FISV - Earnings call transcript Q4 2017

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Operator

Welcome to the Fiserv 2017 Fourth Quarter Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer session begins following the presentation.

As a reminder, today's call is being recorded. At this time, I will turn the call over to Paul Seamon, Vice President of Investor Relations at Fiserv. Please go ahead.

Paul Seamon

afternoon. good and you Thank With me Bob Ernst, Chief Officer; Yabuki, Chief are our Chief Jeff Hau, Mark Officer. our Financial Operating Executive today Officer; our and the release Please our fiserv.com. Investor and quarter of are supplemental Relations note section available earnings presentation that the on for

changes operating of the today remarks accounting majority and our Solutions business, expected interest from forward-looking results, tax strategic the among other statements of ASC Our financial about, initiatives, impact reform, include matters, will XXX. and in the sale Lending

statements may from earnings these materially refer and differ subject of to actual our are Forward-looking uncertainties. results a release to risks discussion factors. and for a number of risk Please

measures meaningful materials today's GAAP call, to should conference indicators planning an of to discussed results along provide refer comparisons otherwise, with made You between current uses are over a financial a non-GAAP measures These throughout let Unless year-over-year With me this call that call forecasting applicable in for assumed performance that, future and nearest basis also management to the the turn stated to references comparisons. reconciliation call reported periods. this explanation as and be our are for measures those measures. for to Jeff. non-GAAP results of the and prior for

Jeffery W. Yabuki

XX% impressive revenue quarter. with attainment shareholders, demonstrating in per the stock a the increased to segments. Internal we contributed years and that return at board company, XXnd to Paul, The several meeting business Thanks, year. in were is a have its strong years has sequentially a capping results in each the led as for of been in was further double-digit of XX% objectives and and quarter XXX% highest growth performance both good our performance growth. of XX resilience rebounded afternoon, to provided to XX us our and adjusted Nearly for in positive in our the earnings quarter across the the increase consecutive everyone. X%, year public quota Sales excellent level Fourth of quarter share, financial underlying growth the our model.

for financial reform in earnings internal adjusted last growth, operating year; further adjusted the share per growth, includes by revenue substantial outlook buoyed Our passed free flow. strong margin acceleration XXXX tax expanding cash and

margin the discuss points, for to we free LLC. Our of as our was to investments XXXX a in-year Earlier growth flow also been This which law some lease on has basis of this of importantly, revenue operating sell call. origination, tax incremental today, are margin Lending the will time. XX management, XXXX to make agreement billion we Warburg dilution mortgage and includes guidance cash later servicing. incorporates internal crossed a result expanded changes, majority announced which choosing signing focused from business in Adjusted and auto first business primarily X%. we $X.X loan Pincus share the Solutions an high-volume acquisitions;

returns for right As is structure mix a We take collective which venture Pincus growth and shareholders. important strategic clients we both the to very our platform opportunities for A of in value is the of business. superior value-creation part have and ensuring deliver right this businesses outstanding advantage our StoneRiver XXXX, similar may our you the in formed provided shareholders. to we of Warburg believe with recall, partner

creation. last completed four an the divested with – businesses enhancing to value quotient our smaller all differentiation, towards increasing a and few growth and we acquisitions Over year, eye adding

add emphasis next, relationships against progress in our key high-quality first, with to our client our our third, to to clients. were: shareholder of A review business priorities, differentiated continue enables value while primary an for which continue innovation and XXXX meeting digital which revenue. deliver solutions; let's commitments; to integration, build focus on payment revenue our Now and high-quality is earnings enhance and to

in was revenue was points at internal business sixth on and cash is near lines, Adjusted up end up across strong the of XX%. our to the by XX X%. year expansion. periodic for lower driven including multiple original growth growth top EPS year consecutive margin a of up full QX. performance X% the revenue Adjusted quarter, and XX% finished for excellent, accelerated basis guidance was revenue flow from year XXXX, free to operating our Internal range, the of our Our $X.XX, rebound in guidance

and to to We well-positioned pleased our year into met XXXX beyond. have commitments going financial and are are for the

priority an we which more second had digital and growing year assets billion. another signings than with nearly XX%. enhance with payment than is that, $X client within number relationships institutions strong acquired in XXXX, DNA, on we And the emphasis of doubled with greater signed Our to solutions. very

the from increased related to in attractive of We XXXX, revenue DNA the further market. expect most to see segments solutions penetrate the in and

asset business, flexible, signed Architect, platform user and market online a and acquired commercial. that in in the banking integrated of serves a its billion solution our superior of DNA-led Architect users interface, For because bundle, The solutions. multichannel XXXX, inroads in and DNA digital types our architecture, has Bank, implement chose a institution, small Mae bank to strong example, retail, modern Fiserv that is Sallie capabilities. $XX looking and for mobile for payment digital – increasingly digital and we made including all a quarter leading flexible both

the solutions, wave. us with Our platform, payment digital evolving has combined ride to very well-positioned market-leading

As Architect in and our robust Architect assets with expand the of in with The offering digital Bank to points, of number depth because increased and solution billion $X.X quarter. enhance pleased its bank of to to RXP relationship selected the over sales were CheckFree XXX% features Fidelity integration. compared proof XXXX. our We

$X XX%. business growth and trajectory Mobiliti technology its X.X again XX% also and our by headlined up grew as for year. RXP, to solution. turnkey digital Bank Mobiliti billion nearly We CheckFree grew enable assets transformation continued and the due subscribers year superior live to over clients to chosen Zelle the digital for Dollar the We integration. nearly a ASP We subscribers of signed XX% Architect, with also our of was bundle were subscribers number million to

In addition, the platform Architect subscribers for grew nearly XX% year. integrated the on

We preferred growth expect become for institutions the interaction strong channel to continues and journey its depository mobile as their customers.

