FISV - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Fiserv 2020 Third Quarter Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer session that begins following the presentation.

As a reminder, today's call is being recorded. At this time, I will turn the call over to Peter Poillon, Senior Vice President of Investor Relations at Fiserv.

You may begin.

Peter Poillon

Ivy. you, Thank everyone. afternoon And good With me Executive Executive Jeff our Officer. today and the Frank Bisignano, call Financial Chairman; Chief Chief Hau, are our Bob Yabuki, our on President Officer; and

supplemental earnings Relations Investor fiserv.com. materials Our of and for quarter on section are the the available release

Data Our will and from and operating financial statements strategic initiatives, include about the synergies other matters, acquisition. expected remarks of our the First business, benefits today expected the and impact COVID-XX forward-looking amongst pandemic on results,

may risks statements number and from are subject results Forward-looking differ actual and materially to a of uncertainties.

on revenue periods First measures our applicable comparisons You call throughout in year-over-year to should today's performance release GAAP with along financial refer nearest and are discussion by release are historical the and of this XXXX to our the note measures Fiserv to our call references otherwise, currency supplemental made supplemental Please and earnings financial for factors. an to these measures call refer earnings discussed to in to reconciliation of the non-GAAP financial GAAP been the adjustments measures. date. sum earnings risk explanation the for a all internal basis. making have and for prepared that release of Also growth a those Data this stated materials of information materials Unless for references certain non-GAAP the acquisition constant prior

decision at the ensure the of of given attendees, call health over virtually. our on of reminder to Investor our details current a we'll and event section to now, sharing Lastly, we're and important strategic the this to forward difficult look Investor Relations event turn Jeff. made vision December holding that the host the And broadcast the We with website. I'll we've our the you to on an environment and Day Xth, safety share

Jeff Yabuki

everyone. Thanks good afternoon Peter. And

once we these again quarter see, uncertain for excellent are setting results and delivered standard and performance in this the difficult you As can times.

the collective the world, the who Our associates strong testament of performance than is with Fiserv passion XX,XXX clients to power to more are serving committed and excellence. a around

stepped Your to beautifully, First the ago. only well of XX of the combination transformational Data, path down achieving and promise the Fiserv which has company is up closed and months

to to We Frank me the convert into December at over associates, proud sit that has We far the future global deliver the a have turn momentum significant which to commitment been the million in come people innovation, market The can expect of much to anticipated, our best to our positioned XXth XX sustained ever per are nearly solutions, resilient has double-digit the Xth. with business have and today have proven center together many earnings leading strength leadership look share propel I'm economic stronger to time strongest shareholders. performance privilege these turmoil. synergies, come. we for of on collective to platform for lead more and been I've for in and and this has years opportunity the we Frank. With you market as company entire far unequivocally front is to a and to fully results the the positioned create and you right our for times. tell what let than call team model ahead sharing and I reality. our done are where you, of midst $XXX of right been The growth consecutive to our value success. more the forward clients, unprecedented incremental growth years for adjusted that, we achieve year team

Frank Bisignano

partnership. event say for you business from associates, It be thanks good yet, the this would environment. great thank great one It our challenging Thanks economic in the and downturns implications in the met internal And we've everyone. combined the we contemplated And expect one a of years potential have in leadership represents in resulting sustained merger will and the EPS grown our double-digit, revenue, we by and Jeff our expanded friendship global first and all clients, XX of last the for again, when company the I and operating nine constituents, of you, in benefits adjusted Fiserv. significant vision and us is strategic forever. Neither power last economic back we of of also faced afternoon, the months resiliency Jeff, for also the the cash earnings his could Once When of Today, advantages thank Jeff. pandemic adjusted to the the of XXXX, and the past century, economic of amid leadership shareholders. margin, our very year, free Jeff. generated Jeff's call, landmark flow. XXXX. the the one worst a our and but Today I late saw it's is

than through and $X.X excellent in internal a Merchant basis September up very this million X% was points in increased basis in share now segment quarter Adjusted and X%. XX% For growth XXX Acceptance was year-to-date. Free coming the strong up of again XXX operating billion the the XXth. margin was quarter, $XXX at revenue led sequentially. our points cash and flow for by per earnings more XX% quarter Adjusted is quarter totaled

cash full delivered synergies, the $X.X to combined free of in rate than Over expected. included run nearly the that XX To free is flow. proforma the equal billion value generated we've this which put earlier four years of trailing cash flow, months, the perspective,

synergies along the to were combined outstanding strong second with again and the up QX. has terrific and acquiring pipeline XX% results up our and quarter, of strength remains deliver in into great ability in output processing a strong year-to-date third quarter, accelerate Sales going the both businesses. business After XX% Our were results. credit solutions increase with the overall these to sales merchant

have resonating it of is in incredibly sales virtual selling enhanced current the office. transitioned where most, the Our teams reality merger the value a the the well and in to of environment client's preposition matters

