Fidelity National Information Services (FIS) 3 Aug 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the FIS Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' session, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your host today, Nate Rozof, Head of Corporate Finance and Investor Relations. ahead. go Please

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

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

thank and joining morning, for Thanks, Nate. us. everyone, you Good

of EPS our company's Sales billion our company's was high solutions million a broader pandemic. combined success sales we which driving increased because the pays the $XXX cross-sales, second were XX% quarter adjusted value all $X.X the XX%. also advance run increasing in turn quarter-to-date, to billion. and by revenue sizes drove on grew increase synergy largest more and greater world quarterly to our focus and in very our Revenue before year-over-year, laid which than the history. results, out a the sequentially backlog, execution businesses our the Revenue expectations delivering $XXX reflected clients, banks in being growth of results across $X.X than exceeded remain that board revenue our in history, to are This of our way our pivot continued million. $XX enabling to million the $XXX demand, demonstrates invest. Our organizational or now driven with highest strategy billion demand, This or in was rate strong XX% to our strongest is

Our to both revenue to strong year-end guidance our execution XXXX is us million. $XXX and increase target raise our synergy driving

moving commerce and running asset and advancing X% up important solutions, the clients technology every portfolio consider revenue colleagues are in recognize our of their most thank and growth of They and a thousands globe vital are extending outlook we hard addition, In to demand and play XXXX. day. as mid-term to keeps role our dedication. X% the continued of client want for through I our across that around we the our in work economy financial

in they Clients demonstrate ways. Slide FIS' and few recent to demanding traditional differentiation. wins new new like are that highlight interesting of that can I'd X. to their capabilities access so increasingly are to a outside innovate Turning solution,

easy Further, our to ability breadth use financial cloud resilient and of a our technology expand with native across APIs to with We integrated clients serve FIS. have as horizontally their platforms. relationships the are unique clients open

Our cloud look with to capabilities. this client demonstrates differentiate Banking as they sales platform success native demand the with Modern

largest quarter, module. well This to since start new the expansion our of delivered deposit as commercial we the enhancements including release lending of functionality as MBP,

As opportunities with ongoing is cross-sell one exciting the have functionality an of discussed, current previously the clients we modules. additional to MBP ability

a had American and ability quarter, first of to we complex This clients land modern deployment. our who added new This our the feature of to their our checking to cross-sell a Express, large account platform. example is value great

functionality, second add key a a we drives is revenue resiliency on reengineer to capabilities to Third strategic their on continue Third with its new we focus Bank relationships. these for and Fifth a grow scale. a additional to businesses, adopting journey these and important who grow clients example which As FIS provides infrastructure our the continue relationships. is Fifth of ways longtime client, technical expand

our the in our to automated will This is and and quarter, as another they their platform FIS modernize Unity. their us Banking offering for data large flexible leading-edge and other FIS system retirement management wealth the the Modern management provides legacy to and incorporates with insights This to their Third's cash and management replace core landmark expanded design integrated wealth with legacy journey. Price fully to Trust asset technology. with is management, customers multicurrency accounting. provide lay scale yet example leverage expertise will they and other wealth for of with that space. utilize industry foundation FIS relationship leader system with global XXX(k) their in-house managers wealth help win It Fifth look retirement to functionality an Rowe T. advanced rich looking Unity them their FIS throughout advanced

with upgrade PayPal both referral capabilities. switching merchant cloud-enabled and finally, joined to WesBanco to relationships acquiring our our Chevron begin payment And us in expanded their utilizing network order addition, leading In technology. our to

e-commerce all integrating, win. In innovate, important other shown I'm to premium another Payback, the well On pay proposition empowers the retail announce we've we and powerful this that the our consumers future. our to and in-store Premium pleased transform and solution, and example the Slide clients clear outcomes want is the value we a solution network to ramp to we expect is our Walmart that eager approximately ecosystem more of for consumer. and integrated As Payback innovative effect end for begin accept issuers to for they transactions. network out driving and acquiring. effect merchants, both cloud locations I as native loyalty with exceptional, that where points creates the with of our our in merchant continue Both offered clients adoption highlight we the clients as grow. solution the X, have a increasingly on as rolled are to The positive slide utilizing are we our innovative XX% network, to prompted. implement paybacks seeing to participate, issuing created time when by are continue issuer Premium will

into total X% well market. addressable X. existing for how Slide by up of in percent revenue years the This XXXX. that revenue solutions heavily adjacent our as is it solutions We a mix, verticals, our and as architectures. cloud-native contribution over client to consumes the with technology cross-sell to driven Turning invest grow new X% from total from growth and in less belief base is changing looking increases three continues capabilities past solutions new over than XXXX in our to The as and the market developed to rapid ability our which

