Q4 2021 Global Payments Inc Earnings Call

Speaker 1: forward-looking statements during this call speak only at the date of this call and we undertake no obligation to update them.

Comments during this call speak only as of the date of this call and we undertake no obligation to update them.

We will also be referring to several non-GAAP financial measures, which we believe are more reflective of our ongoing performance.

Speaker 1: We will also be referring to several non-GAAP financial measures, which we believe are more reflective of our ongoing performance.

Speaker 1: For a full reconciliation of the non-GAAP financial measures discussed in this call to the most comparable GAAP measure in accordance with SEC regulations, please see our press release furnished as an exhibit to our Form 8K filed this morning and our supplemental materials.

For a full reconciliation of the non-GAAP financial measures discussed in this call to the most comparable GAAP measure in accordance with SEC regulations. Please see our press release furnished as an exhibit to our form 8-K filed this morning, and our supplemental materials.

Joining me on the call are Jeff Sloan CEO , Cameron Bready, President and COO and Paul Todd Senior Executive Vice President and CFO now I'll turn the call over to Jeff.

Speaker 1: Joining me on the call are Jeff Sloan, CEO , Cameron Brady, President and COO, and Paul Todd, Senior Executive Vice President and CFO . Now, I'll turn the call over to Jeff.

Thanks Winnie.

Speaker 2: Thanks, Winnie. We delivered record fourth quarter and full year 2021 results that exceeded our expectations, highlighting the resilience.

We delivered record fourth quarter and full year 2021 results that exceeded our expectations highlighting the resilience of our business model.

We achieved record transactions across the business in the fourth quarter, including a new peak during the holidays, despite the incremental impact of COVID-19 areas and.

Speaker 2: We achieved record transactions across the business in the 4th quarter, including a new peak during the holidays, despite the incremental impact of COVID-19 variant.

Speaker 2: And we expect another record year in 2022 based on today's guidance with strong revenue growth, margin enhancement, earnings to free cash flow conversion and leverage capacity.

And we expect another record year in 2022 based on today's guidance with strong revenue growth margin enhancement earnings to free cash flow conversion and leverage capacity.

We accomplished a great deal over the course of 2021 as we continued to advance our differentiated strategies for growth.

Speaker 2: We accomplished a great deal over the course of 2021 as we continued to advance our differentiated strategies for growth.

Speaker 2: This includes our partnership with Google to deliver innovative and seamless digital services to all manner of merchants worldwide.

This includes our partnership with Google to deliver innovative and seamless digital services to all manner of merchants worldwide. The.

Speaker 2: the expansion of our collaboration with AWS, our preferred issuer technology solutions partner, for a unique distribution and cutting edge technology.

The expansion of our collaboration with AWS or preferred issuer technology solutions partner for our unique distribution and cutting edge technologies.

Speaker 2: our successful acquisitions of ZeeGo and MineralTree to advance our software leadership position with unmatched worldwide payments expertise.

Our successful acquisitions of Zico in mineral tree to advance our software leadership position with unmatched worldwide payments expertise.

Speaker 2: A strategic alliance with Virgin Money and our first use case post-merger combining issuing and acquiring capabilities.

A strategic alliance with Virgin money, and our first use case post merger, combining issuing and acquiring capabilities.

Speaker 2: And our partnership with Mercedes-Benz Stadium to enable its multi-channel commerce ecosystem.

And our partnership with Mercedes Benz Stadium to enable its multichannel commerce ecosystem.

And we're carrying that momentum into 2022, as we successfully execute on our goal to redefine the future of digital commerce, extending our lead continuing to gain share and deepening our competitive moat.

Speaker 2: And we're carrying that momentum into 2022 as we successfully executed our goal to redefine the future of digital commerce.

Speaker 2: extending our lead, continuing to gain share, and deepening our competitive mode.

Specifically, we are delighted to announce that we have been chosen by <unk> bank as the finalist company in their selection process for a technology partner for its European card issuing business, comprising nearly 30 million cards.

Speaker 2: Specifically, we are delighted to announce that we've been chosen by Keisha Bank as the finalist company in their selection process for a technology partner for its European card issuing business comprising nearly 30 million cards.

Speaker 2: We expect to finalize contract negotiations over the coming weeks.

We expect to finalize contract negotiations over the coming weeks.

Speaker 2: KAISHA is the largest domestic bank in Spain, serving tens of millions of households and a full range of business clients across multiple countries in Europe .

As the largest domestic bank in Spain, serving tens of millions of households, and a full range of business clients across multiple countries in Europe .

Speaker 2: This latest achievement is yet another example of the enhanced revenue opportunities derived from our merger with thesis. Just over 2 years ago.

This latest achievement is yet. Another example of the enhanced revenue opportunities derived from our merger with pieces just over two years ago.

When this goes live as anticipated in the back half of next year. We expect this initiative to be among the first legacy direct to cloud transformations and card issuing technologies among major financial institutions.

Speaker 2: When this goes live as anticipated in the back half of next year, we expect this initiative to be among the 1st legacy direct to cloud transformations in card issuing technologies among major financial.

And it will be the first entry of pieces into the highly attractive Iberian marketplace.

Speaker 2: and it will be the first entry of TeSys into the highly attractive Iberian marketplace.

Together with our recently announced partnership with Virgin money, We believe global payments will then become a leading debit technology provider across Europe .

Speaker 2: Together with our recently announced partnership with Virgin Money, we believe global payments will then become a leading debit technology provider across Europe .

We're also excited to announce that we're embarking on a multi year partnership with Mastercard to modernize and accelerate card payments in the cloud across authorization clearing and settlement.

Speaker 2: We're also excited to announce that we're embarking on a multi-year partnership with MasterCard to modernize and accelerate card payments in the cloud across authorization, clearing, and settlement.

Ron This journey to drive ecosystem change and to help our clients bring differentiated value to the market.

Speaker 2: We're on this journey to drive ecosystem change and to help our clients bring differentiated value to the market.

This is yet another example of how we're progressing the payments landscape with leading technology partners and bringing the next generation of modernized AWS cloud enable payments to customers.

Speaker 2: This is yet another example of how we're progressing the payments landscape with leading technology partners and bringing the next generation of modernized AWS cloud-enabled payments to customers.

Our durable relationships with some of the most complex and sophisticated institutions globally speak to our competitiveness well into the remainder of this decade.

Speaker 2: Our durable relationships with some of the most complex and sophisticated institutions globally speak to our competitiveness well into the remainder of this decade.

It's worth highlighting that our issuer business signed multi year contract extensions with several of our largest customers over the last 12 months, including city CIBC Barclays and Banco Carrefour.

Speaker 2: It's worth highlighting that our issuer business signed multi-year contract extensions with several of our largest customers over the last 12 months, including Citi, CIBC, Barclays, and Banco Carrefour.

Speaker 2: And our strategy of aligning with market share winners was also successful in 2021.

And our strategy of aligning with market share winners was also successful in 2021.

Speaker 2: Recent examples include Barclays purchase of the Gap Card portfolio, as well as Capital One's purchase of BJA's wholesale club, Card B.

Recent examples include Barclays purchase of the GAAP car portfolio as well as capital one's purchase at Bj's wholesale club card base.

We have 34 active prospects in the pipeline with AWS 11 of which are Fintech neo banks and startups.

Speaker 2: We have 34 active prospects in the pipeline with AWS, 11 of which are Fintech, NeoBanks, and Startup.

And we're pleased to announce that we are live with our first joined takeaway together with AWS, a leading global financial institution and a single large market in Asia, and we expect to expand this prime instance to several additional markets over time.

Speaker 2: And we're pleased to announce that we are live with our first joint takeaway to get a AWS, a leading global financial institution in a single large market in Asia. And we expect to expand this prime instance to several different markets over time.

We also reached an agreement for our first legacy global payments issuer customer Kb bank in the Czech Republic to move to our <unk> Prime platform in the fourth quarter.

Speaker 2: We also reached an agreement for our first legacy Global Payments issuer customer, KB Bank in the Czech Republic, to move to our TSIS Prime platform in the fourth quarter. Another Revenue Center

Another revenue synergy from our merger.

Finally of the nine LOI, we have in our issuer solutions business today five are competitive takeaways.

Speaker 2: Finally, of the nine LLIs we have in our issuer solutions business today, five are competitive take-ways.

Speaker 2: In addition, we recently had another new customer win move from L-O-I into production. That was also a competitive take away.

In addition, we recently had another new customer win move from LOI into production that was also a competitive takeaway.

Speaker 2: We've been successful in expanding our target addressable markets in 2021 beyond AWS as we diversify and broaden our distribution.

We've been successful in expanding our target addressable markets in 2021 beyond AWS as we diversify and broaden our distribution.

We announced new strategic partnerships last year with Pwc and Tenex banking.

Speaker 2: We announced new strategic partnerships last year with PWC and 10X Banking.

<unk> banking is a next generation cloud native platform designed to bring forward, a new way of banking with faster product development and a lower cost to serve.

Speaker 2: Tenex Banking is a next-generation cloud-native platform designed to bring forward a new way of banking with faster product development and a lower cost to serve.

We are proud to announce a new collaboration with <unk> to bring sustainability as a service to fintech startups neo banks and traditional institutions.

Speaker 2: We are proud to announce a new collaboration with E. Colidic to bring sustainability as a service to Fintech startups, NeoBanks, and traditional institutions.

This partnership provides consumers with a personalized view of their impact on the environment driven by their payment and transaction activities.

Speaker 2: This partnership provides consumers with a personalized view of their impact on the environment driven by their payment transaction.

Speaker 2: This technology enables corporate clients to align their digital banking strategies with consumers and supports ESG commitments by delivering sustainable product options and experience.

This technology enables corporate clients to align their digital banking strategies with consumers and supports ESG commitments by delivering sustainable product options and experiences.

Further we are delighted to announce a partnership with extend to our new distribution channels.

Speaker 2: Further, we are delighted to announce a partnership with extend to our new distribution channel.

We will provide <unk> virtual commercial account services to banks and Fintech with extend serving our infant virtual card issuance product.

Speaker 2: We will provide B2B virtual commercial account services to banks and fintechs with Xtend, serving our infant virtual card issuance product.

Speaker 2: Through relationships like Ecolytic and Xtend, we are able to support a full spectrum of solutions across emerging use cases.

Through relationships like eco lytic and extend we are able to support a full spectrum of solutions across emerging use cases.

And while we've been providing market leading technologies for buy now pay later or be NPL initiatives for decades, we continue to innovate and deliver installment payments products as big NPL demand grows.

Speaker 2: And while we've been providing market leading technologies for Buy Now Pay Later or BNPL initiatives for decades, we continue to innovate and deliver installment payments products as BNPL demand grows.

This includes expanding our combined installment solutions with visa and signing a global referral agreement with Mastercard.

Speaker 2: This includes expanding our combined installment solutions with visa and signing a global referral agreement with MasterCard.

Speaker 2: Through our partnership with leading technology companies, private label granted retailers, and many of the world's largest issuers, we will be able to provide our customers with a complete ecosystem of BMPL capabilities on a regulated, compliant, and responsible base.

And through our partnership with leading technology companies private label branded retailers and many of the worlds largest issuers, we will be able to provide our customers with a complete ecosystem of BNP capabilities on a regulated compliant and responsible basis.

It's worth highlighting that in 2021 alone thesis enabled over $2 billion, the NPL transactions and issued 55 million virtual cards with more than $31 billion and volume.

Speaker 2: It's worth highlighting that in 2021 alone, Teases enabled over two billion BNPL transactions and issued 55 million virtual cards with more than $31 billion in volume.

Turning to our merchant business. We are pleased to report the release of the first phase of our Google One and grow my business product than.

Speaker 2: Turning to our merchant business, we are pleased to report the release of the first phase of our Google One and Grow My Business product.

Speaker 2: that integrates Google solutions with our innovative capabilities in our digital portal environment during the fourth quarter as planned.

<unk> integrates Google solutions with our innovative capabilities in our digital portal environment during the fourth quarter as planned.

We continue to expect to launch the next phase to help our merchants grow faster by connecting additional Google services, including online ordering retail inventory and reservations to our digital platform later this year.

Speaker 2: We continue to expect to launch the next phase to help our merchants growth after by connecting additional Google services, including online ordering, retail inventory, and reservations to our digital platform later this year.

Google is also now a live merchant customer in Asia Pacific and we expect to launch Google as a merchant customer in North America by the end of this quarter.