solutions, come. years we absolute saw, we look to together working Alliance long-term to and landscape processing the changing partnership forward important QX Valor and is to are suite we privilege our the Alliance the largest across by commitment issuing the accounts private technology delivering Data, issuer client Data, leadership, partnership. that dates, you innovative agreement value U.S. of fourth to by an It programs. kicked broad signing their serve in co-branded with digital This As for card to to outsource card for off a label many and credit further differentiated

in you vision in issuer Genesis Alliance July, top As That strong our heard combined and with Atlanticus of Both Financial signed is quarter, Holdings XX insurers. credit very a momentum clear Data, last we the sign Mexico. in win and a go leading platform continues Globally, continues Integration Bank very the Bank U.S. Queensland also Federal in well. around Valley business world, Australia, signing the India, to in to of in

will of provide XXth, results, our target. Day, synergy full synergy we on we've original well me about Through update of are briefly $XXX already you September let Although Investor million which actioned at billion expectations. ahead $X.X a cost update

a you period. through to over run million with had annualized also of five-year expect will $XXX $XXX originally of million that targeted of than and fully million actioned enter over than our total we more revenue a goal. savings. rate expect recall annual a more million $XXX achieve XXXX synergies $XXX we Comparatively, in We've Importantly, September P&L to

over debit to meaningful unlock when a our of driven revenue percentage us years. growth three market-leading clear as have solutions, the Solutions and areas groundwork The and networks Network of the Accel Our other years. early our connected next combination number we many for STAR and the several of innovation lay network growth should new for additional makes success,

deliver to top account our in of were ATM synergy integrated members services the pleased and seventh processing, client. bundle, union X credit the and Golden processing to a Another Credit provides processing with core experience. our Union, live we including Services, network which its our U.S. world-class opportunities quarter, payments cards went In that cardholder credit and consistent Managed the credit debit debit largest is

signed progress. to new quarter, clients we added institution merchant XX% to In third we clients, Our a strong with merger. also financial the bank since bringing XXX October, this make bank the new continues merchant about than synergy XX program compared XXX our more as the In year those takeaways. to total of

the We company. combined for the have for XXX increased financial than the important pipeline to most opportunities one institutions more of

sizes. direct are cover to us sales merchant types to the model landscape all business solutions, which both our across for have and partner We privileged allows the and distribution

Verizon with SMB of Next will wireless its an begin exclusive Clover our to portfolio Verizon terminal solutions new Flex integrated month, merchant customers. Utilizing technology. marketing large

capital also payroll We deliver than with base to to This are of SMBs. Paychecks, to partnership services merchant our of to as used widely complement management their leading including Clover, U.S. by strategic perfect expanded provider businesses both clients. solutions, XXX,XXX a more a capabilities partnership is in services the human

enabled our the billion. and to XXX segments increase business, the ISV global year. merchant be to quarter digital gross in through stellar $XX excellent of see We of the volume results continue with platform Clover in XX% Momentum payment to in quarter to XX% a the added e-com XX date, clients over includes e-commerce Solutions. a which our prior We new year continued and

nearly ISVs so increase and far a up year than XX%, new XX% through have year-to-date. ISV active more signed a in about our Clover's the we channel. new this Additionally, in merchants seen both XXX were transactions Globally, quarter and

have our to significant e-commerce the Our business. on continued focus grow solutions with direct

physical the will will position We both reach the presence, number and with the McDonald's. in of and structure. you who and household direct and market of important Day, into our our on Costco, context breadth our key our insights of solutions digital Investor acquiring current with across at believe names, we and We quarter value which both size, the digital Dunkin' in a client provide scale, overall important provide including business renewed depth relationships

account success novo institution new across greater of have total bringing banks than and including to continue the assets core expand account processing XX XX the signed and fintechs. DNA. financial We with institutions XX financial strong for our the are the all billion, relationships sizes We clients with quarter, privileged businesses to year, we on in de $X number in processing seeing

Bank quarter. including through is lending bank de six strategic year, this have First the Women's commercial in premier businesses. particularly focus women-owned this First Women's the on primary We signed proud We're our to as with new a relationship, banks of signing platform Bank novo

of these made our continue in combination. as of some $XXX to innovation the part even growth, for Lastly, million deploying including challenging invest times, commitment we we

on more as solution experience the for solutions. support important digital financial We more at to in already Day. look innovations that, Bob unique forward several me to detail fraud, advanced delivered sharing merchant pass With touchless on and let areas such our to disbursements, the this card the have results. shopping digital across topic Investor our We discussion