large third key PXP institutions. priority a value clients. June integration, small Our with to Zelle differentiated is launched deliver Fiserv enable innovation which and The in financial enables to for as our both and partner network

continued $XX the turnkey our sign to Comerica Zelle including larger in assets. quarter, During billion with we institutions Bank to solution,

to sequential is Zelle transactions. the increase Bank, market in payments in and and In with this a XX% across Bank enthusiasm the addition, live optimism opportunity. Citizens SunTrust, contributing with Ally in our are emerging about along the multiple The seeing of channels, supporting in size each ramp we scope our media advertising a went quarter, role Zelle,

the enablement. on our innovative solutions during Early in Solutions digital completing we of Online and in Commercial product, portfolio Center. expand XXXX, such banking to acquisitions continue the award-winning with of acquisition areas of closed We importance Banking year, strategic payments four digital as its

with Commercial to signed the seven-fold high-end in nearly XX contract a the XX% services We're Center the quarter, strong year, During included in value. We're remained solution. users year, XXX. two in we World's grow top demand XX four row, real-time achieve Magazine's a prior prior the along signing the forward institutions off Dovetail Most than these FORTUNE transformational also in finally, market-leading roughly solution, the one seeing one more to in should honor, We increase year increased businesses over and payments banks Architect, the fifth for the to with times capabilities. adding and total to year, our is a of of in Companies. we the in substantially KeyBanc, Dovetail like clients quarter third technology the We're U.S., Admired Bank Citizens strong of acquired for to to FORTUNE and XXX real-time our start, XXXX. this And this and payment provide optimism. which being

me on financial provide let call over additional turn to that, Bob the with to detail our results. Now

Robert W. Hau

a to in by Jeff, performance increased the both year the for mix. Adjusted from the XXX shortfall benefit basis grew $X.X due in quarter per XX% segments, Adjusted revenue of good Internal QX. XX% QX quarter to of led margin billion afternoon, of growth $X.X the everyone. billion the up strong the to and strong including $X.XX. operating revenue full earnings for Thanks, grew strong across to very and Adjusted timing $X.XX growth share periodic to increased X% revenue in reporting points X% and our X% XX.X%, revenue and was primarily quarter was year. quarter to for the

XX.X%. year expanded XX basis points adjusted a year watermark margin full high new of Our operating full to

on focus basis from partially operational were a segment results growth, by Payments strong and acquisitions. driven a Our point mix continued business by offset primarily headwind in-year XX effectiveness,

which well Card growing our benefit positioned $XXX to banking for impact In full million quarter for operating to subscribers to driver grew to margin X% mid-single up growth points Mobiliti solutions. XX% clients strong due sequentially X% for our than year the Payments of and revenue with Mobiliti XX% for signed quarter grew timing continue by priority Electronic and XX%. Mobile X.X scale was businesses. and year through to year. expanding and XXX from transactions newer our $XXX and in the X% transaction was in minimal in critical increased and the high-quality continues growth and the we and only a includes growth to clients businesses. periodic revenue XXXX, of revenue year Zelle, internal year Performance Adjusted was benefits the million, The and revenue X% Services Architect led quarter Debit PXP for segment $X for acquisition-based XX.X%, full to the clients primarily current $X operating the be for billion margin to more quarter billion. grew a operating digits; growth quarter The a X% in to delivered million. XX income operational the adjusted revenue, us. the segment Payments Adjusted Payments our the year. the to in and in for XX% are the of We XXX to the businesses, ASP. acquired effectiveness increased growth, results from basis our ASP

than These and was operating and revenue more the million, in XXXX. to margin which processing margin expanded effective with for XX.X%. the headwind internal the operating to an and adjusted than The quarter by in for tax in driven the growth again the of was both net Act year segment periodic basis quarter a with revenue. year. billion. our segment as $X.X adjusted margin liabilities, million operating offset full the the driven operating of And and Corporate generally GAAP for Internal For from in year which adjusted and in income by our with point revenue the points businesses, basis, discrete basis in in Cuts was benefit, XXX impact comments year, to the in included was revenue primarily quarter better million Adjusted the adjusted by our expectations grew year growth in results due in to X% a XX.X% tax to were and quarter we for certain million. the not year adjusted came full The consistent scale driven our revenue has quarter margin X% quarter and basis revenue Jobs full the segment year points XX.X%, year $XXX loss was the quarter our X%, X% (XX:XX:XX) performance quarter. for improved operational timing the and current year, growth account lending recognized businesses, segment in points revenue $XXX rate or the slightly along the adjusted the quarterly up benefits Financial the $XXX up XX up segment to basis Adjusted which XXX our Tax effectiveness. of $XXX mix, the on XX.X%, tax and year. for XX deferred performance Other acquisitions. been was the XX.X%. EPS of QX in increase operating was margin on the adjusted expected strongest tax operating Full the was

and As XX%, a Jeff currently and adjusted meaningful from rate XXXX's tax between is reform; we our accordingly, expected indicated, XX% of as to from adjusted significantly our in XX.X%. effective estimate previously benefit tax as rate tax expect of well XXXX This effective we long-term be rate XX%. rate down

reduced headline federal deductions. range as a deduction Section of XXX rate the expected of tax tax partially state offset effective lower such elimination rate, reduced and includes adjusted benefits new benefit Our value the the of by

this we upfront, the value. unique As to use for to to increase next we've our decided the believe long-term which of shareholder mentioned is option opportunity maximize years, couple investments best

We center time, to technologies we expect plans. a our digital these holistic focus client-facing And a employee and payments. primarily on experience, excellence, the with view undertake investments same of will on benefit also service at

of months. that to next $X.XX the XX share year. adjusted contribute these majority the per over our new we of the for the XX the expect will We savings, estimate to investments earnings tax to between Overall, reform net investments, and $X.XX subside

times create balance leverage free We'll top in X.X past and again, the our million of and XX.X free Free sheet, end Our XXXX strong meaningful prior cash billion free $X.X business were XXXX, year adjusted repurchase. conversion XXX%, remaining end in of of for shares or XX% We into the shares the well quarter and $X model XXX.X targeted $XXX to the our Total four X.X That continue year. trailing cash value year. the the for of billion flow. earnings flow in outstanding and was billion There at of excellent guidance; the cash within the for for flow turning for $X.X our clients debt up our million outstanding the billion generated cash million on once year leverage with from focus to XX-month years. a stock record X.X was our flow translates to million shares shareholders combined repurchased at shares million, shareholders. strength $X.X our EBITDA, for year-end authorized over ratio. demonstrating

agreement into an business, proceeds million We sell our On to XX% incorporated signed XXXX after-tax we basis, for slightly interest $XXX XXXX. have guidance. the in approximately anticipate the expected the EPS we We in the new expect our venture. retain will Lending $X.XX reduced to Solutions of anticipate net mentioned, transaction and by in forma a Jeff be dilutive XX% pro of quarter As adjusted impact closing we'll receiving be and which the first XXXX should the $X.XX.