Speaker 2: Google is also now a live merchant customer in Asia Pacific, and we expect to launch Google as a merchant customer in North America by the end of this quarter.

We continue to deliver a full suite of vertically fluid solutions across dozens of markets worldwide.

Speaker 2: We continue to deliver a full suite of vertically fluent solutions across dozens of markets worldwide.

For example, our enterprise <unk> business deliver bookings growth for its cloud services in excess of 50% in 2021 and went live with new marquee customers like Denny's long, John Silver's and AWS Suraj.

Speaker 2: For example, our enterprise QSR business delivered bookings growth for its cloud POS services in excess of 50% in 2021. And went live with new marquee customers like Denny's, Long John Silver's, and A&W Resh...

We also continue to expand with existing brands, including Bojangles Whataburger and CK.

Speaker 2: We also continue to expand with existing brands, including Vogue Actors, Waterburger, and CKE, which today leverage a combination of our innovative and-to-end solutions.

Which today leverage a combination of our innovative end to end solutions.

Speaker 2: We delivered more than 300 million on the channel restaurant experiences in 2021, up 50% versus 2020, an indicative of share shift due to the pandemic and market share gains.

We delivered more than 300 million Omnichannel restaurant experiences in 2021 up 50% versus 2020 and indicative of share shift due to the pandemic and market share gains.

Speaker 2: By way of comparison, we have able 19 million on each out of order in 2019 prior to COVID-19.

By way of comparison.

We enabled 19 million Omnichannel orders in 2019 prior to COVID-19.

Speaker 2: Our AMD business generated revenue growth of over 30% in 2021 and an excess of 35% for the fourth quarter compared to 2019.

Our A&D business generated revenue growth of over 30% in 2021 and in excess of 35% for the fourth quarter compared to 2019.

Speaker 2: And that momentum is poised to continue when bookings grow to 40% in the fourth quarter and 26% for the full year over 2020.

And that momentum is poised to continue with bookings growth of 40% in the fourth quarter and 26% for the full year over 2020.

I am, particularly proud that Amd's telemedicine solution enabled $2 5 million provider visits over last year, marking an 85% increase from 2020.

Speaker 2: I am particularly proud that AMD's telemedicine solution enabled 2.5 million provider visits over the last year, marking an 85% increase from 2020.

And to put it in perspective that is up from the roughly 100000 telemedicine visits facilitated annually prior to the pandemic.

Speaker 2: And to put it in perspective, that is up from the roughly 100,000 telemedicine visits facilitated annually prior to the pandemic.

We're also delighted to have hit the ground running and one of the largest and most attractive verticals in 2021 and real estate.

Speaker 2: We're also delighted to have hit the ground running in one of the largest and most attractive verticals in 2021 in real estate.

Speaker 2: Zio delivered near 20% bookings growth for the full year, and they will buy its continued success with existing enterprise customers like ATC and Thalheimer, and by expanding with new partners like Managed America and Equity Lifestyles, one of its largest new customers.

<unk> delivered near 20% bookings growth for the full year enabled by its continued success with existing enterprise customers like ACC and thalheimer and by expanding with New partners like managed America and equity lifestyles.

One of its largest new customers to date.

He goes payments penetration into its base also reached an all time high last year under our stewardship.

Speaker 2: He goes payments penetration into his base, also reached an all-time high last year under our stewardship.

As we discussed at our 2021 Investor Conference.

Speaker 2: As we discussed at our 2021 investor conference, we are the beneficiaries of technological innovation, continued share shift and market share gains, including QR codes, digital wallet, safer commerce, and of course the MPL.

We are the beneficiaries of technological innovation continued share shifts and market share gains, including Barcodes digital wallet safer commerce and of course the NPL.

Speaking of the MPL. In addition to the agreements we already have in place with leading solutions providers, including a firm and tour in the United States in SMA in Asia Pacific, We are launching our <unk> service marketplace. This quarter to augment our 140 plus alternative payment methods portfolio.

Speaker 2: Speaking of BMPL, in addition to the agreements we already have in place with leading solutions providers, including Affirm and Tuwa in the United States and Atomay in Asia Pacific, we are launching our BMPL of its service marketplace this quarter to augment our 140-plus alternate payment methods portfolio.

Further our new partnership with Virgin money highlights our ability to deliver non bank card account to account transfers through our digital solutions.

Speaker 2: Further, our new partnership with Virgin Money highlights our ability to deliver non-bankard, account to account transfers to our digital solutions. Capitalizing in our market.

Capitalizing on our market, leading merchant ecosystem, which already provides one of the largest NFC accepted acceptance networks globally.

Speaker 2: which already provides one of the largest NFC acceptance networks globally.

In September we highlighted that we win by leading with technology and innovative solutions across our merchant portfolio.

Speaker 2: In September , we highlighted that we win by leading the technology and innovative solutions across our merchant portfolio.

Speaker 2: And the form-for-der provides further evidence of our differentiated strategy.

In the fourth quarter provides further evidence of our differentiated strategies.

We delivered record bookings in the fourth quarter of 'twenty, one for a global payments integrated and U S payments and payroll businesses, each of which grew 20% year over year.

Speaker 2: We delivered records bookings in the fourth quarter of 21 for a global payments integrated and US payments and payroll businesses, each of which grew 20% year over year.

Our E Commerce and Omnichannel business grew on an accelerated basis in 2021.

Speaker 2: Our e-commerce and on the channel business grew on an accelerator basis in 2021.

Our ability to seamlessly provide the full spectrum of payment solutions drove new wins this quarter with large multinational Mary Kay across six countries in Europe and Asia.

Speaker 2: Our ability to seamlessly provide the full spectrum of payment solutions.

Speaker 2: drew a new wins this quarter with large multinational Mary K across six countries in Europe and Asia.

Speaker 2: And with ESW or eShopworld, a leader in direct consumer global commerce in the United States with further global expansion on the horizon.

And with Es W or eshop World a leader in direct to consumer global Commerce in the United States with further global expansion on the horizon.

And over the course of 2021, we also reached new partnerships with Google Uber eats and Uber rides foot locker Hunter Douglas and Swatch group, while extending and expanding the scope of our longstanding relationship with Paypal.

Speaker 2: And over the course of 2021, we also reached new partnerships with Google, Uber Eats, and Uber Rides, Foot Locker, Hunter Douglas, and the Swatch Group, while extending and expanding the scope of our long-standing relationship with PayPal.

Finally, we added <unk> as the newest pillar of our strategy in 2021.

Speaker 2: Finally, we had a B2B as the newest pillar of our strategy in 2021.

We are already making significant strides with mineral tree since the closing in mid October .

Speaker 2: We are already making significant strides with mineral tree since the closing in mid-october.

Speaker 2: This includes doubling virtual cards spent in the fourth quarter and completing nine new deals in the healthcare vertical, including with no-how dental and biometh.

This includes doubling virtual card spend in the fourth quarter and completing nine new deals in the healthcare vertical including with Knowhow dental and biometric.

This quarter mineral tree also renewed its agreement with ni or national instruments successfully executed and implementation with Mexico based food services company, Grupo Bimbo and launched its supplier central portal, which allows for seamless payments acceptance for suppliers to support greater digital adoption.

Speaker 2: This quarter, mineral tree also renewed its agreement with NI or National Entry.

Speaker 2: Successfully executed an implementation with Mexico-based food services company Grupo Vimbo and launched its supplier central portal which allows for seamless payments acceptance for suppliers to support greater digital adoption.

We are pleased to have successfully invested $2 $5 billion in M&A since early 2020, consistent with our four strategic pillars.

Speaker 2: We are pleased to successfully invested $2.5 billion in M&A since early 2020 consistent with our four strategic pillars.

Speaker 2: We also have returned $3.7 billion of capital to shareholders since that time.

We also have returned $3 $7 billion of capital to shareholders since that time.

And our record cash flow generation and solid balance sheet position us with ample firepower to continue to execute on our priorities.

Speaker 2: and our record, cash flow generation, and solid balance sheet positioned us with ample firepower to continue to execute on our priority.

Speaker 2: At the same time, we seek to refine our portfolio by simplifying the composition of our businesses and focusing on our core corporate customers, including merchants, financial institutions, software partners, and technology leaders.

At the same time, we seek to refine our portfolio by simplifying the composition of our businesses and focusing on our core corporate customers, including merchants financial institutions software partners and technology leaders.

As part of that initiative, we have commenced a strategic review of our net spend consumer business to sharpen our focus on our <unk> assets.

Speaker 2: As part of that initiative, we have commenced a strategic review of our next spend consumer business to sharpen our focus on our B2B app.

While <unk> direct to consumer business is an attractive set of solutions with a favorable profile. There is limited overlap between that customer base and our traditional clients.

Speaker 2: While that spends direct consumer business is an attractive set of solutions with a favorable profile, there is limited overlap between that customer base and our traditional clients.

Speaker 2: Having largely completed our integration with TESIS corporately, made the pivot toward B2B and incorporated net spends B2B assets into our thing.

Having largely completed our integration with Tcs corporately need to pivot towards <unk> and incorporated <unk> assets into our thinking.

Speaker 2: We believe now is the appropriate time to commence this review of ZestBenz Consumer Business.

We believe now is the appropriate time to commence its review of <unk> consumer business as.

As we said at our Investor Conference in September we have a full suite of BBB assets, including our market, leading commercial card offering.

Speaker 2: As we send it our investor conference in September , we have a full suite of V2BF.

Speaker 2: including a market leading commercial card offering, virtual card issuance at scale, payroll, pay card, earnaway, jaxs, and now accounts payable cloud SaaS with mineral tree. We complement these offerings. Thank you.

Virtual card issuance at scale payroll pay card firmly jacks us and now accounts payable cloud SaaS with mineral tray.

We complement these offerings.

With a unique collaboration with AWS.

Speaker 2: We are very proud of all that Netspend and our value team members have accomplished under TCC's ownership over the last eight plus years.

We are very proud of all that net spend and our value team members have accomplished under <unk> ownership over the last eight plus years.

Speaker 2: We believe that we have created significant values as close of our merger by expanding internationally, accelerating digitization and driving significant operational efficient.

We believe that we have created significant value since the close of our merger by expanding internationally accelerating digitization and driving significant operational efficiencies. We also provided much needed faster payments to <unk>.

Speaker 2: We also provided much needed faster payments to millions of consumers during some of the most challenging periods of the pandemic.

<unk> of consumers during some of the most challenging periods of the pandemic.

Speaker 2: Revenue, margin, and contribution were all records at NEST spend in 2021. Simply put, we have achieved our goals. Paul.

Revenue margin and contribution were all records at net spend in 2021 simply put we have achieved our goals.

Okay.

Thanks, Jeff.

Speaker 2: Our financial performance for the full year 2021 exceeded our expectations despite incremental headwinds from COVID-19, including both the Delta and Omicron variant.

Our financial performance for the full year 2021 exceeded our expectations, despite incremental headwinds from COVID-19, including both the Delta and Omicron variance specifically, we delivered adjusted net revenue of $7 74 billion, an increase of 15% from the prior year and.

Speaker 2: Specifically, we delivered a Justinant revenue of $7.74 billion, an increase of 15% from the prior year, and solidly ahead of our initial guidance for a Justinant revenue to be in a range of $7.5 to $7.6 billion.

Solidly ahead of our initial guidance for adjusted net revenue to be in a range of seven five to $7 6 billion.

Importantly, our adjusted operating margin increased 210 basis points to 41, 8% as we benefited from the natural operating leverage in the business and the continued realization of cost synergies related to the merger, which was partially offset by the return of certain costs that were temporarily.

Speaker 2: Importantly, our adjusted operating margin increased 210 basis points to 41.8% as we benefited from the natural operating leverage in the business and the continued realization of cost synergies related to the merger, which was partially offset by the return of certain costs that were temporarily reduced that the onset of the pandemic and the impact of our acquisitions during the year.

Reduced at the onset of the pandemic and the impact of our acquisitions during the year.

Speaker 2: This performance is also consistent with our guidance for a just that operating margin expansion of around 200 basis points for the year, including the impact of acquisitions we closed during 2021.

This performance is also consistent with our guidance for adjusted operating margin expansion of around 200 basis points for the year, including the impact of acquisitions, we closed during 2021.

The net result was adjusted earnings per share of $8 16.

Speaker 2: And that result was adjusted earnings per share of $8.16 an increase of 28% from the prior year and 31% over 2019.

An increase of 28% from the prior year and 31% over 2019.

