| Metric [Unit: Thousand USD] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------------|---------|---------|---------|---------|---------|---------|---------|
| Americas                    | **1,935,627**  **[0001123360-23-000019_gpn-20230331.htm:10]**  | **1,984,025**  **[0001123360-23-000028_gpn-20230630.htm:14]**  | **1,984,601**  **[0001123360-23-000039_gpn-20230930.htm:14]**  | N/A     | **1,975,123**  **[0001123360-24-000014_gpn-20240331.htm:12]**  | **2,072,600**  **[0001123360-24-000025_gpn-20240630.htm:15]**  | **2,071,920**  **[0001123360-24-000036_gpn-20240930.htm:15]**  |
| Europe                      | **293,202**  **[0001123360-23-000019_gpn-20230331.htm:10]**  | **404,206**  **[0001123360-23-000028_gpn-20230630.htm:14]**  | **427,446**  **[0001123360-23-000039_gpn-20230930.htm:14]**  | N/A     | **384,753**  **[0001123360-24-000014_gpn-20240331.htm:12]**  | **434,400**  **[0001123360-24-000025_gpn-20240630.htm:15]**  | **462,953**  **[0001123360-24-000036_gpn-20240930.htm:15]**  |
| Asia Pacific                | **63,618**  **[0001123360-23-000019_gpn-20230331.htm:10]**  | **64,238**  **[0001123360-23-000028_gpn-20230630.htm:14]**  | **63,644**  **[0001123360-23-000039_gpn-20230930.htm:14]**  | N/A     | **60,311**  **[0001123360-24-000014_gpn-20240331.htm:12]**  | **61,800**  **[0001123360-24-000025_gpn-20240630.htm:15]**  | **66,679**  **[0001123360-24-000036_gpn-20240930.htm:15]**  |

eacc5270cde5dee19499ec2fe6d9ac614d3eda5664de441b5ff9701670d96da6

Adjustments for Non-Cash Items [USD]

Stock-Based Compensation [USD]

Changes in Working Capital [USD]

Capital Expenditures (CapEx) [USD]

Proceeds from Debt [USD]

Repayments of Debt [USD]

Share Repurchases [USD]

Dividend Payments [USD]

Net Change in Cash [USD]

c0a57f250998cfad04ea17962e717416df4b2cccfba01ad6fa48539f664c1985

80116b34c60c4227070b5402bc62d311341047bb2a319842e589a5763a4ef215

| Quarter     | Merchant Solutions (USD million) | Issuer Solutions (USD million) | Consumer Solutions (USD million) | Intersegment Eliminations (USD million) | Total Revenue (USD million) |
|-------------|----------------------------------|--------------------------------|----------------------------------|-----------------------------------------|-----------------------------|
| Q3 2024     | **1,997.7**  **[0001123360-24-000036_gpn-20240930.htm:39]**                 | **621.1**  **[0001123360-24-000036_gpn-20240930.htm:39]**                 | N/A                              | **(17.2)**  **[0001123360-24-000036_gpn-20240930.htm:39]**                         | **2,601.6**  **[0001123360-24-000036_gpn-20240930.htm:39]**            |
| Q2 2024     | **1,971.0**  **[0001123360-24-000025_gpn-20240630.htm:35]**                 | **613.5**  **[0001123360-24-000025_gpn-20240630.htm:35]**                 | N/A                              | N/A                                     | **2,568.8**  **[0001123360-24-000025_gpn-20240630.htm:35]**            |
| Q1 2024     | **1,834.1**  **[0001123360-24-000014_gpn-20240331.htm:25]**                 | **602.7**  **[0001123360-24-000014_gpn-20240331.htm:25]**                 | N/A                              | N/A                                     | **2,420.2**  **[0001123360-24-000014_gpn-20240331.htm:25]**            |
| Q4 2023     | **1,670.0**  **[GPN_3373225_5]**                 | **531.0**  **[GPN_3373225_5]**                 | N/A                              | N/A                                     | **2,190.0**  **[GPN_3373225_5]**            |
| Q3 2023     | **1,884.0**  **[0001123360-23-000039_gpn-20230930.htm:34]**                 | **607.8**  **[0001123360-23-000039_gpn-20230930.htm:34]**                 | N/A                              | N/A                                     | **2,475.7**  **[0001123360-23-000039_gpn-20230930.htm:34]**            |
| Q2 2023     | **1,842.3**  **[0001123360-23-000028_gpn-20230630.htm:33]**                 | **590.4**  **[0001123360-23-000028_gpn-20230630.htm:33]**                 | **39.0**  **[0001123360-23-000028_gpn-20230630.htm:33]**                    | N/A                                     | **2,452.5**  **[0001123360-23-000028_gpn-20230630.htm:33]**            |
| Q1 2023     | **1,605.6**  **[0001123360-23-000019_gpn-20230331.htm:27]**                 | **570.9**  **[0001123360-23-000019_gpn-20230331.htm:27]**                 | **143.7**  **[0001123360-23-000019_gpn-20230331.htm:27]**                   | N/A                                     | **2,292.4**  **[0001123360-23-000019_gpn-20230331.htm:27]**            |
| Q4 2022     | **1,410.0**  **[GPN_3227722_4]**                 | **501.0**  **[GPN_3227722_4]**                 | N/A                              | N/A                                     | N/A                         |

54a29ebaaa007ec9d7d563c461e2134a8d5984ac91fee6fcc9ccea72bcaeea79

Global Payments Inc. (GPN) is a leading payments technology company that specializes in providing innovative solutions for both merchants and issuers. The company operates primarily through two segments: Merchant Solutions and Issuer Solutions, with a strong emphasis on integrated payments and software-driven services **[GPN_3375582_1]** **[GPN_3402005_23]** **[0001123360-24-000004_gpn-20231231.htm:4]**. Global Payments also has a significant presence in vertical market software businesses, serving industries such as education and healthcare, and is actively expanding its B2B payments business **[GPN_3375582_1]** **[GPN_3381813_2]**.

1. **Merchant Solutions** - Focuses on integrated payments, B2B, and faster-growth markets, with software playing a central role. Includes point-of-sale (POS) and software businesses, integrated and embedded payments, and core payments channels.
   - **Integrated and Embedded Payments** - Represents nearly half of the merchant revenue, providing seamless payment solutions within software applications.
2. **Issuer Solutions** - Provides issuer processing technology and functionality, serving financial institutions with services such as credit card processing. Holds a strong market position in scheme-based credit cards in the U.S., Canada, U.K., and Ireland, and is expanding into Latin America and Asia Pacific **[GPN_3375582_1]** **[GPN_3402005_23]**.
3. **Vertical Market Software** - Operates across seven markets, including education, property management, healthcare, and quick-service restaurants, generating significant revenue and growing annually **[GPN_3381813_2]**.
4. **B2B Payments** - Spans both Merchant and Issuer Solutions segments, forming a core part of the company's strategic focus **[GPN_3375582_1]**.

