Q1 2020 Earnings Call

At this time, all but just as I was talking about.

They do open the lines the question and answer it does your participation in the call. Please press Star then Sheila.

As of Monday Southeast, Florida.

I just sounded like you tend to talk to your house.

In your wife's I've got Investor Relations.

Please go ahead.

Good morning, and welcome to global payments first quarter 2008, Twinkie Conference call.

We begin I'd like to remind you that some of the comments made by management. During today's conference call contain forward looking statements about expected operating and financial result.

They are subject to risks uncertainties and other factors, including the impact of covered 19.

And economic condition on our future operation that could cause actual results could differ materially from our expectation.

Certain risk factors inherent in our business are set forth in filings with the FCC, including our most recent 10-K and subsequent filings we caution you not to place undue reliance on these statements weren't looking statements. During this call speak only as of the beat it this call and we undertake no obligation to update them.

Some of the comments made refer to non-GAAP financial measures such as adjusted net revenue adjusted operating margin and adjusted earnings per share, which we believe are more reflective of our ongoing performance.

For a full reconciliation of these and other non-GAAP financial measures to the most comparable GAAP measure in accordance with <unk> regulation.

Our press release furnished as an exhibit to our form 8-K filed this morning, and our trended financial highlight both of which are available in the investor relation area of our website at www Dot global payment Inc. dotcom.

Joining me on the call our Gaslog CEO, Cameron Brady, President and COO, and Paul <unk> Senior Executive Vice President and CFO now I'll turn the call over to Jeff.

Thanks, winning.

We enter 2020 with our business as healthy as it ever been during my tenure at global payments.

And our performance in the first quarter part or the impact of coded 19 reflected that shrink.

The soundness of our strategy and the consistency of our execution.

We believe that these underlying trends what position global payments to resume its track record of market leading growth when do you have worldwide economy inevitably returns.

The company's results in January February and through the first two weeks of March exceeded our internal expectations, excluding the impact from code. The 19 in our Asia Pacific region.

However, starting in mid March the virus began to impact the company's results significantly in North America in Europe as governments took actions to encourage social distancing and implement shelter in place directors.

The deterioration accelerated toward the end of March as a number of countries and localities adopting restrictive measures meaningfully increased.

Notwithstanding the impact of the virus, we were successful in winning meaningful new business in the first quarter.

These competitive takeaways highlighted the underlying strength of our pure play payments model is being recognized by some of the most complex and sophisticated customers.

They also provide us with continued confidence in further sustained share gains as a partner of choice at scale.

Cutting edge companies.

First we are delighted to announce that truest financial Corporation has selected global payments to be its provider issuer processing services Fritz combined businesses.

Truest is the sixth largest commercial bank in the United States, serving approximately 12 million consumer household and a full range of business clients with leading market share in many of the most attractive high growth markets in the country.

Importantly, truest as a bold vision to meaningfully increased investment in innovative technology into creek distinctive client experiences.

Truest strategy to transform its payments businesses via technology aligns perfectly with our Tces issuer business and provides further validation of our market, leading technologies products services and the quality and competitiveness of our team members.

We could not be more pleased to welcome truest to the global payments family of partners and launch or new services in the future.

Our issuer business has a strong track record of innovation to the benefit of our customers.

Contact list is a great example, and we have seen near 30% you're on your growth in recent periods.

We also are partnering with the car brands and digital wallet providers to further accelerate contact less growth in light of the virus.

In addition, she's this will be the first issuer technology partner to offer visas, new installments solution at the point of sale as an enhancement to our existing capabilities.

Second we're very pleased to announce that Synovus financial Corp has selected global payments to be its new exclusive merchant acquiring Parker.

So no. This is a leading regional commercial bank with 299 branches in the southeast region of the United States.

Our new partnership, which I know this confirms the wisdom of the global payments in two pieces merger.

We do not believe that either company individually would have been position to win this business.

We already launched our partnership with Snow this on April 1st.

Third we continue to not significant sales wins in our technology enabled businesses during the quarter.

Our partnered software business, which we recently rebranded as global payments integrated.

Launch 30, new partners in the first few months of 2020.

We are tracking well ahead of where we were at this time in 2019.

Which was a year that marked a record for new partner production.

Camera will provide more detail shortly.

We also saw a significant new business successes across our own software portfolio.

For example, we are delighted to announce new wins with inspire brands and focus brands, including anti and CKD restaurants and arby's.

In addition, we continue to make meaningful progress with the rollout of our deal QSR cloud based SaaS point of sale solution to new and existing customers such as long John Silvers and dark spreads.

We've also begun testing this solution for potential placement throughout the restaurant brands International family of more than 26000 global restaurants.

These wins contributed to genio achieving record new bookings for its QR QSR business this quarter.

It is worth highlighting that deal provides enterprise QSR customers with cutting edge software digital wallets drive to technologies mobile ordering capabilities and integrations with leading delivery partners through our omni product.

Back.

So the first quarter the number on the mobile and online orders process bridging you'll customers increased over 50% sequentially. That's QSR is shifted toward online fulfillment.

Fourth and finally, we continue to make progress with our E commerce, and omni channel businesses, which generated impressive new sales wins, including a large multinational telecommunications carrier or markets outside the United States.

One of the largest multinational package delivery companies in Asia.

And a leading worldwide foodservices delivery business.

These businesses produced the best financial result for us in the quarter, highlighting our leading position in worldwide E Commerce and omni channel acceptance.

And that trend has continued into April with absolute growth year over year in a number or virtual markets.

During this challenging time, our top priority remains a health and safety of our team members customers partners and the communities in which we live in more.

I want to thank our nearly 24000 team members for their tremendous efforts an unwavering focus on our customers. During this unprecedented crisis that has allowed our business and operations to continue to perform normally.

While these are difficult times, we are well positioned given the strength of our business model and the dedication and focus of our employees.

I'm, especially proud of our Netspend business, which is facilitating the rapid distribution of much needed funds under the care Zack.

We believe that Netspend. It was one of the first companies to provide stimulus funds to customers ahead of both financial technology peers and financial institutions.

It was critical funds were made available on average four days before most of your other providers in the market and ahead of its normal two days faster operating model.

Because netspend has the end and infrastructure already in place to process government DCH files upon receipt.

During April we processed over half a million deposits accounting for over $1.2 billion in stimulus payments to American consumers dispersed by the IRS.

