Financial Performance - Fourth quarter 2024 GAAP diluted earnings per share (EPS) increased by 63% to $2.25, while adjusted EPS rose by 12% in constant currency to $2.95[2]. - Fourth quarter 2024 GAAP revenue reached $2.52 billion, marking a 3% increase, and adjusted net revenue was $2.29 billion, up 6.5% in constant currency excluding dispositions[6]. - For the full year 2024, GAAP revenues totaled $10.11 billion, a 4.7% increase from $9.65 billion in 2023, with diluted EPS rising to $6.16 from $3.77[6]. - Net income attributable to Global Payments for the fourth quarter was $567.2 million, a 57% increase from $361.3 million in the same quarter of 2023[19]. - Adjusted net revenue for Q4 2024 was $2,289,015, a 4.7% increase from $2,186,240 in Q4 2023[21]. - Adjusted net income attributable to Global Payments for the year ended December 31, 2024, was $2,942,560, up 7.9% from $2,727,407 in 2023[21]. - Net income for the year ended December 31, 2024, was $1,644,153,000, a 60% increase from $1,028,823,000 in 2023[29]. - The company reported a diluted earnings per share of $6.16 for 2024, compared to $3.77 in 2023, representing a substantial increase of 63.5%[33]. Revenue Growth - The 2025 outlook includes expected constant currency adjusted net revenue growth of 5% to 6% and adjusted EPS growth of 10% to 11%[5]. - Merchant Solutions revenue for Q4 2024 was $1,885,923, a 5.5% increase from $1,670,482 in Q4 2023[24]. - Issuer Solutions revenue for Q4 2024 was $646,284, a 2.6% increase from $629,674 in Q4 2023[24]. - For the three months ended December 31, 2024, the company's net revenue was $2,515,386 thousand, a 3.4% increase from $2,433,812 thousand in the same period of 2023[39]. - For the year ended December 31, 2024, the total net revenue reached $10,105,894 thousand, up from $9,654,419 thousand in 2023, marking a 4.6% increase[41]. Operating Income and Margins - Operating income for the fourth quarter increased by 67.1% to $833.1 million, compared to $498.7 million in the prior year[19]. - Adjusted operating margin for the fourth quarter expanded by 40 basis points to 45.2%[6]. - Adjusted operating income for Q4 2024 reached $1,034,048, reflecting a 5.7% growth compared to $978,506 in Q4 2023[21]. - The company’s operating income for 2024 was $2,333,605,000, compared to $1,716,386,000 in 2023, marking a year-over-year increase of approximately 36%[33]. - The operating income for the three months ended December 31, 2024, was $1,034,048 thousand, compared to $978,506 thousand for the same period in 2023, reflecting a 5.7% increase[39]. Shareholder Returns and Capital Management - The company plans to return approximately $2 billion to shareholders in 2025[5]. - A $250 million accelerated share repurchase plan has been initiated[2]. - The net cash used in investing activities for 2024 was $(173,891,000), a significant reduction from $(4,361,112,000) in 2023, highlighting improved capital allocation[29]. - The company reported a net cash increase of $479,100,000 in 2024, compared to an increase of $41,269,000 in 2023, demonstrating strong cash generation capabilities[29]. Assets and Liabilities - Total assets decreased to $46,890,255 as of December 31, 2024, down from $50,570,186 in 2023[28]. - Total liabilities decreased to $23,873,688 as of December 31, 2024, compared to $26,782,671 in 2023[28]. - Cash and cash equivalents increased to $2,538,416 as of December 31, 2024, from $2,088,887 in 2023[28]. Business Transformation and Future Outlook - The company expects to achieve over $600 million in annual run-rate operating income benefits from its transformation by the first half of 2027[2]. - The company believes that providing supplemental financial information enhances shareholders' ability to evaluate future business management[52]. - The company anticipates a foreign exchange impact of approximately 2% on revenues for 2025[48]. - The company’s GAAP diluted EPS for 2025 is projected to grow by 4% to 5%, with constant currency adjusted EPS expected to increase by 10% to 11%[48]. Adjustments and Non-GAAP Measures - Adjusted operating income, net income, and EPS exclude various expenses including acquisition-related amortization and share-based compensation[51]. - Adjusted operating margin is calculated by dividing adjusted operating income by adjusted net revenue, excluding results from the consumer business disposed in April 2023[52]. - Adjustments to operating income for the year ended December 31, 2024, included $1,369.1 million in cost of sales (COS) and $688.8 million in selling, general and administrative (SG&A) expenses[41]. - The company reported a net gain on business dispositions of $273.1 million for the year ended December 31, 2024, compared to a loss of $136.7 million in 2023[41][42].

