Fidelity National Information Services (FIS) 4 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the FIS Third 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. Please go ahead, sir.

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

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

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

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

to And now turn Stephanie. the over I'll call

the our for partnerships, cycle. life and Thank with strategic quarter across across morning. of targets, success George, broad-based financial of joining strong securing position number strengthening outperformance thank you, enterprise you, FIS the and momentum everyone, sales results this a us delivered another leading against money our

are As shareholder our strategy our on to executing greater we value. demonstrates, performance drive third quarter

operational and highlights share you. me Let results financial key some with

growth. our EBITDA acceleration third margin both quarter, segments outlook, margin posting in in of X% recurring by fueled grew exceeded the a revenue expansion. operating year-over-year with XX.X% strong Adjusted revenue Adjusted

cross-sell also enterprise across the over to on with sales activity focus driving up continue XX% recurring year-to-date. high-quality We

quarter across shareholders on of third both returned $XXX of dividends. basis. capital a of to XX% And EPS and normalized in Adjusted million we increased year-over-year $X.XX the total a buybacks

also progress closed a acquisition in small we space, make our the against goals. recently digital as We M&A Dragonfly Technologies

disciplined Our performance to us once outlook and strong allow operational capital again for our raise XXXX. allocation

Slide quarter and through momentum execution entire Within X. strong of digital over across saw continued third demand money we banking the the solid half The money to turning solutions. year with life continue Now the we rest, the across at to see sales core cycle. first

banking, XXXX. we core signed than of already core the X all did we've through first In more quarters of in engagements XXXX

Horizon And signed continues the During with deals across IBS, our X Modern Banking the platforms: of all we Platform. core pipeline our bank space. quarter, strength and new opportunities community in core of expand to

Dragonfly sales Dragonfly. to see financial regional forward institutions, Our including business of largest accelerating further with year-over-year. nearly for our Digital complements significant which doubling digital have momentum of across already portfolio, One momentum some recent banks our we continues digital expanding our acquisition We capitalizing relationships. new sales the to this on offerings look with large

combating the to attractive a fraud not of of including us. a opportunities number complex an and large, provides customers, banks full cross-sell liquidity, suite for company payments. creating with core, services commercial meet managing using solutions The also FIS handling Dragonfly of currently needs banks

premium solutions, marquee a partnerships partners. in offerings, new had differentiated new meaningfully key across ecosystem money our quarter sectors, several We of technology leading retailers including and signed payment particularly payback financial as Within our loyalty number our strong motion, we institutions. with a companies, sales expanded

companies ability underscores FIS' market-leading financial to to world. ability unique partner to with the technology unlock Our these

continued partnership We next-generation innovation, AI product risk treasury continue solid to and across in soon-to-launch execute solutions companies. treasury risk sales with market-leading and with and including management

we're double-digit growth momentum executing launched across continue strongly are to In Across all summary, enterprise. vectors sales see across and storefront, recently commercial trading digital money strong our the growth new we we very seeing at lending. and work, continued in

Slide X. to turning Now

client several a secured of money we signed number discussed, with marquee rest. high-profile wins the new As at and quarter. partnerships Beginning during

with with leading mutual see below our a $XX traction We will of core. migrating continue a win assets in billion competitive he be IBS banks bank, to to [indiscernible]

Additionally, with number a sales Banking in of another agreement region engagements. Digital license new had the Platform. with for commercial global a we a APAC signed leading strong bank Modern quarter

work capabilities EverBank, is customer, flywheel our opting this Digital both in $XX bank that leading billion and a new for growing Banking at with EverBank, discuss example I our example with is is solutions will Southeast-based relationship Solutions solution. of expanded lending past nationwide quarter. deposit a the One shortly, across segments assets as a Markets cross-sell opted our bank Capital with for One and over both as

Turning in money to motion.

them leading with regional Payback Our offering had bank as with to customer loyalty quarter we an engagements their leveraging the number a our excited a platform, offering. Payback Premium proposition. selected a it leading has selected Bank, to wide has provide in end-to-end into value FIS Commerce loyalty Midwest, a of standout FIS spectrum entered of industries. across help new differentiate Bank Premium management We're loyalty including Commerce companies

future, to iPhone with users with able Apple purchases in will across also and for and working eligible rewards online participating additional FIS. Pay We're redeem on iPad Apple apps be to payment Pay bring checking issuers to with users. the Pay Apple options U.S. Apple In out

enterprise the continue we with to Capital relationship In resonate renewed risk suite solutions Africa's expanded and In exposure. manage our the risk FIS' treasury largest our financial that globally. provider risk services of Markets, South on quarter, one to and relies

continue solutions. demand at for lending strong to we money see commercial our work, Within

