Fidelity National Information Services (FIS) 7 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the FIS Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, George Mihalos, Head of Investor Relations. Please go ahead.

Thank you, Abigail. thank Quarter joining XXXX and the today everyone, Third FIS Earnings morning, you us for for Good Conference Call. being is call webcasted. This Today's and website news presentation available release, our on webcast at are fisglobal.com. corresponding

and call and the James call reviewing followed CFO. are our Kehoe, With me providing strategic President; lead and this James the on and will by results forward a Stephanie guidance. our morning Ferris, financial CEO with Stephanie update, our operational

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

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

to With that, turn Stephanie. the over I'll call

for Thank morning. George, joining thank you, you, and everyone, this us

honor Let FIS. of this an start who me by to building saying the future and lead are privilege a it's very collectively talented team

conversion. our financial and again and high solid commitments. the report to of EBITDA meeting our quarter, operational we on had cash and strong pleased of free revenue exceeding that both is strong end or I'm once flow delivering straight outlook our another This results, financial quarter adjusted third executing

predictability to Future company in year or transform with the shareholders, the balance and increase program. into FIS sheet, to past of our reduces our The return and from separation invest exposure consumer both a capital with measurable actions growth FIS enables We same targets macro us Future Forward time, Forward have to execution our with decisive margins strong while to expanding repositions a meeting Worldpay and taken impact exceeding over growing trends. which at

complex transaction, a be leader, resilient global set products aided secular builds our company on the global by of trends, Post clients enterprise will This positioned will markets as provider, marquee a and beneficial foundation, for software-as-a-service growth, participants. revenue capital client and segments all and of The expand future Worldpay growth. the software which well new us new recurring solutions, enterprise enables the FIS as most profitable accelerate best-in-class a into revenue faster-growing a into repositioning financial strong servicing as the verticals. cloud-based institutions world's to FIS

outlook, leads All of our future drive prospects long-term and to current our plan to our shareholder confidence in value. this year

we of positive reinforced further is across leading a key momentum by number confidence Our indicators. seeing are

to our and we as revenue sustainable First, serve continue steady deliver a visibility recurring growth, revenue which for extends growth. foundation

our pipeline is customer is Second, engagement robust, new and strong. sales

as we and an opportunities revenue force strong transition as take are to onetime advantage well both high-margin as We from of increasing a demand and secular productivity pipeline in market seeing increase trends. sales recurring of

risk Finally, platforms positive traction new Platform, like our Modern by we live clients driving bringing One on Digital momentum. the many future of are our that and Banking solutions getting management is

we at stock, XXXX. increasing to goal and total share fourth in the in business our Given the $X.X valuation billion the are repurchases resuming confidence quarter, share attractive by our of our least year-end repurchase

of our quarterly discussion turn results. to now a Let's

by and X%, organic driven Forward and combined in segments X% our growth the X. of Slide revenue strong to program. results growth broad-based relative Banking of profitability led prior outperformance with Capital We was by driven improvements The another outlook. Moving financial our recurring delivered to Markets Future by quarter strong revenue outperformance from

We This continue is efficiency exceed for XX%. year. target of cash a our very full XXXX to business. greater free ahead are flow conversion conversion Year-to-date related strong flow as year is the Forward than the and to well of strong efforts to target generate track cascade to our cash Future through XX% free free on cash flow continue

move teams accelerating speed Our path are sense to our continuing and with a forward. high quality, of urgency,

X. Slide to Turning

transforming We are FIS. making significant strides in

milestones to Our first Worldpay our the XXXX. FIS achieved separation remains earnings several in advance close Worldpay separation. last call, the Since of important on quarter necessary have to and track

pleased We billion at required the upsizing $X.X the the Worldpay offering are the demand, favorable financing debt by The debt rates, success secures close recent with the very of committed evidenced deal. of raise. the strong to

Looking finalizing terms securing and close to are transaction towards necessary working the around approvals the ahead, we agreements. commercial regulatory

Future to Forward. Moving

on client all improving faster, including We approach simplifying deliver XXXX. go-to-market in commitments, turn, sales on sharpening billion market our total and products driving $X is by savings on our in and the are of experiences. to across The is and focus delivering improved best-in-class track our solutions to year-end This, new program enterprise momentum. innovating

software leading clients, includes our needs. neobanks. Turning global recognized the the leading have positioned services And uniquely increasingly solutions and corporates, the regional offerings provider large a This as companies, banks, of broader increased to of resonating next-generation FIs with leading X. most multinational institutions FIS who demanding while and to Slide globally. and provider as insurance are fintechs base choice is financial for complex financial

developed delivered past offering. a on year, market efforts enterprise solutions issuing across suite significant our of via these Over solutions digital componentized have cloud-based, bringing this to core We SaaS focused platforms. we've full and

a now for Tier Modern financial includes a fintechs. Banking for Digital and member, Banking Bank's This Jenius core next-generation U.S., our new institutions X product new platform Bank. a live and for savings BMO division, digital SMBC Manufacturer in digital with the account result, of number a a solution, deposit account is Group deposit Platform, As interest-bearing banking PayPal

part of ahead a broader as Tier offerings expect go more Looking to effort. we modernization MBP banks live multiyear to XXXX, core X with

