavering. innovation prepared want and remarks our by

is of on truly Inclusion to to We be and as very we important safe, pushing FinTech our forward is our don't country the as globally. unrest it well choice. prevalence social us maximize of social employer personally our successful professionally, and our Recent underscores strive become focused cannot while continuing me the at world. diversity We’re to and colleagues racism talent. keep both simultaneously and if to responsibility FIS. around of that in here domestically To the change to all in U.S. both systemic sustained the recognize we end, for

We company, at Latin and are representation Black the including leaders to goals setting significant mix of double FIS. for our

colleagues further rolling incoming programs to related our college for the debt with also are U.S. out loan program problem help participants. to student We increasing

we these our support to continue will difficult during solutions times. For and clients, you deliver innovative

quality. We will and to leverage reach service our and global provide best-in-class scale

For and our our every on which our business. into download integrating encourage social Global from are site. Web communities, We work continuing you we report, our to environmental, governance first-ever factors to recently Sustainability I aspect launched of

to of commitment integrity continue we Further, ESG our organizations hours our financial highest contribute maintain proud with promoting support our and we that our by we the company our communities and I volunteer to inclusion described to ethics and diversity donating resources. and operating in am As both will dollars and report, natural preserving to literacy are how inclusion.

at scale This concludes for above position remarks. reinforce prepared please the are to open global FIS thrive growth. minority-owned in colleagues, will our We our enables demonstrates and by startups how XXXX. Creating spend supplier that environment invest to leadership leveraging businesses our Operator, questions. with and FinTech million line we and $XX clients double drive an technology market our innovation to minority-owned communities and

Thank Instructions]. [Operator you.

of of Merrill Your Jason ahead. America from Please Lynch. go the Bank first line question Kupferberg comes from

top guys. with I question. Hi. results to wanted a Nice here. morning, start line-related Good

wins core past quarters. seven the secured banking over now three large You’ve next-gen

if aggregate wanted us maybe part So to can roughly size as of in revenue how to start live? go could next contribute year see you And much help they as they that, XXXX can in and XXXX? you revenue X% level growth range target pre-COVID into your just move as organic that comment on guys you the and X% confidence had to we

Jason. Thanks,

If you was profile its to step growth. about into X% accelerate a revenue X% us time that growth banking about of back being get we things to one the of able year to zone ago, talked

you wins X% us if are these and MBP will pre-COVID post-COVID to come think world a certainly drive with year these revenue that give being will timing on into or I is signing. the in comes we confidence, revenue and to after X% range about of where that a world more that the the on a today. clients The MBP will,

but talked last quarters, we’re I some we in very starting certainly going to this we’ve at in MBP us in that of where to as think being don’t a but dollar about give So really revenues of gives couple amount start revenue the late point, into deliver able XXXX a seeing X% to X% incremental should basis. of flow XXXX. to those are revenue more on confidence go-forward

Yes.

add to look down you community order Let When very at contracts of these are do banks, large the would significant these compared very, traditional that. in you size deals me else banking. core a banking core just in and hands across to color compared little anything contracts our done magnitude to

this the wins, Platform thing described deposits are but have other only we that's important in not seven point. mind we Modern to signed in those The keep Banking as at know, only really

other to bank. an as portfolios move we their have in and bring products and to portfolios online this So deposit the in opportunity then core deposit areas their traditional technology, lending of launch their newer we

got excited successful on talked core XX Not with to So we’ve top we’ve on penetrating – with these relationships transformation opportunity years potential. is about an about for deposits. core, launches grow really we're real this only the

kind banking confident and really as us over that it rate to Woody good a indicator, X% said, single-digit So makes mid-single time, X%, business into very as the earlier. above digits to and more growth push upper we discussed a of

margin the I quarter Terrific. gave question you margins. EBITDA on guidepost second front. Maybe last a just us for know another quarter

I you will said should period how see margins last I sub as full know to QX year’s was year-over-year last then quarter year So QX. wanted a part EBITDA know on about had year-over-year. think increase that margins basis. maybe of it kind we And of a in that,

a through year, halfway potential So thoughts now that improvement perspective? magnitude of year we’re full any on kind the year-over-year from of

Yes.

have quarter, prepared low guys give highlight seen as you try as the over where trends to the watermark time we back in tried thought in think materials. back a we some we go would we I we – Certainly to that improving of be.

