In terms of headline numbers, revenues of $1.05 billion topped the Street by $10 million, while adjusted earnings per share of $1.12 stood four pennies better than the Street.
Drilling down a bit, Worldpay said that total organic net revenue growth was 10 percent (on a pro-forma basis, accounting for the 2017 deal where Vantiv acquired Worldpay), but within that data point, Technology Solutions grew by 21 percent.
Management pointed out on the post-earnings release conference call that eCommerce growth and integrated payments sales helped boost that line of business, aided also by a strong holiday season. Technology Solutions accounted for 41 percent of the company’s revenues, up from 37 percent in 2017, and stood at $443.7 million in the fourth quarter. Management stated that the firm should get 50 percent of its sales from that segment by the end of 2021.
Turning to the Merchant Solutions segment, growth was 3 percent on a constant currency basis to $516.1 million, with low single-digit growth rates seen in the United Kingdom and the United States as measured on a pro-forma constant currency basis.
The Issuer Solutions segment, said Worldpay, contributed $90.2 million in sales.
During the call with analysts, CEO Charles Drucker said through 2018, the company had migrated 80,000 legacy Worldpay clients to what he termed the “highly scaled U.S. platform.” That integration was ahead of schedule, he said. And eCommerce growth, which CFO Stephanie Ferris said has been part of a “secular shift” as consumers spend more online, has helped global cross-selling opportunities.
Management also said on the call that it remains confident in realizing $100 million in revenue cross-synergies, where the firm has logged 26 signed cross-sell wins to date, according to supplemental materials provided by the company. Drucker noted client wins on the call including Lenovo, which had wanted to consolidate a number of acquirers, and where at the beginning of its relationship Worldpay helped integrate payments into that customer’s global ERP operations. The acquiring relationship here (and consolidation), he said, will start in Japan and expand to the U.S. and Canada.
Ferris said Worldpay continues to take share in the integrated payments arena, while additional commentary noted the company sees promise in verticals such as restaurants and the B2B space.
Forward guidance calls for high single-digit organic constant currency growth, with growth for Technology Solutions in the mid to high teens percentages, Merchant Solutions in the low single digits and Issuer Solutions in the low single digits.