One for and are the experiences bringing We the enhanced our Digital One most institutions. solutions, Payment digital financial capability front-end issuer processing demanding equally excited to about complex and prospects

the to value conversion capabilities flywheel open going the This that enterprise leverage bring to environment overall speeds development and our platforms new clients increased FIS Our complexity. mass our vision open APIs full our eliminating and product creates robust forward, to an flexibility. for is of core with architecture

wallet Capital tailwinds are of business, increased across In we seeing Markets, growth both in and strong nontraditional a faster function share verticals.

nonbank from of and several provider growth risk mandates, solutions, climate asset management global leading treasury the such and trends. from verticals insurance include environmental Capital secular increased and is as These in Markets As benefiting and regulatory risk demand providers. lending

encouraged enterprise quarter and momentum during going forward. sales Provident am several by our third platforms, to was selected marquee segments. announce drive Capital modernization bank's X. across the Slide I and by Beginning to Bank very to FIS the core Banking our with core Markets pleased Turning wins the

had our the Bank offerings Origin selecting quarter, disruptor. One notable digital, of wins we in over including suite In Digital the several

money front banks, We and also center had a fintechs corporates. particularly for network strong movement quarter and remains in and as payments

over quarter. rollout still Sales retailers, NICE in network accelerated our of clients we XXX in third restaurants are while have seeing pipeline, to we the up by clients the are several related signings encouraged we And of the from lastly, the XXX FedNow, where interest currently leading fintechs. notable just days, quarter last and early with of

Markets. Capital to Moving

or financial we During U.S. a of wins, including number industry-leading signed largest institution. some providers a recently with the expanded We extension in financial new X of impressive services clearing solution the a for engagements had with the long-term our quarter, world. derivatives top

for our private ever for also across our global signed tools verticals. risk leading all a to equity and company. contract Demand largest services geographies We accounting strong software was fund investor

that Our new risk sales and growing in investment global international the to traction enterprise. vertical Overall, are we are across and of seeing with quality by suite and FIS continues broker-dealers, the several with leading enterprise especially insurance clients. we gain to level encouraged the banks U.S. engagements

Slide to XX. Moving

During the differentiated solutions third received accolades. number prominent a of our industry quarter,

core First, firm customer X breadth leading FIS in technology, recognized functionality. with advanced advisory awards and base and of offerings research of Celent

industry publications. by IDC Our treasury leading firm advisory solutions were and industry-leading recognized several

our are in industry. to not resonating leading delighted but advisory see that the also clients are We firms only with solutions experts influential in with

Turning to Slide XX.

high been to We the of set cash clients the a do are our a year, improve performance everything allocation. capital ensure solutions. have across agenda innovate with new at course and center of we Over free flow with that portfolio we of urgency the the business, that next-gen the moving of sense to to

of delivering financial flexibility made strategic Worldpay affords on date. We've significant creates to proceeds, substantial benefit to capital in allocation shareholders separation which while The the upfront return us capital investing accelerate for of progress commitments us immediate to growth. and our

sustainable and and drives the outcome our the in the business forward. operating of that transaction about underlying excited model We're remain strength confident going strategic

FIS the forward XXXX. look at second quarter of We all in you hosting an Day of to Investor

With to who introduce financial environment James. to decades call to will of large that, aspects and turn international over I'd unique its like navigating brings CFO, Kehoe, I new organizations. James experience now the our the managing dynamic

morning. and meeting in all here, I'm look be to of near delighted good with you, I Stephanie, future. to the Thank and you forward

the As noted into in our discontinued Worldpay third the operations. we of business have quarter, as transitioned earnings release,

our ongoing basis. be FIS operations forward, continuing a Going will financials on presented

our this will outlook. quarter, will we prior this for our and to allow of a you compare some basis, company However, company on metrics present total also to total

as principal the Banking and and X Continuing operations operating well Corporate reflects Other segment. now as Capital Markets segments:

As of true continuing and the earnings operations statement we operations review understates split that continuing income discontinued operations, FIS. the note would the between I power

billion in XXXX. does upside it EPS the deployment financial a share For $X.X contribution cash example, billion least do operations the debt yet of continuing the of $X repurchases XX% of Worldpay significant nor at stake not reduction include Worldpay proceeds, approximately planned including include our from from through the the equity net results and EPS

like-for-like Taken on estimate XXXX. meaningful power we for have together, of these $X.XX will $X.XX EPS, earnings to items a and impact around

third now results. to quarter Let's our move

quarter performance mentioned remarks, it we consecutive our in our third or the exceeding is are high and meeting end of Stephanie her pleased with the third in prepared As outlook. the of quarter,

margin basis Worldpay, XX points improvement margin margins and and year-over-year billion on EPS continued This by margin incremental our first of year-over-year, the driven adjusted of in since with high benefits quarter and of the year-over-year of above the fourth continued Including total margin XX XX.X% expectations basis adjusted EBITDA an recurring Future expect adjusted an strong the revenue X% we expanded company points from fourth EBITDA organic Forward. $X.XX. improvement our quarter. end XXXX, $X.X increased marks EBITDA The to on basis revenue

to to a revenue XX% to year-over-year billion EBITDA operations by across On growth X% margin in compared prior Adjusted strong Markets. in increased and interest Capital basis entirely $X.XX both Banking recurring by in led higher points EPS continuing the margin revenue this was [indiscernible] was quarter, year, operations Adjusted $X.X and to X% led costs. organically XX continuing decline basis, a due Banking. strong for expanded of

broadly Merchant And EBITDA which in organically Future segment, EPS X% the For billion. Forward discontinued was XX.X%, quarter. operations, at XX expanded efficiencies. $X.X basis to to $X.XX. That continued line with our in points our decreased Adjusted expectations reflect for reflecting revenue came margin adjusted

cash drive balance Moving improvements flow reduced $XXX prioritize vectors. across and multiple X% now or X% to and continue metrics, and we revenue continue were to million to as sheet we optimize year-over-year expenditures of to investments. Capital

than XX% resulting of cash very XX% free our conversion in favorably of the We cash to prior conversion. strong generated flow quarter cash greater compares year-to-date. and XX% a free This flow million, $XXX target flow free of for

Lastly, ratio our of million a million we Xx over $XXX debt reduced approximately billion, $XXX also total leverage to returning while yielding $XX.X to shareholders. by

improved Turning to segment led and XX. results Markets, now with on X% increased $XX.X strength X% Capital for revenue organic quarter. our X% both Slide execution. across compared year, Backlog the and reflecting prior revenue was billion, of increasing growth this to Banking Recurring to the sales

first in organically points exceed but did pandemic of the X%, results had impact half a our recurring the of relief growth an servicing in grew funded programs. XXXX, rates on approximately revenue X% And relief a benefit quarter grew as of percentage outsized X quarter. revenue from Banking third the little the Pandemic result federally Banking expectations. including contribution

a As services. primarily EBITDA driven difficult other Forward nonrecurring we cost declines expanded projects XXX Future services XX.X% XX% revenue to comparison in anticipated, basis revenue and lower in XX%, in customization of professional saw initiatives. license by points respectively. margin declines reflect Banking professional year-over-year and and These

XX% of Capital revenue to professional recurring timing basis organically revenue trends, Markets revenue continued X%. services with our X% Capital due the recurring decreased Consistent contracted expenses. engagements, increased revenue. led strong increased mostly reflecting Markets to by margin license growth higher shift as operating other X% revenue XX to to revenue XX%, adjusted while we year-to-date nonrecurring points of continue EBITDA

to on This of for chart for accounting for to total the outlook discontinued the provides Slide XXXX outlook an Turning -- now implementing prior enterprise XX. operations.

raising our $XX and EBITDA $XX.X Total to strong revenue company million. good billion revenue outlook around now fourth We reflect are $XX.XX visibility currency ranges continued is an to adjusted operational of billion, and including at impact projected trends. quarter adverse results

On constant increasing the we lower the of of range a the $XXX million. the currency end range by $XX basis, and are million higher by end

As the Banking, ranges line outlook our we expectations. our we narrowing with to narrowing segment our year, to prior In X.X% close X.X%, out we are are growth. for in

lastly, XXXX. to outlook account primarily anticipate Markets, due approximately Capital expected to improved X.X% our For And segment performance. Merchant of into growth in we for now X% an recent to shift organic fees we've license revenue

As quarter comparisons both Banking Markets, reflecting deceleration growth Capital expected, slight in a headwinds. the to nonrecurring for implies year-over-year difficult organic revenue this and fourth revenue in related

reminder, quarter, headwind As anticipate license quarter a fourth for the X-point revenue. in a we year-ago Markets very we a in lap strong as Capital

with do another we recurring year, anticipate Markets. growth consistent the Banking in approximately and seen revenue Capital X% growth X% we of with quarter growth in all However, have trends solid

We adjusted to $X.X billion, and reflecting margin. improved $X.XX revenues EBITDA are EBITDA range also increasing to higher our billion

In outlook a year summary, raising reflect favorable outlook. we future our are continued to and outperformance full

of $XX $XXX to million Turning now are an proceeds increase assumptions to updated regarding than we more where Worldpay net Slide the transaction. estimate. our approximately billion, compared prior We now of XX, anticipate providing

once will provide proceeds number we closes. net Obviously, transaction final the a