EverBank, relationship earlier, commercial expanding their across origination client, a bank. solutions FIS for loan mentioned needs, banking our I selected As the

and financial solutions Capital Banking commercial our loan proposition And similarly, One most solutions. large of the clients across FIS, the segments. institution demonstrates servicing Markets opted This unique [indiscernible] Bank, U.S.-based Capital a for Markets and client, banking complex servicing both compliance and value

journals, the by TIME has banking prestigious pleased platforms recognized leader Banking one that including also Magazine. advisory American to its naming Modern of industry as best number expert companies a Also, IDC from report. accolades core recent received FIS our I'm in digital solutions report a firms as of North world's once again Platform in leading

In inaugural in awards ] leadership our a across money [ AI technology leading Research, the adoption FIS cycle. Charters reaffirm These recognizing highlighting its the XX firm, industry. risk AI report, research in financial position life

FIS and Nicole James, Gibson Kourtney Dragonfly to hard newest X also turn to welcome before Board. our of over our colleagues want to all team. thank their want the And I at work all I here and colleagues our to new it welcome the of to for Anasenes board members, I

James? with that, And

Stephanie, and you, morning. Thank good

full We quarter performance XXXX outlook once again as pleased exceeded in our are very with financial raised the our our and projection. year third we

across Adjusted in XX.X% our by year in margin expansion basis. normalized revenue XX% Adjusted with quarter margin at the in expectations an by a operating year-over-year driven on revenue a expenses. X% segments, was steady compared exceeded the acceleration quarter, offset XX% up at in increasing EPS and tough growth was Adjusted EBITDA $X.XX growth. both recurring prior to corporate comparison the

within adjusted segment. earnings adjusted EPS and of had reducing solutions Banking some primarily reflecting the our we EPS by our $X.XX. statements, reported revenue in increase cost made to These business described an immaterial XXXX in revisions XXXX an by our noncash financial $X.XX adjustments the net As release, in previously output impact,

each $X.XX EPS X first For decreased XXXX, by our the adjusted in of quarters.

flow Free by these impacted revisions. was cash not

no our We on and has of the resolved financial have and confident in been revised that impact set provided issue we is there a full statements going earnings are business forward. materials, the

In raising our fact, outlook. we are full year

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

Free $XXX of in by conversion XX%. increase impacted cash in cash capital quarter. flow rate was with to million Cash expenditures the an X% was a conversion

for to X% full of and revenue to We increased now CapEx expect our growth year. be have investments the closer

higher commitments and our all now growth conversion free for cash We XXXX the approximately term. year. expect over the return the medium Given of flow remain XX% meeting on investments, capital for we of confident

Turning in Other at tough came Slide recurring year. Adjusted with XX. accelerating X%, X% to growth of outlook. on declined related of comparison higher reflecting our results growth prior expectations. line a our revenue XX%, in now was end X% revenue revenue pandemic the revenue in our segment to the nonrecurring revenue accelerated to with X%. relief to revenue Banking Recurring

XX% and reflecting services second half expanded XX with Lastly, operating and around prior in stabilization points, our line professional margin Adjusted initiatives cost-saving EBITDA acceleration. leverage. commentary basis revenue increased year-over-year,

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

professional Other with nonrecurring adjusted the X%, increased with in revenue grew sales, acquisitions, revenue XX% quarter. increased and X%. services strength Excluding consistent second license

Adjusted XX to leverage EBITDA we full prior points, messaging, expect Consistent expansion continue operating with expanded margin across favorable margin and segments. revenue year reflecting basis both mix.