In the coming weeks, we expect additional governmental programs to fun and a number of our partners will assist consumers, who receive paper checks by enabling deposits into existing or new netspend accounts to our mobile app or directly onto their phones virtually via our Samsung partnership.

That's just one example, together with Mastercard, we've helped facilitate 711, new transact prepaid products to enable under and Unbanked individuals and families to receipt much needed funds faster than a paper check through 711 stores.

Our powerful combination with Tces provides us with multiple levers to mitigate headwinds that we may face from depend on it.

We made significant strides on or integration this quarter.

We continue to anticipate delivering at least $125 million in annual run rate revenue synergies and at least $350 million in the annual run rate expense synergies within three years of the murder close.

In addition to the merger synergies we have now implemented additional cost initiatives to help address the anticipated impact of coded 19 on our business.

We expect these actions to deliver at least an incremental $400 million an annualized savings over the next 12 months.

These amounts represent a more than doubling of the three year annualized merger expense synergy benefit.

In just one year.

We have already initiated these expense actions in a series of ways beginning early in the second quarter.

As you'll hear from Paul our liquidity free cash flow and balance sheet our healthy.

These efforts are intended to best position global payments, so whether near term disruptions and emerge from the crisis in the same strong position with which we entered.

And we continue to invest in our businesses despite the impact of the virus and the worldwide economy.

Our long term plans to grow our technology enabled businesses expand our omni channel efforts and target the most attractive markets have not changed.

The uniqueness of our business mix, which is dramatically different today than it was during the last recession has been a source of strength during the current crisis.

With that I'll turn the call over to Cameron.

Thanks, Jeff and good morning, everyone. I would also like to express my sincere appreciation to all of our team members, who are provided exemplary support to our customers. During this challenging time.

As Jeff mentioned, even with the vast majority of our nearly 24000 team members worldwide working from home since mid March our business has continued to operate seamlessly.

For the relatively few team members, whose job function require them to be in one of our offices, we have implemented appropriate social dispensing practices made anti bacterial hand, sanitizer mass widely available.

An increase in frequency of cleaning of key areas.

We're out there is crisis, we've continued to put the health and wellbeing of our team members first while also supporting our customers and safeguarding our business.

Over the past several years, we've made significant investments in modernizing the operating environments and technology that support day to day execution in our business.

But largely cloud based systems and collaboration tools, we use globally facilitated a smooth transition of our operations to business continuity mode.

Significant utilization of work from home arrangements.

This has allowed us to sustain outstanding service to our customers also enabling continued strong execution of our pure play payment strategy as evidenced by the significant new wins in the quarter.

In our merchant solutions business global payments integrated is off to a record start to the year in terms of new partner wins and is already seeing benefits of our merger with Jesus.

We recently signed a new partnership agreement with a large multinational software provider based on our ability to deliver the genius Pos solution together with our best in class ecosystem.

While also enabling its customers as a board electronic tips by the Netspend car pay card product.

Global payments was uniquely positioned to provide this comprehensive solution, which reflects the powerful combination of highly complementary capabilities brought together by our merger with teachers.

Our strategy of delivering the full value stack in key vertical markets continues to produce deeper richer and more value added relationships with our customers.

In addition to the deal highlights a Jeff already provided our higher education business had its strongest ever bookings performance in March and advanced MD saw bookings increased 35% year on year for the first quarter.

Widely due to our ability to deliver cloud based technology solutions, including telemedicine capabilities to physician practices throughout the U.S.

You know hurtling business, we delivered outstanding growth of over 30% in online payments during the first quarter as we continue to see strong customer demand for our omni channel solutions.

Notably this growth accelerating the March as we've installed three times as many new ecommerce merchants as anticipated largely due to significant demand for online ordering capabilities.

We also began deploying vital Pos through our Heartland distribution channel in early March exactly as we said, we would and we remain confident in our ability to execute on our sales plan for this distinctive solution.

Further we now plan to deliver vital Pos to Canada later, this quarter and acceleration from our original target of Inc. third quarter launch.

In Canada, our new partnership with days Ardennes is off to a terrific start.

Merchant migration and leave referrals from all branches commenced at the beginning of March and we received nearly 1500 referrals before the current disruption.

Our early successes reinforce our confidence in this new partnership that combines global payments differentiated technologies and payments capabilities with days Ardennes market, leading position in Quebec.

In Europe, we successfully launched our social commerce solution in key markets, enabling our customers to accept payments through social networks in the last few weeks, we launch this product with a new leading national veterinary chain and a high in restaurant group in the UK and also signed Sunday, which is currently deploying this solution to.

All of its dealerships in the region.

Additionally, we recently secured a can that it would take away in the UK by enabling a leading building society would call center payment solutions for work from home environments.

We successfully executed a new acquiring contract with this customer and distributed software to its call Center staff in mortgage brokers from start to finish in less than three days.

And in Asia, we saw strong new cut sales performance, particularly in our E Commerce business. Despite could've been 19 gripping that region for the majority of the quarter.

We've been able to several of our large retail customers to accelerate their shift E Commerce and signed new E Commerce partnerships with two large multinational health and wellness companies.

Turning to our issuer business. In addition to the truth when we finalize an agreement with Scotia Bank to convert is Canadian consumer credit card and load accounts.

And we have executed a multi room you multiyear renewal agreement for its north American consumer and commercial credit card business.

Additionally, we successfully signed a new multiyear processing and managed services agreement with UK based yacht encompassing there recently acquired credit card portfolios.

And extended several other existing client agreements, including with Barclay card and bank of Montreal.

We also converted over 300000 accounts during the period and have a robust pipeline with implementation stage throughout the year and into 2021.

Delivering superior support to our customers are the key pillar of our business model and we have continued to do so when this unprecedented environment without exception.

At this pandemic, we remain focused on supporting customers across all of our businesses, including our small to medium sized merging customers in the markets most impacted by the virus.

We have worked tirelessly to assist these customers by enabling new capabilities to support their business operations.

Including rapidly equipping merchants, who did not previously sell online with a bull omni solution, particularly in the restaurant vertical market.

In fact in North America alone, we have added over 1800, new restaurants to our online ordering platform since mid March.

Likewise, we have been facilitating social distancing and no contact commerce by enabling mobile pay contact list and mobile AUD acceptance at merchants, who had not previously accepted these form factors.

As a worldwide leader in NFC deployment, we rapidly enabled contact us acceptance for our merchant customers, which also positions us well for the future as we expect the secular shift from cash to electronic forms of payments to accelerate post the pandemic.

