EVO Payments (EVOP) 7 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Global Payments Second Quarter 2022 Earnings Conference Call. [Operator Instructions].

As a reminder, today's conference will be recorded. At this time, I would like to turn the conference over to your host, Senior Vice President, Investor Relations, Winnie Smith. Please go ahead.

to Second welcome Call. XXXX and morning, Global Quarter Payments' Conference Good

our earnings that the found of slides and Investor at this area Our the be accompany release call can Relations website www.globalpayments.com. on

the comments statements about, SEC, transaction like and undue our I'd These business statements results financial EVO our subject impact could conference reliance our you and of XX-K including during place risk of begin, We we between matters, to COVID-XX operations actual in risks, the and and uncertainties made forward-looking inherent are expected Payments. economic most to management statements Before by you recent set contain Certain conditions cause not filings. expectations. results proposed Global to other to factors future that on subsequent on Payments forth about remind other are differ some in caution the the among including statements. from factors, materially call and these today's operating with that and filings

during this call we date and call, to statements no as only obligation this them. undertake of update the speak Forward-looking

reflective several our We are will believe measures ongoing more to which be performance. we financial non-GAAP also referring of

an website. supplemental this and of section to financial morning the Relations as For on measure a full our our reconciliation the this measures call discussed Form available filed our most accordance SEC exhibit non-GAAP press the regulations, furnished our of release in with to X-K in GAAP comparable materials Investor please see

Whipple, Jeff CFO. President Senior and the Bready, and on Josh President and are call Cameron Vice CEO; me Joining Sloan, Executive COO;

I'll the Jeff. over Now turn call to

that milestones for a Global to building our worldwide our today. Whipple, today. payments history. a played Josh technology-enabled, call a has the partner years, most some us trusted business key He's welcome We through company guiding role senior significant Josh has leading the the of software-driven leader Winnie. who new in Payments been our is CFO, in X.X Thanks, in

also quarter in key second history expectations basis in on Paul XX Todd his terrific metrics the self-evident all and best incremental despite for has results the our Both the We currency-neutral years played in of and exceeded successful retirement. business. partnership delivered our his the of that the across years, over TSYS. thank best at We TSYS and Paul issuer he were wish and post X our Russian financial adjusted headwinds. divestiture Payments the our merchant our We merger segments a past critical the role Global

generated a multiple executing achieved a moat. levels. adding sequential basis business Importantly, record and partnership, as our improvement transactions align pipeline lead and strategy, at businesses deepening better our And to of with our points revenue exactly our remains our on these new extending results we we XXX it issuer our comparable key said basis, would, while competitive

faster-growth payment delighted acquire our addressable geographies; existing we're markets; announce our agreement software payments that and into enhancing significantly we've markets, entered to solutions. presence our in definitive worldwide; First, further scaling target BXB, our EVO integrated leadership expanding business-to-business, new Payments, in increasing augmenting and a in to

Spain and Specifically, Canada. with enhances of attractive existing and our as scale us Greece; presence and such Poland, including Chile markets, Germany, U.S. the new EVO course, in provides geographies and Mexico, in the a and U.K.,

ERP augmented integrations, we our For our with payable BXB significantly it including to largest BXB, of And software capabilities key adds which leading EVO our us future our and target segment substantially tremendous providing meaningfully of for as include and that and solutions. expanding offerings, acquisition strategy, newest pillar with to accounts MineralTree enterprise our successful many brings conference the complement markets fall. accounts receivable technology remains BXB last we At opportunities September, addressable investor a underpenetrated, fourth announced of last growth. partners the

centered said TSYS scale. need we globally positioned post and to we effectively compete as we footprint, world's leading virtual already the in commercial technologies our massive As BXB card companies technology to vast assets and largest have merger with noncard-based access market-leading solutions, the partnerships at card BXB This distribution a distribution and data analytics, and one globally on technology then, financial includes payroll rails. institutions, of the

and operating to MineralTree, Cameron that XX% but cloud later provides leading of approvals. business let complete in more is shareholder with of now for grew link. Our EVO members the EVO a lookout is acquisition Payments, am how breakeven us the offerings. EVO expressing on second Global of Global tremendous which to details BXB will creation me combining no go-to-market on and than the Payments. plan. value welcome with ahead team our missing EVO transaction to an I in accounts close believe subject regulatory provide receivable expected We We've business by last of to first now payable course corollary delighted XXXX, The to October at quarter SaaS start opportunity EBITDA quarter been provided accounts the that

global Second, has the a investing, of senior unsecured Payments thrilled billion committed in announce we convertible to $X.X are strategic form investment Global notes. in Silver leader Lake, the in technology

winner commitment in history. sustainability in amount payments position of us confidence long, will in join in investments and beneficiary and of of in their digital role strategy wisdom leading is and from largest are partner of expression successful model, Lake's long-term new the Lake the by humbled record an Payments Silver confidence outstanding over technology-driven Global Silver of their our of a track far digital companies, A the by further senior driver Board our has proof payments. in and distinctiveness our we and of of as distinguished Silver this payments As the ecosystem Lake as growth, innovation cycle. the leadership our Directors. This an as partnership the serves

keep. We company are that the of very proud we

Rev further with businesses while our margin and our billion growth sell to agreement and a reached consumer Worldwide $X Capital Searchlight Netspend's strategy our definitive portfolio organic simultaneously align to to we from characteristics. enhancing Third,

direct-to-consumer February, a is Netspend's base is customer favorable its overlap As we strategic set our the at limited between there in with attractive portfolio we traditional the said but profile, and solutions corporate review an time of clients. announced

