Fidelity National Information Services (FIS) 3 May 222022 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the FIS First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now Mr. hand would to conference I speaker, your Instructions] like the to over [Operator Head Investor Rozof, Nathan of Relations. Please go ahead, sir.

provide Thanks, quarter Woody call. thank the Woodall, a webcasted. Chairman our Siri. you for available are and corresponding strategy Norcross, our performance, discuss Stephanie our then our will website Ferris, Q&A release, joining provide And finally, and will results Good will Chief business presentation on Erik Deputy us President our review Today’s and joining be Hoag, and news portion. FIS XXXX for and update, the call also The guidance. first financial conference the Officer earnings is being Financial at all Gary our operating our morning webcast will for call CEO CFO forward fisglobal.com.

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

our end Thanks, and a XX% us exceeding the to $X.X $X.XX start and to increased high revenue share. Slide thank X% increased had expectations our for guidance. you achieving we Revenue per year EPS strong today. organically the Nate. of joining billion on X, EPS Starting to significantly adjusted And

segments our markets X% XX% growth expectation, in growth X% expectations digit and revenue. and capital quarter. with X%, of grew All organic reoccurring versus X% Banking beat our exceeding expectation grew grew our low-double our merchant the

New organically sales increased our for serving for with their $XX.X on and I'd backlog X% aligns growth, for our This and clients strengthened the midterm thank backlog remain like our X% execution. pipelines to billion. focus outlook sales X% organic consistent continued our to and strong. sharp their team

into of our significantly banking In our cloud. the We've moved X, and is pace Slide industry throughout for FIS exciting. application architecture to or to infrastructure of market. suites solution upgraded technology invested the to to bring very Zealand. and in And key new the We multiyear public with change Turning strategy digital success. ahead has banking, positioned this pandemic our position by our Microsoft continue and quarter to markets and with we change platform enabling and this investment will modern best-in-class processing geographic reach We the the expand management. This Thailand us issuer further reach banking cloud core capabilities the expanded Azure. UK, deployments New like across wealth

will and recently experience offerings our an Banking-as-a-Service and platform We’ve for one with enables hub. also in crypto.com USD deploy partnership to all clients, new create launched has our enable to our formed team receive new This their rapidly settlement finance coin, Circle customer. and finance to a customers. Our successfully pilot be offers first in our merchants them for embedded

true In addition differentiator for ability reach to international is technologies, a our advanced deploy to us. quickly also

to enable verticals, a add in Across decentralized gain and the countries announced to as In multiple Fireblocks continue FIS global our with new mission the innovate ability grow. experiences crypto theme, markets of store doesn't plans to and well keeping bring every and new assets, clients issue to leading leapfrogging that as offering critical XX solutions. to to from XXXX, types finance. for by types, capabilities to capital scale digital to seven with XXXX. industries individual recently and true stop that embedded The clients for solutions added more end access client our partnership business develop unlock client. to empower merchant power with of Our our of our systems The we deliver to bear at unique can is finance client all value expansive

either or We consumption transformations clients capabilities, access of cloud individual have asking solutions, to solutions as will underway robust across from initiatives open their for are More up our native them new platform components. end-to-end for of more simplify as for the technology an to enable revenue speed initiatives to operating and enterprise. us. streams These our access rich segments all and three

target directly market We opportunities. And go-to-market that, our translating think FIS, sales over segments evolving Despite the this are by our at are about clients into disruption, these will to and also we the our aligning describe future. to turn operating the and disrupter. to fears review to Stephanie performance. win first we how our we new organizations help I'll now quarter With their call is vision strategy

remain platform of for exciting growth have which TAM is with continue production. new is to dividends. direct our in with our Payments which paying continue capture quarter, most issuer advanced scaled to the multiyear we win We've X% financial highlight with we historical approximately our few the discussed. strategy and we vision the clients on are platform. was processing I'd result good card selected morning, investment and In its One above issuer of institution with growth the consecutive end-to-end platform, to innovative processing elevated trend. is investments. well clients. top-XX a this to to an capabilities our processing bring existing technology Clearly unique our life. X,XXX our like solutions leverage this We banking, new differentiated To market. strategic migrated a to debit revenue to momentum Starting wins, plus posting for significant everyone. capabilities one new and a X, quarter Slide as U.S. sixth Gary And Gary. payments building see Thanks, quarter This organic believe our

and is truly issuing network significant last In investments wealth store our in pay solution with loyalty addition, our we're following of third payback a premium point platform, acquiring the sale. enable in that a second example and consumers And management Rowe our making gaining a of to win combines our then Mutual with strengths win price America landmark points T year. to unique at

AT&T and in will issuers consumers to AT&T able our use network, join points from This loyalty be decided participating stores. to quarter, to pay

markets issuers As X. grew a X% continue shown we on network Slide effect. revenue powerful expect retailers and Capital organically as to join,

the not Our quarter. team X% SaaS the Transitioning win relationship our and to builds up as enhance a cloud. in a leading to proposition to and for more revenue even trillion continuing create $X automation. core Templeton win a predictability to were from of in cross-sell to the increases that processing transition transition agency offering an transfer investments quarter allows to win and AUM, continues our solution more our SaaS to bringing to financial significant We've incremental revenue breadth landmark business on the also look longstanding as-a-service growth, resiliency with had We banking. of second we with clients efficiency recurring momentum the drove year. drives Franklin based This which them thrilled only this opportunities Similar value than institution last capabilities. in models, but made by

firms. investment We privately also saw with held strength

suite investment capital leverage private drove suite high deal a multifamily net with transform technology their to markets that will worth largest Our operations premier ever markets’ operations. office our