XX. Turning year Slide outlook now on full to our

and quarter of the margin range low confidence to fourth our reflecting We of performance of the outlook. by and increasing EBITDA reflect end end the EBITDA margin in XX.X%, basis year-over-year year-to-date low million XX are range expansion an leads revenue our of points. to This our by $XX million approximately $XX

This reflecting by $X.XX year driven is increase $X.XX $X.XX, by below-the-line of outperformance continued are to XX%. outlook We raising normalized and our EPS favorability full to growth items. to in XX% $X.XX operational to

Slide Turning XX. now to

a low revenue range Markets achieving of end in increase revenue our $XX X.X% the target. of end the to growth high to X% Our Capital the confidence million reflects

in midpoint to revenue for base XXXX. after Banking, higher closer coming we the the to adjusting For the range anticipate in lower of

third of increased remain outperformance are we quarter. year achieving raising our the EBITDA full range. low in the We range, reflecting EBITDA adjusted our And our confident in end

interest EPS level of We across are primarily and improvements favorability our driven reflects levels outperformance Worldpay lower our outstanding, given The of meaningfully slower-than-anticipated expense M&A a increasing expense interest and debt outlook operational by activity. EMI.

With pipeline deals to that robust, acquisition said, additional the future. expect we and near remains in close our

EMI by primarily reflecting increases. $XXX operating a $XXX We planned expense increasing delay again once our to are million to outlook $XX million, in million

In year XX% year. at to of are $X.XX beginning summary, EPS to the raising $X.XX, the a our we full the from we outlook adjusted provided increase

Slide up on wrap XX. now Let's

year. basis expansion have the We recurring another revenue of growth points XX quarter, margin for strong and delivered our projecting accelerating

once share our are year. returned again the we repurchase outlook. meet our and to $X are billion raising commitment on track XXXX $XXX to million EPS And We shareholders for of

returns future. Lastly, to strong confident over delivering we foreseeable the are our in shareholders

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

from [Operator Instructions] line first Ramsey question with Barclays. will of And the come our El-Assal

QX, easier. gets we I'm Markets comparison The Can just the takes the to help year-over-year to your implied implied get through expectations guide. into growth in Capital and puts trying us how you for in QX? back think

Yes.

at look looking it, it a business took we as QX. strong more was, a full X% on remarks, prepared And recently, recognize the out, then the to little the conservative that on side. said we year we call As had X.X% our a guide

verbal the end in why basically commentary, I that's of X%. expect said high So to the X.X% the to we on be

do the in a you it's quarter. kind will adjusted both prior the rate, And total in And as businesses, if pretty that in of relatively growth in both and revenue the -- will the recall you implied we quarter. recurring a bag reminder, in growth strong result year had strong in a that revenue adjusted weak because result a

to X, was X%. Capital was think company I up close Markets total The and

this we're X% on confident Capital touching number So Markets year. very the on very, full

it. Got

for more me. one And Okay.

the out quarter from the acquisition, here you you're close the fourth in expecting deal? On on comment year that Dragonfly as can the contribution we

really deal basically is it's closing speak. we because the pretty Yes, small as

cost principally at XX the initial in The $XX in number revenue that it's least we is of on This just is dilutive revenue. less strategic. months company think synergy general, acquisition, but in opportunity, on margins. revenue quarter. acquisition the and highly is But see -- strong probably great the and both I a than million to side,

from the that [Operator JPMorgan. of Tien-Tsin Instructions] And line will come Huang with

higher just going really changes on fourth nonrecurring segments? I specifically? And any across investments both looks the in general. into the quarter Any color recurring, to in other just visibility ask CapEx it wanted And is only change. that on like the

maybe and start mean I terms Tien-Tsin, to I'll Markets. see we Banking continue very in stable trends across trends. Capital of economic

to consistent As fourth of guide, talked largest their areas. Technology in very about, our spend one spend. Banks but see confidence to James continues continue the be generally trend. quarter

overly to that exposed not consumer to and spend, continues We're stable. be

as concern fourth turn to question. and us we quarter, nothing maybe second So half about for the I'll James over causing it of think the then your

strong on is I'll Yes. And No, we remarks, see saw to points. the now XX any there's outlook basis fourth well, add year quarter. as that total a our preprepared on we see from margin particular expansion for you margins -- margins the don't concern. as just in

strong leverage. So operating from we're and programs benefits our seeing cost

here working decisions growth. On we invest to One capital, stimulate and drivers we the big continue months. business yes, of over were revenue we -- couple as to X through took last in is it select to drive the