If just the respect at taken Jason. also quarter and line the consensus see quarter. sequential I in QX quarter, not it’s even for about and would expectations, margin I third question’s I look revenue the fourth address and guide. margins I’d QX, think a I for think margins, so go in really it. the though expect with both know my the coming, formal third to quarter you reasonably to a We've third With we’re and expansion ahead just about thought

If two you got and headwind XXXX, XX%. from perspective. third the look about margin quarter going to one margin a We’ve was into tailwinds back

the The operating first million expense acquisition. $XX about synergies with associated Worldpay tailwind is in

And we've headwind pandemic. And cost our The in in contribution got a XX% post-COVID a margins. high close short-term the of contribution XXX return we’ve response taken a which revenues second as transaction as is to them have in would to due margin. tailwind finally, we million revenues to about those world, COVID back reminder, a impacting actions a come similarly as just those that to anticipate

about outlook that’s think kind how the and we’re profile. revenue margin thinking third quarter, about the you of as So

Okay. I again. guys. the appreciate all color, Thanks,

Thank you.

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

guys. Nice results. All right. Thanks,

Hi, Darrin.

seeing just in April a territory. that or talk of March, inflected Can the what positive hit back revenue Let And out examples on giving has we we’re category. segments the segments? are positive reacceleration drivers give the talk banking where transactional transformation the lot needed probably of see guys the incremental quarter stronger closer and you meeting are demand this mostly that guess, in I banking in the Gary, across the transformation ask. given really your then digital maybe to changed pandemic, about the digital and coming because to assuming segment but really, us work you about markets can was to and the I’m you you positive that last? capital products when great gone It me across to structurally versus

areas, No, it’s The both all has volumes did a key Yes. market just banking the increasing. really like It’s question. and capital expect issuer across acquiring some business see transaction Darrin. return business great performed volumes our you very as would well. We the in started

So investments we at cards. the if look made of And business of channel growth. the last the you performed in four flowing But issuer really the see now sales success that double-digit we years because of over all really two highlighted the today, we base newer sales to honestly, years we’ve our technology. had

performance the sales seeing growth later on And board to business starting so to in trend good XX months solid really and that to continue up. going is banking coming see you’re what that’s and

that. we’ve is next-generation that the further the platforms, Connect been trend accelerated And by XXX, then It APIs but new with the years all is when by accelerated openness next-generation area. We’ve top very in which seen systems micro-services, platforms of talking next We’re solution think being now core was really in or a very, in we’ve four strong we’re pandemic. for that of about now our hear that Connect and across in about the seeing banking talked Code sales wins our really banking our also open about technology extends tremendous generation those our growth being of I it’s seeing agile which come you for people Code market is that. digital

in We If that product also you of the look in investment another over several We’ve looking And made lot enablement. again lot the in office. quarter that solutions data at team. the center technology a capital last really out years across product, the and back over by platforms, markets, once started digital strong really middle we and building more looked go consolidation. at started front, robust we when a

ago as market also We micro-services. years and at is open APIs transform now starting several that. that, the hard And pushed look into you to

really we seeing rapid the getting that as the the in the years ago we’re and benefit started next-generation of curve. think we’re ongoing a of we investment growth advantage technologies. pivot strategic that market’s in breaking So that is of four direction, just this And

really very quick up, All a lot. always e-comm we in business merchant on right, follow just that’s helpful. honed A something in the is that

guys. I still seems only Can the environment, seeing Thanks, to companies think you’re it new be it In cross-border was like handle e-comm. I handful could expect given actual XX%, this volume? inbound about you a the bookings just there’s talk of strong. that would really that right,