We've also provided customers and markets worldwide with virtual terminals to allow them to accept orders over the phone.

For healthcare customers that advanced MD, we've been able nearly 1500 practices with tele medicine capabilities delivering the technology for more than 80000 virtual visits in the last two weeks of March Hello.

In addition to these efforts we are providing economic relief in a variety of forms to our customers, including waving certain fees such as as in Pos payments as well as online order fees.

We've also granted free trial or reduced feeds for new enabled services and established a charitable program targeted at our most vulnerable merchant customers that provides pre would pay cards that can be used to support their staff at no cost.

Further we are waving setup fees and the first 90 days of subscription fees for our virtual call card add on solution to brick and mortar gift card customers.

And have extended free trial period of our analytics and customer engagement platform that we are deploying hurtling business.

Lastly, we have been leveraging our relationship with our lending partner in the U.S. to facilitate payroll protection program loans for customers across our distribution platforms.

To date, our lending partner has placed thousands of DPP loans for our customers.

Our issue business has also maintained strong operational stability in this call centers as we work to support our issuer clients during a period of very high call volumes.

Additionally, we are working with issuers to enable cardholder in small business relief programs, including supporting the delivery of a range of payment options as consumers and businesses seat predictable ways to manage budgets and expenses during this challenging time.

While we continue to manage through the situation with the difficult relentless focus on execution, you've come to expect from global payments.

We also have an eye on the future and are working to ensure the business is well positioned for the inevitable recovery.

We are revamping sales and marketing strategies to align with our expectations for market reopenings around the globe and to emphasize those solutions most in demand.

In the U.S., we are also aggressively recruiting and onboarding new sales professionals into our on channel, which we can do in a cost effective manner given our model.

And what we are reducing expenses, where appropriate we continue to invest in products and capabilities that will further differentiate global payments in the future.

There is no question the competitive environment will look different on the other side of this crisis and we're poised to benefit in the long term due to the distinctiveness of our technology enabled airplay payment strategy.

With that let me turn the call over to Paul.

Thanks, Cameron I want to reiterate how pleased we are with the way in which our team members have responded during this crucial time to ensure business continuity delivered the highest standard of support and execution for our customers and allow for us to achieve strong financial performance.

For the first quarter total company adjusted net revenue was 1.73 billion, reflecting growth of 108% over 2019 and ahead of our preliminary expectations on April six on a combined basis, our revenue increased slightly from the prior year, including a rough.

50 basis point headwind from the impact of negative foreign currency exchange rates.

Adjusted operating margins expanded an impressive 300 basis points to 39% for the quarter and well above the 250 basis point annual expansion target, we mentioned on our last call.

As a result, we were able to deliver strong adjusted earnings per share growth of 18% to $1.58, which also includes a roughly 100 basis point impact from adverse foreign currency exchange rate movements.

This first quarter bottom line performance was better than anticipated when we previewed our first quarter on April six.

Notably from the start of the quarter through the first two weeks of March our performance was exceeding our growth expectations compared to last year, excluding the impact of the virus, we were already experiencing in the Asia Pacific region.

Our merchant solutions business drove the outperformance while results for our issuer and business consumer segments were tracking relatively inline with our expectations through that period.

However in the second half of March the spread of Cobot 19 began to impact our results meaningfully in North America and Europe. In addition to Asia Pacific.

As Jeff and Cameron both mentioned it was a dynamic quarter for all of our businesses and I want to provide some color on each segment.

First adjusted net revenue in merchant solutions increased 2% on a combined basis to 1.1 billion for the first quarter, which includes nearly a 100 basis point headwind from currency, while adjusted operating margin improved 180 basis points to 45.4 per.

Uh huh.

Before the spread of Cobot 19, we were experiencing low double digit adjusted net revenue growth in this segment, excluding the impact of Cobot 19 in Asia Pacific, which negatively impacted results consistent with the 15 million drag we had previously disclosed.

This strength was largely attributable to our technology enabled businesses, including global payments integrated which was tracking toward mid teens growth, but the lions share of the quarter.

This business continues to benefit from record new wins strong same store sales and lower attrition rates driven by our ability to provide a truly integrated ecosystem across more vertical markets and more geographies than our peers.

We also maintained our consistent track record of strong growth in our vertical market software portfolio ahead of the cobot 19 impact.

As Jeff and Cameron indicated booking trends across the portfolio remains strong with record achievements at several of our businesses during the period.

Our relationship led businesses were also seeing good momentum outside of Asia Pacific was for the spread of Cobot 19.

Notably in North America, adjusted net revenue was tracking up low double digits ahead of our expectations and our European businesses were delivering high single digit growth.

For the full quarter as in store volumes came under pressure our E Commerce and Omnichannel business is served as a partial hedge.

As Cameron noted, we delivered strong growth and online sales at Heartland during the quarter, while in Europe, we saw high single digit growth in the UK and roughly 20% growth in Spain as more spending move online.

He com omni revenue was also up double digits and APAC during the first quarter.

Moving to issuer solutions, we delivered a record 442 million in adjusted net revenue for the first quarter representing growth of 150 basis points on a constant currency basis.

As I mentioned previously this business was tracking in line with our expectations too early March for roughly 3% growth with underlying trends to that point remaining consistent with our long term outlook for mid single digit growth.

Adjusted segment operating margin expanded a very strong 430 basis points to 39.5% as we continued to drive efficiencies and make the pivot towards the cloud in this business.

We also added over 13 million accounts on file this quarter producing yet another record transaction growth was in the mid single digits.

We experienced strong volumes and managed services as cardholders ramped up the frequency of the interactions with trusted financial institutions in the quarter.

Finally, our business in consumer solutions segment delivered adjusted net revenue of 204 million down nearly 7% from the prior year, primarily due to headwinds from the CFPB prepaid rule and seasonal tax impacts.

Absent that adjusted net revenue was roughly flat for the quarter marketing, marking a continuation of the underlying trends from the fourth quarter of 2019.

Adjusted operating margin for the quarter for this segment was 25.7% and was again better than our expectation. We continued to be pleased by the performance of our DTA products with account growth of over 30% from the prior year period.

As Jeff mentioned, we saw substantial benefit in early April from the processing of stimulus payments in this segment.

In sum, we delivered solid operating performance across all our segments do outstanding execution and we also benefited from the early and rapid cost actions, we took to position our company given the current environment and for the eventual recovery.