Speaker 2: We believe we would have been at the high end of our recent guide rather than above the midpoint, but for the emergence of Omicron and incremental adverse foreign exchange rates during the fourth quarter.

We believe we would've been at the high end of our recent guide rather than above the mid point, but for the emergence of omicron and incremental adverse foreign exchange rates during the fourth quarter.

Speaker 2: Moving to the fourth quarter, we delivered adjusted net revenue of 1.98 billion representing 13.3 percent growth compared to the prior year and 10 percent growth compared to 2019.

Moving to the fourth quarter, we delivered adjusted net revenue of $1 98 billion, representing 13, 3% growth compared to the prior year and 10% growth compared to 2019.

Adjusted operating margin for the fourth quarter was 42% a 50 basis point improvement from the prior year or a 110 basis point improvement excluding the impact of acquisitions.

Speaker 2: Adjusted operating margin for the fourth quarter was 42%. A 50 basis point improvement from the prior year or a 110 basis point improvement, excluding the impact of acquisition.

Speaker 2: Compared to 2019, adjusted operating margins increased 370 base.

Paired to 2019, adjusted operating margins increased 370 basis points.

The net result was adjusted earnings per share of $2 13.

Speaker 2: The net result was adjusted earnings per share of $2.13, an increase of 18.3% compared to the prior year, and an increase of 32% compared to 2019.

An increase of 18, 3% compared to the prior year and an increase of 32% compared to 2019.

Taking a closer look at our performance by segment.

Speaker 2: Taking a closer look at our performance by segment, merchant solutions achieved adjusted net revenue of 1.34 billion for the fourth quarter, a 21% improvement from the prior year, and a 15.4% improvement compared to 2019.

<unk> solutions achieved adjusted net revenue of 1.3 dollars 4 billion for the fourth quarter, a 21% improvement from the prior year and a 15, 4% improvement compared to 2019.

Speaker 2: This performance was led by continued strength in the US, while we also benefited from improving trends in international markets, including Spain, Central Europe , and Greater China.

This performance was led by continued strength in the U S. While we also benefited from improving trends in international markets, including Spain, Central Europe , and greater China.

Speaker 2: Notably, we delivered an adjusted operating margin of 48.2% in this segment, an increase of 70 basis points year on year, and 130 basis points excluding the impact of M&A.

Notably we delivered an adjusted operating margin of 48, 2% in this segment, an increase of 70 basis points year on year, and 130 basis points, excluding the impact of M&A.

Speaker 2: Adjust the operating margins improve 320 basis points over 2019 as we continue to benefit from the underlying strength of our business.

Adjusted operating margins improved 320 basis points over 2019, as we continue to benefit from the underlying strength of our business mix.

Focusing on our technology enabled portfolio, our integrated business produced another strong quarter generating adjusted net revenue growth in the high 20% range compared to 2020.

Speaker 2: Focusing on our technology-nabled portfolio, our integrated business produced another strong quarter, generating adjusted net revenue growth in the high 20% range compared to 2020.

It is also worth highlighting but over the last two years notwithstanding the pandemic adjusted net revenue growth for this business has compounded at the mid teens rate, we target for GPI longer term and our worldwide E Commerce and Omnichannel businesses saw growth of roughly 20% year on year as our value.

Speaker 2: It is also worth highlighting that over the last two years, notwithstanding the pandemic, adjusted net revenue growth for this business has compounded at the mid-teens rate we target for GPI longer term. And our worldwide e-commerce and omnichannel businesses saw growth of roughly 20% year-on-year as our value proposition, including our unified commerce platform or UCP, continues to resonate with customers.

<unk>, including our unified Commerce platform or UCP continues to resonate with customers.

Speaker 2: Our ability to serve customers across nearly 40 markets physically and over 170 virtually is core to our omnichannel strategy and support our growth outlook for these businesses.

<unk> to serve customers across nearly 40 markets physically and over 170 virtually is core to our omnichannel strategy and supports our growth outlook for these businesses.

Turning to own software, our Pos software solutions delivered adjusted net revenue growth in excess of 50% in the fourth quarter, and our HCM and payroll businesses solutions grew 32%.

Speaker 2: Turning to own software, our POS software solutions delivered adjusted that revenue growth in excess of 50% in the fourth quarter, and our HCM and payroll businesses solutions grew 32%.

As far our vertical market solutions, we were pleased that the overall portfolio delivered growth of roughly 20% compared to the prior year in the fourth quarter and low double digit growth for the full year consistent with our target. Despite several of these businesses, having not yet fully recovered to pre pandemic levels.

Speaker 2: As far as vertical market solutions, we were pleased that the overall portfolio delivered growth of roughly 20% compared to the prior year and the fourth quarter and low double-digit growth for the full year consistent with our target, despite several of these businesses, having not yet fully recovered to pre-pandemic level.

I would reiterate jeffs comments regarding the positive bookings trends, we are seeing across our vertical markets portfolio and we continue to expect our own software businesses will become a tailwind for us in 2022 as the recovery progresses.

Speaker 2: I would reiterate just comments regarding the positive bookings trends we are seeing across our vertical markets portfolio and we continue to expect our own software businesses will become a tailwind for us in 2022 as the recovery progresses.

Speaker 2: If your solutions delivered 463 million and adjusted that revenue, a 1.3% improvement from the fourth quarter of 2020.

Issuer solutions delivered $463 million and adjusted net revenue a one 3% improvement from the fourth quarter of 2020.

Speaker 2: This performance was impacted by two items this court. First, our managed services adjusted net revenues decreased as we continue to pivot our issue of business to more tech enablement and less lower margin and outsourced call center business.

This performance was impacted by two items. This quarter first our managed services adjusted net revenues decreased as we continue to pivot our issuer business to more tech enablement and less lower margin and outsourced call Center business. We also had a grow over of nonrecurring revenue that occurred last year normally.

Speaker 2: We also had a growover of non-recurring revenue that occurred last year. Normalizing for these two items, our adjusted net revenue growth was in the mid-single digits consistent with our longer term target.

<unk> for these two items, our adjusted net revenue growth was in the mid single digits consistent with our longer term target.

<unk> adjusted operating margins of 43, 4% declined 130 basis points from the prior year, but expanded 320 basis points over 2019 and in line with our expectation for the business as you may recall issuer solutions delivered adjusted operating margin expansion of 450 <unk>.

Speaker 2: If you were just at operating margins of 43.4% that climbed 130 basis points from the prior year, but expanded 320 basis points over 2019 and in line with our expectation to the business.

Speaker 2: As you may recall, issue or solutions delivered adjusted operating margin expansion of 450 basis points in the fourth quarter of 2020 over 2019. Fueled by our focus on driving efficiencies in the business as well as benefits from temporary cost reduction.

<unk> points in the fourth quarter of 2020 over 2019.

Fueled by our focus on driving efficiencies in the business as well as benefits from temporary cost reductions.

Speaker 2: Finally, our business and consumer solution segment delivered adjusted net revenue growth of 2% for the fourth quarter and 7% on a four year basis consistent with our guidance for this segment to grow in the mid to high single digit range in 2021.

Finally, our business and consumer solutions segment delivered adjusted net revenue growth of 2% for the fourth quarter and 7% on a full year basis consistent with our guidance for this segment to grow in the mid to high single digit range in 2021.

Speaker 2: As Jeff discussed, we intend to focus our efforts going forward on enhancing our B2B businesses, which includes elements of next spin.

As Jeff discussed, we intend to focus our efforts going forward on enhancing our <unk> businesses, which includes elements of net spend to that end. We are pleased that mineral <unk> bookings grew 19% this year positioning the business well heading into 2022.

Speaker 2: To that end, we are pleased that Mineral Tree's bookings grew 19% this year, positioning the business well heading into 2022.

Speaker 2: Adjusted operating margin for business and consumer solutions of 21.7%, decline 240 basis points in the quarter from the prior year, largely due to lapping the benefits of stimulus volumes in Q4 for 2020. Quarterly margins expanded relative to Q4 of 2019.

Adjusted operating margin for business and consumer solutions, a 21, 7% declined 240 basis points in the quarter from the prior year largely due to lapping the benefits of stimulus volumes in Q4 for 2020.

Accordingly margins expanded relative to Q4 of 2019.

From a cash flow standpoint, we had roughly $609 million of adjusted free cash flow for the quarter and a record $2 5 billion for the year consistent with our target to convert roughly 100% of adjusted earnings to adjusted free cash flow annually, we invested $142 million in capital.

Speaker 2: From a cash flow standpoint, we had roughly 609 million of adjusted free cash flow for the quarter and a record 2.5 billion for the year consistent with our target to convert roughly 100% of adjusted earnings to adjusted free cash flow annually. We invested 142 million in capital expenditures during the quarter and 493 million for the year in line with our expectations.

<unk> during the quarter and $493 million for the year in line with our expectations.

Speaker 2: Further, this quarter we repurchased approximately 5.5 million of our shares for approximately 700 million. And for the full year, we are pleased to have repurchased 15.2 million shares for roughly 2.5 billion or approximately 5% of our shares outstanding.

Further this quarter, we repurchased approximately $5 $5 million of our shares for approximately $700 million and for the full year. We are pleased to have repurchased $15 2 million shares for roughly $2 5 billion or approximately 5% of our shares outstanding.

Speaker 2: Also, our Board of Directors has again approved an increase in our Sherry Purchase Authorization to 2 billion as Sherry Purchase remains a key capital allocation priority.

Our board of Directors has again approved an increase in our share repurchase authorization to 2 billion as share repurchase remains a key capital allocation priority.

Speaker 2: Balance sheet is extremely healthy and we ended the period with roughly 2.4 billion of liquidity after Repurchase activity and acquisition funding.

Our balance sheet is extremely healthy and we ended the period with roughly $2 4 billion of liquidity after repurchase activity and acquisition funding.

Speaker 2: In mid-November, we successfully issued two billion and senior, unscured notes at a blended interest rate of 2.27%. The transaction was credit neutral with the full proceeds used to pay down our outstanding revolver. Our leverage position was roughly three times on a net debt basis at quarter end.

In mid November we successfully issued $2 billion and senior unsecured notes at a blended interest rate of two 7%.

The transaction was credit neutral with the full proceeds used to pay down our outstanding revolver, our leverage position was roughly three times on a net debt basis at quarter end.

Speaker 2: Looking ahead to 2022, we remain encouraged by the trends we are seeing in the business and currently expect adjusted net revenue to range from 8.42 billion to 8.5 billion. Reflecting growth of nine to 10% over 2021 are roughly 10 to 11% on a constant currency basis with upwards of 1% of currency headwind expected throughout the year.

Looking ahead to 2022, we remain encouraged by the trends we are seeing in the business and currently expect adjusted net revenue to range from 842 billion to $8 5 billion, reflecting growth of 9% to 10% over 2021 are roughly 10% to 11%.

On a constant currency basis with upwards of 1% of currency headwind expected throughout the year.

Speaker 2: This outlook is consistent with our long-term target for double-digit top-line growth and reflects the benefit we expect from a continued recovery throughout the year.

This outlook is consistent with our long term target for double digit topline growth and reflects the benefit we expect from a continued recovery throughout the year.

We expect adjusted operating margin expansion of up to 100 basis points compared to 2021 levels are up to 150 basis points of expansion excluding impacts from our recent acquisitions. This is above our cycle guidance for margin expansion of 50 to 75 basis points annually driven by the.

Speaker 2: We expect adjusted operating margin expansion of up to 100 basis points compared to 2021 levels or up to 150 basis points of expansion, excluding impacts from our recent acquisition.

Speaker 2: This is above our cycle guidance from margin expansion, a 50 to 75 basis point annually. To ribbon by the benefits we expect from the ongoing recovery, continue to shift toward technology enablement across the business, and additional synergies we anticipate related to the thesis merger.

Benefits, we expect from the ongoing recovery continued mix shift towards technology enablement across the business and additional synergies we anticipate related to the thesis merger.

To provide some color at the segment level, we expect adjusted net revenue growth for our merchant solutions segment to be in the low double digit range, which assumes the recovery continues worldwide. We.

Speaker 2: To provide some color at the segment level, we expect adjusted net revenue growth for our merchant solution segment to be in the low double digit range, which assumes the recovery continues worldwide.

Speaker 2: We expect issuer solutions to deliver adjusted net revenue growth and the mid single-digit growth range for the full year consistent with our longer-term target.