Yes. No, you. agree I absolutely with

e-commerce and large that with real you really look some these I out global to excited. dealing crown in think of that we’ve been the complexity that, choice see us destination really was being actually of the jewel that at you of comes kind came of continue the deals. from combination, Worldpay the When complex

strong year. that pushing this already wins on demand. focused some very so nice We And had

clients, XX% important up make to looking you’re minus It’s strong carve our existing business, underlying we really at As growth the sure our airlines. travel health of very that this and position. Woody highlighted, when pleased in very at and out so

capabilities commented doing prepared of leaning our really his the in with next-generation platform. number other around to there some remarks, Access Woody think processing and things Worldpay I of a we’re in also

in specifically. payments really about in So position and our great we feel merchant

other a wins. number of us highlight saw You

double-digit really good this And for solid is so FIS. post-COVID, a grower

guys. Thanks, Great.

Darrin. Thanks,

ahead. Your of comes line the next Please David question from Togut go from ISI. Evercore

and Gary Woody. Thank Good you. morning,

David. Hi,

David. Hi,

by achieving up two you can out move anticipate thinking years the would acquisition early target Woody, is target year. the of the end that OpEx the million substantially that this this your or reinvesting or XXX excess year number in about the you you a called Worldpay savings How end that on are beyond of business?

great a that’s Yes, question, David.

I think we’re and drive margin for always efficiencies. continuing to look expansion focused on

amount continue say, back focus had to have on FIS, and that. delivery some here will growth career drive these I looking I we’ve to over continue David. the we’ll to and make Gary we’ll always a we have of that to continue on invest my at growth, if think business back focus and see both a that into that we’ll top to savings need the of go sales implementations, line

Yes. this solutions. that in you expansion, complex delivery of necessary deploy of on growth, this had quarter, looked actually because margin we’ve When – XXX the points important able these kind ramping look, we to David sales got at capabilities heavily as it’s you you’re basis be invested we staff our to

So organization we we there intelligence that our investing to we really scale functional capabilities. artificial margin FIS. and or automation expansion. some existing end drive whether and make But years it and the leveraging today which see continue that to heavily modernization lot want across innovation confident more and But doing we’re a efficiencies, are you have using margin sure increased leverage of lot to more with that that drive I’m COO and continue and for there levers we look of it’s very our transformation with continue at operating whether have to in a get this you’ll to continue alignment expansion beyond to balance make to year, more also sure between driving

you’ve It’s very business, when might organic. transition far that coming start that Understood. transitioning model, solutions are to growth And more higher rate perhaps along about a last few through? you market been capital expect SaaS resilient How we then the mid-single-digit and that plus the in certainly. talked in growth higher quarter to

David. start, Yes, I’ll

grow that revenue group over recurring and sales. markets we the capital a were to from to more as grown in down to within Licenses license staff group. quarter sales the Our the little We see versus more XX% now. anticipate has markets capital continue

starting anticipate would see that. I to So

the resiliency don’t now in I You’re more right the and markets acceleration that into seen capital XXXX beyond. growth some group rate of see starting in but to anticipate

at sales that equally side. did large to sales SaaS But Yes, quarter. Capital leaning they no last opportunities had sales the we on underlying license The come sales at it’s the job strong had saw seeing and just an this sales. into that. it success would And regards fee its what about different. SaaS I’ll in on to selling compared market phenomenal engine, quarter We’ve it doing of into just anonymous the and look the many we’re to rate. a lot lot of when you of on SaaS. Every the We build really growth a saw one once in license Woody with year. really growth excellent the team’s was fundamental banking license look you really quarter. talked And more than quarter, this how markets regards very resiliency They again, with double-digit was sales.

towards businesses two you breaking of shape proving are market be time the those to these So the see the in in some as market technologies. good at very right new

So I doing the are what here. couldn’t teams be happier with

strong in the Understood. Congrats environment. on a results touch

David. Thanks,

Thanks, David.

next Your JPMorgan. line of Tien-tsin question comes Huang from go from the Please ahead.

encouraging morning. here. Hi. of Thanks. A lot Good trends

complex you are the share a taking cost of backlog? anything up side. thinking with in And if so asked, from? Who the much going How about be? the consider to to are some unusual on of these there’s just it, delivery transitions Just follow questions the banking on just

Yes. Look, great it’s a question.

