Fidelity National Information Services(FIS) - 2024 Q4 - Annual Results

Financial Performance - FIS reported full-year 2024 revenue of approximately $10.1 billion, a 3% increase on a GAAP basis and a 4% increase on an adjusted basis compared to the prior year[9][10]. - GAAP net earnings attributable to common stockholders for 2024 were $787 million, or $1.42 per diluted share, representing a 67% increase over the prior year[9][7]. - Adjusted net earnings from continuing operations for 2024 were $2.9 billion, with adjusted EPS increasing by 56% to $5.22 per diluted share[10][7]. - In Q4 2024, revenue increased 3% year-over-year to approximately $2.6 billion, with adjusted EBITDA of approximately $1.1 billion and an adjusted EBITDA margin of 42.9%, up 103 basis points[5][6]. - Revenue for Q4 2024 was $2,599 million, a 3.5% increase from $2,512 million in Q4 2023[41]. - Gross profit for the year ended December 31, 2024, was $3,804 million, compared to $3,656 million in 2023, reflecting a growth of 4.1%[41]. - Operating income for Q4 2024 increased to $494 million, up from $326 million in Q4 2023, representing a 51.5% increase[41]. - Net earnings attributable to FIS for the year 2024 were $1,450 million, a significant recovery from a loss of $6,655 million in 2023[41]. - Basic earnings per share for continuing operations in Q4 2024 was $0.57, compared to $0.11 in Q4 2023, marking a substantial increase[41]. - Total revenue from continuing operations for the three months ended December 31, 2024, was $143 million, compared to $156 million for the same period in 2023, representing a decrease of 8.3%[69]. Shareholder Returns - The company repurchased $4.0 billion of shares in 2024 and plans to repurchase approximately $1.2 billion in 2025, maintaining a dividend payout ratio target of approximately 35% of adjusted net earnings[4][7]. - Adjusted free cash flow for 2024 was $1.8 billion, with $4.8 billion returned to shareholders through share repurchases and dividends[18][17]. Revenue Segments - Banking Solutions revenue for Q4 2024 was $1.7 billion, a 1% increase on a GAAP basis and a 2% increase on an adjusted basis, while Capital Market Solutions revenue increased by 9% to $821 million[12][14]. - The Banking Solutions segment generated $6.892 billion in revenue for 2024, a 2% increase from $6.743 billion in 2023[47]. - The Capital Market Solutions segment reported revenue of $2.979 billion in 2024, up 7% from $2.766 billion in 2023[47]. Debt and Cash Flow - The company reported total debt outstanding of $11.3 billion as of December 31, 2024, with net cash provided by operating activities for the year totaling $2.2 billion[17][18]. - Cash and cash equivalents at the end of 2024 were $1.946 billion, down from $4.414 billion in 2023, a decrease of 56%[45]. - The company reported a net cash provided by operating activities of $2.175 billion in 2024, compared to $2.078 billion in 2023, an increase of 4.7%[45]. Cost Management - The company’s cost of revenue for Q4 2024 was $1,622 million, up from $1,542 million in Q4 2023, indicating a 5.2% increase[41]. - Selling, general and administrative expenses decreased to $483 million in Q4 2024 from $539 million in Q4 2023, a reduction of 10.4%[41]. - The company incurred acquisition, integration, and other payments of $475 million for the year ended December 31, 2024, compared to $370 million in 2023, indicating a 28.4% increase in such costs[59]. Discontinued Operations - The company reported a net loss from discontinued operations of $23 million in Q4 2024, compared to a gain of $188 million in Q4 2023[41]. - Earnings from discontinued operations for Q4 2024 were a loss of $23 million, compared to a profit of $187 million in Q4 2023, marking a significant turnaround[65]. - The separation of the Worldpay Merchant Solutions business resulted in a loss on sale of disposal group of $578 million for the year ended December 31, 2024[76]. Worldpay Business - FIS completed the sale of a 55% stake in its Worldpay Merchant Solutions business, retaining a 45% equity interest in a new joint venture, Worldpay Holdco, LLC[2][3]. - Worldpay Holdco, LLC reported revenue of $1,303 million for the three months ended December 31, 2024, compared to $4,732 million for the eleven months ended December 31, 2024[79]. - The gross profit for Worldpay Holdco, LLC was $651 million for the three months ended December 31, 2024[79]. - The company recorded a cumulative tax benefit of $1.1 billion related to the Worldpay Sale, primarily from the release of U.S. deferred tax liabilities[76].