We expect issuer solutions to deliver adjusted net revenue growth in the mid single digit growth range for the full year consistent with our longer term targets.

Speaker 2: Lastly, in our business and consumer segment, we are expecting adjusted net revenue growth to be in the low single digits for this segment in 2022, given the lapping of the benefits from stimulus in both 2021 and 2020.

Lastly, in our business and consumer segment, we are expecting adjusted net revenue growth to be in the low single digits for this segment in 2022, given the lapping of the benefits from stimulus in both 2021 and 2020.

Speaker 2: Lastly, I would highlight that from a quarterly phasing perspective, we expect a recovery from the pandemic will continue throughout the year, allowing for a progressive growth picture as we move through 2021.

Lastly, I would highlight that from a quarterly phasing perspective, we expect a recovery from the pandemic will continue throughout the year, allowing for a progressive growth picture as we move through 2021.

Moving to a couple of non operating items. We currently expect net interest expense to be roughly $375 million and for our adjusted effective tax rate to be approximately 20% for the full year. We also expect our capital expenditures to be around $600 million in 2022.

Speaker 2: Moving to a couple of non-operating items, we currently expect net interest expense to be roughly $375 million and for our adjusted effective tax rate to be approximately 20% for the full year. We also expect our capital expenditures to be around $600 million in 2022.

Putting it all together, we expect adjusted earnings per share for the full year to be in the range of $9 45.

Speaker 2: Putting it all together, we expect Adjust in Invernings per share for the full year to be in the range of $9.45 to $9.67 reflecting growth of 16 to 19% over 2021.

To $9 67.

Reflecting growth of 16% to 19% over 2021 on.

Speaker 2: on a constant currency basis, this reflects annual growth of roughly 17% to 20% and is consistent with the raised September cycle guidance for adjusted earnings per share growth in the high teens to 20% range longer term.

On a constant currency basis. This reflects annual growth of roughly 17% to 20% and is consistent with the raised September cycle guidance for adjusted earnings per share growth in the high teens to 20% range longer term.

Speaker 2: I would highlight that the discontinuance of stimulus and unemployment benefits and our business and consumer segment provides for a tough comparison in the first quarter. As a result, we expect adjusted earnings per share growth to be in the low double digits range in Q1.

I would highlight that the discontinuance of stimulus and unemployment benefits and our business and consumer segment provides for a tough comparison in the first quarter. As a result, we expect adjusted earnings per share growth to be in the low double digits range in Q1.

Speaker 2: Finally, we will provide updates on the strategic review process for our net spin consumer business as the year progressed.

Finally, we will provide updates on the strategic review process for our net spend consumer business as the year progresses.

Speaker 2: In summary, the outstanding performance we delivered across our businesses in 2021 serves as a further proof point that we continue to gain share and that our technology enabled strategy positions as well to capitalize on the accelerating digital trends coming out of the pandemic.

In summary, the outstanding performance, we delivered across our businesses in 2021 serves as a further proof point that we continue to gain share and that are technology enabled strategy positions us well to capitalize on the accelerating digital trends coming out of the pandemic.

Speaker 2: We anticipate and assume an improving macroeconomic environment and waning pandemic impact as the year progresses. We could not be more pleased with our outlook entering 2022. And with that, I'll turn the call back over to Jeff.

We anticipated and assume an improving macroeconomic environment and waning pandemic impact as the year progresses, we could not be more pleased with our outlook entering 2022 and with that I'll turn the call back over to Jeff.

Thanks, Paul I could not be more proud of all that we've accomplished in 2021, despite the incremental challenges we faced throughout the year and our outlook is for an even brighter 2022.

Speaker 3: Thanks, Paul. I could not be more proud that we've accomplished in 2021 despite the incremental challenges we faced throughout the year. And our outlook is for an even brighter 2022.

As we highlighted in September we are today, a top quartile SaaS company the.

Speaker 3: As we highlight in September , we are today at Top Fortiles Ascot.

Speaker 3: the leading issuer technology provider and program manager multinational with unique partnership.

The leading issuer technology provider and program manager multinationals with unique partnerships.

Speaker 3: The largest e-commerce wire with an unmatched virtual and physical presence. And we deliver all these things with tremendous breadth across the developed and attractive emerging markets.

The largest E comm acquire with an unmatched virtual and physical presence.

And we deliver all these things with tremendous breadth across were developed in attractive emerging markets.

Speaker 3: A record results in 2021 and our expectations for 2022 reaffirmed the wisdom of these strategies.

Our record results in 2021, and our expert expectations for 2020 to reaffirm the wisdom of these strategies.

Speaker 3: The trends of digitization, commerce, enablement, software differentiation, and omnichannel prevalence, driving our performance will serve to catalyze our growth throughout 2022 and in the years ahead. Winnie.

The trends of Digitization Commerce, enablement software differentiation and Omnichannel prevalence driving our performance, we will start to catalyze our growth throughout 2022 and in the years ahead Winnie.

Winnie.

Before we begin our question and answer session I would like to ask everyone to limit their questions to one with one follow up to accommodate everyone in the queue. Thank you.

Speaker 1: Before we begin our question in the answer session, I'd like to ask everyone to limit their questions to one with one follow-up to accommodate everyone in the queue. Thank you. Operator, we will now go to questions.

Operator, we will now go to questions.

At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad well pause for just a moment to compile the Q&A roster.

Speaker 3: At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster.

Speaker 4: And your first question comes from the line of Darren Pellard from Wolf Research. Your line is open.

And your first question comes from the line of Darrin Peller from Wolfe Research. Your line is open.

Speaker 2: Hey, thanks guys. Nice job on the merchant side. It's good to see the incremental data on volume, especially comparing it to the industry.

Hey, Thanks, guys.

This job on the merchant side, it's good to see the incremental data on volume, especially comparing it to the industry.

Speaker 2: really helpful to see the performance versus the networks. If you could break that down a little bit when we look at the app performance you're showing, you know, how much of that is being driven by the actual software pieces of your business and second able piece.

Really helpful to see the performance versus the networks, if you could break that down a little bit when we look at the outperformance youre showing how much of that is being driven by the actual software pieces of your business and second able piece.

Speaker 5: So whatever breakdown you can give us in the tech enabled versus not and really even on a geographic basis, Jeff, if there's any more color you can give us and what you saw through the quarter and what you're expecting as recovery resume.

So whatever breakdown you can give us in the second.

Tech enabled versus not.

Really even on the geographic basis, Jeff if theres any more color you can give us on what you saw through the quarter and what youre expecting as recovery resumes.

Speaker 6: Hey there, and it's Cameron. I'll start and I'll ask Jeff and Paul to jump in with any other detail. So

Hey, Darrin, it's Cameron I'll start and I'll ask Jeff and Paul to jump in with any other detail. So maybe if you deconstruct a little bit the volume data that we're providing today obviously.

Speaker 6: Maybe if you deconstruct a little bit of volume data that we were providing today, obviously, I think gave a good amount of disclosure here as you highlighted.

I think gave a good amount of disclosure here you highlighted so year over year, our volumes in the fourth quarter grew 24% versus revenue growth.

Speaker 6: So year-of-a-year are volumes in the fourth quarter grew, 24% versus revenue growth, roughly 21%. In versus 19, that stacks 28%.

Roughly 21% versus 19, <unk>, 28% versus growth of 16% I would say what's impacting the delta is really the software businesses as it relates to the 2019 compare if you look at our pure merchant businesses for the fourth quarter versus 2019, they were up probably 'twenty one 'twenty two.

Speaker 6: You know, versus growth of 16%. I would say what's impacting the Delta is really the software businesses as it relates to the 2019 compare.

Speaker 6: If you look at our pure merchant businesses for the fourth quarter of 2019, they were up probably 21, 22%.

Percent.

Speaker 6: you know, relative to that 28% growth in volume. So a little bit of weighing the software businesses against the 2019 result as a revenue matter. In terms of what's driving things, I think Paul gave a lot of detail in his script. We're obviously seeing very good trends.

Relative to that 28% growth in volume, so a little bit of weighing the software businesses against the 2019 result, as a revenue matter in terms of what's driving things I think Paul gave a lot of detail in his script. We're obviously seeing very good trends in our technology enabled businesses and obviously starting to see.

Speaker 6: in our technology enabled businesses. And obviously starting to see recovery in our software, pure software businesses, vertical market businesses as we head into 2022, even though they're still a little bit depressed versus 2019 levels. But again, integrated, had a terrific quarter yet again. It's compounded rate of growth over the last couple years been in that mid-team range. We continue to see good performance in our point-in-sale software businesses having grown 53% this quarter and roughly 50% year over year.

The recovery in our software pure software businesses vertical market businesses as we head into 2022, even though there is still a little bit depressed versus 2019 levels, but again integrated had a terrific quarter, yet again, it's compounded rate of growth over the last couple of years has been in that mid teen range. We continue to see good performance in our point of sale software.

Mrs having grown 53% this quarter and roughly 50% year over year continue to see good performance in our payroll and HCM businesses as Paul highlighted in his script. So it's pretty clear that the technology enabled businesses.

Speaker 6: continue to see good performance in our payroll and HCM businesses as Paul highlighted in his script. So it's pretty clear that the technology enabled businesses.

Speaker 6: have continued to drive growth in our overall portfolio and our overall results. And as we head into 2022, you know, the software businesses we expect to provide, the vertical market software businesses we expect to provide a nice tailwind to growth, you know, for the year in overall in 2022. Good, Dennis. Jeff, I would just say I said, to kick to what Cameron said a couple of things. First, we see continued trade in our e-con business as Paul Blue II.

Continue to drive growth in our overall portfolio and our overall results and as we head into 2022. The software businesses, we expect to provide the vertical market software businesses, we expect to provide a nice tailwind to growth for the year and overall in 2022, Yeah. Dan. This is Jeff I would just add Ted.

Cameron said a couple of things first we see continued strength in our E comm business as Paul alluded to in his prepared remarks, which were really pleased with in the fourth quarter hang at the year dairy I would say is we.

Speaker 3: and his prepared remarks, which are really pleased with in the fourth quarter of hang of the year. The idea I say is we exceeded our forecast in January , which we feel good about to start the year officer, guys are guys, but we feel good about the trajectory and we did see your recovery in volumes toward the end of January , internally, in certain selected verticals that were in. So we feel like it's tracking very nicely versus our guy today, and we're kind of pleased with the start to the year.

We exceeded our forecast in January which we felt good about the start the year, obviously, our guys. Our guide, but we feel good about the trajectory and we did see a recovery in volumes towards the end of January internally February in certain selected verticals that we're in so we feel like it's tracking very nicely versus our guide today, we're kind of pleased with it.

For the year.

Okay. That's really helpful and it's great to see you guys. Just a quick follow up I know everyone's going to ask about net spend.

Speaker 5: That's really helpful. It's great to see you guys just a quick follow. I know everyone's gonna ask about Nets bend But if you could just hone in for a minute more on the B2B strategy that's coming out of that and know when you talked about Selling potentially selling that's been it was really meant for whether or not you need capital for another purpose chest What kind of allocation you be applying it towards?

If you could just hone in permanent more on the VW strategy, that's coming out of that and when you talked about selling potentially selling that's been it was really meant for whether or not you need capital for another purpose Jeff.

And so is there any thought process. If you were to go through this process and I guess.

Proceeds that makes sense, what kind of allocation you'd be applying it towards thanks again guys.

Speaker 3: Yeah, it's a great question, Darren. So let me just start with this strategy portion of what you asked. So I really think that pivot has been quite some time in incoming. If you think about the company for a second, go back to the investor conference in September , we really positioned the business as adding another like to the stool with B2B. Next, Ben has significant B2B assets, pre-minimal training, of course, post-doctober with mental training and even more significant.

Yes, it's a great question Darrin. So let me just start with the strategy portion of what you asked so I really think that pivot has been quite some time in incoming if you think about the company for a second go back to the Investor Conference in September we really positioned the business is getting another leg to the stool with VB net spend has significant data assets, putting the whole training.

Of course post October .

Mineral <unk>, an even more significant PDP.

<unk> asset. So we reviewed the September Investor Conference is kind of a linchpin in terms of our strategic shift and what our focus and our thesis really really needs to be and I think the success of the integration that we referred to in our prepared remarks of our mineral tray and Paul gave the 19% bookings number as.

Speaker 3: BDB assets. So we reviewed the September investor conference as kind of a link pin in terms of our strategic set and where our focus in our thesis.

