Total Revenue

+5% " "

Higher transaction volumes and continued Merchant Solutions expansion drove revenue gains. The acquisition of EVO in prior periods also contributed to growth, but was partially offset by the divestiture of the consumer business and modest headwinds from foreign currency. " "

Merchant Solutions

+6% " "

Increased demand for embedded payments and software fueled segment growth. The prior-year acquisition of EVO strengthened the segment, while ongoing ISV integrations and expanded direct distribution helped drive higher transaction volumes. " "

Europe

+8% "

Europe continued mid-single-digit organic growth, aided by strength in markets like Poland and Greece. Last year’s partial impact from newly integrated businesses and stabilizing U.K. trends contributed to this improvement, despite macro and FX fluctuations. "

Operating Income

-15% " "

Although revenues increased, the absence of last year’s gain on a business disposition and higher amortization of acquired intangibles weighed on operating income. Continued investment in technology and the comparison to prior-year one-time benefits also decreased YoY operating income. " "

Net Income

-9% " "

Net income growth was muted by higher non-operating expenses and no repeat of prior-year gains from dispositions. While underlying business performance remained solid, incremental interest costs and acquisition-related amortization limited net income expansion compared to the previous period. " "

SG&A

+18% " "

Increased variable selling costs tracked revenue growth, and ongoing integration expenses from prior acquisitions (including EVO) also contributed. However, lower share-based compensation expense partially offset the increase, reflecting some optimization in workforce and compensation management compared to last year. " "

Interest Expense

-12% " "

A decrease in average borrowing rates and no repeat of the prior-year noncash charge for credit losses on seller financing notes reduced interest expense compared to the previous period. This was partly offset by elevated debt levels from 2023 acquisitions. " "

Adjusted net revenue growth

FY 2024

5% to 6% "

6% to 7% "

raised

Merchant business adjusted net revenue

FY 2024

9%+ "

9%+ "

no change

Merchant business adjusted operating margin

FY 2024

up to 30 bps "

up to 40 bps "

raised

Issuer business adjusted operating margin

FY 2024

up to 50 bps "

up to 30 bps "

lowered

Net interest expense

FY 2024

$500 million "

$500 million "

no change

Adjusted effective tax rate

FY 2024

19% "

19% "

no change

Adjusted EPS

FY 2024

$11.54 to $11.70 "

$11.54 to $11.70 "

no change

Issuer Solutions adjusted net revenue growth

FY 2024

no prior guidance

4% "

no prior guidance

Merchant margin expansion and profitability

Consistently discussed margin expansion each quarter with incremental basis point improvements (Q2, Q1, Q4) " " "

Expanded by 90 bps, reached 50%, raised guidance to 40 bps (Q3 2024) " " "

Recurring topic with continued positive sentiment

Macroeconomic headwinds affecting SMB volume growth

Mentioned in Q2 (6% growth before moderating), no direct mention in Q1 or Q4 " "

SMB volume grew 5%, down from 6% in Q2, attributed to macro headwinds (Q3 2024) " "

Recurring in Q2 and Q3, showing a softening sentiment

Growth in integrated payments, point-of-sale, and software solutions

Mentioned each quarter with strong momentum (Q2, Q1, Q4) " " "

High single-digit integrated payments growth, low double-digit POS growth, strong software bookings (Q3 2024) "

Consistently positive and repeatedly emphasized

Issuer Solutions pipeline and modernization

Highlighted robust pipeline and cloud rollout progress each quarter (Q2, Q1, Q4) " " "

65 million accounts in the pipeline, expanding cloud conversions, on track for modernization (Q3 2024) " " "

Ongoing progress with stable positive outlook

Integration synergies and challenges from the EVO Payments acquisition

Earlier calls noted synergy realization pacing and initial margin pressure (Q2, Q1, Q4) " " "

Synergies flowing in, driving Merchant margin upside; no new challenges mentioned (Q3 2024) "

Recurring, sentiment shifted to more stable in Q3

Transformation initiatives projected for 2025 and beyond

Discussed streamlining plans each quarter, with heavier impact after 2024 (Q2, Q1, Q4) " " "

600 initiatives expected to yield results in 2025, positioning for 2026-27 (Q3 2024) " "

Recurring focus, details became more concrete

Changing sentiment on margins: from strong expansion to more modest outlook

Similar shift toward tempered margin outlook in previous quarters (Q2, Q1, Q4) " " "

Issuer Solutions margin declines; Merchant margin guidance moderated to 50 bps (Q3 2024) " " "

Recurring, sentiment consistently more cautious

Strategic portfolio review and potential restructuring costs

Ongoing review mentioned, with possible divestitures (Q2, Q1, Q4) " " "

Announced sale of AdvancedMD, expects one-time charges and $500M run-rate benefit (Q3 2024) " "

Recurring, gaining specificity in Q3

Broad-based slowdown in commercial spending

Modest deceleration noted in Q2; no mention in Q1 or Q4 "

Observed slowdown in commercial card volumes and B2B flows (Q3 2024) "

Topic introduced in Q2, continues in Q3

Strong free cash flow conversion and financial performance

Each quarter featured high FCF conversion and steady earnings growth (Q2, Q1, Q4) " " "

92% FCF conversion; adjusted revenue up; solid EPS growth (Q3 2024) " " "

Recurring with consistently strong results