Global Payments Reports Fourth Quarter and Full Year 2024 Results

ATLANTA--(BUSINESS WIRE)--Global Payments Inc. (NYSE: GPN) today announced results for the fourth quarter and year ended December 31, 2024. "2024 was a pivotal year for Global Payments as we launched our broad transformation agenda to set the future course for our business,” said Cameron Bready, chief executive officer. "We delivered solid financial performance consistent with our expectations, while also successfully reorienting to a unified operating model globally to address our complexity, enhance our agility and better position the business to execute against our refreshed strategy.” Bready continued, “We are pleased with the progress we have made since commencing our transformation to unlock substantial value and position the business for long-term sustainable growth and success. We now expect to deliver more than $600 million of annual run-rate operating income benefits through our transformation by the first half of 2027.” Bready concluded, “As we look ahead, we remain confident that we are on the right path with our renewed strategic focus to reach our aspiration to become the worldwide partner of choice for commerce solutions.” Fourth Quarter 2024 Summary GAAP revenues were $2.52 billion, compared to $2.43 billion in 2023; diluted earnings per share were $2.25, compared to $1.38 in the prior year; and operating margin was 33.1%, compared to 20.5% in the prior year. Adjusted net revenues increased 5% (6.5% constant currency excluding dispositions) to $2.29 billion, compared to $2.19 billion in the fourth quarter of 2023. Adjusted earnings per share increased 11% (12% constant currency) to $2.95, compared to $2.65 in the fourth quarter of 2023. Adjusted operating margin expanded 40 basis points to 45.2%. Full Year 2024 Summary GAAP revenues were $10.11 billion, compared to $9.65 billion in 2023; diluted earnings per share were $6.16, compared to $3.77 in the prior year; and operating margin was 23.1%, compared to 17.8% in the prior year. Adjusted net revenues increased 6% to $9.15 billion, compared to $8.67 billion in 2023. Adjusted earnings per share increased 11% to $11.55, compared to $10.42 in 2023. Adjusted operating margin expanded 40 basis points to 45.0%. 2025 Outlook “We are pleased with our performance during 2024, which culminated with a sequential acceleration in constant currency growth in both our Merchant and Issuer businesses, excluding dispositions,” said Josh Whipple, chief financial officer. “We also generated strong adjusted free cash flow during the year, while effectively balancing returning capital to our shareholders and reducing our net leverage position.” Whipple continued, "Consistent with the medium-term outlook we provided at our Investor Conference, we expect constant currency adjusted net revenue growth to be in a range of 5% to 6%, excluding dispositions, and constant currency adjusted earnings per share growth to be in a range of 10% to 11% in 2025. Annual adjusted operating margin is expected to expand 50 basis points excluding dispositions. We also expect to return approximately $2 billion to shareholders during the year.” Whipple concluded, “Our outlook reflects the strategic initiatives we are undertaking through our transformation and assumes a stable macro environment. We are confident that the business has good forward momentum as we execute against our refocused strategy.” Capital Allocation Global Payments’ Board of Directors approved a dividend of $0.25 per share payable on March 28, 2025 to shareholders of record as of March 14, 2025. Conference Call Global Payments’ management will host a live audio webcast today, February 13, 2025, at 8:00 a.m. ET to discuss financial results and business highlights. The audio webcast, along with supplemental financial information, can be accessed via the investor relations page of the company’s website at investors.globalpayments.com. A replay of the audio webcast will be archived on the company's website following the live event. Non-GAAP Financial Measures Global Payments supplements revenues, operating income, operating margin and net income and earnings per share determined in accordance with GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this earnings release to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. Global Payments also has provided supplemental non-GAAP information to reflect the disposition of the consumer portion of our Netspend business, which comprised our former Consumer Solutions segment, which closed in April 2023. Management believes that providing such supplemental financial information should enhance shareholders’ ability to evaluate how the business will be managed going forward. Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure is included in the schedules to this release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measures. About Global Payments Global Payments Inc. (NYSE: GPN) is a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. Headquartered in Georgia with approximately 27,000 team members worldwide, Global Payments is a Fortune 500® company and a member of the S&P 500 with worldwide reach spanning North America, Europe, Asia Pacific and Latin America. For more information, visit company.globalpayments.com and follow Global Payments on X, LinkedIn and Facebook. Forward-Looking Statements Investors are cautioned that some of the statements we use in this release contain forward-looking statements and are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, 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 our management, involve risks and uncertainties that could significantly affect the financial condition, results of operations, business plans and the future performance of Global Payments. Actual events or results might differ materially from those expressed or forecasted in these forward-looking statements. Accordingly, we cannot guarantee that our plans and expectations will be achieved. Examples of forward-looking statements include, but are not limited to, statements we make regarding future financial and operating results, including revenue, earnings estimates, liquidity, and deleveraging plans, management’s expectations regarding future plans, objectives and goals; market and growth opportunities; capital available for allocation; the effects of general economic conditions on our business; statements about the benefits of acquisitions or dispositions, including future financial and operating results, and the successful integration of our acquisitions; statements about the completion of anticipated benefits and strategic or operational initiatives; statements regarding our success and timing in developing and introducing new services and expanding our business; and other statements regarding our future financial performance and the company’s plans, objectives, expectations and intentions. Statements can generally be identified as forward-looking because they include words such as “believes,” “anticipates,” “expects,” “intends,” “plan,” “forecast,” “could,” “should,” “will,” “would,” or words of similar meaning. Although we believe that the plans and expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our plans and expectations will be attained, and therefore actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. 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 results to differ materially from forward-looking statements or historical performance: the effects of global economic, political, market, health and social events or other conditions; foreign currency exchange, inflation and rising interest rate risks; difficulties, delays and higher than anticipated costs related to integrating the businesses of acquired companies, 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 effect of a security breach or operational failure on our business; failing to comply with the 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 and financial institution sponsorship; the ability to retain, develop and hire key personnel; the diversion of management’s attention from ongoing business operations; the continued availability of capital 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 to safeguard our data; risks associated with our indebtedness; the potential effect of climate change including natural disasters; the effects of new or changes in current laws, regulations, credit card association rules or other industry standards on us or our partners and customers, including privacy and cybersecurity laws and regulations; and other events beyond our control, and other factors included in the “Risk Factors” section in our most recent Annual Report on Form 10-K and in other documents that we file with the SEC, which are available at https://www.sec.gov. These cautionary statements qualify all of our forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date they are made and should not be relied upon as representing our plans and expectations as of any subsequent date. While we may elect to update or revise forward-looking statements at some time in the future, we specifically disclaim any obligation to publicly release the results of any revisions to our forward-looking statements, except as required by law. SCHEDULE 1 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) Three Months Ended Years Ended December 31, December 31, 2024 2023 % Change 2024 2023 % Change Revenues $ 2,515,386 $ 2,433,812 3.4 % $ 10,105,894 $ 9,654,419 4.7 % Operating expenses: Cost of service 952,297 922,284 3.3 % 3,760,116 