signing Robinhood our and we for loan our This income vendor to partnership drive segment our XX% solutions And Robinhood, our helps Payrix the their count to and the On this value quarter in choice program. digital Overall, quarter. organic cement the and XX, traditional this our continue expanded year a Slide we spanning proposition by continue growth with in we end empower their platforms education, new will with relationship Payrix and few wins, in highlight where of markets. more client. marketplace than are growth last is SaaS verticals commercial strong platforms on for with acquisition expanded long-term to SaaS merchant relationship Finally, market off client several assets compared across capital to our to already paying doubled generated quarter. the the recent differentiated end is slide. expand stock based

own business. crypto global this will success our as our with signed for acquirer continued capabilities which service client further us attracted quarter exchange. after expand also to a Currency.com help them They their were reach, for expansive crypto. and We witnessing another our leading

strength Lastly, published and XXXX ranking, highlighted The which of Nielsen e-commerce Report merchant software-led recently strategy. U.S. our their acquirer the

XX% in total at the and Our by XX% put business share of U.S. a XX. increased currency sub-segments to they to wrap the I sharing the our I'll on levels. on couldn't pandemic test continue e-commerce XXXX of highest to with basis. execute our our volume prouder clients team, by from growing points them be first XXX put XX% year be the growth continues of constant fastest approximately and performance Global our up Slide before. the basis to

quarter levels. travel in anticipated, strongly rebounded the As exceeding XXXX

differentiated source to of grew XX% business large scale. be enterprise Our continues organically a and

restaurant and now growing Woody? Lastly, to retail our led I'll grew that, results. the financial software with double discuss both over turn XX% organically With call to Woody SMB digits.

translated us results with balance segments. difficult with our Thanks, operating through adjusted stimulus XX. performance able Stephanie. consistent Thank X% full you all pleased We're of successfully year for range. the Slide begin related year-over-year, and including across cash is on results taking I our all inflation our offset guidance with touch strong guidance. will flow growth, of achieved organic comparisons the and we consistent were revenue XX% today. to revenue. And I'll wage on very our to and sheet our maintain This which before high-end margins financial last EPS We our you as year's joining

X% XX% Protection Merchant an strong it basis, contracted where our segment client benefited our basis, the basis directly higher grew the headwind year on XX Turning results to points margin sub segments. EBITDA on Paycheck to in organic or majority PPP segments, of reflecting due continued The Program organic the Adjusted revenue is margins and three costs. across experienced banking demand. to revenue impacted labor was banking by grew from an prior XX%. primarily we as all revenue

leverage. and on As expanded XX%, expanded markets’ adjusted Stephanie primarily points, growth. mentioned. an on Capital new margins revenue. higher to Merchant due primarily basis basis sales Capital organic X% margin XX primarily EBITDA transition high due revenue contribution operating strong grew new to markets XX% its the due revenue EBIT to to adjusted recurring margin points basis SaaS driving continued continued to XX to

Turning the to we million increased XX, $XXX by during Slide flow first quarter. generated year-over-year. cash flow free cash of XX% Free

invested have bending expected and to peaked to believe in down innovation five that approximately that $X past years of X% several as years of We a over heavily billion in the revenue. percentage time. the over over to revenue, CapEx investment has next come gradually We this X% over

quarter. expand As adjusted We we to $X.XX free returned for cash full and toward million expand by remain share, per dividend on quarterly free this increased of to conversion net total dividends XX% to quarters, XX% a of in in subsequent and our year. a shareholders $XXX result, to we track cash expect our flow we earnings flow the conversion

As a approximately payout year net grow ratio reminder, income. by our plan several the over in our dividend of next per approximately to to to we order XX% adjusted gradually increase dividend years XX%

and ahead first the In foreign debt exchange addition, which times benefit three a of reduced including schedule. leverage, quarter ending by XX days was repayment $X.X we full at billion,

current We and second three repurchases repurchase we'll leverage believe use share maintain share excess the expect At our we valuation levels, in below free the flow. best cash to resume times quarter. of

$X We in expect billion to buyback shares approximately during XXXX.

during XXXX. buy course XXXX approximately this $X We and billion cap. be also share current free to flow in Combined, shares. market speed, current this cash will At represents back excess of our repurchases XX% in utilizing anticipate approximately

and to XX believe primary and that and in The XXX XX the we include XX% of forward Slide $X.XX track to to we the delivered year guidance. quarter, per range of opportunities the points for outlook organic of a XX% to to adjusted upside expansion, the change share. impact our this no year. margin $X.XX our the growth first on pandemic foreign revenue the There adjusted rates, of recovery. risks for a X% full remain start exchange geopolitical and year supports pace outlook. X% with Turning growth We deliver Combined to EBITDA full to basis guidance risk review maintaining our is EPS to to achieved our strong to

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

EBITDA adjusted adjusted approximately EPS XX% $X.XX per resulting expect of share. of to We margins in $X.XX

takes puts mid-single digit the capital due year. related primarily our quarter. with and our growth second expect rates termination similar pandemic from the banking we is I to We on the revenue mid-single and compares growth anticipate for markets second we a digits second by In unusual that in provide segment quarter. for banking segment the generated are that profile would organic range quarter. This Given the the fees created difficult last for currently of affecting in and like color some more to be assumptions you organic revenue merchant, growth

For second quarter. for in merchant. approximately equates strong expect approximately currently growth growth organic to the to of we merchant, revenue This sequential XX% X% XX%

margins expect the up quarter In year. addition, we adjusted step to each EBITDA throughout

