Fidelity National Information Services, Inc. Q4 FY2024 earnings call

• 2024 was a year of progress with execution on strategy, refocused sales on key growth vectors, and M&A. • Revenue growth accelerated to 4% in 2024, though slightly below expectations due to onetime items. • New sales momentum continued, with core wins in money at rest, digital sales growing 70% YOY, new wins in money in motion including partnership with Affirm, strong sales in money at work, and products recognized by various firms. • Focus on office of the CFO market with comprehensive suite of capabilities and new solutions like Treasury GPT.

Adjusted revenue growth was 4% overall. Banking grew 2% in the quarter, slightly below outlook due to three unexpected items; recurring revenue growth of 1% included a negative impact from a contract recognition adjustment, with nonrecurring revenue declining 3%. Capital markets had adjusted revenue growth ahead of expectations at 9%, with strong recurring revenue growth of 7%, and adjusted EBITDA margin expanded 190 basis points. Professional services advanced 16%.

• Expect revenue growth to accelerate to 4.6% to 5.2% in 2025. • Anticipate margin expansion of 40 to 45 basis points. • Project adjusted EPS growth of 9% to 11%. • Target leverage remains 2.8x, and cash conversion expected to improve from 77% in 2024 to 82% to 85% in 2025. • Raise share repurchase goal from ~$800 million to $1.2 billion.

• Less favorable working capital performance impacted cash conversion in 2024; actions being taken to improve working capital conversion. • Potential contract implementation delays shifted revenue, affecting quarterly growth.

Q: Will Nance asked about the cadence of banking revenue growth and nonrecurring headwinds.

A: Stephanie Ferris and James Kehoe discussed that Q1 will be the low point, with second quarter expected to sharply increase, and confidence in visibility into Q2 and beyond due to strong ACV sales and commercial excellence.

Q: Darrin Peller asked about free cash conversion.

A: James Kehoe explained factors like aggressive suppliers, net working capital, and collection issues, but conviction in trend improving with focus on governance and processes.

Q: Jason Kupferberg asked about banking outlook and Worldpay revenue.

A: James Kehoe and Stephanie Ferris clarified that Worldpay revenue is not a growth driver, with core business ex Worldpay growing faster, and Worldpay revenue expected to be a slight headwind in 2025.

Q: Ramsey El-Assal asked about banking deal implementation timing.

A: Stephanie Ferris stated confidence in 100 basis points of implementations, with some acquisitions close to closing and others in motion.

Q: Vasundhara Govil asked about Worldpay EMI contribution and guidance.

A: James Kehoe mentioned Worldpay had a strong fourth quarter, with guide aligned and EBITDA performance driving the number.