Global Payments Inc. · NYSE:GPN
Global Payments — Q1 2023 Earnings Presentation
14 slides from Global Payments's earnings presentation, May 1, 2023
Slide 1: 1Q 2023 Earnings
1Q 2023 Earnings 5/1/2023 Innovation that delivers. COPYRIGHT GLOBAL PAYMENTS 2023 ALL RIGHTS RESERVED
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections ab
Slide 3: Outstanding performance
Outstanding performance 1Q 2023 Adjusted Net Revenue Adjusted Operating Margin Adjusted EPS $2.05B 43.1% $2.40 + 5% + 200 bps + 16% +7% constant currency1 +18% constant currency1 +9% constant currency ex. EVO & dispositions1 1 Adjusted net revenue growth and adjusted EPS growth on a constant currenc
Slide 4: Merchant Solutions
Merchant Solutions Adjusted Adjusted Net Revenue Operating Margin 1Q 2023 Highlights 1Q 2023 $1.46B 47.3% 10% global constant currency volume growth ex. dispositions1 +9% Flat (+10% constant (+25 bps ex. EVO currency ex. EVO & dispositions)1 acquisition) High-teens Ecomm/ Omni growth1 2023 Outlook +
Slide 5: Merchant Solutions revenue and volume trends
Merchant Solutions revenue and volume trends 2021 20221 20231 Growth YoY 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY 1Q Merchant Solutions Adj. Net 4% 42% 21% 21% 21% 17% 15%2 11%2 9%2 13%2 11%2 Revenue Volume 10% 42% 22% 24% 24% 20% 15%2 11%2 9%2 13%2 10%2 1 2022 and 2023 adjusted net revenue growth and global v
Slide 6: Issuer Solutions
Issuer Solutions Adjusted Adjusted Net Revenue Operating Margin 1Q 2023 Highlights 1Q 2023 $490M 43.9% 8.4% Core Issuer constant +5% +80 bps currency growth1,3 (+7% constant currency) ~25% Commercial card transactions growth 2023 +5-6% +up to Outlook (increased) 120 bps2 11% Traditional accounts on
Slide 7: 2023 outlook
2023 outlook Adjusted Net Revenue Adjusted Operating Margin Adjusted EPS +7% to up to +11% to +8% 120 bps of +12% expansion $8.635B to $10.32 to $8.735B $10.44 ~100% Adjusted Free Cash Flow Conversion1 1 Adjusted free cash flow estimated at 100% of adjusted net income; excludes timing impact of reali
Slide 8: 2023 annual segment outlook
2023 annual segment outlook Total Merchant Issuer Solutions Netspend Total Solutions including B2B Consumer1 Company2 Adjusted Net $6.50-$6.55B $2.04-$2.06B ~$145M $8.635-$8.735B Revenue 15-16% 5-6% 7-8% Growth YoY (higher end of range) (increased) (increased) 1 Includes incremental ~$25M adjusted n
Slide 9: Appendix
Appendix COPYRIGHT GLOBAL PAYMENTS 2023 ALL RIGHTS RESERVED 9
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures Global Payments supplements revenues, income, operating income , operating margin, earnings per share (EPS) and net operating cash flows determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial meas
Slide 11: Reconciliation of Non-GAAP Financial Measures - Consolidated (unaudited)
Reconciliation of Non-GAAP Financial Measures - Consolidated (unaudited) (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2023
Slide 12: Reconciliation of Non-GAAP Financial Measures - Segment Adjusted Net Revenue and Adjusted Operating Income
Reconciliation of Non-GAAP Financial Measures - Segment Adjusted Net Revenue and Adjusted Operating Income (unaudited) (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the compa
Slide 13: Reconciliation of Non-GAAP Financial Measures - Segment Adjusted Net Revenue and Adjusted Operating Income
Reconciliation of Non-GAAP Financial Measures - Segment Adjusted Net Revenue and Adjusted Operating Income (unaudited) (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the compa
Slide 14: Reconciliation of Non-GAAP Financial Measures - 2023 Outlook Summary (unaudited)
Reconciliation of Non-GAAP Financial Measures - 2023 Outlook Summary (unaudited) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefit to the company. Amounts also (1) included adjustments t