XXXX. the we've believe accounting maximize associates and including adjusted our deployed XXXX, a which to of the which during financial variability reduces margin with will over turn to venture transaction within value new quarter. use approach, acquisition, which by me strategic each outlook. fees of for expect our in the a over standard to reported the than transition price as not time recognition comparisons to alone model, superior results, less the way new XX prospectively on and provide also the this in new by We've operating revenue. transaction to impact primary we The do full been transaction a back $XXX our taken termination We will results. believe revenue while Monitise nature make standard has meaningful recognition business, compress professional modified quarterly the impact And With important in revenue retrospective of standard the our retail adopted XX%. in impact X% areas is Monitise and change. and this services is acquisitions our transparency Jeff. that, given We million we revenue our our do the the steps is about elected of methodologies and our This which basis call expect approximately the included are points new joint business divestiture to roughly on recognition We have purchase the to the the of let increased to applied of year, contributions. Along subsequent January. you We've for old those clients, voucher the lines, revenue And streamline anticipate year we net subset impacted closed by shareholders.

Jeffery W. Yabuki

the Thanks, quarter. quota Bob. in of was Sales XXX% performance

be for strategy. channels, of finished year statements the X% results which to has strong years. sales larger payments enter continue and of and our sales up million sales in a include in in quota better sales slightly coming million XX% Domestic by as mind, to aggressive from in year. reporting. year. the growth well, of targets. two typically the year, quota. increasing against supported is XXXX, sequentially we XX% important acquisitions quarter step-up XXXX last results growth anticipate the Integrated the to XX% Digital Total our drivers a the per don't we keep in $XXX of For We for pipeline And the were new element up averaged at were X% XX% for sales and this at in $XXX in-year sales

in Our XX% million the second for year results and pacing. objective, operational have ahead effectiveness $XXX plan, at our our Savings the target. the well of $XX were of million year, were outstanding, by optimization our year significantly led for five-year anticipated million $XX After coming we procurement. of workforce nearly exceeding the achieved

center data have Our nearly also targeted half closing consolidation has locations eliminate. progressed, the we to of

These With well-positioned priorities on focus innovation, that, effectiveness digital, institutions time. technology operational million. align with to in We're and combination their demand interest and rates. $XX and of anticipate our use XXXX we enthusiasm for to We this move rising a continued will XXXX. data and target increase this market and in let's seeing from benefit payments, a with security, quite businesses cyber the tax to investments Our management to capacity are excess utilization. acquisition-based due organic is financial banking well reform over

accelerate our expect internal for Our in will at the revenue Financially, focused to growth three substantially remain shareholder similar X.X% year. priorities to rate least we XXXX. to key the tracked areas

fee revenue. for a expectations termination also growth reduction substantial the year revenue in assume Our

revenue revenue very periodic will which year's Therefore, in the we will Speaking expected the expect acceleration quarter last the had in internal to build recall will and second a QX throughout that to you growth be of and compare. low difficult first lead year. high quarter, we in begin which,

our and allocate intend portion discussed, maximize the we've tax increase of investments As value a we term. savings to to shareholder over longer

compression to which business, our the sale of and the the the years a margin for moderate of increase slides. expect of basis illustration, anticipate page combination included operating range these for points; over of incremental a the the XX have couple the on of adjusted lending bridge XX will we Given accompanying in next XX investments, we to year from and

We share sale to $X.XX of a share expect of adjusted law to growth and is of XX% the earnings per in result $X.XX the XX% the of majority the benefit which lending changes. be net the tax of reflecting $X.XX, earnings to the year, range revised over XXXX the of for business

Finally, to be cash year. conversion range of XXX% a expect to for full free we in flow the XXX%

tax year's into Given investing we transparency portion this we valuable it a year. next believe to are benefit, provide of early very is

For absolutely we a clarity, share typical level as and this of our flow XXXX within and be both of well per should share progress while our our guidance, be conclusion, growth adjusted opportunities. long-term carry conversion. In is view earnings $X new least at believe not outlook, per XXXX we free cash year

choice about shareholders and associates result contribute and who a XXXX. value road our ensure performance we most that us our around dedication trends our ahead. XX,XXX each our the to and and June, create day allow are financial we stronger a for the is clients. We're make financial effort, shared are Investor At series for are partner difference are know Day will achieved of forefront cumulative important, believe of facing we technology to that proud to of even sustained the strategies While in world Fiserv of commitments, and on work we come we our our We accomplishment the we stay pleased to business to the more clients proactively shaping of a nearly for shareholders. our in the far our excited to success

company key Ernst, development believe with leadership strategic strong made Mark that Mark service numerous part X. our to Operating which a XXXX today Fiserv team. April announced a recently vision. and we new Mark we unparalleled Chief intends leader way company, joined end-to-end from executive He is spearheading will and we has including of insights in has the a to transform contributions on of the serve the early the been retire the clients. Officer, Lastly, model,

a know, differentiated together of for many contributions journey and privilege and with to for the work worked learn, the the associates life. We thank next deliver his better that, moves questions. and him partner to open stage in shareholders. on some value this years. As XX you off of best wish him have of and been to Mike part I let's for Mark and the With our his to as clients, he Fiserv into line It's

Operator

Thank you.

We begin session. a will question-and-answer now

Our of first from is coming Koning Baird. question Dave

Your line now is open.

David J. Koning

Great Yeah. Hey, guys, it. you job. crossed

Jeffery W. Yabuki

Dave. Thanks,

David J. Koning

Yeah.

first So the around all, why range, It's to that for sequentially. is pretty all of reason I in XXXX? going tight of part in deferred and a a of while. come in kind ton guess, revenue Is like the reflective been that X.XX of a sales revenue was up (XX:XX:XX)

Robert W. Hau

Yeah. Dave, Bob. it's

annual course an You're our We over did process, revenue part of absolutely increase of billing materialize will correct. XXXX. that the and that's see

David J. Koning

are going that other how the going you. about per just thing, that guess, line, then much one like fall And through to we there And now, got to? to StoneRiver quarter? that used minority interest Great. XX% be I like Okay, is something see would

Robert W. Hau

Yeah.

So you're right. exactly

minority particular forecast what begin the the ready to joint very throughout the out with you there see interest from that we will XXXX. quarter, saw that through line We're income flow first StoneRiver. We to will statement, to see of but venture in similar not

Jeffery W. Yabuki

on timing depends it that. and of things closing, like part Dave, Yeah.

get more we bit when Q little a report perspective – So – in we'll better QX.

David J. Koning

pace? assume just with like thought within other the Got typical of changing I going the guidance process, you. kind pretty forward, a lot had, like thing buyback only kind reform. should of normal nothing's tax And We

Robert W. Hau

with deployment absolutely. change years. last Yeah, in consistent the approach, capital No our many

David J. Koning

Thanks, guys. Sounds great.

Robert W. Hau

Thanks, Dave.

