10-KPeriod: FY2021

GLOBAL PAYMENTS INC Annual Report, Year Ended Dec 31, 2021

Filed February 18, 2022For Securities:GPN

Summary

Global Payments Inc. (GPN) reported a strong financial performance for the year ended December 31, 2021, demonstrating a significant recovery and growth post-pandemic. Consolidated revenues increased by 14.8% to $8.52 billion, driven primarily by increased transaction volumes as economic activity resumed and digital payment adoption accelerated. The company successfully managed its expenses, leading to a substantial improvement in operating income, which grew to $1.36 billion, with operating margins expanding to 15.9%. Strategic acquisitions, including Zego and MineralTree, were completed to bolster the company's software-driven strategy and expand into new markets. Looking ahead, Global Payments is well-positioned to capitalize on ongoing trends in payment digitization, e-commerce, and B2B payments, while continuing to focus on technology innovation and global expansion through both organic growth and strategic M&A.

Financial Highlights

51 data points
Beta

Revenue

$8.52B

55.7% Gross Margin

Net Income

$965.46M

11.3% Net Margin

EPS (Diluted)

$3.29

Total Assets

$45.28B

Cash & Equivalents

$1.98B

Free Cash Flow

$2.78B

Financial Statements
Beta
Revenue$8.52B
Cost of Revenue$3.77B
Gross Profit$4.75B
SG&A Expenses$3.39B
Operating Expenses$7.16B
Operating Income$1.36B
Interest Expense$328.00M
Net Income$965.46M
EPS (Basic)$3.30
EPS (Diluted)$3.29
Shares Outstanding (Basic)292.65M
Shares Outstanding (Diluted)293.67M

Key Highlights

  • 1Consolidated revenues increased by 14.8% to $8.52 billion in 2021, reflecting a strong post-pandemic recovery.
  • 2Operating income surged by 52.0% to $1.36 billion, with operating margins improving to 15.9% from 12.0% in the prior year.
  • 3The company completed strategic acquisitions, including Zego for approximately $933 million and MineralTree, to enhance its software capabilities and market reach.
  • 4Merchant Solutions segment revenues grew by 20.8%, driven by increased transaction volumes and the acceleration of digital payment solutions.
  • 5Global Payments generated $2.78 billion in cash flow from operating activities, underscoring its robust operational performance.
  • 6The company has a significant share repurchase program in place, with $1.54 billion remaining authorization as of December 31, 2021, later increased to $2.0 billion.
  • 7Debt management was active, with significant issuances of senior unsecured notes to refinance existing debt and support corporate purposes.

Frequently Asked Questions

Global Payments demonstrated a strong recovery and growth in 2021. Consolidated revenues increased by 14.8% to $8.52 billion, and operating income rose significantly by 52.0% to $1.36 billion, with operating margins improving to 15.9%.

Revenue growth was primarily driven by an increase in transaction volumes, reflecting the continued economic recovery as COVID-19 restrictions eased and the acceleration in the adoption of digital payment solutions.

Global Payments is pursuing growth through a combination of organic expansion and strategic acquisitions. Key acquisitions in 2021 included Zego and MineralTree, aimed at strengthening its technology-enabled, software-driven strategy and entering new vertical markets.

The company's capital allocation priorities include planned capital investments, pursuing strategic acquisitions, paying dividends, servicing debt, and repurchasing shares of its common stock. It maintained a significant share repurchase program, with substantial authorization remaining.