Bob Hau

strong previously resilience good in We quarter company Total revenue even continue with strength quarter the And at now revenue of year nearly with by in year-to-date. for and in on internal Frank. $XX to X%. up performance turned impacts business, afternoon revenue the growth We Acceptance million synergies, you, Thank the a strong the million the was way growth was business. COVID-XX leading as multiple global everyone. the internal the the COVID-XX our X% synergies revenue economy, flat full the better-than-anticipated prior in demonstrating from very pressure about by our million which $XXX quarter and a year, Merchant partially growth from Year-to-date, of pressured were $XXX from $XXX expected. offset expect the million

were During improvement with low. we trends in each we the at Since generally quarter aligned last growth month call, or July growth challenging run macroeconomic for environment. August, full sequential at The seeing we've time, this July our strong and the April of year stabilize levels. that into through our expectations including rate the current seen transactions, from second transaction shared rates around is

large incremental revenue internal flat we internal to full plus economic to barring the we revenue continue providing guidance, or estimate Although formal minus scale year, be for slowdown. any aren't

excellent with partially operating synergy increased strength an help by basis income our strength $X.X each of synergies, the strong QX COVID, decreased to performance and XXth, the to business adjusted across Consistent basis quarter pandemic. billion. excellent improved million adjusted adjusted to accelerated margin segments. driven quarter, of synergy X% XXX by XXX our of Year-to-date the execution, cost a the billion, in impacted income to XX.X% was dramatically by strong of our from of points XX margin by performance. Adjusted the points and X% increased $X.X XX.X% $XXX divestitures to Adjusted sequentially. last operating impact which Third points comments quarter basis September on incremental through mitigate negative operating margin we up very operating offset operating impact

Our and which short-term would cost actions actions deliver bounce are years. benefits, not largely subsequent focused in on back synergy on acceleration that

expect sustainable We continue into and improvements should that the our are margin future.

Third up Adjusted compared services September $X.XX as quarter share was XX% to adjusted earnings QX. share to $X.XX. per the the in year, investment adjusted in through increased closed for that to per earnings $X.XX prior XXth XX% has transaction

where we we XXth adjusted consecutive double-digit Given to fully the are expect growth today, achieve year. for EPS

XXX% to free $X.X for year-to-date. in up excellent, the year quarter you XXX% flow As million strong cash up cash conversion the XX% XX% is flow to was heard, and date. $XXX quarter was a to and billion Free

the X% was growth the segment quarter. Merchant into in Acceptance for segments, Looking internal strong the a revenue

were global suite gross outlets of platform, ISV to active flexible e-commerce grew nearly omnichannel increased payment by $XXX and leading more results the merchant volume and from Our performance and billion than our our billion sequentially. strong in XX% Clover and quarter, Solutions. annualized XX% of solutions, bolstered our suite Clover $XX

it recovery rate fully growth recovered in serve cycle. Clover the which to environment the later economic and is the not and impressive given the merchants, pre-COVID considering are levels, small While tends medium-sized has to

scan We to their directly solutions consumers QR was extend services breadth to that and order, recently table. scan launched convenience to pay enhance like code of to merchants with order continue innovative from to to which allow the Clover a

integrated payments well and nearly approaching ISV growth XX% Our in with revenue of the rates. growth is is business very performing adjusted quarter or pre-COVID

we adjusted to income operating the XX.X%. to was Acceptance by in million our On to be X% margin in points points COVID. the of margin Our half increased more margin operating segment up fees, about the in to timing X,XXX offset in improvement saw basis fourth headwind quarter pronounced improved QX. continued XXX to with half The network revenue by year's was was reversal operating be by revenue strong with this and points and and $XXX of second earnings second improve as quarter. in quarter. much differentiated million that was in XXX internal cost solutions quarter of internal basis created shared of the expect basis merchants basis quarter. expected and line BAMS expectations the of the specifically over their operating Year-to-date for in first both revenue down basis progress periodic adjusted due as than the driving the XX.X% margin sequentially, driven in was up to which Fintech was Adjusted of adjusted results ISVs in which quarter termination a for benefits. in points, and business a many XXXX not would in segment come revenue the operating cost with I our lower by the synergies operating The majority the to assessment call, prior fees, will benefit growth that primarily significantly are margin grower driven the growth revenue excellent compared XXX quality $XXX quarter, revenue segment impact Adjusted the Adjusted years. recurring including the income the high also year, XXX points

was scale revenue up and business. which the leverage year. is in also in the internal prior X% with quarter, processing the Importantly, revenue in line Year-to-date demonstrated

quarter, on the we operating the previous XX.X%. the help Total XXXX. revenue, up basis in our than and Architect and was million We was quarter Mobiliti XX% in operating of grew to million. pandemic, income see adjusted digital operating in clients users. and synergies. XX% more broad leading operational points, Despite is should mobile the $XXX points XXX the in more digital Year-to-date growth strong array the up a which across XX% effectiveness of Adjusted very benefits, increased on the implemented than Architect in our quarter, $XXX subscribers XX processing year-to-date, million XX.X% into basis the to cost any demand combination XXX solutions. strong Adjusted margin a continue bolster quarter, up for platforms margin growth