As and team the this Netspend proud will our all positioned every that quarter. strong which delivered the growth part future accomplished our will ownership. confidence have in of Payments, mid-teens third assets business have normalized in retain Global second Solutions segment is valued BXB for of Netspend's expected, Issuer well included in with we new quarter as our we under and We're very be beginning members

our transaction cycle the end first important approvals. that transactions us earnings regulatory the for close margin and Merchant at Issuer completion sale, Solutions confidence revenue; our by conference roughly of of subject XXXX, quarter provides and XX% The including bright. investor indeed of The last future this in heightened Solutions, we We comprising with then Netspend Cameron? Post is XX%. provided revenue, represent adjusted assets, approximately raised guidance Netspend's to expect September. acquisition the of to will these of the with EVO net BXB

morning, good everyone. and Jeff, Thanks,

reach. company as integrated strategy, perfectly which with scale BXB operate. EVO unmatched in the strategy EVO overseas and in while and of global markets furthers The extensive already in payments our position North our reinforcing with technology-enabled overarching our provides our payment geographies aligns and payments acquisition enhancing America preeminent technology and distribution software our faster-growth solutions. expands greater Europe in we exposure transaction additional scale also significantly to Our

globally. EVO opportunity for of We at vertical company, value base software the and extensive solutions and than to distribute globally and more commerce to also well offerings, leading unique combined and software to leveraging by partner XX-plus customer solutions bring including targeted restaurant merchant and EVO software our vertical positioned product markets. to Today, a integration significant X,XXX portfolio unmatched million integrations payment As further provides suite see partners we avenues over additional point-of-sale our are our and over retail ISV our market deliver over locations relationships technology that combined as financial complement our to EVO's has markets. an institutions us X,XXX platforms enablement as distribution vertical uniquely our of X,XXX distinctive capabilities. across partners X.X

where to Europe, markets this EVO, we Spain Central later POS example, U.K., our with and For including international bringing the solutions are Vital year. already overlap we key

Additionally, capitalize we globally distinctive e-commerce our full capabilities and enterprise automation with proposition BXB customers requirements omnichannel over in significantly multinational EVO's be our across With EVO's of expand ability automation transact offerings. we customers. BXB and other in receivable provide accounts on augment XX to to value the our to countries BXB seamlessly able over its rounding positioned multinational existing platform will blending markets geographies. to of our solutions, and XXX unified presence capabilities, further payment out solutions and virtual and to payable uniquely commerce EVO's are existing physical software and physical accounts suite virtually, their

and Importantly, extensive necessary efficiency employers, its better spend of EVO critical the improve $XXX are market TAM EVO, platform, buyers in excess address of annually. of delivering suppliers integrations market the the PayFabric ERP array Microsoft, management through some in solutions environments us brings These to Oracle, integrations most frictionless SAP, BXB vast the and and and have gain widely with that a and including an to to proprietary positioning with to Sage. Acumatica Together the automation used costs process for of suppliers. business products unparalleled needs we buyers, share in us trillion

partnerships our Finally, Mexico, Czech which total, trends, and the are with globally. and deliver largest examples. creating Solutions number business scale and with through of in around the we has are particularly TSYS, our Since significant marquee Greece U.K., cloud-based globally EVO issuing in strong with financial transaction Virgin and geographies relationships our EVO growth including drive expands presence to merger demonstrated the cross-sell which and increases optimization can opportunities Putting XX EVO the the us existing solutions in scale countries Ireland, for also by of significantly have and institutions, with fundamentals. be marrying there to distribution our secular complementary U.S., achieved with including AWS. growth our that leading strategy to Issuer underlying Money and increases Spain leverages we acquisition our markets, and EVO's Republic, have have Europe, Caixa our and our opportunities collaboration In world is Poland, it Bank many in in additional new a XX capabilities, attractive of together, differentiated Chile; region. strong a acquiring all presence The highly delivered

to discussed this further business our aligning already, expect operations see expect streamlining run catalyzing support structures in million Merchant generate we revenue technology partnership, the least go-to-market substantial opportunities realizing strategies, we meaningful Further, primarily corporate Solutions years business at of infrastructure, synergies and efficiencies. to we growth from operational our and X scale also I've $XXX worldwide. transaction. duplicative within post eliminating prospects rate synergies EBITDA closing through enhance and the As cost Combined, of

of acquisition turn strategy the and most the the noted, solutions while EVO forward presents to its attractive to Jeff to Global to and Josh. EVO call worldwide. look value a our across As Payments. technology deliver to differentiated markets members advancing We With welcoming that, creation significant will customers payment further over team opportunity I

Thanks, Cameron.

with are We adverse quarter, Russian performance the our currency headwinds despite rates. incremental second exceeded strong expectations in pleased concerns, our from which financial business exit ongoing and exchange foreign our of macro the

currency X% of growth delivered we from an increase net on X% basis. of prior and $X.XX billion, the Specifically, adjusted constant year a revenue

the revenue XX% consumer grew currency Adjusted adjusted held quarter basis points point Netspend XX% basis currency consumer and be was Netspend which Excluding now XX.X%, for the basis. of second a the or excluding a a assets, net operating increased excluding operating the constant of quarter improvement XXX acquisitions. on assets. on XXX constant basis sale, XXXX available as impact XX% income margin Adjusted approximately from for will

our segment. constant year the adjusted $X.XX, consumer XX% XX.X%. $X.XX from closer XX% share a The adjusted margin quarter, Taking net Solutions basis XX.X% points the in or operating per from second the we Merchant margin an adjusted our currency from XXX an business of adjusted a on this an Notably, expectations in assets, Netspend an look basis. at currency revenue of Russian segment, on of by improvement year delivered the exit Excluding or result operating net year-on-year. quarter. increase performance achieved XX% of despite constant prior basis, of earnings the for our a ahead increase billion was was prior XX% of our

led growth. combined and integrated which strong delivered payments Our and U.S. integrated payroll business another again by quarter, our reported channel, mid-teens

this our grew and payroll strong quarter; roughly POS We business, also continue XX% grew in software momentum solutions, see which which our to HCM and XX%.

