Financial Data and Key Metrics Changes - In 2024, revenue growth accelerated from 3% to 4%, slightly below expectations due to one-time items [9][12] - Adjusted EPS growth was 18% on a normalized basis, exceeding the full-year outlook [12][39] - Adjusted revenue growth for Q4 was 4%, with adjusted EBITDA margin expanding more than 100 basis points year-over-year [37][39] - Total debt stood at 11.3billion,withaleverageratioof2.65x,betterthanthestatedgoalof2.8x[39]BusinessLineDataandKeyMetricsChanges−Bankingrevenuegrew225 billion with double-digit growth potential [27] Company Strategy and Development Direction - The company is focused on commercial excellence, targeting key growth vectors such as digital, payments, and commercial lending [8][33] - Strategic M&A is being utilized to extend and complement the portfolio of solutions, with five acquisitions completed [31][32] - The company aims to return 2billionofcapitalanddeliverdouble−digittotalreturnstoshareholdersin2025[13][52]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinacceleratingrevenuegrowthin2025,supportedbystrongsalesmomentumandnewclientwins[14][34]−Thecompanyanticipatesmarginexpansionof40to45basispointsin2025,consistentwithpriorguidance[49][60]−Managementacknowledgedchallengesinthefirstquarterbutexpectsasignificantpickupingrowthinthesecondquarter[76][135]OtherImportantInformation−Thecompanyreturned4.8 billion to shareholders in 2024, including $1.2 billion in Q4 [12][40] - The company experienced a partial system outage but does not expect any material impact on results or operations [81] Q&A Session Summary Question: Follow-up on banking revenue growth cadence - Management indicated that Q1 will be the low point of the year, with expectations for a sharp increase in Q2 [75][76] Question: Impact of technology outage on numbers - Management confirmed that the outage was not a cyberattack and does not expect a material impact on results [81] Question: ACV growth expectations for 2025 - Management is optimistic about exceeding 9% ACV growth in 2025, focusing on digital, payments, and lending sales [86][88] Question: EBITDA margin impact from upcoming ACV deals - Management expects continued focus on cost discipline to support margin expansion despite product mix challenges [90][92] Question: Free cash conversion trends and outlook - Management acknowledged pressures on free cash conversion but is confident in returning to higher levels in the future [101][140] Question: Unpacking Q4 banking growth - Management provided insights into the contributions from Worldpay and M&A, indicating core growth around 3% in Q4 [112]
Fidelity National Information Services(FIS)2025-02-11 16:49