We revenue. offset increasing business and partially client scaled highly in to this with efficiency continue deliver periodic by decline across effectiveness, value the

and Growth synergies up card offset also growth output with was by points Payments our impacting We of and are percentage services benefit COVID-driven internal segment, are pleased and benefits, and in revenue X sequentially. solutions the pleased the our partially third back XXth prepaid, as to globally. improvements revenue in the including businesses significantly weakness a positively growth such prior areas synergy technology is in in debit see quarter into which businesses revenue Network was our infrastructure the processing, the quarter. segment were over was in especially the The performance digits X% and quarter procurement. quarter saw in September quarter, second biller up year. the normalization continued through Internal We throughout in and with quarter. The business second to credit transaction revenue mid-single in we line as

synergies, the up date. bottom basis is performance driving movement growth to was income The see is and positive operating XXth. the Adjusted margin was year XXX meaningful up electronic money $X.X Adjusted September solutions, and through The revenue our consumers X% quarter synergy adjusted to strong XXX to efficiency, X% for up points as XX.X% billion line performance. and our world. up in to strong, was impact $XXX a was cost million the in the real-time expect of operating The compared segment in We loss sequentially. nearly the of the about corporate operational which in XX% of The XX.X% quarter basis account in and XX% expected see increase such to transaction to as increased up compensation ago compared growth primarily in more third year quarter and transfers driven the number by on continue quarter clients PXP, quarter Zelle prior sequential to timing COVID variable to as year's again solutions year-over-year incremental grew compared to effective a live were tax the money adjusted and quarter million move with across expenses. doubled excellent period. the XX% than year to in rate more in $XXX and and four-fold we prior points, operating

our Our year adjusted continue to effective tax generally tax the rate to expect prior we effective line rate year. adjusted be through is full and XXth XX.X% September in with

EBITDA, shared quarter, second we shares last year in debt and is year. the year-to-date of Total debt As for $X.X XX of the repurchasing allocation $XXX least to and for $X XXth pay our the adjusted to half $X.X year. was billion September for the billion at debt capital first of down X.X half focus repaid debt in million million billion We outstanding billion repayment, the dropped quarter, full the at times. $XX.X to after expect

acquisitions our organic of important, the rest in year. deployment. the Frank, high innovation, our are sheet, growth a EBITDA capital in maintaining We half me for outlook second for of primary of call the capital remain our turn investment repurchase that, to longstanding back which leverage for the includes share and to the repayment. to With track XXXX adjusted strong let and balance benchmark our We well financial on debt basis target both remains strategy, most achieve on committed fully strong value

Frank Bisignano

Bob. Thanks

saw we last consistent early seen solid we August through week. trough a off rebound of of April that performance the As mentioned, level and into

be right costs them operating quite on house conversations do. business what better business, we our helping the the in their their to their encouraging serving continue real customers, and at Looking centered grow of client generally and environment, reducing

$XX the had we qualifying as program our help businesses to call, we last in grants quarterly nationwide minority full is businesses. to and discussed in least objective, our small at As on specifically black-owned back-to-business force, advance distributing million

it payments in touchless of e-commerce, around more sale, or things interest see is digital digital, whether accelerating We PXP continue at wallets card to all use including payments. increased an point

merchants, financial provide are capability need. business We institutions, to positioned clients' the our and well

our with As results date. to you've heard, we are pleased

least Given XXXX earnings XX%, least prior adjusted strong financial per at from year. growth outlook the our at performance, adjusted guidance share economic the and our EPS current or for are backdrop of full-year of full expect raising $X.XX for year's least adjusted XX% over now at financial share. per we the level last of We up $X.XX

incremental months year-to-date, does we unprecedented few and not as the circumstances, As the shelter the the economic we in or times. for outlook significant our year stated these second of orders contemplate previously, with both other navigate financial wave which performance quarter strong our of duress creates last

more adjusted than Our Last, value stronger associates our world With let's with resilience leading operator, even business clients, has you, expect our XXth open for shown we to deliver share fully and together in growth talented shareholders. the incredible courage, for thank our their the be year of strength double-digit will let around what we along and for results consecutive as XX,XXX me that, per the to and line commitment for earnings stand foundation colleagues, XXXX. questions. our

Operator

Instructions] comes Dave from question first [Operator Our Koning Baird. from

line open. is Your

Dave Koning

maybe seems Payments First like comps industry we at imagine kind judging there easier any at where of the today, it would reason acceleration less in card of we months where kind the QX, the in better across October, look have really gotten seems as Fintech, headwinds, kind in in you merchant it would and all, is hit I segments. revenue see September, like are across QX, periodic we of the of

Bob Hau

leveling the you out of in continue it quarter, we our that Yes. Fintech as into periodic variability some actually headwind then in off couple in fair saw will right improvement September back both of this potential for nice that the off revenue of the obviously, terminations be through low a and upfront, more and standpoint is of very a at on October do now through even And in going seeing our standpoint, to lot segment, point. the saw point Payments we Dave, April July we pronounced some the anticipate amount August, that. of in remarks prepared periodic but also indicated bottoms revenue, things From the and fourth revenue expectation One, combination into licensing world, from in continued a there. segment.