Operator

El-Assal our coming And Ramsey question next of Jefferies. is from you. Thank

line now open. is Your

Ramsey El-Assal

anything of of Thanks that pipeline? about – providing kind there of Jeff, my the sort general confidence that that visibility helped is level in comfortable ongoing the question. for more business? incremental solidity kind just of confidence the of is any XXXX, get you Or taking preliminary a view

Jeffery W. Yabuki

a it's of So for would combination. was reasons. a couple really I say it

a growth know, a most pretty we in growth, elements operate of range additional as deliver over and are therefore, guidance couple investments to shareholders we profitability, deliver next the understood as the XX% and even is years. having the And XX%. drive investments think that of rate we – intend some As the terms we'll more piece of normalized feel tight we to some benefits, see XXXX to we other after we to have out that carved move some to we're in those people earnings expect making this we that in we the of of of and we about – make investments that going do that moderate those into we XXXX. growth investments therefore, what's that sure the tax – good But the to our incremental year, wanted

have confidence And well still an little wanted So be level that it up of to strategically just on that step to fact we'll make would have see start expect of we that revenue do to. visibility sure growth that, we top intended a pathway to we we our expected the of to within gave the guidance. way in again, we

Ramsey El-Assal

are up expect treatment? Are business liquidity kind over incremental like we for there some the Should term? lending divestitures that similar assets right medium the to Okay. free other to

Jeffery W. Yabuki

and today It's of strategy, we're see in corners it compare assets but of macros. look a about the with of we at fit integrated fit how process, this those great we've that we not where four-corner do integration advantages. macros as with how talked a that advantages strategic terms this fit our say forward into the have, businesses we taking and part innovation businesses what a I do regular got they is driving – Does question. on basis, the mix will well very just that these

fit we frankly, today in Investor as to that that that need won't evolves, tomorrow make we assets So and acquire we have mix. assets the laid fit that that And be world may out Day. and there the sure right tomorrow we'll

wouldn't but here as over I So we we would that we say sit of have that monitor divest things will time. immediate we continue look today, an list to to

in think did haven't – venture StoneRiver this back I really and done the we larger is time. since XXXX, joint we a divestiture the that

So past we on know is basis. future, I not something of do don't the performance indicative a necessarily to that but regular plan that it's

Ramsey El-Assal

it. Got

Thanks so much, guys. Okay.

Jeffery W. Yabuki

Thank you.

Robert W. Hau

Thanks, Ramsey.

Operator

Togut is next And question our ISI. coming Evercore you. Thank David from of

Your line is now open.

David Mark Togut

and afternoon, Good best Mark. of luck,

Mark A. Ernst

Thanks, David.

David Mark Togut

signings As revenue you look Payments thinking DNA those in XXXX, growth out you are so to benefits? from XXXX, more the curious in called XXXX of those you rates growth about internal XX% benefit in You've out how are I'm Financial? XXXX, versus if start to

Jeffery W. Yabuki

start Bob, on as can it then, you needed. and me with let So add

the XXXX benefited are company. more would largely lot. there's made of a half have signings. drive from the XXXX coming in XXXX, But the the signings than depending we we into number the we'd for signings last be growth that Payments proportion transactions. of would – we the But As on would a expect and – again, we XXXX momentum And XXXX years, in higher like timing the would to second the in frankly of we that see have not the – benefit relative signings in XXXX

of credit we've institutions and $X so over state made assets. about the the I'm union and momentum we're picked number of really we up David, space, the comment billion that quite getting that We're the of You've, about the the there signed, bank great excited market. sure, in both

David Mark Togut

difference XXXX your your Are credit between base customer you base? in intentions union seeing technology bank any customer relative and spending

Jeffery W. Yabuki

to relative say XXXX, would I no.

for at it where seeing also credit payment spending side, bank putting the the activity We where end the little relates bit banks the as front. the base. unions credit except very been of a more have the the their modernization, money lot more of step out historically, We're in up on interesting are that had high been payment unions have hubs side to a into bank been charters seeing of

So that's another slight differential.

David Mark Togut

at Got XXXX effectiveness, your below $XX It that that point? it. by to nearly And you would XXXX a conservative target like What step And down? looks of your just are target your then the target. why operational XX%. XX% XXXX is target exceeded view actually is about reasons XX% million this

Jeffery W. Yabuki

we'll Bob that ahead, David, Bob. one. take let Go

Robert W. Hau

Thanks, Jeff.

simple is, program. two. know, year it's the So you finished just answer a five-year as We

million now pace right expected We through into are nice optimization of approaching three and progress XXXX. XXXX. forecast million labor some for well had procurement We the with about program. ahead first the We're We'll in $XX in really the just in years $XXX be million the two $XXX years.

Some $XX doesn't repeat. real optimization, data see on into and really benefits procurement, continue that's underpinnings of the estate of to million center that XXXX, We'll naturally that forecast.

Jeffery W. Yabuki

David, all in mean, first I the meaningfully where two we thought the outperformed I in candor, we would add in we've of be would there, years program.

growth And It's like expect of just to build in continued continue we make visibility going that also we the up. that XXXX. this effectiveness. and We the to would so our reasons continuing do systemically we one well operational to sure see why into

phase. Day we had is in so Bob of another Day, the and the talked that six say fact intrigued AI made, Investor The foreshadowing months been advancements since RPA. at our did the thing would have he other quite or some was that in already I technological even about Investor We're at

evaluating we efficient, And way to a in so be also clients. kinds but both deliver think, a technologies we're service – more to far far effective more of those

whole a space it's time effectiveness. of pretty So the interesting in operational

David Mark Togut

much. very you Thank Understood.

Jeffery W. Yabuki

you. Thank

Operator

you. Thank

of Our next coming Shirvaikar Ashwin is question from Citigroup.

is Your open. now line

Ashwin Shirvaikar

retirement. Mark, them type are But guide? the if that. them lot and and and of forward us, kind and realized Well, last lay the four think, Can you Good I me your think, So with you just, six them? months. cross-selling micro-services, start you of nature – acquisitions you. what's that on out made, afternoon, the benefits mind? the months, in I congratulations, five in guess, Thank And in a size I for folks I can factored stuff size are all don't let and strategic them you

