Fidelity National Information Services (FIS) 6 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to the Fidelity National Information Services Second Quarter 2024 Earnings 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, Mr. George Mihalos, Head of Investor Relations. Sir, the floor is yours.

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

our on update, and and begin followed who CEO the by me Ferris, Stephanie a with review our President; the are James, James morning Joining Stephanie financial this strategic our call CFO. Kehoe, results. will call and will operational

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

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

turn over I'll that, with And to Stephanie. it

good Thank you, George, morning, and everyone.

position. XX centricity, taken stakeholders. urgency and strengthen to business and we to our greater to Over to the unlock client a financial of past a path actions business of with We've growth for simplify months, for refocus and reposition have improve on high sense moved our sustainable the company bold value our the all

moving cycles. reintroduce all out to we seamlessly cycle, company's vision strength across entire across privileged life and first capitalize our set model on powering the economy the Day. new the In May, out our X in The business economic by laying global we years, the hosted durability corporate position, our money and to money FIS, of Investor where investors to an

results revenue we Day: the demand of Within growth quarter profitable a we digital at total demonstrate, second signings laid competitive and we at traction money our are returns core currently shareholders. core driven In for across year takeaways are growth double-digit vectors banking record As our on accelerating are core Investor in for out seeing sustainable deliver rest, executing track new To and market. strong by offerings. community banking, the and for greater we

In fact, of as XXXX, half first for the all cores signed of did almost XXXX. many in we've as we

the first the cross-sell core money marquee we and displacing new solutions growth XXXX, quarter. partners the of business, several highlighting of market, to continue digital loyalty we half in and resonate our in saw success into sales our differentiated motion, our the signed in competitors. Within over offerings existing and new Within of XX% payment and customers

a long market, and lending We're new commercial growth money work, in in to also leaning risk growth win penetration the and double-digit we to we winning verticals insurance. Across see treasury in continue growth with where further into at fast-growing global such business, strong our distribution our seeing business trajectory. are as

So strongly across seeing vectors all summary, business. in the are growth we're across and executing strong momentum

of outlook. our the and I Capital outperformance basis acceleration expanding company of of to strategy. margins We quarter profitability continue points, over our by ahead execute am we pleased with with adjusted we growth growth Revenue well our both Banking against sixth report XXX targets across to XX%, as normalized delivered in our was driving straight Markets. EPS quarter exceeded X%,

us performance Our strong first is half once raise the our again to financial for year. allowing outlook

Worldpay. from new thrilled across sales the cross-sell driving, the and seeing benefits highlights the strong from share with commercial I'm let initiatives the with enterprise with relationships including we're me strategic Now we're you momentum some quarter. our our

with first the continue activity accelerating impressive and to go-to-market of the hold. take rollouts. XX% transformation strategy new sales half partnerships We're cross-sell efforts our grew across as enterprise XXXX, key our an innovative Over product

recently provide core and access proprietary their with and intelligence analytics, clients to with helping them FIS We a to improve Curanos' Curanos, company banking gathering global teamed data optimize profitability. deposit strategies data up

We with small a loan partnership announced leading for financial Lendio, solutions financial platform SMB processing to also a technology business streamline institutions.

climate the launched insurance best-in-class a we Financial company. to companies of Markets, assess corporations, and examples and Capital modeler, their within Risk These financial handful of portfolio. are help the solution product innovation just designed quantify Also across our risk SaaS-based across institutions a Climate ongoing

and repurchase commitment shareholders capital deliver billion to the year. to on track We our to $X continue for are well on share return of

Board our recently authorization of billion. $X repurchase approved Additionally, a share new

client regional more the We large Digital another bank. a platforms with $XX Also with continue within current saw Third offerings expanded some money for banking our strong competitive rest. community in relationship ecosystem. market. takeaways, at of a strong with demand beginning wins, our We including sales added our rest, within billion Bancshares, assets the as products Across that several in One with quarter money to over leading Coast bank digital had core resonate Texas-based its our breadth at

leading We premium offering also card solution. a payback engagements list industry. money and financial premium of credit a differentiate FIS selected company help issuers proposition with consumer in loyalty our is to saw FIS' enabling with who've Synchrony continued highly payback the in long across Synchrony, and consumer motion, leading payments competitive their joins loyalty partnering value across traction new services solutions.

