Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.2 billion, reflecting constant currency growth of over 5% excluding dispositions [38] - Adjusted operating margin increased by 70 basis points, resulting in an adjusted earnings per share of $2.69, an 11% increase on a constant currency basis [39][40] - The company expects adjusted net revenue growth of 5% to 6% over 2024, with adjusted operating margin expansion of approximately 50 basis points for 2025 [45][47] Business Line Data and Key Metrics Changes - Merchant Solutions achieved adjusted net revenue of $1.69 billion, reflecting 6% growth on a constant currency basis, driven by high single-digit growth in POS and software and integrated embedded businesses [40][41] - Issuer Solutions reported adjusted revenues of $529 million, a 3% increase on a constant currency basis, with an adjusted operating margin of 46.3% [42][43] Market Data and Key Metrics Changes - The company noted that the disposition of AdvancedMD and exit from certain non-core markets in Asia Pacific had a 3-point impact on overall growth, while unfavorable foreign currency exchange rates were over a 1-point headwind for the quarter [39] - The company is well diversified across geographic and vertical markets, positioning it to navigate through current economic uncertainties [39] Company Strategy and Development Direction - The company is focused on a transformation agenda that includes simplifying and streamlining its business, enhancing its global scale, and concentrating investments exclusively on merchant solutions [11][12] - The acquisition of Worldpay is expected to enhance the company's capabilities and market position, creating a complete Commerce Solutions platform [12][14] - The company aims to achieve at least $600 million in cost synergies and $200 million in revenue synergies from the Worldpay acquisition [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable mid to high single-digit adjusted net revenue growth and consistent adjusted operating margin expansion in the coming years [31][32] - The company is closely monitoring ongoing tariff negotiations and their potential impact on the global economy but remains optimistic due to its diversified business model [39] Other Important Information - The company plans to maintain capital spending at 7% to 8% of adjusted net revenue, translating to over $1 billion annually focused on Merchant Solutions post-transaction [36] - The company executed share repurchases of approximately $450 million in the quarter, maintaining a healthy balance sheet with $3.8 billion in available liquidity [45] Q&A Session Summary Question: Can you talk about the rollout plan for the Genius product? - Management indicated that the initial rollout will focus on front book opportunities, with pathways for back book clients to transition at their own pace, emphasizing the excitement around the new capabilities [56][58][62] Question: Has the improved revenue growth at Worldpay been all organic? - Management confirmed that Worldpay's growth has been purely organic, driven by significant investments in their e-commerce and enterprise business [67][68] Question: What are the share buyback assumptions for 2026 and 2027? - Management expects to return over $2 billion in share repurchases in 2026 and over $3 billion in 2027, with a solid mid-single-digit EPS growth rate anticipated post-closing [70][71]

1Q 2025 earnings May 6, 2025 +5% Adjusted net revenue growth1 +70 bps Forward-looking statements This presentation may contain 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 about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks, uncertainties and a ...

Core Viewpoint - Global Payments (GPN) is expected to report quarterly earnings of $2.68 per share, reflecting a 3.5% increase year-over-year, with revenues projected at $2.2 billion, a 0.7% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 2.2%, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Non-GAAP Revenues - Merchant Solutions' at $1.68 billion, a year-over-year change of +0.1% [5]. - 'Non-GAAP Revenues - Issuer Solutions' is projected to reach $528.21 million, indicating a +2.4% change year-over-year [5]. - The average estimate for 'Revenues - Issuer Solutions' is $607.50 million, suggesting a +0.8% change year-over-year [5]. Geographic Revenue Insights - 'Revenues - Merchant Solutions' is estimated at $1.82 billion, reflecting a -0.5% change year-over-year [6]. - 'Geographic Revenue - Europe' is forecasted to be $399.04 million, indicating a +3.7% change year-over-year [6]. - 'Geographic Revenue - Americas' is expected to reach $1.95 billion, showing a -1.4% change from the prior year [6]. - 'Geographic Revenue - Asia Pacific' is projected at $60.09 million, indicating a -0.4% change year-over-year [7]. Operating Income Estimates - The consensus for 'Non-GAAP Operating Income - Merchant Solutions' stands at $802.11 million, compared to $790.41 million reported in the same quarter last year [7]. - 'Non-GAAP Operating Income - Issuer Solutions' is estimated at $246.04 million, up from $241.40 million in the previous year [8]. - 'Operating Income - Merchant Solutions' is expected to be $599.26 million, compared to $580.44 million reported last year [8]. - 'Operating Income - Issuer Solutions' is projected at $109.78 million, compared to $106.10 million in the same quarter last year [9]. Stock Performance - Shares of Global Payments have declined by -23.4% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change [9].