is Our in-house over big into. software typically some here firm or running we’re who competitors off-shoring typically consulting augmented developed form of by are typically decades

complex are prove not scale globe. that very you around really only very suspect, kind transformations of the the years the As we technology that with the compelling really competes well have implementations size. can of do one would in proven complex points company reasons of industry, these only large over and do these the this And why

leaders about, talked We’ve to a the that were technologies are early complexity in company It technologies in program at and installed 'XXs some that the moving to from point. this run So the last lot off XX these were point, through as that some you Woody a large of our are installed expect off that literally as close At this and months. we well one rest status our But every XX have as green these of takes in got customers would years. there’s manage in moving they XX very effort the anywhere were in of of this. that. implementations to I’m implementations

in good transformation these not been very together. clients are they’re to help in for going compete These what is this decades, of how to have – customers the this very at working teams kind been the them drive feel of we them opportunity or about through not have So so excited market.

getting of see And not early. so them us to only installed on of time. energy sense real a getting these there’s these right but pull love anything, If they’d

pleased at real where we’re So are. we

understand certainly for operating want we to on investing we’re implementation units pipeline. We As I be in growth. David, our don’t the bottleneck mentioned our focused with

the our making and sales investing contracts to we’re So meet we’re demand able there that team into be implementation these brings to sure as the accelerate company.

don’t got Yes, tech That’s just it. to deliveries hear. so My quick -- the up, the owning you helpful follow owning one mind an a advantage, should if and be

Sure.

I’m getting versus legacy been you’re to questions this both with of We’ve FIS. how just stimulus. much a Debit I understand. has Worldpay on know is debt and processor secular large outperforming. been trying sides;

I’d can that? figured maybe your of if Thank remind way? So exposure any you overall to on you ask us I And you. for debt your thoughts in

as I’ll to in continue a have you before think color max by of will messaged trends some marketplace. our that lot the Yes. those we and been groups debit give we’ve overall message, disclosed

there. to see continue We growth

there cash I certainly think debt the we transactions will of good term. are Don’t really the to and but in the incremental more past, specific feel long we’re seeing positioned Tien-tsin. that the debit more continue movement for about more exposure there on there, know system the of disclosed and growth drive we out

Yes.

significant think come much economy, much come we offerings. As we about on payment global out cash all we’re were the very actually real the all we jump side. that back the to to not side lot benefits of significant to think acquiring there’s moving not into see really present, a only paying us also a opportunity has talking as And to this about bullish issuing in back how electronic, of naturally that think but about post-COVID, does as of our it of you how a yesterday, card

bullish businesses these So on we’re moment. at the very

Agreed. guys. for update, Thanks the

Credit the Chiodo question comes next Timothy from Please line go Your from Suisse. ahead. of

are on those over for a after But just outsourcing of bit then. there I years. the mentioned and clearly the basis so what developed had When some relationship them Worldpay-Vantiv that signed bit the of of or top broader a banks about related on Thanks. about A XXX synergies. talked augmented original of a that’s banks. believe the a those XX in-house handful up on license a software other on Thank already matter, fall, penetrated question. And a terms related a and follow customers we the you may purchased good last so two-thirds you little since something foothold extent to of FIS been maintenance that think update about of in using you ago taking a that’s you of sort years some paying then follow been be up was or e-comm have might quick already little to there? fees remaining,

on of outsourced legacy are in-house Yes. our It’s of those of We’ve number great our substantial legacy customers running customers got on insightful question. that or number even a technology some those technology. a a –

lending not customers the and opportunity going are runway with Modern a top of technology. of transition number huge through Banking how have the XXX a it’s of rest regional so to institutions market. the Modern their Frankly, of top but those frankly the really do a top real Platform. Banking it through we Platform, have us cross-sell lot opportunity on these watching a bank success And XX entire assets to – only an are to But bring amount and the on of we our for

the a of in lot technology. new U.S. just this So with opportunity

the the there demands prepared we – think remarks, this sales pretty are all transformation. teams U.S. markets, in U.S. easily there runway movement focused for the is also We XX-plus-years of But outside But I’ve are seeing next-generation given now. banking similar said the right as my with in now core