I Lastly, like perseverance their we within include In and our assumptions for section the the pandemic. conclusion, for to presentation. would and of colleagues items line and to thank efforts other Appendix below our several continued FX, the corporate

level You Cowen. [Operator Mihalos, Thank question a to come and the open ahead. strong go you. continue Instructions] George with will first you high from executed please Our results. for line financial Operator, questions? Please would at generate

on congrats Thanks thank the my everyone. you. on taking morning, Great, question Good results. for the and

kick things I think off. to just -- you're

was somewhat the or stronger why your these was year? and of Any strong. come that there? How reason And should exposure year the what throughout yield merchant obviously And continue crypto are how travel about remainder It of back. the the like than thinking not is side, you over expected. the the we then that about Stephanie, course On that of talked verticals you strong some performing?

I'll the crypto. the on Stephanie, yield can work take question, and you

Yep.

be to we to do over revenue anticipate George, the the benefit yields of course a positive year.

to Again, we've highlighting. we airlines example verticals we we coming past certain to XX travel a be over the perfect Travel yields yield As yield is XXXX. and really the came that over tailwind anticipate throughout a been benefit highlighted, We verticals those off, as of year. airline And as do heavily. course are anticipate off the and back benefit the months, online. saw XX came

George, as know, They five a fraud provide then us And talking of while. of because for and that top come in this but we large Yeah. we've for in We them terms been of to the of benefits, level crypto, a because we're can out scale for for you them. processed about four authorization of also exchanges. largest provider the terms rates crypto being

share And vertical. really in crypto so to us We continuing take like you're the see the crypto vertical.

we this to quarter be which -- USDC saw crypto sign will going capabilities. You first us partnership a with the provider of is Circle,

our really e-commerce we in the to of differentiation demonstrate to our it. And excited vertical strength and So e-commerce us continue business. global for this is business. be exciting continues really about a It

quick color. of might a lot Appreciate And a with be the nowadays your follow-up. of e-com with the just attention grow-over reporting Obviously, what as on on some peers there's happening sub that market. are thinking about the in trajectory vertical? feel longer you opportunity within term? any that Stephanie, both the for growth How XXXX e-com, for Do differently and about you

No.

-- to this strategic geographically us us this we this across business as been given We think differentiated continuing a the APM. and the in the obviously TAM and for has as expand size of is of will TAM growth imperative be. about adding very terms think in And I of for company. well to the a continue the asset e-commerce,

we one know, of growing two in the providers space, this you and it's largest are As significantly.

space space. to We of the continue we like asset launch only, on global to in e-commerce SMB We We really so take in going Payrix could up we bought significant have global really what's share. start been the multinational. the global access because

And of going triple so focus. to us down you're double investment terms see continue this and place a and to in is

to about continue excited be we it. really So

to thing will XX I we George, I add that, countries only another would XXXX. geographically that We've through continue, mean also the accelerate seven did Yeah. on expand it got growth. countries. target by If The

about -- an we've the guide within So good be very merchant, going continue e-com to we given feel the and the to fastest-growing segment overall is be it.

Thank you.

Thank you.

question Next come Darrin Wolfe go from Peller will Please Research. with ahead.

as came little banking Hey, segment just growth, still it obviously, nice estimate guys. look and a Thanks the I again, When in largest the on of It our been the to category better to this quarter. your see want we at I strong. business. it's touch sustainability because, than job.

but remind conviction years. the rate, that elevated for touched the confidence backlog this, If bank. is that. on seeing then just remind sustain you're in if the even to not on great. Gary, couple be you core that down or maybe also we've There's And growth us banking It's there processing and next now on it's breaking the color could know us pipeline why would level could issuer more you on itself and there. of the also I for or

to pieces also. helpful The other would be understand

the how we question. the business appreciate be first, Yeah. banking we great. on the non-merchant more Look, it's bullish and we over performed Obviously, couldn't That's years. Darrin, appreciate --

consistently seen If execution pipeline. you in look, strong sales you've the

businesses signings over backlog this You've backlog quarter, well the the that markets, building as the to those we've capital because in contributed of and that, X% about consistently opportunity four-plus future two strength last banking should grew throughout number. confidence and years. seen that seen pipeline are The give everybody replace strong which of to the over the the year, predominantly

strength our of We are all across categories. seeing

a just Our great done really, really issuer has job. business

a who's there, have job. running leader done business, our Our phenomenal issuer

highlighted ago. share. issuer significant on our Payments most market. around see launched advanced really in category, almost the to on One the platform all issuer Stephanie a we continue years win payments it You side, It's take three which

If you're experience. our that you seeing in One XX that full now rolling is seen in look omnichannel lot last generation market. also we're what's that of months. growth, third true a of over really digital offering, which the acceleration to It's in Digital a lot contributing of We've a the deployment growth

with then Of strong industry. really some in course, modern is offering, which API this layer most seen culminate platform. you started that wins Code our banking open And micro we're Connect all We've services, NBP. seeing with the in in what

customers a and allows us coming in, on out We push to have more now of that. we as very and the Microsoft which number Azure, of those U.S. on full production in we've live enabled pipeline more that the now And is highlighted, effectively.

should confidence has banking and strong since the digits, of all everybody that So structurally the will stays low-single pipeline. and signings that been give it to growing future at it perform transformed continue in very backlog given truly

feel So great business. we about the

All the great right. see transition. It's to Thanks, Gary.

mean Just XX% through looking better. we could here more year. guys. thanks rest on components from a Maybe very would of touch little at follow-up, the quick if Woody, a QX. And had confidence margins. margin like just of the be margins looks a thought It we you for again, I guys on on the the

do We in about Yeah, good the it thanks. It's will quarter. question. be XX% second a anticipate

seeing entire as in and the from the I quarter. said, the of lap we difficult over in go year. related the term primarily. some we year are the about stimulus in we ramping of merchant we margin well comps those highlighted, first first yields comps the banking as forward some good good that to continue across as think And anticipate seeing fees year of prior the to half course banking difficult between feel you as are revenue in That

guys. Thanks, it. Got

Thank you.