Jeffery W. Yabuki

was it Online there, had Center. doing, the the of Well, we did and – them. – started We're they the can Banking think enthusiastic. PCLender we we to let's Banking are way Dovetail, internal with or remember, we from acquisitions been then They're been pretty would We Each Monitise, – way today, been Solutions did if year maybe PCLender internal then have were Center Solutions, see the we it's those gotten the Commercial our doing calculation acquisition growth was Ashwin. The the with revenue we solution revenue Online the we But script, for growth that months. market. other bring that We they've growth talked technologies. those until fully We're or calculate about Dovetail, get don't around, I other. to we close quite acquisition. out year the as the of in each XX in and which of those closed then the the each selling solutions, in technologies Commercial us

that. to was And then Commercial starting the start there other XXXX layer of acquisition zero a to XXXX from the in. start OBS, bit Center from see in of the quarter, fourth acquisition. in get so, little And effectively we'll the it bits in little We'll

So growth we least we these tailwind of through optimism fair acquisitions. for amount internal into do XXXX around creating at have a as a revenue move

align market. buying part, value they fit and clients accretive are we the our we that are businesses we our the technologies third our that For integrated to importantly well believe look most have proposition very rate, to that we that growth with to then bring believe

So excluded but the perspective, very that is benefit line the in that on the XXXX. little cumulative XXXX. bottom-line be start contribution us because, of not some pure top from course, There'll will real in calculations, they a will impact in acquisition

Just very like healthy contributions we saw bought with now we're when that that. we seeing growth to in from DNA XXXX,

type Just expect to it would pacing. illustratively, we a that of follow

Ashwin Shirvaikar

some that of term you've something term in size Anything fees of was, rate, something primarily did market, comment there Can on like Was where lower. XXX, change fees, to would driven on I comment or it going you that? on Understood. the have had higher other that the be question kind by in understand – also being on? ASC helpful terms I is correctly, it's the revenues. done But the win lower

Robert W. Hau

– not from one amount driving It comments, driver. fees there's as the the reduced in opening XXXX market ASC the I areas Yeah. really Term modest, Overall, are XXX. of but the immaterial a mentioned in there's impact fees very significant term is XXXX. of over

Jeffery W. Yabuki

Ashwin, going don't you happen to exactly fees. part of what's it never – from is you know term

And see fees fees, term actually, this part it lower We year. meaningfully are term valuations. is of to lower expecting

more market that on we see up, optimistic that acquisitions now. the the We're based go right see go valuations we the of But are therefore less. term will it's where on and horizon win we'll balanced in and be As space, we down. fees really assessment what

Ashwin Shirvaikar

could I Understood. watch Jeff, Other lay the if other had, on one cadence more revenues, XQ as out that year? quarters? you for sneak we profits comment we through thoughts the should in. than Anything segment for out And the any

Robert W. Hau

we'll a the then quarterly see some opening we'll comments visibility item pointed But going made if we about is XXXX, the And XXX. as QX flow of and on I a have forward. came the variability some driven release into I was comps, we other we is quarterly some ASC my periodic that by difficult gate on so in recall, – very timing QX mean, doesn't again, that Jeff given out you the basis comment that give some good revenue out repeat. really strong, driven of of and earnings

Ashwin Shirvaikar

Thank it. job. Good you, Got guys.

Jeffery W. Yabuki

Thank you.

Operator

coming question Thank Fitzgerald. Foresi of from you. And is Joseph our next Cantor

line Your is open. now

Jeffery W. Yabuki

Joe? Operator, the go next maybe should question. to we

Joseph Foresi

Hello?

Jeffery W. Yabuki

Joe? Oh,

Joseph Foresi

I you the There a think, there. me? me hear in hear background Can you now? phone, Can ringing Yeah. was

Jeffery W. Yabuki

All good.

Joseph Foresi

but or if Okay, I know are another something, guys good. call anyways... getting don't you

Jeffery W. Yabuki

Joe. It'd better not us, be

Joseph Foresi

should Well, answer. if calling, it's revenue you

Jeffery W. Yabuki

(XX:XX:XX).

Joseph Foresi

Exactly. in through going IT you my spending And how higher you in more think maybe reforms bank the see would you so, if question comments here Do Well, I to earlier, is to spending I your was rates. interest think and guess model? some made first due XXXX? increasing you're maybe guess some tax be flowing may about that

Jeffery W. Yabuki

expanding meant financial it the the opening looking at. a making now. it's comments they're the what are buying aperture The really that question, healthier were they're – is feeling to good on aperture that people institutions, Yeah, decisions And right Joe. imply

than For XXXX. in XXXX is, our environment spending than meaningful was different that in don't purposes, it we assume a any way,

their the a and feels to would they from But more "banking" more I be spend to see forward. how it that to to optimistic to about extent exploration we think their XXXX. sales wider of perspective, going translation right impact maybe to XXXX the move we now are as on revenue; an be opportunity and it's really than solutions

is that's factored that this optimism more So a level than out-years be into year. of it would

Joseph Foresi

you then about to a you in that'd And in you what those great. from XXXX? If XXXX? them that what And contribution talk expect be could bit it. offerings in could little digital were maybe size anyway, the contribute Got

Jeffery W. Yabuki

of kind do mean? – you what say Joe, what you when contribution,

Joseph Foresi

Either revenue of it's if know but to see big hard I can of probably growth sense percentages to they wanted how revenue. peg, get were. or I we a

Jeffery W. Yabuki

been this as say of we we've up using reasons supply an one ASP the Yeah. year our don't why would that were I is, We think kind detail. What Mobiliti solution, I example, XX%. of

now business there's We're lot of has see our seeing there. years digital again. out on product, expect growth and really to users five gone getting on Center, nearly the million, That side. strong Zelle, we Architect, a Notifi we're to the X would a ago going Commercial about from so zero lot from growth growth So – and now

is digital a and the becoming of part company. larger larger So

– would that small contribution say expect so of continues more we digitally. think it's the Now fair to a still continue say long evolve and it's part growing is to the company, I to but as and more, world relatively I its

Joseph Foresi

to to XX there expect gave XXXX? I XX expansion in margin one goalpost this know least of for last you the And of it. to least points at Got sort basis $X. a me, do return out at you

So that I'm of return year. sort particular in usual the wondering, just do expansion we Thanks. margin

Jeffery W. Yabuki

Yeah, I expect back absolutely. aperture say, within Barring we guidance. our would something to unforeseen our right be long-term where we now, are would not with that is to

Joseph Foresi

you. Thank Great.

Jeffery W. Yabuki

Thank you.

Operator

Thank Stephens, coming Brett our next Huff of Incorporated. you. question And is from

now is open. line Your

Brett Huff

on Thanks my congrats guys. taking a for quarter, questions and nice

Jeffery W. Yabuki

Thanks, Brett.

Robert W. Hau

Thanks, Brett.

