Q4 2023 Global Payments Inc Earnings Call

Operator: Ladies and gentlemen, thank you for standing by, and welcome to Global Payments' fourth quarter and full year 2023 earnings conference. At this time, all participants are in a listen-only mode.

Ladies and gentlemen, thank you for standing by and welcome to global payments fourth quarter and full year 2023 earnings conference call. At this time all participants are in a listen only mode. Later, we will open the lines for your questions and answers.

Operator: Later, we will open the lines for your questions and answers. If you should require operator assistance during this call, please press star then zero. And as a reminder, today's conference will be recorded. At this time, I would like to turn the conference over to your host, Senior Vice President, Investor Relations, Winnie Smith. Please go ahead.

If you should require operator assistance during this call. Please press Star then zero.

And as a reminder, today's conference will be recorded at this time I would like to turn the conference over to your host Senior Vice President Investor Relations Winnie Smith. Please go ahead.

Winnie Smith: Good morning, and welcome to Global Payments' fourth quarter and full year 2023 conference call. Our earnings release and the slides that accompany this call can be found in the investor relations area of our website at www.globalpayments.com. Before we begin, I'd like to remind you that some of the comments made by management during today's conference call contain forward-looking statements about, among other things, expected operating and financial results. These statements are subject to risks, uncertainties, and other factors, including the impact of economic conditions on our future operations that could cause actual results to differ materially from expectations. Certain risk factors inherent in our business are set forth in filings with the SEC, including our most recent $10K and subsequent filings. We caution you not to place undue reliance on these statements.

Winnie Smith: Good morning, and welcome to global payments fourth quarter, and full year 2023 conference call.

Our earnings release and the slides that accompany this call can be found on the Investor Relations area of our website at Www Dot global payments dotcom.

Winnie Smith: Before we begin I'd like to remind you that some of the comments made by management. During today's conference call contains forward looking statements about among other matters.

Winnie Smith: <unk> operating and financial results.

Winnie Smith: These statements are subject to risks uncertainties and other factors, including the impact of economic conditions on our future operations that could cause actual results to differ materially from expectations.

Winnie Smith: Certain risk factors inherent in our business are set forth in filings with the SEC, including our most recent 10-K and subsequent filings.

Winnie Smith: We caution you not to place undue reliance on these statements.

Winnie Smith: Four looking statements 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. 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 available on the Investor Relations section of our website. Joining me on the call are Cameron Bready, President and CEO, and Josh Whipple, Senior Executive Vice President and CFO. Now, I'll turn the call over to Cameron. Thanks, Winnie, and good morning, everyone.

Winnie Smith: We're looking statements during this call speak only as of the date of this call and we undertake no obligation to update them.

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

Winnie Smith: A full reconciliation of the non-GAAP financial measures discussed in this call to the most comparable GAAP measure in accordance with FCC regulations. Please see our press release furnished as an exhibit to our form 8-K filed this morning, and our supplemental materials available on the Investor Relations section of our website.

Winnie Smith: Joining me on the call.

Winnie Smith: Our Cameron Bready, President and CEO, and Josh Whipple Senior senior Executive Vice President and CFO.

Cameron M. Bready: Now I'll turn the call over to Cameron.

Cameron M. Bready: Thanks, Danny and good morning, everyone.

Cameron M. Bready: We are pleased with our fourth quarter and full year 2023 results, which exceeded our initial expectations outlined last February. I am extremely proud of our teams around the world for their outstanding execution. Together, we accomplished a great deal in 2023. Starting with our financial performance, for the full year, we achieved high single-digit adjusted net revenue growth and increased adjusted earnings per share by 12%. This includes a more than 400 basis point headwind from the divestiture of our net spend consumer business, which we completed early in the second quarter. We also expanded adjusted operating margins by 90 basis points, including the impact of EVO payments, which had a lower margin profile than global payments at the time of the acquisition.

We are pleased with our fourth quarter and full year 2023 results, which exceeded our initial expectations outlined last February.

Cameron M. Bready: I am extremely proud of our teams around the world for their outstanding execution.

Cameron M. Bready: Either we accomplished a great deal in 2023.

Cameron M. Bready: Starting with our financial performance for the full year, we achieved high single digit adjusted net revenue growth and increased adjusted earnings per share 12%.

Cameron M. Bready: This includes a more than 400 basis points headwind from the divestiture of our <unk> consumer business.

Cameron M. Bready: Which we completed early in the second quarter.

Cameron M. Bready: We also expanded adjusted operating margins 90 basis points, including the impact of Evo payments, which had a lower margin profile than global payments at the time of the acquisition.

Cameron M. Bready: Importantly, we delivered this performance consistently throughout the year despite ongoing headwinds, including macroeconomic uncertainty, persistent inflation, FX volatility, and geopolitical unrest, highlighting the durability of our model. Strategically, we also made significant progress during the year, executing on a number of key initiatives. First, we successfully closed the acquisition of EvoPayments in March, which complements our strategy providing further penetration into integrated payments.

Cameron M. Bready: Importantly, we delivered this performance consistently throughout the year, despite ongoing headwinds, including macroeconomic uncertainty persistent inflation FX volatility and geopolitical unrest highlighting the durability of our model.

Cameron M. Bready: Strategically we also made significant progress during the year executing on a number of key initiatives.

Cameron M. Bready: First we successfully closed the acquisition of Evo payments in March, which complements our strategy, providing further penetration into integrated payments enhancing.

Cameron M. Bready: Enhancing our B2B capabilities and expanding our exposure to stronger secular growth markets globally. Our integration has progressed quite well, and we remain on track to deliver on our revised target of $135 million in annual run rate expense synergies within two years. And while revenue synergies generally take longer to materialize, we are more excited today than when we announced the transaction about opportunities we have to cross-sell our products and capabilities into Evo's existing customer base. We are continuing to invest in these opportunities in 2024 and expect them to scale more fully in 2025. In addition, we completed the divestitures of our NetSpend consumer assets and our gaming solutions business in April.

Cameron M. Bready: Enhancing our <unk> capabilities, and expanding our exposure to stronger secular growth markets globally.

Cameron M. Bready: Our integration has progressed quite well and we remain on track to deliver on our revised target of $135 million in annual run.

Cameron M. Bready: Run rate expense synergies within two years.

Cameron M. Bready: And while revenue synergies generally take longer to materialize. We are more excited today than when we announced the transaction about opportunities we have to cross sell our products and capabilities into <unk> existing customer base.

Cameron M. Bready: We are continuing to invest in these opportunities in 2024 and expect them to scale more fully in 2025.

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Cameron M. Bready: Further we completed the divestitures of our <unk> consumer assets and our gaming solutions business in April.

Cameron M. Bready: These three transactions represent important milestones as we seek to advance our strategy and operate a simpler business model centered on our core corporate and financial institution customer base. In our merchant business, that strategy is spearheaded by a software-centric approach, leveraging our strengths across our vertical markets, integrated, and point-of-sale business. And we seek to drive distinction in our offerings by providing omnichannel capabilities and value-added commerce enablement solutions across our market, including those that benefit from stronger payment digitization and secular growth. We continue to see good momentum in our merchant solutions as we execute against these strategies. Starting with our vertical markets businesses, we had a number of notable achievements in 2023 across the portfolio. These include Xenial's new partnerships to be the official commerce technology provider for both the Atlanta Braves and Atlanta Hawks as we look to further expand our market presence in the stadium and event venue vertical. In the United Kingdom, we renewed our relationship with Principality Stadium, home of Welsh rugby and football, and expanded our services with Wembley Stadium in London.

Cameron M. Bready: These three transactions represent important milestones as we seek to advance our strategy and operate a simpler business model centered on our core corporate and financial institution customer base.

Cameron M. Bready: In our merchant business that strategy has spearheaded by a software centric approach leveraging our strengths across our vertical markets integrated and point of sale businesses.

Cameron M. Bready: And we seek to drive distinction in our offerings by providing omnichannel capabilities and value added commerce enablement solutions across our markets, including those that benefit from stronger payment digitization and secular growth trends.

We continue to see good momentum in our merchant solutions as we execute against these strategies.

Cameron M. Bready: Starting with our vertical markets businesses, we had a number of notable achievements in 2023 across the portfolio.

Cameron M. Bready: These include <unk>, new partnerships to be the official commerce technology provider for both the Atlanta Braves and Atlanta Hawks, as we look to further expand our market presence in the stadiums and event venue vertical.

Cameron M. Bready: In the United Kingdom, we renewed our relationship with Principality Stadium home of Welsh rugby and football and expanded our services with Wembley Stadium in London.

Cameron M. Bready: We were also selected by leading Foodservice management company, it's at XO to be its preferred point of sale and kiosk partner and are now the partner of choice for the three largest players in the foodservice management space.

Cameron M. Bready: We were also selected by leading food service management company Sodexo to be its preferred point of sale and kiosk partner and are now the partner of choice for the three largest players in the food service management space. Our Education Solutions business delivered many new marquee customer additions across our K-12 and our university businesses and continues to expand to international markets, with School Solutions launching MySchoolBucks in Australia and TouchNet achieving new wins in Canada, Australia, and the United Kingdom. Interactive Network Business had a record booking year, signing 839 new logos, including its largest ever win in the community vertical with the City of Toronto.

Cameron M. Bready: Our education solutions business delivered many new marquee customer additions across our K through 12, and our University businesses.

Cameron M. Bready: And continue to expand to international markets.

Cameron M. Bready: <unk> solutions launching my school box in Australia.

Cameron M. Bready: In touch net achieving new wins in Canada, Australia, and the United Kingdom.

Cameron M. Bready: Interactive network business had a record bookings year, signing 839, new logos, including its largest ever win in the community vertical with the city of Toronto.

Cameron M. Bready: Moving to partner software solutions, we achieved record bookings in 2023, with new partners increasing 23% from the prior year. This was in part driven by the strong momentum we have seen with our new Progressive Payment Facilitation, or PROPAC, that we launched mid-year. This hybrid option provides many of the benefits of being a payment facilitator while minimizing the heavy burden that comes with it. ProFact is unique to Global Payments, and we are delighted to have signed 16 ProFact partners to date who already have thousands of merchant customers using our payment solution.

Cameron M. Bready: Moving to partnered software solutions, we achieved record bookings in 2023 with new partners, increasing 23% from the prior year.

Cameron M. Bready: This was in part driven by the strong momentum we have seen with our new progressive payment facilitation or <unk> model that we launched mid year.

Cameron M. Bready: This hybrid option provides many of the benefits of being a payment facilitator, while minimizing the heavy burden that comes with it.

Cameron M. Bready: <unk> is unique to global payments and we are delighted to have signed 16 <unk> partners to date, who already have thousands of merchant customers using our payment solutions.

Cameron M. Bready: Some notable new partners in our integrated business include 402 Ventures, a leading provider of auction software in the heavy equipment and machinery vertical, and AutoSoft, which provides a software management platform for auto dealerships. Black Knight, a leading provider of mortgages and loan origination software, and Inovalon, a leading data analytics ISB in the health care world. These trends, including the momentum we are seeing with Profac, underscore our confidence in our ability to maintain consistent growth going forward, as our differentiated capabilities continue to resonate with the ISB market. As for the third leg of our software strategy, our point of sale software business delivered strong growth for the full year, as we continue to see solid demand for our solutions and benefit from the releases of new product enhancements. Notably, our average revenue per unit continues to expand 9% year over year as more merchants are using payments and other add-on capabilities in our evolving POS platform. And, of course, this is prior to the full launch of our complete next-generation restaurant and retail point-of-sale software platforms, which we continue to expect this quarter.

Some notable new partners in our integrated business include 402 ventures, a leading provider of auction software in the heavy equipment and machinery vertical.

Cameron M. Bready: Auto solved which provide the software management platform for auto dealerships.

Cameron M. Bready: Black Knight, a leading provider of mortgages and loan origination software.

Cameron M. Bready: And of note along a leading data analytics ISP in the health care vertical.

Cameron M. Bready: These trends, including the momentum, we're seeing with pro facts underscore our confidence in our ability to maintain consistent growth going forward as our differentiated capabilities continue to resonate with the ISP market.

Cameron M. Bready: As for the third leg of our software strategy, our point of sale software business delivered strong growth for the full year as we continue to see solid demand for our solutions and benefit from the releases of new product enhancements.

Cameron M. Bready: Notably our average revenue per unit continues to expand up 9% year over year as more merchants are using payments and other add on capabilities and our evolving Pos platform.

Cameron M. Bready: And of course this is prior to the full launch of our complete next generation restaurant and retail point of sale software platforms, which we continue to expect this quarter.