Kumar UBS. Our next Please from question Rayna come will go ahead. with

Thanks for morning. taking Good question. my

largest you business. understand pricing your international enter starting you to trends And with six change the the help competitive seeing some XX the of for FI in months? Just Are secondly, the trying there, just bank us having the any next clients any could technology U.S.? over to environment players

the Rayna, the moat would have companies I'll been highly break trying and number in to a us. the about always also, question. Yeah, can start, really a Rayna, add entry. sophistication like. But non-U.S. U.S. We've requirements we absolutely always for into Stephanie years. for Look, been if has she to Frankly, great Banking regulatory a marketplace competitive it's had it participate the a deep to upmarket. of

the So better. scale. the then differentiated, differentiated larger financial institution, you get highly And the by just

banks Our with in than ability to right, square the the more of just complexity off against some core of largest country, banking. it's solutions, the

bring robust have issuer You processing. to

You bring openness. to have

to professional grouping. have You services robust a bring

And When contracts price all feel we of past? very the Are index about in against you competitive good adjusters been no. in The we done in them long-term about very is seeing it we well So competitive always competitive. nature. of It's than position. have that our more always are our answer think have consumer Most competition. we've pricing, them.

So translate CPI seeing through as inflation, see around transaction. per increase models pricing you'll our that account, you start per in

seeing we not do. -- get it's and competitive It's front. I been as increase been said, we we're competition always we're But in normally increased price do not more competitive, there So seeing well. as coverage any always an

go financial inflection their point this on calls. a really lot of about an We long at a will technology. demand talked say, too on institutions We're continues where the really legacy I've held multiple up. to lot with have

that embrace significant omnichannel. really X have computing. now pressed years have are going to cloud people where to up some have making so, to going highlighted plays made investment to have openness. They're his prepared against they're in to to in going to going embrace the we've a the They're Woody start And They're timeline over And embrace decisions. that to remarks. to last

we of business. in position the about banking feel good that all our So really compounds,

Yeah.

might had And driven United the are of into weeks need within are here. really is think, pandemic One because the to come that client has out I home two think the omnichannel to are be the centers. very the I couple them our ago. digital think of we institutions, back States, least add, to pandemic. I strong Gary's from relevant a financial points struggling the just point, at folks I banking conference and the also coming

And is out that be there driving post-pandemic terms the contributing situation. That's omnichannel, so high absolutely very needing is demand. technology. next to of gen given point Demand Gary's digital around recognized and really in to being the

very just helpful. And merchants. one then quick a That's on

Given the forward? the a Visa SMEs, recent reduction by on for expect to benefit Merchant you going do U.S. your margin interchange

Yeah. We there's and obviously, going I mean it always opportunity if get make benefit we to an sure can, there don't material, material. changes, think take believe be but and slight be we it's to a those look there. Whenever along but don't is a pricing then pass we benefit. we we

Great. you. Thank

Thank you.

from with Jason Our next Please ahead. go come will question America. Bank of Kupferberg

Good merchant U.S. Thanks. just to on volumes. morning, I wanted start guys.

not were year-over-year think XX% up down XX% if mistaken. they I'm and I quarter-over-quarter,

your industry So of been I always I'm of it relative wondering mix is if just the credit, a debit love debit just just somewhat below some function pretty know industry, a has suppose. would to I just kind comps high, perhaps there. there? crypto Or on perspective were is and callout tougher

Stephanie I'll start, and then Yeah, add can on.

grew XX%, mix really the in the end underlying business. the at our Our of reflects day, volumes which,

in got We've enterprise-based a business. under-indexed We heavy SMB. are

look box. have those the fourth in compared quarter, holiday you If to that big at spending you

in benefit which down grocery, a bit. the in that first saw holiday Obviously, You coming quarter. quarter, little have as spending in a we saw fourth the travel we

of day, puts of highlight gained you can X the probably full evidence Nilson movements, that takes the quarter. are the XXXX, double-digit evidence volume objective points not little the which during And at tried of always well, losing is At So a growth positive the we're lower Report we first for The we year see specifically. where share day, saw in around, as piece question end the get always are segment and every resulting just that of there. or to it's yield market seasonal quarter fourth we share? in very than end yields in and here. the best the by it This points have of share is losing the we two we where showed there first We quarter.