Speaker 3: you know, really, really needs to be. And I think the success of the integration that we refer to in our prepare marks for our military and gave the 19% bookings number as well as their payments penetration into that business.

As well as their payments penetration into that business is something we're very excited about is we're off to a really good start. So we think from that point of view, we laid the predicate in September or the execution was very good through the fourth quarter I think we're in good shape as a guidance matter.

Speaker 3: is something we're very excited about. So we're off to a really good start. So we think from that point of view, we leave the predicate in September , the execution was very good through the fourth quarter. Think very good shape as a guidance matter in B to B. So I think the right thing to do, therefore, is to focus on highlighting those assets that are consistent with the large term strategy of the company, which is really on the corporate client focus. And I kind of listed that to my script, software companies, technology leaders. And we're really not a B to C direct kind of company, which is the part we refer to really in the presentation. So I think the strategy shift has been, you know, some time incoming. I think September .

So I think the right thing to do therefore said focus on highlighting those assets that are consistent with the long term strategy of the company, which is really on the corporate client focused on kind of less of that to my script software companies technology leaders and we are really not a BDC direct kind of company, which is the part we referred to.

In the presentation. So I think the strategy shift has been some timing coming I think September was a big was a big milestone I think the closing of milk in October was a big milestone I view this as kind of the next milestone.

Speaker 3: Was a big, was a big milestone, I think, to close the military in October . Was a big milestone. I view this as kind of the next milestone. I have your question now, allocation of proceeds. Look, it's good to pan where things are.

Allocation of proceeds look it's going to depend where things are at.

Speaker 3: if it when we reached the point where we have something that we would execute. You saw our announcement today about increasing our buyback up to another $2 billion just to be clear that amount does not assume any disposition of net spend. So if that were to happen and if we were retiring more capital than that would be incremental to the $2 billion, we've repurchased about 6% of the company stock since the 2020 period that doesn't include the current $2 billion depending on working shake out over periods of time. That could be another 5% and then obviously if we reduce something with net spend the one line that you ask.

<unk> reached the point, where we have something that we would that we would execute you saw our announcement today about increasing our buyback up to another $2 billion just to be clear that amount does not assume any disposition of NES. Ben So if that were to happen an equivalent retire more capital and that would be incremental to the $2 billion, we've repurchased about 6% of the company.

<unk>.

The 2020.

Period that doesn't include the current 2 billion, depending on where things shake out over periods of time that could be another 5% and then obviously if you do something with <unk> along the lines that you asked and if we were to repurchase stock that would be incremental to that number. So it's just going to depend on the facts and circumstances at the time that we.

Speaker 3: And if you were to report your stock, that would be incremental to that number. So it's just going to depend on the facts and circumstances, you know, at the time that we, you know, that we do it. I don't expect it, you know, if this is something we proceed with, it would be later, you know, this year in calendar 22, you know, our guys are guys.

That we do it I don't expect it. If this is something we proceed with it would be later this year in calendar 'twenty two our guidance our guide.

Speaker 3: And I don't expect it to have an all-electricity impact depending on when it happens, you know, in 2022. But that's something we'll address if and when we kind of reach that decision point. Okay, that makes sense.

And I don't expect it to have been all that significant impact depending on when it happens in 2022, but that's something we'll address if and when we kind of reached that decision point.

Okay that makes sense. Thanks, a lot guys.

Thanks Sarah.

Your next question comes from the line of Bryan Keane from Deutsche Bank. Your line is open.

Speaker 4: Your next question comes from Alina Brian Keane from Deutsche Bank. Your line is open.

Good morning, guys and congrats on the results just a follow up on net spend what can you remind us what percent of their revenues are assets or the <unk> side that youre going to keep and talk a little bit about that.

Speaker 2: Good morning guys and congrats on the results. Just to follow up on Ned Spen, what can you remind us what percent of their revenues or assets or the B2B side that you're gonna keep and talk a little bit about that B2B Ned Spen's assets, how it compares the mineral tree and the other things you have in the portfolio.

<unk> B.

Net spends assets.

<unk> mineral tree and the other things you have in the portfolio.

Speaker 2: Sure, Brian . So if you kind of think, and a lot of it, it's just going to depend on...

Sure Brian So if you kind of think in a lot of it is going to depend on.

Speaker 2: you know how the strategic review goes, what potential buyers.

The strategic review goes what potential buyers.

Speaker 2: you know, interest level is in the various pieces, but just at a high level, the way to kind of think about it is, roughly 15% of the business is kind of the B2B assets that Jeff was just referring to, and obviously the two biggest components of that are pay card business, as well as the mineral tree business. I would highlight just as an add-on to what Jeff said.

This level is in the various pieces, but just at a high level the way to kind of think about it is roughly 15% of the business is kind of the b to b assets that Jeff was just referring to and obviously the two biggest components of that are our pay card business as well as the mineral tree business I would highlight just.

As an add on to what Jeff said, both of those businesses have high growth characteristics to them and certainly higher than the consumer piece.

Speaker 2: Both of those businesses have high growth characteristics to them and certainly higher than the consumer piece. Both businesses on a fundamental basis grew double digits in the fourth quarter and have that consistent kind of growth rate on a forward looking basis relative to kind of the psycho-guide range that we want for the company. So the fundamentals of those businesses have those kind of characteristics strategically but also it's just a growth matter as well.

<unk> business is on a fundamental basis grew double digits in the fourth quarter and have that consistent kind of growth rate on a forward looking basis relative to kind of a cycle guide range that that we want for the company. So the fundamentals of those businesses.

Those those kind of characteristics strategically, but also is just a growth matter as well.

Speaker 2: You know, if it relates to the fit, the overall fit, we talked about this obviously in the investor day, but there's a lot of kind of synergistic benefits with the commercial car business, obviously B2B, that we have in our issue or business,

As it relates to the fit the overall fit we've talked about this obviously in the Investor day, but there's a lot of kind of synergistic benefits with the commercial card business, obviously BW that we have in our issuer business, which also grows at a faster rate than a normalized environment. Obviously, it's been a headwind to our growth during the pandemic and kind of between what men.

Speaker 2: and kind of between what mineral tree has and what we have in that solution set around the broader B2B apparatus that we have in the issuer is a nice fit. And I would just mention on the pay cards side, obviously what we do on our payroll business and our merchant solutions kind of segment has some nice synergistic benefit. So.

<unk> III has and what we have in that solution set around the broader b b.

Apparatus that we have an issuer is a nice fit and I were just mentioned on the pet card side, obviously, what we do on our payroll business and our merchant solutions segment has some nice synergistic benefit. So yes, I mean thats as Jeff said, that's kind of the strategy. That's why we're interested in keeping those.

Speaker 2: Yeah, I mean, that's just it. That's kind of the strategy to why we're interested in keeping those.

Speaker 2: kind of B2B assets and worth to kind of strategically review the consumer assets.

Kind of BBB assets and look to kind of strategically.

Strategically review the consumer assets.

Speaker 2: Got it and then just as a quick follow up Jeff, I know you talked about the kysher bank win Just want to make sure we understand How you guys are going to market with that? It sounds like you're using the unique assets between the two companies and Obviously there's probably more to come from from winning deals like this But but could you just highlight the differences to get you that winning question?

Got it and then just as a quick follow up Jeff I know you talked about the case your bank win just wanted to make sure we understand.

How are you guys.

We're going to market with that it sounds like youre using the unique assets between the two companies and obviously, there's probably more to come from from winning deals like this but could you just highlight the differences to get you that when it comes from bank.

Speaker 3: Yeah, it's a great question, Brian . Thanks. So we're really pleased to announce that today. And I said in the prepare remarks, it's 30 million cards. This is a really big deal. And we expect to be live in the back half of next year toward the end of next year. Because also, as I said in the prepare comments, if it's a big deal about it is...

Yes, great question, Brian . Thanks, So we're really pleased to announce that today as I said in the prepared remarks, it's 30 million cards. This is a really big deal and we expect to be live in.

In the back half of next year towards the end of next year as Al said. This is that in the prepared comments I think it's a big deal about it is it's direct to the cloud. So we're taking a traditional institution with a good book of business to 30 million cards, and going live kind of day, one and a cloud based environment, which is something we've invested very heavily in at least <unk>.

Speaker 3: It's direct to the cloud. So we're taking a traditional institution with a good book of business to 30 million cards and going live kind of day one in a cloud-based environment, which is something we...

Speaker 3: invested very heavily in, at least since August 2020. Do you like to point out, Brian , given the size of it is?

August by 2020, I would like to point out Brian given the size of it as we said in our slide show today is we have 31 million accounts on file in our implementation pipeline today at Tcs issuer. This is another 30 million thats not that number Brian that would actually double the implementation pipeline just to give you a sense of some.

Speaker 3: We said in our slideshow today, as we have 31 million accounts on file in our implementation pipeline today at TSA's issuer, this is another 30 million, that's not that number of brands, that would actually double the implementation pipeline just to give you a sense of size. And we think this would be one of our top two or three customers in Europe by way of size. As I said in the press release this morning, this will also make us among the largest debit technology provider.

And we think this will be one of our top two or three customers in Europe by way of size as I said in the press release. This morning. This will also make us among the largest debit technology providers.

Speaker 3: uh... in uh... you know what you're so it's it's really you know it's a really big deal uh... at the end of the day i don't just say it's a relationship three one million existing accounts on file that are currently implementation pipeline twenty million are coming online coming online live

In all of Europe . So it's really it's a really big deal at the end of the day I would also say as it relates to the 31 million existing accounts on file that are currently implementation pipeline $22 million are coming online are coming online live. This year thesis in 2020. So this is a really big increment and also very nicely as we grow.

Speaker 3: this year's thesis in 2022. So this is a really big increment, and also very nicely as we grow, as Paul said throughout the year in 2022 in issuer, this has a very healthy pipeline plus truest.

So as Paul said throughout the year in 2022, initially or this adds a very healthy pipeline plus truest, which.

Speaker 3: which we previously announced in 2023, as well as Virgin Money. So we're super positive about where it is. As links to Kaysha more broadly, look, this is something that Kaysha conducted an extensive art beyond, you would imagine that they went extensively to kind of compare art technologies versus new entrances, as well as other providers.

Which we previously announced in 2023 as well as Virgin money. So we're super positive about where it is as it relates to more broadly look this is something that <unk> conducted an extensive RFP on you would imagine that a win extensively to kind of compare our technologies versus new entrants as well as other providers in.

In the marketplace in Europe , and globally, and we couldn't be more pleased that they selected us and obviously, we got great feedback coming out of it. So it gives a lot of confidence in the remainder of this year's growth given the current pipeline, but doubles the pipeline heading into next year, which makes us feel really good about the next 18 months.

Speaker 3: in the marketplace in Europe and globally. And we couldn't be more pleased that they selected us and also got great feedback coming out of it. So it gives a lot of confidence in the remainder of this year's growth, given the current pipeline, but double the pipeline heading into next year, which makes us feel really good about the next 18 months. Great, thanks for the call.

Great. Thanks for the color.

Thanks Pat.

Your next question comes from the line of Ashwin <unk> from Citi. Your line is open.

Speaker 4: Your next question comes from a line of Ashwin Shrevekhar from City. Your line is open.

Speaker 7: Thank you, Edith, Karen, for a good morning, and congratulations on the execution.

Thank you.

Karen good morning.

And congratulations on the execution.

Speaker 7: My first question is with regards to positive sales commentary, including the expansion of use cases and relationships, good to see. Can you comment on the qualified pipeline of opportunities, how it compares to a year ago, and do you see your clients exhibit maybe a greater sense of urgency that can translate to a faster decision making, click the ramps? What should we expect of the sales front in 22?

Okay.

Question is.

Glad to see positive sales commentary, including the expansion of use cases and relationships. It's good to see can you comment on the qualified pipeline of opportunities how it compares to a year ago and do you see your clients exited maybe a greater sense of urgency that can translate to I don't know.

Faster decision, making because of amps, what should we expect to understand in 'twenty two.

Speaker 3: Yeah, actually Jeff, I'll start speaking to the issuer and then I'll ask Cameron and Paul and we give a lot of booking details this morning, they'll have to come in on merchant. So let's say no surprise to you, Ashley, or let's say anyone listening to the call, in issuer, the cloud sales. So I gave that example of Tysha, direct to cloud, not looking for any kind of intermediate.

Yes, Jeff I'll start and speaking to issuer and then I'll ask Cameron and Paul and we give a lot of bookings detail. This morning, I will ask him to comment.