3,727,521 0.9 % Selling, general and administrative 1,003,075 1,015,164 (1.2 )% 4,285,307 4,073,768 5.2 % Net (gain) loss on business dispositions (273,134 ) (2,351 ) nm (273,134 ) 136,744 nm 1,682,238 1,935,097 7,772,289 7,938,033 Operating income 833,148 498,715 67.1 % 2,333,605 1,716,386 36.0 % Interest and other income 42,596 38,881 9.6 % 169,168 113,711 48.8 % Interest and other expense (156,776 ) (169,687 ) (7.6 )% (633,986 ) (660,150 ) (4.0 )% (114,180 ) (130,806 ) (464,818 ) (546,439 ) Income before income taxes and equity in income of equity method investments 718,968 367,909 95.4 % 1,868,787 1,169,947 59.7 % Income tax expense 140,540 9,272 nm 295,133 209,020 41.2 % Income before equity in income of equity method investments 578,428 358,637 61.3 % 1,573,654 960,927 nm Equity in income of equity method investments, net of tax 19,855 13,795 43.9 % 70,499 67,896 3.8 % Net income 598,283 372,432 60.6 % 1,644,153 1,028,823 nm Net income attributable to noncontrolling interests (31,110 ) (11,136 ) 179.4 % (73,788 ) (42,590 ) 73.3 % Net income attributable to Global Payments $ 567,173 $ 361,296 57.0 % $ 1,570,365 $ 986,233 nm Earnings per share attributable to Global Payments: Basic earnings per share $ 2.26 $ 1.39 62.6 % $ 6.18 $ 3.78 nm Diluted earnings per share $ 2.25 $ 1.38 63.0 % $ 6.16 $ 3.77 nm Weighted-average number of shares outstanding: Basic 251,123 260,375 254,291 261,126 Diluted 251,766 261,102 254,845 261,698 Note: nm = not meaningful. SCHEDULE 2 NON-GAAP FINANCIAL MEASURES (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) Three Months Ended Years Ended December 31, December 31, 2024 2023 % Change 2024 2023 % Change Adjusted net revenue $ 2,289,015 $ 2,186,240 4.7 % $ 9,154,007 $ 8,670,965 5.6 % Adjusted operating income $ 1,034,048 $ 978,506 5.7 % $ 4,120,567 $ 3,867,524 6.5 % Adjusted net income attributable to Global Payments $ 742,290 $ 692,206 7.2 % $ 2,942,560 $ 2,727,407 7.9 % Adjusted diluted earnings per share attributable to Global Payments $ 2.95 $ 2.65 11.3 % $ 11.55 $ 10.42 10.8 % Supplemental Non-GAAP⁽¹⁾ Adjusted net revenue⁽¹⁾ $ 2,289,015 $ 2,186,240 4.7 % $ 9,154,007 $ 8,525,523 7.4 % Adjusted operating income⁽¹⁾ $ 1,034,048 $ 978,506 5.7 % $ 4,120,567 $ 3,794,294 8.6 % ---------------------------------------------------------------------------------- (1) The supplemental non-GAAP information reflects the disposition of our consumer business which closed in April 2023. See Schedules 6 and 7 for a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure, Schedules 8 and 9 for a reconciliation of adjusted net revenue and adjusted operating income by segment and supplemental non-GAAP information to the most comparable GAAP measure, and Schedule 10 for a discussion of non-GAAP financial measures. SCHEDULE 3 SEGMENT INFORMATION (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Three Months Ended December 31, 2024 December 31, 2023 % Change GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP Revenues: Merchant Solutions $ 1,885,923 $ 1,763,013 $ 1,819,885 $ 1,670,482 3.6 % 5.5 % Issuer Solutions 646,284 542,099 629,674 530,649 2.6 % 2.2 % Intersegment Elimination (16,821 ) (16,098 ) (15,747 ) (14,891 ) (6.8 )% (8.1 )% $ 2,515,386 $ 2,289,015 $ 2,433,812 $ 2,186,240 3.4 % 4.7 % Operating income: Merchant Solutions $ 652,406 $ 852,031 $ 596,633 $ 797,346 9.3 % 6.9 % Issuer Solutions 119,925 254,440 117,419 251,003 2.1 % 1.4 % Corporate (212,317 ) (72,423 ) (217,688 ) (69,843 ) 2.5 % (3.7 )% Net gain on business dispositions 273,134 — 2,351 — nm nm $ 833,148 $ 1,034,048 $ 498,715 $ 978,506 67.1 % 5.7 % Years Ended December 31, 2024 December 31, 2023 % Change GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP Revenues: Merchant Solutions $ 7,688,703 $ 7,103,338 $ 7,151,793 $ 6,536,966 7.5 % 8.7 % Issuer Solutions 2,483,657 2,113,242 2,398,870 2,045,883 3.5 % 3.3 % Consumer Solutions — — 182,740 163,027 nm nm Intersegment Elimination (66,466 ) (62,573 ) (78,984 ) (74,911 ) 15.8 % 16.5 % $ 10,105,894 $ 9,154,007 $ 9,654,419 $ 8,670,965 4.7 % 5.6 % Operating income: Merchant Solutions $ 2,612,915 $ 3,448,689 $ 2,345,255 $ 3,148,540 11.4 % 9.5 % Issuer Solutions 442,442 982,849 409,807 948,799 8.0 % 3.6 % Consumer Solutions — — (3,908 ) 73,230 nm nm Corporate (994,886 ) (310,971 ) (898,024 ) (303,045 ) (10.8 )% (2.6 )% Net gain (loss) on business dispositions 273,134 — (136,744 ) — 299.7 % nm $ 2,333,605 $ 4,120,567 $ 1,716,386 $ 3,867,524 36.0 % 6.5 % ---------------------------------------------------------------------------------- See Schedules 8 and 9 for a reconciliation of adjusted net revenue and adjusted operating income by segment to the most comparable GAAP measures and Schedule 10 for a discussion of non-GAAP financial measures. Note: Amounts may not sum due to