I in you're enterprise to season. space, mean, going biggest quarter is holiday have of going QX look, because be Jason, the you -- play to your if

going this So to that a QX just going QX. into I in is any mean, would and naturally mix you're to normal see volumes nothing QX. you see To more in point, drop transactions Woody's than

Yeah. think in the this what I to from merchant mean the veteran seasonality I as space, that's is. QX QX,

right. That's

travel points. if thought fourth very benefited quarter, about decel from do has in portfolio. it's with a retail XX% there's X which about grocery, from -- We this and share constant for that. is So nothing XX% currency. loss. to you then natural a the really That's point then natural percentage and this And there's It we and

a So in our seasonality this is a portfolio. lot. disruption seasonal about thing. I know talk we like There's to

XXXX, point, standpoint, not you'll topic losing is Woody's everybody. it. And from know a we clearly before picked up We share, Nielsen’s of share. this If go to we're back see a favorite you but

helps knit that hopefully, that So number now.

lot. a the snapback Yeah. No, you've helps I that in QX. got know

growth said I merchant. about in quarter-over-quarter think you XX%

right. That's

Thanks. on the And point another, Russia the number? headwind in And any just just part for because are to seems you to offsets headwinds? the be would through Or the QX? there kind of these Or And growth also that. headwind, but the year, just incremental So know to from I see think, I I'm the flowing the million for you're range from you wondering absolute outperformance just lower that of you're year. some that it's did to obviously nice us absorbing FX absorbing headwind. if for the of outlook thanks dollar revenue not of of $XX range change some

year impacts prepared the headwinds Yeah. previous are we of point headwind you adding I from said, very the the we some And that about tried remarks, the and in front the think conference Russia, Merchant those to highlighted business, not the that we're full we Ukraine all FX. highlight a in We the merchant of outlook to together, there. the with at pleased a on any QX, we’re on seeing in have business. potential start year. That over performance changed

Thanks. Terrific. Okay.

you. Thank

next Please Our question will with David Baird. from go Koning ahead. come

-- quarter Yeah, merchant job. half? a And Nice digit are in I is for you the And expect of still the similar, back mix low be was I be into couple going hey, two first merchant and low-double similar? half, what kind about of as the guys. e-comm pretty the a And the to yeah, growth other mix my guess, better this just overall SMB, be sure. when going that of things, it enterprise, like guess little -- do back Thanks. growth we question, to then going e-com pretty to is think

Yeah.

I over to our course continue grower think will of the e-comm year. Dave. that, the doubt about highest No be

You've the tried to through business some double-digit we got merchant of the we second of questions remainder growth highlight, highlighted the full growth the and at for as year that. XX% comparables for year. to go We're X% the and think talking the looking still earlier some as about I quarter in

get will forward as into movements, So again, continue comps settle we kind of be change no you new growth norm see, there. There e-com our we go these a sub-segment. real highest here. be But as to some out may and quarter-to-quarter as

Yeah.

is if one growth right? Is kind that pretty is kind driver That's lower just big? question. big in then of going does that that XXXX year the next And mean first a D&A not into keep the we Okay. guidance, EPS financial It that for like could And half to nerdy low. back be than half. of looks

and into of area. come rolling highlighted. anticipate kind A couple of beyond year things course down in X% we CapEx of there. We're to X% seeing the CapEx that the Yeah. the 'XX seeing We over

that year -- So D&A forward. last zone impairment saw with into of the going you really will going that, combined benefit some some assets and forward obviously 'XX

So that's there, the primary change Dave.

Yeah.

with sequentially think at expecting here, modest the look consistent number, first I if comments. we're you Woody's quarter from growth

all Yeah, guys. Thanks, Nice right. job.

you. Thank

Ellis from question Our next Lisa MoffettNathanson. ahead. with come will go Please

banking question. taking segment one well. to Thanks morning. good ask Hey, for the two was or on going my solutions I as

environment, legacy against demand post-pandemic, winning still are in question that, who opportunity a kind of in-house of back the that on winning world, my Following Are primarily to up you but And and you earlier questions, cloud systems? U.S. related can changes there displacements broader business internationally? expand then Thank migration you for maybe the you. over stepping historically second talk Darrin's against the one, been is that that time that is regulatory business, to business to the an has around with market? some

Yeah, Lisa.

start. of competitors me size on depending institution. Let differ The

system or the institutions, with So center predominant typically as see. financial in-house dealing exercise. competing more legacy very core large we developed of in-house old large the development their competition with that's you're regionals a And with at much we're would national

there, able You'll but see all certain like startups in for answers would gave we be with years to deliver you scale don't have the frankly, technology start-ups Darrin. or to near and the build the see company a I partner analysis. the like through XX You XX we to did Do Or or it again people FIS? an we going try ago? do

community market competitors Jack you start community As you our billion again, large larger of call as you greater, classic move as and into small you as there and and Henry you regionals, it move looking, down that would as get and see market larger Fiserv share space competing in grows end that $X Once banks, market. well. banks,

to of the back smaller more allow you're to breadth one-size-fits-all flexibility spot. when run much people in M&A to more again, the our have whereas continue the they you're have solution, growth a in ability lot the business, as to get to through and become efforts approach. sophistication and capabilities, the they community landing activity as you larger, banking banks, organic their still together, M&A grow Once their space So them just we a combine natural the of through seeing

As we in you traditional move But community start very down really we that's well. capabilities bank in competitors. there. the markets, we have community small do -- And do banking, again, traditional seeing just when once also

one. question, question, non-U.S. a great As far think as your your we it's global

We we've couple going We've forward. strategic expand of the whether growth platform, a rate it's do Connect Banking banking new the on we've U.S. the our We and on That's accelerated growth do focus. to our whole U.S. the for I business do it's help banking highlighted just platform And that whether really that. be us accelerate technologies, One, One, modern the us think certified quarter, level business of been our other do in of think to think allow not Payments it further it's to and of been whether a markets. countries. its it off U.S. contributor focus the -- just this Digital seen be going we activity number has pivoted a for traditionally Cloud. MVP banking the outside in years, Code will given our a have but Microsoft we -- move We it into -- business will