New total total with than in increasing less in growth, growth XXXX. more solutions than contribution to in contribute meaningfully XXXX also our revenue from revenue to X% X%

years X% to I to Slide to conclude drive through new year, expect before prepared we will points innovation our this in embedded incremental come. a remarks X up and solutions midterm. strong revenue forward, X% of commitment for growth the to growth each growth will handing Looking to outlook to is to our the for with continue At call my X Woody. culture point, drive supporting

the innovative of looking We at trusted solutions industry merchants are a the domestic with we unique of and from forefront right institutions financial the global business their our acquiring with to and of available. our to are all native multinational demonstrate the our for bundle software. uniquely of solve for to cloud page, on side who that complex cloud-native cash innovate for at of for most our broadest remain needs. their Quantum provider acquiring collection serve management clients' ability positioned solutions We single ranging the problems, show e-commerce We treasury Further, scale.

strong turn center for the and and few differentiated of It's guidance. a and X% X% the examples in of driving over for highlight Clearly, to to the innovative pandemic order we now and call clients the in make XXXX. merchant Lastly, to clients to that our in page. value we made we compelling why our confident for drive FIS and forward today outcomes growth. forward growth our us, are during create I'll continue we've revenue investments solutions both momentum results financial these discuss future to investments power to Woody Woody? the through propositions

by Slide growth consolidated joining was billion, exceeded thank each our begin with which XX% XX%. in Starting our I segments. today. on Thanks, quarter driven of XX, Gary, and a second all $X.X you results, outperformance revenue On will for increased our to us basis, Organic operating expectations. revenue

We over past haven't had year. M&A activity any material the

strong expanded foreign between difference XXX is impact EBITDA points primarily Adjusted due growth XX%, this exchange synergy reflecting to organic quarter operating leverage the contribution. and of revenue reported So margins the to basis and rate.

EPS As adjusted per year-over-year $X.XX XX% result, a increased to share.

primarily quarter, win. referral had mentioned, issuer exceptional cross-selling Gary Payback, driven Premium analytics and As by we data merchant processing,

are Given basis. pipeline, year by our on million to rate for annualized progress our we at of XXXX our synergy strength an and revenue million $XXX increasing run exit $XXX target the

announced Our schedule continues anticipated than running of achievement be the to we ahead of deal. also further when synergies successful, we cost

than We annualized to have total $XXX the including in and of expense on-track exit approximately with initial approximately cost in operating $XXX synergy more target are $XXX doubled savings, million synergies. million million year our

$XXX million We cash and the to during worth a a million average at an $XXX bringing sheet price balance year-to-date of to $XXX repurchase of repurchased shares share share. quarter, approximately total X.X flow. million Turning

to Our year keeping below leverage ratio times us X declined times, to on-track the X.X leverage. end

of free excess of in we flow the this generative most is history nature generated company's $X quarter, our in business. our billion reflects Lastly, highly cash and cash the which

and Banking our growth XX review growth to XX% Banking a part issuer segments. in strong XX% to in due processing of platform increase to to Modern revenue revenue. X% Turning Slide accelerated

X growth. revenue were basis segment's The These growth Gary basis accelerate this adjusted bank well revenue wins more recurring large as XXXX EBITDA by full to As another points further results points had year EBITDA expect will margin this the currently to reflecting nearly XX%. Capital revenues and Markets for We live. accelerate this MBP go sale wins into XXXX. growth also for XX%. revenue ramping and add-on quarter, of Banking noted, clients driven strong execution. recurring as markets MBP as as Capital XX% quarter to to MBP continue X% as margin XXX sales to we and expanded accelerated expanded an revenue well recent our primarily from strong adjusted XXX continued growth revenue

revenue to the Merchant, new growth quarter, sales revenue of XX% the includes the largest yield its which acceleration growth in for history sharply of benefit revenue generated Lastly, quarter e-commerce. rebounded points XX in business. XX% Merchants' segment included second and the in

points avenue revenue eased EBITDA and future growth verticals margin it international was of light and high as adjusted XX%, broad-based, Merchants domestic primarily and to Growth are growth. travel like an impressive reflecting making significant synergy margin is accelerating remains basis benefits. in discretionary both cross-border lockdown expanding affected, eComm and expanded its XXX in-store restaurant Our particularly contribution also reopening sharply. orders for