890afb3f293f5a28693d0e13d968bc693a44d0040713a3241282481ebfdfea25

1. Given the **unstable macroeconomic environment**, how is Global Payments managing its exposure to **discretionary versus nondiscretionary merchant volumes**, and what proportion of your portfolio is exposed to **credit versus debit transactions**?  **[GPN_3396965_9]** 

2. In your pursuit of **efficiencies and streamlining**, can you provide specifics on any **incremental actions** being taken in the **second half of the year**, how they will contribute to **margin improvement targets** for this year, and the expected **spillover effects into 2025**?  **[GPN_3396965_14]** 

3. With the recent momentum in **new partner signings in the ISV channel**, how have **revenue share agreements and economics** evolved compared to historical trends, and are you experiencing **increased competitive pressures** affecting these arrangements?  **[GPN_3396965_19]** 

4. **Merger and integration costs** are at their **lowest in five years this quarter**; do you expect these costs to continue decreasing, and when do you anticipate eliminating **add-backs** entirely from your adjusted earnings?  **[GPN_3396965_24]** 

5. Given the improvement in **free cash flow** and your plans for **debt reduction**, do you intend to maintain the current level of **share repurchases** in the second half, and how are you balancing this against other potential uses of cash, such as **M&A opportunities**?  **[GPN_3396965_22]** 

989dd429d0bae4d4117338f12633fa89dc58d8aaec4e32d6433c4144b3de20e1

Americas

North America

- United States

- Canada

Europe

Asia Pacific

Asia-Pacific

International

TSYS

Total Revenue

bb68e4e5e6c526bf3462bf83b844eca0e4b58e8058e06299a15436576358f3e1

a335a260fa218dfa86e5a7323cccdf07ff6e4929dadb7286033ef07ca6f6c5bf

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted Net Revenue Growth**: 6% to 7%, with adjusted net revenue between $9.17 billion to $9.30 billion  **[GPN_3396965_6]** .
  2. **Adjusted Operating Margin**: Expansion by up to 50 basis points  **[GPN_3396965_6]** .
  3. **Merchant Solutions**: Adjusted net revenue growth of 9-plus percent; up to 30 basis points of margin expansion  **[GPN_3396965_6]** .
  4. **Issuer Solutions**: Adjusted net revenue growth of 5% to 6%; up to 50 basis points of margin expansion  **[GPN_3396965_7]** .
  5. **Adjusted EPS**: $11.54 to $11.70, growth of 11% to 12%  **[GPN_3396965_7]** .
  6. **Net Interest Expense**: $500 million  **[GPN_3396965_7]** .
  7. **Adjusted Effective Tax Rate**: Approximately 19%  **[GPN_3396965_7]** .
  8. **Capital Expenditures**: $670 million, or 7% of revenue  **[GPN_3396965_6]** .
  9. **Leverage Position**: Low 3s by year-end  **[GPN_3396965_6]** .
  10. **Free Cash Flow Conversion**: Approximately 100% of adjusted net income  **[GPN_3396965_16]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Merchant Business**: Adjusted net revenue growth of 9-plus percent; up to 30 basis points of margin expansion  **[GPN_3381813_7]** .
  2. **Issuer Solutions**: Adjusted net revenue growth of 5% to 6%; up to 50 basis points of margin expansion  **[GPN_3381813_7]** .
  3. **Overall Financials**: Adjusted EPS of $11.54 to $11.70; adjusted net revenue of $9.17 billion to $9.30 billion; operating margin expansion up to 50 basis points  **[GPN_3381813_7]** **[GPN_3381813_6]** .
  4. **Foreign Currency Impact**: $20 million headwind in Q2  **[GPN_3381813_6]** .
  5. **Capital Expenditures**: $670 million, or 7% of revenue  **[GPN_3381813_6]** .
  6. **Leverage and Liquidity**: Leverage position of 3.5x; $3.4 billion of available liquidity  **[GPN_3381813_6]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Growth**: Adjusted net revenue of $9.17 billion to $9.30 billion, growth of 6% to 7%  **[GPN_3373225_6]** .
  2. **Merchant Business**: Adjusted net revenue growth of 9-plus percent  **[GPN_3373225_6]** .
  3. **Issuer Solutions**: Adjusted net revenue growth of 5% to 6%  **[GPN_3373225_6]** .
  4. **Operating Margin**: Expansion up to 50 basis points; Merchant up to 30 basis points; Issuer up to 50 basis points  **[GPN_3373225_6]** .
  5. **EPS**: Adjusted EPS of $11.54 to $11.70, growth of 11% to 12%  **[GPN_3373225_7]** .
  6. **Free Cash Flow**: 100% conversion rate  **[GPN_3373225_7]** .
  7. **Capital Expenditures**: $670 million, or 7% of revenue  **[GPN_3373225_7]** .
  8. **Net Interest Expense**: Slightly above $500 million  **[GPN_3373225_7]** .
  9. **Effective Tax Rate**: Approximately 19%  **[GPN_3373225_7]** .
  10. **Leverage**: Target of 3x levered  **[GPN_3373225_7]** .
  11. **Share Repurchase**: Authorization increased to $2 billion  **[GPN_3373225_7]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information from the Q3 2024 earnings call for Global Payments Inc. (GPN). Therefore, I cannot provide the guidance metrics from that specific earnings call. The available documents only cover up to the Q2 2024 earnings call.

833a950a0f8e255c4f010b1b561b8a3a14cb30966ec82353395f6f8896c0b4c4

0623bae3696c81c06a9316fd439b978098bdefd7b5d103c0ddd87f978e81808a

- **Fiserv, Inc.** - Competes in the Merchant Solutions and Issuer Solutions segments  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Worldpay, LLC** - Competes in the Merchant Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Chase Paymentech Solutions, LLC** - Competes in the Merchant Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Elavon, Inc.** - A subsidiary of U.S. Bancorp, competes in the Merchant Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Bank of America Merchant Services** - Competes in the Merchant Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Wells Fargo Merchant Services** - Competes in the Merchant Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Toast, Inc.** - Competes in the Merchant Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Stripe, Inc.** - Competes in the Merchant Solutions and Issuer Solutions segments  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Shopify Inc.** - Competes in the Merchant Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Block Inc.** - Competes in the Merchant Solutions and Issuer Solutions segments  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Worldline** - Competes internationally in the Merchant Solutions and Issuer Solutions segments  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Nexi** - Competes internationally in the Merchant Solutions and Issuer Solutions segments  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Adyen** - Competes internationally in the Merchant Solutions and Issuer Solutions segments  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **FIS** - Competes in the Issuer Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Marqeta** - Competes in the Issuer Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **i2c** - Competes in the Issuer Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Bill.com** - Competes in the Issuer Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **AvidExchange** - Competes in the Issuer Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Billtrust** - Competes in the Issuer Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .
- **Zeta** - Competes in the Issuer Solutions segment  **[0001123360-24-000004_gpn-20231231.htm:11]** .