Brett Huff

sure make trying puts bigger think, One X.XX the $X.XX takes I'm of picture. the midpoint technical one to guidance. understand question – the, and I from sort and (XX:XX:XX) I

I $X.XX reinvestments, heard other tax think benefit, net again? could that terms number in number some net just I us guys of you give to of you say

Robert W. Hau

tax is $X.XX $X.XX. that net of And benefit It's again, to the to a reinvestment. point, your

Brett Huff

should that, to apples-to-apples we guidance, impacting kind should of out get other and that the thinking. think we of then And net things we that about are all the were try what

you $X.XX about, lending add to need guys fair? do and that. transaction? back sound the that that dilution bps think I about Is from from I You Does XX $X.XX math said is right? the

Robert W. Hau

we two interest that guess, impact... a I indicated $X.XX about of the So majority points. the selling data One, impact is the

Brett Huff

Okay.

Robert W. Hau

...to XXXX.

EPS that. the modifying the So baseline then we are to and essentially down or revising by to growing XX% new $X.XX the $X.XX above XX% of $X.XX,

Brett Huff

Got you.

were I And your to the on then done sales, in that you guys truly were lot see into and numbers gave and more that mean, that remarkable. that plug assets I to many picture them you can platform that a a true? kind is buying bigger ways remarkable of benefit? get then, kind guys really underperforming my would helpful. job kind putting that's where that A, you have accelerating system. is, from question Okay, be? that Thanks. of other there's B, guys there of of assume you And you are stuff your Where – out looking folks

Jeffery W. Yabuki

that's into opportunity them system. lot plugging assets using market and buying in the Brett, Thanks, to of We you your say. do of in vernacular, kind see the terms of a

happen. force that so sometimes importantly, only we selling of we clients an distribution methodology that system, but also is of a think be terms more to in our terms that Because natural them, asking we've is the can it capacity refer done that do internally as that, allows it space. across – done having accept things our I there to to we're sell recognize many what shelf We to own implement. nice of in of distribution and their people to willing we've a integration occurs a job building limitation

in that pragmatic own that out acquiring the about it we products pretty that balance variables, is them. on couple to knowing manage going the and without what against solutions have we those and system we be to we our So of therefore, have to bring build and

over let's place said, that just to way things to in the annual solutions digital Center and that Solutions it, fits you that brand payments, terms see focus another about as where the last we distribution would and that our began what digital, core really characteristics, we've say And it revenue it equipping year. system we we've then – Day, we if I component Biller is on and have call $XXX which clients. of talked think account that as Commercial can last through sell opportunity this and the processing. bullet the done payments strategy, or fits exactly account and do best and in the distribution this to think identified, product, of the PCLender a added I more our than also like the we've ecosystem Investor million do system in we building We the processing our So macro at trying we're product both add think

of way but kind we do laying a that see those long-winded opportunities. out, So of

add aren't Fiserv. us and valuations we revenue to cash buy with think value create contribute the within we're necessarily to stage, at flow this clients that trying that Now growth we're and willing to go those but again, cooperating in for and out things

Brett Huff

helpful. for the Thanks That's time.

Jeffery W. Yabuki

Brett. Thanks,

Operator

next coming of our JPMorgan. question Thank Huang you. And is from Tien-Tsin

Your line is now open.

Tien-Tsin Huang

I a the margin. Thank to results. on you. had just Joe's follow-up Good question

margin unusual You for to I which Fiserv. put an upper think bound expansion, is your pretty

might talking but guide to just margin very you're trying being more infer you're maybe on any side? I know about that strong, trying I the upside reinvest just that the I'm margin get et mean, So we to from better. better a operating cetera, little you understand, understand likely core to should

Jeffery W. Yabuki

Yeah.

typically of in comes say about in frankly take We've at fee And not carved I can year, is think – in the as the We which interest number it's it sale as majority we with going point put investment XX underlying least then margin. in a don't you're this combination we and really a revenue, higher drive termination just right. the of a much Lending, coupled that. reduction so dilution it. obviously Tien-Tsin, substantial out we So It from be basis typically a it's in fact, range. to the

are So us. two pressuring those we think

anything I think purposes we we just to it's possible else. modeling trying were be could that. likely more But that than give a range above really for

Tien-Tsin Huang

No, for that's quick It's Yeah. ones, get fair, to good fair. need if that's more Two always it. mind. parameters you don't We us.

benefit in revenue mean, I the periodic the on quarter. Just fourth that...? you Did that? is size

Robert W. Hau

of it quarter. about $XX of year-over-year. million light third not order the is quarter, of in fourth the half magnitude, into the actually from rebound recovery And about We was were did as we but you recall, weakness third – or that quarter coming

Tien-Tsin Huang

traditional going couple the you, there's just a driver been – ask a think business? think strategy that. your of as on a and then curious one, about debit how that about to was Got wanted Fiserv signature be I Accel after what articles debit more And there. we growth for the is sort business. being I just Thanks network Could I you're it. of Jeff, last

Jeffery W. Yabuki

is. it Yeah,

Walmart are referring to assume, lease. You, I the

Tien-Tsin Huang

Yes.

Jeffery W. Yabuki

and differentiate of the obviously got that think that couple been we our interesting further along mean, over think way. a I lot our a work the on Accel doing years we we've is other some areas then working several of innovation. what last clients benefit We've will creating network we're

drivers growth innovation. mean, the acceleration one be So of see of XXXX we yes, in do Accel to I network

Tien-Tsin Huang

Thank you. stuff. Good

Jeffery W. Yabuki

you. Thank

Operator

from James Schneider is Thank Sachs. you. coming of Goldman question next And our

now is open. line Your

James Schneider

to exposed that time, not down. to limits term talking would Thanks taking have at fees one and hand, bank But would the I to maybe the wanted smaller for clients same is consolidation your and valuations outlook on be when about happens. back these typically when end SIFI it. (XX:XX:XX) of commentary, directly my Jeff, the The M&A more for increased suggest question. evening. M&A. on we Good kind cycles you're that rate On up go your bank that

give think that down this of trend we've kind think that start maybe recently, numbers So though M&A at stage? you had even to do you whether us actually your increased feelings on the

Jeffery W. Yabuki

have least revenue. for are we in reduction fairly planning at a to fee termination So meaningful our purposes,

I be side need as would is Just because quite remaining term revenue house, fees this termination the is the reminder, feel more contract number We're The of M&A a at diminishing people And hearing quite buyers maybe of market, bank I both targets The say two is de think pulse actually the on than compelling a growing. on years see positive and the the – transactions, but which the starting of doesn't The time. high. sorry, pickier to is you'll ago. acquisitions we're to on starting – were a see positive are they from potential number see be also slight side, in the hiccup novo based we to line valuations on tick-up that for be we're activity, the on quite deem consolidate that are the the – as slight space. a bit.

