Fidelity National Information Services(FIS) - 2024 Q1 - Quarterly Results

Financial Performance - Total revenue for 2023 was $9.5 billion, with a 4% year-over-year growth[36] - The company reported a revenue of $14,680 million for FY 2023, exceeding the original outlook of $14,200 - $14,450 million[192] - Adjusted EBITDA for FY 2023 was $6,154 million, surpassing the forecast of $5,900 - $6,100 million[192] - The adjusted EBITDA margin for 2023 is reported at 43.5%, indicating a strong operational performance[110] - FY 2024 revenue is projected to be between $10,100 million and $10,140 million, with adjusted revenue growth of 4.0% to 4.5%[199] Revenue Composition - Recurring revenue accounted for 80% of total revenue, indicating a strong base of stable income[36] - The company achieved a recurring revenue rate of approximately 68% in FY 2023, with a target of ~72% for FY 2024[149] - The issuer processing volume for credit and debit transactions grew by over 5% from 2021 to 2023, reflecting a robust payments business[120] - Approximately 30% of clients utilize multiple solutions from the company, contributing to a 6% growth in revenue per client from 2017 to 2023[145] Growth Strategies - The company is focusing on higher-growth, higher-margin opportunities, which is expected to drive future profitability[18] - A disciplined capital allocation strategy is in place, targeting long-term value creation through organic investments and tuck-in acquisitions[52] - The company is focusing on tuck-in M&A strategies in digital and payments sectors to enhance growth opportunities[126] - The company is focusing on tuck-in M&A and active portfolio management to enhance growth in adjacent verticals[187] - The company aims for a predictable and sustainable revenue growth target of 5% by 2025/2026[125] Operational Efficiency - The adjusted EPS outlook for 2024 has been increased, reflecting improved operational efficiency and cost management[23] - The company is targeting $790 million in operational expense savings through 2026, demonstrating a commitment to cost discipline[23] - The company aims to achieve margin expansion primarily through operational expense savings[197] Market Position and Client Base - The company serves over 6,000 clients across approximately 150 countries, highlighting its extensive global reach[133] - The U.S. Total Addressable Market (TAM) for the company's services is projected to be $74 billion, with a growth rate of 3% from 2024 to 2026[110] - The total addressable market (TAM) for Treasury & Payments is projected at $12 billion, with a revenue CAGR of 14% from 2020 to 2023[146] Technology and Innovation - The company is investing in next-generation technology and platforms to enhance its service offerings and maintain competitive advantage[62] - 90%+ of workloads have been migrated to the cloud, with a clear pathway to 100% adoption by 2024[72] - The cloud infrastructure supports over 200PB of data stored and analyzed, enhancing operational efficiency[66] - The technology platform enables seamless integration with third-party products, enhancing user experience and operational agility[97] - Innovative solution suites are being developed to enhance market competitiveness[200] Client Satisfaction and Performance Metrics - Client satisfaction scores have improved by 15% from 2022 to 2023, reflecting better delivery and service quality[95] - The average time to remediate vulnerabilities has improved significantly, with over 20 billion malicious requests blocked in 2023[70] - The company has achieved a 34% increase in the share of technology capital allocated to high-growth products from 2022 to 2024[80] - Digital revenue for large banks increased by 19% from 2021 to 2023, showcasing significant growth in this segment[118] Future Outlook - The company aims for a revenue growth rate of 7.5% - 8.5% by 2025/2026, supported by next-gen technologies and modernization efforts[149] - The company is positioned to capitalize on growth opportunities with a broad suite of best-of-breed solutions across the financial lifecycle[102] - Future growth drivers include advancements in Banking and Capital Markets sectors[197] - The company aims to unlock significant value with cloud solutions, targeting new markets and reducing costs to serve[76]