Q1 2024 Fidelity National Information Services Inc Earnings Call Transcript
Key Points
- Fidelity National Information Services Inc (FIS) reported a strong start to 2024, outperforming financial commitments with broad-based outperformance across revenue, adjusted EBITDA, and adjusted EPS.
- The company has raised its EPS outlook for 2024, reflecting a sustainable lower tax rate and a higher EMI contribution from its Worldpay stake.
- Fidelity National Information Services Inc (FIS) experienced solid new sales momentum, particularly in digital banking, payments, and risk compliance solutions, expecting this trend to continue.
- The company has increased its share repurchase target for 2024 by $500 million, planning to repurchase a total of $4 billion in shares, demonstrating strong capital return to shareholders.
- Fidelity National Information Services Inc (FIS) has successfully managed cash and tax initiatives, allowing significant financial flexibility and improved full-year EPS outlook.
- Despite overall positive performance, the company's free cash flow was negatively impacted by temporary factors including delayed tax payments and timing of TSA reimbursements, resulting in a lower free cash flow conversion rate of 18% for the quarter.
- Professional services revenue within the Banking segment declined by 14%, reflecting a challenging year-over-year comparison.
- Adjusted EBITDA margin in the Capital Markets segment contracted by 80 basis points during the quarter, primarily due to less favorable revenue mix.
- The company noted that backlog data will no longer be focused on during earnings presentations, which could reduce transparency regarding future revenue expectations from existing contracts.
- While Fidelity National Information Services Inc (FIS) is confident in achieving its full-year cash conversion target, the first quarter's performance was impacted by several temporary items amounting to $195 million.
Good day. Thank you for standing by, and welcome to the FIS First Quarter 2024 Earnings Conference Call. (Operator Instructions)
I would now like to hand the call over to George Mihalos, Senior Vice President and Head of Investor Relations. Please go ahead.
Good afternoon, everyone, and thank you for joining us today for the FIS First Quarter 2024 Earnings Conference Call. This call is being webcasted. Today's news release, corresponding presentation and webcast are all available on our website at fisglobal.com. On the call with me today 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 financials.
Turning to Slide 3. Today's remarks will contain forward-looking statements. These statements are subject to risks and uncertainties as described in the press release and other filings with the SEC. The company undertakes no obligation
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