providing color. the updates prior That’s not original you. is the million I know XXX the the Worldpay-Vantiv but I of and were any Great. QX to rate Thank just helpful I you quick this comments believe a target one. provide formally was revs by up you’re wanted of And or e-commerce on synergies, follow that? could around roughly run end in see if there updates year

as getting or it’s related Honestly to the this synergies to breakout what integrated almost too complex we’ve deal deal. company,

about the execution significant. of trying FIS-Worldpay really synergy on moved I And what’s XXX so of being gets the actually is calls. past the think what Clearly, forward. in integrate and the to been million focusing given point synergies. I about beyond we So our to And we in and time? at synergy and results, seeing in some on sales success out Revenue what’s We FIS-Worldpay Vantiv-Worldpay combination But on is we’ve But just already Vantiv-Worldpay it feel really combination. operating you’re the the kind companies going really go we’ve was just the these execution on are successful. this track tightly so track great focused forward. just where at difficult very talked come side

You the implementation in pipeline. this at by can got with year. XX we’ve million just million, was million end the go XXX strong back was a on what cycle of our original more Already XXX estimation which really

about great execution. feel that So

million the completely year. side XXX As this expense done this Woody of highlighted, have we’ll at operating

lot a the just out positive coming teams. results So of of really

great so all That’s much. color. really Thank you

you. Thank

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

Yes. Hi, job. Thanks. guys. Great

Dave. Thanks,

Dave. Thanks,

we I does get shrink? between revenue, SMB, and which that. trends of But those guess kind as take that get between other just that or of or a revenue and – I we XX% volume have because decline gap were tie progress? all better and Meaning transaction some the better, the could maybe give XX% volume then merchant first my some as about of when gap revenue the of of things in question, and core think the closer is merchant than metrics transaction so metrics

should, It Dave. certainly

return, You’ve call it, got the flowing, as see But should versus, SMB trends transaction an drug as convergence of on the see certainly some with issues associated let’s as those mix the revenues. the grocery you there and you described volumes you example.

X% full get the the tax QX full back QX? or back you in do in And get do impact from Okay. X% the you

yes. We certainly would that, anticipate

million guess in follow-up on EBITDA year-over-year down adjusted Okay. were think little forma basis over QX, almost XXX a pro I revenues question, And down then was I XXX my million. a

decline didn’t that in. Why synergies just closely matched actually than pretty they So synergies? with less the EBITDA even the coming given

The about. talked as Yes. flowing synergies certainly we through are

declining margin the then you we’ve themselves think Dave. got our we impacting contribution high reaction you revenue there. costs volumes, rapidly could And associated to to manage also as with as in I the tried

three together the impact. the are those So of really

great. you. Okay, Great Thank job.

on second too. actually adjustment highlight back quarter we be of in thing, results of that on other Dave, outlook, component the and bridging re-put that I’d saw missing just other some and you as some may bonus our might into based we Based the some that The our through the results be you’re there.

O’Neill next Goldman of Sachs. ahead. Your Please go the from Matt from question line comes

that you. double-digit is up. underway, a are Yes. a I result there’s have sort specifically Hi. if of a asked A in core you of from banking number Thank any trends curious trend answered, but Thank was investment been the likely customer and wondering if just my quick guys customers bank like repositioning question. however, a for there the the It quarter I of the you I higher taking color on perspective? around was at the then and sales guys as as level incremental dollars of sounds side a And from follow that your result seeing mobile digital? had pandemic

seen We double-digit we That’s talk every banking out years when TCV. are that’s last and the that of group. coming about for seeing renewal. you’ve clearly the new Yes. repositioning quarter strong And not sales growth, sales growth two

talked is fast that we digital new very, get the digital down issue. coming we deployment And look exactly banking happened, this The had just So their technology We legacy call, because disclose They their underlying can’t cost given that’s in the rates. problem it over in just foundational on really move if what’s high very – quarter’s right FIS. But they business and agility industry years. that’s continued to have you they can’t you’re invest last that. enough focusing and into enough. about framework, they of their at now on retention don’t don’t