rounding. Note: nm = not meaningful. SCHEDULE 4 CONSOLIDATED BALANCE SHEETS (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except share data) December 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 2,538,416 $ 2,088,887 Accounts receivable, net 1,081,740 1,120,078 Settlement processing assets 1,620,921 4,097,417 Prepaid expenses and other current assets 795,593 767,377 Total current assets 6,036,670 8,073,759 Goodwill 26,286,318 26,743,523 Other intangible assets, net 8,931,943 10,168,046 Property and equipment, net 2,277,593 2,190,005 Deferred income taxes 106,083 111,712 Notes receivable 772,297 713,123 Other noncurrent assets 2,479,351 2,570,018 Total assets $ 46,890,255 $ 50,570,186 LIABILITIES AND EQUITY Current liabilities: Settlement lines of credit $ 503,407 $ 981,244 Current portion of long-term debt 1,075,708 620,585 Accounts payable and accrued liabilities 3,079,924 2,824,979 Settlement processing obligations 1,593,675 3,698,921 Total current liabilities 6,252,714 8,125,729 Long-term debt 15,164,659 15,692,297 Deferred income taxes 1,832,996 2,242,105 Other noncurrent liabilities 623,319 722,540 Total liabilities 23,873,688 26,782,671 Commitments and contingencies Redeemable noncontrolling interests 160,623 507,965 Equity: Preferred stock, no par value; 5,000,000 shares authorized and none issued — — Common stock, no par value; 400,000,000 shares authorized at December 31, 2024 and 2023; 248,708,899 shares issued and outstanding at December 31, 2024, and 260,382,746 shares issued and outstanding at December 31, 2023 — — Paid-in capital 18,118,942 19,800,953 Retained earnings 4,774,736 3,457,182 Accumulated other comprehensive loss (612,992 ) (258,925 ) Total Global Payments shareholders’ equity 22,280,686 22,999,210 Nonredeemable noncontrolling interests 575,258 280,340 Total equity 22,855,944 23,279,550 Total liabilities, redeemable noncontrolling interests and equity $ 46,890,255 $ 50,570,186 SCHEDULE 5 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Years Ended December 31, 2024 2023 Cash flows from operating activities: Net income $ 1,644,153 $ 1,028,823 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property and equipment 493,003 458,157 Amortization of acquired intangibles 1,369,328 1,318,535 Amortization of capitalized contract costs 138,051 123,405 Share-based compensation expense 164,244 208,994 Provision for operating losses and credit losses 81,018 97,103 Noncash lease expense 58,728 65,307 Deferred income taxes (346,228 ) (499,974 ) Paid-in-kind interest capitalized to principal of notes receivable (74,139 ) (46,524 ) Equity in income of equity method investments, net of tax (70,499 ) (67,896 ) Distributions received on investments 32,849 18,267 Technology asset charge 55,808 — Net (gain) loss on business dispositions (273,134 ) 136,744 Other, net 45,787 71,063 Changes in operating assets and liabilities, net of the effects of business combinations: Accounts receivable (10,443 ) (78,647 ) Settlement processing assets and obligations, net 338,341 (345,898 ) Prepaid expenses and other assets (221,447 ) (289,826 ) Accounts payable and other liabilities 107,263 51,108 Net cash provided by operating activities 3,532,683 2,248,741 Cash flows from investing activities: Business combinations and other acquisitions, net of cash and restricted cash acquired (487,056 ) (4,225,610 ) Capital expenditures (674,917 ) (658,142 ) Issuance of notes receivable — (50,000 ) Repayment of notes receivable — 50,000 Net cash from sales of businesses 962,435 479,067 Proceeds from sales of investments 19,008 42,135 Other, net 6,639 1,438 Net cash used in investing activities (173,891 ) (4,361,112 ) Cash flows from financing activities: Net (repayments) borrowings from settlement lines of credit (442,713 ) 220,682 Net (repayments) borrowings from commercial paper notes (1,367,859 ) 1,367,859 Proceeds from long-term debt 9,635,049 10,336,850 Repayments of long-term debt (8,334,846 ) (9,099,938 ) Payments of debt issuance costs (33,056 ) (12,735 ) Repurchases of common stock (1,551,950 ) (418,272 ) Proceeds from stock issued under share-based compensation plans 43,009 60,345 Common stock repurchased - share-based compensation plans (56,229 ) (41,225 ) Purchase of subsidiary shares from noncontrolling interest (108,770 ) — Distributions to noncontrolling interests (38,086 ) (32,997 ) Proceeds and contributions from noncontrolling interests 4,044 26,205 Payment of deferred and contingent consideration in business combination (6,390 ) (5,222 ) Purchase of capped calls related to issuance of convertible notes (256,250 ) — Dividends paid (252,811 ) (260,431 ) Net cash (used in) provided by financing activities (2,766,858 ) 2,141,121 Effect of exchange rate changes on cash, cash equivalents and restricted cash (112,834 ) 12,519 Increase in cash, cash equivalents and restricted cash 479,100 41,269 Cash, cash equivalents and restricted cash, beginning of the period 2,256,875 2,215,606 Cash, cash equivalents and restricted cash, end of the period $ 2,735,975 $ 2,256,875 SCHEDULE 6 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) Three Months Ended December 31, 2024 GAAP Net Revenue Adjustments(1) Earnings Adjustments(2) Income Taxes on Adjustments(3) Non-GAAP Revenues $ 2,515,386 $ (226,371 ) $ — $ — $ 2,289,015 Operating income $ 833,148 $ 327 $ 200,573 $ — $ 1,034,048 Net income attributable to Global Payments $ 567,173 $ 327 $ 203,824 $ (29,035 ) $ 742,290 Diluted earnings per share attributable to Global Payments $ 2.25 $ 2.95 Diluted weighted average shares outstanding 251,766 251,766 Three Months Ended December 31, 2023 GAAP Net Revenue Adjustments(1) Earnings Adjustments(2) Income Taxes on Adjustments(3) Non-GAAP Revenues $ 2,433,812 $ (247,572 ) $ — $ — $ 2,186,240 Operating income $ 498,715 $ 510 $ 479,281 $ — $ 978,506 Net income attributable to Global Payments $ 361,296 $ 510 $ 478,613 $ (148,213 ) $ 692,206 Diluted earnings per share attributable to Global Payments $ 1.38 $ 2.65 Diluted weighted average shares outstanding 261,102 261,102 ---------------------------------------------------------------------------------- (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended December 31, 2024 and 2023, net revenue adjustments also included $0.3 million and $0.5 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. (2) For the three months ended December 31, 2024, earnings adjustments to operating income included $332.8 million in cost of service (COS) and $140.9 million in selling, general and administrative expenses (SG&A). Adjustments to COS included amortization of acquired intangibles of $332.6 million and other items of $0.2 million. Adjustments to SG&A included share-based compensation expense of $29.9 million, acquisition, integration and separation expenses of $31.2 million, employee termination benefits of $4.3 million, facilities exit charges of $6.8 million, charges for business transformation activities of $39.9 million, non-cash asset write-offs of $18.2 million for discontinued initiatives, and other items of $10.6 million. For the three months ended December 31, 2024, earnings adjustments to operating income also included the elimination of a $273.1 million gain on business dispositions. For the three months ended December 31, 2023, earnings adjustments to operating income included $332.5 million in COS and $149.2 million in SG&A. Adjustments to COS consisted of amortization of acquired intangibles of $332.5 million. Adjustments to SG&A included share-based compensation expense of $35.7 million, acquisition, integration and separation expenses of $97.5 million, facilities exit charges of $3.5 million, employee termination benefits of $7.9 million, and other items of $4.6 million. Earnings adjustments to operating income also included a $2.4 million gain on business dispositions. (3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax effect of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. In addition, for the three months ended December 31, 2023, income taxes on adjustments include the removal of tax benefits related to corporate restructuring. See "Non-GAAP Financial Measures" discussion on Schedule 10. Note: Amounts may not sum due to rounding. SCHEDULE 7 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands, except per share data) Year Ended December 31, 2024 GAAP Net Revenue Adjustments(1) Earnings Adjustments(2) Income Taxes on Adjustments(3) Non-GAAP Revenues $ 10,105,894 $ (951,887 ) $ — $ — $ 9,154,007 Operating income $ 2,333,605 $ 2,205 $ 1,784,757 $ — $ 4,120,567 Net income attributable to Global Payments $ 1,570,365 $ 2,205 $ 1,763,230 $ (393,240 ) $ 2,942,560 Diluted earnings per share attributable to Global Payments $ 6.16 $ 11.55 Diluted weighted average shares outstanding 254,845 254,845 Year Ended December 31, 2023 GAAP Net Revenue Adjustments(1) Earnings Adjustments(2) Income Taxes on Adjustments(3) Non-GAAP Revenues $ 9,654,419 $ (983,454 ) $ — $ — $ 8,670,965 Operating income $ 1,716,386 $ (17,590 ) $ 2,168,728 $ — $ 3,867,524 Net income attributable to Global Payments $ 986,233 $ (17,590 ) $ 2,186,359 $ (427,595 ) $ 2,727,407 Diluted earnings per share attributable to Global Payments $ 3.77 $ 10.42 Diluted weighted average shares outstanding 261,698 261,698 ---------------------------------------------------------------------------------- (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the years ended December 31, 2024 and 2023, net revenue adjustments also included $2.2 million and $2.1 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. Adjustments for