currency well this and the by the in of constant mid-teens worldwide continues as commerce networks, trends to quarter, omnichannel unified Our reported platform ahead our resonate the customers. e-commerce delivered acquiring growth are that we with success Pacific Google end, last late to now we of have that Asia excited relationship America UCP To following year. our launch North expanded with across the our in business

also we signed with company, omnichannel and global North. Delaware retailer, quarter, This ALDO; partnerships multinational new hospitality

we revenue year compared market and portfolio growth were remained for portfolio. pleased across the the the delivered As vertical overall prior XX% solution, bookings our to trends strong that

and We performance record Center continue continued events first to and service stadium momentum, new new increased management Miss demand bookings the customers in with and TouchNet, Winnipeg to in Life half for Jets the of realize vertical. see XXXX. University from for strong produced of the Further, offerings our the including strong Canadian and Ole wins kiosk AdvancedMD sales and food which mobile latter Xenial

local particularly strategic and saw our businesses Europe. excited Virgin accelerate also with the relationship combining in merchant significant announce referral achieving signed acquiring Money, alliance strong and milestone across in quarter issuing our to we I'm capabilities. currency with international recently our Central a U.K., results We this growth Spain that

$XXX the delivered margin quarter for excluding points year. it constant XX a and XX.X% this in operating second the consistent reported down On was of impact MineralTree. segment. growth a business net adjusted basis Issuer revenue, points, XX from Solutions basis, basis basis the of increased a prior long-term X% from expectations XXXX, on our Issuer with adjusted million Our target of improvement currency

Our transaction period. low first the mid-single-digit Notably, on from growth throughout and achieved double accelerating the in nearly XX% volumes card quarter. revenue file grew growth growth digits, improving the account commercial increased with

gap We also was year. long-standing of approximately late which last XX partner, portfolio our million purchased the Barclays, converted accounts, by

extensions $XXX the of with in Carrefour with our business During , contract acquisition signed Brazil clients, Chilean following This long-term agreement region. opportunities today's the including of the in we BIG will retailer provide a market-leading of signed America, Grupo long-term quarter South with cash in expenditures the flow roughly And outlook. recently, quarter, we acquisition its portfolio full the for free announcement multiple our a for more continue with in converting capital EVO. enter to flow further another From for standpoint, target year. We $XXX of XXXX, delivered we the of adjusted million we million to cash roughly adjusted expenditures earnings in our for to the free adjusted and $XXX XXX% flow quarter, expect invested million capital consistent cash during and prior market.

front, On this $XXX of the just capital repurchased over X.X allocation million. million quarter for we approximately our shares

remains a with liquidity healthy, net leverage sheet of basis. $X.X and the debt period balance on ended and Our billion we roughly of X.Xx extremely

in approximately cash, acquire form entered will the As a of billion. $X $XX Jeff Payments invest in we $X.X value and Lake discussed of from banks. price have committed cash source Global billion X%, will a funding to our for a Cameron privately agreement of our placed share conversion Silver convertible definitive EVO and per of bridge as convertible in term detail, a in X-year facility an Payments will have $XXX.XX. enterprise representing serve of note senior together with The a notes, coupon which

as conversion call overlay we significantly expect convertible addition, premium. raise a spread to instruments, effective is In to customary with the execute

as their the strong a underscores their Payments. ahead new Lake long-term to investment opportunity commitment and their Silver We are in Global excited very have partner, for and belief

entered Worldwide billion. and agreement assets sell Rev Netspend's Searchlight for $X definitive into Additionally, we to consumer to a Capital

first to We the of close the transaction end the also by expect Netspend quarter XXXX. of

expect at close. of leverage our be these net to X.Xx transactions, approximately we Following both

year to substantial levels, end September. the last at investor of current calendar generation We the cash expect highlighting our by to back be free we XXXX discussed flow leverage our conference

maintain We expect our investment-grade current to ratings.

in M&A. from remain We and over revenue FX the currency be trends is adjusted impacts growth Adjusted Turning constant This the a expected be currency to the our outlook prior on operating adjusted On year excess we a with range before excluding expectations constant a year. of to to to business, for XXXX. foreign to up May reflecting share from net XXX and we a bringing basis in On range points outlook remainder be reflecting of from total we of $X.XX are growth XX% our of XXXX. raising are our full the outlook expect to point points. XX% expect XXXX, of basis outlook seeing XXXX. XXX underlying This expansion year prior the earnings margin to consistent $X.XX XXX by $X.XX, unchanged, billion XXX up in the currency of consistent of we in incremental remains are XX% XX% is over per a for billion, dispositions to headwind basis, our an to to call. also to of to reported to encouraged basis for $X.XX the Also, increase our prior the now XXX outlook. basis, basis points, for with an basis impact

remainder as assets BXB now have X, and are of Netspend's moved held Also, outlook sale to we business, we we of our reclassifying and business, decision Additionally, July to the therefore with to reclassification continue range assets calendar held sale of net we to for XXXX. the a billion bolster the of in billion Russian $X.X exit BXB $X report businesses. consumer FX headwinds, incremental our it as to assets look sell consumer our now expect to core adverse for effective of Netspend's our leading revenue for to in the the from Netspend's removing year. our segment issuer light In adjusted combination for

to incremental roughly impact includes adverse We May. report rates exchange range for $X.XX since the an EPS foreign continue $X.XX XXXX, expect in from adjusted currency which $X.XX to of to anticipated