As it relates to cost actions as Jeff highlighted we have already implemented expense initiatives that will translate to roughly 100 million per quarter incremental cost benefits for the balance of 2020.

Our focus has been to streamline discretionary spend that includes cuts to TNT and marketing budget reductions in executive pay another salary initiatives and additional targeted actions across the organization.

We have also been intentional about these measures to allow our strong growth momentum to continue when a more normalized operating environment resumes.

From a cash flow standpoint for the quarter, we generated adjusted free cash flow of approximately 400 million, which was inline with our expectation.

We also exited Q1 with roughly 1.3 billion of available cash, including 640 million in excess of our operating cash needs.

This excess cash increased approximately 300 million from year end.

We've adjusted our capital spending outlook for the year from the bought high 500 million to low 600 million range, we talked about on our last call and now expect to be in the 400 500 million range or roughly 100 million less for the year.

We invested 105 million of cash in the first quarter. It was focused on new products and technologies to ensure we continue to build upon our leading portfolio a pure play payment solutions, which is consistent with our newly revised estimates.

Early in the quarter. We finished the buyback activity started in the fourth quarter purchasing 2.1 billion of our shares for approximately 400 million.

We did however, suspend repurchases in early March.

We ended the quarter with the leverage position of roughly 2.45 times on a net debt basis or roughly 2.75 times on a gross basis consistent with year end.

Our strong investment grade balance sheet in combination with our stable free cash flow generation provides us with ample capital and financial flexibility to navigate through this challenging time.

With 2.9 billion of liquidity, including our available cash and Undrawn revolver and no significant required debt repayments until our maturity into April 2021, we're truly in a position of financial strength.

We will continue to monitor and leverage market opportunities to maintain that strong position over the long term.

Although trends are dynamic we've seen some stabilization and improvement in late April from the lower levels, we have seen several weeks ago.

Specifically volume trends in our merchant business have held fairly steady and begun to recover modestly led by our technology enabled business.

In addition markets that have recently reopened such as China and in Central Europe have seen similar stabilization and improvement trend in domestic volumes.

Our issuer solutions business remains resilient as bundled pricing and managed services volumes are helping to mitigate the impact of transaction level declines.

Our international issuing business also remains a bright spot with absolute growth in the low single digits. Despite the macroeconomic environment.

These trends have been offset in part by what we're seeing in our commercial card area due to limited travel spending by corporations and government.

Similar to our experience in merchant issuing trends have stabilized and recovered somewhat in selected verticals over the last several weeks.

Finally business and consumer solutions has benefited from processing substantial stimulus funds and we do expect to recapture some of the loss revenue from last quarter related to the extended tax deadline over the next several months.

Additionally April is the first month, where we do not have CFPB headwinds for comparison.

And while we're not providing guidance at this time I think it's worth parsing our business in light of the current environment.

First we have several businesses that have been relatively more resilient through this period. This includes both our issuer and business consumer segments, which combined to account for roughly 35% of our adjusted net revenue.

Additionally, roughly half of merchant solutions adjusted net revenue has been generally less economically sensitive. This includes our omnichannel business mobile payments integrated and certain vertical market solutions like venial, MD and our University business. So two thirds of our businesses have.

In somewhat insulated from fluctuating consumer spending trends with that said it is difficult to predict when and how the current environment would change. However, we're confident we will emerge stronger due to the significant cost initiatives being implemented to protect our earnings cash flows and investment grade balance sheet.

All in all we're pleased with how we were positioned given the unprecedented times, we're operating in as a company and with that I'll turn the call back over to Jeff.

Thanks, Paul our recent significant wins highlight the wisdom of our partnership with Jesus and the strength of our combined business. We have already taken and we'll continue to take actions to best position our company for success as a worldwide economy returns to growth.

In the interim we're fortunate to be confirming this prices from a position of strength.

The competitive landscape will no doubt change as a result of this crisis and we believe that we will capitalize on those changes.

And continue to gain share organically and through further consolidation.

We believe that the virus will continue to accelerate the ongoing shift towards further digitization and payments and the movement toward online commerce globally.

We're also grateful for our market leading position in software across multiple vertical markets highlighting the diversity of our business methods.

We believe that we will continue to be the beneficiary of trends that will be further catalyzed by cousin 19.

While they are not immune to the current economic climate.

As well position as we has ever been with a balanced portfolio and payments and vertical market software at scale.

We expect our strategy of leading with software owned and partner with an emphasis on Premier Omnichannel solutions in the most attractive markets will serve us well into the future.

Winning.

Before we begin our question answer session I'd like to ask everyone to limit their questions line with one follow up to accommodate everyone in the Q.

Thank you.

Operator, we will now go to question.

Thank you.

Ladies and gentleman asked the question. Please press Star then one when you touched on telecom.

Hi, Good question I grass Valley.

Let me if your question. Please press the pound Q1 moment please.

Our first question comes from Bryan Keane of Deutsche Bank. Your line is okay.

Hi, guys good morning.

And just thinking about the adjusted operating margin as we're going in the second quarter.

How should we think about modeling given that it's likely to second quarter will be.

Hopefully the bottom of the impact are or will be the the worst of the impact in the second quarter.

And with that thinking about the the 400 million of additional cost saves where's that coming from exactly and and is that sustainable post.

The code 19 impact after we get a year out thanks.

So Brian this is Paul as it relates to the margin and I'd say a couple of things. One obviously, we're very pleased to have the margin expansion at the 300 basis point level that we've had in Q1 is that kind of give you our run rate of where we were at from a from a total quarter standpoint, the second thing I'd point to is it.

Additional cost Takeouts and if you kind of looked at that on a year over year basis, you can see that thats roughly about six and a half or center. So if you took that hundred million per quarter and put those in the quarters added kind of give you. The first edition there that you would make on what we would do on the margin side.

And then lastly, as you just kind of make your assumptions as it relates to what volume would do from a revenue side and kind of incremental kind of cost. There you would just try to take those margins and kind of play through the various businesses and that would give you kind of the margin picture you look in par you are right in the sense that twoq, particularly in light of the recovering.

Arguments that we're seeing would be the trough from a margin standpoint, but we certainly are moving into this quarter here in a very strong position with with the cost initiatives that we already have in place.

And I'd say under second question, Brian about the 400 million and the.

Outlook going forward I would say probably about half that call about 200 million I would say our permanent ongoing.

Reductions the other 200 million are really thing that we've done like salary reductions and everything else in light of the buyer as having said that though if we were to face a situation where things Didnt continue.

