Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q3 2024 Earnings Presentation
34 slides from Fidelity National Information Services's earnings presentation, Nov 4, 2024
Slide 1: Third Quarter 2024 Earnings Call
THIRD QUARTER 2024 EARNINGS CALL f November 4, 2024
Slide 2: Speakers
Third Stephanie Ferris 1 Quarter Chief Executive Officer and President Highlights Speakers Financial James Kehoe 2 Results & Chief Financial Officer Outlook 2
Slide 3: Disclosures
Disclosures Forward-looking Statements Our discussions today, including this presentation and any comments made by management, contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Any statements that refer to future events or circumstances, including our futur
Slide 4: Third Quarter Highlights
1 Third Quarter Highlights 4
Slide 5: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS STRATEGY FINANCIAL RESULTS HIGHLIGHTS Leveraging Our Strong Foundation +4% Adjusted • Accelerating recurring Revenue Growth revenue growth of 6% 41.3 • Ongoing momentum with Executing to Deliver % cross sell initiatives and high Profitable Growth margin new sales Adjusted EB
Slide 6: Winning Across Key Growth Vectors
WINNING ACROSS KEY GROWTH VECTORS MONEY AT REST MONEY IN MOTION MONEY AT WORK CORE BANKING PAYMENTS TRADING & ASSET SERVICES • YTD 2024 wins exceed FY • Next-gen offerings resonating; • Launched Digital Trading 2023 total; pipeline expanding Premium Payback Storefront DIGITAL BANKING TREASURY & RISK
Slide 7: Key Wins and Awards
KEY WINS AND AWARDS MONEY AT REST MONEY IN MOTION MONEY AT WORK LEADING REGIONAL BANK IBS Premium Payback Commercial Lending 7
Slide 8: Financial Results & Outlook
2 Financial Results & Outlook 8
Slide 9: 3Q 2024 Financial Results
3Q 2024 FINANCIAL RESULTS RESULTS(1) TOTAL REVENUE ADJ. EBITDA MARGIN ADJUSTED EPS $2.6B 41.3 % $1.40 +4% ADJUSTED (140) BPS +49% REPORTED +13% NORMALIZED KEY METRICS ADJ. FREE CASH FLOW CAPEX CAPITAL RETURN BALANCE SHEET (as of 9/30/2024) $530M $243M $700M $10.9B 2.6x 2.7% 85% Conversion(2) 9% of R
Slide 10: Banking & Capital Markets Financial Results
BANKING & CAPITAL MARKETS FINANCIAL RESULTS 3Q 2024 RESULTS TOTAL REVENUE ADJUSTED REVENUE RECURRING REVENUE % REVENUE RECURRING $2.5B +4% +6% 80 % BANKING SOLUTIONS(1) CAPITAL MARKETS REVENUE GROWTH +6% REVENUE GROWTH +6% +3% Recurring Revenue +7% Recurring Revenue ADJUSTED (24)% ADJUSTED +20% Othe
Slide 11: Updated FY 2024 Outlook
UPDATED FY 2024 OUTLOOK ($ millions, except per share data) PRIOR FY OUTLOOK UPDATED FY OUTLOOK(1) METRICS AS OF AUGUST 6 AS OF NOVEMBER 4 Revenue $10,120 - $10,170 $10,140 - $10,170 Adjusted Revenue Growth 4.0% - 4.5% 4.1% - 4.4% Banking Solutions 3.0% - 3.5% 3.0% - 3.5% Capital Market Solutions 6.
Slide 12: FY 2024 Outlook
FY 2024 OUTLOOK ($ millions, except per share data) METRICS FY 2024(1) ASSUMPTIONS / KEY CHANGES Revenue $10,140 - $10,170 • Lower end of range raised by $20M Adjusted Revenue Growth 4.1% - 4.4% Banking Solutions 3.0% - 3.5% Capital Market Solutions 6.5% - 7.0% Adjusted EBITDA $4,125 - $4,140 • Lowe
Slide 13: Financial Summary
FINANCIAL SUMMARY • Accelerated recurring revenue growth with FY margin expansion of 50 bps • Raising 2024 outlook across revenue, Adj. EBITDA and Adj. EPS • Returned $700M to shareholders in 3Q; on-track for $4B repurchase commitment in 2024 13 For a description of non-GAAP measures and a reconcili
Slide 14: Durable Operating Model Across All Economic Cycles
DURABLE OPERATING MODEL ACROSS ALL ECONOMIC CYCLES 1 We are: 2 We have: 3 We deliver: Scaled Global Broad Suite Of Technology Distribution & Best-Of-Breed Leader Marquee Set Solutions Of Clients 14
Slide 15: Appendix
Appendix 15
Slide 16: FIS Continuing Operations – Revised Historical Financials
FIS Continuing Operations – Revised Historical Financials FISCAL YEAR FISCAL YEAR 2023 FISCAL YEAR 2024 2022 FIS Continuing Operations FULL YEAR 1Q 2Q 3Q 4Q FULL YEAR 1Q 2Q Reported Revenue $9,719 $2,397 $2,424 $2,489 $2,510 $9,821 $2,467 $2,489 Accounting Revision (Revenue) 1 3 3 2 2 10 - 1 Total R
Slide 17: Banking Solutions – Revised Historical Financials
Banking Solutions – Revised Historical Financials FISCAL FISCAL YEAR 2023 FISCAL YEAR 2024 YEAR 2022 Banking Solutions FULL YEAR 1Q 2Q 3Q 4Q FULL YEAR 1Q 2Q Reported Revenue $6,624 $1,646 $1,666 $1,730 $1,692 $6,733 $1,684 $1,710 Accounting Revision (Revenue) 1 3 3 2 2 10 - 1 Total Revenue (Revised)
Slide 18: Revised YTD 2024 Results & Updated Outlook
REVISED YTD 2024 RESULTS & UPDATED OUTLOOK ($ millions, except per share data) 2024 YTD Results 2024 Updated Outlook METRICS 1Q 2024 2Q 2024 3Q 2024 IMPLIED 4Q FY 2024 Revenue $2,468 $2,490 $2,570 $2,612 - $2,642 $10,140 - $10,170 Adjusted EBITDA $969 $992 $1,060 $1,104 - $1,119 $4,125 - $4,140 Adju