We relative remainder headwinds original a be and the guidance stable This are macroeconomy of additional our absorbing toward maintaining lower the XXXX the albeit, assumes adjusted we expect Russia, we ongoing outlook and those recovery same the the to pandemic throughout as to range from reasons. for currency exit EPS are outlook year. end

growth. our consumer financial consumer we've our swapped over And prospects while neutral synergies call concurrently targets EVO, with our that, core expect assets will assets acquisition of the the rate and high Netspend's focus. cycle to growth teens purchase of be to per top growth run Jeff. goals the deliver and share September EVO At Issuer our will XX%. company; of by raised inclusive XX% BXB of merchant and sale Upon will forth XXXX help which EVO bolstering transactions, strategy shift retaining indicates, we on the our represent raised In of from to closing full set Investor issuer done assets, we result with at business the Netspend's the our Netspend's As back today business the with of consumer I'll represent and we and these Netspend's the And earnings Solutions, to double-digit slide acquisition, to combined presentation disposition We our EVO share. for assets us per customer then we X XX% in that turn Conference. adjusted the earnings guidance expect of is our achieving effect, line provide the mix BXB enhanced confidence the consistent of cycle. This of to over so businesses. intentional adjusted Netspend the attractive roughly have

In markets; omnichannel our Josh. pages, past the September. Payments new in scale. We and X-plus this hours detail: owned XX-plus dominance; exposure faster strategy the conference were key investor Global and to growth Thanks, forth at of X previewed go-forward BXB pillars at partnered; Software, our and set those effectively

we keen now clear our it's then cycle think announcements with I why today's to raise guidance. were

and forward, We further of opportunities from Upon expect of growth. and X/X X will Organic adjusted we the of with which these merchant from for attractive at to enhanced have inorganic abound runway in our characteristics. each primary course X/X margin issuer rates derive ample net growing revenue transactions, is BXB. businesses closings of going each with and

in segment Silver strategy levers disruptive well the more to repeatedly better geared each customers to to we gain prospects. global than highlighted honor way share to Payments evidence last over cycle, path as corporate these our enhance confidence the growth, is our the simpler of September, that As across have its with in partner Lake of maintain continue respected of We Winnie? model, Global In SLP, and our toward investor to what have growth and part choice the positioned as technology multiple margin a a and markets. prospects durability our agrees. most enhanced plans?

Thanks, Operator, you. Jeff. to [Operator now go Instructions]. questions. will Thank we

[Operator Instructions].

from comes Your Peller. first the line Darrin of question

Congratulations these. on all

Thanks, Darrin.

the of off much When start to want to that the combination the really, want businesses business. side without forward, without and now I just think strategically. cleaner Look, -- going -- I Netspend the start we about of

had a You or a grow record has very JVs. know EVO been historically acquisitions software-led I with you strategy, with different doing would geographies where internationally great partnerships. software track

really touch expertise. just reach you is going emphasis being focus and now? JVs of dovetailing you in can business is Or other of going the So international of forward mean, and be versus terms it I that to on both? the on do little a you the more one see what think on

Jeff. comment, too. it's start, and Cameron Darrin, Well, I'll to ask I'll

pipeline penetration would software changed. to say deeper and new existing vertical outlook look geographies We looked markets you really we've our markets I But M&A for companies. our hasn't at, as and said, concurrently. attractive So on always

we managing as said mutually So effectively not doing exclusive. are that prepared sheet remarks, and in balance our our

we delever nice kind that are of where other The fast is we thing enough. about

that 'XX, So in if are back you 'XX. early 'XX, August ratio same actually by of close leverage in here we sitting the at December you're

now a then, of also that financial stock and have too. we'd between firepower. back buying we add I'd ton So be

so at look We'll doesn't at companies. fits further of just plenty existing continue affect outlined. on strategies. that But no, of flexibility look that the really I geographies. of anything? to capability you EVO and just it change to Cameron, penetration bill geographies. many at the look We'll our to we software It continue things have We'll do new So to want happens our add to continue priorities.

it's and Cameron. our of just foremost, XX% things. EVO if of technology-enabled. business you add the roughly today a strategy, is Darrin, say about I'd lens Yes, through One, I'll few think first the

aligned our our in view the driving much make. around very technology growth I through as business in with first globe, software overarching around the that of So strategy, leader the enablement point would with is

a trend. is better strategy second us is us exposure having again, already then gives as and to a even perspective out that drive payments. of third, we our to I bring the payments And key helped BXB rates nicely markets what fits capabilities new growth faster-growth with does And bill space, are BXB BXB bring build in superior The to technology-enabled element well. allow to us of those say, top but that software, strong secular around EVO that have growth of to an the strategy the that technologies particularly automation growth from world in distribution rates continue to line would drive, augment software it markets clearly, markets and opportunity also to AR around

technology-enabled very aligns with for the been strategy it we've building nicely many BXC So years.

