Fidelity National Information Services, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the FIS first quarter 2019 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. If you should require assistance during the call, please press star, then zero. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Pete Gunlickson. Please go ahead.

Thank you, Greg. Good morning, everyone, and welcome to FIS's first quarter 2019 earnings conference call. Turning to slide two. Gary Norcross, Chairman, President, and Chief Executive Officer, will begin today's call with company highlights for the quarter. Woody Woodall, Chief Financial Officer, will continue with the financial results for the quarter. This conference call is also being webcasted with today's news release and corresponding presentation available on our website at fisglobal.com. Turning to slide three. Today's remarks will contain forward-looking statements. These statements are subject to risks and uncertainties as described in the press release and other filings with the SEC. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Please refer to the safe harbor language. Turning to slide four, we will also be providing information in regards to our recent WorldPay announcement. As such, participants in this solicitation should also refer to the additional information provided regarding regulatory filings with the SEC and how to easily obtain copies of these filings moving forward. Please note that our update today is neither an offering of securities nor solicitation of a proxy vote. Information discussed today is qualified in its entirety by the registration statement and joint proxy statement that FIS and WorldPay has filed with the SEC. With that, it's my pleasure to turn the call over to Gary to discuss first quarter's results. Gary?

Thank you, Pete. Good morning and thank you for joining us. I am very pleased to announce that FIS growth story continues. We delivered exceptionally strong results to start the year, exceeding our revenue, earnings, and profitability expectations for the first quarter. Turning to slide six. Our consolidated revenue growth of more than 5% was driven by our record year of sales in 2018 and continued strong sales and volumes throughout Q1. Our margins expanded significantly as a result of continued execution of our data center consolidation, operating growth, and the positive impact of non-core divestitures. And we also announced our transformative deal to acquire WorldPay, which further drives growth in attractive, faster-growing markets. Client spend and demand for our portfolio remains especially strong, particularly for our new and modernized solutions. These factors drove another solid quarter for FIS. We saw very strong growth in new sales, which increased more than 30 percent on a total contract value compared to the prior year period. These factors are accelerating the overall growth and quality of our pipeline, and we remain on track to exceed our sales plan for the year. These early results, combined with our robust backlog, create very positive momentum and gives us solid confidence in achieving our full year expectations. Given this strong start, we raised our revenue guidance for the year. Turning to slide seven. FIS remains on the forefront of leadership by investing over 7% of the total revenue into modernizing our solutions and infrastructure to advance our clients' future. We have capitalized on our leadership position, bringing a market digitally driven, open, and cloud-based solutions that enable our clients to more efficiently run their operations, connect with their customers, and grow their businesses. Industry analyst group IDC recently named FIS as a North American leader in omni-channel and digital banking solutions in two industry-wide rankings, underscoring the impact of these innovation-focused investments. Additionally, our API gateway, CodeConnect, was also named as the most advanced API strategy among U.S. core banking providers by industry analyst Itay Group. This recognition is proof of solid progress towards executing on our strategy to deliver the most modern solutions in the industry. accelerate our data center consolidation and cloud strategy, and continually drive increased efficiency within our organization. Turning to slide eight. Additionally, to lead the future of finance and commerce, we are also very pleased with our recent strategic announcement to acquire WorldPay. As we discussed with you last month, this transaction is a continuation of our historically successful M&A strategy to accelerate growth while continuing to optimize margins and leverage synergies through effective integration. This combination will provide significant revenue synergy opportunities of $500 million over three years. As a reminder, the new revenue opportunities from the combined organization include expanded global offerings for merchants with innovative e-commerce solutions, deeper and broader solutions for financial institutions such as fraud tools, payment processing, and a global merchant referral network, and enhanced and innovative payment solutions creating a faster payments community for high-volume retail and high-value commercial payments. These are just a few of the immediate opportunities to drive new revenue streams, which will accelerate our growth profile and organic growth trajectory. On day one, as a combined company, we will have over $12 billion of revenue, growing organically approximately 6%. I am pleased to share that we have received early termination of the Hart-Scott-Rodino waiting period from the Department of Justice on the WorldPay transaction. This early termination and progress in our other regulatory filings gives us strong confidence in our ability to close this transaction in Q3 of this year. We have begun planning to meet our post-closing synergy goals. Culturally, our two organizations are well aligned, and we are making good