Dave Koning

really and follow-up. next we And was of is then which think grow which kind in catch-up level When down XX%, make kind that about there think or that just XX%, XXXX the then strong, was that assessment margins into year, of one we some kind go baseline the margins that full QX of to about should Acceptance, sequentially margins catch-up fees to year. from from grow is next the would baseline,

Bob Hau

So assessment more the quarter. second off more second us of we meaningfully fees, the saw and third absolutely to that we we the year half bounce a to in the the expected brand quarter third we come fourth quarter, in through quarter, after in rebound the come come meaningfully expected that in to difficult to the bit

quarter. that less see did a that the benefit in we you'll ramp third got So sequentially, of we of

of terms In in the a future. not hold segment kind feel we as guidance the get we've margin, I'm permanent of you and being taken, across that about a frankly improvements for we scale you very improvements to but business, will XXXX, quite Merchant give good actions ongoing company, tell cost growth I across quite can these into the think we margin and ready the revenue very

Operator

from Huang JPMorgan. Next, question from the Tien-tsin we'll take

open. is line Your

Tien-tsin Huang

to really sales the newer so, pricing don't on sales to would you maybe agree - of - call and if activity seeing like there. - a anything that. processing if deals and new the on their more growth share can that, just just, off-cycle deals that any I'm you just curious overall some solid and the to card why systems you. you're if results discussion mean looking or add is Really modernize Data, just Thank for know Alliance I outs clients I maybe liked up

Frank Bisignano

- Yes, probably had three big would be wins a having I them a big in one mean deal. general and of year we these

going building you of lot time account big as a mean our spent issuer. and we take product ADS set think processor fourth the out find, by a you're was I I size, largest deal it's, as to

But stack, all on a have my think it's So system technical was demonstrated a issuers right world-class-based you tremendous view a know ADS digital are to great having cherish. great very, that inside process. our long-term those ability growth we very as what valuable run. great, it bunch we and well long-term I to fit larger then the and them relationships we within ability And of now. we we have it think very around have a surrounds, And platforms the given to organic capabilities very house, and is we've competitive of this appealing I the

on So the think the and the really our we've maniacal wins, been I largest in three fourth client. competitive along a issuers you And know fortunate processes, the focus lot it in made with has issuer. XX we top to do the business investments

Tien-tsin Huang

- wanted ask the a I That's I know lot. deals question. is three to it's why

my just you're it quick Acceptance, volume Mastercard just would. here, on follow-up, So said Visa just like the you backtracking

sort of better to know, don't sort you. this ISVs back a activity, know wise. point, of big you team, attrition, you gotten of additions, what but if it sort to merchant sort don't how there's I have So know Clover to good contributor, you're - net seeing is point, gotten of a sales it the and Frank to benchmarking I of this I is you performance just where don't way rank drivers that rank gotten you would is net the Thank

Frank Bisignano

Yes.

we But to is, industry-leading digits clients, our to our grew global Feb know, actually look size clients had one have in the enterprises and from we double think the not and then, diversity. one SMBs think you of piece. and and vertical to way January low both any the tremendous breadth hit nature about were we that then to we diversity we're when think at I an indexed of client geographic position. We And XXXX. XX% you I into - over of hit the COVID and largest - a We the came trough. geographical

Clover put it. Bob you growing Clover is at has tremendous then late the feel e-comm investment SMBs cycle, all said, and all The built business capability very think more as are business both that is really and us deals recognize the and omnichannel those, business, we in office omnichannel put probably you So stack gained and so presence is has those we our is platform which unparalleled. good e-comm that in is, XX% giving our winning the of direct that I having it the that global physical electronic client's distribution we've and presence, resonated and resonating own we're in really and like and

so of we're we're think If bank a were partner - know, per-COVID, Deluxe, and partner about are integrating the massive - you processing achieving office at in of the a since tremendous even got is choice. a showing capability choice. look And the client's a we not of had signing growth the XXX this core because vision but we deal, we distribution in been and the merchant way, new had we then you Paychecks, bank around at Jeff up great are Verizon, growth the with up great multi-channel scale merchants,

answers just I up I it to relative this think so, for conditions. market quarters hope shown year, all you. it's of that three And