Cameron M. Bready: Lastly, our exposure to some of the most attractive secular markets globally remains a core element of our strategy, both in terms of contributing to our overall rates of growth and providing us with the global footprint we need to support complex multinational corporations. We continue to see good trends across our businesses in Spain and Central Europe, each of which delivered high team growth, and key new European markets entered with Evo, including Poland and Greece, also achieved double-digit growth. Further, we've seen favorable secular trends in LATAM, where we meaningfully increased our footprint with eBay. This includes new implementations in Mexico with large customers like D-Local, DHL, and Petro7 as we leverage our partnership with Citibank. Turning to the issue of solutions, where we have longstanding relationships with some of the most complex and sophisticated institutions globally, we are proud to have completed 11 customer conversions in 2023. In total, we added over 50 million accounts to our business and ended the year with record traditional accounts on file of more than 800 million.

Cameron M. Bready: Lastly, our exposure to some of the most attractive secular markets globally remains a core element of our strategy. Both in terms of contributing to our overall rates of growth and providing us the global footprint, we need to support complex multinational corporations.

Cameron M. Bready: We continue to see good trends across our businesses in Spain, and central Europe, each of which delivered high teens growth.

Cameron M. Bready: And key new European markets entered with Evo, including Poland in Greece also achieved double digit growth.

Cameron M. Bready: Further we have seen favorable secular trends in lat am.

Cameron M. Bready: Where we meaningfully increased our footprint with Evo.

This includes new implementations in Mexico with large customers like the local DHL and Petro seven as we leverage our partnership with Citi Banamex.

Cameron M. Bready: Turning to issuer solutions, where we have long standing relationships with some of the most complex and sophisticated institutions globally.

Cameron M. Bready: We are proud to have completed 11 customer conversions in 2023.

Cameron M. Bready: In total we added over 50 million accounts to our business and ended the year with record traditional accounts on file of more than $800 million.

Cameron M. Bready: We continue to have a strong pipeline of new business that extends into 2025, as well as eight letters of intent with institutions worldwide. In 2023, we achieved 13 multi-year renewals and new customer agreements. This includes a new contract with a leading U.S. bank that is a longstanding Global Payments merchant partner, a relationship that provided the foundation for the growth of our partnership to include issuer technology solutions. We also continue to expand into new and faster growing markets, including in LATAM, through our partnership with CAT, the credit card joint venture between Scotiabank and Chile's largest retailer, Cincosuit. The confidence that many of the largest and most sophisticated, complex financial institutions have with us is enhanced by our issuer platform modernization efforts, which position us to provide our clients market-leading cloud native real-time solutions at scale in more markets than we ever have previously.

Cameron M. Bready: We continue to have a strong pipeline of new business that extends into 2025 as well as eight letters of intent with institutions worldwide.

Cameron M. Bready: In 2023, we achieved 13 multiyear renewals and new customer agreements.

Cameron M. Bready: This includes a new contract with a leading U S bank that has a long standing global payments merchant partner of.

Cameron M. Bready: A relationship that provided the foundation for the growth of our partnership to include issuer technology solutions.

Cameron M. Bready: We also continued to expand into new and faster growth markets, including in Latam through our partnership with Cat the credit card joint venture between Scotiabank in Chiles largest retailer <unk> suite.

Cameron M. Bready: The confidence that many of the largest and most sophisticated complex financial institutions have with US is enhanced by our issuer platform modernization efforts, which positions us to provide our clients market, leading cloud native real time solutions at scale in more markets than we ever had previously.

Cameron M. Bready: We've made substantial progress with our modernization, with two clients now in production leveraging products from our cloud solution. Further, we expect to complete the development of our client-facing applications this year and are planning to execute dozens of unique cloud-issuer platform pilots, planning multiple services, products, and geographies as we prepare for the commercial launch of additional cloud-native capabilities. Moving to B2B, we continue to see solid demand for our leading capabilities across our three focus areas, software-driven workflow automation, money-in and money-out funds flow, and employer solutions. We have successfully integrated Evo's PayFabric software into our merchant business, allowing us to go to market in B2B acceptance with a software-led approach.

Cameron M. Bready: We've made substantial progress with our modernization with two clients now when production leveraging products by our cloud solution.

Cameron M. Bready: Further we expect to complete the development of our client facing applications. This year and are planning to execute dozens of unique cloud Azure platform pilots.

Cameron M. Bready: Multiple services products and geographies as we prepared for the commercial launch of additional cloud native capabilities.

Cameron M. Bready: Moving to <unk>, we continue to see solid demand for our leading capabilities across our three focus areas software driven workflow automation money in and money out funds flow and employer solutions.

We have successfully integrated <unk> pay fabric software into our merchant business, allowing us to go to market and BW acceptance with a software led approach.

Cameron M. Bready: Further, our mineral tree business nearly doubled subscription bookings in its core mid-market, positioning the business well into 2024. As one of the largest virtual card issuers in the world, we're benefiting from the accelerated adoption of virtual cards globally, which contributed to strong growth in commercial transactions this year. Additionally, our B2B bookings and merchant solutions increased over 20% in 2023 as more of this spend shifts toward digital channels.

Cameron M. Bready: Further our mineral tree business nearly doubled subscription bookings in its core mid market positioning the business well heading into 2024.

Cameron M. Bready: As one of the largest virtual card issuers in the world. We are benefiting from accelerated adoption of virtual cards globally.

Cameron M. Bready: Which contributed to strong growth in commercial transactions this year.

Cameron M. Bready: Additionally, our BTB bookings in merchant solutions increased over 20% in 2023 as more of this spend shifts towards digital channels.

Cameron M. Bready: Our employer solutions are also seeing favorable trends, including our payroll business delivering mid teens growth for the full year and our pay card <unk> solutions, achieving nearly 2000, new partnerships last year.

Cameron M. Bready: Our employer solutions are also seeing favorable trends, including our payroll business delivering mid-teens growth for the full year and our pay card and EWA solutions achieving nearly 2,000 new partnerships last year. After an eventful and successful 2023, I'm pleased to report that we're carrying this momentum into the early part of 2024. In January, our merchant business announced a new joint venture with Commerzbank in Germany. This new entity, Commerce Global Pay, is expected to launch in the first half of 2024 and will deliver a comprehensive suite of innovative omni-channel payments and software offerings, including our GP point-of-sale software solutions and our GP touch-on mobile technology at scale, providing merchants with the capabilities needed to run and grow their businesses more efficiently in the largest We are delighted to be partnering with Commerce Bank, a premier financial institution with unmatched relationships with small and medium-sized merchants, to significantly enhance distribution in Germany, where there are substantial opportunities to further digitize the payment experience.

Cameron M. Bready: After an eventful and successful 2023 I'm pleased to report that we are carrying this momentum into the early part of 2024.

Cameron M. Bready: In January our merchant business announced a new joint venture with Commerce Bank in Germany.

Cameron M. Bready: This new entity ecommerce Global Bay is expected to launch in the first half of 2024 and will deliver a comprehensive suite of innovative omni channel payments and software offerings, including our GP point of sale software solutions and our GP touch on mobile technology at scale, providing merchants the capabilities needed to run and grow their.

Cameron M. Bready: <unk> more efficiently in the largest economy in Europe.

Cameron M. Bready: We are delighted to be partnering with Commerce bank, a premier financial institution with unmatched relationships with small and medium sized merchants.

Cameron M. Bready: To significantly enhance distribution in Germany.

Cameron M. Bready: There are substantial opportunities to further digitize the payment experience.

Cameron M. Bready: This partnership was achieved with the Global Payments Leadership and Payments Technology and Commerce Solution and extensive JV experience across European markets, while our acquisition of Evo helped provide a foundation with its existing physical presence and merchant portfolio in Germany. In North America, we remain on track to launch our next generation Heartland Restaurant and Heartland Retail offerings this quarter, which will provide best-in-class omni-channel experiences and further catalyze our success in point-of-sale software. Early feedback on our next-generation restaurant point of sale solution has been overwhelmingly positive, including our new, updated, and enhanced features like online ordering, loyalty, mobile point-of-sale, and And our new retail PLS solution will allow us to extend into additional retail verticals, which is the cornerstone of our broader strategy of sub-vertical expansion, allowing us to increase wallet share while also meeting the demands of a modern retail environment that brings supply chain, e-commerce, customer engagement, and complex ERP functionality into a simplified and single ecosystem.

Cameron M. Bready: This partnership was achieved because of global payments leadership in payments technology, and commerce solutions and extensive JV experienced across European markets.

Cameron M. Bready: While our acquisition of Evo helped provide a foundation with his existing physical presence and merchant portfolio in Germany.

Cameron M. Bready: In North America, we remain on track to launch our next generation Heartland restaurant at Heartland retail offerings this quarter with.

Cameron M. Bready: <unk> will provide best in class Omnichannel experiences and further catalyze our success in point of sale software.

Cameron M. Bready: Early feedback on our next generation restaurant point of sale solution has been overwhelmingly positive, including our new updated and enhanced features like online ordering loyalty mobile point of sale and a simplified user interface on commercial grade hardware.

Cameron M. Bready: And our new retail Pos solution will allow us to extend into additional retail verticals, which is the cornerstone of our broader strategy of sub vertical expansion.

Cameron M. Bready: Allowing us to increase wallet share while also meeting the demands of a modern retail environment that bring supply chain e-commerce customer engagement and complex ERP functionality into a simplified and single ecosystem.

Cameron M. Bready: This expansion not only aligns with our growth objectives but also ensures we stay at the forefront of retail technology, providing our clients with the tools they need to thrive in a rapidly evolving market. Our POS momentum also continues in the enterprise QSR space. We were delighted to be selected to power COSMICS, a new concept from the McDonald's universe. Email cloud point of sale drive-thru digital menu boards envision speed of service solution are enabling an innovative new drive-thru traffic management system that supports COSMIC's multiple drive-thru lanes and pick-up windows, optimizing restaurant operations in a dynamic and flexible way. Cosmix is also using Xenial's back office suite to provide real-time reporting and management of inventory, sales, labor, projections, and scheduling.

Cameron M. Bready: This expansion not only aligned with our growth objectives, but also ensures we stay at the forefront of retail technology, providing our clients with the tools they need to thrive in a rapidly evolving market.

Cameron M. Bready: Our Pos momentum also continues in the enterprise USR space.

Cameron M. Bready: We were delighted to be selected to power cosmetics, a new concept from the Mcdonald's universe.

Cameron M. Bready: Because email cloud point of sale drive through digital menu boards envision speed of service solutions are enabling an innovative new drive thru traffic management system that supports cosmic multiple drive through lanes and pickup windows opt.

Cameron M. Bready: Optimizing restaurant operations in a dynamic and flexible way.

<unk> is also using <unk> back office suite to provide real time reporting and management of inventory sales labor projections and scheduling.

Cameron M. Bready: We're excited to have already launched with Cosmix at the initial Bowlingbrook, Illinois restaurant concept in December and look forward to helping future-proof all new pilot locations with our cloud-based technology ecosystem as they open in additional markets in 2024. Our issuer business has also started the year well, having executed multi-year renewal agreements with two of our flagship clients, Capital One and Navy Federal Credit Union, both long-standing relationships spanning decades.

Cameron M. Bready: We're excited to have already launched with cosmetics at the initial Bolingbrook, Illinois restaurant concept in December.

Cameron M. Bready: And look forward to helping future prove all new pilot locations with our cloud based technology ecosystem as they opened in additional markets in 2024.

Cameron M. Bready: Our issuer business has also started the year well, having executed multi year renewal agreements with two of our flagship clients capital one and Navy Federal credit Union.

Cameron M. Bready: Both longstanding relationships spanning decades.

Cameron M. Bready: Our renewal with Capital One includes both its consumer and commercial credit portfolios in North America. And for Navy Federal, a not-for-profit credit union serving the military, veterans, and their families. Our relationship supports its consumer portfolio, as well as an array of value-added services, including loyalty, fraud, and digital engagement solutions. The extension of these partnerships further validates our strategy of aligning our business with a clear market. Looking ahead, we remain encouraged by the resiliency we have seen in consumer spending and expect fairly similar trends in 2024. However, we recognize there remain a number of risks to the global economy and consumer and are appropriately reflecting this in our expectations. Our outlook does incorporate a slightly more tempered expectation for the macro environment relative to what we experienced in 2023, but it is roughly aligned with what we saw exiting the year. January trends were fairly consistent with what you heard from the networks and broadly in line with our expectations. We are confident we have built a better and more durable business model, which positions us well to manage through any environment if the current backdrop changes. With that, I'll turn the call over to Josh.

Cameron M. Bready: Our renewal with capital one includes both its consumer and commercial credit portfolios in North America.

Cameron M. Bready: And for Navy Federal a not for profit credit Union, serving the military veterans and their families. Our relationship supports its consumer portfolio as well as an array of value added services, including loyalty fraud and digital engagement solutions.

The extension of these partnerships further validates our strategy of aligning our business with clear market winners.