But we these a XX%, list. some dramatically of And then exorbitant capital high who have owned facing XX%, there's inflation another XX%. levels are companies their factor of been programs. And pretty ramping price us some private And equity. up increases, suppliers technology facing we're our that essentially, across these are by in they're position where have

finish the it. the you it's sure through put working But on some can this, and year. We're capital action take will over against pressure our be of spend we

all conversion. the this within incredibly I is manageable want But to flow do cash emphasize,

forward year, comfortable we're look fairly cash next As on we into conversion.

levels. remain any shareholders. want we of very return the I very, guide Capital just that. on confident we're gave emphasize current past will capital probably in But concerning to at to

So this temporary. think of as

this Some the have are think coming And than months. prices manage got through ratcheted over suppliers up we acceptable. we would just to higher

Okay. No, very clear.

longer-term accounting driving baseline, new And the quickly, the revision given outlook prior should we adjustments any what's the Just consider as period well? again? to

Yes. was of -- and I immaterial Good call. all, first I relatively would -- some say question. you we the gave the of on numbers it's This

thing. $X.XX it, X was to quarters this immaterial If of you year. the think That's EPS. about pretty in first the of each it first was It

an have didn't cash. Two on is impact it

which was basically noncash worked it adjustment. this. was in print about the completely small we've production it -- essentially solutions card and business, small issue, through is We've So a was mail. a resolved a And around output which

very, very a So business. small

calling good future confidence seen had And final is we then And in the from EPS, you've the the and in as future no on beat impact we're full quarter EBITDA. solid comment have year up it operations. has a well. on And we

is very encouraged we're this and results. much very behind current us, So business by

Dan that Instructions] will of line Dolev And [Operator with the come from Mizuho.

you're types? versus Quick growth quarter. on the organically again. some in question expected us we're that Can you incumbent. color you're doing results in hearing maybe how down Great tracking some the really It on like chatter to fourth versus give customer looks And is market accelerate well Banking. the different

you be if can that, So on that maybe Stephanie, would elaborate great.

comments. Appreciate your Yes. Thanks, Dan.

on as So James Banking. mentioned, confident we feel

As last year off a from some higher we're driving comp you fairly coming know, growth. when easy

core are We in pleased we're in and progress with making digital the terms of competitively around particular.

FI We we As you and then the community billion mark. $X large go the know, really span don't the market bank. below

focusing Banking with X our think Platform, our cores all and We we were IBS pleased sweet Modern where of spot in we're So Horizon. selling strategic cores: is.

that. that base been I've to as obviously fortify chair the We've with into after we a made go we the successful push big And banks existing ensure our customer come that we've win. really we then can and think

keep competitive very heads to down continuing there. our So be and

the know, have we we the across think suite board. you product best-in-class As

leverage of as do, we're distribution about well work scale the we'll as we've the good but Still feel thus continue to are where we channel focus, good and feeling to that and so about really the going. progress And made far. have

[Operator that And line with Bank of Jason come the America. Instructions] from of Kupferberg will

on start to wanted the Banking segment. I

middle to full part guidance said you the year range. expect of I to in lower you be think the

had the I talked for last doing know about X% growth you least So quarter Banking. fourth quarter, in at

months? you're put maybe the changed point and maybe clarify expect you just Banking do last now around ticking So X in a QX bit finer can you on a margin little the what down in if and if for what there

ask maybe Stephanie then weigh I'll to in. And

we we're just company guide, the be guide, and Banking we're total the to looked at As comfortable confirming that. clear, very with

unusual, because up were this looking kind doing conservative Banking, quarter. We forecast And cleanup explain. We things, of to hard for Capital is called Markets had overly the and some Markets. the of into fourth we was Capital X

we There revision, impact. slight last increased year. revenue did was When revenue a the accounting the it

growth call the basis our fourth by points a it, number. to an So -- XX this XX points. down overall has quarter And impact, higher expectation pulled XX lapping you're basis

look So back guide, base that said let's just the at full conservative, because on as us. year pull we the it actually we be changed to

call noncomparability XX that's, it, XX to bps. a So of adjustment

a you've next of physical the year. The conversions, other signed The -- the half the piece We've contract. first seen lot of was of on couple we've of slipped not we're traction conversion, into of We a signings. bunch just signed getting a seen recently. a conversion has lot physical just new activity