the aligns today nicely last totality the EVO very think I really been strategy with trying aspects over to complements in of build we've and So decade. many business our

you and lot systems on hone ERP This assets in to That's my does really I just connectivity with give obviously more the BXB want the for now. helpful. BXB. just a strategy Guys, as follow-up,

just that characterize medium to market So what you real great. be to if to from going term, way the and longer differentiating as can contribute would business you see the that standpoint, to a go really, could BXB what you're

question. a and too. start Yes. ask again, Cameron I'll I'll Darrin, It's comment Jeff. it's to great

me rock-solid Jim specifically business terrific light first, So of complement and an for let on overall, and just your business. building but EVO BXB question in absolutely

the diligence particular, and are the we impressed these purposes assets. for extremely but So during the team with EVO, culture of BXB our in

last I XX% which October, looking what accounts were my with to think in mentioned on business the back an if of Darrin, schedule is MineralTree we I which, closed business, MineralTree ahead is ended software year-over-year remarks, for accounts quarter in up, the So just to you as prepared running June. complement receivable said, I breakeven, payable we

more be pleased couldn't that. we So with

we where BXB But among something when at businesses billion you of we're it positioned and now $X.XXX of from anybody I today with card Netspend's post-EVO, issuance, the coming worldwide about complete post-TSYS, closes, those we're the there. where think I mean, card, we year, commercial BXB just other Paycard. profitably volume $XX million does of And have revenue Netspend's assets, successful not billion consumer think a of but ultimately probably we virtual in and $XX TSYS If thing think divesting assets. said doing like is were also it out post-MineralTree, most scale so in we retaining BXB,

said, X, to the of moved effective we'll issuer now parts are EWA And those. segment. I have issuer as July over those, Paycard, to -- So

and with own over the have and I so And else built Jim time. have, really we missing that of receivables think smartly in businesses, have really last positions think link, us So as native don't in distinctively. MineralTree I combination integrations I ERP Jim period EVO our has which said, us is we we the bring but everything the

Yes. strategy Darrin, will enough BXB ERP the AR payment very acceptance proprietary and accompanying really it's BXB think without software, the BXB go-to-market excited a we're successful is integrations around today integrations. our very and Cameron. I integrations couple those those at tactical other accelerated, We're acceptance I the can't With meaningfully just Maybe And with how selling about and proposition our associated accelerate points. strategy. value of emphasize that that.

conference, offering have up can to industry the comments going else my we AP back a can point that don't couple of a we're of in, I largely market with enterprise to when the integrate earlier, comprehensive, bring we solutions, Secondly, full touch. and to this and goes mid-market out back the at Jeff payment the anyone to complete money investor really money automation BXB able sort to think in

is emphasis the it EVO being we're So a proposition go-to-market trying that I the to complement integrations, a again, think with it key really to from value does strategy BXB, Global Payments. of what as do highly brings

comes Bryan Keane. the question next Your line from of

now? question guess and was Both are why obviously, headquarters; just guys my other. Jim and you former Atlanta Obviously, GPN I executive a EVO the very familiar in is have at GPN. with been each

So GPN this EVO? of and timing just came deal Did thinking it how about about. the approach

Yes, Bryan, I'll start. it's Jeff.

to So over would so a proxy, lot they would long get from obviously I my trying. I've their this when to is what say line. me But want I I jump Jim to come just finish on more don't been file it actually side, the took that. look, ahead say It of

As of in I TSYS number context that spanning X ago, tried I the for one different years, Bryan, a careers. of XX merger, the said years

customer a and said, I'm maybe that Maybe line. certainly what do have and XX.X a whole EVO. known, But been team as at of get Global particular accomplishment. takes years, it's laggard been obviously, for time, I in at me time They've ours of for listen, a and a obviously the finish it's a it not been long Jim kind and customer just myself still are. over at you've management effort. for to lack of we've a things the of So over But duration long with lack

couldn't done and leadership with mentioned what a response especially, in the love side. BXB just we team assembled. than we to as as Then better side, have the question, than obviously, tech-enabled better and Cameron Jim has strategy a have his guys the he's on one Darrin's those So partner said, really couldn't

of view do why. been we've aligned I'll it, and thought time a think tell Global's. the of that It's and stars nice that from about we Jim's say, to would and is this, point trying we mine as and now I So this. view EVO's great point you

First, buyer EBITDA we have is done for this our fully calendar we comparison. in in our environment. share, in Jim by XX We're roughly paying think are going as climate. the for marketplace of expectations synergies look, that the with deals and $XX we're and That's people synergies environment. loaded XXx, into done 'XX strategic today. to transaction, way reflect that reflected us, don't strategic of for Prior vary kind have other we've macroeconomic what a FX just the And current and business going a terms by that those synergies any a macroeconomic to and the At XXx at it. do announced the

our I So to end have it the the that's that ability bring something would partners the announce tell all long today. We were pursuing X always really a of glad that we of certainly fruition. I this able for more together. time. been period I'm delighted day teams We've at just for to many gelled that be at couldn't you with years, to Global been very have

about And reach Bryan, Cameron. TSYS. other it's I'll third the point with anniversary which one to we're add is, to our look, that, just of merger

this well. us ready integration right is We're timing matter. the So as on to for an take as

additional obviously teams about capabilities does European excited our Essentially, us to like in business forward U.K., where have particularly roughly it we going Mexico, billion the the and Our also business. have we'll large scale are the markets today. now and U.S., to it businesses brings $X European opportunity, what

to opportunity. is team I think delighted the have the

for works timing us the as well an So matter. execution

No, it's exciting combination. an

you know seem that enough, highlighted gaining growth XX% in I don't quick me point-of-sale noticed if On I Let the one Merchant Solutions, gets the ask bit up be to landscape the point-of-sale software. sometimes, if talk results. a that well you about competitive share little are Because just year-over-year. software you quite business there? And Can follow-up doing guys guys on there?