Slide 19: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This earnings release and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, as well as other statements about our expectations, beliefs, intentions, or strategies regarding
Slide 20: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS • the risk that the costs of restructuring transactions and other costs incurred in connection with the separation of the Worldpay business will exceed our estimates or otherwise adversely affect our business or operations; • the impact of the separation of Worldpay on our
Slide 21: FIS Use of Non-GAAP Financial Information
FIS USE OF NON-GAAP FINANCIAL INFORMATION Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizi
Slide 22: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, 2024 BANKING CAPITAL MARKET OPERATING SEGMENT CORPORATE AND CONSOLIDATED SOLUTIONS SOLUTIONS TOTAL OTHER FIS Revenue $1,779 $730 $2,509 $61 $2,570 FX 1 (4) (4) 2 (2) Constant Currency Revenue $1,780 $726 $2,505 $62 $2,567
Slide 23: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, 2024 Net cash provided by operating activities $641 Non-GAAP adjustments: Acquisition, integration and other payments (1) 132 Settlement activity - Adjusted cash flows from operations $773 Capital expenditures (243) Adjus
Slide 24: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, 2024 2023 Net earnings (loss) attributable to FIS from continuing operations $246 $248 Provision (benefit) for income taxes 108 70 Interest expense, net 64 162 Equity method investment (earnings) loss, net of tax 33 - Oth
Slide 25: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, 2024 2023 Net earnings (loss) attributable to FIS from discontinued operations $(22) $(709) Provision (benefit) for income taxes (3) (382) Interest expense, net (1) (4) Other, net - 30 Operating income (loss) $(26) $(1,06
Slide 26: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $246 $248 Equity method investment (earnings) loss, net of tax 33 - Earnings (loss) attributable to FIS from continuing operations, excluding equity
Slide 27: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $(22) $(709) Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - 17 Acquisition, integration and
Slide 28: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $0.45 $0.42 Equity method investment (earnings) loss, net of tax 0.06 - Earnings (loss) attributable to FIS from continuing operations, excluding eq
Slide 29: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $(0.04) $(1.19) Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - 0.03 Acquisition, integratio
Slide 30: Notes to Unaudited Supplemental GAAP to Non-GAAP Reconciliations
NOTES TO UNAUDITED – SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS (1) This item represents purchase price amortization expense on all intangible assets acquired through various Company acquisitions, including customer relationships, contract value, technology assets, trademarks and trade names. The
Slide 31: Notes to Unaudited Supplemental GAAP to Non-GAAP Reconciliations
NOTES TO UNAUDITED – SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS 2024 THREE MONTHS ENDED SEPTEMBER 30, 2023 Continuing Operations: Acquisition and integration $22 $12 Enterprise transformation, including Future Forward and platform modernization 76 79 Severance and other termination expenses 7 6 S
Slide 32: Notes to Unaudited Supplemental GAAP to Non-GAAP Reconciliations
NOTES TO UNAUDITED – SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS (9) This item represents FIS' proportionate share of Worldpay's non-GAAP adjustments on its earnings (loss) consistent with FIS' non-GAAP measures and is comprised of the following: THREE MONTHS ENDED SEPTEMBER 30, 2024 FIS’ share of
Slide 33: Supplemental Financial Information - Unaudited
SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED The Company completed the Worldpay Sale on January 31, 2024. The results of the Worldpay Merchant Solutions business prior to the completion of the Worldpay Sale have been presented as discontinued operations. The following table represents a reconcilia
Slide 34: Supplemental Financial Information - Unaudited
SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED Summary Worldpay Holdco, LLC financial information is as follows: THREE MONTHS ENDED SEPTEMBER 30, 2024 Revenue $1,248 Gross profit $718 Earnings (loss) before income taxes $(99) Net earnings (loss) attributable to Worldpay Holdco, LLC $(160) FIS share
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