think over the more we about And right we've this planning last bullish that fees years. for years. were so think where reduction several the off frankly few in and term better space, now than the in been We we're that likely than to we're translates bullish last

James Schneider

sales translates up that and That's thanks. revenue. helpful, to a quick commentary maybe the And follow just question, on how to

by that, be kind just in like of like XXXX, of you to that QX, in a something had you sales or XXXX. which all think XX% QX And back muted as pickup end you I would experienced recognized in significant I that? those will expect clarify, the more in want XXXX up of were result did revenue? sales of the terms numbers XXXX, a in

Jeffery W. Yabuki

be more There's So, that – begin to would always hit in aggressive of expect way substantial we to be in at exceptions than but but we all, case. that it think some the could expect made the that, we do the that XXXX. would majority would sales XXXX be I point we that to say to

increasing to year. have we our would As it a sales say relates each quotas in practice the of I year,

X% we that that It's but gone not year. fact our actually they've And reasons originally year. why frankly couple XXXX we – that happened away, again expected higher were but was that you had not our that of that pipeline tells a than it there took sales quota larger been that what increased closed And necessarily We it's we've in we was just close up were had deals in in performance missed the working quotas. our optimism some have of one being for and would the been they've delayed, they XXXX. in we so

James Schneider

you. Thank

Jeffery W. Yabuki

Thank you.

Operator

coming Thank Darrin Barclays. you. And from next of our question Peller is

open. now Your line is

Darrin Peller

like more demand – Thanks, wouldn't Hey. you reinvestment it sounds how what the leverage Obviously, of XXXX? not may was now about. I going were is some the But question of to it in guess just just guys. I that expect in XXXX? to I recurring little it you of that? not after investing repeated is on a maybe a right. much to operating be year. level you us growing guess in terms gave may on Or going or and where scale indication your granularity just want talked be that given end overcomes demand in keep some get that why we this All that money just the And market, banks that in around in specifics

Jeffery W. Yabuki

question. Yeah. No, great that's a

we for course, the last down, have investing have long not up, our investments a over matter in time. been the as So, several been going And in development fact, company technology years. in of a

hey, all we for capital. didn't there's So us, this as, view this

maximizing the shareholders we invest are which can make And towards have increasing in so to go We of where Fiserv. the market, did some time XX the that in projects belongs months, to geared areas what we believe expediting Let's term to were we can it. looked that We is doing plan sorry, returns because at What subsumed that that over things said, give sure are that in the shorter or what will – we returns money are the we over place. – we in it investments. we're is this optimizing long subsume do the term? make to majority kinds the the expediting back we of XXXX we that of next or

making projects to investments think to is kinds there margins. – do last holistically, a edges people innovation programs at we the things our – user important kinds are compensation to thinking – our make of some service the meaningful business years doing experiences, against at we to expedite building enhancements we faster, be the our the payments talking plans that model, that at fringe platform of integration can things through or are are could more and make about. require hopefully, commitment; they'll of taking were have a kinds we of our they experiences about and to look to these The of user of can that fringes delivery how to looking we in and enhancements drive revenue that looking So – where we're around, updates don't sure those platform, to out therefore, work digital advantage we're service there it and do primarily more where that we three and carve-out be the our them if attractive, up aspects other delivering may more we we're need projects on and right two in benefit years; there that we make to our slated our able through again, people there so that bring are know are be on and

sure so do that And if it. there's we something that we're to also do using that to – we're just make

Darrin Peller

then; it and like at don't want any international. tuck-in market for standpoint, actually in a to, seem little mean, more look, versus helps here thoughts? unless domestic so perhaps follow-up. strategic mean, you environment here there. on we're heard, more commentary in And I sure That for make right. And that's you international I type domestic B, the obviously. just just think quick a based transformational like need All a for a like sounds extrapolating, thoughts It and give on – I'm looking I And from the lot. you're anything a deals, you just seems just not us while, than just but more we've the A, demand accurate? Jeff, than one

Jeffery W. Yabuki

Sure.

(XX:XX:XX) me... let So

Jeffery W. Yabuki

Yeah, absolutely.

primarily one. we But Let me that would would continue to we that take Monitise company. those the easier I the domestically say a are the Dovetail products be I focused acquisition say, so and U.S.-centric acquisition, it we're relates around than capital, be major as actually the I it we believe non-U.S. about would excited expect proliferate to that. deploying quite centric. world, will attractively to more

So we to transformational. anything sit would anyone point need I don't our do I say, there's transformational add say the here that acquisition, product that see we set and on we horizon think be interesting macro And will are the make deem a the trends will for shareholders to to we most sense evolving. and longer the continue for to the of creating actions lot take on things value over to the that term.

since think So far, not XXXX. done major a I transaction we've

make path at looking with also sure we're the quite we're correctly. want that but that we world comfortable And we're on, to so the

Darrin Peller

makes That right. sense. All Okay. Thanks, guys.

Jeffery W. Yabuki

you. Thank

Operator

And coming our Cantwell Guggenheim Thank you. is question Jeff of from next Securities.

line Your is open. now

Jeff Cantwell

Hi, evening. good

Jeffery W. Yabuki

Jeff. Hi,

Jeff Cantwell

to taking words, on question. Thanks a the PXP? here Or with (XX:XX:XX) they Zelle. for you wanted business not interested partner were, there Zelle if Zelle? In and the involvement for your you other with capability BNY on been are with in I to news, talking for us for just using payments. in Can Zelle one you banks now my is high-level only? Mellon's Hi. PXP the you partnering banks ask BXB example, for about just using remind for

Jeffery W. Yabuki

the the Zelle provide with that to in the our our help the help disbursements network question, with BXB are offerings Jeff. partnering banks Great within Yeah. We've them network. been and actually We're years. couple of part see a service for that kinds suite. the also Popmoney We capability related It's the of needs disbursements offering. Zelle would BXC or other meeting turnkey of of our

it the very want would in of believe the enabler be that was we of PXP this banks always that be will evolves. first part of that part for to Zelle the formation as we that network. and believed We've participate Zelle the journey important we a So journey

So we're prepared about mentioned we in excited quite it our as remarks.

Jeff Cantwell

Zelle Appreciate sort business time? – Thanks. us in margins the the relative terms on your And your just transaction of that. can over its core you remind of and to then maybe just of trajectory – kind

Jeffery W. Yabuki

Sure.