the year ended December 31, 2023, also included a $19.7 million adjustment to exclude revenues that were associated with certain excluded expenses of our consumer business, which was disposed in April 2023. (2) For the year ended December 31, 2024, earnings adjustments to operating income included $1,369.1 million in COS and $688.8 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $1,369.3 million and other items of $(0.2) million. Adjustments to SG&A included share-based compensation expense of $164.2 million, acquisition, integration and separation expenses of $211.6 million, employee termination benefits of $80.1 million, facilities exit charges of $13.4 million, charges for business transformation activities of $99.1 million, non-cash charges of $55.8 million for technology assets that will no longer be utilized under a revised technology architecture development strategy, non-cash asset write-offs of $18.2 million for discontinued initiatives, modernization charges of $22.9 million, and other items of $23.5 million. For the year ended December 31, 2024, earnings adjustments to operating income also included the elimination of a $273.1 million gain on business dispositions. For the year ended December 31, 2023, earnings adjustments to operating income included $1,321.2 million in COS and $710.8 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $1,318.5 million and other items of $2.7 million. Adjustments to SG&A included share-based compensation expense of $209.0 million, acquisition, integration and separation expenses of $433.9 million, facilities exit charges of $18.5 million, employee termination benefits of $39.4 million, and other items of $10.0 million. Earnings adjustments to operating income also included a $136.7 million loss on business dispositions. Acquisition, integration and separation expenses for the year ended December 31, 2023 included $93.6 million related to our disposed consumer business. These incremental expenses, which include card and marketing expenses, compensation and benefit expenses, and other expenses, were incurred as a result of contractual obligations with the purchasers of the consumer business and do not reflect the manner in which the company would have operated the business and would not have otherwise been incurred absent the transaction. Earnings adjustments to net income also included an allowance for current expected credit losses (CECL) of $15.2 million within interest and other expense related to the seller financing issued in connection with the business dispositions. (3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax effect of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. In addition, for the year ended December 31, 2023, income taxes on adjustments include the removal of tax expense related to business dispositions and removal of tax benefits related to corporate restructuring. See "Non-GAAP Financial Measures" discussion on Schedule 10. Note: Amounts may not sum due to rounding. SCHEDULE 8 RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Three Months Ended December 31, 2024 GAAP Net Revenue Adjustments (1) Earnings Adjustments(2) Non-GAAP Revenues: Merchant Solutions $ 1,885,923 $ (122,910 ) $ — $ 1,763,013 Issuer Solutions 646,284 (104,185 ) — 542,099 Intersegment Elimination (16,821 ) 723 — (16,098 ) $ 2,515,386 $ (226,371 ) $ — $ 2,289,015 Operating income: Merchant Solutions $ 652,406 $ (84 ) $ 199,709 $ 852,031 Issuer Solutions 119,925 411 134,104 254,440 Corporate (212,317 ) — 139,894 (72,423 ) Net gain on business dispositions 273,134 — (273,134 ) — $ 833,148 $ 327 $ 200,573 $ 1,034,048 Three Months Ended December 31, 2023 GAAP Net Revenue Adjustments (1) Earnings Adjustments(2) Non-GAAP Revenues: Merchant Solutions $ 1,819,885 $ (149,403 ) $ — $ 1,670,482 Issuer Solutions 629,674 (99,025 ) — 530,649 Intersegment Elimination (15,747 ) 856 — (14,891 ) $ 2,433,812 $ (247,572 ) $ — $ 2,186,240 Operating income: Merchant Solutions $ 596,633 $ — $ 200,713 $ 797,346 Issuer Solutions 117,419 510 133,074 251,003 Corporate (217,688 ) — 147,845 (69,843 ) Net gain on business dispositions 2,351 — (2,351 ) — $ 498,715 $ 510 $ 479,281 $ 978,506 ---------------------------------------------------------------------------------- (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended December 31, 2024 and 2023, net revenue adjustments also included $0.3 million and $0.5 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. (2) For the three months ended December 31, 2024, earnings adjustments to operating income included $332.8 million in COS and $140.9 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $332.6 million and other items of $0.2 million. Adjustments to SG&A included share-based compensation expense of $29.9 million, acquisition, integration