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Dec 31, 2023

FIS Q4 2023 Earnings Report

FIS reported fourth quarter and full-year 2023 results, demonstrating positive momentum with financial commitments met and the Worldpay transaction successfully closed.

Key Takeaways

FIS's Q4 2023 results showed a slight revenue decrease of 1% on a GAAP basis to $2.5 billion, but adjusted EBITDA margin expanded by 70 bps to 42.1%. The company is increasing its share repurchase goal by $500 million, reflecting confidence in the business's strength.

GAAP Diluted Earnings Per Share for continuing operations was $0.11, and Adjusted EPS was $0.94.

Including discontinued operations, GAAP Diluted Earnings Per Share was $0.42, and Adjusted EPS was $1.67.

Adjusted EBITDA margin expanded by 70 basis points to 42.1% due to cost efficiencies.

The company increased its share repurchase goal to at least $4.0 billion by year-end 2024, including $510 million repurchased in Q4 2023.

Total Revenue
$2.51B
Previous year: $3.71B
-32.4%
EPS
$0.94
Previous year: $1.71
-45.0%
Adjusted EBITDA Margin
42.1%
Previous year: 43.2%
-2.5%
Gross Profit
$975M
Previous year: $1.52B
-35.8%
Cash and Equivalents
$440M
Previous year: $2.19B
-79.9%
Free Cash Flow
$1.1B
Previous year: $643M
+71.1%
Total Assets
$55.1B
Previous year: $63.3B
-12.9%

FIS

FIS

FIS Revenue by Segment

Forward Guidance

The Company is introducing first quarter and full-year outlook and, for the full-year, is projecting accelerated revenue growth, expanding adjusted EBITDA margins and year-over-year adjusted EPS growth.

Positive Outlook

  • Projecting accelerated revenue growth for the full year 2024.
  • Expecting expanding adjusted EBITDA margins for the full year 2024.
  • Anticipating year-over-year adjusted EPS growth for the full year 2024.
  • First quarter 2024 revenue is projected to be between $2,430 million and $2,455 million.
  • Full year 2024 revenue is projected to be between $10,100 million and $10,150 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income