Global Payments Inc · Q1 2023 earnings

Briefing

Delivered best first quarter in four years, exceeded expectations, raised 2023 outlook, completed EVO Payments acquisition, closed Netspend Consumer Divestiture, and executed sale of Gaming Solutions Business.

Global Payments Inc. announced strong first-quarter results, exceeding expectations with exceptional performance in both merchant and issuer businesses. The company also completed strategic initiatives, including the acquisition of EVO Payments and the divestiture of Netspend consumer and Gaming Solutions businesses, leading to an increased outlook for the full year.

• GAAP revenues were $2.29 billion, compared to $2.16 billion in 2022.
• Adjusted net revenues increased 5% (7% constant currency) to $2.05 billion, compared to $1.95 billion in 2022.
• Adjusted earnings per share increased 16% (18% constant currency) to $2.40, compared to $2.07 in 2022.
• Adjusted operating margin expanded 200 basis points to 43.1%.

Headline financials

Revenue & EPS history

The company now expects adjusted net revenue to be in a range of $8.635 billion to $8.735 billion, reflecting growth of 7% to 8% over 2022, and adjusted earnings per share to be in a range of $10.32 to $10.44, reflecting growth of 11% to 12% over 2022, or 16% to 17% excluding dispositions. We continue to expect adjusted operating margin for 2023 to expand by up to 120 basis points.