535f023fe964e4ea747a8cdf4838430af6e8c7ba347be917541e2827506db8a0

4a39d0b4bfa6af6a4d4f7f1b0b9bbaa9ff7d80c6d8aa74e049e24bd2ec0d788a

| Name               | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Cameron M. Bready  | President and Chief Executive Officer                                    | June 2023        | Cameron M. Bready is the **President and Chief Executive Officer** of Global Payments Inc. He assumed this role in **June 2023**. Previously, he was the President and COO from 2019 to 2023  **[0001104659-24-034148_tm2331241d3_def14a.htm:28]** **[0001104659-24-034148_tm2331241d3_def14a.htm:1]** .                                          |
| Joshua J. Whipple  | Senior Executive Vice President and Chief Financial Officer              | July 2022        | Joshua J. Whipple is the **Senior Executive Vice President and Chief Financial Officer** at Global Payments Inc. since **July 2022**. He was previously the Chief Strategy and Enterprise Risk Officer from 2015 to 2022  **[0001104659-24-034148_tm2331241d3_def14a.htm:63]** **[0001193125-23-072001_d395225ddef14a.htm:55]** .               |
| David L. Green     | Senior Executive Vice President, Chief Administrative and Legal Officer  | June 2023        | David L. Green is the **Senior Executive Vice President, Chief Administrative and Legal Officer, and Corporate Secretary** at Global Payments Inc. since **June 2023**. He joined the company in August 2007  **[0001104659-24-034148_tm2331241d3_def14a.htm:63]** .                               |
| Shannon Johnston   | Senior Executive Vice President and Chief Information Officer            | January 2024     | Shannon Johnston is the **Senior Executive Vice President and Chief Information Officer** at Global Payments Inc. She assumed this role in **January 2024**. Previously, she was the EVP, Chief Digital Officer from June 2023 to January 2024  **[0001104659-24-034148_tm2331241d3_def14a.htm:63]** . |
| Andréa Carter      | Senior Executive Vice President and Chief Human Resources Officer        | January 2021     | Andréa Carter is the **Senior Executive Vice President and Chief Human Resources Officer** at Global Payments Inc. since **January 2021**. She has been with the company in various HR roles since 2017  **[0001104659-24-034148_tm2331241d3_def14a.htm:63]** .                                    |
| Robert Cortopassi  | President and Chief Operating Officer                                    | August 1, 2024   | Robert Cortopassi is the **President and Chief Operating Officer** of Global Payments Inc. since **August 1, 2024**. He has been with the company for 12 years, previously serving as SEVP and President of International and Vertical Markets  **[GPN_3396965_4]** **[0001127602-24-021707_xslF345X02/form3.xml:0]** . |

f19108a01ebee60dee27b761d435d71734230b2cfb1f06b8ecfb720e20133619

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | October 24, 2024  **[0001123360-24-000036_gpn-20240930.htm:26]** **[0001123360-24-000036_gpn-20240930.htm:62]**  |
| End Date/Duration        | Prior to December 31, 2024  **[0001123360-24-000036_gpn-20240930.htm:26]** **[0001123360-24-000036_gpn-20240930.htm:62]**  |
| Total additional amount  | **$2.5 billion**  **[0001123360-24-000036_gpn-20240930.htm:26]** **[0001123360-24-000036_gpn-20240930.htm:62]**  |
| Remaining authorization amount | **$1,371.9 million**  **[0001123360-24-000036_gpn-20240930.htm:26]** **[0001123360-24-000036_gpn-20240930.htm:62]**  |
| Details                  | Accelerated share repurchase agreement entered on October 30, 2024  **[0001123360-24-000036_gpn-20240930.htm:26]** **[0001123360-24-000036_gpn-20240930.htm:62]**  |

7e6c93d86b197c0e423ac720b6cc6c8e50470af930344d95f9874690e257526e

**Quarterly guidance for Q4 2024:**
- **Merchant segment margin expansion**: 50 basis points  **[GPN_3404617_25]** (no prior guidance)

**Annual guidance for FY 2024:**
- **Adjusted Net Revenue**: $9.17B to $9.30B (6% to 7%)  **[GPN_3404617_9]** (no change from $9.17B to $9.30B (6% to 7%)  **[GPN_3396965_6]** )  
- **Adjusted Operating Margin**: up to 50 basis points  **[GPN_3404617_9]** (no change from up to 50 basis points  **[GPN_3396965_6]** )  
- **Merchant Solutions net revenue growth**: 9-plus percent  **[GPN_3404617_9]** (no change from 9-plus percent  **[GPN_3396965_6]** )  
- **Merchant Solutions margin expansion**: up to 40 basis points  **[GPN_3404617_9]** (raised from up to 30 basis points  **[GPN_3396965_6]** )  
- **Issuer Solutions net revenue growth**: ~4%  **[GPN_3404617_9]** (lowered from 5% to 6%  **[GPN_3396965_7]** )  
- **Issuer Solutions margin expansion**: up to 30 basis points  **[GPN_3404617_9]** (lowered from up to 50 basis points  **[GPN_3396965_7]** )  
- **Net Interest Expense**: $500M  **[GPN_3404617_9]** (no change from $500M  **[GPN_3396965_7]** )  
- **Adjusted Effective Tax Rate**: ~19%  **[GPN_3404617_9]** (no change from ~19%  **[GPN_3396965_7]** )  
- **Adjusted EPS**: $11.54 to $11.70  **[GPN_3404617_9]** (no change from $11.54 to $11.70  **[GPN_3396965_7]** )  