maybe it's add he'd chime else. if start Bryan, anything like I'll and Cameron. Jeff to in, to Yes, ask

we POS space. business. in That XX% software to year. is the growth quarter of XX% think have in that we've the progress really delighted XX% last very made probably with market-leading off I rate We're the in offerings competitive

into we continue POS the capabilities of the So way that of all to very space, with with end down the suite business scale we to of market, enterprise nicely from, full that the and again, restaurant kind small have. stem higher retail the mid-market, even that up the the end capabilities to of our

restaurants that and We with of of the end market it essentials that the exists upper restaurant we the call basically we're to our of today, about. retail retail lower what the excited our also end launched this Package, quarter have in vertical really which brings market. and product the we down Because fluency some

and over that the So our even they scale additional I simpler they into grow retail think get our a going to benefits going And offering. with time can business of but core drive and POS verticalization, solution that's restaurant tailwinds in forward.

have And markets, our that I last our the POS bring And tailwinds those a business the bringing to of So products capabilities, scale of markets competitors quality somewhat in ourselves able that look space. it's in nicely continue U.K., the Central to overall and well I service EVO landscape the do distribution we ability forward. those markets to again, be POS the unique further U.S. grow my about coupled I say for Canada, international it is to a to outside we overall functionality and landscape. into a business against. business, will our talked and restaurant intense in creating software well, distinction differentiation for as tailwind we're we is lot I in we'll we're that positioned Obviously, think, customers, further have on Spain. would thing look, our we bring about with in really solutions think growth of well that more to to that the And that driving positions in but prepared going But in the very the opportunities. we're us a think lot to competitive us has remarks, offerings have, capabilities feature the retail Europe,

line Dave from question Koning. next Your comes of the

a couple... maybe And Congrats.

Thanks, Dave.

welcome. you're Yes,

a guess I couple questions. of So numbers

to And revenue to of First of expense there. EBIT the are fall $XXX all what line? does of all, synergies the is maybe million in and synergies, kind talk that

Cameron. it's Dave, comments I'll Yes, any I'll to he'd other start there in well add. like Josh to jump with and ask as

D&A. savings the for cute of So I being yes. the EBIT. Look, played games of Those are would on extensively talked in all EBIT foremost, this savings EBITDA as $XXX will lot business. sort there's opportunities talked say, well revenue the to There's EBITDA a about flow side. being the first no through We script. about synergies as that I million, and around

with overlaying multinational POS very enablement is incredibly commerce what vast is matter. BXB business capabilities The attractive of attractive. and of think, there's capabilities customers, Cross-selling into distribution bring base software, our existing very significant course, EVO's ability our is revenue growth as go-to-market customers to of think opportunity. a positioning of businesses. market our think, enterprise I acquiring, to course, attractive. then own And And an for EVO's solution, EVO's EVO's I BXB I our vertical UCP does that is a strategy solutions attractive amount in overlap and to

-- even of deal. aligning the of are I harmonizing is perspective leverage when strategies benefits source TSYS look would in like sales Philippines environments, and our that synergy at and in that ability opportunity some more the of synergy service as go-to-market a synergy we've and been significant levels scale, seen able I will X drives what Clearly, we Heartland gain we've of customer all the or technology in say platforms. servicing distribution operating So in and attractive the the obviously than do there transaction the think The offshore EVO, a an together. a opportunities significant at transaction environments, the to we captive our amount businesses put from opportunity be it to historically. to

a over call our of very started. earlier the feel it in in we the are the to anxious about and outlined today, time good ability So and to confidence we X-year have horizon lot number deliver get

include one said in us rest you revenue guidance of then for ops, just year? the still but know guidance EPS like a numbers still include were a looked and I second it Netspend it. I discontinued that does seems the Netspend raised to bit. And this both numbers. like on It And think has the to

Yes.

I what constant look, would changed. our So basis, currency a say, hasn't on guide

is growth still with XX% which to expected prior Our our outlook. consistent XX%, is

full then can $X.XX FX our to to to further, constant estimate billion. half my we remarks. if of in $X.XX billion, which for as before to figures well the that consumer, be year expect our in revenue would year, the I removing $X billion which be XXX include billion remarks, XXXX, year adjusted C $X.XX to commented business my we for to revenue expect press And release. After prepared Schedule see XXX basis as currency on and reported B range merchant we mentioned dispositions I points $X.X the calendar you billion headwind adjust be the approximately We in net Russia of prepared second billion XX revenue in that to for of $X.XX

to Jeff. that earnings would essentially kept report, it's I Dave, Yes. honest. range, the expect our original reported to we just add, we be

today, quarter, probably and original that just of $X.XX first think is to right the it we stressed the was But Josh in guided toward mentioned. that May Dave. to Dave. from just math would in we or of because an I whatever I the we're And Although in range the to be lower $X.XX view you're earnings $X.XX point to end think, we're Dave, we the February, was the getting another things or about light absorbing it, probably another think from way

what which it say is I actions, at in on said, taking why, would margin you I Dave, is look way is the is particular, the which we're So earnings up.

quarter our in we've So margin expectations. raised a for second row, the

laid conclusion. yet absorbing out a that tell you Dave, FX, as view revenue Josh formulation, formulation. reported same in raising Dave, I earnings essentially the February. it. we're absorbing So your the as from you, certainly But But can and we're the I still team, a own all have can from Russia, management range we're