Platform, they’re lot in And augment leaning of micro-services continuing so And advantage we’re their the that strong lean and just seeing digital leaning they’re all push you heavily into Banking all into total and now in across back heavily that cost next-generation really of ownership. pipeline. that, a to to trying office of when on seeing of are lower take about to on people all services with of banks then growth just Modern

realize this issue point, spend going they’re And at of given they reality the to way interest this So a have the customers too I their transform in rate have spend aren’t lot to we asked out and this is, have future. decline? think of our to The people why just most in of to and compete on environment long. the able seeing have order given pandemic, be held

through our And that so of benefit seeing success. the sales certainly we’re

towards up Thanks. around just That this of makes in bit. to underlying like and saw the box that more been a things that and of know just yield, merchant on shift mix from about that for we of the example, quarter? the are big away that lower little the how as follow things underpinning grocery presumably travel, kind some has like the question, lot a transactions of But and a I was maybe And last yield. curious talked impactful trends Is then a I sense.

mix on come where volumes That with for and customer they of the yield that’s back, and off what’s a where base is there. component component certainly going the of came certainly a the

much. so Thanks Okay.

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

Hi, Gary. guys. Woody. Hi, Hi,

Hi, Ashwin.

Hi.

the from here. and results and to you to you. Congratulations team Solid hear good

you. Thank

or flow change Can real like you your up headwinds cost out your advance this don’t factors number. that volume-related talk noticed like clarification year? can And you without impressive. achieving taking had make two things call obviously learn said, of through? kind estate So in development, current what why will that? to words, next you’ve permanent? Is quick though about operate footprint, that might years we you you broadly even you more synergy as product other people, in this that goals environment, is EBITDA you structure look the certain So A there. with be In

Yes.

I we talked we’ve think synergies XXX year. if that we more what plus, of you end that operating at permanent long-term of XXX the had think the about about by did,

took were volumes. about so. be in $XXX nature, those set also more that a million Probably to of declining We Can in Ashwin, short-term some of response actions permanent?

through gotten exactly we’re at. We where haven’t

terms But of reduce very of speak, rationalization, of flow in short-term That’s we of that of of travel we bonus, our think cost be cost as may can that permanent working process. much terms keep we’re the of the through other longer return in in the Some how in some will structure of ongoing like out we permanently. that we will terms module things it structure now permanently XXXX terms into the term can part in and facilities and of as right do live expansion that opportunities.

Yes.

Ashwin, you your hard that, said we’re of in examples at – looking Some you real really global actually question, estate.

today. We’re home successfully from operating

real look on we whether We’re offices. reopen even hard taking a those

our We’re also had of done of a really look looking at some hard that. taking travel basis and of some that historically at the we

will all of also lot out our we a in and we’ll a more mentioned, things good leverage of there be We’re the reopen. I number these that and think bringing pointed as spend as technology, but things short-term are toolsets don’t levers through Woody

then will that push into so And year. next

ramping running. around NAP some We large programs, up. these we’ve also growing programs program efficiencies The of have multiyear is been

wrapping consolidation center we’re data program up. Our

So of year as push into well. things all margins will our these also next

it. Got

Okay.

receiving changes on work less be and process of like how have the or detail this on from kind is category obvious And sales broadly of changing, seems sell the kind remote talk about is there. how mobile, branch to would some the environment spending might good environment. mentioned least is at are puts offering of you a how more bank digital, obviously in announcements takes you cracked some little how code changing, It deals You pretty selling around – a that more the some evolving? close great? more the Can

Yes.