pandemic and North spanning to America International, begin growth online the the our with our across in-store, SMB we enterprise strength position. As of results and clearly and competitive demonstrate lap

continue both In attrition, addition, we've Relative in includes count. grow seen XXXX, yields, and we we'll our no as client to rebounding growth to increase expected. volume and

has bank have We adding Worldpay, the ramping ISV off payments our through new expanding NAP, underlying and taken strong pandemic, multiple gas, the and to including partners, Europe. expanding clearly entering not Access business momentum. strategic countries foot The integrated our completing investing force, sales

to expect second XXXX the of half year. the drive We relative in further acceleration to

We X% Turning XX% now Markets our Slide of prior year on Capital full digits. pleased year upper the guidance which assumes billion on Relative Based to Banking growth in This $XX.X over full approach results and growth revenue for in revenue expectations. million to digits in to for or We an to of accelerated and in expect Merchant represents favorable quarter second mid-single our this Merchant increase outlook, initial year of growth guidance. the XXXX, billion the our guidance. $XXX single the XXXX, year, raise XX% to revenue now ahead guidance U.S. the XX. anticipate strong I'm full $XX

to accelerate international teens in continue discretionary to into We revenue rebound raising versus to like to continue our also share. $X.X half full guidance the high airlines of to our year as and guidance Merchant EPS billion the adjusted growth to year $X.XXX the billion expect to $X.XX XXXX. XXXX mid- $X.XX We're travel and to adjusted and second verticals EBITDA increasing revenue per

For quarter, to the XX% revenue billion to $X.XX billion. third X% expect of and revenue we $X.XX growth generate to

year. the $X.XX points a As This excited XXX expect raised contribution quarter. adjusted and basis for to margins result third in I'm results guidance. more margin will the EPS $X.XX result adjusted first of basis points high we to or about expand our XX in the to in business, of EBITDA sequentially XX% than about our approximately year-over-year

expect Beyond in this a the midterm have I to as outlook X% the growth for reasons. our for generate guidance of through year, Gary revenue comments to XXXX, X% number discussed. we on

First, second growth in our to the acceleration strong sharp underlying increase revenue show and guidance, business. significantly execution our strength the and revenue ability

one growth new make our finally, drive made and increased sales drove investments are just growth activity our beyond. synergy revenue attainment above And quarter, XXXX the our revenue driving backlog strong into XX% and Second, our to and billion and across to continue by continue $XX future which strength cross-selling we've segments profile. accelerating will and in

questions? and solutions emerging empower clients. FIS would drive would I their to in forward you our of to ecosystem our like line to to thank verticals. us colleagues native grow for for highly cloud new open helping differentiated, Our please efforts and is Operator, the

comes Instructions] of Thank question the David Our from with line you. [Operator Evercore Togut first ISI.

now Your is line open.

Good and Woody. morning, Thank Gary you.

morning. Hey, David. Good

of $XXX quarter over Looking margin it's quarter by $X.XX and million increasing EPS implying basis less the EBITDA second beat at second about expansion. the XX beat, the guidance, over by XXXX points

to really talk Gary, just second you've follow-up, Square's for in then national driving curious the out the what Merchant So extensive innovation, and can be might their the I'm Solutions you product both do half, business. acquiring? respond more you Merchant intent to a of And yesterday, space with your margin higher account OpEx? how laid acquisition Afterpay Banking expectations as and move very to in into

profile, margin that's all I'll right. touch on the if Gary,

Sure, absolutely.

Yes.

points new year, XXX increased margin and XX%. than drive XX to to to the term. continue $XXX In more We expansion, based driving and I'm to longer excited including the the we expect million basis up of another we points quarter, basis XXX our competitive our on XX% this sales position. guidance, about significantly the revenue strength

this new which focus very incentive as their itself, revenue significantly reward successive get the wins hits the to our increasing full accruals big from these clients David. margin these rate outpacing we're it we ramp strong we very people compared Margins running, of performance expand those some On as are of for quarters and operating will up as margin plan, some our to continue run year. create to pressure we we And wins, contracts. does on near-term as

Yes.