Core Viewpoint - The market anticipates Global Payments (GPN) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $2.68 per share, reflecting a year-over-year increase of 3.5%, while revenues are projected to be $2.2 billion, up 0.7% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.95%, indicating a reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.11%, which indicates a bearish sentiment among analysts [10][11]. Historical Performance - In the last reported quarter, Global Payments was expected to earn $2.96 per share but delivered $2.95, resulting in a surprise of -0.34%. Over the past four quarters, the company has beaten consensus EPS estimates twice [12][13]. Investment Considerations - Despite the negative Earnings ESP and a Zacks Rank of 3, which complicates predictions for an earnings beat, investors are advised to consider other factors influencing stock performance ahead of the earnings release [11][16].

Market Overview - Wall Street experienced a rebound in risk appetite ahead of the Easter weekend, driven by positive signals from President Trump regarding trade negotiations with the EU and China [1] - The S&P 500 rose by 0.9%, while the Nasdaq 100 increased by 0.5%, recovering from a previous 3% decline [2] - The Dow Jones fell by 0.9%, primarily due to a significant 23% drop in UnitedHealth Group Inc. after the company reduced its full-year earnings forecast [2] Sector Performance - Energy stocks led the gains for the day, supported by rising oil prices, with Exxon Mobil Corp. increasing by 4.1% and Chevron Corp. advancing by 3.5% [2] - The SPDR S&P 500 ETF Trust rose by 0.8% to $530.09, while the SPDR Dow Jones Industrial Average fell by 0.7% to $394.05 [7] - The Energy Select Sector SPDR Fund outperformed with a 3.5% increase, while the Health Care Select Sector SPDR Fund lagged, down 0.1% [7] Notable Stock Movements - Eli Lilly Inc. surged by 16% after announcing successful Phase 3 trials for its oral GLP-1 receptor agonist, Orforglipron [7] - Fidelity National Information Services jumped by 9% following a $13.5 billion acquisition of Global Payments Inc.'s Issuer Solutions business, expected to generate over $125 million in annual revenue synergies [7] - Companies reacting to earnings reports included American Express Co. up 0.5%, Blackstone Inc. up 1.9%, and Charles Schwab Corp. up 2.7% [7] - Netflix Inc. rose by 2% ahead of its earnings report scheduled for release after market close [7]

Acquisition and Divestiture - Global Payments announced the divestiture of its Issuer Solutions business for $13.5 billion and the acquisition of Worldpay for a net purchase price of $22.7 billion, reflecting an 8.5x adjusted EBITDA multiple for Worldpay[2] - The acquisition will enhance Global Payments' capabilities to serve over 6 million customers and enable approximately 94 billion transactions annually[4] - The acquisition of Worldpay is seen as a strategic move to simplify Global Payments' business model and enhance its financial profile[5] Financial Projections - The combined company is expected to achieve pro forma adjusted net revenue of approximately $12.5 billion and adjusted EBITDA of approximately $6.5 billion, processing $3.7 trillion in payment volume globally[3] - Global Payments expects adjusted earnings per share for Q1 2025 to be $2.69, reflecting a growth of approximately 10% on a constant currency basis[19] - The company reaffirmed its full-year 2025 outlook for adjusted net revenue, adjusted operating margin, and adjusted earnings per share[20] Synergies and Cost Management - The transaction is anticipated to generate annual run-rate cost synergies of $600 million and revenue synergies of at least $200 million over three years post-closing[13] - Global Payments plans to issue $7.7 billion of debt to finance the acquisition, with an expected net leverage of approximately 3.5x at closing[15][17] Regulatory and Closing Conditions - The transaction is expected to close in the first half of 2026, subject to regulatory approvals[18] - The company faces uncertainties related to regulatory approvals and the ability to meet closing conditions for the transaction[29] Risks and Challenges - Risks include potential difficulties in integrating Worldpay's business and realizing anticipated cost savings from the transaction[29] - There are concerns about maintaining key personnel and potential business disruptions resulting from the transaction[29] - The company is exposed to macroeconomic pressures, including inflation and rising interest rates, which could impact future performance[29] - Increased competition in existing markets and challenges in expanding into new markets are significant risks[29] - The company must comply with Visa and Mastercard requirements, which could affect its operations[29] Forward-Looking Statements - Management's expectations regarding future plans and objectives are subject to change pending finalization of Q1 2025 results[29] - Forward-looking statements are based on current estimates and may differ materially from actual results[29] - The company disclaims any obligation to publicly release updates to forward-looking statements, except as required by law[29]