Company Overview - Global Payments (GPN) is expected to report a year-over-year increase in earnings, with a projected EPS of $2.96, reflecting an 11.7% increase, and revenues of $2.31 billion, up 5.6% from the previous year [3][12] - The earnings report is scheduled for February 13, 2025, and the actual results will significantly influence the stock price depending on whether they meet or exceed expectations [2][3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 0.53% lower in the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10] - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.49%, which complicates the prediction of an earnings beat [10][11] Earnings Surprise History - In the last reported quarter, Global Payments was expected to post earnings of $3.11 per share but delivered $3.08, resulting in a surprise of -0.96% [12] - Over the last four quarters, the company has beaten consensus EPS estimates three times, indicating some potential for positive performance despite recent revisions [13] Comparison with Industry Peers - Fidelity National Information Services (FIS), a competitor in the financial transaction services industry, is expected to report an EPS of $1.35, representing a 43.6% year-over-year increase, with revenues projected at $2.63 billion, up 4.9% [17] - FIS has a higher Most Accurate Estimate leading to an Earnings ESP of 0.41% and a Zacks Rank of 2 (Buy), suggesting a higher likelihood of beating the consensus EPS estimate compared to Global Payments [18]

Stock Performance - Shares of Global Payments Inc (GPN) have plunged 16.4% in the past year, underperforming the industry's growth of 20.5% [1] - Peers like Fiserv, Inc (FI) and Fidelity National Information Services, Inc (FIS) have gained 51.6% and 27.1%, respectively, over the same time frame [1] - The S&P 500 index has rallied 24.8% in the past year, a stark divergence from GPN's price performance [1] - The stock moved down 21.4% from its 52-week high of $141.78 and is currently trading below its 50-day moving average, signaling downward momentum [2] Challenges - Global Payments faces challenges from rising operating expenses, which inched up 1.5% year over year in the first nine months of 2024 [4] - Intensified competition in the payment market from emerging firms threatens profitability and pricing dynamics [4][5] - The Zacks Consensus Estimate for earnings per share has seen downward revisions, with the 2024 adjusted earnings estimate pegged at $11.58 per share, indicating 11.1% year-over-year growth [7] Valuation - The company is currently trading at 8.68X forward 12-month earnings, below its five-year median of 12.65X and the industry average of 24.54X, suggesting the stock is undervalued [6] Growth Drivers - Strong contributions from the Merchant Solutions and Issuer Solutions segments have been key revenue growth drivers, with year-over-year revenue increases of 8.8% and 3.9%, respectively, in the first nine months of 2024 [9] - The company aims for adjusted net revenue growth, excluding dispositions, in the mid-single-digit percentage range for 2025 and mid to high-single digits during 2026-2027 [10] - Global Payments continues to expand its capabilities and market presence through acquisitions, partnerships, and joint ventures, with strategic priorities including enhancing business scale and accessing new markets [11] Strategic Initiatives - Significant investments in technology focus on product innovation and transitioning technology platforms to cloud environments, aiming to improve platform performance and achieve cost efficiencies [12] - The company is simplifying its POS portfolio from more than 16 brands to a single cohesive platform to boost competitiveness and operational efficiency [12] - Divestment of non-core assets is expected to have an annual revenue impact of $500-600 million starting in the second half of 2024 [12] Conclusion - Global Payments is navigating near-term challenges like rising expenses and competitive pressures, but its focus on streamlining operations, divesting non-core assets, and enhancing technology capabilities positions it for growth [13] - Current shareholders should stay put and benefit from its expanding operations and strategic initiatives, while new investors should wait for a better entry point [13]