The here on shift, just contracts impact this signed are bank. business usual. getting purely out no -- the They're So is programmed as it's work it's a the there. and in actually

adjustment of would correcting revision, Banking other and housekeeping I the as is one is executions. the of think So just to accounting One guide some this housekeeping. this timing around

is Yes. add The timing, -- requested. would the client only on thing I the it's

we available the do So into half the the you go. ready client to next to when requested And and pushing have they're are closer quite so as get know, and ready being of end as freezes, go. and ready, more It's to first year, resources we people they so year. of weren't the

in segue my you year, know growing X.X Investor good talked earlier about X.X market. It's next to question. X.X the Day actually cap Banking Okay. XXXX second X.X to this on and at year I and then a to

terms to I lower be more mean little end? just for of XXXX. that you the So we bit a tune the versus the factors higher imply in XXXX, land both we will what will of should start models as at acceleration there considering maybe that be versus end

Yes.

would guide that see XXXX. say but Day, But we're is in the we respect second we not made we to is to give you can is quite anything what Banking Markets commitments with in Solutions Investor ready think half. Capital accelerating. a the Jason, accelerating So changed at I haven't

So XXXX. those in to first back good data be are to We'll ready you early not yet points, but call quarter.

would half a Yes. there's thing versus second recurring And at is And only the half quite Jason, add maybe for in I an both look take first the adjusted Banking. revenue. the on in and call, acceleration,

very full on growth. comfortable growth we we'll February in second drivers back with And very out business. we're the you early the look guys And with But then think we to half would I year as Banking guide. feel get the comfortable

that And [Operator Wolfe Darrin line Instructions] Research. will from with Peller come the of

on minute. touch M&A a quickly for to Just

you And you about doing for about I had stuff capital talked billion didn't done, you $X on think be shareholders. the year. returning to get if focused would

so around to And save thoughts small give you'd the having next maybe quick done a so relatively what far, doing us of amount just for you quarters foresee if expected on update it that looking then maybe to add really capital even versus the remind on couple buybacks And of be be strategy to what business? share repurchase? can us you're just or the for

Darrin. Yes. Thanks,

start So maybe I'll strategy. with

strategy think commercial growth so at I the verticals, advance tuck-in looking acquisitions payments, et is digital lending, our that [indiscernible]. cetera, small consistent. treasury, We're can

higher So growth, for the higher margin that us. have areas

across and capital. looking look that really The activities we returns fair. focused robust, in We're So universe. return are think on terms tuck-in of invested be and at at universe those valuations we continues to fairly as

in and in digital we've I'm this very the You're excited right, been light to with we've Dragonfly space acquisition. fairly revenue. right That's excited year we'll the line accretive about that about spend million $XXX been being about looking. as

that of be looking would will do to be not about if repurchase. to the if return XXXX form XXXX, share Obviously, synergies successfully I it put X can't the year more to margin on think sheet as to we'll more wouldn't do and we'll talk in in the on through we the back the year that. billion, first happy mentioned, we end spend $X But we to [indiscernible] be like. you in but them, the find you cash look -- it keep in the but M&A these this dilutive our James As transaction into balance we of we or we be

All really helpful, Stephanie. right. That's

but in there's strength acceleration core know some the the Banking again, recurring the reiterate I the -- like by growth, trends were sound easy, to do the seen being Just on comps side.

can X of rank us So the side accelerated having a are the top little on you recurring that half giving probably Banking second you first drivers just really in revenue the confidence into bit? half the order the in sort and remind

think it, terms as of generally, well I thinking think about, a recurring, we've about issuer And Day driven about On you as as organic all Banking about of in we've capabilities in Investor is Yes. across you talked X% that transactions to growth talked by and range. accounts. as in in debit our

net and And cores look to new we new then as new you up. would expect sales, that add to sales, add go

half the we as historically, better more as starts So some a see you bit know you put a and of new and equation of nonrecurring. than headwind us out I that can over had us having on sales half second asked to we grow for first some we trends. than of over nonrecurring the about work recurring, but grow we

the And from of with Instructions] Davis that Raymond will John come [Operator James. line

to to CapEx. just I circle want back

I going X% near about this more The is couple X% think term? next think to you the should Is of years? in medium-term that we how X%. CapEx value Or year. said

Yes.

pretty we're think of competitor you is is which run the if X%, -- our set that closer to probably think about X%, the still where pretty it much rate business X%, term, longer is confident I the sitting.

