GLOBAL PAYMENTS INC. 4Q & Full Year
2021 Earnings
Innovation that delivers. | ||||
02/10/2022 | ||||
C O P Y R I G H T G L O B A L P A Y M E N T S 2 0 2 2 A L L R I G H T S R E S E R V E D
Forward-Looking Statements
This presentation contains certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-lookingstatements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by ourmanagement, involve risks and uncertainties, many of which are beyond our control and cannot be foreseen, that could significantly affect the financial condition, results of operations,businessplans and the future performance of Global Payments. Actual events or results might differ materially from those expressed or forecasted in these forward-lookingstatements. Accordingly, wecannot guarantee that our plans and expectations will be achieved. Examples of forward-lookingstatements include, but are not limited to, statements we make regarding revenue, earningsestimates, operating margins, and liquidity; management's expectations regarding future plans, objectives and goals; market and growth opportunities; and other statements regarding ourfuture financial performance. Statements can generally be identified as forward-lookingbecause they include words such as "believes," "anticipates," "expects," "intends," "plan," "forecast,""could," "should," or words of similar meaning.
In addition to factors previously disclosed in Global Payments' reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual events or results to differ materially from those anticipated by such forward-looking statements or historical performance: the effects of global economic, political, market, health andsocial events or other conditions, including the effects and duration of the COVID-19pandemic and actions taken in response; our ability to meet our liquidity needs in light of the effects oftheCOVID-19 pandemic or otherwise; the outcome of any legal proceedings that may be instituted against Global Payments and our directors; difficulties, delays and higher than anticipated costs related to integrating the businesses of Global Payments and Total System Services, Inc. ("TSYS"), including with respect to implementing controls to prevent a material security breach of any internal systems or to successfully manage credit and fraud risks in business units; the impact of a security breach or operational failure on Global Payments' business; failing to comply withthe applicable requirements of Visa, Mastercard or other payment networks or card schemes or changes in those requirements; the ability to maintain Visa and Mastercard registration andfinancial institution sponsorship; the ability to retain, develop and hire key personnel; the diversion of management's attention from ongoing business operations; the continued availability ofcapital and financing; increased competition in the markets in which we operate and our ability to increase our market share in existing markets and expand into new markets; our ability tosafeguard our data; risks associated with our indebtedness, foreign currency exchange and interest rate risks; our ability to meet environmental, social and governance targets, goals andcommitments; the potential effects of climate change including natural disasters; the effects of newor changes in current laws, regulations, credit card association rules or other industrystandards on us or our partners and customers, including privacy and cybersecurity laws and regulations; and other events beyond our control, such as acts of terrorism, and other factorsincluded in the "Risk Factors" in our Annual Report on Form 10-Kfor the year ended December 31, 2020, and in other documents that we file with the SEC, which are available athttps://www.sec.gov. Any forward-lookingstatements speak only as of the date of this communication or as of the date they were made, and we undertake no obligation to update forward-lookingstatements, except as required by law.
Use of Non-GAAP Financial Measures
The following presentation may include certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule which reconciles our results as reported under Generally Accepted Accounting Principles and the non-GAAP financial measures included in the following presentation is attached as an Appendix hereto and is also posted on the Company's website atwww.globalpayments.com(in the "News and Events" section of the Investor Relations page).
2
Record financial performance
for 4Q & FY 2021
Adjusted Net Revenue | Adjusted Operating Margin | Adjusted EPS | ||||||||||||
$1.98B | 42.0% | $2.13 | ||||||||||||
4Q | ||||||||||||||
2021 | ||||||||||||||
+13% | +50 bps1 | +18% | ||||||||||||
Full | $7.74B | 41.8% | $8.16 | |||||||
Year | ||||||||||
+15% | +210 bps | +28% | ||||||||
2021 | ||||||||||
- Adjusted operating margin expansion excluding the impact from recent acquisitions was 110 bps.
See appendix for a reconciliation to the closest GAAP measures. | C O P Y R I G H T G L O B A L P A Y M E N T S 2 0 2 2 A L L R I G H T S R E S E R V E | 3 |
Comparisons are to 4Q20 or FY20 unless otherwise noted. |
Merchant
Solutions
4Q
2021
Full
Year 2021
2022 Outlook
Adjusted | Adjusted | ||||||||||||||||
Highlights | |||||||||||||||||
Net Revenue | Operating Margin | ||||||||||||||||
28% Global volume growth | |||||||||||||||||
$1.34B | 48.2% | ||||||||||||||||
in 4Q21 vs. 4Q19 | |||||||||||||||||
+21% | +70 bps1 | ||||||||||||||||
16% MID growth in | |||||||||||||||||
2021 vs. 2019 | |||||||||||||||||
$5.14B | 48.1% | 20%+ | |||||||||||||||
+21% | +260 bps | Bookings growth | |||||||||||||||
in 2021 vs. 2020 | |||||||||||||||||
50% POS software growth | |||||||||||||||||
+up to | |||||||||||||||||
+low | |||||||||||||||||
double | 100 bps2 | in 2021 vs. 2020 | |||||||||||||||
digits | |||||||||||||||||
- Adjusted operating margin expansion excluding the impact from recent acquisitions was 130 bps.
- Total company adjusted operating margin outlook for 2022; adjusted operating margin expansion outlook excluding the
"MIDs" refers to Merchant IDs.
See appendix for a reconciliation to the closest GAAP measures.
Merchant Solutions revenue
and volume trends
20191 | 2020 | 2021 | |||||||||||||
1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | 1Q | 2Q | 3Q | 4Q | FY | |
Merchant Solutions | 1,082.5 | 1,150.9 | 1,199.6 | 1,161.0 | 4,594.1 | 1,101.3 | 905.7 | 1,125.4 | 1,112.3 | 4,244.7 | 1,149.8 | 1,288.7 | 1,357.6 | 1,340.0 | 5,136.1 |
Adj. Net Revenue | |||||||||||||||
($M) | |||||||||||||||
YoY Growth | -7.6% | 4.4% | 42.3% | 20.6% | 20.5% | 21.0% | |||||||||
Growth vs 2019 | 6.2% | 12.0% | 13.2% | 15.4% | 11.8% | ||||||||||
Volume ($B) | 184.8 | 190.6 | 190.1 | 191.1 | 756.6 | 176.7 | 158.5 | 193.6 | 196.9 | 725.7 | 194.3 | 225.1 | 235.7 | 244.8 | 899.9 |
YoY Growth | -4.1% | 10.0% | 42.1% | 21.7% | 24.3% | 24.0% | |||||||||
Growth vs 2019 | 5.1% | 18.1% | 24.0% | 28.2% | 18.9% | ||||||||||
1 2019 results are pro forma for the merger with TSYS.
Amounts may not sum due to rounding. | C O P Y R I G H T G L O B A L P A Y M E N T S 2 0 2 2 A L L R I G H T S R E S E R V E | 5 |
See appendix for a reconciliation to the closest GAAP measures. | ||
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Global Payments Inc. published this content on 10 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2022 12:12:14 UTC.