As capital the by returning transform balance structure used be the while to previously to will disclosed, proceeds delevering our capital simultaneously significantly shareholders. sheet

debt gross reducing a interest anticipate approximately transaction. to $XX costs we in billion, significant Overall, post to leading reduction

reinstituting continue repurchases we more to approximately conversion, we of are into share million strong cash proceeds visibility comfortable by cash year-end. and $XXX As get net deliver now

$X.X repurchases $X.X will year. billion to we end billion we from XXXX. least at Today, the capacity additional are increasing And the assess to targeted the of share by continue throughout

share this accomplish still targeted ratios. will within leverage while repurchase We our goal remaining comfortably

XX% And approximately investments full billion of X% year capital expect a We operations statement. D&A as income continuing to in growth through should of flow on you assume $X XXXX XXXX basis. the past

points down we communicated Some good an to on anticipate the to XXX rate. compared to news now to tax tax XX% XXX effective XX% XX%, We rate XX% basis of previously.

our incremental savings expect the dissynergies in EPS. report $XXX earnings can our We in will in include for remain continue of within And XXXX. forecast million stake to And adjusted from our approximately confirm and EBITDA million outlook. net after-tax that Future we our XXXX. in Forward adjusted this XX% $XXX we earnings adjusted we'll XXXX And Worldpay finally,

EPS excluding side to out outlook adjusted outlook $X.XX of of XX. lays operations in our $X.XX. continuing Turning for now chart Slide this continuing The to our left-hand on XXXX operations, This for results Worldpay.

the continuing FIS. of the A true is expense artificially no allocated example expense not expense. interest However, reflect The the of accurately is as operations income I operations. discontinued power with burdened the interest operations. earnings expense good continuing operations depresses entire with earlier, interest earnings does continuing XXXX statement interest noted FIS This to of

deployment EPS And of as we proceeds the to adds the interest adjusted expense approximately chart, of right side transaction share $X.XX tax Shifting offset These would basis. the of let's rate. higher are a year $X.XX the the benefits of add modestly full to XXXX by FIS. a reduce and NCI Worldpay on $X.XX count. Worldpay earnings discuss meaningfully power

leads this $X.XX. of $X.XX to a EPS XXXX to Overall, normalized

quarter our earnings XXXX revenue We adjusted call. will EBITDA for provide during fourth and our outlook

approximately with exit savings to to Overall, cash across anticipate we aligns of of This year we the $XXX year-over-year updates $XX savings. of EBITDA, program. Future our benefits million through of and Forward. XXXX continue billion rate run of operations basis, expectation total savings provide benefit all categories million to adjusted million gears of of $XXX optimization. will $XXX a $X X expect cash to This continuing we life the of anticipate we in-period year-to-date and quarterly year, Switching delivered On now with million. the

now our FIS very a Worldpay on capital Moving allocation capital allocation balance in set Post sheet with Slide significant of XX. to will be transaction, and a flexibility priorities. priorities position the balanced strong

and accelerate over prioritize shareholders ample to will capital EPS We time. growth investments to returning revenue while

We will target investment-grade a credit strong balance and sheet maintain ratings.

maintain to Given long-term our and dividend, generation a to competitive adjusted Xx dividend We we intend strong are free flow revenue line net cash of range EBITDA. predictable X.X grow earnings. streams, our leverage the and in with gross we will reiterating adjusted

where but We drive we growth in our can complementary distribution highly across and targets tremendous targeting faster to will smaller, verticals. synergistic selectively invest M&A, strategic leverage scale

we we element be of earlier, our And repurchases. share deploy anticipate a proposition forward, to excess that will value shareholders. mentioned As will going for repurchases key share capital

provides We long-term for shareholder balanced are that this convinced framework proposition a value capital allocation creation. robust value

again excited are I be this right meaningful let closing, FIS unlock enterprise In success. of to we value for the say I time long-term joining the as we the during on team me believe transformation. reposition shareholder path to am how

As seen, commitments, our quarter on outlook. at this financial marks end above third delivering the with you our have the quarter of of results or high consecutive

such, year. outlook for in total we the our confident As increasing company are

total least lastly, of $XXX through introduced with given million outlook we stock, reinstituting the we operations XXXX share the raising and billion also valuation flexibility our approximately prior for And improved are continuing XXXX. in our financial quarter. confidence performing, our with buyback an business at the the how $X.X are the have in attractive fourth expectations. We line in And repurchases is to

for line the would operator, please that, open questions? With you

from with Our first Instructions] [Operator El-Assal Ramsey Barclays. question comes

in continuing outlook we F year. on margins I'm past we've through Worldpay and lower shows move like we as I EBITDA year-to-date us ask margins Capital about help once Slide you get The wanted EBITDA seen just operations the in 'XX James. will business Banking what wondering XX the if Markets. the look think sale. to margins sale normalized Welcome, next than adjusted the could past

Yes.

into it's to get fair on don't any I think we for giving that want really guidance call. XXXX this

would some However, [indiscernible]. based give on information I communications you

One year-to-date. gaining been it's momentum. incredible And an This frankly, is success Forward. Future has just

million ramping You've seen of $XXX the year-to-date, million year. to up full $XX savings in

current the in year. the benefit that's So

And the run year exiting the XXX. is rate

business prepared improvements the noted reemphasize over comfortable EBITDA quarter. in you think hope we my margin on just continuing did maybe I comments, on we margins can my that. on I I increase So say across will I And be continuing that time operations. comments the from quite fourth in you ops said

Got it.