We're plan. entering our strategy. of And -- to we're of spending pressure driven by one this aggressive more There probably that's we're Most getting was as some by temporary, It with business. providers digital probably in investments. most said, are our strategic of year, the technology in just general very it the there. might in investments we're positions be, scale-up consistent spend plus lot a category. continuing on is spending the And some I the

versus management. the factors now and got money a budgeted Again, drive you more And spend growth we significant for cards that's like aggressively. that, increase the -- as it's

it spending right -- is in it the we're places. So

we but a expect don't we giving like pressure now, is to thing as it That we months. want that to XX X% into this of XX-month XX through get work guidance said, kind being

should If reason there's be you higher we no trending look no [indiscernible], why than out reason. longer,

we'll So this. to work through have

As weeks X But we up called supplier came in the abundance some just pressure an short-term I with the give said, to outlook. of you we'll a last caution CapEx and longer the this for X of guidance.

thing what one or And saying of of repurchase. previously cash comfortable a more I levers shareholders, So capital of I'm we on that reaffirm conversion through have we sight one pulled. good dividends on, were we want line return traditionally through haven't to to that's either lot piece. that share we have to

our have And leverage we're I'm balance we That's is ample not we're sheet. capacity X.Xx. saw, and you on [indiscernible]. at target doing And acquisitions, because sure stated

So we large degrees comfort of here. have

So I hope helps. that

a Pillar just international X. recently And lot That's tax of then Yes. chatter changes helpful. with on there's

guys Any tax guiding tax you with changes? guys? the step to rate are You obviously to to out call impact down Anything next year. for

for next the we to legislation, no absolutely of XX guide we years. the XX risk current gave to on Based couple that see No.

We or are have on all them. place the actively working elements in

is So and are potential strong see under industries but the something well our the that -- entire horizon impact the risk in specific in visibility. circumstances only all would U.S., control on we

of KBW. that come Instructions] And Govil line the Vasu [Operator will from with

on looking banks any and could be with like that's I there's if up larger see. curious below more signing first a seem banks Maybe picking with $XX banks. pipeline catalyst to if with really discussions the and momentum what horizon Core larger Stephanie. great and one are there was drive there's your you that think billion, to for just

Yes. Thanks, Vasu.

assets success focused core, core, banks really $XX X different is is So core. it's and It's been IBS One our things. marquee a I having think lot there's on with we've in which billion winning of a a above.

respect it about for specialization with talked wins has today of We commercial it to couple customers. a because

and obviously you capabilities retail needed. have those bank, a a has more commercial banking you have than become as it that's So you bigger, bank, commercial just

that to with. that strategic So core for we very win a continues us be

be you large and the have above Modern continues get platform. into we get Platform. our operating you and regional, as think very regional to I Banking super that That above, a

transactions pretty of it across I'm has largest amount sure going bank it. the account

super several focused very They're are implementation of all different with parts with of offering. We large regionals. in in stages the market various

Platform, a Modern Pac demand for as heard lot us, signed outside seeing We're And a then the pretty customer Banking region. a MBP the you we large Asia in U.S. of

continue focus there to we so and growth there. drive will And

where with good core. we are feeling So about

Again, to the conversions tend a running, but core in lot up you and you pillars really of work and about take terms once get getting these know, there. and a all surround. them strategic of the bit you do, to as good And of cores our time feel core, get the

feeling about good the we're making. So progress

a income on follow-up the just And continues quick outperform. to The equity Worldpay. there

outer years the for the outperformance. that then X.X outlook Just X.X much growth still what's driving any is but at color think algorithm right we in on as And look about? the us is base XXXX, to to higher for

one, talk The first James out. about I'll let then the and

can of So underpinning in than had as kind Charles far results I stronger Drucker as direction it of growth and the under from think of team separating it. revenue that being thesis see the we is Worldpay, our performing you GTCR better the terms

outperformance just they're revenue positive problems, better any in growth, they because in forecast, bit time. a many particular see also to in how hire but of looking continue as they their We not any can than have their frankly, realistic but reality people to to there's expected, as quite operations point you stand as they're slower up going

throughout around also as as successfully which debt, well benefits of the lot a year for we've their is them. delivering seen refinanced they that EMI So the some savings nice

and them say, the to benefit is some the they need just up. of I a, or what a portion been benefit So of up it's necessarily standing would everything large stand not hiring

about coming I'll turn As and over far James. growth into next rate, year it as the to thinking

too to hypothesis it's think start Okay. this. far on No, early I developing

if look you said, the of beginning revenue, it some from year, of back Stephanie beats they OpEx. it to large As the of had EBITDA, from some across

a -- a coming benefits was expense. OpEx of setting large They was structure. It this up Some across benefits standalone off. across interest had

will me, to a might There into carry future. timing on this some So OpEx. the forward be of differences bunch

So we concerned X.X. to be reason X.X massively see no to about the

know, to Worldpay to compatriots. as this you And But long-term work have forecast got we with we've through our with agree them. the

basically they to the X.X% X.X%, So committed target.