and separation expenses of $31.2 million, employee termination benefits of $4.3 million, facilities exit charges of $6.8 million, charges for business transformation activities of $39.9 million, non-cash asset write-offs of $18.2 million for discontinued initiatives, and other items of $10.6 million. For the three months ended December 31, 2024, earnings adjustments to operating income also included the elimination of a $273.1 million gain on business dispositions. For the three months ended December 31, 2023, earnings adjustments to operating income included $332.5 million in COS and $149.2 million in SG&A. Adjustments to COS consisted of amortization of acquired intangibles of $332.5 million. Adjustments to SG&A included share-based compensation expense of $35.7 million, acquisition, integration and separation expenses of $97.5 million, facilities exit charges of $3.5 million, employee termination benefits of $7.9 million, and other items of $4.6 million. Earnings adjustments to operating income also included a $2.4 million gain on business dispositions. (3) See "Non-GAAP Financial Measures" discussion on Schedule 10. Note: Amounts may not sum due to rounding. SCHEDULE 9 RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES (In thousands) Year Ended December 31, 2024 GAAP Net Revenue Adjustments (1) Earnings Adjustments(2) Non-GAAP Revenues: Merchant Solutions $ 7,688,703 $ (585,365 ) $ — $ 7,103,338 Issuer Solutions 2,483,657 (370,415 ) — 2,113,242 Intersegment Elimination (66,466 ) 3,893 — (62,573 ) $ 10,105,894 $ (951,887 ) $ — $ 9,154,007 Operating income (loss): Merchant Solutions $ 2,612,915 $ 476 $ 835,298 $ 3,448,689 Issuer Solutions 442,442 1,728 538,678 982,849 Corporate (994,886 ) — 683,915 (310,971 ) Net gain on business dispositions 273,134 — (273,134 ) — $ 2,333,605 $ 2,205 $ 1,784,757 $ 4,120,567 Year Ended December 31, 2023 GAAP Net Revenue Adjustments(1) Earnings Adjustments(2) Non-GAAP Consumer Business (3) Supplemental Non-GAAP (3) Revenues: Merchant Solutions $ 7,151,793 $ (614,827 ) $ — $ 6,536,966 $ — $ 6,536,966 Issuer Solutions 2,398,870 (352,987 ) — 2,045,883 — 2,045,883 Consumer Solutions 182,740 (19,713 ) — 163,027 (163,027 ) — Intersegment Elimination (78,984 ) 4,073 — (74,911 ) 17,585 (57,326 ) $ 9,654,419 $ (983,454 ) $ — $ 8,670,965 $ (145,442 ) $ 8,525,523 Operating income (loss): Merchant Solutions $ 2,345,255 $ 23 $ 803,262 $ 3,148,540 $ — $ 3,148,540 Issuer Solutions 409,807 2,100 536,892 948,799 — 948,799 Consumer Solutions (3,908 ) (19,713 ) 96,851 73,230 (73,230 ) — Corporate (898,024 ) — 594,979 (303,045 ) — (303,045 ) Net loss on business dispositions (136,744 ) — 136,744 — — — $ 1,716,386 $ (17,590 ) $ 2,168,728 $ 3,867,524 $ (73,230 ) $ 3,794,294 ---------------------------------------------------------------------------------- (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the years ended December 31, 2024 and 2023, net revenue adjustments also included $2.2 million and $2.1 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. Adjustments for the year ended December 31, 2023, also included a $19.7 million adjustment to exclude revenues that were associated with certain excluded expenses of our consumer business, which was disposed in April 2023. (2) For the year ended December 31, 2024, earnings adjustments to operating income included $1,369.1 million in COS and $688.8 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $1,369.3 million and other items of $(0.2) million. Adjustments to SG&A included share-based compensation expense of $164.2 million, acquisition, integration and separation expenses of $211.6 million, employee termination benefits of $80.1 million, facilities exit charges of $13.4 million, charges for business transformation activities of $99.1 million, non-cash charges of $55.8 million for technology assets that will no longer be utilized under a revised technology architecture development strategy, non-cash asset write-offs of $18.2 million for discontinued initiatives, modernization charges of $22.9 million, and other items of $23.5 million. For the year ended December 31, 2024, earnings adjustments to operating income also included the elimination of a $273.1 million gain on business dispositions. For the year ended December 31, 2023, earnings adjustments to operating income included $1,321.2 million in COS and $710.8 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $1,318.5 million and other items of $2.7 million. Adjustments to SG&A included share-based compensation expense of $209.0 million, acquisition, integration and separation expenses of $433.9 million, facilities exit charges of $18.5 million, employee termination benefits of $39.4 million, and other items of $10.0 million. Earnings adjustments to operating income