Cameron M. Bready: Looking ahead, we remain encouraged by the resiliency, we had seen in consumer spending and expect fairly similar trends in 2024.

Cameron M. Bready: However, we recognize there remain a number of risks to the global economy, and consumer and are appropriately reflecting this in our expectations.

Cameron M. Bready: Our outlook does incorporate a slightly more tempered expectations for the macro environment relative to what we experienced in 2023, but is roughly aligned with what we saw exiting the year.

Cameron M. Bready: January trends were fairly consistent with what you've heard from the networks and broadly in line with our expectations.

Cameron M. Bready: We are confident we have build a better and more durable business model, which positions us well to manage through any environment. If the current backdrop changes.

Cameron M. Bready: With that I'll turn the call over to Josh.

Josh Whipple: Thanks, Cameron. We're pleased with our financial performance in the fourth quarter and for the full year, which reflects continued outstanding execution and the resiliency of our business model. I'm particularly proud that we delivered these results while simultaneously completing multiple transactions that would serve to accelerate our strategy. Starting with the full year of 2023, we delivered adjusted net revenue of $8.67 billion, an increase of 7% from the prior year. Excluding the impact of dispositions, adjusted net revenue increased by 15% compared to 2022.

Josh Whipple: Thanks, Kamran, we're pleased with our financial performance in the fourth quarter and for the full year, which reflects continued outstanding execution and the resiliency of our business model.

Josh Whipple: We are proud that we delivered these results while simultaneously completing multiple transactions, which serve to accelerate our strategy.

Josh Whipple: Starting with the full year of 2023, we delivered adjusted net revenue of $8 $6 7 billion, an increase of 7% from the prior year.

Josh Whipple: Excluding the impact of dispositions adjusted net revenue increased 15% compared to 2022 <unk>.

Josh Whipple: Adjusted operating margin for the full year improved 90 basis points to 44.6%. The net result was adjusted earnings per share of $10.42, an increase of 12% compared to the full year 2022, which equates to over 16% growth, excluding the impact of disposition. For the fourth quarter, we delivered adjusted net revenue of $2.19 billion, an increase of 8% from the same period in the prior year. Adjusted operating margin for the quarter increased 30 basis points to 44.8%.

Adjusted operating margin for the full year improved 90 basis points to 44, 6% and net result was adjusted earnings per share of $10 42.

Josh Whipple: An increase of 12% compared to the full year, 2022, which equates to over 16% growth excluding the impact of dispositions.

Josh Whipple: For the fourth quarter, we delivered adjusted net revenue of $2, one 9 billion and.

Josh Whipple: An increase of 8%.

Josh Whipple: From the same period in the prior year.

Josh Whipple: Adjusted operating margin for the quarter increased 30 basis points to 44, 8%.

Josh Whipple: This equates to 100 basis points of margin expansion, excluding EVO payments and disposition. And that result was adjusted earnings per share of $2.65, an increase of 10% compared to the same period in 2023. Taking a closer look at performance by segment, Merchant Solutions achieved adjusted net revenue of $1.67 billion for the fourth quarter, reflecting growth of 19%, or approximately 8%, excluding the impact of EVO and disposition.

Josh Whipple: This equates to a 100 basis points of margin expansion, excluding evo payments and dispositions.

Josh Whipple: The net result was adjusted earnings per share of $2 65.

Josh Whipple: An increase of 10% compared to the same period in 2023.

Josh Whipple: Taking a closer look at performance by segment merchant solutions achieved adjusted net revenue of $1 67 billion.

Josh Whipple: For the fourth quarter, reflecting growth of 19% or approximately 8%, excluding the impact of Evo and dispositions.

Josh Whipple: Our performance was led by our software-centric businesses, which again delivered double-digit growth in the quarter. Specifically, we saw strength in Zego, School Solutions, and Advanced MD, which delivered strong double-digit growth for the fourth quarter. And our point-of-sale businesses again grew roughly 20%. Focusing on faster growing geographies, we achieved double-digit growth in Spain and Central Europe, as well as in Poland and Greece. Our LATAM business was another bright spot for the quarter as we benefited from the strong secular payments trends in Mexico and Chile. This performance was partially offset by ongoing weakness in the macro environment in the UK and Canada.

Josh Whipple: Our performance was led by our software centric businesses, which again delivered double digit growth in the quarter, specifically, we saw strength in Ziegel School solutions, and advanced MD, which delivered strong double digit growth for the fourth quarter and our point of sale businesses again grew roughly 20%.

Josh Whipple: Focusing on faster growth geographies, we achieved double digit growth in Spain, and central Europe, as well as in Poland in Greece.

Josh Whipple: Our Latam businesses was another bright spot for the quarter as we benefit from the strong secular opinions trends in Mexico and Chile.

Josh Whipple: This performance was partially offset by ongoing weakness in the macro environment in the UK and Canada.

Josh Whipple: We delivered an adjusted operating margin of 47.7% in the merchant segment, a decline of 60 basis points due to the acquisition of Evo. However, excluding EVO and dispositions, operating margins improved 40 basis points year on year. For the full year, we realized approximately 25% of our targeted expense synergies from Evo. And, as Cameron mentioned, we expect to deliver on our raised expectation of $135 million in annual run rate expense synergies within two years. Our issuer solutions business produced adjusted net revenue of $531 million, reflecting growth of 6% or 5% constant currency growth. The core issuer business also grew mid-single digits this quarter, driven by ongoing strength and volume-based revenue. This was partially offset by slower growth in managed and output services, as we continue to focus our issuer business on more technology-enabled products. We added approximately 13 million traditional accounts on file sequentially.

Josh Whipple: We delivered an adjusted operating margin of 47, 7% in the merchant segment, a decline of 60 basis points due to the acquisition of Evo and <unk>.

Josh Whipple: Excluding evo and dispositions opt.

Josh Whipple: Operating margins improved 40 basis points year on year.

Josh Whipple: For the full year, we realized approximately 25% of our targeted expense synergies from Evo and as Cameron mentioned, we expect to deliver on our rate expectation of $135 million in annual run rate expense synergies within two years.

Josh Whipple: Our issuer solutions business produced adjusted net revenue of $531 million, reflecting growth of 6% or 5% constant currency growth. The core issuer business also grew mid single digits. This quarter driven by ongoing strength in volume based revenue.

Josh Whipple: This was partially offset by slower growth in managed and output services as we continue to focus our issuer business on more technology enablement.

Josh Whipple: We added approximately 13 million traditional accounts on file sequentially. This equates to an increase of more than $50 million accounts year over year as we continue to benefit from the ongoing execution of our conversion pipeline. In addition to healthy consumer and commercial account growth with our large existing customers.

Josh Whipple: This equates to an increase of more than 50 million accounts year over year as we continue to benefit from the ongoing execution of our conversion pipeline in addition to healthy consumer and commercial account growth with our large existing FI customers. Issuer transactions grew high single digits compared to the fourth quarter of 2022, led by commercial card transactions, which increased low double digits, highlighting ongoing strength in cross-border corporate travel. Focusing in on our issuer B2B portfolio, MineralTree delivered high-key growth and achieved record bookings this quarter in its targeted mid-market segment, while PayCard saw improving trends as the business faced more difficult employment comparisons from the last year.

Josh Whipple: Yeah sure transactions grew high single digits compared to the fourth quarter of 2022 led by commercial card transactions, which increased low double digits, highlighting ongoing strength in cross border corporate travel.

Josh Whipple: Focusing in on our <unk> portfolio mineral tree delivered high teens growth and achieved record bookings this quarter and its targeted mid market segment, while pay card saw improving trends as the business lapped a more difficult employment comparisons from last year.

Josh Whipple: Finally, Issuer Solutions delivered an adjusted operating margin of $47.3 billion. As expected, this was relatively consistent with our third quarter performance but represented a decline compared to the prior year due to a difficult comparison resulting from vendor benefits reflected in that period. For the full year, our issuer margins expanded 100 basis points, which exceeded our initial guidance for 60 basis points of margin improvement compared to 2022. From a cash flow standpoint, we produced strong adjusted free cash flow for the quarter of $784 million and $2.5 billion for the year. This represents an approximately 100% conversion rate of adjusted net income to adjusted free cash flow for the full year, consistent with our expectations, excluding the impact of the requirement to capitalize research and development costs for income tax reporting purposes. Capital investment was approximately $157 million in the fourth quarter and roughly $660 million for the full year.

Josh Whipple: Finally, issuer solutions delivered an adjusted operating margin of 47, 3%.

As expected this was relatively consistent with our third quarter performance, but represented a decline compared to the prior year due to a difficult comparison, resulting from vendor benefits reflected in that period.

For the full year, our issuer margins expanded 100 basis points, which exceeded our initial guidance for 60 basis points of margin improvement compared to 2022.

Josh Whipple: From a cash flow standpoint, we produced strong adjusted free cash flow for the quarter of $784 million and $2 5 billion for the year.

Josh Whipple: This represents an approximately 100% conversion rate of adjusted net income to adjusted free cash flow for the full year consistent with our expectations, excluding the impact of the requirement to capitalized research and development costs for income tax reporting purposes.

Josh Whipple: Capital investment was approximately $157 million in the fourth quarter and roughly $660 million for the full year.

Josh Whipple: Since closing EVO in March, we have reduced outstanding debt by more than $1.4 billion, and our leverage position was 3.4 times at the end of the fourth quarter. Our balance sheet remains healthy, and we have approximately $3.5 billion of available liquidity. Furthermore, our total indebtedness is approximately 91% fixed, with a weighted average cost of debt of 3.78%.

Josh Whipple: Since closing Evo in March we have reduced outstanding debt by more than $1 4 billion and.

Josh Whipple: And our leverage position was three four times at the end of the fourth quarter.

Josh Whipple: Our balance sheet remains healthy and we have approximately $3 5 billion of available liquidity.

Josh Whipple: Further our total indebtedness is approximately 91% fixed with a weighted average cost of debt of $3 seven 8%.

Josh Whipple: While debt repayment was our top priority for capital allocation in 2023, we are pleased to have also repurchased 4 million shares for roughly $410 million prior to closing EVO. Turning to the outlook, we are pleased with how our business is positioned as we enter 2024. We currently expect reported adjusted net revenue to range from $9.17 billion to $9.30 billion, reflecting growth of 6-7% over 2023, or approximately 7-plus percent, excluding EVO and disposition. We're forecasting annual adjusted operating margin to expand up to 50 basis points for 2024, driven by benefits to our business mix from our ongoing shift toward technology enablement, partially offset by the lower margin profile of Evo prior to full synergy realization. To provide color at the segment level, we expect our merchant business to report adjusted net revenue growth of nine plus percent for the full year. This includes growth in the seven to eight percent range, excluding the impact of the acquisition of Evo and the disposition of Gaming Solutions. We will fully annualize these transactions by the end of the first quarter of 2024.

Josh Whipple: While debt repayment was our top priority for capital allocation. In 2023. We are pleased to have also repurchased 4 million shares for roughly $410 million prior to.

Josh Whipple: Rosing Evo.

Josh Whipple: Turning to the outlook, we are pleased with how our business is positioned as we enter 2024.

Josh Whipple: Currently expect reported adjusted net revenue to range from $91 7 billion.

Josh Whipple: To 930 billion.

Josh Whipple: Reflecting growth of 6% to 7% over 2023 or approximately 7%, excluding evo and dispositions.

Josh Whipple: Were forecasting annual adjusted operating margin to expand up to 50 basis points for 2024, driven by benefits to our business mix from our ongoing shift towards technology enablement, partially offset by the lower margin profile of Evo prior to full synergy realization.

Josh Whipple: To provide color at the segment level, we expect our merchant business to report adjusted net revenue growth of 9% for the full year.

Josh Whipple: This includes growth in the 7% to 8% range, excluding the impact of the acquisition of Evo and the disposition of gaming solutions.

Will fully annualize these transactions by the end of the first quarter of 2024.

Josh Whipple: We expect up to 30 basis points of adjusted operating margin expansion for the merchant business in 2024, with a slower expansion in the first half relative to the second half as EVO synergy realization ramps up as the year progresses. Moving to issuer solutions, we're anticipating adjusted net revenue growth in the 5 to 6% range for the full year compared to 2023, as we benefit from our strong conversion pipeline and continued account growth with our large existing FI partners. We expect Koreshware to grow in the mid-single-digit range and for Mineraltree and NetSpend's B2B businesses to grow at a low-double-digit rate. We anticipate adjusted operating margin for the issuer business to expand by up to 50 basis points as we continue to drive efficiencies in the business, which will be offset somewhat by faster growth in our lower margin B2B business.

Josh Whipple: We expect up to 30 basis points of adjusted operating margin expansion for the merchant business in 2024 with a slower expansion in the first half relative to the second half as Evo synergy realization ramps as the year progresses.