Our Solutions continue award-winning demand. Risk strong and Treasury to also see

This work, and as FIS' and on its for team the builds across a we market. Within suite business money quarter, risk compliance insurance the strong and relationship asset insurance presence commercial in provider This at new solutions the several large U.S.-based new engagements selected tools. servicing lending. represents a signed life trading of

accounting private and global engagements expanded services equity our boutique software fund FIS' a solution. suite, a and global equity private selecting Newer firm, company; corporate capital leading Trustmoore, include reporting both private award-winning

win software and example of combination investor opportunities. The to accounting Trustmoore acquired FIS' leveraging servicing of new and deciding itself allowing recently the fast-growing win its a competitive its FIS Markets a capitalizing the to process. Capital in were to verticals global capabilities sales strong into reach. with from solutions, expanding perfect factors and provider, coupled further is DeepPool, how reporting peers on differentiate source by acquisitions we're an continues of highly

Treasury our global And across to CNBC top named company. are fintech addition Global being publications and from new our industry, most by Solutions once and honors and firms Finance the Management efforts again with of both Risk In wins, prestigious Treasury expert Magazine products financial some XXX winning International. advisory independent a top the our FIS recognized

reported good have the delivering model. into forward summary, we another strong highly So durability our our and quarter business in of recurring visibility given outlook,

I'd thank all James, who at colleagues like continue Before I it turn James? FIS, of to move the here Forward. over to our company's to Future

everyone. pleased our Adjusted year quarter, the Stephanie, with quarter, growing and was normalized in our continued X% on the by our Overall, year compared in basis XXX strong and quarter, morning, mix. to XX% EPS us financial the primarily full We this second we performance to over compared you, cost allows outlook a the margin vectors. $X.XX XX% outlook good are favorable EBITDA execution accelerated to with reflecting revenue outperformance expanded X% Adjusted in revenue second basis. year-over-year, quarter. growth many broad-based and and the against in the first adjusted increase across very Thank delivered consecutive prior up and points savings quarter, for to

with to to $XX.X end of now billion, returned share $X.X at XX% and the billion capital repurchases cash debt to Year-to-date, million, our our cash balance the have flow billion including confirming and of target. full with quarter shareholders, flow was cash XX%. shares, of Moving of cash ratio of are rate sheet XX%. well deliver a $X billion And year Free billion. was on full we our of X.Xx. $X.X we year We a conversion metrics. conversion to on Total target leverage repurchased we are $X.X of track $XXX

growth we results quarter. growth the Banking expectations, high at third to Adjusted confident are our sales fees revenue the revenue in our in Other nonrecurring momentum. in of our to grew in Slide in also half revenue associated also quarter now growth X% the license came deconversion the grew quarter. back end Recurring Turning X% accelerated XX. and range recurring revenue with on and the X% and recurring growing segment year, growth revenue X%, execution outlook consolidation. revenue of reflecting with and was the will accelerate XX%, in for with line strong and bank revenue reflecting

Lastly, year-over-year. services revenue XX% professional declined

primarily points, stream EBITDA favorable continued of in professional this an see to revenue the margin the stabilized as expect half We half acceleration has services second Adjusted growth savings cost XXXX. revenue XXX mix. and expanded will basis reaccelerate in second and in reflecting

growth growth revenue recurring now X%, Turning of Adjusted to was led Markets. by X%. Capital revenue

operating EBITDA with across X%, messaging, growth first in reflecting professional increased our expectations. expansion points, revenue. growth segments. nonrecurring expanded revenue both leverage year anticipate in prior revenue, XX up X% license grew X%, reflecting to license and Excluding and growth primarily basis in line continue acquisitions, from Consistent Adjusted adjusted higher-margin in revenue services the quarter. grew with margin we full XX%, Other margin

full to outlook XX. on our Turning year now Slide

year results the drivers our for visibility another growth year-to-date increase outlook. in strong positions us full Our second half and to good

growth $X.XX to multiple $X.XX to EPS $X.XX We XX%. and increase $X.XX, across XX% are raising strong normalized areas. driven is year our of by by to favorability broad-based full reflecting execution outlook to This

changes Let's the walk on key through Slide XX.