37f9d304f6c143bb08935bf40578a8eb1cebc75264f6c793ca787eef1a082cba

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2002  **[0001123360-24-000004_gpn-20231231.htm:88]**    | Present  | Current auditor   |

a22542f84c2d8ae6f78ef0378de4d472dbf76b51a5669214da62302af9a0192f

ce4e8544b7a0f2c8d16ebddb24d280a89697d6e706520778f5aa7a72fd3d7b11

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $2,601.6 million (+5% YoY)  **[0001123360-24-000036_gpn-20240930.htm:15]** **[0001123360-24-000036_gpn-20240930.htm:2]**   
- Merchant Solutions: $1,997.7 million (+6% YoY)  **[0001123360-24-000036_gpn-20240930.htm:15]** **[0001123360-24-000036_gpn-20240930.htm:32]**   
- Europe: $462.95 million (**+8% YoY**)  **[0001123360-24-000036_gpn-20240930.htm:15]**   
- Operating Income: $476 million (**-15% YoY**)  **[0001123360-24-000036_gpn-20240930.htm:2]** **[0001123360-24-000036_gpn-20240930.htm:32]**   
- Net Income: $315.1 million (-9% YoY)  **[0001123360-24-000036_gpn-20240930.htm:2]** **[0001123360-24-000036_gpn-20240930.htm:32]**   
- SG&A: $1,179.0 million (**+18% YoY**)  **[0001123360-24-000036_gpn-20240930.htm:2]** **[0001123360-24-000036_gpn-20240930.htm:32]**   
- Interest Expense: $156 million (-12% YoY)  **[0001123360-24-000036_gpn-20240930.htm:2]** **[0001123360-24-000036_gpn-20240930.htm:32]**   

491e76f86fcb9ac55d8d7e736ced659d056bdea920e13e5f444063a741ea96b9

| Year | Amount Due (in billions) | Debt Type                     | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | 0.526 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 1.500% Senior Notes               | 1.500 **[0001123360-24-000036_gpn-20240930.htm:18]**         | 3.1% = (0.526 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                             |
| 2025     | 1.052 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 2.650% Senior Notes               | 2.650 **[0001123360-24-000036_gpn-20240930.htm:18]**         | 6.2% = (1.052 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                             |
| 2026     | 1.888 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 1.200% & 4.800% Senior Notes      | 1.200, 4.800 **[0001123360-24-000036_gpn-20240930.htm:18]**  | 11.2% = (1.888 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                            |
| 2027     | 2.788 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 2.150% & 4.950% Senior Notes      | 2.150, 4.950 **[0001123360-24-000036_gpn-20240930.htm:18]**  | 16.5% = (2.788 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                            |
| 2028     | 0.464 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 4.450% Senior Notes               | 4.450 **[0001123360-24-000036_gpn-20240930.htm:18]**         | 2.8% = (0.464 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                             |
| 2029     | 3.250 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 3.200%, 5.300%, 1.000% Notes      | 3.200, 5.300, 1.000 **[0001123360-24-000036_gpn-20240930.htm:18]** **[0001123360-24-000036_gpn-20240930.htm:21]** | 19.3% = (3.250 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                            |
| 2030     | 0.464 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 2.900% Senior Notes               | 2.900 **[0001123360-24-000036_gpn-20240930.htm:18]**         | 2.8% = (0.464 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                             |
| 2031     | 1.052 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 2.900%, 4.875%, 1.500% Notes      | 2.900, 4.875, 1.500 **[0001123360-24-000036_gpn-20240930.htm:18]** **[0001123360-24-000036_gpn-20240930.htm:19]** | 6.2% = (1.052 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                             |
| 2032     | 0.464 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 5.400% Senior Notes               | 5.400 **[0001123360-24-000036_gpn-20240930.htm:18]**         | 2.8% = (0.464 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                             |
| 2049     | 0.464 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 4.150% Senior Notes               | 4.150 **[0001123360-24-000036_gpn-20240930.htm:18]**         | 2.8% = (0.464 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                             |
| 2052     | 0.464 **[0001123360-24-000036_gpn-20240930.htm:18]**                | 5.950% Senior Notes               | 5.950 **[0001123360-24-000036_gpn-20240930.htm:18]**         | 2.8% = (0.464 / 16.860) * 100 **[0001123360-24-000036_gpn-20240930.htm:18]**                                             |
| Total| 16.860 **[0001123360-24-000036_gpn-20240930.htm:18]**           |                                    |                        | 100.0%                                                                              |

d7c7c72f815b526bb00f8e6381f120ad43ac6347ec9db8ad49f62661425be40d

e8c47062277e25df3f9e4581a8e2bcc4efee6239da9665a681afb37a3019c65a

- **GAAP earnings are expected to be approximately 50% of adjusted earnings**, indicating significant adjustments and potential concerns about the quality of earnings.  **[GPN_3373225_19]**
- **Earnings growth is anticipated to be slower in Q1 2024**, with expected EPS growth "slightly below the range" of 11% to 12% due to prior divestitures. This suggests potential near-term growth challenges.  **[GPN_3373225_20]**
- **Management expresses a tempered view of the macroeconomic environment** and is hesitant to provide updated medium-term EPS growth targets, indicating uncertainty about future performance.  **[GPN_3373225_14]**

e7781a6fd19da06f7ba19f77c266d184cfc96353a3308ce8918a68cd03b47a82

- **Exposure to macroeconomic and geopolitical risks**, including stubborn inflation, rising interest rates, and geopolitical tensions in Europe and the Middle East, which could negatively impact the company's performance.  **[GPN_3362964_16]**
- **Foreign exchange headwinds due to the strengthening of the U.S. dollar are impacting revenue growth**, particularly affecting international operations and acquisitions like EVO Payments.  **[GPN_3362964_21]**
- **Slower adoption of technology-heavy POS solutions outside the U.S.**, as these markets are in earlier stages of development, potentially leading to challenges in expanding their POS business internationally.  **[GPN_3362964_12]**

c8f8224a4537c396b88e059922ead30285ca64b3b4675d5a4f8cf3152022b4bb

- Global Payments' **POS channel continues to see very strong momentum with over 20% growth** again this quarter, and the company is enthusiastic about the future of this business, particularly with the upcoming rollout of **V2 of their restaurant and retail platform through the Heartland channel in 2024**.  **[GPN_3362964_10]**
- **Bookings across the Merchant business are in the double digits**, providing good visibility for new business in the coming months, and **retention levels remain very consistent**, supporting stable revenue performance throughout 2023.  **[GPN_3362964_20]**
- The company is expanding its **POS solutions globally**, leveraging capabilities from the U.S. market to international markets such as **Canada, the U.K., Spain, Central Europe**, and plans to bring it to **Poland, Ireland, Greece, and Mexico** over the next 12-24 months, creating significant growth opportunities.  **[GPN_3362964_12]**

50acdcff74d08b12b8c4ad7b70ebf8993d8894fbe88416f22db23b93536b5643

- **Global Payments is poised to accelerate growth through significant investments in point-of-sale (POS) software, international expansion, and leveraging embedded payment trends, particularly in omnichannel solutions.**  **[GPN_3373225_23]**
- **The company demonstrates strong free cash flow conversion, expecting approximately 100% conversion rate in 2024, highlighting the efficiency and durability of their business model.**  **[GPN_3373225_19]**
- **Global Payments plans to return to a more balanced capital allocation approach, with increased focus on share buybacks, as evidenced by the Board's approval of a $2 billion share repurchase authorization, signaling confidence in the company's future prospects.**  **[GPN_3373225_16]**