Josh Whipple: Moving to issuer solutions, we are anticipating adjusted net revenue growth in the 5% to 6% range for the full year compared to 2023 as we benefit from our strong conversion pipeline and continued account growth with our large existing Fi partners.

We expect core issuer to grow in the mid single digit range and for mineral tree and <unk> businesses to grow low double digits.

We anticipate adjusted operating margin for the issuer business to expand by up to 50 basis points as we continue to drive efficiencies in the business, which will be offset somewhat by faster growth in our lower margin <unk> businesses.

Josh Whipple: In terms of quarterly phasing, as I mentioned, we will anniversary the acquisition of Evo and the disposition of gaming by the end of the first quarter. We will also anniversary the impact of the divestiture of Netspend's consumer assets at the end of April. As a result, we will continue to have some impacts from these transactions in the first half of the year. Moving to a couple non-operating items, we currently expect net interest expense to be slightly above $500 million this year and for our adjusted effective tax rate to be approximately 19%.

Josh Whipple: In terms of quarterly phasing.

Josh Whipple: As I mentioned, we will anniversary the acquisition of Evo and the disposition of gaming by the end of the first quarter. We will also anniversary the impact of the divestiture of <unk> consumer assets at the end of April.

Josh Whipple: As a result, we will continue to have some impacts from these transactions in the first half of the year.

Josh Whipple: Moving to a couple of non operating items.

Josh Whipple: We currently expect net interest expense to be slightly above $500 million this year and for our adjusted effective tax rate to be approximately 19%.

Josh Whipple: We also are planning for our capital expenditures to be around $670 million in 2024, which remains roughly 7% of revenue. We anticipate adjusted free cash flow to again be in a comparable range of 100%, excluding the roughly 5-point impact from the timing change to recognize the research and development tax credit. Regarding capital allocation... We plan to return to a more balanced capital allocation approach in 2024. And I'm delighted that our Board of Directors has approved an increase in our share repurchase authorization to $2 billion, as share buyback remains one of our priorities. We also plan to further reduce our indebtedness until we return to roughly three times levered on a net debt basis during. Putting it all together, we expect adjusted earnings per share for the full year to be in the range of $11.54, to $11.70, reflecting growth of 11% to 12% over 2023. Excluding dispositions, adjusted earnings per share growth is expected to be 14-plus percent for 2024.

Josh Whipple: We also are planning for our capital expenditures to be around $670 million in 2024, which remains roughly 7% of revenue.

Josh Whipple: We anticipate adjusted free cash flow to again be in a comparable range of a 100% excluding the roughly five point impact from the timing change to recognizing research and development tax credits.

Josh Whipple: Regarding capital allocation we.

Josh Whipple: We plan to return to a more balanced capital allocation approach in 2024, and I'm delighted that our board of directors has approved an increase in our share repurchase authorization to $2 billion as share buyback remains one of our priorities.

Josh Whipple: We also plan to further reduce our indebtedness until we return to roughly three times levered on a net debt basis during the year.

Josh Whipple: Putting it all together, we expect adjusted earnings per share for the full year to be in the range of $11 54.

Josh Whipple: $211 70.

Reflecting growth of 11% to 12% over 2023, excluding dispositions adjusted earnings per share growth is expected to be 14% for 2024.

Cameron M. Bready: Our outlook for the year reflects the ongoing positive momentum in our business. While accommodating for a more tempered economic environment given the continued uncertainty, we remain confident in the resiliency of our model and our ability to adapt to potential shifts in the economic environment. Cameron

Josh Whipple: Our outlook for the year reflects the ongoing positive momentum in our business while.

While accommodating for a more tempered economic environment, given the continued uncertainty.

Remain confident in the resiliency of our model and our ability to adapt to potential shifts in the economic environment.

Josh Whipple: Cameron.

Cameron M. Bready: Thanks, Josh. As I said when I was named CEO in May, it's an exciting time for global payments, and I could not be more proud of all we accomplished last year. As we begin 2024, I remain enthusiastic about the opportunities in front of me. We have a compelling technology-enabled strategy, a world-class team, great partners and clients, and a global presence with diverse distribution capability. This year, I remain highly focused on the priorities for our business and customers I outlined at the time I stepped into this role.

Cameron M. Bready: Thanks, Josh.

Cameron M. Bready: As I said when I was named CEO in May and has a good timing time for global payments and I could not be more proud of all we accomplished last year as we begin 2024 I remain enthusiastic about the opportunities in front of us.

Cameron M. Bready: We have a compelling technology enabled strategy a world class team, great partners and clients and a global presence with diverse distribution capabilities.

Cameron M. Bready: This year I remain highly focused on the priorities for our business and customers I outlined at the time I stepped into this role first we will continue to execute against our strategies, which positions us well for growth and success across our markets.

Cameron M. Bready: First, we will continue to execute against our strategies, which position us well for growth and success across our market. We will, however, sharpen our focus on the most attractive opportunities we see in these areas, while seeking to further simplify our business and amplify the impact of our investment. Specifically, we are focusing on the most impactful of these initiatives and where we can drive further differentiation in our business, including with our software-centric channels across our own partnered NPLS solutions. Additionally, we will continue to harmonize areas of the business that are less differentiated with an eye towards further improving scale and enhancing margin characteristics. Further, in markets and businesses where we are sub-scale, with limited potential to build scale, we may choose to exit certain lines of business and activities in order to better focus our investments, resources, and management intent on opportunities with better long-term growth prospects that can more meaningfully impact our business.

Cameron M. Bready: We will however, sharpen our focus on the most attractive opportunities we see in these areas while seeking to further simplify our business and amplify the impact of our investments.

Cameron M. Bready: Specifically, we are focusing on the most impactful of these initiatives and where we can drive further differentiation in our business, including with our software centric channels across our owned and partnered and Pos solutions.

Cameron M. Bready: Additionally, we will continue to harmonize areas of the business that are less differentiated with an eye towards further improving scale and enhancing margin characteristics.

Cameron M. Bready: Further in markets and businesses, where we are subscale with limited potential to build scale, we may choose to exit certain lines of business and activities in order to better focus our investments resources and management attention on opportunity with better long term growth prospects that can more meaningfully impact our business.

Cameron M. Bready: Second, I'm focused on making it as easy as possible to do business with Global Payments while providing more solutions that deepen our relationships with our customers. We will continue to prioritize meeting our clients and customers how and where they want to be met with innovative and distinctive capabilities that integrate seamlessly. This includes our issuer modernization program and cloud investments, which will provide our clients with greater enablement capabilities and allow them to consume the services they need with greater speed to market and flexibility, while providing best-in-class experiences for their customers. Third, we will maintain our relentless focus on execution, which has been one of the hallmarks of Global Payments and a key component of our ability to produce consistent results through market cycles. We are, however, undertaking an initiative to further simplify our technology and operating environments across the globe to become more efficient and effective, placing greater focus on aligning with business outcomes.

Cameron M. Bready: Second I am focused on making it as easy as possible to do business with global payments, while providing more solutions that deepen our relationships with our customers.

Cameron M. Bready: We will continue to prioritize meeting our clients and customers, how and where they want to be met with innovative and distinctive capabilities that integrate seamlessly.

This includes our issuer modernization program in cloud investments, which will provide our clients with greater enablement capabilities.

Cameron M. Bready: All of them to consume the services, they need with greater speed to market and flexibility.

Cameron M. Bready: While providing best in class experiences for their cardholders.

Third we will maintain our relentless focus on execution, which has been one of the hallmarks of global payments and a key component of our ability to produce consistent results through market cycles.

Cameron M. Bready: We are however, undertaking initiatives to further simplify our technology and operating environments across the globe to become more efficient and effective placing greater focus on aligning with the business outcomes.

Cameron M. Bready: We're committed to redefining success with a continuous improvement mindset and increasing the speed of delivery and nimbleness of our business. Fourth, we remain committed to harnessing the power of generative AI to both innovate new products and solutions that deliver value and improved experiences to our customers and increase the productivity and efficiency of our operating environments and workforce around the world. We've already made meaningful progress in our journey to embed generative AI into our business, to leverage its power and the richness of data in our ecosystem. We have established a Center of Excellence to coordinate our adoption of generative AI technologies and provide a governance framework, implemented foundational tools and models that are being utilized throughout our organization, evaluated numerous use cases, and deployed generative AI technology in a number of areas of our business. For example, in our issuer solutions business, our Foresight Solution, in partnership with Featurespace, provides a market-leading fraud solution that uses generative AI to detect fraud strategies in real time, utilizing our proprietary data. Clients using this solution have realized a nearly 50% reduction in profit.

Cameron M. Bready: We are committed to redefining success with a continuous improvement mindset and increasing the speed of delivery and nimbleness of our business.

Cameron M. Bready: Fourth we remain committed to harnessing the power of generative AI.

Cameron M. Bready: Both innovate new products and solutions that deliver value and improved experiences to our customers and increase the productivity and efficiency of our operating environments and workforce around the globe.

Cameron M. Bready: We have already made meaningful progress in our journey to embed generative AI into our business to leverage its power and the richness of data in our ecosystem.

Cameron M. Bready: We have established a center of excellence to coordinate our adoption of generative AI technologies and provide a governance framework implemented foundational tools and models that are being utilized throughout our organization evaluated numerous use cases and deploy generative AI technology in a number of areas of our business.

Cameron M. Bready: For example, in our issuer solutions business, our fore sight solution in partnership with feature space provides a market leading fraud solution that uses generative AI to detect fraud strategies in real time utilizing our proprietary data.

Cameron M. Bready: Clients using this solution have realized a nearly 50% reduction in problem loans.

Cameron M. Bready: And we are evaluating a number of development opportunities that use generative AI across our issuing and acquiring businesses as a key component of our next-generation applications to further combat fraud and identity risks across our portfolio. Finally, I'm focused on ensuring the global payments culture is second to none. Our culture dictates how we accomplish our goals and achieve results as an organization. Having a world-class culture will further differentiate us in the marketplace while driving value creation and benefits for all of our customers. Winnie?

Cameron M. Bready: And we are evaluating a number of development opportunities that used generative AI across our issuing and acquiring businesses as a key component of our next generation applications to further combat fraud and identity risks across our portfolios.

Cameron M. Bready: Finally, I am focused on ensuring global payments culture is second to none our culture dictates, how we accomplish our goals and achieve results as an organization having.

Cameron M. Bready: Having a world class culture will further differentiate us in the marketplace, while driving value creation benefits for all of our constituents.

Cameron M. Bready: Winning.

Winnie Smith: Thanks, Cameron. Before we begin our question and 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. Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question... You may press star 2 if you'd like to remove your question from the line.

Speaker Change: Thanks Kamran.

Speaker Change: Before we begin our question and answer session I would like to ask everyone to limit your questions to one with one follow up to accommodate everyone in the queue.

Speaker Change: Thank you.

Speaker Change: Operator, we will now go to questions.

Speaker Change: Thank you if you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from Jason Kupferberg with Bank of America. Please proceed. Good morning, guys. I wanted to start with the guidance for 2024 on the top line, looking at the merchant piece specifically. I know we're talking about at least 7% organic.

Speaker Change: Our first question comes from the line of Jason Kupferberg with Bank of America. Please proceed with your question.

Jason Alan Kupferberg: Good morning, guys I wanted to start with the guidance for 2024 on the top line looking at the merchant piece, specifically I know, we're talking about at least 7% organic it did sound in your prepared remarks, like you're maybe being a little bit more conservative versus this time last year. So if you can elaborate.

Jason Alan Kupferberg: It did sound, in your prepared remarks, like you're maybe being a little bit more conservative versus this time last year. So, could you elaborate on that and just give us a sense? I mean, if the consumer doesn't flow at all, are we looking at more like 8%, just trying to calibrate, you know, what some of the underlying assumptions might be? And that part of the guide. Hey Jason, good morning. It's Cameron.

Jason Alan Kupferberg: Right on that and just give us a sense I mean, if the consumer doesn't slow at all or are we looking at more like 8% just trying to calibrate.

Jason Alan Kupferberg: What some of the underlying assumptions might be in that part of the guide.

Jason Alan Kupferberg: Hey, Jason Good morning, its Cameron thanks for the question. It's a good question. So the way I think about it is we exited the year at basically 8% and as we said in our prepared remarks, our expectation for merchant.

Cameron M. Bready: Thanks for the question. It's a good one. So, the way I think about it is we exited the year at basically 8%. And as we said in our prepared remarks, our expectation for Merchant for 2024 is 7% to 8% of a kind of quote-unquote organic, obviously excluding the pickup that we get from EBO in the first quarter before we anniversary the deal. So, to me, that really reflects, as we said, a slightly more tempered view of the macroeconomic environment, given that we do see some risk to the consumer as we head into 2024. That being said, to your point, if the consumer hangs in better than we would expect, I would anticipate us being towards the higher end of that range. Obviously, if the consumer is a little weaker, you know, as our guide sort of contemplates, or at least allows for, I think, at the low end, we might be towards the lower end of that range. So I think the way you're thinking about it is right, and it's consistent with how we're thinking about it.