impacts. absolute million our Segment ForEx $XX more raising favorable by target are are to revenue growth rates We unchanged. reflect

to Banking X% expect We X.X% X%. to of growth continue and Markets to of Capital X.X%

reflecting year end We by increasing range. in range outperformance. our million, EBITDA adjusted And achieving our new confident low we year-to-date full are remain of the EBITDA $XX

meaningfully $X.XX coming are these and and Together, execution interest are EMI. favorability We with $X.XX $X.XX depreciation amortization, expected shares strong outstanding our an additional and of from reflecting EPS, outlook broad-based Worldpay adjusted across to continued factors contribute approximately to Worldpay increasing EMI. expense, EPS

we Day. adjusted at Importantly, in confident committed the Investor we growth to X% to delivering XX% remain EPS

quarter on move our to now third Let's XX. outlook Slide

quarter, adjusted to to X.X% We the growth revenue growth X% to X% for third Capital at are Solutions projecting X%. and X.X% Banking at of with Markets X.X%

revenue. the reminder, revenue steady Banking headwind, a expect driven rollover an recurring As large significant in acceleration Despite nonrecurring a deliver the in we to nonrecurring growth outlook by includes revenue.

revenue, nonrecurring of and degree Importantly, in revenue provides least X%. revenue around rebound us the our combination strong visibility high a at growth with of fourth of quarter recurring

in to a forecasting This quarter negative revenue growth at revenue with $X.XX EBITDA third the impact corporate full Day. For confident Investor at absolute and year rebound EPS XX% in margin of a level quarter we XX.X% Adjusted our $X.XX. XX.X%, were projecting growth. increase achieving and a recurring adjusted of outlook. lowest highly with XX% anticipate Overall, to to which is Capital XXXX. comments Markets, expenses, grow-over strong we to remain our reflects are an FIS, good in professional of the for We are to services revenue another from projected in good another quarter line we in

up sixth straight Let our wrap we me are encouraged quarter on of XX. financial our now In by delivering Slide results, summary, outperformance.

growth both During quarter, we expansion increased the we segments. again, once adjusted second meaningfully revenue and operating across drove outlook. our XXXX And margin accelerated EPS

of to billion compared increase $X.X the of shareholders, returned capital to we XXXX. $X of billion second an our quarter Lastly,

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

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

for again, growth strong hitting you up to wondering meet us you if are Or relying on And pick and was apart to your full could comp sort the Banking the that are in levers? your in the kind Are of You just and events year guide, called drivers I any coming visibility both target? level tough and of especially it confidence kind there. roll QX QX, given any there all up what about are comment on QX. out of

if I'll he can Maybe start, and Yes. in, add James likes.

very say pleased and again performance strong the So I first once respect Banking in second to we're quarter quarter with revenue. with would

you first back half lot in execution, confidence call of them look I calling a of and coming execution at the P&L a had look the execution, had of about up have lumpy we and which we you half, it's together, banking third sales back about are stronger second confidence. good talked the revenue, sales in on guide of XXXX. a the for terms XXXX, on it. of remind into third the us overall giving and fourth second in the versus of last and just quarter. the As is year half high level that operational all I'll we we that fourth of really if a the bit we at quarter, feel we really But half and the stronger

had QX. is at would number. very Effectively, Yes. -- all in good we The quarter, the And into fourth quarter. we it's to drivers add -- we're we back prior this get a because in year, solid growth so visibility I was have very were basically thing QX only on to business look in the Banking maybe least the the Banking of flat X%,

So look on compound period, over over years, probably out fourth look digit to get easily X% average if you quite you're X the you over if single you growth and quarter. low X-year growth a the -- in rate in our

you QX? commented a last as growth like quarter. bit accelerated Nonrecurring looks It little question slowed already, know Okay. nicely. of follow-up. related in and versus bit And how a versus up X those recurring a to this nonrecurring of and what little revenue on your drivers should that I pretty can full sort about you QX kind but a going get to forward targets? terms expect think year in of recurring us you beat And help we algorithm

start add I'll again Yes, and James some color. can

second from been to second deconverted platform really profitable strong more large recurring growing recurring have receivership, get trying align it, slightly over. West and adjusted to of quarter of years the on sold So our [ the know, revenue recurring in quarter and the in to probably the we've was other. out bank a But standpoint, that driving with recurring over is focused you quarter. revenue we were of each revenue that a Coast down that variability first midterm know some you off Clearly, as ] revenue prior really because

And guide. so the which that the is expected, what coming off, in by we that way, was

point, with feel half good we that, back James' And about of even really to the XXXX.