0c048804ca9b803c0ca5bf13101e172cf6ea0b54a962f5d33f25336bfda43678

1. **2024 Merchant Growth Guidance**  
   **Q:** Are you being conservative with 7-8% Merchant growth?  
   **A:** Management expects Merchant organic growth of **7% to 8%** in 2024, slightly lower than last year's exit rate of **8%**, reflecting a cautious view of the macroeconomic environment and potential consumer weakness.  **[GPN_3373225_11]** 

2. **M&A and Capital Allocation**  
   **Q:** Will there be portfolio pruning or large acquisitions?  
   **A:** They might consider portfolio pruning in 2024, not included in the current outlook. M&A remains strategic, but any deals must offer competitive returns versus buying back stock. They plan to balance capital allocation, prioritizing debt reduction to a net leverage of **3x** and considering share repurchases.  **[GPN_3373225_12]** **[GPN_3373225_15]** 

3. **Margin Outlook and EVO Integration**  
   **Q:** What's behind the up to 50 bps margin expansion?  
   **A:** Margin expansion reflects a balance between reinvesting in the business, including the EVO integration, and bottom-line benefits. Excluding EVO's lower margins, overall margins would rise about **75 basis points**, with Merchant margins approaching **60%**.  **[GPN_3373225_15]** 

4. **Competitive Positioning and POS Rollout**  
   **Q:** How is the competitive environment and opportunities?  
   **A:** Management feels confident in their strategic positioning, especially with their integrated U.S. business and upcoming next-generation POS software launch enhancing competitiveness. They are also optimistic about international markets by introducing advanced products where competition is less intense.  **[GPN_3373225_13]** 

5. **Medium-Term EPS Growth Outlook**  
   **Q:** How should we think about medium-term EPS targets?  
   **A:** While not providing a new cycle guide, management targets **7%+** revenue growth and **14%+** EPS growth for 2024, reflecting high single-digit top-line growth and mid-teens EPS growth, consistent with sustainable expectations, tempered by macroeconomic caution.  **[GPN_3373225_14]** 

6. **Commerzbank JV Contribution**  
   **Q:** What will the Commerzbank JV add this year?  
   **A:** The joint venture with Commerzbank is a greenfield opportunity in Germany, starting from a small base to grow over time. Its 2024 contribution is minimal and not material to guidance.  **[GPN_3373225_16]** 

7. **U.K. Business Stabilization**  
   **Q:** Is the U.K. market stabilizing?  
   **A:** There are signs of stabilization in the U.K., with inflation aligning with expectations. Management is optimistic and has introduced new products, including POS solutions, to compete effectively.  **[GPN_3373225_17]** 

8. **Free Cash Flow Conversion**  
   **Q:** How is free cash flow conversion so strong?  
   **A:** They achieved **100% free cash flow conversion** for the year and expect roughly **100%** in 2024, excluding timing changes in R&D tax credits. They anticipate add-backs to decrease, improving GAAP earnings relative to adjusted earnings.  **[GPN_3373225_18]** 

9. **Earnings Growth Pace Through 2024**  
   **Q:** Will earnings accelerate after anniversarying EVO?  
   **A:** Yes, they expect EPS growth of **11%-12%** for the year, accelerating in the second half as they anniversary Netspend and EVO, reaching **12%-13%** growth in Q3 and Q4.  **[GPN_3373225_18]** 

10. **Merchant Volume and Pricing Expectations**  
    **Q:** Are volumes and pricing aligned with forecasts?  
    **A:** They expect volumes to align with revenue growth and maintain consistent pricing strategies, focusing on fair value without unusual pricing actions.  **[GPN_3373225_19]** 

11. **Vertical Software Investments**  
    **Q:** Where are opportunities in vertical solutions?  
    **A:** They focus on owning software in verticals with large addressable markets, strong payments nexus, and international applicability, leveraging investments across the business.  **[GPN_3373225_19]** 

12. **Issuer Business Renewals**  
    **Q:** How are yields and renewal terms in Issuer?  
    **A:** They've renewed two flagship customers, included in guidance, and continue investing in modernization to open new revenue channels, aiming to sustain and accelerate growth over time.  **[GPN_3373225_20]** 

643d7750a8b18bedfe24f82c5f942e49bfd9b4307d21c8e490d9a53b70164699

- **Potential Macroeconomic Headwinds Impacting Growth**: The company now expects adjusted net revenue growth for Issuer Solutions to be at the low end of the 5% to 6% range for the full year, primarily due to foreign currency exchange headwinds and a modest deceleration in commercial card transactions. This suggests that macroeconomic pressures could be affecting their growth projections.  **[GPN_3396965_7]**
- **Strategic Focus May Lead to Restructuring Costs**: Management is conducting a strategic review to simplify the portfolio and is considering exiting markets where they are not currently a scale player and lack a clear path to becoming one. This could result in restructuring costs and potential loss of revenue from these markets, impacting overall financial performance.  **[GPN_3396965_15]** ,  **[GPN_3396965_8]**
- **Risks Associated with Integration of EVO Payments**: While integration expenses from the EVO acquisition are trending lower and synergy realization is on track, there is a risk that not all synergies will be achieved as planned. Integration challenges could impact margins and profitability if not successfully managed.  **[GPN_3396965_24]** ,  **[GPN_3396965_23]**

94475a811480979a146eba96d9e7219eb9cf8320fa0ed7ed6681a305720b5a45

- **Merchant margins are expected to be approximately flat in Q2**, highlighting ongoing margin pressure and challenges in improving profitability.  **[GPN_3381813_17]**
- The company **acknowledges that consumers face headwinds**, which could impact future transaction volumes and revenue growth.  **[GPN_3381813_14]**
- There is **uncertainty surrounding Capital One's potential acquisition of Discover** and its impact on Global Payments' Issuer Solutions business, given Capital One is a significant client.  **[GPN_3381813_13]**

5e8098460272af6c170a8a46a2259f612e208fa239e7df35c11d5f7e124d0e2e

1. **Merchant Margins and Outlook**  
   **Q:** Why did Merchant margins outperform, and can you meet full-year targets?  
   **A:** Merchant margins expanded by **30 basis points** in the quarter, outperforming expectations despite absorbing **Takepayments**, which operates at approximately half of our margin. This reflects continued strong execution and growth in high-margin areas. We're targeting a **30 basis point** margin expansion for the full year, with synergies from the **EVO** integration contributing in the second half. We expect Merchant margins to expand approximately **50 basis points** in the back half, leading to the full-year target.  **[GPN_3396965_12]** **[GPN_3396965_15]** 