On merchant so, let's say no surprise to you Ashwin I was listening to the call anyone listening to the call initial where the cloud sales. So as I gave that example pasha direct to cloud not looking for any kind of intermediate step in between we also announced today, a new partnership with Mastercard, which will put online transaction data directly to cloud AWS, which means as a consumer.

Speaker 3: step in between. We also announced today a new partnership with MasterCard, which will put online transaction data directly to Cloud AWS, which means as a consumer, you can actually look online live at your postings and overdo balances and see really kind of real-time flows through AWS and the cloud. And that's really just with us for the next period of time through the main of the year when it goes live. So look, I would say that on the cloud side, things are moving very quickly. We announced the KD deal in the Czech Republic, which is a legacy global payments culture going direct.

You can actually look online live at your postings and overdue balances and seeing really kind of real time flows through AWS and the cloud and Thats really just with Oscar for the next period of time through the end of the year when it goes down when it goes live so look I would say.

On the cloud side things are moving very quickly we announced the <unk> deal in the Czech Republic, which is a legacy global payments catcher going direct to prime in the cloud, which is a big deal we announced the other customer.

Speaker 3: to prime in the cloud, which is a big deal. We announced the other customer in Asia, also going live and prime in the cloud as well. So I would say as it relates to decision-making and phase of implementation, I would say the cloud, which is part of our thesis we did the deal in the first place has really accelerated the time to market. Now why would that be? Number one, I think it's very topical for most CTOs at large banks.

And Asia also going live in prime in the cloud as well so I would say as it relates to decision, making and phase of implementation I would say the cloud which is part of our thesis when we did the deal in the first place is really accelerating the time to market and why would that be number one I think it is very topical for most of the CTO at large banks number two I would say if you look at the.

Speaker 3: Number two, I would say if you look at the historical thesis model, I'll kind of bind it off one place and Paul alluded to the managed services side of the business, which is really call center functionality. Well, we're really emphasizing going forward is micro services and decomposed and deconstructed API. So you can kind of buy by the drink with us and you're seeing some of the early winds here, which would accelerate decision making Ashwin. Some of the early winds around prime live in the cloud, which is what we kind of announced today. And then with Kaisu, you're seeing whole enterprises, what would have been TS2, the whole enterprise is going direct to the cloud live. So I would say that the pivot.

Historical thesis model buying at all from one place and Paul alluded to the managed services side of the business, which is really call center functionality, but we're really emphasizing going forward is micro services.

Decomposed deconstructed.

So you can kind of buy by the drink with US and are you seeing some of the early wins here, which would accelerate decision, making ashwin some of the only wins around prime live in the cloud, which is what we kind of announced today and then with tightened youre seeing whole enterprises, but would have been <unk> to the whole enterprises going direct to the cloud lives. So I would say that the pivot towards <unk>.

Speaker 3: toward a cloud is certainly short-circuited. Some of the time frames you might have seen historically, we're live with that, we use cases with crime, and obviously with Kysher, we'll be live with that in the back after 2023, as we said today. So certainly the issue was fine, I feel good about it. I also say, if I turn over to Cameron and Paul on Merchant, that we announced today two partnerships with Ecolidic and extend these are neo-banked Fintech startup, you know, kind of companies that are focused on selling ESG microservices and APIs.

And certainly short circuited.

Some of the Timeframes you might've seen historically, we're live with that would use cases with prime and obviously the case it will be live with that in.

The back half of 2023, as we said today. So it's on the issuer side I feel good about it I would also say before I turn it over to Cameron and Paul on merchant that we announced today two partnerships with <unk> and extend these neo bank Fintech startup kind of companies that are focused on selling ESG micro services and API.

Speaker 3: into all manner the new way of issuers. The same thing would extend on the virtual card side. We're providing virtual card technology from TCCIS.

Into all manner of.

But new ways of issuers the same thing with extended the virtual card side, we're providing virtual card technology from <unk> into the <unk> space, that's something we never going to be able to do historically by way of distribution, we're doing that here through AWS and Pwc those are all incremental and things that we described is tripling the Tam back when the <unk>.

Speaker 3: into the B2B space. That's something we never would have been able to do historically by way of distribution. We're doing that here through AWS and PWC. Those are all incremental and things that we describe just tripling the TAM. That will be announced as when the August 20, I AWS.

Ashwin the August 20, AWS unique collaboration so I do agree with your thesis that we're seeing an acceleration in sales opportunities on the issuing side can't really talk about but merchant Sharon good morning, Ashwin I would say, obviously, we provided some booking data today for the merchant business for the full year 2021, plus 20%, obviously, you're suggesting we have a lot.

Speaker 3: unique collaboration. So I do agree with your thesis that we're seeing acceleration in sales opportunities on the issue. So I can't even talk about the motion. Sure, good morning, Ashwin. I would say obviously we provided some booking data today for the merchant business for the full year, 2021, plus 20%.

Speaker 6: Obviously, suggesting we have a lot of positive momentum from a new sales and execution standpoint heading into 2022. I've highlighted a few things. One is we continue to see positive tailwinds coming out of the pandemic for our safer commerce solutions, our army channel solutions, and our commerce enablement solutions.

The positive momentum from a new sales and execution standpoint heading into 2022 I'd highlight a few things. One is we continue to see positive tailwind is coming out of the pandemic for our favorite Commerce solutions, our Omnichannel solutions, and our Commerce enablement solutions, where we're really seeing with our core merchant customer base is a strong demand for technology.

Speaker 6: What we're really seeing with our core merchant customer base is their strong demand for technology. They're strong demand for efficiency and they're strong demand for solutions that help offset the fact that hiring is very difficult right now. So the more we can bring to bear on our customers to help them again run their businesses more effectively.

There is strong demand for efficiency and there is strong demand for solutions that help offset the fact that hiring is very difficult right. Now so the more we can bring to bear on our customers to help them again run their businesses more effectively and find opportunities to grow their business. The more traction we're achieving from a sales perspective, and the new market. So our targets for 2022, I would say are roughly consistent.

Speaker 6: and find opportunities to grow their business. The more traction we're achieving from a sales perspective in the new market.

Speaker 6: So our targets for 2022, I would say are roughly consistent in terms of growth as to what we achieved in 2021 as a new bookings matter. We have a lot of confidence and momentum heading into the year that we'll be able to execute against that. The last thing I'll say is as we started 2022, we've actually brought our U.S. payments business and our GPI business together as a distribution matter.

In terms of growth as to what we achieved in 2021 is a new bookings matter, we have a lot of confidence and momentum heading into the year that we'll be able to execute against that so the last thing I'll say is as we started 2022, we've actually brought our U S payments business and our GPI business together as a distribution matter, which will allow us to really unleash our relationship manner.

Speaker 6: which will allow us to really unleash our relationship managers in the US Payments Channel on our GPI Partner customer.

<unk> in the U S payments channel on our GPI partner customers. So this gives us new opportunities I think to accelerate growth of a smoother go to market motion from a sales and distribution perspective here in the U S and I think unlock untapped value that exists in that portfolio of vertical market partners that we have in the GPI business bye.

Speaker 6: So this gives us new opportunities, I think, to accelerate growth, have a smoother go-to-market motion from a sales and distribution perspective here in the US. And I think unlock, untapped value that exists in that portfolio of vertical market.

Speaker 6: partners that we have in the GPI business by attacking it with a broader sales force going forward. So I think we have a lot of confidence around where we are from a new sales and execution.

Attacking it with a broader sales force going forward. So I think we have a lot of confidence around where we are from a new sales and execution and very simply put I don't think we've ever been in a better place as a distribution matter, particularly from a technology enabled distribution perspective, nor have we been in a better place in terms of the product solutions and capabilities that we can bring to bear on the market. So.

Speaker 6: And very simply put, I don't think we've ever been in a better place as a distribution matter, particularly from a technology-enabled distribution perspective.

Speaker 6: nor we've been in a better place in terms of the product, cool solutions and capabilities that we can bring to bear on the market. So we have a lot of confidence in our ability to continue the trends we saw coming out of 2021 from a new sales and bookings standpoint. And I think obviously that underlies the the guide that we provided for 2022 as well for the merchant business.

We have a lot of confidence in our ability to continue the trends we saw coming out of 2021 from a new sales and bookings standpoint, and I think obviously that underlies the guide that we provided for 2022 as well for the merchant business.

Thank you good details maybe question for Paul.

Speaker 7: Thank you. These are great details. Maybe a question for Paul. You know, appreciate the high level color on overall cadence and the point on one cube being the toughest comp, I guess, is well understood. But could you maybe step into and provide more details on underlying assumptions for cadence revenues and margins by segment?

I appreciate the any high level color on overall cadence Andy.

And the point on <unk> being the toughest comp I guess is it.

Well understood.

But could you maybe step in to provide more details on underlying assumptions, so cadence revenues and margins by segment.

How that ramps.

Okay.

Speaker 2: Yeah, so, you know, just as you said, the biggest kind of impact, you know, that we would call out would be the whole stimulus impact in the, in the business consumers. The good thing about that just as a comparison dynamic is the stimulus impact is largely secluded to that first quarter. So we don't have that kind of playing through the other quarters.

Yes, so just as you said the biggest kind of impact.

That we would call out would be the whole stimulus impact in the business and consumers. The good thing about that just as a comparison dynamic is the stimulus impact is largely secluded to that first quarter. So we don't have that kind of playing through the other quarters I would say at a segment level.

Speaker 2: I would say at a segment level, if you just take the overall guide and just look at it first at merchant, we're in that kind of low teams in the first half and then that kind of low double digit kind of the second half. And that's large in just depending on the comp that you're kind of comparing to in the dynamics in that quarter. So that's kind of somewhat of a breakout between the first half and the second half. And then I would say, from the issue of business, it's kind of more higher single digit growth in the back half, more kind of mid single digit growth, you know, more in the first half. And we do have some kind of ramping of commercial card recovery occurring throughout the year. So that provides a little more pressure in the first quarter. It kind of improves in the second quarter, the third quarter and fourth quarter. You know, one thing we did see, and this was underlying the guys, we did see some deceleration between three, two and four, Q and commercial card, you know, in our in our issue or business. And so we're kind of now projecting that maybe to take some time to recover. So you're going to kind of see that thing play throughout the year as we do expect commercial card to kind of recover to a to a more normalized level in a more normalized environment. And finally on that, the NC line, you know, obviously I called out what the impact is.

Just kind of take the overall guide and just looked at at first that merchant we're in that kind of low teens in the first half and then that kind of low double digit kind of in the second half and that's largely just depending on the comp that you're kind of comparing to and the dynamics in that quarter. So thats kind of somewhat of a breakout between the first half in the second half and then I would say from the issue.

<unk> business, it's kind of more higher single digit growth in the back half more kind of mid single digit growth more in the first half and we do have some kind of ramping up commercial card recovery occurring throughout the year. So that provides a little more pressure in the first quarter. It kind of improves in the second quarter the third quarter in <unk>.

Quarter, one thing we did see and this was underlying the guys. We did see some deceleration between <unk> and <unk> and commercial card.

In our issuer business and so we're kind of now project and that may be to take some time to recover and so youre going to kind of see that thing play throughout the year is as we do expect commercial card to kind of recover to a to a more normalized level in a more normalized environment and then finally on that D&C line, obviously I called out what the impact is.

<unk>.

Speaker 2: you know, in the first quarter and then, you know, it kind of goes to that more mid single digit, higher single digit kind of growth rate and in the back half of the year was as we anniversary that first quarter. So that kind of gives you a broader context of how we look at next year, obviously, you know, things will play themselves out and we'll get more colors of year progresses, but that's how we're looking at it right now. That is, thank you.

In the in the in the first quarter and then it kind of goes to that more mid single digit higher single digit kind of growth rates in the back half of the year was as as we anniversary that first quarter. So that kind of gives you a broader context of how we look at next year, obviously things will play themselves out we'll give more color as the year pre.

<unk>, but that's how we're looking at it right now.

Got it thank you all for the detail.

Thanks, Ed.

Speaker 4: Your next question comes from a line of James Fossette from Morgan Stanley . Your line is open.

Your next question comes from the line of James Faucette from Morgan Stanley . Your line is open.

Speaker 8: Thank you very much. Appreciate all the details on the different aspects of the business. I wanted to touch on quickly asset allocation and strategic. You guys have always talked about looking at acquisitions and that's been obviously been a focus in you highlighted what you spent the last couple of years. How are you thinking about the recent change in the overall public market valuations? Is that changing the potential landscape?

