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Dec 31, 2021
Global Payments Q4 2021 Earnings Report
Delivered record fourth quarter and full year results and set growth targets for 2022.
Key Takeaways
Global Payments reported strong Q4 2021 results, with adjusted net revenues increasing by 13.3% to $1.98 billion and adjusted earnings per share increasing by 18.3% to $2.13. The company also set growth targets for 2022 and commenced a strategic review of the Netspend consumer business.
GAAP revenues were $2.19 billion, compared to $1.93 billion in the fourth quarter of 2020.
Adjusted net revenues increased 13.3% to $1.98 billion, compared to $1.75 billion in the fourth quarter of 2020.
Adjusted earnings per share increased 18.3% to $2.13, compared to $1.80 in the fourth quarter of 2020.
Adjusted operating margin of 42.0% expanded 50.0 basis points.
Global Payments
Global Payments
Global Payments Revenue by Segment
Revenue by Segment
Merchant Solutions Revenue
CapyFin.comIssuer Solutions Revenue
CapyFin.com Forward Guidance
The company expects adjusted net revenue to be in a range of $8.42 billion to $8.50 billion, reflecting growth of 9% to 10% over 2021, and adjusted earnings per share to be in a range of $9.45 to $9.67, reflecting growth of 16% to 19% over 2021. Annual adjusted operating margin for 2022 is expected to expand by up to 100 basis points.
Positive Outlook
- Adjusted net revenue to be in a range of $8.42 billion to $8.50 billion, reflecting growth of 9% to 10% over 2021
- Adjusted earnings per share to be in a range of $9.45 to $9.67, reflecting growth of 16% to 19% over 2021
- Annual adjusted operating margin for 2022 is expected to expand by up to 100 basis points
- Expects to finalize contract negotiations with Caixabank
- Partnership with Virgin Money
Challenges Ahead
- Presumes continued recovery from the pandemic worldwide throughout 2022
- Unexpected impact of COVID-19 variants
- Difficulties, delays and higher than anticipated costs related to integrating the businesses of Global Payments and TSYS
- The impact of a security breach or operational failure on the Company’s business
- Increased competition in the markets in which we operate and our ability to increase our market share in existing markets and expand into new markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income