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FIS NYSE· Fidelity National Information Services Inc.
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FIS NYSE· Fidelity National Information Services Inc.
Earnings report Q4 2023

FIS Sees Steady Revenue Growth in Latest Quarter

Segments of Revenue

FIS reported a revenue of $2.53 billion in the latest quarter, marking a steady increase from the previous quarters of the year. The company's Banking segment saw a 4% increase in revenue for the year, primarily driven by the ramp-up of several large contracts.

Strengths

FIS's revenue growth can be attributed to its diversified customer base and the structure of its core banking customer contracts. The company provides financial technology services to the top 100 U.S. banks by asset size and other global financial institutions, with no single customer accounting for more than approximately 2% of 2023 revenue from continuing operations. The company's core banking customer contracts are generally structured with fees that increase based on the number of active accounts or transactions, positioning FIS to benefit from account volume growth.

Challenges

Despite the overall growth, FIS's revenue was negatively impacted by a reduction in high-margin license and termination fee revenue. The company also faced unfavorable revenue mix year over year.

Noteworthy

FIS's Future Forward initiatives played a significant role in offsetting the unfavorable revenue mix, keeping the Adjusted EBITDA margin flat year over year.

Summary

FIS demonstrated steady revenue growth in the latest quarter, driven by the ramp-up of large contracts in the Banking segment and a diversified customer base. However, the company faced challenges due to a reduction in high-margin license and termination fee revenue and an unfavorable revenue mix. Despite these challenges, FIS's Future Forward initiatives helped maintain the Adjusted EBITDA margin.

Source documents

Form 10-K  filed on Feb 26, 2024
96 pages scanned

Reference data

Company financials Q4 revenue 2.51B
Analyst estimates Q4 EPS missed by -40.63%
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