early progress in defining our go-forward organizational structure. Until closing, we will continue to operate as separate companies, and we will keep you informed as we move towards close. Turning to slide nine for key themes. Focusing now on our segments, our integrated financial solution segment delivered exceptional organic revenue growth of 7% and margin expansion of 160 basis points. Following strong growth results in Q4, revenue growth for this segment continues to exceed expectations as well as accelerate year over year. This outstanding growth was underpinned by onboarding of new clients resulting from the strong sales throughout 2018. We also saw increased transaction and processing volumes as our clients continue to perform very well. Our multi-year investments in digital innovation continue to be a strong opportunity driver for us as clients of all sizes are looking to more meaningfully engage with customers and build new revenue streams through digital channels. For example, a national cooperative bank with more than $125 billion in assets selected our Digital One solution to bring more personalized, consistent, and efficient digital banking capabilities to its small business customers in the U.S. In addition, a $20 billion U.S. community institution who is upgrading to a modern FIS core platform will leverage Digital One to enable omni-channel sales and service capabilities within its branches and self-service digital channels. This multi-year agreement is a key success factor in the bank's strategy to transform and modernize its banking environment and services. Our IFS payments division also drove very strong growth again this quarter. This growth was underpinned by the combination of new client logos, coupled with strong transaction and processing volumes. We are also seeing exceptionally strong demand and adoption for our loyalty solutions. For example, we are successfully expanding our loyalty as a currency offering into new consumer-based markets, including retail and restaurants. As noted last quarter, our innovative mass enablement strategy is bringing new capabilities to our clients through a one-to-many deployment model. Our robust Q1 results and strong pipeline give us confidence this will continue to be a strong growth driver for IFS. In summary, the spend environment in our IFS segment remains healthy. We are successfully capitalizing on new opportunities, which are expanding and strengthening our already robust business. Our global financial solutions segment results in Q1 exceeded plan due to very strong sales, delivering organic revenue growth of more than 2% and margin expansion of nearly 300 basis points. These sales results will translate to accelerated reoccurring revenue growth for the remainder of the year and into 2020. Revenue growth for our GFS banking and payments division grew almost 10% organically. Much of this growth was driven by increased transaction and processing volumes from new logos and expanded relationships with current clients. For example, a European subsidiary of a global financial services powerhouse expanded its relationship with us by selecting FIS as its multi-year payment processing and loan origination partner to support its geographic expansion. We also expanded our long-term relationship with the global card brand, accelerating our ability to support cross-border business-to-business payments. These wins underscore our ability to leverage our broad banking and payments portfolio with local market expertise to solve market-specific challenges. Our investments in risk and compliance solutions continue to drive new meaningful revenue opportunities. We are seeing good demand to help organizations more easily comply with the new consolidated audit trail industry requirement to track orders throughout their lifecycle for reporting of U.S. equities and options. As a result of that demand, we expanded our relationship with three large global financial services providers during the quarter by entering into new agreements for our prodigent solutions. We are very pleased with our pipeline strength and growth trajectory of our GFS business. Like the IFS environment, investment spend within our GFS markets remains healthy. We are confident in our ability to turn opportunities into closed wins at an accelerated pace. We recently hosted more than 3,000 attendees at the first of our three large client conferences. The drive to modernize, realize efficiency gains, and grow revenue were prevalent themes for many clients. This venue provided the platform for our clients to learn more about the solutions that are designed to help them achieve these objectives using modern technologies and capabilities. Based on this transformation to modern technologies, we announced we are lowering our service level agreements for business recovery times to less than 15 minutes for our digital applications in North America, driving significant benefit to thousands of our clients. Where most providers are committing to hours, not minutes, we believe this is a bold offer and first of its kind in the industry, but not the last of its kind from FIS. Feedback from our clients throughout the event was overwhelmingly positive, and early results of the conference show strong continued demand. Turning to slide 10. This feedback, coupled with our strong first quarter results and robust pipeline, underscores our confidence in our strategy and our investment decisions. It also gives us a clear line of sight into our ability to deliver our 2019 goals and beyond, which are to innovate for long-term growth, drive strong sales with competitively differentiated solutions, and build on our global scale. We remain very confident in the value we are delivering for our clients and believe that will continue to translate into strong returns for our shareholders. Woody will now provide additional detail on the financial results for the quarter and full year. Woody?