Q2 2024 Fidelity National Information Services Inc Earnings Call Transcript
Key Points
- Fidelity National Information Services Inc (FIS) reported its sixth straight quarter of outperformance, demonstrating strong execution across multiple growth vectors.
- Revenue growth in the second quarter was 4%, with acceleration across both banking and capital markets segments.
- Adjusted EBITDA margin expanded by 110 basis points year-over-year, driven by continued cost savings and favorable revenue mix.
- The company raised its full-year financial outlook for the second consecutive quarter, reflecting strong performance and visibility into future growth.
- Cross-sell activity across the enterprise grew by 15% in the first half of 2024, highlighting successful sales transformation efforts.
- Professional services revenue declined by 13% year-over-year, although it is expected to stabilize and reaccelerate in the second half of the year.
- Recurring revenue growth slowed slightly due to the deconversion of a large West Coast bank sold out of receivership.
- The company faces significant non-recurring revenue headwinds, particularly in the banking segment, which could impact overall revenue growth.
- The separation of Worldpay has introduced some lumpiness in the EMI contribution, making it challenging to predict a normalized number.
- Despite strong performance, the company remains exposed to macroeconomic pressures and regulatory risks, which could impact future growth and profitability.
Good day and welcome to the Fidelity National Information Services second 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. Sir, the floor is yours.
Thank you, Shareen. Good morning, everyone, and thank you for joining us today for the FIS second quarter of 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.
Joining me on the call this morning are Stephanie Ferris, our Chief Executive Officerand President; and James Kehoe, our CFO. Stephanie will begin the call with the 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.
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