type we're sales we two we to frankly, record growth as very markets. don't Square in our merchants. want coming down feel As we're think it the over far starting the playing the that our into to have results. our as our sales in partnerships largest and we today, competing going and the But on lending national that it's that got force in payment verticals, that. for through the our but retooled acquisition last our of at you're us. enabling buy-now-pay-later, point with market risk going quarters this enterprise, pushing if that because when merchant minimize now It's we comes that another acquiring and we've clearly, large SMB of accept. that, Afterpay, the seeing But exposure our want David, make available is sure off We're our in only multinationals, across to strength to that the Obviously, increased take we've type exposure. in growth credit another we're sales nationals, most just just mechanism. credit started unsecured But down to market. space not view they our We'll and But the that push doing another comfortable capabilities that's offer in buy-now-pay-later customers extensive you're buy-now-pay-later time, our we're to large taking as we payment merchant to see

Understood. Thanks very much.

you. Thank

you. Thank

of of comes Bank Our with line Kupferberg next question the from America. Jason

open. Your line is now

David's just the just of Good thoughts to on attractiveness environment. type going was what's build of get actually transformational morning, guys. question M&A on first your given terms and in My in

that thinking specifically? Just how you're for about FIS

Yes. Look, had in Jason, M&A we've transformational our strategy. always

opportunities contribute to to We The that continue M&A capability you're Right our new an team is Things bring engineering stock or of undervalued. seeing additional for out job expensive. new of group. our existing new a the the are growth. now, see look us we that of delivering Absolutely. And to market continue a accelerated adjacencies. revenue do excellent in results our Will service product future? intrinsic of is doing we the in value or

to flow competitive share feel overall manner, our gap set. good our and very focused position activity our and fills we're product doing of we it but cash fits M&A free on buybacks Right in deploying a obviously, very not in so And if capability. in that strategy opposed about now, we're

record hit an mean, results. a sales across quarter in existing and You're largest Merchant. Banking, us sales Markets, quarter. was We from board, the seeing it come through across numbers the Capital sales for in that record second for our across I across

demand products the and And and about will that execute. we'll market, but for the if good look M&A always makes our at. our sense, continue services really something we're evaluate where strength of feel to be in we - we and position So, then it

Woody a bps margin Okay. for the there's QX margin looks an follow-up on implied to expansion from like about just And of XXX front. step-up of It maybe QX.

on there contract of the some that calling can just top cadence? it visibility I you quarters? comp acceleration? on the the cadence ramp-up it? And So just get considerations or QX but I talk the OpEx you about to visibility ramp. just out two driving line the some sense were know there some costs, the Is and there is What's between incentive wanted the just

some in as running and them fourth ramp get time. point certainly the clients There's quarter Yes. at sign up the and that we revenue and in drive

the I between think We off the there's and are all Jason. that, also and to more is about good some the consensus of revenue year feel accelerating segments, just QX fuel to the no for outlook the to of remainder the honest drive cadence spread and with QX, growth. continue growth very little a profile you, quarterly continuing three than be across

feel So we good there. really

you, Okay. appreciate guys. I the thoughts. Thank

you. Thank

Our with from next JPMorgan. Wong question Tien-Tsin the of comes line

is now open. line Your

to like a sounds up being Always I pipeline, the the X%. good It thanks. sense to really backlog want Hey, on connect. strong. just get Gary, is

of a synergies. revenue modernization Is revenue better the efforts synergies? some is sort return the or on Just million. the investments it by can you've coming sales, Or from up taken decompose the those really Are backlog product on? - from trying it heard understand to is I of if the Just that driven related? new are, you it $XXX I think, synergies all unpack Where from? on the

and acceleration XX%. pleased question. seeing great synergies our seeing of Yes, new that revenue number we're Woody across I Banking integration, of mean, Worldpay our platform real a It's and board. But the coming also adoption highlighted great and those is capabilities. the we're Modern products. it's over with the us with cross-sales on innovation product you're succeed a really up

You're seeing PaymentsOne with our issuer up substantially. business

seeing about You'd the look and and Capital at revenue in growth what end-to-end Capital there Markets back front, done across accelerated you're we've Markets, in as well. middle office, solutioning

logo said, was customers capabilities it cross-selling as when a it I gaining we're up, three were Worldpay perspective. sales sales efforts. synergies then share - record revenue But really to from holistically, across sales, share. we So was existing a at to the and new cross-sell integration had quarter actually or look all new market products was product delivering taking It of existing segments and

So years guys seen couldn't channel. have continue point that record sales demand had this. with to as be sales multiple We've you accelerate. and our more And pleased now of I seeing out,

just you've that's has rates So up the obviously, see bullish growth on global growth forward. U.S. the as across Europe opening, see us in that trend see bit accelerated three as all And reopening, what you're so pandemic, seen well. the future to little is to to now the and more lagging starting continue And FIS. consistently there we're segments Asia. you'll starting a But of going