you some numbers terms as pretty nonrecurring, think, of negative are in growing year. we I know, last over

not it of And in this to So comes with think you to nonrecurring, we're if becoming guide year-over-year. looking respect look flat I our terms year negative. of out be to at flat more full kind

move that So we see numbers we I should prior makes with is Banking you some expect into to become think revenue line, in year the as more adjusted the up some but go and midterm are comparables choppy what us dealing in and down. from recurring of

first year. recurring basis, it's over James look and I the half a half if in you at half, a both half, second both and first and And second nonrecurring. on consistent prior time, on X-year of X-year look basis terms pretty

recurring encouragingly of in strong see seeing the the Banking to later. new in I couple of we've to second And the half the as back think we has it's that quarter say, to Stephanie X third as say the in fair well, And over that's the in well. last sales, fourth highlighted months seen going approximately very last benefits what are strength half we're quarter. second And XX sales and particularly of sales on that you're calls, year. new the did the in

signals very business. positive all are Banking So on the

come line Nance of will the Sachs. that with Goldman Will from And

up of been contribution the some segment market, kind and how forward? thinking have overall turning with going that kind in to I'm comments banking traction you -- greater resonating about what elaborate of of follow you're key been on can that space. on you the community that the part to in on script the growth around products of to what's just of mentioned the wondering just wanted I if

Sure.

of that focused, commercial our you the and So how are of specifically in our respect sales. those and growing have talked broadly, resonating, as what's compete about would terms against really say, to banking competitors, banks customers. as With I core in know, new we've been we strength

know, of upper we as you well. resonates part -- the our IBS the core And have more market. in operate our we core there, So very

grow, as So focus core seeing the on we banks a a typically there commercial lot growing banks around customers, banking have really there. of momentum and and needs as have best-in-class

lot We've there. well making product in the of is I been very digital would sales. highlighted resonating I also a in our investment say That digital, marketplace. set

on in lost couple way said I the I years. which Day, well. with verticals, Investor of product as We've is been think just the compelling there the marketplace. And suite. package together I of and resonate we Day, had the core in resonate Investor the really on and marketplace over really payments, focusing they growth integrated there, it digital really Banking last And combination are and our the them seeing So focusing then at talked really best-in-class very in digital the we're payments. fully about a as and

sure were super recurring towards year. make the helpful. it prior to X% being you easier sounded it. relatively exiting commentary just year, of that the That's the Got on comp I pointing a the like understand And kind from like

think are of we about when in somewhere where sort about of So between of for that year? we rest of sort -- jumping-off the level point, be thinking should and sort the for the guys you the

look if we over the We're year. growing about feel in really Think that. X%, the mentioned, you X James good quarter, fourth at prior

an So easier grow-over. it's

was it slightly believe year. prior lapping adjusted. ] strong was But see a recurring, year. Banking we in the like because recurring To we probably prior it are [ X% the will X.X% slower a I recurring X% in in very

at still in X%. areas, professional we'll in a were significantly comments, but recurring, the see the will we And year. on prior other said fourth you in quarter, the the good and rebound growth have be which it as what So slightly services will look prepared we down some below

-- of But that's on a high around a rate growth we So it's comfort adjusted X% the Banking. on this. fairly why we degree have

SPX.

Research. Wolfe Darrin line will question Next with come the from of Peller

quarter. the on job Nice

in strength side. on think up guess, I you're demand Stephanie, versus for of where to Again, -- follow track signings it strength. is some can year the signings you're you set not saying and contribute, you at seeing then about seems like where when the maybe the conversion these. you're beginning Banking a given just needed record on digital what timing core the Just of these the today 'XX it and little up the timing core 'XX, on on I'm new was if of bit mistaken, probably into just would this

on It help seems and you're seen just demand just you've what that some more so And market. year. frame bit year, timing 'XX? half level obviously, So fourth a contribute little into then where maybe on of understand next is last and to the around today And the high in early signings this into third right? opportunity from year's like convicted quarter, and these would and

Yes. No, absolutely.

So first of has environment all, would I stable. been demand say

consistent M&A., it's terms So needing that's you're on operate through commercial stable you're credit in Remember, of I capability. a are bank don't and organically a growing you bank been or and if union in very either growing space. the typically

And there. is terms environment that -- are as is high expect, channels to demand is of So digital, because everything their across increasing sell. there demand, then are now in that you the banks might those how

making digital So overall the they're is spend account online standpoint. very spending they're where focused money demand into stable, which is where from big a they're -- Banking and is technology opening payments,

a them partnership focus announced and deposit also growth really We on profitability. that helps

is outwards. And XXXX and Darrin, we confidence giving high the where made you're we seeing signings into of guide exactly having and that's level our So visibility terms a lot midterm really into record a of this go for in as in commits of year we're next demand. right,

set, competitive our good really about and within specifically payments. here, what our is about the team feel about feel done good doing. feel good We're digital product So environment, not and core positioning the but

for quick been be update Day, Worldpay. on it's now. at came expected just quarters Okay. couple we That's an Investor and out great. with than And commercial very better It of would a your obviously the just a relationship follow-up