in years focusing started increase on ago. we spend that seeing areas really about We’re the four

in spend. not instances not areas done seeing – their seeing. technology we’re do first to the years? So that spending. raises on, type they're where the spending? FIS they’re deployments. spending we of for which over is really of many years. that massive legacy their where is they not five cloud accelerated four, availability last last start advantage three, How They’re They're certainly of What total industry four not any are overall Frankly are spending the were deployment It traditionally ownership. high Those the over to with spending cost on-premise has spending today. Let’s where take people lowers nothing in is technology

in advantage approach. spending area. lot So open important. frameworks API They’re really money that to them in it of has very leaning investments our modernize hard cloud more been our flexibility One, and gives taking a on of componentized their

of into leads a lot seeing to generation then So bang, to architecture, going they’re the do instead around focus our of individual big trying That whether components. something it’s spend enablement. on digital componentized next

business through a that what think you about occurs, truly where the interaction it platform the as is goes platform. no platform, or a where One with our omnichannel channel, matter Digital So really consumer new the unique matter no

only someone in in the over Merchant as our literally one a frankly So in end interaction we’re channel. seeing in there seeing well. is consistency thing and that markets, And the a totally thing banking; and same capital different start same can not in seeing business the we’re channel

legacy. and lot then maintenance in and more in spend of a digital definitely right. really spend traditional a you’re putting So They’re moving They’re move engagement. to from the mode trying those next-generation solutions

on have might great. That’s whether mentioned you increased. something I the whether missed pipeline

is strong. Yes. The pipeline very

to in quarter our pipeline. continues any with we’re in seeing traditionally looking would than at say pipelines We’re in our on to what It We sales. run grow. we’re of are I have very that what going pipelines running today. And our higher pleased Xx given about generate

nice about – lot and pleased very in going a over we’re talked the a the deal everything healthy pipeline. a building But and through And in activity real the our success, that of where the been I’ve flow job of We’ve momentum but not pipeline transaction way years we’re in very sales not your going only closes. team as coming lot seeing pipeline through that out obviously the all well, sales So CEO. decisions. doing is with seeing

shaping time, in point for us. up is this at quarter strong think sales to I be So QX another in

you. Thank great. That’s

the final your comes Please from ahead. of go today line And Mihalos question from George Cowen.

encouraging on Congrats trends. guys very and Hi. results solid

Thanks, George.

Thanks, George.

so within back in just I your segment, up getting I wanted merchant volumes commentary or the to circle to and on better. think June X%

Just of the seem compare like of when kind point the would range digits, an high-single clarification, to that that. that we a or to to suggest acceleration networks, just something X%-ish

sure in that, of you about July? Are getting U.S. SMB more improvement kind like to Just improvements of want thinking has to in flatten it sounds related see make though started better, continuing clearly that to I’m off And that momentum correctly. channel terms there. or the in then to e-comm

sales. the Yes, volumes and I’ll touch base on

right the seeing information line continue to week, out month. trends as in we to see drive volumes by that to We continue message with and marketplace by are and the in continue networks, they

be on those to trends overall. right top of continue We

the that, case continue to the think size the our the scale exposure I and across globe similar to networks. given expect that’s So business would absolutely the and and of we

I exactly, hear e-comm couldn’t the the the On repeat side? you you side, question e-comm George. could on

it’s The improve as but e-comm continuing showing like well Is about to started that or momentum, that flatten additional SMB. to just has sounds curious side U.S. out?

No.

that will robust time, we’re environment as here. think go for think would e-comm the given across it be Demand quite to as continue to that continue trend a continues board. we the I forward for I improve well long in. But

The just is helpful demise Wirecard win of could or opportunity side the follow you from be Okay, quick that to that great. is up new for perspective? it And a Germany, in business e-comm that something guys as an competitively. a relates

Yes.

our as see certainly look some merchants it, for of an that it. opportunity were were on across see the organic sales. around focus markets go-to to Wirecard, through sales really got to continued or success had the opportunity things, standards various the that the we we markets. customers that in continue we but some We’ve of our As some already utilizing our some and they’ve board we’ll a we risk at customers those – Obviously, with utilizing clear signing of other tolerance organic good approaches in and

Thanks, guys. Nice job.

to I keep our today to also in also clients employees their worldwide accomplish without trust efforts, us more I’d they and thank like you. you their not for place and and would ongoing my in XX,XXX who sincerest businesses Thank interest up for running for we FIS. the your results. day. to these every than joining investment our send Thank thanks like to could us

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

for conference your today. you Thank your AT&T conclude does that for gentlemen, teleconference. participation and using and Ladies for

You may now disconnect.