It was based. Perfect. broad

follow-up. quick real Just

of mind, from moving quickly, conversions Just modernization Fifth you. It's just value you the you is a Thank know modern going on there in modern there? And from the the a then, contract in to backlog? it's FIS bit visibility in sequentially getting - more effort solution Banking Or like annual half. piece an don't need if is it legacy change Third sounds perspective? accelerated really by FIS, get to quarter. I the a to there second to the sell the really into more little timely second accelerate Do to business

two the for questions. Sorry extra

sales points. it's two hit the really of No, Yes. don't We backlog. great need QX. It that Banking we QX backlog to a Two a on lot points in number. question. - No, is don't

the on which of You think, certainly increase of X%, It's has backlog. one backlog the we've saw been. that the the seen increases largest memory, largest backlog is, I

six got on and our job is So capabilities. production. NBP delivering doing clients new now great the team of a of We've

of in capabilities But into we're a and it's going delivery new and into So that effect get that the of just ramp really selling. also QX. that you products backlog

number a goes the to manner. a a in value consistent us relationship look Third, to systems just mind to because ramp in substantial a so that segment. increase at When as in-house it's for you going fully keep across our contract capabilities, Banking outsourced And that in going see Fifth you're off they're systems of show those backlog that builds, in

And so - recognizing the capabilities us, that so deliver we then as step channel. we and a function see revenue significant through for those start processing

very So time. a great we've Fifth it's with long a relationship for had Third

excited rearchitect this and about about excited So the helping technology their them expanding future. for we're stack

Terrific. Thank you. you Thank so much.

Thank you.

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

line Your now open. is

Thanks, guys. I just Merchant for on in want hone minute a to the side.

record about the talked second in quarter a I think sales row. You growth,

If you levels. could in of just that front? above you're from 'XX in second give 'XX mix, us seeing high - certain travel I'm then of part mid- confidence half what some assuming where of and geographies. And dynamics these that's to the the the the teens, of business kind level being of

that a more on much understanding second those could mean half? quarter then revenue - how impacted drivers pressure If by color us just the there. from what for you was And the give it's little can second aspects? volume the What whether or

the had question, I hard it the I sales? was Yes. a think of time but hearing beginning around

Yes, success. and the

a playbook that I to job of what what first we sales done say, would phenomenal of just kind accomplish. So the were has trying team embracing all, of and in just the

momentum, whether particular, FI banking Merchant as QX. the sales of merchant e-commerce had the whether really sales The board, channels, SMB had organization lot the the strong of turned and expansion really really partners, and you've we've the I organization, creating a SMB outings as across in team, right space, enterprise it continued space said. heard, around engine all continued or expansion space, the space So and our in kind in for that capital three be with the be it markets, our our has really strong

strong a just really So outing.

come as QX. Our into pipeline robust really is we

feel we very in of the to success the back half we first the where half good great about And continue the of we're had from we heading year. would the that in So expect year.

U.S. terms add as yield lagging I'll Yes. volumes but in We've happen. too. dynamics see seen The of and were reopening, timing. international the business is reopenings Darrin, we positive

that's We So as in year. during the being sharply, and are attrition. seen the seen and restaurant haven't back quarter. up about count half we X% think sequentially any up our of a internationally. is in tailwind up Discretionary And second improving the domestically very also verticals we've year-over-year both both actual merchant really

So you business trending expectations, the feel half in to line with the put of networks the and the improving have that then mid- the little And high our the in in line it's and June yield back saw that compared add good and well. being we we of the merchant about than of improvement add the count, really outlook sales, you teens. benefit we year U.S. in to terms July volume as the volume out guidance in just in with generally XQ terms international is a higher July. the Further,

both QX about mid- teens growth XXXX, So and compared you add we QX. to all those things how to think high together, that's

maybe is thanks. that? in just XXXX, in Was X% right, extension pipeline? bookings broad-based? Was it the just your it to What X%. really confidence follow-up Very about quick your big the or into All changed Banking

you reoccurring billion, lot. about QX, you of signings so you the nature. business, acceleration highly when Well, I think a the at following in in signings pipeline, at $XX talked you backlog, record in of at Darrin, And the records look look our we've look It's nature look this confident at to delivery at a recovery beyond the extending you on, record to I in X% of year we feel by going in we're look that. and in and growth very the at at the what sales, followed X% look accelerating trend last further mean, look you channel year onboarding, QX, the