And how so maybe on that's a quick thoughts trending cross-sell just been update in partnership or there. and

good broadly. -- been the might feel just Worldpay. separation I comment first of on No, Yes. about really it's of all, We Worldpay

relationships operating numbers to Worldpay with there inside in The see are is strong better it be strong. commercial their team business the that can FIS. when were we they're continue You really that and -- than over was

market where compete regulatory will together, we for As and as we we do together opportunities different where put, that, in go we the and to together merchant can identify we relationships around can network example, data. schemes the

even as as landed part we of acquisition So commercial signing and to relationships, we those opportunities, we'll more set of the a be continue well. identify and

very going it's So very, well.

line question of will Dolev Next from the with Dan come Mizuho.

you puts maybe Great Can a margins into And that of you little EBITDA results then went were the quick margin tailwinds headwinds this quarter? have give Can -- mean, us a I takes I EBITDA here. of and really bit and follow-up. strong.

to of started I highlighted through of think not which with especially we're we in the the cost the seeing at on significant think we're you last the getting gave guidance -- full strong. the half we is Future margins highlight did will year, of the that we traction if One extent as Forward beginning as first we're savings, rebuilding we be dissynergies half Worldpay, year. recall, thing second

and QX very the in quarter, here. first strongly margins QX second in So strongly last year, quarter grew incredibly

so it a visible management and at across both look And you the headquarters. businesses very in cost as

We this. long runway still have a on

but little So it the this in second -- not half. will taper bit off is a

where high revenue license strong mix. this is one mix profitable in we year, pretty both quarters more second have The was

we entirely the margins. XX we're margin confident on XX first very X bps our cylinders of on So to happy future. literally we're And goal about -- going the on long-term into remain enhancement

on made a there give XQ? one you any on Got in and Can M&A. were quick it. then update the And a you quick pipeline us acquisitions

good. pipeline, we in very second quarter. is Dan, No, The didn't Yes. anything close the

into M&A makes pressure price. willing sell to now, right more rates fact, at like lots makes willing of sell, the potential candidates environment it them much much more interest In them the sits as we economic and right high to macro

So pipeline good. is

develop platform inorganic through push distribution. a able a or to it we on our reminder, organically. We it very very we're can need large Just where have add focused and to as the been product that then acquisitions haven't we

possible. to as accretive as and revenue margins quickly it's So

focused return So to very healthy being very on capital. we're a pipeline. said, invested have on That continue

on. are very and helpful to we the So transaction we now. active, aren't market right is going a very think put But we

Next come the Kupferberg Bank of line of will question with from Jason America.

So part of acceleration the bookings the big to you a second the bit the talk is here the just of year, from back implementation coming like Banking half as And last you executing lines? It there in second of mentioned. elements there's just probably further the Maybe half of been sounds efficiency? segment, are it about that? about those ramp Can there. for is like improvement talk of just plan you're now improvement, some optimized, those some the a because there? time kind sounds solidly of Or implementation to room

think improvement sure robust them room No, Yes. and implementations. I think implementations, capacity we of that we can to on I pipeline always nice there's add need we of -- have But terms faster. a make we to in for get

we're on, focused adding So cost. that's without what really

on the focused team on. in don't so as see of in of the getting to and year we've any issues through. come of sold what terms really year they next the half is books But half first what And next that's back the

very very, together. backlog are the a well very teams there, have We active working and

think I good. it's So

Jason, able you we know, go always me, I to I should -- faster. think always as be

it. in I and people efficient sure team, and effective. implement making we even putting So it, our we signed, think become enough and that we're convert to But to it more sign once that, backlog the start the have we teams working before broadly, know that always it's

with So the teams now. where really are happy

big And Day the theme a then A just Investor was follow-up. at cross-selling.