2. **Free Cash Flow Conversion**  
   **Q:** Can you discuss free cash flow trends and working capital dynamics?  
   **A:** We expect to convert over **100%** of adjusted earnings to free cash flow this year, excluding a **5-point** impact from the R&D tax credit. Improved operating income, lower interest expense, and working capital changes contributed to strong free cash flow in the quarter. We remain confident in our full-year guidance of **100%** conversion.  **[GPN_3396965_16]** 

3. **Growth in ISV Channel**  
   **Q:** How is the ISV channel performing and what's driving growth?  
   **A:** The ISV channel continues to show strong momentum, driven by our positioning at the intersection of software and payments. We're seeing consistent growth due to investments in our integrated strategy, vertical market software, and point-of-sale capabilities. This aligns with SMBs increasingly making payment decisions based on software solutions.  **[GPN_3396965_13]** **[GPN_3396965_15]** **[GPN_3396965_17]** 

4. **Impact of Macro Environment on Volumes**  
   **Q:** What drove the deceleration in merchant volume growth?  
   **A:** Merchant volume growth was **6%**, a sequential decline of about **1 point**, largely due to macroeconomic factors and the absence of leap year effects. Revenue growth outpaced volume due to contributions from **Takepayments**, which delivers more revenue than volume, and growth in high-margin areas like point-of-sale software.  **[GPN_3396965_11]** **[GPN_3396965_22]** **[GPN_3396965_25]** 

5. **EVO Integration Synergies**  
   **Q:** How are EVO integration synergies impacting margins and outlook?  
   **A:** We continue to realize synergies from the EVO integration, expecting to achieve **50%** of the **$135 million** in run-rate synergies this year. This contributes to our confidence in achieving the **30 basis point** margin expansion target for Merchant. Integration expenses are trending lower and are expected to reduce further by March **2025**, enhancing quality of earnings.  **[GPN_3396965_12]** **[GPN_3396965_14]** **[GPN_3396965_24]** 

6. **Strategic Focus on Software and Payments**  
   **Q:** How does software fit into your Merchant business strategy?  
   **A:** The future of our Merchant business lies at the intersection of software and payments. We're investing in ISV partnerships, our own software solutions, and point-of-sale capabilities to meet the growing trend of SMBs choosing payment solutions based on their software platforms. This positions us to benefit from long-term market trends and drives growth in technology-led, high-margin businesses.  **[GPN_3396965_13]** **[GPN_3396965_15]** **[GPN_3396965_17]** 

7. **Capital Allocation and Debt Reduction**  
   **Q:** Will you maintain current levels of share repurchases given debt reduction plans?  
   **A:** We're focused on reducing leverage to our targeted **3x** level in the back half of the year. We expect to pay down close to **$1 billion** in debt from free cash flow, prioritizing deleveraging over share repurchases in the near term.  **[GPN_3396965_22]** 

8. **Revenue Share Agreements in ISV Channel**  
   **Q:** How are revenue share agreements evolving with new ISV partners?  
   **A:** While revenue shares have drifted up over time due to competition, the environment has become more constructive in the last **12 to 18 months**. Competitors are more rational due to higher cost of capital. By offering a breadth of capabilities, including embedded commerce solutions, we're able to form more constructive partnerships without reaching the highest revenue share levels.  **[GPN_3396965_19]** 

9. **Simplification and Streamlining Efforts**  
   **Q:** Can you provide a preview of upcoming efficiency initiatives?  
   **A:** We see meaningful opportunities to streamline and simplify our business, which will unlock value to invest in growth initiatives and improve returns. While these are not reflected in our **2024** outlook, they are expected to benefit **2025** and beyond. Details will be shared at our September investor conference.  **[GPN_3396965_14]** **[GPN_3396965_20]** 

10. **Success in Embedded Commerce Solutions**  
    **Q:** What's driving the success in embedded commerce and high attach rates?  
    **A:** We've enhanced our selling strategy to attach value-added services to the payment experience, leading to over **70%** attach rates of embedded commerce solutions with new customers. This resonates with ISV partners and SMB clients, making their software more competitive and increasing revenue opportunities through cross-selling of loyalty solutions, human capital management, and payroll.  **[GPN_3396965_21]** 

11. **Quality of Earnings Improvement**  
    **Q:** Will merger and integration costs continue to decline?  
    **A:** Integration expenses have trended lower, reaching their lowest level in **five years** this quarter. We expect them to continue decreasing as we complete the EVO integration by March **2025**, enhancing our quality of earnings. Our gap between GAAP and adjusted earnings has improved, and we anticipate further accretion.  **[GPN_3396965_24]** 

12. **Direct Sales Channel Strategy**  
    **Q:** How are you evolving your direct sales efforts?  
    **A:** We're reorienting our direct sales channel towards selling more technology-enabled solutions, including integrated payments and point-of-sale software. This aligns with market trends and allows us to better serve SMBs by offering comprehensive software and payment solutions.  **[GPN_3396965_17]** 

13. **Merchant Volume and Revenue Decoupling**  
    **Q:** Is there anything unusual in the positive spread between Merchant revenue and volume?  
    **A:** The positive spread is due to strong momentum in point-of-sale solutions and embedded commerce, which drive revenue streams beyond pure payment volume. While we aim to keep revenue and volume growth correlated, investments in these areas may cause revenue to outpace volume growth over time.  **[GPN_3396965_25]** 

14. **Issuing Business Pipeline and Modernization**  
    **Q:** What's the status of your issuing business pipeline and demand?  
    **A:** We feel good about our position, with **65 million** accounts in the conversion pipeline and **7** letters of intent being converted to contracts. We're expanding our cloud-based solutions and seeing momentum in commercial and sales activities. Long-term growth will be driven by modernization efforts, with new capabilities expected to be in market by **2025**.  **[GPN_3396965_26]** 

15. **ProFac's Impact on ISV TAM**  
    **Q:** How does ProFac increase your ISV addressable market?  
    **A:** ProFac fills a niche for smaller ISVs needing some payment facilitation capabilities like streamlined onboarding and funding flexibility, but who aren't scaled to take on full payment facilitator responsibilities. This opens up new areas where we hadn't been as successful in signing ISV partners before, contributing to growth in our integrated channel.  **[GPN_3396965_10]** 

16. **Discretionary vs. Nondiscretionary Volume Exposure**  
    **Q:** What's your exposure to discretionary vs. nondiscretionary volumes?  
    **A:** The distinction between discretionary and nondiscretionary spending is increasingly arbitrary. Our portfolio is well-diversified across both categories, and with the inclusion of **EVO**, we remain geographically and vertically diversified. This diversification underpins the resilience and durability of our model, positioning us well for any macro environment.  **[GPN_3396965_9]** 

