Global Payments Inc. (NYSE:GPN) Q4 2022 Earnings Call Transcript

Page 7 of 12

Cameron Bready: Yes. Bryan, it’s Cameron. Maybe I will jump in, and I will ask Jeff to add any other additional comments if he would like to. So, look, I would just say our philosophy around pricing really hasn’t changed very much. We do want to ensure we are getting paid fairly and appropriately for the level of service and capabilities we are providing to our customers and our pricing strategies, I will say, are generally aligned with this. We are not really positioning ourselves to be the low-cost provider in the market. I think we are price competitive. But obviously, we strive to differentiate ourselves based on our capabilities and the service that we deliver to the customers that we have the benefit of serving in the marketplace.

So, like everybody else, as we talked about earlier on this call, I mean we have inflationary pressures that we have to absorb around wage, goods, services, etcetera. Obviously, we have reflected that in pricing plans kind of accordingly. But I would say, to your point, our volume growth continues to track relatively consistently with our overall revenue growth. And our spreads have remained relatively consistent. I would say, over time, we continue to expect to see spreads overall increase as we continue to pivot towards more technology enablement in the business, as we continue to scale our point-of-sale business, our vertical market businesses continue to grow, e-comm and omni continues to be a tailwind for the growth. All those businesses generally have higher spreads because we are selling more technology, obviously, than sort of traditional merchant acquiring in general.

So, I think there is a lot of tailwinds around our spreads as we move forward in time. But we have been fairly I would say, sanguine as it relates to our pricing strategies as we have been able to generate good revenue growth in the business on the back of really solid fundamental volume growth across the globe.

Bryan Keane: Got it. Great. And just on some of the renewals, the larger renewals. I guess the worry always is on a renewal basis, you will have to take significant kind of discounts to renew those businesses in a competitive environment. Jeff or Cameron, obviously, could you just talk a little bit about the renewal cycle because it sounded like with BofA and others, you have signed quite a bit of business, just thinking about pricing there. Thanks.

Jeff Sloan: Yes. Thanks Bryan. I think what you said is accurate. So, look, BofA is one of our largest customers. They just renewed for a multiyear period. That renewal started January 1st, this year and it’s in our guidance, right. So, our 5% at the midpoint, 4.5% to 5.5% on the page reflects all that. So, we are growing, and I would say generally growing right through those things. So, I think that really hasn’t changed. What has changed in the issuer business, right, somewhat Cameron described, I think in response to Jason’s comment is we are leading with technology, right. So, if it’s not €“ most of the RFPs we get now are cloud centric. And I think if you don’t have a cloud-centric cloud-native solution, then I don’t think all the pricing in the world is not really going to move the needle there.

Page 7 of 12