also included a $136.7 million loss on business dispositions. Acquisition, integration and separation expenses for the year ended December 31, 2023 included $93.6 million related to our disposed consumer business. These incremental expenses, which include card and marketing expenses, compensation and benefit expenses, and other expenses, were incurred as a result of contractual obligations with the purchasers of the consumer business and do not reflect the manner in which the company would have operated the business and would not have otherwise been incurred absent the transaction. Earnings adjustments to net income also included an allowance for CECL of $15.2 million within interest and other expense related to the seller financing issued in connection with the business dispositions. (3) The supplemental non-GAAP information excludes the results of the consumer business that was disposed in April 2023. See "Non-GAAP Financial Measures" discussion on Schedule 10. Note: Amounts may not sum due to rounding. SCHEDULE 10 OUTLOOK SUMMARY (UNAUDITED) GLOBAL PAYMENTS INC. AND SUBSIDIARIES 2025 Growth Revenues: GAAP revenues 0% to 1% Adjustments(1) 0% FX impact ~2% Constant currency (CC) adj net revenue 2% to 3% Dispositions ~3% CC adjusted net revenue excluding dispositions 5% to 6% Earnings Per Share: GAAP diluted EPS 4% to 5% Adjustments(2) ~4% FX impact ~2% Constant currency adjusted EPS 10% to 11% (1) Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefit to the company. Amounts also included adjustments to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses. (2) Adjustments to 2024 GAAP diluted EPS included the removal of 1) software-related contract liability adjustments described above of $0.01, 2) acquisition related amortization expense of $4.13, 3) share-based compensation expense of $0.50, 4) acquisition, integration, and separation expense of $0.64, 5) charges for business transformation activities of $0.30, 6) employee termination benefits of $0.24, 7) non-cash charges for technology assets that will no longer be utilized under a revised technology architecture development strategy of $0.17, 8) modernization charges of $0.07, 9) non-cash asset write-offs for discontinued initiatives of $0.06, 10) facilities exit charges of $0.04, 11) gain/loss on business dispositions of $(0.83), 12) other income and expense of $(0.05), 13) discrete tax items of $0.06, 14) other items of $0.04, 15) the effect of noncontrolling interests and income taxes, as applicable. NON-GAAP FINANCIAL MEASURES Global Payments supplements revenues, operating income, operating margin and net income, and earnings per share (EPS) determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this document to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. The constant currency growth measures adjust for the impact of exchange rates and are calculated using average exchange rates during the comparable period in the prior year. Management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. Adjusted net revenue, adjusted operating income, adjusted operating margin, adjusted EPS should be considered in addition to, and not as substitutes for, revenues, operating income, EPS and net operating cash flows determined in accordance with GAAP. The non-GAAP financial measures reflect management's judgment of particular items, and may not be comparable to similarly titled measures reported by other companies. Adjusted net revenue excludes gross-up related payments associated with certain lines of business to reflect economic benefits to the company. On a GAAP basis, these payments are presented gross in both revenues and operating expenses. Management believes adjusted net revenue more closely reflects the economic benefits to the company's core business and allows for better comparisons with industry peers. Adjusted operating income, adjusted net income and adjusted EPS exclude acquisition-related amortization expense, share-based compensation expense, acquisition, integration and separation expense, gains or losses on business dispositions, business transformation activities, and certain other items specific to each reporting period as more fully described in the accompanying reconciliations in Schedules 6 and 7. The tax rate used in determining the income tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue. The supplemental non-GAAP information excludes the results of the consumer business that was disposed in April 2023. Management believes that providing such supplemental financial information should enhance shareholders’ ability to evaluate how the business will be managed going forward.

Global Payments Reports Fourth Quarter and Full Year 2024 Results

FAQ

Why Bullish?

How important is it?

Why Long Term?

Related Companies

Related News