Last week saw FIS, Global Payments, Ebix and Fleetcor publish their Q1 22 results, providing an insight into the wider performance of the payments processing and ecommerce space.
FIS Q1 2022 results
- Payments processor provider FIS saw revenues increase by 9% on an organic basis to $3.5bn. A key driver for this was its Merchant Solutions segment, which saw organic revenues rise by 15%.
- The company is looking to double down on global ecommerce, its fastest-growing business with 23% growth on a constant currency basis. Aside from acquiring Payrix to enhance ecommerce payments for SMBs, FIS is now looking to expand its services in another 11 countries through 2023.
- FIS sees itself as a ‘leading acquirer for crypto’, having signed new partnerships with Circle, Fireblocks and Currency.com. Under the Circle partnership, FIS’s Worldpay will be the first provider to enable merchants to receive settlements in USDC.
Global Payments Q1 2022 results
- Payments technology and software provider Global Payments has had a strong start to the year, growing its adjusted net revenue by 8% YoY to $1.95bn.
- Merchant solutions continues to be the company’s biggest growth driver, with adjusted revenue in this segment increasing by 16% to 1.34bn. This quarter also saw it launch its BNPL-as-a-service marketplace, which will allow merchants to provide solutions across multiple BNPL providers from a single integration point.
- Looking regionally, Europe led with growth in the high 20% range, but lockdowns slowed growth in Asia to around 3% in Q1. The company also made a number of regional partnerships in the quarter, including an agreement with CaixaBankthat is designed to increase the company’s position as a debit tech provider across Europe.
- Exiting Russia is expected to reduce revenues by more than $20m across the remainder of FY2022. However, increased expectations in other parts of the business are expected to absorb this impact, resulting in the company maintaining its FY22 projections from the last quarter.
Ebix Q1 2022 results
- Ecommerce services provider Ebix saw a 1.3% YoY decline in revenues this quarter to $286.3m. However, with 7% sequential growth compared to Q4 2022, the company believes it is seeing a post-Covid rebound.
- There was a 2.7% YoY decline in total revenues for EbixCash, the company’s India-based subsidiary whose services include travel money, gift cards, mobile wallets and remittances.
- A 7% decline in prepaid gift card revenues was a major contributor to overall revenue performance. Excluding prepaid gift card revenues, Ebix’s worldwide revenues increased 11.5% YoY, while EbixCash revenues increased 30.7% YoY.
- YoY growth in travel and foreign exchange revenues was 85% and 109%, respectively. The company’s businesses across travel, FX, remittances, e-learning and financial technologies combined grew revenues 28% YoY in Q1.
- Looking regionally, Southeast Asia was a particularly strong driver of YoY revenue growth, most notably Indonesia (85%) and the Philippines (55%).
- The company also gave an update on the EbixCash IPO process. It describes it as “ongoing” and says it is currently working with regulators as part of the review process.
Fleetcor Q1 2022 results
- B2B payments player Fleetcor reported a 30% YoY increase in revenue to $789m for Q1 2022, exceeding the company’s own projections. 15% of this was due to organic growth, although acquisitions, including the completion of its AFEX acquisition, also played a role.
- While fuel remains the biggest source of revenue for the company at 40%, its corporate payments division Corpay accounted for 23% of all revenue, up from 19% in Q1 21. This includes AFEX and the former Cambridge Global Payments, with the division seeing YoY growth of 19%.
- Accounts payable outsourcing was the biggest driver of corporate growth, at 50% YoY, although cross-border increased 17%, normalised for the acquisition of AFEX.
- However, volatility around fuel and FX is creating some headwinds for the rest of the year, particularly for Brazil, which the company considers a “wildcard” for the rest of 2022.
- Despite these concerns, Fleetcor has increased its projections for FY22 to 19% revenue growth, up from a projected range of 9-11% it announced a quarter ago.