Jason Alan Kupferberg: For 2024 is 7% to 8% kind of quote unquote organic obviously, excluding the <unk>.

Jason Alan Kupferberg: The pickup that we get from <unk> in the first quarter before we anniversary of the deal. So to me that really reflects as we said a slightly more tempered view of the macroeconomic environment given that we do see some risks to the consumer as we head into 2024.

Jason Alan Kupferberg: That being said to your point that the consumer hangs in better than we would expect I would anticipate us being towards the higher end of that range. Obviously, if the consumer is a little weaker as our guide contemplates or at least allows for I think at the wellhead, we might be towards the lower end of that range. So I think the way youre thinking about.

Jason Alan Kupferberg: It is right and it's consistent with how we're thinking about it we're being a little bit cautious around the consumer heading into the year. Obviously, our continued resilient consumer who doesn't weaken it all will put us towards the higher end and if we do see a little bit of softness we think we'd be towards the lower end of that range, but again, we wanted to be prudent with our expectations around the consumer.

Cameron M. Bready: We're being a little bit cautious around the consumer heading into the year. You know, obviously, a continued resilient consumer who doesn't weaken at all will put us towards the higher end. And if we do see a little bit of softness, we think we'd be towards the lower end of that range. But again, we wanted to be prudent with our expectations around the consumer heading into the year.

Jason Alan Kupferberg: Heading into the year.

Okay.

Jason Alan Kupferberg: Understood.

Jason Alan Kupferberg: And I wanted to just pick up on your comments around simplifying the business, some possible portfolio pruning sounds like it could be on the table, wondering if that might be a 2024 event. And then, on the M&A front, about whether or not large-scale acquisitions could be in the cards. There are obviously some media reports out a little before Christmas on that, which I know you guys denied.

Speaker Change: Wanted to just pick up on your comments around simplifying the business some possible portfolio pruning it sounds like it could be on the table wondering if that might be a 2024 event and then if you can just comment on the M&A front about whether or not large scale acquisitions could be in the cards or are there. Some some media reports.

Speaker Change:

Speaker Change: Although it will be for a Christmas on that which I know you guys denied but just to get a sense of where he versus buybacks is sitting in Europe.

Cameron M. Bready: But just to get a sense of where M&A versus buybacks is sitting on your priority list right now. Thanks. Yeah, happy to.

Speaker Change: Your priority list right now.

Yes, happy to maybe I'll address the latter part of that question first and then I'll circle back to.

Cameron M. Bready: Maybe I'll address the latter part of that question first, and then I'll circle back to the front in a second. I think on the M&A front, as Josh mentioned in his prepared comments, we're kind of back to a business as usual mindset heading into the year as it relates to capital allocation. As I said pretty consistently, whatever we do or consider from an M&A perspective obviously has to fit strategically, it has to fit culturally and financially, and it needs to be attractive as a return matter relative to the alternative uses of our capital. And given that leverage is right around our targeted level right now, and we expect it to be for 2024, the alternative use of capital is buying back our stock.

Speaker Change: I'll circle back to the front in a second I think on the M&A front as Josh mentioned in his prepared comments, we're kind of back to a business as usual mindset heading into the year as it relates to capital allocation.

Speaker Change: As I've said pretty consistently whatever we do we're considered from an M&A perspective, obviously has to fit strategically.

Speaker Change: It has to fit culturally and financially it needs to be attractive as a returns matter relative to the alternative uses of our capital and given that leverage is right around our targeted level right now and we expect it to be for 2020 for the alternative use of capital is buying back our stock. So I remain of the view that anything we do from <unk>.

Cameron M. Bready: So I remain of the view that anything we do from an M&A perspective needs to be competitive from a return standpoint relative to our ability to buy back stock and the returns that we think we can generate from that. And that's true regardless of whether we're thinking about smaller deals that present nice tuck-in or enhanced capability opportunities, or we think of larger deals that obviously provide more opportunity for increased scale and advance the strategy as well. So, as always, from an M&A perspective, we're open-minded. I think we're very deliberate, in terms of how we think about M&A that's going to fit our strategy and the things that we want to pursue. And we'll continue with that mindset as we move forward in time.

Speaker Change: And M&A perspective needs to be competitive from a return standpoint relative to our ability to buy back stock and the returns that we think we can generate from that and that is true regardless of whether we're thinking about smaller deals that present, nice tuck in or enhanced capability opportunities or we think of larger deals that obviously.

Speaker Change: Provide more opportunity for increased scale and advanced our strategy as well so as always from an M&A perspective, we're open minded I think we're very we're very deliberate I think in terms of how we think about M&A, that's going to fit our strategy and the things that we want to pursue.

Speaker Change: And we will continue with that mindset as we move forward in time, but I'll be clear that return expectation for them. It may need to be competitive and that's how we would view everything through through that words.

Cameron M. Bready: But I'll be clear, the return expectation from an M&A needs to be competitive, and that's how we'll view everything through that lens. I think as it relates to your first question around potential portfolio pruning, there is some chance that that'll be in the cards for 2024. Yes, it's not contemplated in our outlook currently today, but it is something that we're continuing to evaluate.

Speaker Change: As it relates to your first question around potential portfolio pruning and there is some chance that that will be in the cards for 2024, yes, it's not contemplated in our outlook currently today, but it is something that we're continuing to evaluate and it's really in the context of making sure that as we think about investing in the business that we're investing in those areas, where we have scale we.

Cameron M. Bready: And it's really in the context of making sure that as we think about investing in the business, that we're investing in those areas where we have scale, we have differentiation, we have prospects to be able to continue to grow the business at attractive rates going forward, and trying to minimize investment, minimize resources, and management attention that's focused on markets that may be subscale or lines of business where we don't have particular differentiation and we don't see greater prospects So that's the way we're thinking about it. Obviously, if we make decisions around that, we'll provide updates as we work through the year, but it is certainly something that we're contemplating, as I noted in my remarks. Thanks. Thank you, Jason.

Speaker Change: Differentiation, we have prospects to be able to continue to grow the business at attractive rates going forward and trying to minimize investment minimize resources and management attention. That's focused on markets that may be subscale or line of business, where we don't have a particular differentiation and we don't see greater prospects to meaningfully impact the biz.

Speaker Change: Moving forward. So that's the way we're thinking about it obviously, if we make decisions around that we will provide updates as we work through the year, but it is certainly something that we're contemplating as I as I noted in my remarks.

Speaker Change: Thanks Kamran.

Kamran: Thanks, guys.

Operator: Thank you. Our next question comes from the line of James Faucette with Morgan Stanley. Please proceed. Great, thank you very much.

Kamran: Thank you. Our next question comes from the line of James Faucette with Morgan Stanley. Please proceed with your question.

James Faucette: Great. Thank you very much I.

James Faucette: I wanted to ask in terms of your, for the current competitive environment, I think Cameron, you highlighted a lot of different things that you're working on in areas of strength, but how would you generally assess the competitive intensity in the market right now, and where do you see opportunities versus challenges, generally? I think it's a good question. I would say, you know, we feel fairly good about how we're positioned strategically across most of the markets that we're in today. You know, certainly here in the US, we feel quite good about, obviously, our integrated business, the capabilities we have there, the differentiation, the distinction we think we can bring to ISV partners, and how that has allowed us to position that business for continued growth and success.

James Faucette: I wanted to ask in terms of your.

James Faucette: Current competitive environment, I think Cameron you highlighted a lot of different things that youre working on in areas of strength, but how would you generally assess the competitive intensity in the market right now and where do you see opportunities versus challenges generally.

Cameron M. Bready: I think it's a good question I would say we feel fairly good about how we're positioned strategically across most of the markets that we're in today.

Cameron M. Bready: Certainly here in the U S. We feel quite good about obviously, our integrated business. The capabilities. We have there the differentiation or distinction. We think we can bring tie as the partners and how that has allowed us to position that business for continued growth and success and certainly we're very excited about the rollout of our next generation of point of sale software solutions I talked about which are.

James Faucette: And certainly, we're very excited about the rollout of our next generation of point-of-sale software solutions I talked about, which are coming, obviously, this quarter, which we think will give us a more competitive position, obviously, in the POS space here in the US market with feature-rich capabilities and, obviously, service that we think is distinctive relative to, again, the competitors in the marketplace. And, obviously, we still see a long runway for growth around POS, whether it's enterprise QSR with what we're doing with Cosmix or, you know, small to medium-sized merchants across restaurant and retail that we're targeting through our Heartland Restaurant and Heartland Retail platforms. So, I think we feel very good about that.

Cameron M. Bready: Coming obviously this quarter, which we think will give us a more competitive positioning obviously in the Pos space here in the U S market with feature rich capabilities, and obviously service that we think is distinctive relative to again the competitors in the marketplace and obviously, we still see a long runway for growth around.

Cameron M. Bready: POS whether it's enterprise <unk> with what we're doing with cosmetics.

Cameron M. Bready: Our small to medium sized merchants across restaurant and retail that we're targeting through our heartland restaurant Heartland and retail platforms. So I think we feel very good about that and then of course across the vertical market software businesses in those verticals, where we do own the entirety of the software stack again, we think we're well positioned in those verticals to continue to grow nicely.

Cameron M. Bready: And then, of course, across the vertical market software businesses and those verticals where we do own the entirety of the software stack, again, we think we're well-positioned in those verticals to continue to grow nicely and continue to gain share with those businesses in the specific verticals that they're targeting. So, you know, that's really the software-centric strategy that we're pursuing here in the US market. I do think those are the areas of growth that we're continuing to focus on and continue to invest in in our business. And that's the best strategy for us competitively, I think, here in the US market. But I think we're feeling pretty sanguine about the overall competitive landscape in the US.

Cameron M. Bready: And continue to gain share with those businesses and the specific verticals that they are targeting so.

Cameron M. Bready: That's really the software centric strategies that we're pursuing here in the U S market I do think those are the areas of growth that we're continuing to focus on and continuing to invest in.

Cameron M. Bready: In our business and that's the best strategy for US competitively I think here in the U S market, but I think we're feeling pretty sanguine about the overall competitive landscape in the U S. I think pricing has become more rationalized, obviously with rates rising and competitors focusing on sort of profitability and free cash flow, which I think creates a.

Cameron M. Bready: I think pricing has become more rationalized, obviously, with rates rising and competitors focusing on sort of profitability and free cash flow, which I think creates a more constructive backdrop overall, just from a competitive standpoint. I'd say outside the U.S., we're pretty bullish about how we're positioned competitively, largely because of the capability that we can bring to bear on markets that are probably not quite as sophisticated from a product and solutioning standpoint as the U.S. market. So our ability to bring our point-of-sale solutions, our touch-on-mobile solutions, our commerce enablement capabilities, our Google Run and Grow My Business platform to markets outside the U.S., particularly in Europe, LATAM, and to some degree Asia-Pacific, I think competitively positions us really well in markets where I'd say the competitive dynamic is, in many cases, probably less intense than it is here in the U.S. market

Cameron M. Bready: More constructive.

Cameron M. Bready: Constructive backdrop overall, just from a competitive standpoint.

Cameron M. Bready: I'd say outside the U S. We're pretty bullish how we're positioned competitively largely because of the capability that we can bring to bear on markets that are probably not quite as sophisticated from a product and solution standpoint, as the U S market. So our ability to bring our point of sale solutions or touch on mobile solutions, our commerce enablement capabilities are.

Cameron M. Bready: We'll run them grow my business platform to markets outside the U S, particularly in Europe, Latam and to some degree Asia Pacific I think competitively positions us really well in markets, where I'd say the competitive dynamic in many cases is probably less intense than it is here in the U S market so from that perspective I'm relatively bold.

Cameron M. Bready: So from that perspective, I'm relatively bullish on what we can do, you know, putting aside macro, just in terms of competitive positioning in markets outside the U.S., bringing these distinctive and differentiating capabilities. And then, as a follow-up and related to this year's outlook, how should we be thinking about the targets, especially from a profitability standpoint, vis-a-vis kind of your cycle guide that was established a few years ago? And wondering, you know, kind of the trajectory of that and how we should be thinking about medium, EPS, targeted growth rates, etc. Thank you. Yeah, James, look, it's a fair question, and I'm not going to get ahead of my skis today and sort of give you a new quote-unquote cycle guide.

Cameron M. Bready: What we can do putting aside macro just in terms of competitive positioning in markets outside of the U S. Bringing these distinctive and differentiated capabilities.