Okay. follow-up And a me. for

It an like buyback You've return you've already opportunity laid what in capital there of right as additional looks target. percentage out? direction. a increased CapEx beyond Is is trending your revenue the to

I Day between I'd also And the as wait we'll going in think to and Investor get visibility more plan do sometime until said, year-end and then, plans. Stephanie April. long-term our on our an we're call. And now XXXX

already, quite ones. detailed We have scenarios

to out, think would we $X.X said way point the billion. this least I we I at laid

answer probably in cash short continued your capacity more of our there's question is well to which of the coming is So free based ahead strength on delivery, expectations. flow the

overpromise and we're to anything short, we're yes, in going monitor So but here. going it, to not

with from Our JPMorgan. Tien-Tsin Huang question next comes

be you and I'd little here, on and of we to as leveraged what to be expect, can focus attracts that might what your can James, more join prior your come in experience hear priorities here, FIS, love how what bit thing? kind a areas you

internally, relatively to Well, the because I I Ps for said what X keep simple. like things I joined

passion. was it think I

really drive first me, and Stephanie the the when the interviewed I sensed passion So change to company.

we to success. these the I of the for in it, people price I I and wanted we looked want definitely incredibly potential one the leadership the team, to is increase. last will and process, share you was know then people compelling, I the the interview And And have met Two company plans the it, I that potential. drive are the the at future. think are joined

and have tell the And Well, this bring? time gone of you, behind Worldpay and XX actually incredible the accounting I'd an I you lot What transaction, can I'm in, on spent it. operations. tell an time, can accountant. through I'm accounting, has I awful an not discontinued But I absorbed weeks amount I of

capital we put communication energy capital a looking and clarify allocation to forward, my a focus the I've But how into more lot think personal priorities. previous lot priorities and goals do engage investor allocation group. I around of the of just and are Worldpay around with

What are Are is do capital we then two we ensure And the plans? generate that cash a business? framework? from they the credible? how then plans. have do And we XXXX How more and allocation business the balanced beyond

shareholders. balance And the what And I that returning and on current But on business can between we Stephanie need months? And the was next set it's balance, I The there to keyword sufficient this of inorganically, do think grow you that. do but how the present, XX yes. capital the XX is correct focused I over organically, also more this. answer communications achieves is to are intensely

hear, the to call. Good. Glad and to welcome

ask I'd bit good thought you I mentioned follow-up, my both about -- I think just a visibility. As little

go quarter, know we that's high with as I fourth when license So sales. sometimes the into mixed

per quarter not us se, want the recurring So numbers fourth give danger I this but expectations. 'XX us to know just 'XX just the piece. license from going separate you're I to inform our to outlook growth of using the

know the to sure make So was there? say backlog getting I to -- anything up specifics I we're want but right. else not just on X%, the we're

I Tien-Tsin. the absolutely. Thanks would say, Yes. question, for

both think the strength as you recurring revenue, continue Banking to is and fourth and Capital all what Solutions we If quarter into strength in in the the about year and lean Markets. well of

fourth think quarter Markets, remarks, recurring in Banking be X%. I in mentioned to the prepared James Capital we're X%; expecting revenue his in

revenue think about of you We continue to would So recurring lot expect that strong XXXX. see growth. a as

mentioned. the lumpiness some in is nonrecurring he line There

fourth that. If that in had license we're large very quarter last so of you last renewal Capital Markets onetime year, year, the recall lapping rate drove a a growth significant

the terms XXXX. I into in quarter nonrecurring agree, not of reading fourth headwinds in would overpivot

growth think expect to having reflecting on think I we we recurring as talked XXXX but headwinds those nonrecurring. into coming as XXXX and revenue XXXX, strong would XXXX, headwinds into we dissipate. about around some I about move

so not point, the on XXXX see headwinds won't while call, recurring look this we And those to fourth James' call, quarter certainly on to will XXXX. it we guidance give in do

hope lean everyone strong growth And would would we trends recurring seeing the Capital the standpoint. revenue be Markets. into Banking that into really expected would XXXX move the a as we're board from across those in recurring I So trends and

comes James Instructions] next Faucette [Operator Our question from with Morgan Stanley.

