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Mar 31, 2024
FIS Q1 2024 Earnings Report
FIS presented its strategic vision and financial outlook at the Investor Day 2024, outlining strategies for profitable growth, disciplined capital allocation, and shareholder value creation.
Key Takeaways
FIS held its Investor Day 2024, detailing its strategic vision focused on unlocking financial technology to the world. The company highlighted its focus on high-growth areas, technology modernization, and disciplined capital allocation to drive shareholder value. Key messages included FIS's unique positioning in fast-growing markets and its commitment to delivering strong results through focused strategy and execution.
FIS is uniquely positioned to lead in fast-growing markets due to the blurring of boundaries in financial services.
The company's focused strategy and execution are expected to deliver strong results to shareholders.
FIS is concentrating on high-growth, high-margin solutions and modernizing technology to accelerate innovation.
Disciplined capital allocation is aimed at long-term value creation, with a commitment to compelling shareholder returns.
FIS
FIS
FIS Revenue by Segment
FIS Revenue by Geographic Location
Revenue by Segment
Banking Solutions Revenue
CapyFin.comCapital Market Solutions Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comAll Other Regions Revenue
CapyFin.com Forward Guidance
FIS provided its financial outlook for 2024, including revenue targets, adjusted EBITDA margin, and adjusted EPS growth. The company is focused on accelerating growth, expanding margins, and increasing return of capital.
Positive Outlook
- Revenue between $10.1 billion and $10.15 billion.
- Adjusted revenue growth of 4.0% - 4.5%.
- Banking Solutions revenue growth of 3.0% - 3.5%.
- Capital Markets Solutions revenue growth of 6.5% - 7.0%.
- Adjusted EPS between $4.88 and $4.98, with normalized EPS growth of +10% - +12%.
Challenges Ahead
- Includes High Single Digit negative impact from dis-synergies.
- Refinancing at higher interest rates.
- WAIR (Weighted Average Interest Rate) ~3.9% in 2026 ~2% headwind to Adj. EPS growth
- Effective Tax Rate Rate optimization underway Expect gradual reduction over time
- Worldpay EMI growing 7.5% - 9.5% annually Adj. EBITDA Growth / Debt Paydown / Lower Tax Rate
Revenue & Expenses
Visualization of income flow from segment revenue to net income