And line Goldman Will come Sachs. the [Operator that will of with Instructions] Nance from

any Maybe Worldpay. and was off relates just I the as next cadence wondering dovetailing last had just particularly job with it question Nice on if to bit. year margin TSA that little a today. you thoughts

of the cost how any you from kind cadence spoken offsets is efficiency that? next take kind there should to you cadence perspective that year? But finding know might good anything about well of a kind Just feeling as considering thinking are actions be to we about of the associated you've that. of as offset that about I off rolling

No.

I that in XX And roll-offs. of pretty term. bps. the much I guide to would at the margin we end TSA direction the we we we're gave of for think travel the medium That think of at because said XX time, the was lower be

seeing at risk. anything any we're So places not this that

our full this seen for year bps. delivering guide year, you've we're as And from XX

to dissynergy. the it, got through which headwind, work we a TSA yes, So call is the,

the bps, say, savings activity is bps well XXX XX The large year. within also that to said well of -- would track probably on in a Remember, good are I cost that number. a was to so we have But program. on that ahead a on well, Day, Investor we news conversely, We're said lot we ongoing. XXX

cost very It needs not The are have to visibility is we control. Worldpay our ultimately we within on have that decision. TSAs take the programs. So -- no good

surprised talk aligned. [indiscernible], and relationship X There's news get by between the a parties. anything The everybody we we is strong working because good regularly, won't

orderly transition with manageable a the the no be surprises market on will this and overhead for side. So

maybe That's super more just And it. strategically. helpful. little a bit Got

markets. you're the so and MBP had recently business the You APAC the African heard very about love mentioned prepared win you South in you're remarks. where sale guys -- of most in in have would also that the across the chatter where and seeing hear international, international kind that excited We've to been what most momentum you some about just active in

Yes.

success of lot right, we're standpoint, an across and a you're Markets the from Capital business Banking. So international seeing

with across a and In products terms our of training Capital lot security, the risk treasury Europe even and Pac the to resonate Markets, of respect processing. Asia seeing

strong U.S. outside So products. for demand really those the really,

Banking, to the did respect win. announce with then MBP And we

We also payments. from see demand international strong

outside very better as area -- the push whereby we and to going we could there, the vice U.S. are see verticals you'll again, as possibly bring inside for us U.S. growth M&A, that a So look outside at to or the continue continue us that versa. U.S. see look healthy continue to at can we especially

there and very leading positive way So the feel Markets Capital seeing the us. the we're momentum team for about

[Operator of that with Instructions] from Chiodo Timothy will line come the And UBS.

also Great. acquisition talk little -- ahead highlighting the your mean basically with both get bank I want growth to serve. and a you've on of customers more the about M&A, really bank accounts that you that larger and been expectations transactions, the around seeing file, recent what bit benefit support more you that

you some to impactful that smaller to it's and also it's fees going a And your less literally maybe be minor customers the acquired. guys, are term but of receive you benefit, then

around your to general M&A was and impact in the hoping P&L. could I you So bank touch

to. Happy

So fairly smaller I more think say, bank is environment. would still been the the in I It's M&A active market, suppressed.

it's we other a space. last a from I banks than some standpoint, mean regulatory think with other to some respect getting the of large larger the I the with together put of challenge banks. saw in still activity year

be ton we're So a seeing the not larger honest. in to space,

that We're of a the win combining of customers We set focused is see around very where there. win again, activity We in when, that's continue smaller bank. lose space. with a it's to and bank has commercial terms smaller a in there we

but able commercial much being market retail value of the and That's serve both bank seeing upmarket. activity M&A further prop better a in lot just to of the have bank, terms down where generally much the being we than a

Yes. We welcome [indiscernible].