– product as type So fix and a time. over of step business Payments this the a primarily is fixed-cost then a you load build

of to needing So there's we're that support Zelle usual expect But in would to a in. clients transaction the world have, get Zelle infrastructure that expect the attractive the on. be the than more I we eventually businesses the Payments real-time like more the will adds us we coming The you add-ons be are. businesses make margin we would look of network would relatively be on incremental because and to overall, able Payments – – as other capabilities, business more many will scale deem investing the that big electronic scale caveat electronic most an like that as margins sure an we're build occasionally to then to that the

Jeff Cantwell

much. Okay. Thanks very

Jeffery W. Yabuki

Thank you.

Operator

Keane of our And is next Bank. Bryan from coming you. Thank Deutsche question

now is line open. Your

Bryan C. Keane

hi, Yeah, guys.

Jeffery W. Yabuki

Bryan. Hey,

Bryan C. Keane

them been Thanks for asked and taking my Most questions. of answered. have

Just wanted clarifications. two add to

was the revenue something acquired I million for full think year. $XX about year

about think fiscal of we XXXX. fiscal it about to for call similar acquired a year amount revenue, XXXX? trying Should year Just think for $XX modeling million,

Robert W. Hau

acquisition three place revenue XXXX, August-September increase the acquisitions primarily were Only beginning took an of of timeframe. see OBS in very the of in in in the benefit four the acquired the You'll because the year.

Jeffery W. Yabuki

be I would be guess it a will bit. a It'll Bryan. up up bit,

Bryan C. Keane

to keep growth I Okay. have the just size XXXX, in size accelerate the Is sales for the We side, on to the lower don't of know guys in and talked mind order fiscal bit about turning little in model acquisitions, just then you model it into strong the in given just bit rate could little internal – sales revenue up, growth, XXXX we obviously, to a kind obviously being there exact year sales you a think in Jeff, growth a XXXX? of all XXXX. can it hard accelerating it to I don't It's we but know. growth. Yeah,

Jeffery W. Yabuki

most half either the XXXX most out – So what second I or actually XXXX sell you Bryan, the and of of that what on they'll interesting into of we say impact because be XXXX, cycles that. in things bigger a is we implementation It'll know, in-year and would likely be sell of XXXX. recognized probably thing have as towards like will

kind need of in things kind a So – because have year geared sales of X% but that each the the pretty good always increases up. this that's we growth And we in terms internal in to sold, we're what XX% of going we on if looking the bag to up need lot of for we're revenue do ideally, would be year, in moderate sustainable go creating performance. is we level,

Bryan C. Keane

Okay, on quarter. very helpful. the Congrats

Jeffery W. Yabuki

Thank you, Bryan.

Operator

is you. Kartik from question Mehta And Thank of our coming Northcoast next Research.

line is open. Your now

Kartik Mehta

is that demand. And that accurate, banks growth benefits that wanting Jeff. you to benefits would Fiserv? that banking, And Internet that believe and go that unions result mobile how the that's I'm I credit a wondering, for how platform, on seems meet just banking. that's more – Question route? you to looking much of similar a though of put seeing you're are have and Hey, the product It if on maybe as single banks how

Jeffery W. Yabuki

have that called serve And tablet for have and and experiences platform online, of commercial customers. all we it's business also Kartik, small a platform is So, able retail, a single the to smaller we digital do mobile. Architect

gigantic. seeing of of the more does that our say banks would platform of growing wanting because wants little itself, segment the that is control experience, we that say some segment market. meet I less because that are not in would to winning are of the that this that. platform So need. to control bit there the segment It base, and tools size that have and And more progressive that single of it's in-house platform has because of so the you while we're fairly it's a platform allow a is more that small a and of kind of more a market

an it segment was is important very I we for but relatively to grow us small next capabilities contributing. decade, the think over to it'll Make a mistake, is the XXXX. thought digital do acquisition are important still no why segment. in this growth that drivers And company, which is

Kartik Mehta

fees, the Jeff, capped? that seen that contract are there change previously? any contract term is maybe in and but consolidation banks be Just of than terms change looking bank term movement Or banks term for. to obviously contribute. we've changes might for maybe XXXX you seen wanting fees we've Are some not kind or in any XXXX, seeing by some a did

Jeffery W. Yabuki

want. so Yeah. think seen get any Kartik, what it's in say of business, would there. normal contract to to I I they haven't part we don't negotiation, a are try the I going pretty – listen, the sales tremendous parties pressure

some and I are least, in term been mean, – in percentages, cases since how I've think years. often of the I there fees the in caps here, terms is the many percentage at what

I that, terms market. more can or the in the see You terms the expected in say major been that would change but not there's any negotiated

Kartik Mehta

it. Jeff. very Appreciate much, you Thank

Jeffery W. Yabuki

you. Thank

Operator

our Jennifer from question And is SunTrust. you. next Thank Dugan coming of

Your open. is line now

Jennifer Dugan

Dugan Hi. of given moving margin wondering parse segment? parse parts, it could I if out the This growth the out kind you on by different is for just Jenny some Andrew of Jeffrey. was

Robert W. Hau

for XXXX? looking You're

Jennifer Dugan

Yes.

Robert W. Hau

guidance the of that was gave provide don't growth – to provide we the XX typically overall, basis points. detail the XX No. growth We segment. don't We that by

would typically reduction and traditionally business, in and see outside term more overall fees expect pressure additional segment, certainly But so I the Financial some anticipate into segment prevalent that is providing progress segments Payments to we puts Financial is Our would higher a in Payments. versus left The margin segments. continue. both in margin of both But we that in XXXX. that

Jennifer Dugan

you when great. Okay, XX effectiveness, or talking year? for about saying were then were you this operational XX the And

Robert W. Hau

XX, X-X.

Jennifer Dugan

X-X.

Okay. the any of can us sense with associated revenue give the sold? business lending And being lastly, then you that's

Robert W. Hau

for Revenue that – a... Lending, have is that treated we essentially as

Jeffery W. Yabuki

of was the modeling you for Jenny for sorry. revenue sizing looking were – purposes? Jenny, think the for looking I

Jennifer Dugan

exactly. Yes,

Robert W. Hau

It's the Yeah. company. well than less of of X% revenue

Jennifer Dugan

Okay, great. you. Thank Great.

Jeffery W. Yabuki

Thank you.

Jeffery W. Yabuki

for everyone, you, this appreciate us We and Thank the now, evening. joining support. afternoon

a Relations any questions, further group. have Have to If please don't good our you Investor evening. call hesitate

Operator

today's concludes conference. that participation. for Thank And your you

disconnect. now may You

Fiserv (FI) 8 Feb 182017 Q4 Earnings call transcript