look single-digit grower. a that as used You've low we got Capital to Markets

that seeing move into, this X% quarter. You're what, growth organic

the in digits. now mid-single You're

Markets Capital of strength we in. then Banking And is the of strong the towards the see sales and getting and to every the single established Merchant giving upper participate the going look it You're you trend giving verticals mean, recovery at the backlog across sales recovery. digits. had upper one give, success. digits, its portfolio well single its I in success we

recovered from have verticals across as where we of they Our kind levels. to sales well. said would as XXXX dynamics those yield we strong were - just all back The

just that historical So, that XXXX. We X% confidence booking to a comes range the all just lot is propel well running to-date got X% aspects, of of into the very growth and engine sales together. through the that continue to us will

we obviously, shaping and as lot seeing well. a up pipeline Now year. of got at we're in We've confidence QX next what look in into QX, the

So long term of just us to things the driving extend outlook. those all are - the midterm

lot new helped driving add has the that process a really product wonderful We've could we Worldpay, PaymentsOne. forward. seeing be We're organization. us have that making driving whether products continue and MBP, bringing for continue. a to there to come impact and innovation the really created success us. underscore and to really be expect new that of with a that it we accelerate. really And whole we're expect material whether just of it a as If Access I litany And got are market the We've we're

Very helpful. Thanks, guys.

Thank you.

question next from Dave the of with Our comes Koning Baird. line

is now Your line open.

job. and Yes. guys. Thanks nice Hey,

Thanks, Dave.

is were a recover as standpoint, we next as revenue of provide the catalysts of depressed probably first non-normal. that are still question, of guess volumes think now, to catalyst in part especially think mix as from are less and little another starting this normal than when year really mix? - dynamics coming year, out the Do we of into some from this bit year part this we next the yields SMBs I of a look the bit, still mix year, And into Yes. a SMBs positive - little QX is also year when my yield play

SMBs too. Yes, I think it's beyond the just

anticipate to verticals recover to we like to continue as we travel Some XXXX and margin of the richer had airlines, a continue go that forward. into profiles,

next tailwind seen still the yes, some of combination the will half be us, the both a Over the in obviously, a continue of reopen some well we dynamics year of a right, XXXX. verticals at as not to that verticals be the as for you're we U.S. discretionary big we've air be will quite and it this and think So outside increase to But of but bit seen pandemic. the we've yield the benefit that other time, travel as as with some in positive certainly like yields U.S. year. of through least first to net both more a the anticipate around sharp

you. Got

banking you I it market like two, a stuff? the market and a kind is Okay, do much - several you're taking seems the really above And years? market for than then do just how the like growth share of on think is sustainable there the top. maybe feel And market almost then to share just disaggregate type usual and as good, is thanks. better gain way the is you follow-up, guess, of like

I it's think we positioned - great a Dave, question.

of out technologies quarters. platform, I lot those strength PaymentsOne, really what and the Banking, for almost of the A think They're several architectures. now respond seeing are an demand nimble getting legacy-based at list to Banking for plays years positioned transformation to industry. that. cost Digital that - inflection in They're and four bringing Modern of and frankly, the on products ago. started last where we're Banking, We're a old that's this Capital on take for Markets and and One, And we've a goes call mentioned trying FIS. - becoming in technologies. high you're point We legacy native. the the number online, and in people Bruce digitally more more very

through leverage or running own from some taking offshoring their augmentation share in old in-house capability very large that's - existence for where traditional technology of built financial just of we're type piece actually been large a some decades. their to own systems very initiations So or build

they're of that some through the cloud-based all and our we've technologies. investments of that well cloud in advantage because modern inflection it And And in doing our for taking made architectures. reaching this of really us all of so, point. timing now And is very

we're So the on globally that confident a we to that and getting journey is very positioned I've as of next and described decade what FIS advantage well over will. exceptionally feel started just take

you and now over contribution too. making. years, that those investments will and the those into We've are. they on We've revenue the the contribution investments based the higher give and on that innovation and mix acceleration, in follow try highlighted we're Dave, part told new growth sales levels of you to our solutions innovation as new doing. profile revenue to revenue we're turn to just investments highlighting some And that several they even the anticipated and sustain we've turn We been work sales of into did. growth to Yes, these overall the confidence that ability I'll

last of a offerings, new hear we're asking modernization on themes focused about And really product Yes. I heard back well about meet talked years modernization us very extremely from over is positioned And do them. I in think more as ago, talk space, we the and perspective, I offerings the twofold. that. has good and to to feel our what our banking customers for, very we and they're Gary focused efforts very on of are add these They're how thing about get kind you've actually customer kind year would out from that our product longer started customers and the just two

guys. Thanks, Great.