Great. Thank you very much.

I appreciate all the details on on the different aspects of the business I wanted to touch on quickly asset allocation and strategic you guys have always talked about looking at acquisitions and that's been obviously been a focus and you highlighted what you've spent the last couple of years. How are you thinking about the recent change in.

The overall public market valuations is that changing the potential landscape.

Speaker 8: for M&A, for you, and are you looking at incremental opportunities as a result?

For M&A for you and are you looking at incremental opportunities as a result.

Speaker 3: Yeah, James, Jeff, it's a great question. So I'd say a few things to what you asked. Look, we have a long pipeline of opportunities, but I think we're very cognizant that we're generating really attractive returns by buying back the stock. So while we have a lot of things that we could do in the strategic side to get the returns that we're looking at in the stock market from buying back our own stock, the bar is just pretty high at the end of the day. We're just finishing a period where we generate something like 2.5 billion, they're about.

Yes, Jamie this is Jeff it's a great question. So I'd say a few things to what you you asked look we have a long pipeline of opportunities, but I think we're very cognizant that we're generating really attractive returns by buying back the stock.

While we have a lot of things that we could do on the strategic side to get the returns that we're looking at in the stock market from buyback our own stock the borrowers just pretty high at the end of the day, we're just finishing a period, where we generate something like $2 5 billion thereabouts in free cash flow, we picked up leverage a little bit up to around three times on a net basis as Paul said.

Speaker 3: In free cash flow, we picked up leverage a little bit up to around three times on a depth basis as Paul said and gets them like 2.5 billion of available capacity. So there's really no shortage.

I guess I'd like $2 5 billion of available capacity. So there's really no shortage of things. We can continue to do as I said in response to one of the earlier questions. We've already bought back 6% of the stock since the pandemic started we'll do another 5% more or less this year, depending on conditions. If we exhaust the $2 billion I mentioned today and if we redeploy net stand if that were to occur.

Speaker 3: of things we can continue to do. As a certain response to one of the earlier questions, we've already bought back 6% of the stock, since the pandemic kind of started, we'll do another 5% more or less this year, depending on conditions, if we exhaust the $2 billion that mentioned today, and if we redeploy a net spend, if that were to occur, depending on how we redeploy that, that could be another big chunk.

Her.

Depending on how we deploy that that could be another big chunk coming back and so the nice thing about where we are games, we have tons of free cash flow generation and a very high conversion rate, which we reiterate today and a very good expansion of margin. So we have plenty of capacity from cash on hand free cash flow conversion and leverage capacity to them.

Speaker 3: you know coming back in so the next thing about where you are James is we have tons of free cash flow generation and a very high conversion rate which we reiterate today and a very good expansion of margin so you play a capacity

Speaker 3: from cash on hand free cashflow, conversion, and leverage capacity to invest in our business. The question for us is, what side of pendulum do you gonna fall on and clearly as we just suggested?

Invest in our business the question for Us is.

What side of pendulum do you kind of fall on and clearly as we just suggested.

Speaker 3: We've been more on this side. I think the number I gave was 3.7 billion of Ibacks relative to and a half.

We have been more on the side I think the number I gave was $3 7 billion of buybacks relative to two and half of that.

Speaker 3: Of that may, clearly in most recent period, given where the stock has gone on the market and the dislocations and Fintech, clearly we've aired rightly so, more on the side of buybacks. So we will depend. I would say at the end of-

Clearly the most recent period, given where the stock has gone on in the market and the dislocations in Fintech clearly Eric slightly so more on the side of buybacks. So it will depend I would say at the end of the day.

Speaker 3: Leibor's markets remain very favorable. Paul quoted our recent capital rate in November , which was like 2.27% pretax.

Leverage markets remained very favorable Paul quoted our recent capital raise in November which was like two 7% pre tax which is a very attractive rate, having done $2 5 billion more or less a free cash flow last year will do an increment. This year. So we've done a lot of avenues that we can pursue so we have no real practical constraint as we said in September .

Speaker 3: which is a very attractive rate. Having done 2.5 billion more or less the free cash last year, we'll do an increment this year. So we've got a lot of avenues that we can pursue. So we have no real practical constraint, as we said, in September at the Investor Conference, we expect you to $3 billion of available free cash or leverage capacity of the next three to five year cycle. You saw the $6 billion in the press release just in 2020s or a well-entrapped.

The Investor Conference, we expect <unk> 30 billion of available free cash flow leverage capacity over the next three to five year cycle. You saw the 6 billion in the press release, just since 2000, Twenty's, we're well on track on that $30 billion, but certainly given where things are today, our thunder on a scale of repurchase and Thats why you saw some of this morning.

Speaker 3: on the 30 billions, but certainly give them where things are today. You know, our thumb is on the scale of repurchase, and that's what you saw some of this morning.

That's great and then just a quick follow up for Paul I.

Speaker 8: That's great. And then just a quick follow up for Paul. You know, I appreciate the detail you gave on how you're thinking about the top line evolution of.

I appreciate the detail you gave on how you're thinking about the topline evolution of.

Through 2022, but as we are you thinking that as we exit 2022.

Speaker 8: through 2022, but, you know, as we, are you thinking that as we exit 2022, that is your planning assumption that we'll be on kind of a normalized behavior and economic footing such that we're really carrying kind of those, that double digit growth into 2023 and, and, you know, we can see that persist. And I guess as part of that question, as well as how we, how should we think about op-x evolution through the year? Thanks a lot.

And that is your planning assumption that will be on kind of a normalized behavior and economic footing such that we're really carrying kind of those that double digit growth into 2023.

We can see that persist and I guess as part of that question.

As well as how we how should we think about opex evolution through the year. Thanks a lot.

Yes, sure. So yes, the answer to your first part of the question is yes kind of exiting 'twenty.

Speaker 2: Yes, here. So yes, the answer to your first part of the question is yes, kind of the exiting of 2022 is in that kind of...

<unk> 2022 is in that kind of double digit kind of growth range that we've talked about both in our September investor conference in and kind of how we look at the business. So and certainly we are as I said in the prepared remarks preparing pouring more progressively normalized environment throughout the year next year.

Speaker 2: Double digit kind of growth range that we talked about both in our September investor conference and kind of how we look at the business. So and certainly we are, as I said, in the prepare remarks, preparing for more.

So yes.

That's our vision of the way, we look at 2022 as it relates to Opex and kind of margin I wouldn't necessarily call out anything with the exception of that first quarter, we would have kind of margin headwind related to the.

Speaker 2: flow through of all the stimulus kind of impact. But absent that, you know, with this 100 basis point kind of fundamental margin expansion up to 100 basic points or up to 150 basis points X and NA, you know, kind of would be a pretty good guide if you look throughout the following three quarters. And, you know, it's it relates to specifically kind of segment level between both merchant and issue were, you know, both of those segments are in that range. And then obviously we don't have the same kind of margin expansion expectations for B and C given that, you know, world over is it relates to stimulus.

The flow through of all the stimulus kind of impact but absent that.

This 100 basis point kind of fundamental margin expansion up to 100 basis points or up to 150 basis points ex M&A kind of would be a.

Speaker 2: you know, kind of would be a pretty good guide if you look throughout the following three quarters. And, you know, it's a related to specifically kind of segment level between both merchant and issuer, you know, both of those segments are in that range. And then obviously we don't have the same kind of margin expansion expectations for B&C, given that, you know, a row over as it relates to stimulus.

A pretty good guide as you look throughout the following three quarters.

And as it relates to specifically kind of segment level between both merchant and issuer both of those segments or in that range and then obviously, we don't have the same kind of margin expansion expectations for BMC given that.

Rollover as it relates to stimulus.

Speaker 4: Your next question comes from a line of Jason Cufferberg from Bank of America. Your line is open.

Your next question comes from the line of Jason Kupferberg from Bank of America. Your line is open.

Thanks, guys just wanted to start on the merchant side. So we're talking about low double digit growth for 2022, I guess, if we just look at the expectations for the other segments just put a finer point on it maybe we were talking around 12% call. It in merchant can you give us a sense of how that might breakdown by processing versus owned software.

Speaker 3: Thanks guys, I'm just wanted to start on the merchant side. So we're talking about low double digit growth for 2022. I guess if we just look at the expectations to the other segments to put a finer point on it, maybe we're talking around 12% call it in merchant. Can you give us a sense of how that might break down by processing versus own software in kind of a base case scenario?

And kind of a base case scenario.

Speaker 2: You know, I wouldn't necessarily kind of go to that kind of level of granularity, you know, is it relates to, you know, kind of the growth of it, you're all right in that kind of overall sizing of the growth rate that you mentioned there, but you know, is it relates to the component drive, it kind of just maybe...

I wouldn't necessarily kind of go to that kind of level of granularity as it relates to kind of the growth rate you are right in that kind of overall sizing of the growth rate that you mentioned, there, but as it relates to the component driving kind of just maybe.

Speaker 2: Go back to what Cameron provided early. He may have some additional comments as well, but that you know our tech enabled and Particularly we highlight kind of integrated and and obviously some of the software assets that we talked about in the prepared more Arts would be you know on the higher side of that kind of a growth pendulum and then you know on the on the lower side or some of the other businesses and certain Geography

I'd go back to what Cameron provided earlier and he may have some additional comments as well, but that our tech enabled and particularly we'd highlight kind of integrated and obviously some of the software assets that we talked about in the prepared remarks would be on the higher side of that kind of growth pendulum and then.

On the lower side or some of the other businesses in certain geographies vertical markets, obviously, depending on the recovery dynamics in those various businesses kind of play their way through we have to kind of assumptions on each one of those around the recovery and how those look throughout the year and there is some timing elements with some of those so that would be the right way to kind of think about it.

Speaker 2: Part of the market's obviously depending on the recovery dynamics and in those various business, you're kind of playing their way through. We have kind of assumptions on each one of those around the recovery and how those look throughout the year. And there's some timing elements with some of those. So, you know, that would be the right way to kind of think about it. Higher growth on the tech enabled side. Certainly that's the right kind of overall growth rate. And Cameron, I don't know if you have anything else to add. Yeah, maybe just a few other points that I would call out specifically. So, maybe to start with, there's about a point of FX headwind kind of in that number. So, if you think about it on a normalized constant currency basis, it's going to be a little bit higher.

Higher growth on the tech enabled side.

That's the right kind of overall growth rate and Cameron I don't know if you have anything else to add maybe just a few other points that I would call out specifically so maybe to start with there is about a point of FX headwind kind of in that number. So if you think about it on a normalized constant currency basis is going to be a little bit higher. So there's a few things I think going on that are worthy of calling out.

Speaker 6: So there's a few things I think going on that are worthy of calling out. Certainly in the US, we expect to see, you know, continue strong trends. We've seen a good recovery in the US, so probably not quite as much of a tailwind in 2022 from a US recovery, because a lot of that has flowed through, but still a little bit of tailwind there. We expect to see more tailwind coming out of our vertical market software businesses, of course, as Paul highlighted earlier. And we continue to see recovery in the specific verticals that have been more heavily impacted by the pandemic kind of heading into 2022.

Certainly in the U S. We expect to see continued strong trends we've seen a good recovery in the U S. So probably not quite as much of a tailwind in 2022 from a U S recovery because a lot of that has flowed through but still a little bit of tailwind. There we expect to see more tailwind coming out of our vertical market software businesses of course as Paul highlighted earlier as we continue to see recovery.

In the specific verticals that have been more heavily impacted by the pandemic kind of heading into 2022, and we still have a little bit of runway left I would say internationally.

Speaker 6: And we still have a little bit of runway left. I would say internationally with rubber recovery standpoint from the pandemic as well, that gives us a little bit of a tailwind over all.

Recovery standpoint from the pandemic as well that gives us a little bit of a tailwind overall, but clearly growth is going to continue to be led by our technology enabled businesses as Bob highlighted earlier, we continue to have strong expectations for GPI as I mentioned earlier by unleashing additional sales resources against that channel, we expect to be able to drive incremental opportunities there.

Speaker 6: But clearly growth is going to continue to be led by our technology enabled businesses, as Paul highlighted earlier. We continue to have strong expectations for GPI. As I mentioned earlier by unleashing additional sales resources against that channel, we expect to be able to drive incremental opportunities there. Clearly, E-Com and our Omni-channel solution remain very robust from a demand standpoint. We saw great growth in those in 2021 and 2022 starting out well on that front. We'll continue to be a tailwind for the business.