Revenue Growth - Consolidated revenues for the three and nine months ended September 30, 2024 increased to $2,601.6 million and $7,590.5 million, respectively, compared to $2,475.7 million and $7,220.6 million for the prior year, primarily due to growth in transaction volumes[122] - Merchant Solutions revenues for the three months ended September 30, 2024 increased by 6.0% to $1,997.7 million, representing 76.8% of total revenues[145] - Issuer Solutions revenues for the three months ended September 30, 2024 increased by 2.2% to $621.1 million, representing 23.9% of total revenues[145] - Consolidated revenues for the nine months ended September 30, 2024 increased by 5.1% to $7,590.5 million compared to $7,220.6 million in the prior year[153] - Merchant Solutions segment revenues increased by 8.8% to $5,802.8 million for the nine months ended September 30, 2024, driven by growth in transaction volume and cross-selling of services[154][155][156] - Issuer Solutions segment revenues increased by 3.9% to $1,837.4 million for the nine months ended September 30, 2024, primarily due to higher transaction volume[158] Operating Income and Expenses - Merchant Solutions segment operating income for the three and nine months ended September 30, 2024 increased compared to the prior year, driven by revenue growth and the acquisition of EVO business[123] - Issuer Solutions segment operating income for the three months ended September 30, 2024 decreased compared to the prior year due to slightly higher costs[123] - Consolidated operating income for the three and nine months ended September 30, 2024 included lower acquisition and integration expenses, offset by business transformation expenses and a technology asset charge[124] - Consolidated operating expenses for the three months ended September 30, 2024 increased by 10.9% to $2,126.0 million, primarily due to higher selling, general, and administrative expenses[145] - Corporate expenses for the three months ended September 30, 2024 included $56.4 million in employee termination benefits, $59.2 million in business transformation costs, and $55.8 million in technology asset charges[147] - Selling, general and administrative expenses increased to $3,282.2 million for the nine months ended September 30, 2024, primarily due to higher corporate expenses, including employee termination benefits and business transformation costs[161][162] - Consolidated operating income increased by 23.2% to $1,500.5 million for the nine months ended September 30, 2024, with operating margin improving to 19.8% from 16.9% in the prior year[163][164] - Merchant Solutions segment operating income increased by 12.1% to $1,960.5 million for the nine months ended September 30, 2024, with operating margin improving to 33.8% from 32.8% in the prior year[149][164] - Issuer Solutions segment operating income increased by 10.3% to $322.5 million for the nine months ended September 30, 2024, with operating margin improving to 17.6% from 16.5% in the prior year[149][164] Financial Performance and Metrics - The company expects its transformation initiatives to generate more than $500 million of annual run-rate operating income benefit by the first half of 2027[130] - Cost of service as a percentage of revenues decreased to 37.0% for the nine months ended September 30, 2024, compared to 38.9% in the prior year, driven by improved operating leverage and the divestiture of the consumer business[159][160] - Interest and other income increased to $126.6 million for the nine months ended September 30, 2024, including a $18.8 million gain from the release and conversion of Visa convertible preferred shares[165][166] - The effective income tax rate for the nine months ended September 30, 2024 was 13.4%, benefiting from foreign interest income, tax credits, and a change in the assessment of valuation allowances[168] - The effective income tax rate for the three months ended September 30, 2023, was 14.1%, and for the nine months ended September 30, 2023, it was 24.9%[169] - Net income attributable to Global Payments was $315.1 million for the three months and $1,003.2 million for the nine months ended September 30, 2024[171] - Diluted earnings per share was $1.24 for the three months and $3.92 for the nine months ended September 30, 2024[172] Capital and Liquidity Management - The company had cash and cash equivalents totaling $2,941.9 million as of September 30, 2024, with $888.4 million available for general purposes[178] - Capital expenditures were $490.9 million for the nine months ended September 30, 2024, with an anticipated $670.0 million for the year ending December 31, 2024[182] - The company used $900.0 million to repurchase shares of its common stock during the nine months ended September 30, 2024[186] - The remaining amount available under the share repurchase program was $1,371.9 million as of September 30, 2024, with an increase to $2.5 billion approved on October 24, 2024[187] - The company issued $2.0 billion in aggregate principal amount of 1.500% convertible unsecured senior notes due March 2031 on February 23, 2024[189] - The company entered into capped call transactions with an initial cap price of $228.90 per share to hedge the potential dilutive effect upon the conversion of the notes[192] - The cost of $256.3 million incurred in connection with the capped call transactions was reflected as a reduction to paid-in-capital in the consolidated balance sheet as of September 30, 2024[193] - The company has $1.5 billion in aggregate principal amount of 1.000% convertible notes due August 2029, issued in 2022 with interest payable semi-annually[194] - The company has a $5.75 billion unsecured revolving credit facility maturing in August 2027[195] - As of September 30, 2024, $1.5 billion was borrowed under the revolving credit facility with an interest rate of 6.56%, leaving $4.2 billion available[196] - The company has a $2.0 billion commercial paper program, with no borrowings outstanding as of September 30, 2024[197][198] - The required leverage ratio was 4.25 to 1.00 and the interest coverage ratio was 3.00 to 1.00 as of September 30, 2024, with compliance maintained[199] - As of September 30, 2024, $788.1 million was outstanding under settlement lines of credit, with additional capacity of $2,203.7 million[202] - The weighted-average interest rate on settlement lines of credit borrowings was 5.63% as of September 30, 2024[202] - The company had $75.9 million of cash on deposit used to determine available credit for settlement lines of credit as of September 30, 2024[201] - The maximum and average outstanding balances under settlement lines of credit were $996.4 million and $534.8 million, respectively, during the three months ended September 30, 2024[202] Market Risks and Disclosures - The company is exposed to market risks, with detailed disclosures available in the Annual Report on Form 10-K for the year ended December 31, 2023[209]