Speaker Change: I appreciate that and then as a follow up and related to this year's outlook how.

Speaker Change: How should we be thinking about the targets, especially from a profitability standpoint visa b kind of your cycle guide and that was established a few years ago and wondering.

Speaker Change: Kind of the trajectory of that and how we should be thinking about medium term.

Speaker Change: Targeted growth rates et cetera. Thank you.

Speaker Change: Yes, James So look it's a fair question and I'm not going to get ahead of my skis today and sort of give a new quote unquote cycle guide.

Cameron M. Bready: Obviously, as I've communicated previously, we intend to host an Investor Day this year, and that'll be one of the topics that we cover at that time. And we'll provide a little more color about how we're thinking about the business then. But I would say if you just step back and look at how we're thinking about the business heading into the year, as we said, excluding kind of the anniversary of deals, if you think about the business on a normalized basis, we're targeting 7-plus percent revenue growth on the top line and kind of 14-plus percent from an earnings per share So think about it kind of in the high single-digits top-line growth and kind of mid-teens earnings per share growth, you know, again reflecting a little bit more of a tempered view of the macro environment heading into the year.

James Faucette: Obviously as <unk> communicated previously we intend to host an investor day. This year that'll be one of the topics that we cover at that time.

James Faucette: And then we'll provide a little more color about how we're thinking about the business and but I would say if you just step back and look at how we're thinking about the business heading into the year as we said excluding kind of the Anniversarying of deals. If you think about the business on a normalized basis, we're targeting 7% revenue growth on the top line and kind of 14.

James Faucette: Percents from an earnings per share perspective, so think about it kind of in the high single digit topline growth in kind of mid teens earnings per share growth again, reflecting a little bit more of a tempered view of the macro environment heading into the year I think that generally fairly reflective of how we think about the business.

Cameron M. Bready: I think that's generally fairly reflective of how we think about the business. And I think that kind of business is one that we can continue to execute against, and those targets and expectations are something that we think we can sustainably achieve over a period of time. So I would characterize the kind of the outlook broadly as reflective of how we think about the business, obviously, with the overlay of a little bit of a tempered macroeconomic expectation for 2024. Great, I appreciate that. Good luck!

James Faucette: And I think that kind of business is.

James Faucette: Is one that we can continue to execute against those targets and expectations are something that we think we can sustainably achieve over a period of time, so I wouldn't characterize kind of the outlook broadly is reflective of how we think about the business, obviously with the overlay of a little bit of a tempered macroeconomic expectation for 2024.

Speaker Change: Great I appreciate that good luck.

James Faucette: Thank you, James. Thank you. Our next question comes from the line of Dan Peller with Wolf Research. Please proceed with your question. Guys, thanks. I was actually going to touch on the medium-term guy, but that was helpful.

Speaker Change: Thank you guys.

Speaker Change: Thank you. Our next question comes from the line of Darrin Peller with Wolfe Research. Please proceed with your question.

Darrin Peller: Got it thanks, I was actually going to touch on the medium term guide, but that was helpful. But just as a kind of a quick follow up on me.

Dan Perlin: But just as a kind of a quick follow-up on the guidance, When we think about the inputs, again, you said more conservative in terms of the consumer, which is helpful. Are you incorporating any type of M&A or tuck-ins in that outlook that we should consider being at all material to the revenue growth rates? And then just going back to the guidance on margin.

Darrin Peller: The guidance when we think about the inputs again, you said more conservative in terms of the consumer which is helpful are you incorporating any type of M&A or tuck ins in that outlook that we should consider being at all material.

Darrin Peller: To the revenue growth rates, and then just going back to guide on margins.

Dan Perlin: I think you're saying up to 50 basis points. Can we just walk through that a bit? It's a little lower than it used to be in terms of margin expansion, but how much of that is synergies from Evo? How much of that is just operating leverage versus mix? Any conservatism in that outlook as well, and just maybe the inputs. And then also, if your margins are coming to a level that's higher, does that inform your view on capital allocation more, more buyback? Yeah, a lot buried in there, Darren.

Darrin Peller: You are saying up to 50 basis points can you just walk through that a bit it's a little lower than it used to be in terms of margin expansion. How much of that is synergies from evo how much of that is just operating leverage versus mix any conservatism in that outlook as well and just maybe the inputs and then also if your margins are coming to a level thats higher is that info.

Darrin Peller: <unk> your view on capital allocation more and more buybacks perhaps.

Darrin Peller: Yeah.

Speaker Change: <unk> been there Darren maybe I'll start and ask Josh to chime in as well on a couple of the comments I would just say on the first question. The answer is no from an M&A perspective, we did a small portfolio by in Q4, but it's de Minimis in terms of contribution to 2024, I mean less than 10 basis points. So that's not a particular large impact we don't have any other.

Cameron M. Bready: Maybe I'll start and ask Josh to chime in as well on a couple of the comments. But I would just say on the first question, the answer is no from an M&A perspective. We did a small portfolio buy in Q4, but it's de minimis in terms of contribution to 2024. I mean, less than 10 basis points. So that's not a particularly large impact. We don't have any other M&A included in our guide.

Speaker Change: M&A in included in our guide obviously, if we do M&A, we will update at the time as we have historically and provide an expectation of contribution for whatever M&A, we do as we head into 2024.

Cameron M. Bready: Obviously, if we do M&A, we'll update at the time as we have historically and provide an expectation of contribution for whatever M&A we do as we head into 2024. On the second question, I think as it relates to the margin guide, I'll just give a couple opening comments and then I'll let Josh maybe put out a little more color. I'd say two things, really. One is that I think we're taking a fairly prudent view of the outlook heading into the year. We have a lot of things that we're trying to accomplish as a business, particularly as it relates to Evo integration, as well as continuing to invest in the business in areas that we think are going to help drive growth and sustain growth over longer periods of time.

Speaker Change: The second question I think as it relates to the margin guide I'll just give a couple of opening comments and then I'll, let Josh Mega proud of would've more color.

Josh: I'd say two things really one is.

Speaker Change: I think we're taking a fairly <unk>.

Speaker Change: <unk> view of the outlook kind of heading into the year.

Speaker Change: We have a lot of things that we're trying to accomplish as a business, particularly as it relates to evo integration as well as continuing to invest in the business in areas that we think are going to help drive growth and sustained growth over longer periods of time. So I think like everything in life, it's a bit of a balanced view around how much of the benefit is flowing through margins to the <unk>.

Cameron M. Bready: So I think, like everything in life, it's a bit of a balanced view around how much of the benefit is flowing through margins to the bottom line versus how much we're reinvesting in the business to support the rollout of our new POS platform. Obviously, to ensure that we execute the integration of Evo seamlessly and effectively while we continue to invest in the running platforms to ensure stability and reliability.

Speaker Change: Bottom line versus how much we're reinvesting in the business to support the rollout of our new Pos platform.

Speaker Change: Obviously to ensure that we execute integration of Evo seamlessly effectively while we continue to invest in the underlying platforms to ensure stability and reliability, we continue to invest in bringing new product and capability to their markets, which you think will drive revenue, obviously longer term et cetera. So I think the view around margins is pretty.

Cameron M. Bready: We continue to invest in bringing new products and capability to their markets, which we think will drive revenue, obviously, longer term, et cetera. So I think the view around margins is pretty balanced around, again, wanting to invest in the business to drive growth, as well as allowing some of that to flow through to the bottom line to impact earnings. The last point I would make, and I'll ask Josh to add any color he would like, is if you exclude sort of the impact of Evo, which obviously is still coming in at a lower margin profile, I think overall margins for the year would be up closer to 75 basis points, and merchant margins would be closer to 60.

Speaker Change: It was pretty balanced around again wanting to invest in the business to drive growth as well as allowing some of that to flow through to the bottom line to impact earnings.

Speaker Change: Last point I would make and I'll ask Josh to add any color. He would like if you exclude sort of the impact of Evo, which obviously is still coming in at a lower margin profile I think overall margins for the year would be up closer to 75 basis points and merchant would be closer to 60. So I'll just remind you that's kind of off of a base for margin.

Cameron M. Bready: So I'll just remind you that's kind of off of a base for merchants of kind of 48%. So margins are fairly healthy in the business overall. We're focused on continuing to find opportunities for market expansion, again, while also continuing to find opportunities to invest to grow the business. Josh, I don't know if you'd want to add anything to that.

Speaker Change: Kind of 48% so margins are fairly healthy and the business overall.

Speaker Change: Focused on continuing to find opportunities for margin expansion again, while also continuing to find opportunities to invest to grow the business. Jeff I don't know if you want to add anything to that look I think the only thing I would add is if we think about margins by segment. We continue to expect margins to improve as synergies ramp and Darren you may recall, if you go back to last year.

Josh Whipple: No, look, I think the only thing I would add is that if we think about margins by segment, we continue to expect margins to improve as synergies ramp up. And Darren, you may recall, if you go back to last year, Q2 margins were down 170 basis points. Q3, they're down 90.

Jeff: Q2 margins were down 170 basis points Q3, they're down 90 in Q4 60 so.

Josh Whipple: And Q4, 60. So we're seeing a continued consistent positive trend coming into the year. I'd also just echo what Cameron said. We continue to focus on balancing margin expansion with reinvestment in the business. And as it relates to our issuer margins, we'll continue to see the benefit of strong volume-based revenue trends and ongoing expense management. In Q1, specifically, we expect margins to be slightly higher than 50 basis points, given the lower Q1 23 absolute margin figures. But otherwise, margin expansion for the overall company will be pretty consistent across each of the quarters. That's really helpful.

Jeff: We're seeing a continued consistent positive trend coming into the year I'd also just re echo what Cameron said, we continue to focus on balancing margin expansion expansion with reinvestment in the business.

Speaker Change: As it relates as it relates to our issuer margins will continue to see the benefit of a strong volume based revenue trends and ongoing expense management in Q1, specifically, we expect margins to be slightly higher than the 50 basis points given the lower Q1, 'twenty three absolute margin figures, but otherwise margin.

Speaker Change: For the overall company will be pretty consistent across each of each of the quarters.

Dan Perlin: And just quickly on the buyback question, I mean, is this, it looks like you raised your authorization, if I'm not mistaken. And so is this, you know, an indication of more capital return and, you know, expectations going forward? So look, you know, Darren, I would say that, you know, we plan to return to a more balanced capital allocation approach in 2024, buybacks remain, you know, one of our priorities, but you know, we plan to further reduce debt until we can return to that, you know, roughly three times, you know, levered, you know, target on a net debt basis during the year. And the only thing I'd add is So obviously, we're pleased the board supports that, and I think it sends a signal that we're very open-minded to share repurchases if that's the best alternative for capital allocation this year. Thanks, Cameron.

Speaker Change: That's really helpful and just quickly on the buyback question. I mean is this it looks like you raised your authorization of amount mistaken and so is this an indication of more more capital return expectations going forward.

Speaker Change: Total.

Speaker Change: Darren I would say that we plan to return to a more balanced capital allocation approach in 2020 for buybacks remains one of our priorities, but we plan to further reduce.

Speaker Change: Debt until we can return to that roughly three times levered.

Speaker Change: Target on a net debt basis during the year.

Speaker Change: Great Yeah, and the only thing I'd add I mean, it was important to us going it was important to us going in the year to have the capacity to be able to do share repurchases. If that's what capital allocation plans call for us. So obviously, we're pleased the board supports that and I think it sends a signal obviously that we're very open minded to share repurchases. If that's the that's the best alternative for capital.

Allocation this year.

Speaker Change: Yeah. Thanks, Kevin Thanks, guys.

Cameron M. Bready: Thank you. Our next question comes from the line of Ramsey Elisal with Barclays. Hi there, thanks for taking my question today. Could you help us think through the timing and magnitude of the contract? and the Commerce Bank JV this year? Will it ramp quickly? I don't know how much is baked into these guys.

Speaker Change: Thank you. Our next question comes from the line of Ramsey El <unk> with Barclays. Please proceed with your question.

Ramsey El: Hi, there thanks for taking my question today.

Ramsey El: Could you help us think through the timing and magnitude of the contribution from the Commerzbank JV this year.

Ramsey El: Will it ramp quickly does it does it and how.

Ramsey El: How much is baked into guidance basically from that deal.

Ramsey El: Yeah, it's a good question. Let me just be clear, Ramsey, about the joint venture itself. We're not buying into an existing portfolio that Commerce Bank has. Commerce Bank doesn't have an acquiring business today.

Speaker Change: Yes, it's a good question and let me just be clear Ramsey about the joint venture itself, we're not buying into an existing portfolio of the commerzbank has commerzbank doesn't have.

Speaker Change: And acquiring business today, what we're doing effectively through the joint venture is entering into a distribution partnership whereby commerce bank will obviously be a distribution channel for us.