Payrix. quick Super on into least just was Can that at that of on But helpful. and XX, how with integrating just operationally just integrated I you've -- into it SMB slide, cross-selling business. clarify Payrix is group guess the you is U.S. got small how base? you. business? a at business, One Thank like looking the looks and existing Slide it follow-up I global sort your business the e-com into

Lisa. question, Great

So the access thought and is payments SMBs to embed enabling and we way us card-not-present. Payrix about

e-commerce the a actually it's it terms of that Technically, accesses market into So both e-commerce covers strategy the SMBs. in it's going segment. for really

small. So it's segment, think large e-commerce as you the all things, about both and

which or embedded Now thinking those which payment the look stay determining strategy software-led business, if okay, a strategically, are to with which that you would at your you strategy. payment taking point what ISV is is transition a of about integrated we to an said, good business, is traditional and your one, clients an want are

traditional payment So SMBs the we is have way integrated you strategy. days think these about a can

an strategy. Now embedded you can have payment

capability. today adds And has our as that our you SMB, to software-led so strategy know, SMB it SMB But card-present. been

And so the it to are Payrix that e-commerce into piece, and opens the segment really card-not-present booking keep pure. up we

you. it. Thank Got Terrific.

Thank you.

Please Jamie Friedman Our will with from Susquehanna. next question go ahead. come

like I Slide But use enterprise cases. on Stephanie, X really I slide the the macro. Hi, Woody, this Gary, complements deck. had a on question

ball, Gary, from crystal commentary So level merchant on outlook there high a for don't IT macro. is high-level management's budget a macro any on your say, the about macro side? but -- I you're the heard I assumption? not at in bank have you know But

our merchant see segment. Yeah. we Look, think I real a opportunity good in

enterprise about feel to but you're good take the SMB e-commerce, market ratings card-not-present. Nilson are e-commerce. we segment. really pandemic, out about us of mix come the feel We good share the We as Clearly, in seeing about we Payrix our The issues we our continue great substantiate -- enterprise acquisition helping and the in with and that.

next going So on very we comfortable this with but bullish overall business the that, our and on feel merchant only several the year guide years. into feel very not

So I we're very well think positioned.

the your harmonize And those guidance. to about did for just prior can Because Russia despite with guidance I maintaining and deteriorate prior seem I models, so incremental the so commentary Okay. headwinds? from you, FX. the right, we then are you Woody, relative mean the impact hear 'XX, just to those

That a is my remarks. out very correct. That call in specific prepared was

now. guide If back go you right and the is maintaining are as we look,

back in I’ll the it. Thank jump Got you. queue.

Thanks, Jamie.

Thank you.

Ashwin next Shirvaikar will question with from go Our Please come ahead. Citibank.

I to with seasonal to flow conversion? could from perspective, you getting stepping the tuck-ins this return Stephanie, better that Gary, But potentially you're XX% you a I to then start maybe guess, free shareholder cash from quarter. still talk a guess, M&A? wanted imply of to the speak in with Thanks. And use cash Woody. of is on today. in picture? was does Or question. -- to dynamics good Hey, over-indexing the the terms, Hey, I away

of Thanks, year, to high timing earnings year the year. the about saw see of and getting year-over-year year in flow we of On adjusted we to free very about conversion capital, a first you flow year, shape in in full for working of as a year, quarter typically course free the Yeah. net us a It about net we'll is over translated gives this normally adjusted confidence Again, Ashwin. of growth XX% the earnings. like do. increase of cash itself, around XX%. we the that us cash XX% lower conversion to for level quarter as some good general so that conversion think quarter first every Last had

investment at more We're we're You combine of capital looking looking we of percentage X% that has down the as little X% over actually year. to a and that commentary the anticipate it course at more with to 'XX peaked come a -- the around our CapEx revenue, CapEx. bit forward,

of again, confidence few only XX%, XX% below items even those the that just So points a QX. in lot combined XX%, with a in give us

want sort share to So buyback very versus great. on that good if Gary, there. be might you the M&A feel about outlook that of touch

of done given Yeah. have Look, is shares. on changed. I that the as current traditionally back of M&A said, valuations the hasn't own where mean, Ashwin, this we being mean trade, return our a I our buying company. given best share cash on of stock, dislocation we view a the think derisked that current the With use price of our

sure good our very our now, it's that we're to all market. But we well. the we very about feel a obviously, been strong our three make executing position. in And segments key so are feel We want competitive what's on right we And across of continue component strategy. of to going watch

substantiate this Nilson Merchant. share As should in narrative I loss said,

doing overall forget of And of we're in go-to-market the the capital business what execution. our that capability the which our not about see You and strength from of strength performance, shows strength Banking let's and the markets business. the our

is through the now, certainly right So best deploying share that capital use repurchase.

obviously, put get what that in and further into or capabilities lens new to M&A again open increased remarks, here. and channel we're as break stock would we do as new markets in are distribution from a we But at prepared recovery in possibly at we our point early point our repurchase well. thinking next to and dividend, that start share about price, the time, our XX% As very we our which to our And certainly his prepared in accelerate cash some at growth through said year can to, as could we're this through we well. returning with comfortable look time, again Woody shareholders up

you gives that context. hopefully, So

on ask the can to you. very capital X% you maybe growth. that faster Thank if markets, want growth, useful. I is that's report X% No, And but Yeah. grow

