Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q2 2024 Earnings Presentation
32 slides from Fidelity National Information Services's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Earnings Call
SECOND QUARTER 2024 EARNINGS CALL f August 6, 2024
Slide 2: Speakers
Second 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: Second Quarter Highlights
1 Second Quarter Highlights 4
Slide 5: Strong Execution & Focus on Growth Vectors
STRONG EXECUTION & FOCUS ON GROWTH VECTORS MONEY AT REST MONEY IN MOTION MONEY AT WORK CORE BANKING PAYMENTS TRADING & ASSET SERVICES • On track for record core • Strong demand for loyalty • Global scale with signings in 2024 solutions differentiated capabilities DIGITAL BANKING TREASURY & RISK COMM
Slide 6: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS STRATEGY FINANCIAL RESULTS HIGHLIGHTS Leveraging Our Strong Foundation +4% Adjusted • Continued sales momentum through accelerating wins and Revenue Growth cross-sell Executing to Deliver Profitable Growth +110bps Adjusted EBITDA • Launching innovative high- margin SaaS-bas
Slide 7: Key Wins and Awards
KEY WINS AND AWARDS MONEY AT REST MONEY IN MOTION MONEY AT WORK LEADING CONSUMER FINANCE COMPANY Competitive Core Takeaway Premium Payback FIS Private Capital Suite 7
Slide 8: Financial Results & Outlook
2 Financial Results & Outlook 8
Slide 9: 2Q 2024 Financial Results
2Q 2024 FINANCIAL RESULTS RESULTS TOTAL REVENUE ADJ. EBITDA MARGIN ADJUSTED EPS $2.5B 40.1 % $1.36 +4% ADJUSTED +110 BPS +79% REPORTED +31% NORMALIZED KEY METRICS ADJ. FREE CASH FLOW CAPEX CAPITAL RETURN BALANCE SHEET (as of 6/30/2024) $504M $183M $1.3B $11.2B 2.6x 2.8% 85% Conversion(1) 7% of Reven
Slide 10: Banking & Capital Markets Financial Results
BANKING & CAPITAL MARKETS FINANCIAL RESULTS 2Q 2024 RESULTS TOTAL REVENUE ADJUSTED REVENUE RECURRING REVENUE % REVENUE RECURRING $2.4B +4% +4% 81 % BANKING SOLUTIONS CAPITAL MARKETS REVENUE GROWTH +3% REVENUE GROWTH +7% +3% Recurring Revenue +7% Recurring Revenue ADJUSTED +21% ADJUSTED +15% Other No
Slide 11: Updated FY 2024 Outlook
UPDATED FY 2024 OUTLOOK ($ millions, except per share data) PRIOR FY OUTLOOK UPDATED FY OUTLOOK METRICS AS OF MAY 6 AS OF AUGUST 6 Revenue $10,100 - $10,150 $10,120 - $10,170 Adjusted Revenue Growth 4.0% - 4.5% 4.0% - 4.5% Banking Solutions 3.0% - 3.5% 3.0% - 3.5% Capital Market Solutions 6.5% - 7.0
Slide 12: FY 2024 Outlook
FY 2024 OUTLOOK ($ millions, except per share data) METRICS FY 2024 KEY CHANGES FAV. / (UNFAV.) Revenue $10,120 - $10,170 • Raised by $20M to reflect favorable FX Adjusted Revenue Growth 4.0% - 4.5% Banking Solutions 3.0% - 3.5% Capital Market Solutions 6.5% - 7.0% Adjusted EBITDA $4,115 - $4,140 •
Slide 13: 3Q 2024 Outlook
3Q 2024 OUTLOOK ($ millions, except per share data) METRICS 3Q 2024 ASSUMPTIONS • Assumes Immaterial FX Impact Revenue $2,555 - $2,570 • Corporate & Other Revenue ~$55M Adjusted Revenue Growth 4.0% - 4.5% Banking Solutions 2.5% - 3.0% Capital Market Solutions 7.5% - 8.0% Adjusted EBITDA $1,035 - $1,
Slide 14: Financial Summary
FINANCIAL SUMMARY • Continued momentum through 2Q 2024 with sixth straight quarter of outperformance • Accelerating revenue with expanding margins • Raising 2024 Adj. EPS outlook to $5.03 - $5.11 reflecting 13% - 15% normalized growth • Returned $1.3B of capital to shareholders in 2Q 2024 through sh
Slide 15: 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 ALLOWING US TO DRIVE DOUBLE-DIGIT TOTAL RETURN 15
Slide 16: Appendix
Appendix 16
Slide 17: 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 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 Worldpay business will exceed our estimates or otherwise adversely affect our business or operations; • the impact of the separation of Worldpay on our
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 summarizi
Slide 20: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED JUNE 30, 2024 BANKING CAPITAL MARKET OPERATING SEGMENT CORPORATE AND CONSOLIDATED SOLUTIONS SOLUTIONS TOTAL OTHER FIS Revenue $1,710 $722 $2,432 $57 $2,489 FX 2 - 2 1 3 Constant Currency Revenue $1,712 $722 $2,434 $58 $2,492 THREE MONT
Slide 21: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED JUNE 30, 2024 Net cash provided by operating activities $546 Non-GAAP adjustments: Acquisition, integration and other payments (1) 126 Settlement activity 15 Adjusted cash flows from operations $687 Capital expenditures (183) Adjusted
Slide 22: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED JUNE 30, 2024 2023 Net earnings (loss) attributable to FIS from continuing operations $242 $84 Provision (benefit) for income taxes 89 29 Interest expense, net 43 160 Equity method investment (earnings) loss, net of tax (10) - Other, n
Slide 23: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED JUNE 30, 2024 2023 Net earnings (loss) attributable to FIS from discontinued operations $1 $(6,680) Provision (benefit) for income taxes - 43 Interest expense, net - (7) Other, net 1 (23) Operating income (loss) $2 $(6,667) Depreciatio
Slide 24: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED JUNE 30, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $242 $84 Equity method investment (earnings) loss, net of tax (10) - Earnings (loss) attributable to FIS from continuing operations, excluding equity met
Slide 25: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED JUNE 30, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $1 $(6,680) Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - 373 Acquisition, integration and othe
Slide 26: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED JUNE 30, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $0.43 $0.14 Equity method investment (earnings) loss, net of tax (0.02) - Earnings (loss) attributable to FIS from continuing operations, excluding equit
Slide 27: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED JUNE 30, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $- $(11.25) Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - 0.63 Acquisition, integration and oth
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 acquisitions, including customer relationships, contract value, technology assets, trademarks and trade names. The
Slide 29: Notes to Unaudited Supplemental GAAP to Non-GAAP Reconciliations
NOTES TO UNAUDITED – SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATIONS 2024 THREE MONTHS ENDED JUNE 30, 2023 Continuing Operations: Acquisition and integration $24 $5 Enterprise transformation, including Future forward and platform modernization 56 74 Severance and other termination expenses 9 19 Separa
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: THREE MONTHS ENDED JUNE 30, 2024 FIS’ share of Worl
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: THREE MONTHS ENDED JUNE 30, 2024 Revenue $1,349 Gross profit $668 Earnings (loss) before income taxes $3 Net earnings (loss) attributable to Worldpay Holdco, LLC $(28) FIS share of net ea
Fidelity National Information Services — Q2 2024 Earnings Presentation on 6ix