To improve obviously, we do other things to get back to the $400 million in the first place. So I believe the other day its independent what we see al as Paul mentioned, we can see stabilization and improvement in the volumes, but if we don't continue to see that than I am confident that will take other actions to return to the 400 million in the first list.

Got it and just as a quick follow up can you talk a little bit Jeff maybe about the health of of the base.

Do you expect bankruptcies to rise and how much do you think that PPP program will help.

Yeah, I'll start last camera to join in of course as well, so I would say that.

We've already seen stabilization in April as you mentioned in the press release and Paul commented on and we've seen kind of continuing improvement.

We really throughout April into why into early May. So I think that the answer is we'd like to trends that we're seeing in terms of improvement it's kind of too early to say really what the permanent impact is.

Is going to be but we have seen through the end to be able to really make continuing improvement and that's obviously very good to see as we also said in our prepared comments, Brian in those markets that were a bit ahead of the United States like in Continental Europe. For example that at reopened earlier than than some of the state's United States, we've seen pretty significant improvement in those market.

As a as well so let's say it's too early to tell what the long term impact really is would you like to sequential improvement that we've been experiencing.

Yes, Brian it's Kevin the only thing I would add to that is although our business skews towards SMB sort of globally, it's not really micro margin. So our average merchant processing volume is pretty healthy as we've talked about historically somewhere in that have a half a billion dollar year or excuse me have a half a million dollars year range were above so if you look at the overall health of the port.

Folio I think we'll be generally in a pretty good place overall, given the nature of the businesses that we typically server around the globe size wise.

Got it thanks and stay healthy.

Thanks, Brian Thanks, Rob.

Thank you. Our next question comes from David Togut.

Evercore ISI your line is open.

Thank you good morning glad to hear your voice is glad youre all well.

Just to start off can you help us dimension. The revenue you expect from the truest contract and associated timing.

And then I'll just ask my follow up upfront on capital allocation priorities.

Jeff at the time, you announced the Tcs acquisition you focus on the fact that it was all equity because you wanted to keep a strong balance sheet.

How are you thinking about deploying capital in this environment.

Seller expectations are likely coming down.

And David Jeff I'll start on both those questions of course last Paul to comment too. So what I'd say about true in terms of timing is we expect that a conversion will happen for the tail end of 2021 and that we have some kind of a full launch.

Early in 2020 to set the timing on true as you know really are not going to publicly comment on the revenue or the size of it but what I would say as we said in our prepared comments. This morning is it's a sixth largest commercial bank in the United States with $12 million consumer households in many businesses. So.

I'd say atop a top six bank in the U.S. is a pretty big is a pretty big deal. Obviously, we have more to stay on that as we get further down the path and and it's more probably to comment on the on will be set today as it relates to capital allocation I think pulsate well in his prepared remarks were 2.45 today times net levered, we generate substantial free cash flow in them.

On the March just pick one recent example.

And we did 400 million adjusted as Paul said in that in the first quarter. So we feel very good about our capital position. So I think our thesis at the time in the merger you just restated I think it's completely accurate. We're really looking for is really just some stability on the capital markets and economic environments globally.

But our priorities haven't changed our first priority is to reinvest in the business primarily through through M&A and if we don't find attractive opportunities there return that capital to our shareholders as we buy way continue to do in December January February up until.

Up until early early March our pipeline remains very full to your point. We think this is a great time to be opportunistic, but we do want to make sure.

That we're continuing to see the benefits of stabilization and return to lot to normalization that we've seen over the last couple of weeks, obviously before we make any kind of final decision Polyone and yes. The only thing I would add David is is the truth. When obviously is huge we talked for several quarters now round the robust pipeline in issuing and this is Jim.

Said another market test around the superiority of our platform and the success that we've had in winning those kind of pipeline opportunities and so I think thats 0.1 of the second point on capital allocation only thing I'd just add is none of the priorities on capital allocation changed and so obviously, what we're doing.

The dividend standpoint, we are we have built up a little bit more cash.

Commented in my prepared remarks, but but but no change on the capital priorities standpoint, I wanted what Paul said, David because it's important that was in our prepared remarks I want to pointed out. So we also think are women scotiabank was really important one of the last remaining banks in Canada that was on an Insource model basis, we did have other business with Scotiabank in markets like Latin America.

We did not they did in the round in Canada I want to point of how important that is and what a great. When that was decoupled point about backlog initially for our teams.

Understood. Thanks, so much.

Thanks, Dan.

Thank you. Our next question comes from Andrew Jeffrey Suntrust. Your line is open.

Hi, Thanks. Good morning, all appreciate you taking the question.

I wanted to follow up or maybe Jeff ask you to elaborate a little bit on on Brian's question about.

Through the health of the installed base and churn we've been picking a lot about.

The creation of new businesses, and especially in restaurants.

On the other side of this cycle and I Wonder if you could characterize global position to win a disproportionate amount of of new share. It sounds like you're kind of already doing that but I, but I wonder about your positioning and how you frame it up versus some of the disruptors out there that are offering.

Full stack software suite and so forth.

Yes, I'm going to start Andrew announced Cameron tends to jump in and we spent a lot of time in our prepared remarks talking about the wins at deal that we're very proud of a very proud of this this quarter. So I would say let me just start first with the enterprise QSR business as we set our prepared remarks with additional Dino wins, we also had number of wins with our omni solutions and on.

The for better or worse is the same name or using a deal that using for omni channel businesses, which is to say, it's online ordering and we have integrations all delivery services.

Thank you would imagine that we that we do in those businesses I think I said were 50% up sequentially and I'll tell you that enough in the first quarter, including through March of course and by the way also into April Arsenio businesses were right on budget. So forget about the virus for a second those businesses are currently hardware software selling technology base and unlikely you've seen from some of our.

Competitors are laying off substantial people in enterprise QSR level I. Just told is our businesses run budget as seen on the first quarter and that continue through the month of April. So obviously I think as it relates to where the enterprise businesses. It's an incredibly healthy place and we're very proud of it and I think the lift up customers testifies to how strong that business.

And at point of competitive differentiation, Kevin will talk a little bit about some of our other businesses away from enterprise QSR, Yes, I'd be happy too I think we're seeing the same level as excess Brian as you go into the mid market into the small end of the restaurant space as well largely because again, we compete on the basis of technology, not really competing on the basis of price into Jeffs point.

Our ability to enable our restaurant customers, particularly the mid.

