FIS Reports a 10% Increase in Revenue on a GAAP Basis during Q3 2021

FIS, a global leader in financial services technology, has published its results for the third quarter of 2021. According to the metrics, revenue surged by over $300 million or 10% on a GAAP basis to $3.5 billion.

Also, net earnings attributable to common stockholders was $158 million or $0.26 per diluted share, FIS reported. Moving into other figures, revenues grew 10% on an organic basis, excluding foreign exchange effects. As a result, reported adjusted earnings per share increased by 17% to $1.6 billion.

The adjusted EBITDA margin was 45.2% in the third quarter, driven by both strong revenue growth and ongoing revenue and expense synergies. Moreover, earnings per share increased 22% to $1.73 per diluted share from $1.1 billion to $1.1 billion. “Our team continues to execute exceptionally well. We’re successfully leveraging our broad portfolio and global reach to speed innovation. Further, our robust cash flow enabled us to accelerate share buybacks during the third quarter without sacrificing our ability to execute our growth-focused M&A strategy,” Gary Norcross, FIS Chairman, and Chief Executive Officer, commented on the results.

FIS Banking Metrics

On the banking solutions’ front, the company’s revenue increased by 8% to $1.6 billion. Sales execution contributed significantly to Banking’s strong third-quarter performance. Excluding the effects of FX, organic revenue increased by 8%. AFFO (after-tax income before interest and taxes) rose 14% to $742 million. “Adjusted EBITDA margin expanded 250 basis points over the prior year period to 46.1%, primarily due to revenue mix, high contribution margins from new revenue, and ongoing synergies related to the Worldpay acquisition,” FIS added.

FIS distributed $238 million in dividends and repurchased $1.2 billion worth of shares during the third quarter. In the third quarter, the company’s share repurchase pace tripled from the first and second quarters, and it has repurchased $2.0 billion in shares so far this year.