Q3 2024 Fidelity National Information Services Inc Earnings Call Transcript
Key Points
- Fidelity National Information Services Inc (FIS) delivered strong financial results, with adjusted revenue growing by 4% and adjusted EBITDA margin exceeding expectations at 41.3%.
- The company achieved a 13% year-over-year increase in adjusted EPS, reaching $1.40, and returned $700 million to shareholders through buybacks and dividends.
- FIS reported significant sales momentum, with cross-sell activity up over 20% year-to-date and new sales nearly doubling in the digital business.
- The acquisition of Dragonfly Technologies enhances FIS's digital offerings and creates attractive cross-sell opportunities.
- FIS's Premium Payback loyalty offering had a standout quarter, signing new partnerships with leading companies across various industries, including Apple and Commerce Bank.
- FIS made non-cash adjustments to previously reported financial statements, impacting adjusted EPS for 2022 and 2023, though the impact was immaterial.
- The company faces increased capital expenditures, now expected to be closer to 9% of revenue for the full year, impacting free cash flow conversion.
- Some client conversions have been delayed into the first half of next year, affecting the timing of revenue recognition.
- FIS is experiencing pressure from technology suppliers increasing prices, which has impacted capital spending.
- The banking segment is expected to come in closer to the lower to midpoint of the revenue growth range due to a higher revenue base in 2023 and timing of client conversions.
Good day, and welcome to the FIS third-quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker, Mr. George Mihalos, Head of Investor Relations. Please go ahead, sir.
Thank you, [Sherry]. Good morning, everyone, and thank you for joining us today for the FIS third-quarter 2024 earnings conference call. This call is being webcasted. Today's new release, corresponding presentation, and webcast are all available on our website at fisglobal.com
Joining me on the call this morning are Stephanie Ferris, our CEO and President; and James Kehoe, our CFO. Stephanie will begin the call with a strategic and operational update, followed by James, who will review our financial results.
Turning to slide 3, today's remarks will contain forward-looking statements. These statements are subject to risks and uncertainties as
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