So good. that's

and SaaS-based revenue agency so on. transfer that of notable the could when you percent recurring markets highlight you If remind some is? what private And us the and wins,

about platform Is could at give look sort your client talk modernization. base process? sort people bringing modernization a the If little of in? you the you bit update on that of clarity Can platform the an to of your us

percentage SunGard, markets, SaaS-based the acquisition company specific Let I'll and through our either When maintenance company, And the it to solution transformation fee. model. at in we start, solutions recurring started or me a on mean, was the form capital we remind at of recurring fee highly revenue. the most a through then get this capital drove to that of of a those moving markets in the deploying revenue a in Woody let's company bought in form from it low-XX% reoccurring processing of the was a SaaS. of was total and you It product business. a let detailed I revenues very that

this put and them we SaaS to a X% of So we We've them together built wanted all excellent an It more accelerate that. The markets modernize and transition the up model. solutions deployment. quarter has to done alone. our job really through start business once continued deploying team capital recurring SaaS-based that and was sales

You've Ashwin. We've our license consistent, very seen flat. fees holding been that

a dig This do license in the the banking to ago. trying been executed that a we over transformation. the XXX year. we've fees We don't we're to playbook growing million is little the what is decades So exact while business we want run whole through

large very seeing going willing financial that. because, are processing modernized SaaS as Total conference, commented is our we positioned institutions advantage our capital cost user And is And of deployment and markets the the differentiate. to environment, were differentiator. when processing why no are business the market, resiliency is a you're to what take So very of where longer customers speed is realizing, at take the of solution. reason to ownership, advantage they're well Stephanie capabilities our to

to last we to from grow couple XXs the managed that, over Woody, So -- years, of

and little actual XX%. terms continuing of XX% was percentage there. to grow about license group. Yeah. grow When really out SaaS it quarter, the We asset, of number, we see was only being bought in it to the closer first overtime. other banking component and anticipate a to or the time look a that of XXs XX% PS reduced into over even revenue with the was over Coming the the recurring in that that

pleased So talked the enhancing before, that, structurally enhancement the visibility. about we've it's very around with also the And growth as profile.

this investors, a we will is remind at license fees. I'll our Yeah. point business discontinuing that, some time, start in

with these We're logos we're existing now, customers. license right So through taking the channel. licensing very renewing term on few new

will logos model, coming our point product the to it, be and there actually are a small of that bringing the new of mix. it upper license how in through will start model, business that accelerate very, where shows and discontinuing All license which percentage of But a customers very SaaS-based you'll also going forward. XXs, strength the low-XXs. our will into Woody's where And of have point, perhaps many new then be even were we'll

Thank you, the it. Appreciate for all detail.

you. Thank

next ahead. from Dolev with Our Please Dan come go will question Mizuho.

questions. my taking for thanks Hey,

strong. and share I really very mix? kind point an really the and basis gain I narrative Can of do but -- was strong, last Stephanie on was quarter, a network, the a enterprise what versus have like good question, from know maybe XXX before, it actually more year was bridge think, merchant Because this. congrats this the for debit So you can seeing clean I was the mean side. we're acquiring I help enterprise/debit on more Nilson versus asked you is

a like maybe? versus And you out like credit? more or affect terms parse much maybe debit So discrepancy the little the the kind does of can how of in apparent discrepancy that

Yeah.

So happy to, happy to.

all, of first Nielsen. So I let's think, start with

and loss So really Mastercard to here. and try gain all if is you as understand can and really matter went but mix which pandemic, to ourselves in I had understand, portfolio fairness, we and the through peel-part does tie Nilson, because, Visa, where we you share

within we coming from terms complexity. right, if doing share the surprising, loss share. can the but the coming well, loss see that Report, which It's so same share that large-scale that's are But years. non-scaled can a And that's Obviously, somewhat on trend. from the and technology, the small of But share the of in level of is you -- isn't the loss of of the look merchant is there smaller at you going acquirers, Nilson players, players clearly, really The gained for been level smaller story number some are general acquiring see gainers share clearly you is the are players.

look tough of quarter, I is to thinking portfolio think Now absorb. and to really and time quarter to this Mastercard about Visa. at -- lot and so when be you going our you don't first maybe fourth about spend a really don't I and

in our almost then about And think book, XX% if global e-commerce, merchant XX% about portfolio enterprise I about you large we're UK makeup. think the and XX% SMB.

step the quarter, constant to So XX% currency or think you fourth XX% really is if seasonality volumes the we when you think based and XX% about down me mix. on fourth grew quarter in normal quarter, to about, the that in the the quarter first first

which thought brick-and-mortar, our is you about SMB So added XX% space, about think the and business or season. to in holiday got you you the of -- if

volumes revenue travel first holiday else, at travel out airlines XX%, spend. travel spend, That's in point just to step-down not percentage impacting holiday retail we're if Like and both from nearly got that's of as but down a seasonality and So quarter you obviously as airlines, fourth everybody and have been I'll first it. always go of that the grocery. had quarter benefit, just That's walk back you in we the Then you and trend quarter. X pandemic, start we through big normal but back yields.

we a bit a match point So of places. and there. little then benefit other did had miss we And get in

but big. Someone crypto, that it's not mentioned just

me, the first volume, think about Nilson around if for a losing gaining really I you about is our just us GDP more seasonality, quarter. share. about So then fourth grower and And that I That you where trend, business that, around to MasterCard me, who's way. The talks it's don't think -- world. these you quarter to see to share

And so up up world. make the We whole certain segment they the make world. a of

it. really how think about so And that's I

XXX points, take Dan, to enterprise, a our in. volume throughout think pandemic, build in right, So move got highlighted enterprise business, about do our kind strengthen that's of that. transaction And comes that, to on if in the you've basis We've e-com. just to where our you play engine and over lot sales of to enterprise

of so the not And pandemic coming you're just only enterprise gainers, enterprise really reinvigorating well. also our seeing that the as referenced, engine our large share success in sales but in right, Stephanie out