Operator

from Chiodo question Tim Our Credit from Suisse. comes next

line Your open. is

Tim Chiodo

the you e-commerce taking question. around is for the and fully appreciate question My Thank that. business

behind in this I architecture really listed and so hoping, Forrester strong weaknesses Wave quite the maybe scores really and a placing in Investor with the and showing. and talk improve the overall strong, and of dig really weaker release performers. and You were were the into well but you was as APIs more areas you high mentioned and little but Day, Worldpay, just the updates Stripe guys alongside at strength as leaders bit more that little acquiring things, bit business and a recent some into ranking just global named about the and you They bit cadence, gave of weren't could Adyen, disbursement some that dig strong Report, did we'll and in the which an and the both a payouts to little

Frank Bisignano

competitive and we're the our be to is the the of technology, mean and we're we you. Thank building forever, information other it we the we we'll guess it house. think about you wins have always Yes. way know, have using iterating I on and it building are data the all I and is inside still assets look, - best power

we're to best how full sit winning. at and Day, the cover a where is that work in e-comm winning the you understand really, the really we that we have it for the why way Investor product we through strong and we're structure you the think where that in all us give look business at I market full stack,

day that the do So I we know, by you would know, it than but win go head-to-head most and lose lot. a justice, every more we you think we

Tim Chiodo

point, your and tailwind a I'm assuming to put bit if I Acceptance the of in basis from QX, quarter what headwind to QX. it, that quick number of margins a fees, but and last see missed in segment the I follow-up reverse little the I timing that a a assume XXX to you apologize boost And assessment when in less margins was did to point boost was in we should the on QX a, that

Frank Bisignano

third Yes. actually in size remarks. the We it we two-thirds the would didn't in about quarter. that say I up of picked opening probably

Tim Chiodo

helpful. Really Okay.

Okay.

roughly So I taking All points you so. the basis questions. Thank so XXX much. right. appreciate or

Frank Bisignano

Thank you.

Operator

David Next, ISI. Evercore Togut we have from

Your line is open.

David Togut

would and to digit close. Payment and mid-single debit gap you expect In the transaction between in the in fourth growth growth Network and to XXXX, the X% revenue segment start the quarter

Frank Bisignano

remember, about I think necessarily if multiple it think right. businesses wouldn't has about I it way, that but in that -

So foot negatively by right like the get have - that RPL are affected affected also by you prepaid are business TeleCheck - you that have of businesses and that traffic, moment have elements COVID. you affected this you

points, sequentially, three strong. at all business you about, network. the think know We the that you we it's XXX you the improved still basis look you If believe talked is very - number We our characteristics, network. business that having know, I know, love

we're So and and talk to more. going feel why, merchant when issuer I would are - we very that's to and side clients on Payments on the medium-term segment segment the it. the motivated have we and the strong by about very, the in Payments both think why to I about Investor going and through going our you take all think grow that know, we'll 'XX outlook And Day, we get yeah, we're you innovation

David Togut

what in those of followed QX the the capability, at wins for Looking decision XX payment in core and client. component XX for of significant core QX was percentage that a wins wins the

Frank Bisignano

Yes.

bundle it I fact, we clients think easier think how - holistic integrated and their have for But nature always we now, service integrated in further make I our to the the moved clients was bundle clients better. which an there. clients serve looking nature that are how we've and deliver how it at will even the integrated to driving the and

right the suite, this they fact completely we be merchant the - one that that huge really modern else integrated, now, products offering. given in have not are solutions, and offers those odd they So core credit, digital very debit, really to see it'd no the digital are

David Togut

question final Quick on Zelle.

an more App. Venmo early was ecosystem over Fiserv say do an since in forward of going we've you with Cash PXP space, seen, and becoming the innovator see let's as Just Zelle time,

Frank Bisignano

with at payment I across these some of XXX%. - of I mean, tail and to Zelle Zelle and opportunity how have how at things Day the this into investing them then in and the we company, you'll we deliver payment Investor think bring this within class look spectrum very long together ecosystem bank see hear assets we giving how utilize we put our a them and partners the capability.

Operator

O'Neill Matt Next, Sachs. we have from Goldman

open. is line Your

Matthew O'Neill

piece we increased synergy Thanks understanding impressive target once. the everybody I when deal, cost of you've of realization my the the was for to just close about date, already question. the curious, think extremely since taking

closing out that years original a quickly the guys deal. pointed for in sort five you I on less target the than was of year-and-a-half were after think even You into slated

we of a bound So to target center data the longer-term incremental gun somewhat I - there Investor in following the advance. margin I more back normalized of the operating that businesses or consolidation, before upper etc. bit and forward, think might be jumping base to apologize level so are expansion that understand of vis-à-vis how about on realized quantifiable an Day, technology getting I would complete the a billion integration in of going be synergy do $X.X incremental saves business cost