Sale of Industry-Leading Payments Technology and Solutions Company Marks an Important Milestone in GTCR's Strategic Transformation in Partnership with Leaders Strategy™ CEO Charles Drucker CHICAGO, April 17, 2025 /PRNewswire/ -- GTCR, a leading private equity firm, announced today the signing of a definitive agreement to sell Worldpay (the "Company"), a global leader in merchant acquiring and payments processing, to Global Payments (NYSE: GPN) for $24.25 billion as part of a transformative three-way transa ...

Core Insights - Global Payments (GPN) has shown a total revenue of $2.29 billion for the quarter ending December 2024, reflecting a 4.7% increase year-over-year [4] - The company's international operations are crucial for assessing its financial resilience and growth prospects, particularly in a tightly interconnected global economy [2][3] International Revenue Performance - Europe contributed $449.34 million, accounting for 19.63% of total revenue, surpassing the consensus estimate of $437.09 million by 2.8% [5] - Asia Pacific generated $70.92 million, representing 3.10% of total revenue, exceeding the projected $66.23 million by 7.09% [6] - The previous quarter's contributions from Europe and Asia Pacific were $462.95 million (19.64%) and $66.68 million (2.83%), respectively, while the year-ago quarter figures were $406.03 million (18.57%) and $69.44 million (3.18%) [5][6] Revenue Forecasts - Analysts project GPN's revenues for the ongoing fiscal quarter to be $2.21 billion, a 1.4% increase from the previous year, with Europe and Asia Pacific expected to contribute $420.71 million (19%) and $62.42 million (2.8%) respectively [7] - For the entire year, total revenue is forecasted at $9.37 billion, a 2.3% improvement from the previous year, with Europe contributing $1.77 billion (18.9%) and Asia Pacific $263.01 million (2.8%) [8] Market Dependency and Trends - GPN's reliance on international markets for revenue presents both opportunities and challenges, making the monitoring of overseas revenue trends essential for predicting future performance [9] - Wall Street analysts are closely tracking these trends, especially in light of increasing international interdependencies and geopolitical tensions [10]