Just wanted to that there how and Or Can a go-forward follow nonrecurring on specifically handle Was X%. It should up talk question what growth think to basis. these it on up trying segment on and look get just was in about of you we a Tien-Tsin's about Markets. specifically? generally items? Capital that -- at drove some

Yes.

has existing able so Markets more lot wallet growth faster an expect sales a revenue share, trends both existing our that nontraditional as with Capital growth. So that year. verticals are underpinning very being of We services recurring selling all to been have as and to to strong would clients trending increasing into The sell that well continue. products

insurance, regulatory management like of mandates, and trends and there There's growth demand, think are So finance. ESG. management, asset lot a driving that climate secular including auto

the in quarter fourth into recurring see Capital recurring we I the to growth go strong. as revenue trend rates So change as any about we really expect Markets here think growth in don't continue side XXXX. very the of those business to

very nonrecurring as you for Capital numbers. When timing-related had historically the come do up think license lumpy it Markets and has renewals, know, I is a do thing. --

year, So signed the there fourth if we in that one you recall, quarter the quarter. in of very fourth last large was license

quarter Markets the But driven recurring demand. a strong what's the be bit fourth So by to growth down. little number that's Capital revenue continues driving really revenue total in a high

segment new nature months, generally? the more on we growth go-forward backlog in Got the in Tien-Tsin, most maybe the these that maybe to this kind once how some are since in it. keep signings Banking taking mind And metrics. more again, measuring and of touched or of one and And of deals RemainCo question, recent think basis, number? is XX of longer a the to But mean, we larger performance I the of broad over should on about X right just bookings a some what nuances close? next should have been especially given

great Yes, question. I a think it's

into to give I sales. good we'll about think to going X% look attempt We as indicators different you performance the key around were we come some Day, Investor feeling backlog up year-over-year.

you color. little demand in for give Market. the I'll and a board Market across more is Banking bit both strong, solutions Capital our

you them selling the force, sales of our know, started solutions. transformation year with the technology-enabled As we refocusing on really higher-margin

So all made lower versus the take margin, we to those sell more that that start of investments we've root. and sure seeing making we're really

Think We've of up is XX% gone sales growth pipeline same-store like year-over-year has quarter. on sales we sales this that Our up XX% as a within a year-over-year. productivity mix. that different seen rebuild sellers increased basis look to pipeline with

our of improved bps. overall, has from contribution then new sales quality And XX margin sales have the improved as

remember, the strong to more recurring. sell see some to we're goal albeit starting growth here So is really in sales,

up of be will quarter we as those are in themselves the before But take it cautiously in to show sales starting the actual time into root, bit so XXXX. we're P&L. move And optimistic the a fourth and

[Operator Instructions] from Jason question Baird. Our question next Koning from Our America. next [Operator comes Instructions] of with Bank with Kupferberg Dave comes

little I to could page into bit like year. it want it, update a sure bit on organic the Banking on growth just gave backing year-over-year, Markets year-over-year. guess the up just with QX I down full looks all we're So make know a numbers. little be an I you Capital the same and

Banking the benefits to if are driving want kind program? right. be any And of federal what assuming would verify that's you Just relief And from continue -- in that on side QX? what's pandemic decel the material

Yes.

for So the thanks clarification.

flattish quarter. more So would Banking, fourth say, I is

the we strong talked range. about I X% growth think recurring in continuing

And as quarter. X% coming flattish so recurring an the driving down we that, what's in to from all been year, in issue being the has really expected, the fourth nonrecurring and

think to about XXXX as encourage Again, a Capital about wouldn't abate. slight to and yes. think overpivot nonrecurring that Markets lot on that XXXX, up, of we you would really headwind recurring

the said, about X%. I we think As we in recurring of talked fourth quarter

Jason, recall year, you had license. If Capital Markets last a we onetime

it percentage think points drove last of growth X about I year.

So we're growing over that.

So be we quarter wanted continues be headwinds those strong, nonrecurring by expect while into we as XXXX. to softer, to abate The items about. they're and we driven recurring would the transparent fourth are that to numbers, move overall

Right. Right.

first that's whether don't into the about backlog. quarter-over-quarter to on QX on No, quarter. And more the just coming looking I but year-over-year, or good been of are then at are thinking it? you're backlog, focused want the since know you back a stable it a end get Okay. clarification. It's view the just to pretty if [indiscernible]. that guys How you

I And Yes, $XX.X backlog X I range coming we billion, $XX.X last of over great number. expect and as in to new then over to to out seen broadly of it's to X X think quarters the pretty backlog question. we work that implementation steady would of the on. I billion we've business the the see bring level next hard quarters or a mean, really increase a

number. It is a wonky accounting

XX.X number up think you metrics. into think broadly, stable better a to as quarter. XX.X. per that I -- we of set that we'd is of But fits come go It give Investor think in range we hope I down Day, So might and to

of and consistent up. really a of over for large on point revenue our the us. that are deals of a really heavily driving nice focus number number think margin lot we've we And the whale in if overall we that sales sustain number we've that, sales you of growth sales invested at successfully in proven to trying platforms transformation, remember will the less pretty and this recurring those And more

And we year, standpoint, this up in. a not, dollar it expect see so those from to next up some while come drive as we may year would come look sales it we to of

that hopefully, So helps.