Cameron M. Bready: What we're doing effectively through the joint venture is entering into a distribution partnership, whereby Commerce Bank will obviously be a distribution channel for us, not only 49% of the business, but they're largely bringing distribution to the party as it relates to the joint venture that we're establishing with them. So, essentially, think of it as a greenfield opportunity to really grow and scale a business in Germany, starting with a very small base that we acquired through the EVO acquisition last year, but it's an opportunity to grow and scale a more meaningful business in Germany over a long period of time. Commerce Bank is one of the largest domestic banks in Germany.

Speaker Change: 49% of the business, but they're largely bringing distribution too.

Speaker Change: To the party as it relates to the joint venture that we're establishing with them. So essentially think of it as a greenfield opportunity to really grow in scale a business in Germany, starting with a very small base that we acquired through the <unk> acquisition last year, but it's an opportunity to grow and scale a more meaningful business in Germany over.

Speaker Change: A long period of time.

Speaker Change: Commerce Bank as one of the largest domestic banks in Germany. They have one of the strongest market positions, particularly across small and medium sized merchants, which is obviously more of our target market and the markets that we serve around the globe. So and today, we think it's a fantastic new partner, that's going to allow us to build or.

Cameron M. Bready: They have one of the strongest market positions, particularly among small and medium-sized merchants, which is obviously more of our target market in the markets that we serve around the globe. So, and today we think it's a fantastic new partner that's gonna allow us to build, over time, a more meaningful business in Germany, but obviously, it's gonna take a while to scale there. A follow-up from me, could you update us on the UK business and just let us know if there is stabilization there on the macro or consumer spending front, and I guess the next question is, do you have the product capabilities that you need over there to compete effectively? Yeah, it's a good question, Ramsey.

Speaker Change: Over time, a more meaningful business in our in Germany, but obviously, it's going to take it's going to take a while to scale there.

Speaker Change: Got it great it sounds like a great new channel.

Speaker Change: Follow up from me could you update us on the UK business and just let US know if you are seeing stabilization there on the macro consumer spending front and I guess can be in the context of this sort of take payments chatter do you have the <unk>.

Speaker Change: Product capabilities that you need over there to compete effectively at this point.

Speaker Change: Yes.

Speaker Change: It's a good question Ramsey I'm not going to comment on the latter part of that naturally not surprisingly, we don't comment on market rumors of that nature, but I think as it relates to the UK market I would say a couple of things. One is we are starting to see some signs of stabilization, there, which I think is positive.

Cameron M. Bready: I'm not going to comment on the latter part of that. Naturally, not surprisingly, we don't comment on market rumors of that nature. But as it relates to the UK market, I would say a couple things. One is that we are starting to see some signs of stabilization there, which I think is positive. Obviously, they reported their sort of inflation numbers this morning, and they were generally in line with expectations, unlike where the US was yesterday.

Speaker Change: Obviously, they reported their sort of inflation numbers. This morning. They were generally in line with expectation, Unlike where the U S. Wise yesterday, so I think thats, a constructive step forward as well so.

Cameron M. Bready: So I think that's a constructive step forward as well. So, you know, I don't know that we've seen the absolute bottom in the UK, just as it relates to the macro pressure, obviously, that we've highlighted over the course of much of the last year and beyond. But I do think we are getting to a point where we're seeing, you know, obviously seeing things stabilized in that market, which gives us a little bit more optimism about where we can go over the longer term in the UK. I would say, as it relates to product and capability, the short answer is yes.

Speaker Change: I don't know that we've seen absolute bottom in the UK just as it relates to the macro pressure, obviously that we've highlighted over the course of much of the last year and beyond but I do think we are getting to a point, where we're seeing obviously seeing things stabilize in that market.

Which gives us a little bit more optimism about where we can go over the longer term in the U K I would say as it relates to product and capability. The short answer is yes, I mean, we've worked hard to bring new product and new solutions to that market, we've talked about bringing our GP pas solution to the UK market, which we think will give us a very competitive point of sale.

Cameron M. Bready: I mean, we've worked hard to bring new products and new solutions to that market. We've talked about bringing our GP POS solution to the UK market, which we think will give us a very competitive point of sale market. And again, that's not highly differentiated like it is here in the US market.

Speaker Change: The market and again, that's not highly differentiated like it is here in the U S market.

Cameron M. Bready: We have brought other solutions from a commerce enablement perspective to the UK market as well. So I think, certainly from a product capability standpoint, we have, you know, everything that we need to be successful in that market. I think the challenge with the UK has really been macro-driven, you know, over a longer period of time. And that's obviously something that I've said before. I think we're starting to see signs of stabilization there. Thank you. Our next question comes from the line of Dave Koenig with Baird. Please proceed.

Speaker Change: Brought other solutions from a commerce enablement perspective to the UK market as well so I think certainly from a product capability standpoint.

Speaker Change: We have everything that we need to be successful in that market I think the challenge with the UK has really been been macro driven.

Speaker Change: Longer period of time.

Speaker Change: And that's obviously something that I've said before I think we're starting to see signs of stabilization there.

Speaker Change: Great. Thank you.

Speaker Change: Thank you. Our next question comes from the line of Dave Koning with Baird. Please proceed with your question.

David John Koning: Yeah, hey guys, thanks. I thought one of the really encouraging parts of the quarter and just the guidance is free cash flow conversion. Not many companies are guiding to around 100% conversion. Can you kind of discuss that a little bit?

Hey, guys. Thanks, I thought one of the really encouraging parts of the quarter and just the guidance is free cash flow conversion not many companies are guiding to around 100% conversion.

Dave Koning: Can you kind of discuss that a little bit why what about your company convert so well and then kind of as a as a pairing with that question you've had semi hi merger add backs, although they've come down in the last few quarters are those going to go down pretty significantly in 2024.

Josh Whipple: Why, you know, what about your company converts so well? And then, kind of as a pairing with that question, you've had semi-high merger ad backs, although they've come down in the last few quarters. Are those going to go down pretty significantly in 2024? Yeah, I'll go ahead and take that. So look, you know, we were, I would say, generally, you know, very pleased with our free cash flow conversion, especially for the quarter. For the full year, we were under 100%.

Speaker Change: Yes, I'll go ahead and take that so look we were I would say generally very pleased with our free cash flow conversion, especially for the quarter were over 100% for the full year were 100% and this was in line with our expectations as we've been guiding over the last several quarter in last year and I would say that this can.

Josh Whipple: And this was, you know, in line with our expectations, as we've been, you know, guiding over the last, you know, several quarters in the last year. And I would say that, you know, this conversion follows, you know, the trajectory that we saw in 2022, a little bit weaker in the first half of the year and, you know, stronger in the second half of the year. So, you know, we, what I would say in 24, we continue to go ahead and target that same general trajectory and pattern, and we expect to go ahead and convert, you know, roughly 100% in 2024. You know, excluding the impact of the timing, you know, change of the recognition of the RD tax credits.

Speaker Change: <unk> follows the trajectory that we saw in 2022, a little bit weaker in the first half of the year and stronger in the second half of the year or so.

Speaker Change: We what I would say in 'twenty four we continue to go ahead and target that same general trajectory and pattern and we expect to go ahead to convert roughly 100%.

Speaker Change: In 2024.

Speaker Change: Excluding the impact of the timing change of the recognizing the R&D tax credits so.

Josh Whipple: So as it relates to the adbacks, you know, I would say we continue to go ahead and expect, you know, adbacks to come down. You know, I think you'll note in our schedule 10 of the press release that we expect, you know, gap earnings to be, you know, approximately 50% of adjusted earnings. That's a significant improvement, you know, relative to last year, and we expect that to go ahead and continue as time goes on. Thank you, and maybe just a quick follow-up on the pace through the year for earnings. I mean, it sounds like once you anniversary net spend and anniversary EVO, both revenue and EPS can accelerate a little bit given just the profile. Yeah, look, what I would say is, you know, we're expecting 11, 12, you know, percent EPS growth in Q1, as you rightly point out, we're anniversary, and you're not spending on gaming. So that will be slightly below the range, but I would say, you know, Q2 will be in the 11 to 12% range, and then Q3, Q4 will be in the 12 to 13%, you know, percent range, and that kind of gets you to 11 to 12, you know, for the full year. Great, thank you.

Speaker Change: As it relates to the add backs I would say we continue to go ahead and expect add backs to come down.

Speaker Change: Youll note in our scheduled <unk>.

Speaker Change: This release.

Speaker Change: We expect.

Speaker Change: GAAP earnings to be approximately.

Speaker Change: Approximately 50% of adjusted earnings the significant improvement relative to last year and we expect that to go ahead and continue as time goes on.

Speaker Change: Thank you and maybe just a quick follow up on the pace through the year of earnings I mean, it sounds like once you anniversary that spend an anniversary Evo both revenue and EPS can accelerate a little bit given just the profiles.

Speaker Change: Yes look what I would I would say is we're expecting 11% to 12% EPS.

Speaker Change: Growth Q1, as you rightly point out we're anniversarying, you're not spending gaming so that'll be slightly below the range, but I would say Q2 will be in the 11% to 12% range of that in Q3 Q4 will be in the 12% to 13% range in that kind of gets you to the 11 and 12 for the full year.

Speaker Change: Great. Thank you.

Josh Whipple: Thank you. Our next question comes from the line of Brian Bergen with TD Cowen. Hey, guys. Thank you. Good morning.

Speaker Change: Thank you. Our next question comes from the line of Ryan Bergan with TD Cowen. Please proceed with your question.

Ryan Bergan: Hey, guys. Thank you good morning, I wanted to dig in on the margin growth.

Bryan C. Bergin: I wanted to dig in on the merchant growth guide first. Are you expecting volumes to be generally in line with the forecast you have? Any comments on additional potential lift from pricing in that view? And are you forecasting that merchant growth level in the balance of the year after Evo and gaming sales to be generally flat? Yeah, good, good questions. I would say maybe just to address the last one quickly: the short answer is yes.

Ryan Bergan: And you're expecting volumes to be generally in line with the forecast you have any comments on additional potential lift from pricing in that view and are you forecasting that merchant growth level and the balance of the year. After evo in the gaming sales to be generally level.

Speaker Change: Yes, good questions I would say maybe just to address the last one quickly. The short answer is yes. Once we anniversary <unk> in the first quarter in gaming I would expect Q2 through four to be relatively consistent based on our current outlook for the full year, just going back to the first part.

Cameron M. Bready: You know, once we anniversary Evo in the first quarter and gaming, I would expect Q2 through Q4 to be relatively consistent, you know, based on our current outlook for the full year. Just going back to the first part of your question, I would say yes, we would expect volumes to generally track relatively in line with, you know, the revenue growth that we're seeing in the business. That's been a consistent trend.

Speaker Change: To your question I would say, yes, we would expect volumes to generally track relatively in line with the revenue growth that we're seeing in the business. That's been a consistent trend. If you look at the schedule. We provided in our earnings presentation. You can go back quite a long period of time and see that trend being pretty consistent which is something that we're pleased about so the outlook for 2024.

Cameron M. Bready: If you look at the schedule we provide in our earnings presentation, you can go back quite a long period of time and see that trend being pretty consistent, which is something that we're pleased about. So the outlook for 2024, I would say, by and large, we expect volumes to generally track our revenue expectations as we work ourselves through the balance of the year. And then I would say on pricing, you know, we really haven't changed our philosophy on that front. We've been pretty consistent in our commentary as to how we think about, you know, pricing, not only our commentary but our actual execution of it as well. You know, clearly geared towards making sure that we think we're getting paid fairly and appropriately for the level of value and service that we provide to our customers. We're not the cheapest provider in the market, and we don't strive to be.

Speaker Change: Say, yes by and large we expect volumes to generally track our revenue expectations as we work ourselves through the balance of the year and then I would say on pricing, we really haven't changed our philosophy on that front, we've been pretty consistent in our commentary as to how we think about pricing not only our commentary, but our actual execution of it.

Speaker Change: Well clearly geared towards making sure that we think we're getting paid fairly and appropriately for the level of value and service or listening to our customers. We're not the low cost provider in the market and we don't strive to be and we think the value proposition, we bring to customers and clients with differentiated and we want the price.

Cameron M. Bready: And we think the value proposition we bring to customers and clients is differentiated, and we want the price for our services to reflect that. So there's nothing unusual, I would say, in 2024 from a pricing perspective. It's a little bit more of a continuation of executing against that philosophy that we've had over a long period of time. Okay, I appreciate that.

Speaker Change: For our services to reflect that so there's nothing unusual I would say in 2024 from a pricing perspective, it's a little bit of more of a continuation of executing against that philosophy that we've had over a long period of time.

Speaker Change: Okay I appreciate that and then follow up on the vertical solutions business. As you think about potential investments where may have further interest to lean in where you arent currently exposed.