Mid market customers and smaller customers to move to online order acceptance for delivery in takeout quickly on the heels of the Pandemics starting to spread here in the U.S market I think I mentioned in my prepared remarks, we had 1800, new restaurant customers on our online ordering platform, which in the Heartland channel has the same integrations and Jeff described with the major.

Five delivery services in the U.S market. So we're actually seeing relatively good performance in our restaurant business overall, particularly if you compare to the overall trends in the restaurant business in the market I've seen market data around restaurants in aggregate, including QSR.

Midmarket and small going to being down in the 50, 60% range from a volume standpoint, we're not seeing anything near that as it relates to the health of our rep of our restaurant business from a revenue matters I think we feel very good about how we're positioned in that space to Jeff's point the competitive landscape is shifting.

Throughout this pandemic environment and I think when we get to the other side of that you're going to continue to see us grow our position and grow market share.

With a very healthy restaurant business again that is leading with technology and I think thats important differentiator for our business versus a number the other competitors, we base and I think Cameron exactly right. Andrew. This is an area as we approach our remarks I really think we're going to pick up incremental share I think our products are fantastic as I said last quarter, we invested $50 million $5 million.

Capital in zeal to bring it into production in commercialization, it's their everyday we stacked up thousands of locations up and running we have many day.

By the end of this size going into this quarter really couldn't be more pleased than I do think if you look at some of the fintechs or small private companies that raise a lot of capital over the last couple of years in that space at Marino massive layoffs.

Weren't profitable in the first place and a good economic environment, that's probably referring to in our prepared remarks, when you touched by gaining share coming through the coming to the crisis.

Okay. That's that's really helpful color and as a follow up.

The truest wins, a nice when obviously near and Dear to my heart Congratulations.

That.

Would you characterize that as a as I've event specific when given the merger or do you think it signals more of a trend for banks to be reconsidering their their issuing tech platforms broadly.

Well listen I think at the other day I think true as said this at the time at their merger the scale required for technology and that thing whether youre at financial services company or a fintech start whatever it is that bar is only going up so I think the idea of trying to find the best in market provider for all these things, which we believe and hope and this also validates that we are I don't think ideas going.

In a way I think that he has really gaining steam on the on that technology side. So I think it's the continuation that trend go back twice that the David in a minute go look at Scotiabank. So scotiabank in Canada as I mentioned had insourced their business for many years on the consumer and commercial side that was a very significant win for our business and your somebody who insource.

Sure it already outsource the here some of that you Insource, who decided to go outsourcing is probably over the last remaining large Canadian financial institutions.

Two left to do that as Paul said, our pipeline is very bold and its full in the mix of things kind of globally. So I do think you'll see ongoing outsourcing as the scale and technology required.

To compete effect of that business goes up we'll be making more announcements probably in our in our second quarter call in July and August about the investments, we're making cloud based technology on in our issuer business and I think though just give you a taste as to what the complexity is what the value is for providing market leading solutions. The most complicated customers.

Thank you.

Thanks, Dan.

Thank you.

Question comes from Ramsey LLC Your line is open.

Hi, guys and thanks, so much for taking my question.

Now to really impressive quarter from a business development perspective, obviously, you announced plans and new wins across the business within the context of the virus have you had to adjust your your sales process and sales productivity being impacted kind of for the next couple of quarters in terms of having to move to a more virtual model and just sort of as a follow on question.

In terms of rolling out the deals you sign or their extended timelines as there is.

Is there any change in terms of the typical cadences, signing something and actually getting its getting it to market.

Hey, Randy good morning of Cameron I'll start maybe on the first I'll talk a little bit specifically about merchants as you know the sales cycle, there's a little bit shorter than obviously in the issuing business. So it's probably the one that's most relevant to the question you're asking I would say naturally as you would expect with our sales professionals working from home with a lot of businesses closed or at least.

Operating at a reduced environment during the pandemic certainly sales productivity has had been impacted what I would tell you. It is overall, we've really been very pleased and I would say even somewhat surprised with the level of productivity, we've been able to achieve notwithstanding the pandemic integrated business I would say new sales are running at about 80% of plant.

In the last half of margin for the month of April and our relationship led business, where somewhere in the 60% to 70% range of plan. So obviously, a little bit of an impact relative to what our budget expectations would have been but I would say probably quite frankly very strong performance in the overall sales channels in all of our business throughout the.

Pandemic, it's amazing how resilient.

In adaptable our team members are who are on the front line of sales every single day, they're finding new ways to so we're obviously emphasizing products that are most in demand in the market that we're in today, including of course and advanced MD Tele medicine, where our bookings were up 35% year over year in the first quarter. They were up 64% in April so we.

Our finding ways to when we are finding ways to so we are keeping the business momentum going as best we can through this challenging environment and I'd say, we've been delighted with the success, we've been able to have I would say new sales across the board is one of the highlights I would certainly want to focus on for our first quarter performance notwithstanding.

Obviously, the pandemic impacts.

And I think that trend has continued in April obviously relative to what reasonable expectations would be in this environment I definitely Cameron said before I go into the time and special Ramsey that just in light in our general payments business only 3% to 5% of revenue to getting year is what is sold in that year and recognize that year. So I think if they keep in perspective, most of what we're selling.

As relatively little economic impact in that year meant that it carries over obviously you know into the following year as it relates to extended timeline is it just depends on the business clearly the truest decision that scotiabank decision in issuer those I don't expect to the impact that truest has goals coming out of its merger and this timely timeline because that.

That competitive.

Takeaway story, well before the virus that timeline has not changed in terms of what their goals are I'd say that same thing on scotiabank. There are businesses, though of course is camera mentioned like enterprise QSR certainly our plans heading into this year, we plywood us a lot more hardware software equipment.

This year and my guess is a lot of 26000 franchisees have a restaurant brands international just to pick one my guess is some of those will be deferred as people are just uncertain about the about the economic environment that goes a little bit that obviously dovetails with like Cameron just add about what the new sales impact as you kind of sold it but they can't wait a little bit on capex.

Spending just to make sure that the environment. It's stable. Conversely, though you have businesses like our omni product in Xenia will enter Xeno point of sale product, where the demand is high enough for online ordering where that zooming ahead, which is why Cameron said well in excess of what we assume so undoubtedly there'll be some impact, but it's really a tale of the vertical market in that geography that you.

We're talking about.