It does.

Instructions] from Research. with [Operator comes next Peller question Our Wolfe Darrin

onetime the us congrats, and again, giving probably putting seems good the revenue recurring environment in rate and we First what everyone of you're conviction welcome. Stephanie, -- all, the items growth [indiscernible] think into that But James, on, of that's idea. sustainability so is focused us fourth quarter, a demand aside about think, seeing when putting I much

confident QX growth the into side bookings. So on despite you're noise still X% X%, the it's QX, revenue trend Banking type just sustainable seemingly then that on

just for us properly actually they year Is really are What guess, -- question? again, So today hood, is it a I utilizing And energized? is ago? is then -- exactly more the under demand? what the you customer wheel than can turning employee base your you the what's were customers is the tell the as

No. Thanks, Yes. Darrin.

drives terms over revenue the I the environment let's broadly, would really So in demand, time. say recurring what demand from of separate

So demand is high.

we've increasing market. you our solutions Markets our I from demand modernized about into wallet increasing of lot talk a of so If business, think brought from to continue the customers, about Capital existing share

traditionally who not our Capital We of lot talked that about having a may sell those success existing platform, is the there. types clear participants but be only up and derivatives door now capabilities not selling Markets SaaS-enabled other really opening which into into of customers, the they're to

are products we So we the who see in the side wallet sales from traditional people the that see and demand of not really then being Market segment. Capital increased high other on share,

That's new, think we lot the demand wins banks side, a demand it's heightened. I on and Banking solutions. high seeing for for called out of deposit although focus digital of And a on the It's of not market. is those necessarily focus that, in given we're couple quarter. been there in this definitely a generation,

good So about that. we feel really

also products in demand delivering I would of terms to I yes, is from thinking what's say sales growth from that's thing go as an driving a it platform deposit across transactions the number think a well same-store recurring, about of we of the accounts. is benefit that continues inherent those as get there and into standpoint. be solutions that other number But remember, the market. the

so from we us And addition benefits to sales that number the is on there inherent being side. same-store in sales growth an get strong

there, feeling good. and flip, So in we're good about That's but it. say momentum we're that quarter, we're feeling not is X to feeling going it's to the

honestly, going Forward, company I that the couldn't proud well. the and they've think separation. to from repositioning team, refocusing I a and of energy brought passion culture and amount be they to the Worldpay of it's brought that standpoint, really more the Future

years. companies accounting. just X work a for mentioned It's to and it of of separate James lot that work, was period, have X lot that a in people worked together

have easy, So able the that. the Future up been are has Forward I rallied really I the around separation, call and would And It's there. definitely what of not teams they couldn't Worldpay say but between duty to really team more taking to do. the proud be

is good. I So the culture think

was quick to some in James, That moving hear. clarifying the helpful extremely parts. a XX follow-up. just of Slide It's great

'XX it, to to we we XX clear, -- call So mean, Worldpay back be the $X.XX midpoint that's, just contribution, I out wanted $X.XX. the at to let's and if out you back that at minus the look X

you there's said 'XX I I you There's that, what but to earnings, other if it mean, developments, modeled I was for of gives right, it the that with doesn't we expense RemainCo kind interest what you for high there. account I'm that a the -- parts. also any certain think ends up curious forma sense there's said, fact close pro moving a of think interest. still number what but in very RemainCo,

Yes.

the fully disc think are around only explain is disc set a key just directly a of not And that's because accounting chart, P&L there's illogical the that can of which it side to actually is allocate part right-hand rules logical. that you always ops, something somewhat to related. I the ops

anything. allocate can't you So

entity costs. had put interest the legal can't unless in interest You costs

quarterly right? $XXX interest million going XX you right-hand arrive what going numbers. So filed if that's down half. statements Once thinking why your that's you -- I'm Because the help wrong, to what we've on on it's you RemainCo giving of got rebuild RemainCo, we But we're based rebuild you'll the X we XX of at income rough million, to for to X ops by down were debt, you expense. for models. gave pay disc actually $XXX is but go we just and you, side, to

deployment you're at repurchases. is you're and paying capital debt, And calculating And in it we average X.X%. this interest it's down say paying the two did which all rate, $X taking the low, quite is you're of billion XX, of we down basically

is share that if shares is took like the repurchase, you of then you what flip beginning we look year. no, taking trying if XXXX we quite And because at the XXXX. part during the represent $X.X -- was what the if year we've is XXXX. flip the repurchased out we done transaction base out of is the and because a to this But done you're would would assume The billion, this have course other conservative and

look of here, the to going X if base. some But first you X at all, -- off the opportunities to X XX you're XX of grow XX

Once repurchase growth. a impact have to of you're year share of full going you're going to right? But going year. get start to you're doing it, year normal So the get program, also, the the we full

hit XXXX. that in Now will more

I as incredible on look this, then I And there's opportunity at NCI line. the see

