Fidelity National Information Services Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Will Nance - Goldman Sachs & Company, Inc - Analyst : Hey guys, appreciate you taking the question today. I wanted to follow up on some of the commentary around the cadence of banking revenue growth. I hear you on some of the moving pieces in the first quarter and some of the deals you referenced last quarter. I was just wondering if you could kind of put a finer report on the expectations for the acceleration in recurring over the course of the quarter -- sorry, over the course of the year? And anything that you will call out in terms of cadence of some of the non-recurring headwinds throughout the year. Thanks.

Question: Will Nance - Goldman Sachs & Company, Inc - Analyst : Appreciate that. That's clear. I appreciate the -- some of the math in the first quarter as well. That's a helpful bridge. And then maybe following up a different topic. I wanted to ask about the technology outage in 1Q. Is there any impact from this in the numbers here, either in top line revenue loss or in terms of incremental spending on business continuity. And in practice, just how are you dealing from the fallout of that event? Thanks.

Question: Tien-tsin Huang - J.P. Morgan Securities LLC - Analyst : Hey, thank you so much. Just on the ACV question, it was up 9% in '24. Stephanie, what are you thinking for '25? Can you do better than that? Is the composition going to be more larger deals or could we see a bigger contribution from shorter projects, that kind of thing?

Question: Tien-tsin Huang - J.P. Morgan Securities LLC - Analyst : Yeah, so I thought that office of the CFO -- my follow-up as office of CFO news and hearing some of the wins that you've talked about. Is there an impact on -- specifically within banking, is there an impact on EBITDA margin that we can expect for some of the upcoming ACV and deals that are converting because I heard in the fourth quarter that there was unfavorable product mix. So what can we expect there?

Question: Darrin Peller - Wolfe Research - Analyst : Hey, thanks guys. James, maybe just a financial question to start off. Can you just remind us of the moving parts on the free cash conversion side from the trend line of what occurred throughout the last year. I know we talked about some of the vendors. But more importantly, just the conviction in the trend getting going in the right way for the next few quarters and into the end of '25 and where you really look to see that exit rate going forward?

Question: Darrin Peller - Wolfe Research - Analyst : Okay. Very helpful, James. Stephanie, just a quick one. The -- again, understanding there's been delays, but the specific types of contracts and revenue that you're seeing demand for in the banking side to show the -- on just the timing dynamic, what are you seeing the most excitement for customers right now on the banking side for new business?

Question: Dan Dolev - Mizuho Securities USA - Analyst : Hey guys. Great job here on capital markets. hopefully, you guys will get credit for that performance. I do have a question about unpacking 4Q banking growth. So starting at 2%, there's Worldpay. Like can you unpack, James, for us what's the underlying growth, we think for M&A, Worldpay

Question: Dan Dolev - Mizuho Securities USA - Analyst : Got it. And maybe Stephanie, a little more strategic question. Like how do you feel about the portfolio today? Obviously, there's been a lot of like cheddar about potential changes in the competitive landscape. So if you think about your two businesses, how happy are you with the current portfolio? And what else do you think you could need to boost client overlap et cetera? Thank you.

Question: Jason Kupferberg - BofA Global Research (US) - Analyst : Good morning guys. I just wanted to start on the banking outlook for '25 again. I know we've got the 3.7% to 4.4%. James, can you just put a finer point on the recurring versus the non-recurring growth rate for '25 and just what the Worldpay revenues and banking look like in '25 versus 2024.

Question: Jason Kupferberg - BofA Global Research (US) - Analyst : Okay. That's really clear and helpful. And then I just wanted to ask on the capital markets side, nice solid outlook there for 2025, although I do think it's a touch below the Investor Day target. So just curious if there's any call out there? And if you can just clarify the Demica acquisition contribution to cap markets this year? Thanks guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 1:30PM, FIS.N - Q4 2024 Fidelity National Information Services Inc Earnings Call

Question: Ramsey El-Assal - Barclays - Analyst : Hi, thanks for taking my question. It feels like the 2025 banking guide is pretty contingent on getting that deal backlog implemented on schedule, could the timing shift further at this point? I guess, how much visibility or confidence do you have that these deals will get turned on now when you expect?

Question: Ramsey El-Assal - Barclays - Analyst : Got it. Okay. Super helpful. And then a follow-up for me. The 2025 free cash flow conversion guidance definitely higher than '24, a bit below the medium-term guide set out at Analyst Day. What are the levers that you have, James, to basically get that into the longer-term range from where it will sit in 2025, if all goes as planned? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 1:30PM, FIS.N - Q4 2024 Fidelity National Information Services Inc Earnings Call

Question: Vasundhara Govil - Keefe, Bruyette & Woods North America - Analyst : Hi, thanks for taking my question. I guess the first one I had was on the EMI contribution from Worldpay. It's a pretty healthy number despite the outperformance this year. And just wanted to see how you've guided to that for '25 and if there's room for upward bias this year as well or were done with the easy upside at this point? And I know Worldway revenues were also better this quarter. So any color on that would be helpful as well.

Question: Vasundhara Govil - Keefe, Bruyette & Woods North America - Analyst : Thank you. And just a quick one for you, Stephanie. I know bank M&A seems to be picking up and wanted to get your temperature check. On that, I know in the past, you've said it's a net positive for you guys. Just any additional thoughts around that? And if anything related to that is baked into the outlook today? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 1:30PM, FIS.N - Q4 2024 Fidelity National Information Services Inc Earnings Call

Question: John Davis - Raymond James - Analyst : Hey, good morning guys. Just on the buyback, good to see the $1.2 billion, but I thought it might be a little bit bigger given the lack of M&A last year. So is that more a function of conservatism or there's something bigger in the pipe, is there any comments there?

Question: John Davis - Raymond James - Analyst : Okay. And then just as a quick follow-up. Obviously, we've talked a lot about the banking guide and the shape of the year. But you do need a further acceleration beyond 2Q in the back half. And Stephanie, is that really just all the new wins you've been talking about implementation? And then is there any risk that those implementations slip similar to what happened in Q4 of '24.