- Fourth quarter 2024 GAAP diluted earnings per share (EPS) of
$2.25, an increase of 63%, and adjusted EPS of $2.95, an increase
of 12% constant currency
- Fourth quarter 2024 GAAP revenue of $2.52 billion, an increase
of 3%, and adjusted net revenue of $2.29 billion, an increase of
6.5% constant currency ex-dispositions
- Establishes growth targets for 2025 consistent with medium-term
outlook
- Increases expected operating income benefit from operational
transformation to $600 million
- Entering into $250 million accelerated share repurchase
plan
Global Payments Inc. (NYSE: GPN) today announced results for the
fourth quarter and year ended December 31, 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20250213651180/en/
"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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250213651180/en/
Investor contact: investor.relations@globalpay.com Winnie Smith
770-829-8478 Media contact: media.relations@globalpay.com Emily
Edmonds 770-829-8755
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