Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q1 2024 Earnings Presentation
32 slides from Fidelity National Information Services's earnings presentation, May 6, 2024
Slide 1: First Quarter 2024 Earnings Call
FIRST QUARTER 2024 EARNINGS CALL f May 6, 2024
Slide 2: Speakers
First 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: First Quarter Highlights
1 First Quarter Highlights 4
Slide 5: Off to a Strong Start
OFF TO A STRONG START 1 2 3 Fifth Straight Quarter of Building Sales Momentum Capital Allocation Outperformance • Exceeded outlook across revenue, adj. • Accelerating revenue growth, with • Increasing FY 2024 share repurchase EBITDA, and adj. EPS improved margins target by $500M to $4B • Reiterating
Slide 6: Financial Results & Outlook
2 Financial Results & Outlook 6
Slide 7: 1Q 2024 Financial Results
1Q 2024 FINANCIAL RESULTS REVENUE ADJ. EBITDA MARGIN ADJ. EPS $2.5B $1.10 CON. OPS. (FIS) 39.5% +53% REPORTED +3% ADJUSTED +200 BPS +24% NORMALIZED 1 MONTH DISC. OPS. $403M (Worldpay) 46.4% $0.23 TOTAL COMPANY $2.9B 40.5% $1.33 KEY METRICS FREE CASH FLOW CAPEX CAPITAL RETURNED BALANCE SHEET (as of 3
Slide 8: Banking & Capital Markets Financial Results
BANKING & CAPITAL MARKETS FINANCIAL RESULTS 1Q 2024 RESULTS TOTAL REVENUE ADJUSTED REVENUE RECURRING REVENUE % REVENUE RECURRING $2.4B +3 % +5 % 82 % BANKING SOLUTIONS CAPITAL MARKETS REVENUE GROWTH +4% REVENUE GROWTH +9% +2% Recurring Revenue Growth +6% Recurring Revenue Growth ADJUSTED +9% ADJUSTE
Slide 9: Updated FY 2024 Outlook
UPDATED FY 2024 OUTLOOK ($ millions, except per share data) PRIOR FY OUTLOOK UPDATED FY OUTLOOK METRICS AS OF FEB 26 AS OF MAY 6 Revenue $10,100 - $10,150 $10,100 - $10,150 Adjusted Revenue Growth 4.0% - 4.5% 4.0% - 4.5% Banking Solutions 3.0% - 3.5% 3.0% - 3.5% Capital Market Solutions 6.5% - 7.0%
Slide 10: FY 2024 Outlook
FY 2024 OUTLOOK ($ millions, except per share data) METRICS FY 2024 ASSUMPTIONS • Includes FX Headwind ~$20M Revenue $10,100 - $10,150 • Corporate & Other Revenue ~$245M • ~(50) bps Dis-Synergy / ~70 bps M&A Adjusted Revenue Growth 4.0% - 4.5% • 3.8% - 4.3% Net of M&A & Dis-Synergies Banking Solutio
Slide 11: 2Q 2024 Outlook
2Q 2024 OUTLOOK ($ millions, except per share data) METRICS 2Q 2024 ASSUMPTIONS • Includes FX Impact ~$0M Revenue $2,465 - $2,490 • Corporate & Other Revenue ~$60M Adjusted Revenue Growth 3.0% - 4.0% Banking Solutions 2.0% - 2.5% Capital Market Solutions 7.0% - 8.0% Adjusted EBITDA $980 - $995 Adjus
Slide 12: Closing Remarks
CLOSING REMARKS • Strong start to the year and fifth straight quarter of outperformance • Accelerating revenue with expanding margins • Reaffirming revenue and adj. EBITDA outlook, raising adj. EPS outlook • Returned $1.6B of capital to shareholders in 1Q 2024 through share repurchases and dividends
Slide 13: Appendix
Appendix 13
Slide 14: Normalized 1Q 2024 Adj. EPS Growth
NORMALIZED 1Q 2024 ADJ. EPS GROWTH 1Q 2024 Normalized Adjusted EPS Growth of 24% 1Q 2024 Normalized EPS Bridge 1Q 2023 Adj. EPS (Con. Ops.) $0.72 Assuming transaction occurred 1/1/2023: EMI Contribution (Worldpay) $0.15 Capital Deployment $0.11 Normalized Tax Rate (Worldpay Impact) $(0.03) Normalize
Slide 15: Banking Solutions Adj. Recurring Revenue Growth
BANKING SOLUTIONS ADJ. RECURRING REVENUE GROWTH Resilient recurring revenue growth even through global pandemic FISCAL YEAR CAGR Banking Solutions 2020 2021 2022 2023 2019 – 2023 Adjusted recurring revenue growth (1) 2% 5% 6% 4% 4% ($ millions, unaudited) (1) Adjusted recurring revenue growth reflec
Slide 16: Banking Solutions Disaggregation of Revenue
BANKING SOLUTIONS DISAGGREGATION OF REVENUE As a result of our ongoing portfolio assessments, the Company reclassified certain non-strategic operations from Banking Solutions to Corporate and Other during the fourth quarter of 2023. Revenue during the year ended December 31, 2023, from the operation