That's super helpful. Thank you and then a quick follow along similar lines is on revenue synergies that merger revenue synergies and just how you've had to kind of think through the realization of merger synergies in a climate where in some parts of your business volumes and to some limited degree sales productivity and things like that are our impact it has there been.

In a any type of reef craving internally in terms of how you recognize the same synergies super impressive.

The number I, regardless, but just curious if if the virus has had any impact on the.

Turning to guidance pace your style revenue synergy realization here.

No ramped it's Cameron I'll touch on that last fall to jump into the as anything that as well I would say by and large the revenue synergy expectations. We had in the 2020 budget weren't that significant to begin with.

I would say the tactical synergies that we are working to execute against in the near term things like selling vital through the Heartland channel cross selling pay roll into the legacy thesis business cross selling our analytics and customer engagement platform into the legacy teases business all of those initiatives remain very much on track as I mentioned my prepared comments.

We did roll out vital into the Heartland channel in the first quarter just as we said we would do we're bringing it to Canada on an earlier a timeframe than we had originally anticipated now the second quarter versus the third quarter a lot of the investments we continue to make in the business notwithstanding the pandemic environment are really geared towards ensuring that we can cross sell and deliver pro.

Your next across the distribution channels, we operate both in the us market as well as internationally as well, which will yield future revenue synergies that are part of the plan and then I would say the discussions it really we believe will be important to achieving the longer term expectations 125 million over the three year timeframe all of those continue.

The transaction optimization initiatives that we have in our pursuing with a number of our word partners outside of the use those continue to progress notwithstanding the environment, we're operating in opportunities to cross sell our issuing platform into our existing acquiring customer and partner base outside of the U.S. and vice versa. Those conversations continue.

Need to persist as well so I think sitting here today. The concluded as we remain highly confident in our ability to achieve at least $125 million of revenue synergies within a three year timeframe. We set out when we announced a merger last year and I would say importantly, we gain confidence every single day in as it relates to the momentum we can build.

So by collaborating and leveraging the broad based product and capabilities that we have by virtue of the merger I think the Openedge excuse me global payment. Integrated example, we gave in the prepared remarks as it relates our ability to combine Cai end would be openedge platform and netspend to win a significantly large internet.

Optional multinational software partner in that channel that just gives you a flavor for the types of capabilities that we have today that really have come out of the merger.

That's terrific. Thanks, so much grants are my questions.

Thank you.

Thank you. Our next question comes from Darrin Peller Wolfe Research your line is open.

Okay. Thanks, guys glad to hear your you're doing okay.

I mean, I guess, when we think about looking through the second quarter in 2020 to some degree even now given a lot of folks are doing that I think you do sound like structurally are going to potentially come out on the other side of the stronger given the wins you are having on the omni channel capabilities.

Can you, Jeff and camera or maybe just revisit the types of revenue you have that you think are resilient and what we would call and normal recessionary environment not today, but.

What type of revenue do you think you have that actually is more what percentage is either software centric or defensive in some ways.

Just because I think it's very different in the normal even in tough downturn than today.

And how like how would you think you guys we perform on revenues.

Versus that environment, let's see versus what you would have thought pre cobot 19.

Hey, Darrin I'll start I may have set this when we're together last time in terms of what a normal environment would look like obviously, we're not in a normal.

Environment today, so, let's just start with our.

Our software businesses by dialing one to start with issuer first so our issuer business I think what we said in Paul can obviously provide additional color here, but if you go back to last recession, and if you in a way no nine if you exclude those financial institutions that went out of business. So that don't know didn't exist thereafter, our biz Irish for business grew.

Through the last recessionary environment. So if our long term target areas mid single digits, let's just call. It five to pick a round number I would say, 2% to 3% growth to kind of call tuna half is what I expect from issuer growth in a normal recessionary environment, which is what Paul saw I believe in only and not holding on nine businesses.

Consumer we really haven't had either either pumping pieces are global going back to the recession I do understand that nets that did grow substantially to the last recession, but as you know that market in an environment. Obviously today has changed in fact as we said in our prepared comments that business is doing very well in April as you would imagine with 1.2 billion of stimulus.

Funds being used on groceries in pharmacies and essential being used in April that is going that produced a very big number for that business label right. So obviously, it's not a normal environment is the plan trying to make.

That business, so it's kind of harder to say on net debt so between issuer and nest and you're talking about 35%.

Of the revenue with the company now, let's take it said merchant, which is two thirds of the revenue the business, let's start with our own software businesses call. It by and large about eight 900 million of revenue or kind of thereabouts or about 10% of the company I would say in a normal environment those are pretty resilient.

We have differences today, what are the differences. The difference today is that K through 12 schools, a fantastic business for us software and payments, obviously case at Costco has been closed. So we havent had K 12 schools opened for quite some time two thirds of our revenue in our education that K through 12 is payments. They said that there is pure software sales in that business. So.

Obviously this is a different bullet lacks to your point them are used to but in a normal recessionary environment. If that's a term you want to use that business is pretty well insulated of course, we all expect our cuts feedback tool in August and for that to recover obviously camera commented in our Andy business very healthy today, I think gave you numbers on that or University business.

Online offline very healthy today, so I'd seen a normal recessionary environment that 800 million of owned software revenue is very resilient the already Kb commentary on enterprise QSR is actually already hitting excited today right knows our hardware and software sales and then our integrated business. It just depends on the vertical market. That's the other piece the busy.

This call that.

20%, plus or minus 15, 20% of revenue.

Pumping in ordinary recession going back to your question people go to the dentists. They go to the chiropractor. They go to health professional.

They go to nail salons, they go to self storage so in a normal recessionary environment, that's pretty protected as well. So when you bring that altogether I think what I said Derek at your conference is.

Normal model quality ballpark, 10% organic constant currency revenue growth plus or minus because we say 911 that probably adds up to call. It five or whatever the map is at a normal recessionary environment, obviously thats not the environment brand with K through 12 schools closed and everything else, we've been describing the call, but I would say ordinarily.

We're well into the mid single digits in revenue, even a normal recessionary environment with the piece I, just gave you and well into the team. If you compare to our kind of typical 16 to 18 guide and earnings X murders, obviously, we are doing better than that okay, well articulated we just produced 19 constant currency.

Proceed with the virus for the first quarter, but in a normal environment, you're willing to teens on earnings as well and that's kind of what a normal.

Recession recession looks like I think it's similar to what I said in your conference last month, yes, or sorry, I think it's it's helpful to revisit that.