Financial Performance - Consolidated revenues for the year ended December 31, 2024 increased to $10,105.9 million, compared to $9,654.4 million for the prior year, primarily due to growth in transaction volume [228]. - Consolidated revenues for the year ended December 31, 2024 increased by $451.5 million, or 4.7%, to $10,105.9 million from $9,654.4 million in the prior year [257]. - Merchant Solutions segment revenues increased by $536.9 million, or 7.5%, to $7,688.7 million, primarily due to a $479.5 million increase in transaction volume and a $189.3 million contribution from the acquisition of EVO [258]. - Issuer Solutions segment revenues increased by $84.8 million, or 3.5%, to $2,483.7 million, driven by a $74.3 million increase in transaction volume [259]. - Consolidated operating income for the year ended December 31, 2024 was $2,333.6 million, representing a 36.0% increase from $1,716.4 million in the prior year [254]. - Operating income rose to $2,333,605,000 in 2024, up 36% from $1,716,386,000 in 2023 [379]. - Net income attributable to Global Payments increased to $1,570.4 million from $986.2 million in the prior year, with Merchant Solutions segment operating income rising by $267.7 million [279]. - Net income attributable to Global Payments increased to $1,570,365,000 in 2024, compared to $986,233,000 in 2023, reflecting a 59.3% growth [379]. - Basic earnings per share reached $6.18 in 2024, a significant increase from $3.78 in 2023 [379]. Business Transactions - The sale of AdvancedMD, Inc. in December 2024 was completed for approximately $1 billion, with a recognized gain of $273.1 million during the year [228]. - The company completed the sale of the consumer portion of its Netspend business in Q2 2023, impacting its Consumer Solutions segment [224]. - The Consumer Solutions segment reported no revenues for the year ended December 31, 2024, following the disposal of the consumer business in April 2023 [259]. - The company recognized net losses of $243.6 million on the consumer business disposition during the years ended December 31, 2023, and $71.9 million in 2022 [337]. - The company reported a net loss on business dispositions of $273,134,000 in 2024, compared to a gain of $136,744,000 in 2023 [379]. Operating Expenses and Income - Operating income for the year ended December 31, 2024 included lower acquisition and integration expenses and share-based compensation expense [228]. - Selling, general and administrative expenses increased by $211.5 million, or 5.2%, to $4,285.3 million, with expenses as a percentage of revenues at 42.4% [265]. - Corporate expenses increased by $96.9 million, or 10.8%, to $994.9 million, driven by costs associated with business transformation initiatives and employee termination benefits [269]. - The operating income included a $273.1 million gain on the sale of AdvancedMD, which positively impacted operating margin by approximately 4.1%, while higher corporate costs negatively affected the margin by about 2.5% [271]. Cash Flow and Capital Management - Cash and cash equivalents totaled $2,538.4 million as of December 31, 2024, with $1,067.5 million available for general purposes [285]. - Operating activities generated net cash of $3,532.7 million for the year ended December 31, 2024, up from $2,248.7 million in the prior year [287]. - Cash used in investing activities was $173.9 million, significantly lower than $4,361.1 million in the prior year, with $487.1 million allocated for acquisitions [288]. - The company repurchased $1,552.0 million worth of common stock during the year ended December 31, 2024, retiring 12.7 million shares [292]. - The board of directors approved an increase in the share repurchase program authorization to $2.5 billion, with $1,850.0 million remaining as of December 31, 2024 [293]. - Dividends paid to common shareholders amounted to $252.8 million for the year ended December 31, 2024, compared to $260.4 million in the prior year [294]. Debt and Financing - The company has issued $2.0 billion in aggregate principal amount of 1.500% convertible senior notes due March 2031 [228]. - Issued €800 million of 4.875% senior unsecured notes due March 2031, net proceeds of €790.6 million used for general corporate purposes [297]. - Issued $2.5 billion of senior unsecured notes with varying maturities and interest rates, net proceeds used to refinance debt and for acquisition-related expenses [298]. - Issued $2.0 billion of senior unsecured notes with interest rates ranging from 1.500% to 2.900%, proceeds used to repay prior credit facility debt [299]. - Entered into a $5.75 billion revolving credit facility maturing in August 2027, with capitalized debt issuance costs of $12.3 million [313]. - As of December 31, 2024, the company had $1,500.0 million in borrowings outstanding under the revolving credit facility with an interest rate of 5.86% [315]. - The total available commitments under the revolving credit facility were $3.7 billion as of December 31, 2024 [315]. - The company has a $2.0 billion commercial paper program, which is backstopped by the revolving credit agreement [316]. - The company had interest rate swaps with a total notional amount of $1.5 billion to hedge changes in cash flows attributable to interest rate risk on a portion of its variable-rate debt instruments [354]. Market and Industry Outlook - The payments technology industry is expected to continue growing due to wider merchant acceptance and increased use of digital payment solutions [233]. - The company anticipates continued expansion into new markets and additional acquisitions to improve competitiveness [232]. - The company is focusing on technology modernization and innovation to support the development of new and emerging technologies [234]. Internal Controls and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) [371]. - The determination of performance obligations for Issuer Solutions revenue contracts was identified as a critical audit matter due to the judgment required in evaluating contract terms [365]. - The company’s tax return positions are fully supportable, but unrecognized tax benefits existing at December 31, 2024, would affect the provision for income taxes in the future if recognized [343]. Revenue Recognition - The company recognizes revenue for payment services based on a daily basis, reflecting the services performed each day [411]. - Customer contracts may include subscription-based SaaS arrangements, with revenue recognized over time on a ratable basis over the contract term [421]. - The company measures revenues for its services on a daily basis, directly ascribing variable fees to the distinct day of service [418].

4Q and full year 2024 earnings Use of Non-GAAP Financial Measures This presentation will reference certain non-GAAP financial information. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure is included in the Appendix to this presentation and the Investor Relations section of our website at www.globalpayments.com, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and li ...