That's who market a are our net over in generally Because beneficiary. of be larger-sized We acquirer, a time. the position, to positive. of share get more market consolidation banks the tend benefit we

So it. we welcome

And Instructions] will with that of Baird. Koning [Operator line Dave from the come

out year? new macro you there about to pricing up from recurring but what different was pretty sequentially. sequentially, $XX coming years -- QX. it of Nice or of questions couple revenues just was answered I a signs? was look that flat one new this million of all, other Banking maybe was Was this at last maybe, job. And know first revenue, or The lot it, way Like a so

was -- you QX anything the into Maybe can Was that through there then go different? And in in will of this just QX that be elevated sequentials. because a little comes QX? out

on. then needs he see I to James think I'll add like if the take feels and broad-based

the you some that business I a think, across we to Dave, years, has if transaction look have it. seasonality processing

the If quarter. high revenue you fourth in last year, look recurring was

processing third where through. lot Again, This a that year, the in when went higher That's that is it's transaction through. going processing of transaction quarter. that's

push. have having when terms transaction pretty more by put but when cards basis, notion It going end of client transaction a year does they're on is it's seasonality that generally big the of out So and is the in the processing. consistent to processing its full it a driven

it's in -- seasonality Last This quarter. normalizes year, But the out. really quarter. think itself year, it third just it it's I was So fourth it's thing. overall, of in a more the

out did We X% when was the to then expect on And the we a say we year -- pointed in guide last strong that up, Yes. third would calls. We think, QX I the quarter. in to previous Banking. did fact of recurring this

year services much be year, number. strong a this lapping will in But you're So stronger lapping it this will lower professional weak we because nonrecurring a year-on-year have you're number. because

between you the recurring acceleration probably, out, you in of if though, take recurring I would all growth. between second it's seasonality. first one strong second first half there half, versus and roughly half confusing shifts growth know thing quarters point I half X XXX -- is basis I'm but The literally point a terms

is on first total half And Banking, than about adjusted second. in the similarly XXX lower bps

essentially next need the during XXXX in the we the accelerating accelerate would to at We So year. as guide. is hand. that off we the this see went year we that's year, job the And growth commitment through took

Got you. Yes. And just quick follow-up on interest expense.

QX I how quarter? about Is of is implied XXX about quarters as think XXXX to well, net a that just $XXX million. think interest about about expense the

this. We'll in we It's normalize making some on I'm on are M&A. fourth starting to the assumption the until to have not sure. because guide quarter wait

of tricky X interest So would expense we the this was too over of we plan that is probably that months out conservative. buy a most conservatively and the because bit acquisitions first little beats came every quarter

that essentially step-up fourth Fourth fact we do are in saving just not the assuming it's from we're right? in acquisition. already coming acquisitions, it's a but -- year-to-date, So an we didn't quarter, quarter, it's so every the

think true I a So don't it's run rate.

would to -- a for guide -- it be next So get this we a of February use as it I you would mislead year. and if into I you We'll told rate. give run when

Schmidt from the [Operator of Instructions] with Andrew And that come line will Citigroup.

go implementation just year? we the we've the a Can in back pipeline for It like sounds than better to Banking pipeline? next Can core about just years. that's you talk the prior tailwind seen

a I And for the there expansion talk you're could then seeing pipeline higher what that the bookings on pipeline supports number you separately, sales and know about -- mentioned XXXX? you of whether

Sure.

our 'XX in of how 'XX. filling goal. are in we Banking really yet terms our out comment think I up and all pipeline. I lays that core That's can't

conversions, Banking don't take because big might expect, in those. a fourth for you frozen period we we that quarter time on those quarter the As do And we tend all were window typically or to first core time. of

to would about next Banking wins, year of of but all populated the back the those being are in in expect think core you online as now. of them come primarily I in set XXXX, half this process So for

terms products of -- our and take our prepared of in to there's in in I continue marketplace core. Premium for there, Payback around as our sales product, continue then very to the to pipeline, demand our particularly In mentioned the lot addition the remarks loyalty, in feel good that digital a

So We, up. the on commercial digital still verticals in seeing and pipelines Markets those treasury obviously, the lending. side, on are Capital payments, in very focused those risk high-growth and

get So those excited very sales when fill up. pipelines we see

close They cycles. implementation and rates have differing differing

to those as we So as is. of you terms we'll good back think feel pipeline XXXX, but very be in the about more about where in laying

for does That today's conclude program. Thank participating. you. all Thank you

You may now disconnect.