Yes, great. sounds

Ramsey from comes the El-Assal. question of line next Your

and drivers merchant I a as bit, and Margins the of well. those should the as about we the through drivers segment. Maybe what things as sequence of quarter, sustainability model margin yields on talk and quite a did well move as expansion take yields the the had those outperformed year. of we you in of half question the our back for both could expect

I'll Ramsey, commentary. and jump Jeff Josh with other it's Cameron. in or to additional ask start any

of our tailwind, I incremental I which execution in very the couple able strong levels front. has think of the I'm continue margin it on continued for of to business, to think, margin higher I been think, reflects expansion. teams business. drive, of really I So a an Obviously, proud around the say We've the overall things created margin globe. would

That margin I slightly have nice margin as well. lower think expansion the we've to second recovery seen markets profiles. been that tailwind thing a have in is

Asia growth tailwinds Pacific Asia Pacific I there, a some is grew think region bit would again basis a currency And question continues which I think yields, in it digits overall. growth we Obviously, creates constant to It good see continues a some be to a mix to of conversation. COVID, to example I do overall say, struggle quarter. lastly, your on the of this but to with around double tailwinds that. margin

through has As XXXX. a having our businesses I that see up And fact vertical we drifted forecasted market yield we anticipate recover, previously. think the bit. -- on what the little continue we commented that to that work you'll we as That's would

line. constant XX%. excluding Russia, if about top So volume think you On the currency today, I basis, grew look at business about we grew XX%,

of So showing yield better that and delta volume kind a environment. really revenue was negligible, between growth

mix it overall of markets as to continuing business, some recover to in some due degree the vertical well. or to of recovering Some that to due

you your impact your kind Got consumer view it. recessionary And for of what for Can potential just weakening sort numbers? any you there? signs in of me. follow-up comment in the And a spending what give quarter-to-date Super you're what in us seeing is of recently on seeing your own on helpful. thoughts also on volumes? Or most seeing Are book? your you're

Sure, it's Again, Ramsey, I'll Cameron. start.

to trend of continues Relatively we've would time what with I in our say, with consistent, May June sort I July line think seen and frames. expectations. in

consistent else continue weakness sitting business, in the everyone trends place. to you, be expect. continues very, on in Like we'd of relatively what real with very watch healthy No that But I'm sure stable, phone, say, consumer I'd a of think the material closely. we to front. and the see, volume very I we the very any good consumer kind here today, sign, on

activity we're this Obviously, a period. during the of lot there's months. think summer still I in

how the goods. demand But in about with lot balance operating think and relative relatively, of a think progressing more and And see kind overall been given maybe that out we're we'll trends pent-up there's how less for experiences through and in. I July environment I of consumers say, so we volumes engage I'd in see continue expectations. the we comfortable be through macro to to of year, our the to get

I'd is Yes. the Ramsey, thing it's the same Jeff. say true on issuing side.

card. continue We in see July. in strong issuing We really really see commercial good to volumes

-- we think those actually week. for the look, And in quarter. very slide, I out of and I disclosed to similar expectations and last of Visa, what in commercial are you us the would XX% growth card say second those trends Mastercard, Fiserv heard

let's the twice Canada, And really packed. So and the U.S., pleased of we honest, couple Europe. U.K. streets restaurants, are hotels, way, Continental be the with last where the are. months airports, been in road the the in kind in the of the I've in on the by

you don't tell you things healthy a in to need that are place. me So

Your next line Napoli. of question the Robert from comes

the on acquisition of Congratulations EVO.

to Jeff. Jim back got You've with a asset, good and there, together Good see.

Just MineralTree, the business. on guess BXB on a maybe I follow-up

have that now You assets well. and as called MineralTree you growth the out AR XX% on

base? First you is of are what or XX% organic? -- all, able commercial MineralTree customer And that been card seeing to cross-sell into you your have

Bob, it's Jeff. a I'll It's Yes, start. great question.

comparable MineralTree yes, in year-over-year. So XX% the is

So that's an comparison. revenue organic

significantly which we've profitability. able at now while also it's improving remarks, grow revenue to been prepared my in mentioned I As EBITDA the substantially the breakeven,

overlap, base merchant businesses. there's issuer base end the in actually functionality. our the great say was question, EVO, of in someone to a is is to today. When is reports, whom pipeline The one it how of or now but He's of X,XXX, not a no X,XXX MineralTree whatever, second on there. running a like very BXB the But We business I'd brought and We're you, deep now your targets matter. what's post-EVO, pleased that whatever the off FIs. surprise executing. FI we in into at to June, is just for also terrific MineralTree, our X,XXX ton it's start. that So all who's to about cross-sell very revenue of is the with math did synergy Cameron's

like So Bob, cross-selling been space. enterprise into surprise, the things no QSR that we've

and would of those imagine folks that You on. King Burger types procure actually

You would think care. for health about example, in AdvancedMD,

about ed good cross-selling. really for think university. higher are Those all TouchNet the in You targets and

So revenue we're to business. add very Cameron, want the excited you opportunities in about that anything?

into X,XXX only with partners it opportunities with some own No, across working businesses, I software think in like we our partners that we existing of integrate just well. we see suite sort software our that covered solutions well, to comment of lot would is, opportunities their of meaningful a ISV see I today. MineralTree other The as add the of work

opportunities. cross-sell meaningful So

us think and that AR I opportunities well, we provide can across growth channel. that's the going as rates with even faster of more up to open software marry more drive entire when doors BXB for to

then been than just the little to on called be a tougher guidance, able margin the get follow-up And inflationary execution. what to had I where you expand environment? expansion, maybe than expected margins operating Jeff, What great -- that. do on just your you've how out, But much we this should in better can in know an color more environment it we