Just one quick follow up we're getting from clients is just when we think about April that are you guys said, it slightly better or it's shown in flux and obviously in some improvements I mean is there any data points you can give us in terms of second half March specific growth rates versus let's call. The last week of April growth rates in each of the key segments of your business and we'll just think there thanks guys.

Yes, absolutely Darrin, it's Cameron I'll I'll jump in on that at all as Paul maybe to provide a little bit more color around some of the specifics maybe I'll start and jumping off from just earlier commentary. If you look at or is your business in our consumer business, which is about a third of our overall business I think we've generally seen those businesses roughly around flat to maybe down slightly in the girl.

An environment or is your business is largely bundled pricing obviously do have some revenues that are exposed to transaction volumes, but by and large that business has a pretty resilient business and I think we saw that play out largely over the course of late margin interval in the month of April as well same thing on the business and consumer segment were seeing that business benefit from the stimulus spending it.

As a debit oriented business debit skews towards consumer non discretionary obviously that provides benefits for our business and consumer segment. So again, when you put that together with issue where the combined 35% of the company coming out of those two segments.

Really by and large is going to be around sort of flattish, which I think is very very good sign for the overall health of the business and I think it speaks to the resiliency of the overall model, we have no pivoting over to the merchant business and I was pleased to see that visa Mastercard was able to put out some market data last week I think that provides a very good barometer for how.

The market is trending and I think it creates a good backdrop or how we're thinking about our own business performance I would say our own data is trending very similarly to what you're seeing coming out of the networks. If we look globally across all of our merchant businesses more specifically as you talk about North America, which is about 80% of our business today.

I think our business overall is a revenue matters is trending reasonably well relative to.

The metrics provided by these in particular around the credit trends.

I think those credit trends probably are pretty good proxy for our overall north American business as a performance matter for the month of April and here is really why I think credit is probably a better metric for us than than the combined or the debit trends are providing our business in North America skews towards more credit.

Than debit, where we do have debit it tends to be more in the petroleum space and that's obviously been impacted by variety of different factors not just the pandemic over the over the first quarter. We do have good debit exposure, obviously in the consumer business as we talked about previously which has a nice offset to that but in merchant specific we tend to skew towards more credit than we do do.

Debit to begin with.

I would say secondly, our business does differ from the market visa Mastercard represent the market. Obviously, we're more vertically focused so we're not in travel we're not in a lot of delayed delivery elements of the bit market that had been more heavily impacted but the flip side that is we're not in large supermarkets were not in.

Let's see large pharmacy chains to large degree we're not in Walmart or targeted those types of aboard retail environment. So we haven't seen some of the positive trends on that side, but we certainly haven't seen.

More the disaster is negative trends when travel as well the other thing I would say about our business and I mentioned. This earlier is were skewed more towards SMB and those have been slightly more impacted I'd say in this environment some of the larger retailers.

As you think about our portfolio, but I would say that is more than offset by the fact that as Jeff highlighted we have vertical market businesses that have been very resilient, certainly healthcare higher education or enterprise QSR business have performed really well in this environment that has served to offset some of the more SMB skewing that we have in the portfolio overall so.

I have a long winded answer, but I hope it gives you a sense of some of the color that we're seeing in the North American market thing when you blend all that together, it's trending reasonably well in the visa credit that is a good proxy for the performance we've seen in the North America business not surprisingly outside of.

North America consistent with what you saw from Mastercard in particular, I would say volumes are trending a little bit worse than what we're seeing in North America and the in Europe, The UK and Spanish markets have been in Lockdown remained largely in locked down now Asia is a bit of a mixed bag, obviously been dealing with it for a more prolonged period of time some markets are starting reopen some remain.

Closed, but I think if you look at all that together, it's a little bit worse than North America, and I think thats consistent with what you saw coming out of visa and Mastercard. So hopefully that gives you a sense as to what we're seeing in April overall.

I think the business is holding up really well all things considered particularly when compared to the market data that we're seeing coming out of the networks, yes, and the only thing I would add onto that.

If you look at it from a margin standpoint.

The cost actions that we took we run a front footed this to move quickly as it relates to the cost action and if you even look at first quarter. The majority of the margin expansion came from our issuer solutions business, which also has a defensive defensive aspect to it from a revenue standpoint, so as we go throughout the quarters throughout the.

Most of this year, you will see margin expansion in issuer, you'll see margin expansion in business and consumer and we're going to continue to kind of manage the margin as Jeff said earlier around the dynamics of the recovery, but we've already laid out a very aggressive and implemented plan around margin expansion that positions us well for this and bar.

Yeah.

Thank you.

Last question comes from.

Right Okay.

Okay.

Good morning. Thank you for taking my question there seems to be an increasing emphasis on both E com and on the both in the near term and the long term one of the theme thus far I bring that up just in light of the recent city Global E. Com nominee win that you had last fall I believe it went live in December just wanted to see if you could make.

Maybe add some commentary maybe not specific to that deal. If you can great. If not just in general if there's a pipeline of potentially other large banks that are now looking for a similar type partner on a global E com and omni basis.

Yes, Tim it's Jeff I'll take a crack and Thats a personal we're delighted with our relationship with city the U.S. and UK bins are live those transactions are being pilot now and we're very pleased with where we are but if you take a step back for a second we try thing thats in our prepared remarks, we've had a really good run in the first quarter into April on E com.

On the so first thing I think I said in the prepared remarks as that was one of our if our best performing business and up absolutely I think mid single digits for the first quarter globally.

2020 that trend has continued into April so worldwide EXINI in as Cameron said, only 2% to 3% of our company revenue wise worldwide anywhere is entering any so we're not really exposed there, but EXINI our economy businesses in April were up double digits right about right around 10%.

For the month of April So I think we gave a lift in our prepared remarks camera and I both dated the wins that we've had in that in that business. So we're really fortunate to be in that position Moran I think it's showing in the first quarter is showing in April, but importantly, I think as visa Mastercard call that and we did as well I just think the virus and everything else is going to come.

Thank you the shift toward further digitization of payments further migration online we gave a bunch of examples Cameron I didn't our prepared remarks about what's going on with online ordering digital wallets the rest.

And while we're not a delivery business, we are integrate into all the delivery.

Services, So I think you're asking the right question. Those businesses are performed best for us in the first quarter and continue to perform that way worldwide into light into April.

Okay.

Thank you very much.

Thanks, a lot him.

On behalf of global payments. Thank you very much for joining us this more healthy and safe and have a great day.

Great.

Have a great deal.

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