Cameron M. Bready: Follow up on the vertical solutions business. As you think about potential investments, where might you have further interest to lean into where you aren't currently exposed? Yeah, it's a good question.

Speaker Change: Yes, it's a good question.

Cameron M. Bready: And we take a lot of care to be very deliberate in terms of where we think we want to own software assets versus where we want to partner. We obviously have a fantastic integrated business; we have a great partnership model. That is a business that, you know, gives us, I think, a lot of opportunity to continue to benefit from embedded payments, integrated payments, put whatever term you want around it. So obviously, that is a focus of our growth, as well as, in certain vertical markets, wanting to own software assets, because we think we can drive better payment monetization, we think we can drive better growth and better differentiation in our solutions by owning software. So we tend to target verticals, as we said, for a long period of time that are large addressable spend markets; there needs to be a strong nexus with payments. You know, obviously, we're not in the business of owning software; we want to own software in vertical markets where there are strong consumer spends and a good opportunity to monetize payment flows coming out of that.

Speaker Change: We take a lot of.

Speaker Change: Care to be very deliberate in terms of where we think we want to own software assets versus where do we want a partner. We obviously have a fantastic integrated business. We have a great partnership model that is a business that gives us I think a lot of opportunity to continue to benefit from embedded payments integrated payments, but whatever term you want to <unk>.

Speaker Change: <unk>.

So obviously that is a focus of our growth as well as.

Speaker Change: In certain vertical markets wanting to own software assets.

Speaker Change: We think we can drive better payment modernization, we think we can drive better growth and better differentiation and our solutions by owning software. So we tend to target verticals as we said for a long period of time that a large addressable spend markets there needs to be a strong nexus with payments.

Speaker Change: Obviously, we're not in the business of owning software just own software, we want to own software in vertical markets, where theyre strong consumer spend.

Speaker Change: Have a good opportunity to monetize payment flows coming out of that.

Cameron M. Bready: The third thing I would say is we want to invest in software businesses where we can leverage our investment across the broader global payments ecosystem. You know, a big focus for us is finding ways to amplify the impact of the investments we're making, whether it's in our more traditional payments businesses or in our vertical market software businesses. We want to be able to take the investments that we're making in those businesses and find ways to amplify them across the broader global payments portfolio. And then lastly, as I've talked about before, we're very focused on those vertical markets that have some international applicability. One of the things we've been successful in doing, and I highlighted some of this in my script today, is taking our software solutions to markets outside of the U.S., the U.K., Canada, Australia, etc., and using those, obviously, as a means by which to drive growth and differentiation in markets outside the U.S. that we serve today. So that's another important element as we think about vertical expansion. So without getting into specific verticals, that's how we think about the world, but it's a pretty consistent mindset, I would say, that we've had over a long period of time as we've thought about investing in software. All right, thank you.

Speaker Change: Everything I would say is we want to invest in software businesses, where we can leverage our investment across the broader global payments.

Speaker Change: Big focus for us is finding ways to amplify the impact of the investments, we're making whether it's in our more traditional payments businesses or in our vertical market software businesses, we want to be able to take investments that we're making in those businesses and find ways to amplify them across the broader global payments portfolio.

Speaker Change: And then lastly, as I've talked about before we're very focused on those vertical markets that have some international applicability one of the things we've been successful in doing and I highlighted some of this in my script today is taking our software solutions to markets outside of the U S U K, Canada, Australia et cetera.

Speaker Change: And using those obviously as a means by which to drive growth and differentiation in markets outside of the U S. That we started today. So that's another important element as we think about vertical expansion so without getting into specific verticals that is how we think about the world.

Speaker Change: But it's a pretty consistent mindset I would say that we've had over a long period of time as we thought about investing in software.

Andrew Jeffery: Thank you. Our next question comes from the line of Andrew Jeffery with True Securities. Please proceed with your... Hi, good morning.

Speaker Change: Alright, thank you.

Thank you. Our next question comes from the line of Andrew Jeffrey with True Securities. Please proceed with your question.

Andrew Jeffrey: Hi, Good morning appreciate you taking the question.

Cameron M. Bready: Appreciate you taking the question. Cameron, I love the build-up to the growth rates in March. www.globalpaymentsinc.com. Can you talk a little bit about, again, the macro aside, maybe a couple levers that might accelerate merchant organic revenue growth over the longer term? And again, I want to stay away from CycleGuide, but just theoretically, conceptually, is there the capacity to accelerate the top line, and how do you do it?

Andrew Jeffrey: Cameron I loved the buildup.

Andrew Jeffrey: Two the growth rates in merchant and the focus on software and technology broadly can you talk a little bit about again, the macro aside maybe a couple of levers that might accelerate merchant organic revenue growth or longer term and again I want to stay away from cycle guide, but just theoretically conceptually.

Andrew Jeffrey: Is there the capacity to accelerate top line and how how do you do it in and how much of a sense of urgency as it versus just compounding what is a very nice rate today.

Andrew Jeffery: And how much of a sense of urgency is it versus just compounding what is a very nice rate today? Just trying to think about that longer. Yeah, Andrew, good questions. I would say, you know, certainly, that there are opportunities over time to be able to drive that, you know, higher, slightly higher. I mean, I would, you know, just sort of balance that against the fact that our merchant revenue today is, you know, north, well north of $7 billion. So you're moving a big number when we're talking about growth rates and the range that we're talking about.

Andrew Jeffrey: Just trying to think about that longer term.

Speaker Change: Yeah, Andrew it's a good good questions I would say certainly I think there are opportunities over time to be able to drive that higher.

Speaker Change: Slightly higher.

Speaker Change: Just sort of balance that against the fact that our merchant revenue today is north well north of $7 billion. So youre moving a big number.

Speaker Change: When we're talking about growth rates in the range that we're talking about but the areas where I'm sort of bullish.

Cameron M. Bready: But the areas where I'm sort of bullish, and I think there are probably prospects to drive, you know, better rates over time, are really around point of sale software. You know, we're making meaningful investments in that area. We spent a lot of time on our Q3 call talking about our overall point of sale strategy, how we think about the different assets that we own today, where we're trying to leverage those across, you know, our wholesale business, across our direct business, across our international markets, across enterprise QSR, and stadium and event venues, etc. So as we're rolling out our next generation of capabilities in 2024, and we think about bringing POS solutions to markets outside of the US over time, as I touched on, I'm pretty, you know, I do have high expectations for what we're able to do with that point of sale business and growing and scaling it over the next several years.

Speaker Change: And I think there are probably prospects to drive better rates over time is really around point of sale software, we're making meaningful investments in that area. We spent a lot of time on our Q3 call talking about our.

Speaker Change: Our overall point of sale strategy, how we think about the different assets that we own today, where we're trying to leverage those across.

Speaker Change: Our wholesale business across our direct business across our international markets across enterprise USR in stadiums and event venues et cetera. So as we're rolling out our next generation of capabilities in 2024, and we think about bringing Pos solutions to markets outside of the U S over time as I touched on them pretty.

Speaker Change: I do have high expectations for what we're able to do with that point of sale business in growing and scaling it over over the next several years. So I certainly think that is a lever that we want to lean on and try to drive obviously.

Cameron M. Bready: So I certainly think that is a lever, you know, that we want to lean on and try to drive, obviously, continued strong rates of growth in that channel that can obviously augment the overall rates of growth for the business. And I'd say the second thing is really the international markets, as I highlighted. I do think those markets, just as a competitive dynamic perspective, are less intense than the US market.

Speaker Change: Strong rates of growth in that channel that can obviously augment the overall rates of growth for the business and I'd say the second thing is really the international markets as I highlighted I do think those markets just as a competitive dynamic perspective are.

Speaker Change: Less intense than in the U S market I think we have great market positions, we have great partners and.

Cameron M. Bready: I think we have great market positions, we have great partners, and we're bringing more and more products and capability to those markets that I think can drive more differentiation and therefore lead to, you know, better rates of growth for the business over time. So certainly, that's another area in the business where I continue to see good opportunities for us to grow and scale. And then third, obviously, the more embedded payment trends that sort of become tailwinds for the business, the more omni-channel continues to drive meaningful growth, I would say, in the business overall. I think we're poised to take advantage of those trends over a longer period of time. And obviously, I think they support clearly the rates of growth that we have in the business and, hopefully, would provide some tailwinds to that over time. I appreciate that it's helpful.

Speaker Change: We're bringing more and more product and capability to those markets that I think can drive more differentiation and therefore lead to better rates of growth for the business over time, So certainly thats another area in the business, where I continue to see good.

Speaker Change: Good opportunity for us to grow in scale.

Speaker Change: And then third obviously, the more embedded payment trends that sort of become tailwind for the business the more.

Speaker Change: A more omnichannel continues to drive meaningful growth I would say in the business overall I think we're poised to take advantage of those trends over a longer period of time, and obviously I think those support clearly the rates of growth that we have in the business and hopefully we'll provide some tailwind to that over time.

Speaker Change: Okay I appreciate it that's helpful and just a quick one to follow up it looks like yields within the.

Cameron M. Bready: And just a quick one to follow up. It looks like yields within the issuer business have been pretty stable. Can you just comment on renewal terms? You called out a couple of big customer renewals. I just wondered.

Speaker Change: The issuer business have been pretty stable can you just comment on renewal terms, you've called out a couple of big customer renewals I, just wonder if pricing stable or what the trends are there.

Andrew Jeffery: Yeah, it's a good question, and obviously, not surprisingly, we don't get into specific conversations around pricing for any particular customer. I would say a couple of things. One is that we were obviously delighted to renew two flagship customers, as I called out in my prepared remarks. Those are customers that have been with us for a very long period of time; we have very strong relationships with them, and obviously, getting those renewals done, I think was important. It's also reflected in the guide for the business.

Speaker Change: Yeah. It's a good question and obviously not surprisingly, we don't get into specific conversations around pricing for any particular customer.

Speaker Change: I'd say a couple of things one is we were obviously delighted to renew two flagship customers as I called out in my prepared remarks.

Speaker Change: Those are customers that have been with us for a very long period of time, we have very strong relationships with and obviously getting those renewals done I think was important. It's also reflected in the guide for the business. So as you can see.

Cameron M. Bready: So as you can see, obviously, we're able to manage those in the context of still growing the issuer businesses kind of at our targeted rate of growth heading into 2024. I would say more broadly, as we continue to invest in modernization, we continue to invest in more enablement capabilities for our clients in building out more cloud native solutions and more microservices that allow our clients to be able to consume capabilities more easily. I think that's going to open up new channels and new avenues for growth for that business, which, we think, in the long term, obviously helps to drive better growth prospects for the issuer solutions business. So we've made a substantial amount of progress on our modernization efforts. We talked about what's in the plan for 2024. As we're running a number of pilots across the business, different geographies, products, services, and bundles that we sell into the market, that obviously positions us to begin to start commercializing those solutions in the near term.

Speaker Change: So you were able to manage those in the context of still growing the issuer business is kind of at our targeted rate of growth heading into 2020 for I would say more broadly as we continue to invest in modernization, we continue to invest in more enablement capability for our clients and building out more cloud native solutions and more micro services at a wildlife.

Speaker Change: Clients will be able to consume capabilities more easily I think thats going to open up new channels and new avenues for growth for that business, which we think long term obviously helps to drive.

Better growth prospects for the issuer solutions business. So we've made a substantial amount of progress on our modernization efforts, we talked about what's in the plan for 2024 as we're running a number of pilots across the business different geographies products and services and bundles that we sell into the market that obviously positions us to begin to start to merge.

Speaker Change: <unk> those solutions in the near term, so where we're pleased with how that progress how that project is progressing.

Cameron M. Bready: So we're pleased with how that progress, how that project is progressing. And we're pleased with how it positions that business, I think, to obviously sustain kind of current rates of growth. But obviously, the goal and the objective is to be able to accelerate those rates of growth over time by opening up new markets and opening up new revenue channels for the issuer business.

Speaker Change: And we're pleased with how it positioned that business I think obviously sustained kind of current rates of growth, but obviously.

Speaker Change: The goal and the objective is to be able to accelerate those rates of growth over time by opening up new markets and opening up new revenue channels for the issuer business.

Andrew Jeffery: Thanks, Andrew. And with that, I'd like to thank everyone for joining our call this morning. We appreciate your interest in global payments and all of your support. And I'll wish everyone a happy Valentine's Day. Have a great day. Thank you. This concludes today's conference call. You may disconnect your lines at this time.

Speaker Change: Thank you very much.

Speaker Change: Thanks, Andrew.

Speaker Change: And with that I'd like to thank everyone for joining our call. This morning. We appreciate your interest in global payments and all of your support and I wish everyone. A happy Valentine's day have a great day.

Speaker Change: Thank you. This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.