Fidelity National Information Services (FIS): Key Takeaways from NDR with mgmt

研报英文原文证据摘录

Fidelity National Information Services (FIS): Key Takeaways from NDR with mgmt

Goldman Sachs Fidelity National Information Services (FIS)

mix of revenue growth towards higher margin activities, and noted that recent

leadership changes in its go-to-market organization have helped accelerate this

pivot (which has been ongoing for several years). At the center of the strategy is

driving more payments-oriented revenues, including Debit processing, Credit

processing (leveraging the TSYS capabilities), and bank money movement (wires,

ACH, RTP etc). Mgmt noted that prior leadership decisions had led the company to

over index to lower margin products, including core processing, card production,

and BPO services, which mgmt is focused on reversing over the next several years.

The company remains focused on delivering against their operating leverage

framework, supported by cost savings from the TSYS deal and headcount reductions

in their services organization, but noted that over time, they believe the shift

towards higher value recurring ACV sales should help support organic margin

expansion.

o TSYS Integration: Mgmt noted that the TSYS integration is progressing well,

with a strong cultural and strategic fit. The company continues to see

opportunities for cost savings over time, in-line with previously communicated

guidance, and noted that they believe the revenue synergies (largely cross-sell

related) are proving to be higher than initially anticipated (though they will

take a long time to fully convert due to lengthy sales and conversion cycles).

n Next-Generation Core: While less of a near term driver, the company is also

speaking to opportunities to facilitate core modernization, building on its Modern

Banking Platform.