FIS Reports Full-Year 2023 Results, Introduces 2024 Outlook, Raises Future Forward Expectations and Announces $500 Million Increase to Share Repurchase Goal
JACKSONVILLE, Fla.– FIS® (NYSE:FIS), a global leader in financial services technology, has announced its fourth quarter and full-year 2023 results, showcasing continued positive momentum and financial commitment achievements. FIS CEO and President Stephanie Ferris shared her enthusiasm for the company’s performance and upcoming initiatives. “Our 2023 results and our 2024 outlook reflect the continued positive momentum of the business. We have consistently delivered on our financial commitments and successfully closed the Worldpay transaction,” Ferris stated. “I am pleased with our outperformance on our Future Forward expectations, and we are once again increasing our share repurchase goal by $500 million. This reflects our confidence in the business’ strength and our commitment to returning capital to shareholders.”
The announcement of the increased share repurchase goal comes after the completion of the Worldpay Merchant Solutions business transaction. FIS sold a 55% stake in Worldpay to private equity funds managed by GTCR, marking a significant move towards creating two highly focused global companies with greater strategic flexibility.
As FIS gears up for the future, it remains dedicated to shareholder returns, increasing its goal to repurchase at least $4.0 billion of shares by the end of 2024. The company continues to target a dividend payout ratio of 35% of adjusted net earnings, maintaining its commitment to shareholder value.
The financial results for the fourth quarter of 2023 showed a slight decrease in GAAP revenue, attributed to $1.2 billion of revenue classified as discontinued operations. However, adjusted metrics tell a story of resilience and growth, with adjusted EBITDA margin expanding and adjusted recurring revenue growth offsetting declines in non-recurring revenue. This performance underscores FIS’ operational efficiency and its ability to navigate a dynamically evolving market.
Segment-wise, FIS showcased strength across the board. The Banking Solutions segment demonstrated robust growth in recurring revenue, offset by a decline in non-recurring revenue. The Capital Market Solutions segment reported revenue growth, thanks to adjusted recurring revenue growth. Meanwhile, the Corporate and Other segment saw a decrease in revenue, mainly due to the divestitures of non-strategic businesses, illustrating FIS’ focus on its core operational strengths.
Looking Ahead: 2024 Outlook and Future Forward Outperformance
As FIS looks to the future, it is setting ambitious goals for 2024. The company projects accelerated revenue growth, expanding adjusted EBITDA margins, and year-over-year adjusted EPS growth, reflecting confidence in its strategic direction and operational efficiency. This positive outlook is supported by FIS’ significant operational expense savings and capital expense savings achievements, part of its ongoing Future Forward initiative designed to streamline operations and foster sustainable growth.
In summary, FIS’ full-year 2023 results, combined with its 2024 outlook and continued commitment to shareholder value, paint a picture of a company on a strong footing. With its strategic initiatives and operational efficiencies driving growth, FIS is well-positioned to navigate the challenges and opportunities that lie ahead in the financial services technology sector.