Core Insights - The 2024 State of AP Report by MineralTree highlights the need for finance organizations to enhance automation in accounts payable (AP) processes to improve efficiency and reduce costs [2][4] - Less than 20% of organizations have fully automated their AP processes, indicating significant room for improvement [5][10] - The report reveals that while many organizations are satisfied with their automation efforts, few are completely satisfied, suggesting ongoing challenges in achieving optimal automation [2][5] Automation and Efficiency - Four out of five finance professionals believe that increasing automation efforts is essential to mitigate inefficiencies caused by manual processes [4] - Organizations that have automated parts of their AP processes report benefits such as faster invoice processing, improved payment cycle times, and increased team productivity [4][5] - The use of Artificial Intelligence (AI) in AP is still limited, with only 20% of businesses currently using or planning to incorporate AI in the next year [6][5] Payment Methods and Trends - There is a notable shift towards digital payment options, with vendors and buyers increasingly favoring methods like ACH and card payments over traditional checks [7] - The desire for timely and accurate payments is driving vendors to accept more digital payment methods [7] Staffing and Work Environment - The return to office mandates, coupled with a shortage of accountants, is raising concerns about staffing and retention in finance teams [8] - Automation is being leveraged to support remote and hybrid work arrangements, enhancing work/life balance for employees [8] Survey Demographics - The report is based on responses from 1,017 finance professionals involved in AP functions, along with 147 vendor organization employees, surveyed between June 17 and August 5, 2024 [9][10] - Respondents represented a diverse range of industries and company sizes, with annual revenues varying from less than $1 million to over $1 billion, and 65% falling between $10 million and $500 million [10]

Global Payments Inc. (NYSE:GPN) Q3 2024 Earnings Conference Call October 30, 2024 8:00 AM ET Company Participants Winnie Smith - Senior Vice President, Investor Relations Cameron Bready - Chief Executive Officer Josh Whipple - Chief Financial Officer Conference Call Participants Will Nance - Goldman Sachs Bryan Bergin - TD Cowen Bryan Keane - Deutsche Bank Dan Perlin - RBC Capital Markets Darrin Peller - Wolfe Research Tien-tsin Huang - J.P. Morgan Trevor Williams - Jefferies Jason Kupferberg - Bank of Amer ...

Global Payments (GPN) reported $2.36 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 5.6%. EPS of $3.08 for the same period compares to $2.75 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.38 billion, representing a surprise of -0.89%. The company delivered an EPS surprise of -0.96%, with the consensus EPS estimate being $3.11.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Global Payments (GPN) came out with quarterly earnings of $3.08 per share, missing the Zacks Consensus Estimate of $3.11 per share. This compares to earnings of $2.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.96%. A quarter ago, it was expected that this electronics payment processing company would post earnings of $2.91 per share when it actually produced earnings of $2.93, delivering a surprise of 0.69%. Over the l ...

| --- | --- | --- | --- | |------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | 3Q 2024 Earnings | | | | | October 30, 2024 | | | | 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 ope ...

Exhibit 99.1 Global Payments Reports Third Quarter 2024 Results October 30, 2024 • Third quarter 2024 GAAP diluted earnings per share (EPS) of $1.24, a decrease of (11)%, and adjusted EPS of $3.08, an increase of 12% • Third quarter 2024 GAAP revenue of $2.60 billion, an increase of 5%, and adjusted net revenue of $2.36 billion, an increase of 6% • Reaffirms outlook for 2024 • Reaches a definitive agreement to sell AdvancedMD • Enters into $600 million accelerated share repurchase plan ATLANTA -- Global Pay ...