sure cross-sell cross-sell you mentioned bookings getting you think if revenue, I up XX% traction initiatives year-to-date. are the that's I'm which most or is specific with? not but

thrilled. we're No, yes. Yes,

XX% in big So to lot you're first there's half exactly into XXXX. -- is, Where digital talked about, That's and Banking, It a core the seeing we cross-sell payments a clients. opportunity traction yes, within we're cross-sell our ACV. of a in was right. increase of like

the into cross-sold see going our of we significant products there. and into being lot value-added And also We've then services Capital between treasury So lending commercial Markets some a being on Banking of seen business. the business. cross-sold some wins Banking the cross-sell

seeing would we're expect. where it So exactly we

Day, But highlighted opportunity there's we we focus. we we the good more feel about where this to trending. number continue As think in Investor and here is really

come will Huang the line with question Tien-Tsin of JPMorgan. from Next

on going X card on processing, curious a One just litigation out. there, pushed Just questions. with lot

having are on card I think new And Visa like influence you on that have Flex your products any the as satisfied share activity? with side? well announced card pipeline Is win some credentials.

Yes.

All creates Worldpay we and both at of and for that opportunity merchant for the side. us issuer look the as

a share. enabling us very as consumer products the through, Mastercard to come and We are obviously Visa and they sell take big

anything So I And wouldn't say more we know, for win. accelerated look create you those present. but opportunities us that as to there, those continue to at ways the do

the and business, of sales. terms in think focusing to of really winning I a new back just we're payments starting get our mojo there in terms

the of As growth you was for one us. verticals that know,

distracted, got I we really the little really Worldpay. company focused say, -- a we on would as And

core. sales starting integrated they're back see the bringing loyalty focus products, to the in to early So digital and network, to and the competitive with to there. issuer, very the products we're highly They're in Banking wins

a a also cross-sell. regulatory So we big we that of for And we opportunity assets. look at opportunity see is to any the think and of lot expect that us that's as set where of risk

Great. Okay.

SunGard downmarket mind. Just old of market penetrate if down any Just you have Capital how don't change in or to your verticals? stuff, my revenues the revisit versus generate Markets some side, quick of trying a traditional on the market, follow-up Up volatility. lot you

business, trend our and would Yes. continues processing say well. No. to I trading it

the the very It's capability. Pool As some you highlighted us those based, of I new the be added to were strong mentioned reminder, of this places know, it win fast to as very that And some us, Deep we Nothing across Continues with acquisition take small the there. for wins a added we that amount very, of very going acquisitions, to product price doesn't AUM. some a continues to quarter. allowed share. transactions a business key platform.

volatility with risk So on. going respect no market to

and our processing, there and platforms feel mentioned, overall good of really about you transactions as is scalability our of platform. remain But very stable a the lot

that our moment John James. Raymond will of one the for And come line with question, from next Davis

this free the implies the XX% XX% here, guide half to James, XXX% cash which in the year. year, you're on of flow, reiterating the well back over

gives there the then So XQ, any anything on cadence? of kind what that on And you confidence? XQ comments

a There's half of and timing second the between the Yes. first half. lot

around half. a out in in timing the much terms no pay there's you're [ and with outflows of of half out And the to half the and there's and interest skewed in bonus reasonable are year ] of misalignment, first should the second because will in to probably be first examples. between for you are of bonus half the XX be second the pay that's inclined the X first These second shifts of hindsight, the it XX millions more benefit your That and For we cash it half. trajectory. outflows with interest change cash example, -- that in gone said prior first have in lower higher of will half. the XXX some in what to with contracts that kind Similarly, said, year, plan half our

half, Good question focused in right, the with number. first items adjust timing that and good have require for and sight line that. naturally of to second of on X get I half, growth, does kind I on you're the So just these in very it. if between half, we're a higher the X or first But are we XX second it X comfortably XX

business about little as Great. little question. cyclical maybe business what be Stephanie, it the then in to of or the Banking processing and that is follow-on of percent us Okay. a spending just transaction-based Maybe bit And more think Tien-Tsin's U.S.? you the overall? more remind How bit think do we about slowing a could card nature in

Yes. was this. I John, for someone me to waiting ask

card business debit of remind I'll of majority that business has a just around A So that really everybody transactions. related it. is Banking payments inside

volatility, you in when everyday So typically, of that's think spend spend. consumer insulated about terms

down. benefit price on way the we of the get inflation up on transactions, also We on don't so or way the

processing debit just our the broadly, I that. protected business which market. say like And against is we're -- credit, is So from smaller, would trending

in first the the July a quarter in little a and then little lighter. stronger bit quarter is second Lighter bit. So

across all not to that just we're consumer with even spend trends But exposed of FIS. that,