<unk> clearly E com and our omni channel solutions remain very robust from a demand standpoint, we saw great growth in those in 2021, and 2022 is starting out well on that Brian and will continue to be a tailwind for the business as well and then our other software commerce enablement solutions across HCM and payroll Pos solutions.

Speaker 6: as well. And then our other software and conference enablements solutions across HPM and payroll PLS solutions.

Speaker 6: et cetera, our analytics and customer engagement platform as we roll out our Google running grow my business solutions this year. Obviously those will be a nice tailwind to grow the overall for the year. So again, overall the business will, I think, produce results above the long-term sort of expectations we have for the business, largely benefiting by continued recovery from the pandemic in 2022. But to the earlier question, as we head into 2023, we would expect that environment to largely normalize.

Et cetera, our analytics and customer engagement platform as we rollout our Google running grow my business solutions. This year, obviously those will be a nice tailwind to growth overall for the year. So again overall the business will.

Produce results above the long term sort of expectations, we have for the business largely benefiting by continued recovery from the pandemic in 2022, but to the earlier question as we head into 2023, we would expect that environment to largely normalize.

Speaker 6: and you'll continue to see sort of double digit growth for the merchant business setting into 2023.

And you'll continue to see sort of double digit growth for the merchant business heading into 2023.

Speaker 4: Right, and then just to follow up on issue where I know you mentioned the man I know you mentioned the managed services piece was was down your year in the quarter. Can you just elaborate on I know you mentioned there was a tough comp and then you talked about it and emphasizing the call center part of that. Just hoping you could elaborate on that for a second and tell us what you're expecting from the managed services piece in 2022 relative to the rest of the kind of out to that mid single range. Thanks guys.

Right and then just a quick follow up on issue or I know you manage the Matt I know you mentioned the managed services piece was down year over year in the quarter can you just elaborate on.

I know you mentioned there was a tough comp and then you talked about it and deemphasizing the call center part of that just hoping you could elaborate on that for a second.

Tell us what youre expecting from the managed services piece in 2022 relative to the rest were to kind of add to that mid single range. Thanks guys.

Speaker 2: Yes, so you're right. You know, in the fourth quarter, we kind of had three dynamics of play, and certainly I've talked about all three, two, and the prepared march. One was managed services, just commented as we continue to pivot this business to the cloud and more tech enablement, the lower margin.

Yes, so youre right.

In the fourth quarter, we kind of had three dynamics at play and certainly I've talked about all three to it in the prepared remarks, one was managed services as Jeff commented as we continue to pivot this business to the cloud and more tech enablement, but lower margin kind of human interactive.

<unk> managed services business is not one that we're focused on we're very kind of margin that tenant in this business and that is a lower margin business that continues to have more compressed margins. So it's one that we're deemphasizing were certainly continuing to stay in the business and offering it but we're going to do it when we get a good margin for the business. So that is kind of one kind of <unk>.

Speaker 2: you can stay in the business and offering it, but we're going to do it when we get a good margin for the business. So that is kind of one piece of the headwind in the quarter. We did have some things in fourth quarter of last year. One customer particularly had to meet some minimums and a few other things that kind of played through that just didn't recur in the fourth quarter of this year. So that's kind of the tougher companies I was talking about. And then as I commented on, we saw relative to our expectations, kind of that deceleration on the commercial card side that had that like we would have anticipated, but for the impact of Omicron, that's back where we see that business solidly in that mid single digit range. I would say also that for fourth quarter, the volume based revenue, our account on file transaction revenue for that fourth quarter solidly in that mid single digit range. So as we go forward, yes, it's going to be continued kind of compression on the next.

So the headwind in the quarter, we did have some things in the fourth quarter of last year, one customer, particularly you had to meet some minimums and a few other things that kind of play through but just didn't recur.

In the fourth quarter of this year. So that's kind of the tougher comp piece I was talking about and then as I commented on we saw relative to our expectations kind of that deceleration on the commercial card side that had that continued trajectory like we would have anticipated, but for the impact of <unk> <unk> back where we see that busy.

This solidly in that in that mid single digit range I would say also that for fourth quarter.

<unk> based revenue our account on file and transaction revenue for that fourth quarter was solidly in that mid single digit range. So as we go forward. Yes. It is going to be continued kind of compression on the managed services side for next year. So we'll see that kind of play out once again in the first quarter. We have some some more comp there, we'll see a progressive improvement.

On the commercial card side, and we're seeing solid or certainly projecting both with what Jeff talked about on the conversion pipeline as well as what we saw from transactions in our forecast so far and what we're seeing in transactions solidly mid single digit growth with that account on file revenue and transaction revenue really throughout the year, so but for kind of.

Speaker 2: solidly mid-single digit growth with that account on file revenue and transaction revenue really throughout the year. So, but for kind of the few things I mentioned, it's a pretty solid kind of mid-single digit growth year for us next year or this year in line with that expectation. And I think that kind of provides the picture you're looking for.

The few things I mentioned.

A pretty solid kind of mid single digit growth year for us next year or this year in line with that expectation and I think that kind of provides the picture youre looking for.

Very helpful. Thank you.

Speaker 4: And your final question comes from the line of Vasu Gowil from KBW. Your line is open.

And your final question comes from the line of Vasily <unk> from K B W. Your line is open.

Hi, Thanks for squeezing me in here I, just wanted to drill a little bit more into the BBB efforts within Oaktree I know one of the exciting part is when you first announced.

Speaker 9: Hi, thanks for squeezing me in here. I just wanted to do a little bit more into the B2B efforts with Minoal3. I know one of the exciting parts when you first announced your entry into B2B is that you have this large space of existing margins that you could cross that into. Just looking for any color on what the appetite has been and how you're going to market with your existing margins. Yeah, it's great question. This is Cameron. I'll start. And I'll ask Jeff and Paul to jump in as well. I would say we've seen good traction already in our ability to cross that Minoal3 into our existing base of not only merging customers but partners. In particular in the GPI channel, we have a significant number.

Speaker 9: Hi, thanks for squeezing me in here. I just wanted to do a little bit more into the B2B efforts with Minoal Free. I know one of the exciting parts when you first announced, you're entering the B2B with that you have this large space of existing merchants that you could cross down and do, just looking for any color on what the appetite has been and how you're going to market with your existing merchant.

And seem to be happy with that you have this large base of existing margins that you could cross sell into just looking for any color on what the appetite has been and how youre going to market with your existing margins.

Speaker 6: Yeah, it's great question. This is Cameron. I'll start. And I'll ask Jeff and Paul to jump in as well. I would say we've seen good traction already in our ability to cross-delimit all three into our existing base of not only merging customers, but part.

Yes, it's a.

Great question. This is Cameron I'll start and I'll ask Jeff and Paul to jump in as well I would say we've seen good traction already in our ability to cross sell mineral tree into our existing base of not only merchant customers, but partners in particular in the <unk>. We have a significant number of roughly 6000 software partners for whom the mineral III solution and is the ideal solution given.

Speaker 6: In particular in the GPI channel, we have a significant number of roughly 6000 software partners.

Speaker 6: for whom the mineral tree solution is the ideal solution given the size of their business to manage kind of their AP automation and to help with the overall B2B payment requirements as software company. So as we think about the long-term proposition, we think mineral tree as a standalone sort of point solution is fantastic.

The size of their business to manage kind of their AP automation and to help with our overall <unk> payment requirement software company. So as we think about the long term proposition, we think mineral tree as a standalone sort of point solution is fantastic and we've seen good traction in our ability to cross sell it into our existing base of business.

Speaker 6: We think good traction and our ability to cross-sell it into our existing base of business.

But more importantly, it becomes a core underlying foundational component of what we think will be an end to end <unk> solution that <unk> companies both.

Speaker 6: But more importantly, it becomes a core underlying foundational component of what we think will be an end-to-end B-to-B solution. That in companies both...

Speaker 6: IAP automation, ARS automation, disbursements and acceptance capabilities.

Automation.

Automation disbursements and acceptance capabilities in it.

Speaker 6: in the end end platform that seemed most fully integrated and enabled to be deployed to our merchant customers through our digital ecosystem.

And platform that seamless fully integrated enabled to be deployed to our merchant customers through our digital ecosystem. So as we think about the long term <unk> strategy I think it's really that it's building that end to end capabilities with money in money out capabilities with API automation automation with integrations into general ledger environments.

Speaker 6: So as we think about the long-term B2B strategy, I think it's really that. It's building that end-in capabilities with money in, money out capabilities, with AP automation, AR automation, with integrations into general ledger environments, which is really what our customers are with.

Which is really what our customers are looking for so mineral III on its own has been a great tailwind as we look to cross sell new product and capability into the merchant base, but as we continue to build out the <unk> strategy long term it becomes more important as a foundational element to build out the end to end capability.

Speaker 6: So Mineral 3 on its own has been a great tailwind as we look to cross sell new product and capability into the merchant base But as we continue to build out the B2B strategy long term, it becomes more important at that foundation element to build out the end-to-end capability

Speaker 3: If I could just check out that with Cameron said on the issue or side that we have similar like 1300 bank partners in issuer, I think military had like 20 to 30 when we did it deal in October . One of the things that we heard from banks was the product of military grace similar to Cameron said is terrific.

It's Jeff I would add to what Cameron said on the issuer side that we have something like 300 Bank partners in issuer I think military you have like 20 to 30 when it when we did the deal in October one of the things that we heard from banks was the product of military very similar to Cameron said is terrific, but financial institutions being where they are always worried about the size of the company and the balance sheet exposure of that kind.

Speaker 3: but you know financial institutions being where they are, always worry about the size of the company and the balance sheet and expel your that kind of thing. Well, there's no concerns about that, you know, with us. So we see great traction.

The thing where there was no concerns about that with us So we see great traction.

Speaker 3: on the issuing side with that by customers globally, not just here in the United States, and middle trees, predominantly at US only, business, although we've given now some overseas stuff with them today. So our ability to expand that in the United States and export it globally, I think is very attractive to us, and it's something that we're super excited about.

On the issuing side with that by customers globally, not just here in the United States and mineral tree is predominantly a U S. Only.

Business, a little bit you've announced some overseas stuff with them today, so our ability to expand that in the United States and exported globally. I think is very attractive to us and it's something that we're super excited about.

Speaker 9: Great things, that's great color. And just a quick follow up. Thanks for giving us all the volume trends. That was very helpful. But if I'm looking at the volume trends relative to Vita Mastercard specifically for North America, it seems that the trends were the improvement a little bit flatter versus what we thought coming out of Vita Mastercard. So any call out there, I'm just assuming it's mixed differences, but any color would be helpful.

Great. Thanks, that's great color and just a quick follow up thanks for giving US all of the volume trends that was very helpful. But if I'm looking at the volume trends relative to visa Mastercard, specifically for North America. It seems that the trend toward the improvement of a bit flatter versus what we saw coming out of even the mastercard. So any color there I am just assuming it's mixed defensive but.

Any color would be helpful.

Speaker 6: Yeah, I think he has a nail in the head. I think it's really just mixed differences. I don't think there's an appreciable difference to be honest with you when you're aggregating that level of data together. I think if you look at it across the globe, I think our trends are very consistent sort of sequentially with what we saw coming out of the network. So, well, there's always going to be noise in the data because we're running a particular mix of business. The networks represent more of the markets or the things that we're benefiting from, that they're not, there's things they're benefiting from, that we're not.

Yes, I think you hit the nail on the head I think it's really just mix differences I don't think there is an appreciable difference to be honest with you when youre aggregating that level of data together I think if you look at it across the globe I think our trends are very consistent sort of sequentially with what we saw coming out of the network. So there's always going to be noise in the data because we're running a particular mix of business.

Networks represent more of the market. So there are things that we're benefiting from that theyre not there are things that are benefiting from that we're not as it relates to the mix of businesses, but I would characterize from our perspective the trends generally in line with what we saw coming out of the network sort of sequentially Q3 to Q4.

Speaker 6: as relates to the mix of businesses, but I would characterize from our perspective the transgenderly in line with what we saw coming out of the network sort of sequentially keep through to keep for.

Great. Thank you.

On behalf of global payments. Thank you for joining us this morning.

Speaker 3: On behalf of Global Payments, thank you for joining us this morning.

Speaker 3: This concludes today's conference call. Thank you for your participation. You may now disconnect. See you next.

This concludes today's conference call. Thank you for your participation you may now disconnect.

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