David. Thanks,

Thank you.

with the Our Mihalos line Cowen. next from of George question comes

open. line Your is now

Hey, good congrats. morning, guys and

I think good will congrats. this so quarter, be considered in normal times, a

Thanks.

may you're post-pandemic others how doing at of just I the But - that businesses of that think market. the longer-term there segments ask I the thinking impacted Gary, curious, that in and good being been that to I'm has by wanted the somewhat will see all that? perhaps something under-appreciated the sort at that's just to to Meaning, X%, about or the X%, outlook, segment X% and derivation level? Just XX%, X% world? continue are than that's better to feel you where post-pandemic you're changed curious have that

there. sales very stack great nice there. job Worldpay our We're didn't the it's question, the I acceleration say businesses, to and know, a and that nice a has good George. in of play technology to traditionally starting team in. we're that team Merchant The acceleration would a see seeing push done expanding You markets starting

segment is the organic which way on consistent look growth, we a double-digit performer years coming would at business you it is say When I that business, Banking the the So operating to historically. Banking thought we that be the expect in that used to below sight that of exactly a kind investments we good seeing that some and We've we're years the hit in we ramps big of initiatives. actually number line of ramps sales for were big where the and through our that numbers of would. realizing projected and expecting perform had

and investments we were conservative and mid And organic that low back we digits our growth has bought We faster hoped So demand now business there, what what we improved thought market, has much and Capital and new there. an has seeing market that, the of we're into Markets there actually in to made was if business. we when we and to made had and, and dividends we did position transformed business investments business. have that And of outsourcing not we've some a seen middle ability for to the single transformed over fundamentally saw big move front, Capital Banking lot bring products, areas higher-growth that office is that so the We thought strong Markets, expand we're we solutioning, seeing closer the actually a so that there. paid traditionally to to the the thought. around we of RegTech for. thought the results just business solutions really move beyond been licensing

think accelerate in execution. to is X% we're range the it confident very, to and continue years So, us for I for going executing that's forward the coming that's why to X% that that and to continued in we think look very

great that's color. Okay,

Just a question, maybe bit know I'll I quick more got the broadly. sort you little but ask of buy-now-pay-later us follow-up. a

do acquiring approach Some sort want in sort APMs of the to to they proprietary obviously stay in terms interest I'm Switzerland is your models clients? could competitors, of curious that your but of servicing of they you're potentially be that or have you partners, own of how something you guys

from to we in for and more to a the payment We're the we'll continue participated continue of --. Yes, APM markets perspective, our I a of time in Switzerland partner. in that right right long to take going and think types do type

Worldpay things collaborator Connect. Code a Connect and the of bedrock lot of for others. a us with kind about of been world-class we has really being talk One is that The

we market faster exponential built APIs As these and out it's our and meet allowing of us bring customers. have product needs to the to

going we'll So us, able think to that I that building be to in out we're solutions time to be to that people other won't think down do able I bring go continue path, for them. frames

Thank you.

you. Thank

Citi. with the question next line Our comes from Ashwin of Shirvaikar

now open. line Your is

Hi, Hi, you. Gary. Thank Woody.

Hey, Ashwin.

that your what are The margins non-recurring on go the strong any lower-end lower, of of another all have driven and Were to margins? is, on end margins margin back there maybe want things. to people, guess Congratulations clients understand upper drives might those range, and things range, what I drives and, in completely good this here? investing the Hey. you quarter. like question one-timers the the higher sticking while slight crypto particular think quarter I

A of things. Yes. couple

that we've our to reward plan. operating accruals, people about, our incentive higher talked for seeing are up as outperforming driving We

