Global Payments(GPN) - 2024 Q4 - Annual Results

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].