17. **Outlook for Merchant Segment Beyond FX Impact**  
    **Q:** Are there any other factors affecting Merchant outlook besides FX?  
    **A:** Aside from FX, which we expect to largely offset the contribution from **Takepayments** in the back half of the year, there are no significant additional factors affecting the Merchant outlook. We still expect Merchant revenue growth in the **9% plus** range for the full year and margin growth in the **7% to 8%** range in the second half.  **[GPN_3396965_18]** 

de236a886e3de358668213ab679d49e7ead5819da83a831fcbdcc1f06edecfa1

1. **Divestitures and Impact on Revenue**  
   **Q:** How will the sale of AdvancedMD and other divestitures affect revenue growth?  
   **A:** The sale of AdvancedMD, representing over **20%** of our owned software portfolio with **2024 revenue forecasted at $250–$260 million**  **[GPN_3404617_12]** **[GPN_3404617_15]** , is the first step in our plan to divest **$500–$600 million** of revenue.  **[GPN_3404617_15]** **[GPN_3404617_17]**  Although AdvancedMD was growing at a high single-digit rate  **[GPN_3404617_15]** , these divestitures are accounted for in our midterm guidance. We remain confident in achieving mid-single-digit **organic revenue growth** in 2025, even as aggregate revenue will be impacted by these divestitures.  **[GPN_3404617_17]** 

2. **2025 Revenue Growth and Transformation**  
   **Q:** Can you explain your confidence in achieving mid-single-digit revenue growth in 2025 amid transformation initiatives?  
   **A:** We have strong confidence in our 2025 outlook, targeting mid-single-digit **organic revenue growth**.  **[GPN_3404617_11]** **[GPN_3404617_17]**  Our transformation initiatives are underway, with over **600 projects** expected to start positively impacting the business in 2025.  **[GPN_3404617_19]**  We've built sufficient flexibility and cushion to execute these initiatives while still delivering **double-digit earnings per share growth** and returning **$2 billion** to shareholders next year.  **[GPN_3404617_11]** **[GPN_3404617_19]** 

3. **Capital Return Plans**  
   **Q:** What are your plans for capital return and leverage targets?  
   **A:** We announced a **$600 million accelerated share repurchase** and plan to buy back approximately **$2 billion** worth of shares in 2025, maintaining leverage around the low **3x** level.  **[GPN_3404617_20]**  Over the next three years, including the $600 million ASR, we aim to return around **$7.5 billion** to shareholders, representing about **30–33%** of our market cap.  **[GPN_3404617_20]** 

4. **Impact of Macro on Commercial Spend**  
   **Q:** How is macroeconomic softness affecting commercial spend and your issuer business?  
   **A:** We're experiencing broad-based softness in commercial spend due to businesses being cautious in the current macro environment.  **[GPN_3404617_21]**  This includes reduced flows in both commercial card volumes and B2B transactions.  **[GPN_3404617_21]**  While we haven't lost any customers, the overall slowdown in business spending is impacting our issuer business results.  **[GPN_3404617_21]** 

5. **Merchant Growth Trends and Outlook**  
   **Q:** What are the trends in merchant growth, and what do you expect for Q4?  
   **A:** Merchant organic growth slowed by about **1 point** from Q2 to Q3, moving from **7%** to **6%**, influenced by weather impacts and some macro softness.  **[GPN_3404617_23]** **[GPN_3404617_28]**  For Q4, we're anticipating a slight improvement due to less weather disruption and reduced FX headwinds, though the increase may not be significant.  **[GPN_3404617_23]** 

6. **POS Consolidation and Replatforming**  
   **Q:** How is the point-of-sale consolidation and replatforming progressing?  
   **A:** We're aligning all our POS capabilities under the **Genius** brand, receiving positive reception both internally and in the market.  **[GPN_3404617_13]**  While it's early days, we expect to phase out legacy platforms over time, primarily impacting the **2025** timeframe.  **[GPN_3404617_13]**  The replatforming aims to unify our offerings, with benefits expected to materialize in **2026 and 2027**.  **[GPN_3404617_27]** 

7. **Merchant Segment Margin Expansion**  
   **Q:** What drove the margin expansion in the Merchant segment this quarter?  
   **A:** Merchant segment margins increased by **90 basis points** in Q3, exceeding expectations.  **[GPN_3404617_25]**  This outperformance was due to a better revenue mix, synergy realization from integrations, and strong execution.  **[GPN_3404617_25]**  Consequently, we've raised our full-year margin guidance for the Merchant segment to an increase of **40 basis points**.  **[GPN_3404617_25]** 

8. **Transformation Initiatives Impact**  
   **Q:** When will transformation initiatives start impacting performance?  
   **A:** Many of our transformation initiatives are expected to begin positively impacting the business in **2025**, particularly in the latter half of the year.  **[GPN_3404617_11]** **[GPN_3404617_19]**  These include benefits from over **600 projects** in our transformation pipeline, positioning us for revenue acceleration in **2026 and 2027**.  **[GPN_3404617_11]** **[GPN_3404617_19]** 

9. **AdvancedMD Post-Sale Relationship**  
   **Q:** Will you continue as the payment provider for AdvancedMD after the sale?  
   **A:** Yes, we'll remain an integrated partner and continue as the payment provider for AdvancedMD.  **[GPN_3404617_22]**  There's still room to increase payment penetration within their portfolio, and we expect to grow and scale with them as they execute their own growth initiatives.  **[GPN_3404617_22]** 

10. **SMB Volume Growth**  
    **Q:** What's the trend in SMB volume growth?  
    **A:** SMB volume growth was **5%** in Q3, down from **6%** in Q2.  **[GPN_3404617_28]**  This slight decline reflects broader economic conditions and specific weather-related impacts in September.  **[GPN_3404617_28]**  However, October is showing improvement due to the absence of these weather issues.  **[GPN_3404617_28]** 

b7a56a6006396e07293beb63e06891715d8a19ac1b626421b529996afeb80b80

- **Strong Growth in Software-Centric Strategy:** Global Payments Inc. is experiencing robust growth in its software-oriented aspects of the business, particularly in the Merchant Solutions segment, with **20% growth in point-of-sale software** and adding **3,000 new locations** in the first quarter.  **[GPN_3381813_2]**  This performance gives management confidence in sustaining **7-8% growth** in the Merchant business for the year.  **[GPN_3381813_11]**
- **Successful Integration of EVO Payments and Margin Improvement:** The company is seeing sequential improvement in margins as it executes synergies from the **EVO transaction**, with Merchant margins improving each quarter.  **[GPN_3381813_11]**  Management expects adjusted operating margin for the Merchant business to **expand up to 30 basis points** in 2024  **[GPN_3381813_7]** , highlighting ongoing consistent execution.
- **Resilient Consumer Trends and Stable Macro Environment:** Despite an uncertain macroeconomic environment, Global Payments notes that the **consumer remains resilient**, with **stable trends in April**, contributing to positive business performance and giving management confidence in their outlook.  **[GPN_3381813_6]**