Yes, Bob, question. it's great a

are So of revenue business, derivatives most say, in things growth. our I would

growth, Netspend, XX% growing bottom business is all is So is like-for-like if like we morning, generate look to growth. Netspend, at currency revenue what revenue lot fall rates where ex and line think of going to because a I that if of incremental Josh our we you ex you're about what revenue, report said this how something the constant

revenue we've that double-digit surprising outperformed, growth. So it's we to kind not got me of core

and is market on The ago, say, businesses. thing touched minute would our vertical I Cameron second this a software

lot coming kind were for of a of recovery the we in a pandemic, those businesses. So into

to of our those Xst year, and Bob, this call growth. last February As returned now alluded November our year, obviously in comparative have we call, to

tailwind that are a mentioned, come headwind. there Cameron a at Not segment in just surprisingly, not Bob, in businesses merchant So the high software margin.

business the something you to of for talk probably software, in of of rule market about our XX or vertical XX% we're So think some XX, our rebound, rule kind really thereabout software in and growth Well, rates in the on of in capitalize ability aggregate. like of quarter cases, I second it XX. rule was

So to stuff to is the of not going a bottom that surprising, drop line. lot

the business and in we revenue alignment very the see top in of highlighting we've of that with been we're in is in Yes, Bob. and our focused value to only We The give highly, driving highly business. nothing. Cameron. leading And expansion in growth. proposition no line Obviously, we're More business, our business think drives management team. better that margins in we our believe that for that don't outcomes. it's we margin deliver is more, away heavily the as the really the that on customers. would add to better elements on I which to profitable always And core volume I and We growth growth one profitable between growth continue focus technology, the representation solutions there's higher thing and a obviously,

line the Friedman. comes question Jamie next from Your of

numbers transactions. on the Congratulations and the you... ask to wanted I

Thanks, Jamie.

Yes, have it? of BXB to roughly remarks makes in sense. ask you does if remind Netspend's that about Jeff, you us size and what exposure. mentioned about wanted can it, you the a lot of But prepared your Paycard. I

Yes, of course, Jamie.

this we million, actually So at February, review. But strategic time it's about Paul of think we -- our $XXX in said revenue. I the million $XXX announced

I'm of today, produced see And pro gave it's Schedule like. look formas X, going you to say we it also we schedules that what would actually the in to fact, supplemental throughout. In kind as

and from see see you we're you it it in what BXB what So actually selling there. without Netspend Paycard issuer with looks and like, in

said year, the think is in on that some The business. like a I'll you second say mostly in Paycard, but of a normalized in million, like in effects it's mid-teens from normalized yearly quarter. just there's it access having revenue last also basis is service prepared those I earn Jamie. bit, memory, business, had something It's banking at quote I schedules grew stimulus businesses of a $XXX some million And too. you quite Jamie, kind the as but -- So looked I remarks, wage $XXX as that and reason

in commercial assets payroll. virtual the in to coming that So you But federal business which with second have a the corollary BXB, And card, Cameron's have from still is to have little issuer of, is quarter, the in what merchant, stimulus it's we there were Heartland in the in at. a mid-teens we government. card, natural grown say, it's assets bit

So those businesses. it's a very nice corollary to

my Nice issuer. Got was second And then it. one about here. acceleration

issuer, that. what wondering of get oriented Just the the contemplated us you in what's for if with year rest and could --

Jeff. I'll It's I'll then start, and Josh. it turn to Yes. over

in my with X% expected. Jamie, right said track Ex-MineralTree, remarks, is growth, MineralTree, I with X%. tracking. as Obviously, So it what what constant prepared we printed we're on was which we currency

about think came So super We where on happy we're it there. track good a out. really

the quarter. last Josh, color said more to all a based file on in and see of in we quarter, have second little second said a the think the the year? I record everything quarter, accelerated give on third else, accounts want relative quarter. rest you're and going that about transactions volumes and commercial I As what on we pipeline, to too, the And to

Jamie. Sure, Yes.

also expecting basis first back to operating margin you then saw think And expense for MineralTree. see I strong ex the if we second ex-MineralTree, the we go back the to expand margins think quarter, for the quarter, basis saw of leverage, points XX expansion, So you further we're margins management. XX half year, expand if -- points. And

So go the around seen first second fourth revenue to and it We've a that we into third also to then nice and to see that and a Jeff's ahead which think accelerating. goes quarter strong very back the margin. operating perspective, leverage. I from expect trend quarter contribute comment the to -- quarter, And continue we from will

that fintechs And ago right, Look, when Canada, to this, sells, into years especially there the started with for the some regulated look, the of what is true is to might obviously, side, outside issuing AWS Jamie, I to, most Jamie, with business, hey, I terms my Europe, and path cloud now. side. and in about true for and cloud? on of not I what's Josh right say when that's That were also to can overseas been we're would worried just first on of managing say sells. our have the say, U.S. we're the the I tell started strategy outlook think you into this. exactly AWS we X that institutions trips, FIs move first would we We exactly

pipeline. my where we, kind is of record which as have But really receptivity we to pipeline, a what now the are been So view the shadow better. has and never

thank in need is to future obviously really an you But fruition. we're in to for thanks, have behalf for and those to joining opportunities. We fortunate the business, So Well, it, abundance On particularly position bright. bring Jamie. to of BXB the those of a the I assets that Global wrestle ground this us morning. think Payments,

concludes today's conference call. This

You may now disconnect.