And the consumer that's one what business even the the when in on business and all think that's not our with we about Banking baked way -- looks transactions now in consumer like, other, of having impact terms guidance, or Worldpay really down just slightly, with feel good And all you coming about this spend outlook. out. the so safety separating

from our the One with next moment and of Dave come that line Baird. will Koning for question,

really XXXX good Is And for a job. since QX? good first part strength think, Markets, for reason quarter. the -- but so. margin Nice strongest growth had, guess, the growth, question, Capital really or Ongoing I my QX the in in good revenue I guide sequentially of a recurring nonrecurring that in and

Yes.

start James and jump can I think in. I'll maybe

obviously in helps second the as we Capital the think quarter, I the nonrecurring revenue of which and have growth contribution benefit in strong a margins the terms both there. look at did they Markets,

XXXX. terms I first second think as half, in the out of look half you over

contributing revenue, to feel little that increase of add. James, recurring We of we the nonrecurring good continue terms are about else an bit I have little a you to if revenue. don't and you the seeing pieces bit are anything know, to a in want

on you year The growth And Capital in services general, at could down was last stabilized. in it think accelerated. I prepared, professional Markets look the quarters. as we most in that has Well, said

X% a like from the buoyancy in what went to out what good plus good international. in It call us thing. and particularly seeing X% that's pretty good we're driver. seeing a gives is QX, licenses, think, trend one are confidence I pretty That's, then And of to in the that's different to kind we visibility So that. negative

I $XXX that be million, kind in was going I think, million baseline to lumpy like of the And QX follow-up, that? million Worldpay to in is and Or something kind in and QX. quarters? the that item Is is one-off, my future a of like $XXX contribution to think of there guess something little was in QX $XXX you're something guiding the like line

Yes. And add and in. I'll again start James let

and EMI as bit all organization, lumpy add take a they think stand expecting as with see be down we're their would TFAs. contribution, Worldpay I organization the the up their little they what into the people they is to

TSAs that. yet. But really get of So they -- as to take I XXXX, think I the systems obviously don't the up standing We outperforming the do normalized back and ready $XXX cetera. with quite et half them they give know down a is really and that about over us, they which adding to feel the the people confident take million run we could forecast they're gave call number to us,

in costs really investments the they up. business So stand it's as making they're those

the you got is provide detail. the now. investments Stephanie future some us. don't costs But -- I'd business. right give the to have drive we think I only thing And rely select on in forecast level they've standup the making right, they they of add intense Yes. is to We to growth

very very full confident doing So a forecast, in we all and the we're projections it's think year today. doable we're

and One from the KBW. moment for question, come Govil that our will next line with Vasu of

the more we the high-level then consumer spend, wanted business And do guidelines the expenses slow that potential market. balance to were to FIS piece. is But if look slowdown? prior I you the given just sort sensitivity for pay to know world us the the to think on how to investments the spend, up views if macro on any to could any more about give like see contribution, Stephanie, you question same out the given EMI question in defensive about concerns macro than start just might of I extent called is business follow how exposed they versus to that, the some on down? Worldpay

it's transactions. not spend material think core revenue FIS and impact overall of how on it down mean much because terms -- I the up points of or Yes. of point money is revenue if Payments make comes of really even a I couple from -- thinking pieces point consumer not quarter, We the We in sits just the to impactful that about other of do over the business. a terms or in as today. transactions a digital go see broadly the don't and

thinking you're don't. we business from -- in the consumer they're spend a We banking. about big payments don't if and spend, impact consumer just have So really

and go you and And even think was merchant almost if I strip consumer Markets still grew revenue Capital X%. back look that see during you in X, out, even in you'll those about you spend businesses XXXX at those at time where revenue periods,

a give just bunch of that. around confidence to So you

say, the I seeing -- mean, I EBITDA think comment spend. think even that They're terms The I EMI, consumer of business. the doing But what Worldpay can't bringing well. guys you they're growth clearly obviously quarter of by in what first I the and I revenue they're Worldpay I because would the terms better know business impacted execution in effectively. you're more and the into is operating business the that revenue second in posting operational they're of is think the

comment operational up the think go -- I sure you and and taking years, spend, the what on they're of Worldpay what the at think the to and pleased respect with on next business driving business stand and over going I the execution that. ready X and focused to X they're or go share. the look to focused But remember, making into on. and can to And consumer team I'm there they Worldpay over really market they're what with views back revenue do historical we're happened not

would first doing think their quarter I a on that and revenue that. say good job they're second

And you, a the for to EBITDA I or but M&A dissynergy did just in you give any know missed it, the And quarter? either if us for the James. dissynergy just expectations I and the on quick growth rates change don't then Great. follow-up excluding revenue year?

said Markets impact the I just The quarter. half. we of missed Well, has Banking on basis sorry, second we I'm Basically, Capital points first. the in an X -- said business has the concentrating XXX that -- contribution. yes,

So almost a level, it's total on a wash.