6b84755575def680ed142082d2fdfad4f7680b1b93cdab93e74e77809b00e7fe

1. **Margin Dynamics**  
   **Q:** Will Merchant margins improve with EVO integration?  
   **A:** Merchant margins were **47% in Q1**, down **30 basis points** year-over-year, showing sequential improvement as we execute synergies from the EVO acquisition.  **[GPN_3381813_10]** **[GPN_3381813_11]** **[GPN_3381813_17]**  We expect margins to be approximately flat in Q2, then improve in Q3 and Q4, leading to **30 basis points** of margin expansion for the full year.  **[GPN_3381813_11]** **[GPN_3381813_17]** **[GPN_3381813_18]**  Our investments in EVO's technology and platforms are balancing with synergy realization, and we remain confident in our margin guidance.  **[GPN_3381813_15]** **[GPN_3381813_18]** 

2. **Merchant Growth Sustainability**  
   **Q:** Is the 7-8% Merchant growth sustainable?  
   **A:** We are confident in sustaining **7-8%** Merchant growth.  **[GPN_3381813_11]** **[GPN_3381813_14]** **[GPN_3381813_16]** **[GPN_3381813_19]**  Key drivers include strong performance in software-oriented aspects of the business, a **30% increase** in Merchant partners, and good momentum in integrated and POS channels.  **[GPN_3381813_11]** **[GPN_3381813_20]**  Macro trends have been constructive, with consumer resilience supporting our business.  **[GPN_3381813_14]** **[GPN_3381813_19]** 

3. **Investments vs. Cost Synergies**  
   **Q:** How are you balancing investments and cost synergies?  
   **A:** We are balancing our investments in growth initiatives with margin expansion.  **[GPN_3381813_15]** **[GPN_3381813_18]**  We have sufficient capacity to drive growth while allowing margins to creep up over time.  **[GPN_3381813_15]** **[GPN_3381813_18]**  Simplifying the business and focusing on core strategies will free up more investment capacity.  **[GPN_3381813_9]** **[GPN_3381813_15]** 

4. **Potential Asset Divestitures**  
   **Q:** Are you considering asset divestitures to simplify the organization?  
   **A:** We are evaluating opportunities to simplify and sharpen our focus on core strategies, possibly divesting assets where we lack scale.  **[GPN_3381813_9]**  These would likely be smaller, margin-related assets rather than significant parts of the business.  **[GPN_3381813_9]**  Proceeds from any divestitures would be deployed to drive the most value for shareholders.  **[GPN_3381813_9]** 

5. **EVO Revenue Synergies**  
   **Q:** What progress is there on EVO revenue synergies?  
   **A:** We are seeing progress in rolling out revenue synergies from the EVO acquisition.  **[GPN_3381813_21]**  Investments are being made to integrate our capabilities into EVO markets, with excitement around GP POS and other value-added solutions.  **[GPN_3381813_21]** **[GPN_3381813_18]**  We've expanded relationships with EVO's multinational customers and integrated EVO's PayFabric B2B platform, leading to a **100% increase** in B2B acceptance bookings.  **[GPN_3381813_21]** 

6. **Issuing Business Update**  
   **Q:** Any updates on renewals and the Capital One-Discover deal?  
   **A:** The issuing business is tracking according to plans, with a successful Q1 of implementations and a strong pipeline including **5 LOIs** and **7 late-stage opportunities**.  **[GPN_3381813_13]**  Our cloud-based modernized platform is resonating with clients.  **[GPN_3381813_13]**  Regarding Capital One-Discover, we have a long, positive history with Capital One, and their M&A activities have generally been beneficial for us.  **[GPN_3381813_13]** 

7. **Macro Trends and April Update**  
   **Q:** How is the macro environment affecting your outlook?  
   **A:** The macro environment has been more constructive than anticipated, with consumer resilience supporting our business.  **[GPN_3381813_14]** **[GPN_3381813_19]**  April trends are stable relative to Q1, keeping us on track for our growth targets.  **[GPN_3381813_14]** **[GPN_3381813_19]** 

8. **Revenue vs. Volume Growth**  
   **Q:** Will revenue grow faster than volume due to software offerings?  
   **A:** While revenue and volume should remain correlated, we expect revenue growth to outpace volume growth over time as we push more software and value-added services.  **[GPN_3381813_16]**  Software sales generate incremental payment flows, driving both volume and revenue.  **[GPN_3381813_16]** 

9. **Increase in Merchant Partners**  
   **Q:** What's behind the 30% increase in U.S. Merchant partners?  
   **A:** We've added approximately **170 new partners** in Q1, including strategic integrated partners and growth across all aspects of the U.S. Merchant business.  **[GPN_3381813_20]**  This expansion contributes to incremental volume and opportunities.  **[GPN_3381813_20]** 

10. **EVO's Contribution to Growth**  
    **Q:** How has EVO contributed to revenue and volume growth?  
    **A:** EVO is growing in line with our Merchant expectations of **8-9%** growth.  **[GPN_3381813_10]** **[GPN_3381813_11]**  Excluding EVO, core Merchant growth is in the **7-8%** range.  **[GPN_3381813_10]** **[GPN_3381813_11]**  Volume growth aligns with revenue growth, both including and excluding EVO.  **[GPN_3381813_10]** **[GPN_3381813_11]** 

11. **Surcharging Trends**  
    **Q:** How will surcharging impact the business?  
    **A:** We anticipate more cash discounting than surcharging, but overall it's not expected to be a significant trend.  **[GPN_3381813_12]**  Lowering the cost of acceptance is generally positive for the industry, but we don't see this as transformational.  **[GPN_3381813_12]** 

1acfdd9bbe1fe485ada890bdde07cf22bfaa97af3271ab935b71dffb1e78e0f6

- **Integration expenses are trending lower**, and **Global Payments expects to achieve $135 million in run-rate synergies by March 2025**, improving earnings quality.  **[GPN_3396965_24]**
- **The company has a well-diversified business across verticals, geographies, and revenue streams**, making it **resilient in an uncertain macroeconomic environment**.  **[GPN_3396965_9]**
- **Strong success in their embedded commerce strategy**, with **over 70% attach rate** of embedded commerce solutions with new customers, enriching client relationships and differentiating them in the marketplace.  **[GPN_3396965_21]**

16109d682325b8d8d835e7c8e9e7759d6a53d3dc3cc73c3b70b89698d74e84c4

Global Payments Inc (GPN)

Financials