So of think this It opportunity. company. stand-alone I is be for $X.XX managed there's $X.XX, cash. a to more lot This will aggressively

think debt quickly. pay down we'll incredibly I

quite will EPS a actual change they've because the loaded much debt, probably in contribution fast be And it with clip. so

careful So future. here -- we're not were the guidance just give we on to

the this. we And of start you we implementing we year you'll EPS will against buyback of be very ground be because companies, But saving trying rates the here will and growth we'll reporting once separated have the say operations be $X.X is reporting strange expense. we're kind a is huge $X.XX. X to the what high in and base be on next we're will stake $X.XX, and put because billion, comparing It against interest saying a continuing a

say So coming of rates from that the transaction. But that will fact the some recovering we're dilutive the growth extraordinary. headline is trying be to EPS is what you're from

we're the XX, participant this the X that why this. grow next against we year. floor. floor, And understand So to chart, going way XX is we're X every about that's thinking hope it But helps to

Our from Vasundhara Instructions] Next Mizuho. with question from Govil next Dan Dolev [Operator [Operator Instructions] comes comes KBW. with question

I us to any that just can a Markets macro the from guess the provide Cap help the we first one, Banking sensitivities economy little soften here? and you segments see if might in and backdrop, the were on Stephanie, on bit

what's interesting one. Oh, me hard tell spend say as consumer the to like Capital spend, Banking, no longer you would I towards Merchant business, are future. positioned business. Worldpay where on want That's consumer the -- the a Markets

we to So immune we that, -- largely from process we've card because moved say do we're away debit not think totally total not transactions.

on is concern be for and solutions. keep and products the macro drop transparent demand I from seeing that and if should we I not we're a we think think have around eye standpoint, close that. And we'll a see

money next-gen all Capital our the in both but stress where demand And to in still undergoing platform so financial levels of high the digital a they're about of the as whether they're in are and participants, are drive think industry, institutions or wanting you terms Market different more they movement. banking solutions

of spend continue So not do, but from Worldpay them, down That's the and to terms there. secular best trends up are impacting exposed probably can us. I going Vasu. side longer in watch the We'll consumer and we're no the

the the [indiscernible] business a on debit it network. which Do I you follow-up could quick and gain for clearly you nice a with see. know just a to for it's was a the few mentioned And mover opportunity helpful. share needle be XXXX? That's wins routing fintechs, present. card not mean, in I think for

I should think be. it

-- We the very have need the we've that dual and to think on and it that challenge of quickly tripling are I actually running networks and it. messaging one capability -- been few required. up that's we the down selling had

accelerate press continue significant very hard tell We've it continue to We I'll guys, it. you, continue to them on some wins. growth. on press I should payments had My to

there. think a as have but advantage come do strategic to we more we come into So XXXX, we

Dan Dolev [Operator Instructions] question Mizuho. from Our with next comes

in didn't makes tell you what sales I One, guys. the Can know I confident questions. you maybe sales results, Two you us force? you Great about hear more talked before. Stephanie, force transformation. feel the

Dan. Yes. Thanks,

we I really refocusing bunch lot half think on and all across this of call we both force seeing of seeing -- Amplify, which segments, the there. of a a first uptake we we're year the solutions spent which we're which the have the sales products in that time selling

good we've that said. think technology-enabled where I'm we like making feeling invested and that should software selling importantly, some that, in that high we sure the I be drive returns. really about really really But should were we more

seen of the improved have quality came into we We has quarter. sales as this

margins. in of bps terms overall have improved New sales XX

And so take to root. transform that really we the over we're to time, as look sales start force seeing

continuing XXXX. of away is moving also of from underpin the too, pretty recurring we're and some think, into about we into revenue terms the good growth to move as us. feeling recurring the to that be selling And nonrecurring for good I in starting

about the sales closely. we quality about still managing sales good pipeline, days, about are So feel productivity, it the very But and good of sales. it's feel early good feel

teams my sales -- myself accountable every have call I I as the own I'm win-loss on ratio hold and a week, And well.

are, critically about So where for feeling we this it's pressing good as important we'll continue but to us. on be

turn That time, closing concludes I the Stephanie Ferris to question-and-answer the call session. this for to would like back remarks. At

Well, thank you for everyone for joining this us morning.

very about tell, we're can for chapter you excited FIS. next As the

progress third significant the unlocking commitments. meeting of already our exceeding year journey, our in consecutive delivering value, first only quarter While we're we've financial shareholder made our or

with We're resuming to reposition growth. long-term an excited We're delivering buyback commitment further by for attractive significant Future and upside our FIS upside Worldpay program about separation Forward. and the

FIS. of and interest We to Thank over in leads next coming year our current weeks. days in you plan outlook, forward this shareholder to connecting confidence our prospects you our the with to your drive future long-term and All value. look for

your today's conference. This the program. Thank in conclude you does participation for

may You disconnect. now