Slide 17: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Today’s presentation 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 18: 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 World pay business will exceed our estimates or otherwise adversely affect our business or operations; • the impact of the separation of Worldpay on ou
Slide 19: 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 summ ariz
Slide 20: Reconciliation of GAAP to Non-GAAP Financials – Con. Ops
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS – CON. OPS THREE MONTHS ENDED MARCH 31, 2024 BANKING SOLUTIONS CAPITAL MARKET SOLUTIONS CORPORATE AND OTHER TOTAL Revenue $1,684 $706 $77 $2,467 FX (1) (3) (1) (5) Constant Currency Revenue $1,683 $703 $76 $2,462 THREE MONTHS ENDED MARCH 31, 2023 BANKING
Slide 21: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED MARCH 31, 2024 Net cash provided by operating activities $206 Non-GAAP adjustments: Acquisition, integration and other payments (1) 103 Settlement activity (12) Adjusted cash flows from operations $297 Capital expenditures (202) Free c
Slide 22: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED MARCH 31, 2024 2023 Net earnings (loss) attributable to FIS from continuing operations $17 $96 Provision (benefit) for income taxes 26 37 Interest expense, net 77 142 Equity method investment (earnings) loss, net of tax 86 - Other, net
Slide 23: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED MARCH 31, 2024 2023 Net earnings (loss) attributable to FIS from discontinued operations $707 $44 Provision (benefit) for income taxes (991) 11 Interest expense, net (1) (5) Other, net 470 (24) Operating income (loss) $185 $26 Deprecia
Slide 24: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED MARCH 31, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $17 $96 Equity method investment (earnings) loss, net of tax 86 - Earnings (loss) attributable to FIS from continuing operations, excluding equity metho
Slide 25: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED MARCH 31, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $707 $44 Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - 372 Acquisition, integration and other
Slide 26: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED MARCH 31, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $0.03 $0.16 Equity method investment (earnings) loss, net of tax 0.15 - 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 MARCH 31, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $1.22 $0.07 Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - 0.63 Acquisition, integration and ot
Slide 28: 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 acquisitio ns, including customer relationships, contract value, technology assets, trademarks and trade names. Th
Slide 29: Notes to Unaudited Supplemental GAAP to Non-GAAP Reconciliations
NOTES TO UNAUDITED – SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS 2024 T HREE MONTHS ENDED MARCH 31, 2023 C ontinuing Operations: Acquisition and integration $24 $6 Enterprise transformation, including Future forward and platform modernization 73 71 Severance and other termination expenses 18 23 Se
Slide 30: Notes to Unaudited Supplemental GAAP to Non-GAAP Reconciliations
NOTES TO UNAUDITED – SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS (8) 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: TWO MONTHS ENDED MARCH 31, 2024 FIS’ share of World
Slide 31: 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 32: Supplemental Financial Information - Unaudited
SUPPLEMENTAL FINANCIAL INFORMATION - UNAUDITED Summary Worldpay Holdco, LLC financial information is as follows: TWO MONTHS ENDED MARCH 31, 2024 (1) Revenue $832 Gross profit $385 Earnings (loss) before income taxes $(230) Net earnings (loss) attributable to Worldpay Holdco, LLC $(243) FIS share of
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