It those are playing question a to matter. around contribution enterprise the specifically points. our us. a Plus all it doesn't for credit XXX doesn't have debit basis So really and really play play. things in The of really doesn't

our transaction, very For resilient us, as we're a are structures a that. And whether presented it's there to capture transactions. credit or debit really, fee in

scale. of enterprise the you've So stickiness because got great in

low very very, turnover. have We

you've us the seen taking what just share So clearly, is through engine. sales

enterprise revenue virtually taking large the [multiple through It's speakers]. and scale Our volume-based. really, of then existing customers we're really the credit resiliency to and stream transaction-based than share their debit more immune

skew of with have large-scale the our -- missed debit I I Dan, apologies. There's Yeah, we agree Gary. debit-credit. credit. players, because a don't to

So us. just for it doesn't matter

right. That's

detailed Perfect. answer. for this look Can short very As thank throughout a you the in follow-up? squeeze you I --

we're you Is Thank opportunity we prices, there where market. anywhere anything? or you or in the where your -- book through in could could specific for increase see portfolio, your any biggest hey, price increases do say, SMB your look As vertical you below maybe actually you.

Yeah.

I the we're up large -- space. in look, think

everybody there who there's is a players a you're of if e-commerce The of knows, because price. there good as the us are for us this price industry couple scale. has historically, that that think they news SMBs So place a demand. at I or those can large terms increase play global need enterprise, you you can only I demand scale mean looked in

there. we I continue pressure seen -- have to There ability. no that think is we've

from sitting that I I a there's heard don't. our probably other big think today. you in book lever pricing But think people. I

opportunity. don't and think It's it's but anything it's there, take amount been. of new, always we of see I I we it can. significant or when same advantage the always always

you. Thank

Thank James And ahead. Stanley. come Faucette with final will from today's go Morgan Please you. question

around are CapEx Thank the questions allocation. the much. all you details very appreciate primarily I on capital and business. My

XXXX? XXXX to did Or hear correctly, you buyback billion $X expect you I First, say that is in you across XXXX? and

billion buying of XXXX free all those buying XX% in billion and flow or cash be anticipate will current XXXX. of billion about would We in Excess No. $X X market $X stand-alone utilizing cap. The flow $X our free about combination in be XXXX. cash

Got it. Got it. it. Got

Okay. make I to as about to wanted can like little I when detail sure down talk you you correctly. of a then such able in And growth revenue, like way a that as revenue you being need kind can growth that bring capital don't spending? that CapEx give to percentage in continue to in of where to made allow to investment has overall you been that the match increase a understood

going that in to years. next back to XXXX next-generation start it, historical So based that a about business I platforms. in for need you we've long mean, of the took in you're to capabilities -- are on be look, We services the time, XX-XX been to company very to focusing need technologies we really Well, right? the legacy think for pivoted financial a we're on James, compete going as lot

what platform, platform the that system got you sector which for cloud-native new in is Worldpay, and core start market. And online you leading was looking whether whether in banking merchant done fully access invested you so look at banking we've the platform, we've it the most around look in banking as acquiring at, and we where modern now; technology heavily in the

which that platform we is seen debit, a but cloud prepaid. issuer One, for native look credit, our You've on with did what both at wins, Payments

in wraps One, omnichannel our You then and CodeConnect our those coming layer. micro for into then again capabilities, market our once fully experience Digital around our services that online move platform

bringing solutioning type programs. on into boils where our down that and SaaS then we capabilities the up in what leverage our to capital really in move deployment, in leaned to we're Capital both capabilities You all Markets, cloud buy-side we sell-side that those about did and wrapping markets launching

we increased of as conclusion, X%. so down. capital starting ramped platforms And now in were we come revenues. And as running come expect think, to, those have I back We as And about high to XXXX. up our that total at XX% to you investments those would

an of to come X%. conclusion. to we've around functionality and a just revenue side expand the we'll what opportunity growth continue the to lean solution and and in on And maintain We back think all But there's our that programs about, we're all stack. X% to continue natural Now to talked our and add share. modernization our grow of

our customers our those to position. One we capabilities. about competitive to that But clients migrated have existing do some stuff highlighted start a example. in Payments of than as good to more already migrating. Stephanie we'll banking. historical at feel on more point as migrate some we're But we X,XXX doing of the an book Now time, very back come upsell We've we and that, in our

see You various by growing share segments all taking of and our metrics.

this point just platform wrapping a And so transformations. of we're at time, we're up -- these in lot

to got extra past that's Thanks seven-plus years for of No, get great to that. Yeah. feel investment.

great We and exactly. Well, for look, another I our Exactly. about for No, thank quarter. to dedicated Yeah. this feel us colleagues it. you want you strong morning, joining thank to

Before a over event. industry Client remarkable had This suites very team event participants. wanted showcase to give a of thanks to leaders. hosting solution for our Annual X,XXX we was successful to live a conclude, special our I We

pressing client-centric solve interacting our as capabilities curve. how so prospects needs. commitment innovative We culture learn will business clients are from committed stay person clients Feedback to our their the We the truly our grateful XXXX ahead and that has can been we event the where exceptional, most to in be and growth of can to our solutions foundation beyond. remain world-class for lay providing This in technology shines.

you you, Goodbye. of any further our Relations you that Thank If your the reach Investor team. hope I out were call, questions to enjoy on not this and had rest day. addressed please

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

may now You disconnect.