The company faces market risks from fluctuating interest rates and foreign exchange rates. Economic uncertainty, including high inflation and lengthy sales cycles, negatively impact revenue growth. Potential losses from discontinued operations (Worldpay sale) and related legal actions (shareholder lawsuits and Brazilian tax claims) pose significant risks. Increased interest rates and potential bank failures also present risks. The company's reliance on derivative instruments to manage these risks introduces further complexity.
Financial Upside
The Worldpay sale generated substantial cash proceeds, enabling debt reduction and share repurchases. Strong recurring revenue from the Banking and Capital Markets segments, coupled with investments in innovation and digital solutions (Digital One), offer potential for future growth. The company anticipates continued investment in acquisitions and modernization to enhance its portfolio and address market demands. Favorable foreign currency movements and high-margin non-recurring license revenue also contribute to potential upside.
