Adjusted Net Revenue: Growth of 7%, reaching $2.18 billion.
Adjusted Operating Margin: Increased by 40 basis points to 43.5%.
Adjusted Earnings Per Share (EPS): Growth of 8% to $2.59; mid-teens growth excluding the impact of divestitures.
Merchant Solutions Segment: Achieved adjusted net revenue of $1.68 billion, reflecting growth of 16% (approximately 8% excluding impacts of EVO and dispositions).
Issuer Solutions Segment: Produced adjusted net revenue of $516 million, reflecting growth of 5%.
Adjusted Free Cash Flow: Approximately $509 million, representing an ~80% conversion rate of adjusted net income to adjusted free cash flow.
Future Guidance
Adjusted Net Revenue: Expectation ranges from $9.17 billion to $9.30 billion for the year, reflecting 6% to 7% growth over 2023.
Adjusted Operating Margin: Anticipated expansion up to 50 basis points for 2024.
Adjusted EPS: Expected to be in the range of $11.54 to $11.70, indicating 11% to 12% growth over 2023 (14-plus percent growth excluding dispositions).
Capital Expenditures: Estimated to be around $670 million for 2024, approximately 7% of revenue.
Net Interest Expense: Forecasted to be about $500 million for the year.
Adjusted Effective Tax Rate: Expected to be approximately 19%.
Trends, Market Conditions, Sentiment
Software-Led Strategy Driving Growth: Strong execution across businesses, especially in software solutions, is fueling growth amid uncertain macroeconomic conditions.
Market Demand for Embedded Payment Solutions: Acceleration in market demand noted, with substantial growth in partnered ISV and point-of-sale businesses.
Software and Payments Integration: Ongoing focus on integrating software with payment solutions to drive differentiation and growth.
International Expansion: Positive international momentum, especially in markets like Spain, Central Europe, Poland, Greece, and Latin America, with detailed plans for further expansion.
Impact of EVO Acquisition: The inclusion of EVO has impacted margins but also provided ample cross-sell opportunities and synergies.
Foreign Currency Headwinds: Noted a potential impact from the strengthening dollar against significant currencies.
Optimism Amid Uncertainty: Despite monitoring uncertain and tentative macroeconomic conditions, there’s a tone of optimism regarding the company’s positioning and outlook for the year.
Notable Quotes
”We are pleased with our first quarter results, which were ahead of our expectations as we saw strong execution across our businesses and resilient consumer trends despite the uncertain macroeconomic environment."
"Our ability to meet the specific needs of our partners with unrivaled distribution, tailored operating models, a comprehensive suite of products and capabilities and best-in-class service and support differentiates us in the marketplace."
"We are delighted with the progress we are making to accelerate B2B growth as we continue to unify our offerings and refine our strategy in this space."
"We are pleased to have repurchased 6 million shares of roughly $800 million in the first quarter."
"Our balance sheet remains healthy, and we have approximately $3.4 billion of available liquidity.”