Frank Bisignano

$X.X Investor you billion look That's at good. Day which be $XXX it's know, we've have would of billion, part of That's million. the okay. - but - $X.X answer, actioned we

on in heard of moment, operational it's to clients' office, a think feel I I next that And and and effectiveness are whether in effectiveness will as count about at and you to we've companies and us life, they'll of continue when work we on used than to consolidating, and and a fact quality, be had there pre-merger AI benefit going able but the they resonates way the improve more done improve both operational elements it's operational you company will bring we to together. think service Synergy, whether both in always and we've being both that the we talk were you so efficient companies of back wind standard year, go program, will whether belief effectiveness. closing good So more if run us effect RPA, will mean had our is, in about think regular to and part of we intelligence, can down data it's the where deep drive far, of centers I a the our these service, very it it's which have about be that P&L XX dimensions continue DNA, and way bring in drive through talking forward. it's a many it - while that used artificial will it of we the through synergies that

Operator

from from Research. is question next Our Darrin Wolfe Peller

is open. line Your

Darrin Peller

guess expected, to term than back out, it's Fintech we back when on points the fair on merchant results to line top fees, the side, XXX clear, right. So just be basis was clearly I from out stronger

would so And X% growth been that have rate. a

You new coming and business in platforms. have these wins DNA all some guys on from other

could normalized digital that we X% segment, positioning taking get - initiatives just that about see these through can share in further you bookings, we a the talk the, guess, really tech see and banking wins given show fair run amount, Fiserv actually since if should that in all I acceleration the from when from, you rate. If asked with

Frank Bisignano

mean where a issue to to I mean, clients' so I you is the I that way we revenue, think do go you - us and, but think see good got don't again, got winning in the know, periodic you come think the we of Yes, consultant through very - office of you basically we about have the I you what we you market, in is third end share right, in FIS we know, - party have say, good know, the have mid at out look the very, the and to. said are committed sit, you lower and if at which XX% to

the huge haul, market you gainer we But had a gainer, company being I we've share you boarded and is long know, think the was a know and view the market is segments. share I a Now, ourselves as bigger wins, client. NYCB, market share know just over in you the which think gainer

how bundle. integrated solution, it. to that we're with winning I of because winning the go winning we're digital think want because and we're We're the So to along assets back I with come winning, the because of

the the having, and amount about revenue did of wins talking Bob, future drive which we ultimately installs heard, Architect for we're Architect all growth us. of You amount

lot strong are going why So few you'll of I Investor see think a these - you're over lot next years, businesses Fintech. on the I see think a Day in so

Darrin Peller

integrated offset there kind quickly market anything side, you're is of how just pandemic just international, share and on touch that banks you the on you market. seeing Frank, XX%. we've on in else, taking is on. Thanks top comment payments you of some attrition do can then really, Can enough on touched I of businesses I the maybe up e-comm been XX% be to or despite of Clover filled kinds might seeing of And you're surprised does guess the up from obviously if And the if words, and is X% guys. the in know funnel bigger some question if headwinds. the merchant and new with the anyone another that

Frank Bisignano

a lot countries it every has International - at different. of country look know, you in and is mean, I Yes,

that's winning in strategy, the we don't had we very lockdown physical space. what you in and the - now market and direct then in cases the I I had down how big growth the taking share. technology. And tremendous I investments always the then - the across run space and So regions have think in innovation go-to-market we're and But e-comm, different and if have many it, U.S. about in you strong in see and countries countries about outside have at ever think situations. and and both at electronic we're business different Clover taking we enterprise don't And they are you office, in we fundamentally look their are a that changes is look We've running clients' international,

Operator

from Shirvaikar Ashwin have Citi. we Next

open. Your line is

Ashwin Shirvaikar

Jeff, you. Bob, on to of Good the Hi Frank, all from hear congratulations quarter.

might are telling when not offerings, in you but as know digital have offerings, to you stuff clients they your touch. we pivot My of first question you've have him to incrementally In Jeff, meaningfully So at Peter, as well, it, is other that parts sales to there's to business. other out. ability ramps. towards digital two traditional regards what in might have done. look a enough you left the that you to there been it's words, done do faster versus with about, their accelerate talked which it pleasure, the as you you to And part also their about have to the that hope going Fintech, is bank be what invest a from get is stuff like incrementally stay the

pace if mixed so as have well. could ramping, actually contracts the We on comment about that signed of feedback you

Frank Bisignano

most credit the day have credit assets going the - seeing synergies and transforming is bringing runs and a knew a market from can we to a you one mean who on hear had all financial institution. of I capability, them they other or that bringing and we're CEO every and debit that our bringing of smaller retail the from office the in bringing think structure week. core fee of together important we the the client's our I coming division converting I somebody know, what the institutions once or great so the we're twice transformations a things tell capabilities, standpoint, You was I - one it and and Digital feel happen, of digital I what capability Jeff bank's

their that's it's digital way luxury, the clients, they're it's core digital it's how way think with about much to transformation, pay products cost life. on and much it operate deciding compete longer a than Fintech, going is they no they integrate to valuable us together which is they the how the they bigger and to but how transform, this I me, things what all think grow how out and of is figuring So more need transformation to do don't for is how a see spend, This they than could us just to and them it. is it's with I banks

a feel And in our good it. think so we clients position, I fabulous about are

to with Fintech. I We as around motivated conversion and shown that's happen get as what machine interactions about there my long-term I opportunity is resource are and availability. all digital have the think everyday think fabulous you a know about which implementation you financial people much and highly institutions, growth in think We've when

