Global Payments' Q4 2024: Navigating Contradictions in M&A Strategy, Transformation, and Asian Ventures

These are the key contradictions discussed in Global Payments' latest 2024Q4 earnings call, specifically including: Merger and Acquisition Strategy, Transformation Initiatives and Strategic Divestitures, Issuer Segment Performance, and Asian Joint Ventures:



Strong Financial Performance and Transformation Success:
- Global Payments delivered 6% adjusted net revenue growth for the full-year, with 6.5% constant currency growth in the fourth quarter, excluding dispositions.
- The growth was driven by execution of the transformation agenda, with initiatives like the rebranding of POS solutions and the expansion of strategic partnerships.

POS and Software Business Expansion:
- The company's POS and software business achieved a 25% increase in annual recurring revenue with new customers, contributing to over 7% growth in the merchant segment.
- Growth was supported by strong performance in the restaurant and retail verticals, along with strategic partnerships and product enhancements like the Genius platform.

Integrated Embedded and Core Payments Growth:
- Global Payments added 76 new ISV partners in the fourth quarter, with international partnerships increasing by 32, contributing to high-single digit growth.
- Strength in core payments was evident in double-digit growth in regions like Central Europe and LatAm, driven by secular payment trends and strategic partnerships.

Issuer Solutions and Modernization:
- The Issuer segment completed 17 customer implementations in 2024, ending the year with 885 million traditional accounts on file.
- The modernization of client-facing applications and the success of pilot programs are expected to expand TAM and enhance revenue opportunities in the long-term.