Ashwin, accruals, You've incremental outlook are that you, component. $X.XX is full of there. incremental incentive tell I got - year would one about our and

taking customers of size Price full to Rowe headwind line. margin rate, we revenue transactions are on We top the two revenue to that on moving. as these of the and little are run a running. showing accelerating time up business, T. at terms and that pressure ever Fifth the terms flows the ramp some the you have to they'll in deals some revenue in also see well in continue get those as have margin of run we've up seeing as ramp wins continued a but leverage were get and their large of contract you short-term and the have This continue from way as largest in operating of revenues that rate all Third to driving up bit we

there the clean what's good margin. the of kind of one-timers really quarter lot perspective, and highlight not are one-time those as in a a So, terms what I tried on. in driving feel pretty components of about here, we've executed From in the to or

the to well. as to come outyears margins new increase We our consistent sales in our mean, talked do rates. new our into feel do good years, about out where I we've products past. the that, X%, in has built Ashwin, continue about growth and very investment - of are to bring overall continue we very our got feel these the models in product we've margin margins. we've good about on today. the about They new Even in Bruce talked to expansion obviously high but long-term. in talked come we contribution as consolidate But in on to continue ramp capability margins X%

the doing expansion with full just of margin have and this revenue how highlights for year all synergies growth. we're really strong We operating the well year, also

margin continue in will push we out-years each year. mid-term the expansion that guidance into as gave with So the we

I any to No, with strategic updates Any new fit There to business, to current might divesting the definitely your together at agree great. your you executing. look businesses? was perhaps open from divested Markets broadly you want potentially guys some regards - being are That's until your point book all with look recently or you portion Capital a eyes? speculation of Or it it. Does when current in share? you let

rumors things acquisitions move things that into sure are always portfolio our We've our some about divestitures don't what in what a for that we recently did matter. and we part viewpoint to our the fit comment we is typically, that and as when ago things our non-strategic. overall as we tell business makes know. continue sector would Would for our our had sense segment as non-strategic, pushed the divest historically, strong assets portfolio health our as of strategy long-term But comment make at we strategy. that portfolio or years considering that public is on don't signaled things But we our really other other look signaled of said, I strategy? done We on I you into business. category, don't we as that you with we and on to but we've think you Ashwin, rumors, care

got This it, again. Congratulations, Got it. pretty solid. is

Thank you.

Thank Ashwin. you,

Thank you.

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

open. line now is Your

my Thanks questions. Two so for guys. question. taking Hi, much

the of follow-up. know puts a happened called The I first about you have SMB? I elaborate growth then Can rates just sort a those you. subsegments, the have in on a follow-up. but you second just maybe think and then bit Thank e-commerce, and of if out one in what little - the quarter I you is between and of terms takes

comment XX%. on can Overall, in was the quarter growth I that. Merchant Yes, second

If the enterprise between quarter grew SMB you a little that down enterprise and to over the grew break in XX% SMB, and second for XX%. business combining us that XX%

in remember, eCom business, sits growing the enterprise at you If global XX%.

of bit breakdown increases in the restaurant a were We and international North America restaurant that's little about up So see between both them. did XX% sharp verticals, some around reopening.

and we we some yield the they to And the anticipated, of through back come as we those volumes So expected did. higher got then verticals. benefit those yielding

As the reopenings happened, it rebounded.

enterprise that's little around Dan. and color So SMB there, a

execution, the market, all and just high at of the is driving that the a at really kind to team trying add the team, Capital the product bringing Merchant sales, just execution to just would level. do a embracing we're of very, with level, high Markets them what very very performing Banking executing team I team,

see decision we're surge there, my that strong. give the are I sounds kind know couple huge it's a here there And to down? given given I follow-up thing everything? more and the reopen you. that Delta. of of months, understanding months reopen in you us really U.K. the Thank the have in some U.S. there how trending that going a as few here is is lot anxiety macro. of think to of U.K. of peaks you I exposure. There a seeing Yes, same you made it Can the of are a Like, a is then they in like we're things lot behind just the sort that comes mean are anxiety things

Yes.

right improving. now. results continue we than highlighted, better better in or internationally we As U.S. trending to That July see is improving the

continue are what right the about volumes some as the of in volumes everything terms seen go the but You. of saw certainly growth lagging of into as outside to of the continuing July there. year. improve. feel the but along, international bit outpace back of reopening We as the about. the U.K. They second in areas U.S. little half saw some now we a back increasing we anticipate drive good quarter, We to the talked Certainly, monitor with the international half things to we've the certainly continue benefit we're seeing in U.S. U.S. to

it. appreciate Really

you. Thank

question-and-answer Thank now closing I call you. turn for This remarks. Norcross to today's concludes session. over Gary will the

solutions beyond. thank this XXXX again the their our ahead morning can technology the to foundation and curve. dedicated commitment for for you colleagues providing to they our you commitment This who Thank lay us so world-class will our clients, continue show stay for and to that growth of joining in

Thank on you If you were any addressed and not call, please questions this our goodbye. to out further have Investor that Relations team. reach

gentlemen, today's Thank participating. call. you and concludes Ladies conference for this

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