Bob Hau

digital to services capabilities win continue products financial is this as about. that matters, space bring just talked Quickly, know, that's users in in that well win we risk to us I'd Fintech digital bring and those helping we an you area as additional you those add, our quarters are and in, and investing absolutely institutions payments, into

Ashwin Shirvaikar

what yet talked economic in what that in like short at back other costs many your the pace are value temporary determining term What versus about the at about and of of companies, out the bucket bringing have revenue you back. you those costs the taken percent at those what near those now will sort the you permanent come of of many are XQ. incrementally, and you for that then, cost just cost and assumptions took assumptions, costs, the dollar how And

Bob Hau

worth seeing the XXX I permanent had that the - expansion upfront. actually basis of year how an point And one the this this is cost got margin the in we driven a things quarter we economic question about will absolutely. by shop comments cost improvements when out, by it frequently the that driven including downturn, a never actually you we're of made The be we it's Yeah, pandemic third for look was, near in that time $XXX year, that perform would talked term, about anticipating ago, and since working we've now for will year, pandemic mid-March, the synergies to $XXX saw the hit, of announced what the said economic the And synergies. $X.X the downturn the million and particularly we cost in increase as the back those been to of $X.X at in economic we're cost beginning if we million, in we we coming an headed billion. billion and accelerate when fact as have downturn XXXX in

cost actions the of the that cost actions, in are So to not number a COVID dynamic we're from seeing taking you are permanent they're that places. reaction

effectiveness improvement the not and furloughs the continue future. that or economy or when then the like to things as have come us, into cost that pay So we we to margin That's opportunity future cuts ahead our comes believe operational doing and is sustainable of back. we drive we're into why naturally business, move the synergies back

Operator

Dan our Mizuho. from question comes Dolev final And from

open. is line Your

Dan Dolev

for Thanks question. taking my

you this Analyst give us ahead definitely maybe very that for expectation. is of a might but Day, Acceptance and nice So, our something I in really results to sense know Frank, run be great. the into model for run us ballpark three segments, by rates, even numbers sort would year heading be segment, the next broad help of the organic rates can of just

Frank Bisignano

good look, know how being mean, to know, probably to talk I you I days from probably the - Investor I don't it's like, many out, thanks call. Yeah, on we We're thanks for Dan, - Day. don't probably, are

Bob Hau

about five-six weeks. Probably

Frank Bisignano

our to we're clients' it, business our to - to we're every you - and weeks strength we'll, work the know, at we're Five-six out, going going and take going inside e-comm through business, you Investor why established Day, right, to repurchase, how talk of with them office, we're share operate, you capital allocation segments primary winning strong, long technology going about, to so know, benchmark the as prowess strategy you the capital is for our our we're deployment. why

this because not, I answer the your you how I got time isn't well, you know if know, guys, may. one. think is to but if mean you - apologize, do segment, I of I But if guidance, there I'll So you question,

Dan Dolev

did million another that actually us decline in last of BofA, decline that quick on on very split. was in a adjustment attrition. terms had a one. quick COVID Can adjustment BofA I million year-over-year trending terms due so question, some to then in and the update work Yes. We now that you of I maybe the quarter trending, how $XX give the is of majority $XX really it's about due how BofA the the or to about be was of think

Frank Bisignano

Yeah.

a at - the little outperform fundamentally to of I if our right these we stack find know technology for we're you against hard is think now which days, industry rate clients. you not given providing COVID-adjust, attrition a be to say the that

really feel office and doing the we're we clients. set product of our really, So what and stickiness the client's about strong in the

Dan Dolev

guys. Thanks Appreciate great Got it. it. Well, quarter.

Frank Bisignano

think a we'll Dan. us Yabuki And And I'll forward. look Jeff a Good the Bob legend everyone take to mean, fortunate talk Investor great I'm follow would to Thank do and fortunate you I call. you. you. like to footsteps. to you company I one - soon. having and time see has been his Day for virtual joining with to, him to running know, and would I like you I look you, to follow been all this keep forward thank tremendously this moment in I more I to

you. guys have a night. fabulous, you So Thank fabulous

Operator

in for today's Thank participating all you conference.

rest disconnect may the your day. and your You line enjoy of

Fiserv (FI) 27 Oct 202020 Q3 Earnings call transcript