XX XX [indiscernible] round or point. doesn't points up contribution, a of to think basis it even I net so

your question The second part of was?

either year? Just expectations dissynergy any or the for change the on EBITDA to revenue

No, of line any in It's with expectations. materiality. nothing

will with the of Morgan One from our moment line come question. for And that Stanley. Faucette next Jamed

understand Great. things of want A did a I that been to lot but are of asked, questions couple my happening. have

looks First, do of what's acceleration like an we that? are services can you And pick in the what help how fourth you're Professional Services second driving up? and think quarter? about expecting expected Like the us half understand to in what durability

we the if That driven with really was trends in wins that take high of and the typically Professional of so to we're professional happy in converting. services back had terms implementation. I'm you're the along of what down. stepped Yes, of -- last services, lack look half at you that goes by new levels year

by or about year, as professional payments. of and new and you broadly, think grow-over, tied this the look it's platform. services So you stabilized have at implementations, half into coming our it's whether then the it's new as sales be the it's first stabilized we it really this core an And I but continuing think number into wins year back to the going digital easier revenue, or of to driven half

or rates? kind OpEx have normalizing there then and been at of taken expense flight? cost on in are projects and any run we're action Got Or so of actions, anything majority that the left it. And savings still has

on rolling actually signed and -- TSAs a XX medium-term and the and business think the savings coming seen gave we pressure guidance annual will I off year. facing basically be when that No, But on with XXX what reflecting that that margins. gives we're over to the of up success Future said we've we you've guidance, the for Forward, XXX months, us future bps

bit structures the do post this months. second that of in while is we a the performance, TSAs with Because of corporate Worldpay. resize presume runway it $XX half of we XX expense may sale a has we what the should in the of tail current billion line off hope year, now probably to off, company need more to have you rolling little So a

So of we forward. lot initiatives do cost looking have a

sources favorable of highlight on new customer improve of was functions to to service GenAI items the revenue. the apply but did call drive the do automation and the One of all we company drive and how across also costs, we in

in And of ahead long XX we active terms a months of eliminate. working summary, program. forward. TSAs started curve this, the think reduction in initiatives probably we actually I on have we've going have already runway, the cost have we're So cost fairly we on probably because identifying And an to

that final the time Suchoski do Autonomous Research. question, with have of line for we And come and will Ken one from

I wanted to outlook. $X.X including ask year-to-date, company XQ. billion repurchase about $X.X the in did $X billion The billion

your end talk on you're we that for you called actually track pace $X about like to well in we Maybe billion that target just to of could year. billion hit And that the out? above $X So up XQ? saw full the appetite it your buyback seems target continue

No.

the that leaves you will be think so year, should the quarter. to of remainder $X.X -- for skew there million I assume the fourth a

this X/X, The being repatriate we the in could $X to reason And repatriation prior I simplistically hit expect X/X. the you calls billion, have of is, fourth say, to that think internationally. quarter. we on some we So cash one said the it

get But sooner, do now, fourth sooner. can kind we extent skew the we'll a quarter. to right in the it So cash to of have we

$X.XX to maybe to know That's you just guide. ask smaller my the business, what's then really the helpful. about it to it's I wanted EPS a EMI as added raise I Worldpay. contribution to you allowing but follow-up, And of related Great. think Okay. part the Worldpay? I said

X% if I mid-single EBITDA numbers year-over-year, but digits. have I right, think down Worldpay grew was think revenue the I

great. thoughts EMI contribution be on increasing how that is would any So

equal I Yes. beat future then We weeks refinancing that it looking look tell is at coming but and back, from is kind you forecast. versus some differently. EBITDA and EBITDA. from savings. the couple -- There that locked We're in coming amount and interest And expense. an And prior of some a of can equally our delivered is is

on they're as doing I So say, the quite margins actually well, would well.

So it's revenue gain. not a just

in the of [indiscernible] happy, So and case improvement we're Worldpay. good very it's quality in

delivering a for second and did us as the in also they for refinancing think quarter EMI nice that I them is some well.

Thank This you for today's concludes all participating. program.

disconnect. You now may