FISV - Earnings call transcript Q4 2021

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Operator

Welcome to the Fiserv 2021 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 would like to turn the call over to Shub Mukherjee, Senior Vice President of Investor Relations at Fiserv.

Shub Mukherjee

Thank you, and good morning. call and Bisignano, Financial Bob the Chief President Officer. on Officer; Executive Hau, me today, our Frank and With our Chief

performance available Unless discussed these those nearest materials are Our the an reconciliation explanation references section supplemental of and non-GAAP for otherwise call, fiserv.com. on financial applicable along the are the measures of to earnings the Relations this comparisons. the GAAP mentioned refer materials Please stated, to of measures. Investor in release year-over-year quarter for with

today will expected remarks and include Our among forward-looking other operating strategic statements matters, results, about, and financial initiatives.

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

release should of a discussion factors. You earnings these to refer for our risk

will replaced term revenue, constant to now be As revenue from internal currency over a calculated reminder using which basis. organic we our on has Frank. is call, last still and now, a And the earnings

Frank Bisignano

and this all Shub, for you, you us joining thank Thank morning.

as to operating clients for and extending large credit As to by you base ranging our the services platform banks, We new new help system and enterprises. money capture to know, our SMBs commerce from movement unions, flows. businesses of FinTechs grow client across mid-market serve money our we and

outlook both second for the to the basis Investor year our XXX adjusted we year the margins of Day. fourth growth we and year delivering exit year at we growth had quarter full As on XX% provided that expanded organic XX% agenda. pandemic, of another revenue successful We operating at full delivered points. end X% our December We of originally our XXXX high by

share $X.XX. in well year-over-year growth outlook our $X.XX XX% to of above $X.XX achieved adjusted earnings original also per to We

strong and merchant medium-sized for growth. are Clover very showing businesses and Our and Carat for enterprises Clover small platforms Connect

in fraud, disbursements Clover winning payment value-added omnichannel and cross-border. such lending growth in risk, strong including and software, services are seeing and We as flows,

self-services service to offerings give us NetPay new restaurants and the allow power in BentoBox of to acquisitions like us paybacks. Our verticals enhance assets and via flows

our our client's of integrated meeting card as great business for customers OnDot and and successfully solutions for them. traction well goal SpendLabs already for are mobile digital customers. engagement surround are OnDot Recall driving SpendLabs featuring first retail online as We seeing such mobile FI small that we with and hub banking platform XXXX as ability, in best-in-class and bought

to of Data. expect broaden We of financial $XXX network of an look schedule. the banking, these core have the now our of next-generation ability completion We revenue The in later by with positive XX% forward will ahead XX is broaden years deal year, when commitment that existing achieved and initial and payment we agreement million developer year. addressable Finxact, of the progress of value investment banking-as-a-service $X.X of digital cost effect, solutions an acquire a the our our of institutions, actioned made quarter our We two proposition organization but million. clients include business. million strengthening solutions Strengthening This and fourth and this schedule. remaining closes finance marks billion, target of our in will closely that We've our First are choice, our and a only Finxact We solutions obtaining powering revenue as technology also welcoming above strategy our and synergies anticipate full digital Fiserv the continuously our Fiserv months supports processing and offer program. innovate Finxact. increased our interest the Sanchez, the were at Finxact services. for to commitment clients, We of leading of banking integration yesterday ahead synergies augment $XXX total accelerate the clients' leadership we outstanding market. $XXX financial announced ownership original partner $XXX client on across opportunities. fintechs, Finxact cloud-native to the embedded across We definitive not million end synergy investor a entire team our is large Frank to worked our this and to enrich in of his to leadership the the and team transformation solutions delivery to financial the of

to to and and future. average we X% the our in position far us investments visibility with our for our for well have thus Accordingly, last a growth very Our momentum line X%, medium-term the of above business rate years accelerating organic outlook. good into three

$X.XX, adjusted of XX% growth of XX% XXXX XX% XX%. $X.XX to of a XXXX, range to the This medium-term expect XX% a we generate to which delivered annual when two-year EPS to the combined in growth our be growth is end compounded will of outlook with high XX%. We above

business the to Turning segments.

merchant with acceptance. start me Let

to drive year investing and Clover perform our on merchant commerce focus and enterprise XX% and owners customers. restaurant platform were services of of out XXX,XXX respectively. growth hold, operating key platform clients to revenue for to systems vertical XXXX, SMBs business addressable to expands continue to Clover acceptance merchant in-store Carat, help services leading operating In their platform systems well, Clover be leading our XX% business. to small close the for solutions, in continues our and space. of reach for drivers payment the and market quarter the commerce We in to in ordering online recovery and choice more for organic and to as the of products growth These and new management on completed US and acquisition continue and provide and our to to around We merchants grow our BentoBox, world. turned capabilities, leading a delivering that business digital management the SMB

to need customers to the more to successful. be such partnership our and find Clover restaurants easily signed BentoBox, locations. restaurant example to tools order with strategic we to of addition partnerships is In a variety One from enable Google, enhance new

per the out, we roll merchant. solutions, these revenue increases we see As holistic notable SaaS-based average in

and excited positioned very replicating for ecosystem continue continuing success ever, verticals. XXXX, our XX% across transactions, clients other Closing out this in are strength is which XXXX. saw SMBs. serving across system enterprise than operating about grow Carat to up We leading the omnichannel were as omnichannel better particular the Clover We it board. in

enablement, digitally. and and access money positioned pandemic. to through wallet companies businesses Disbursements to consumer capabilities drive digital expanded sectors, verticals fast well many of Carat for as evidenced for is marquee experience a the point such the their insurance all-time other solutions base. such its have the persisted integrated important as with our well digital in demand As demand companies, growth including payback rose within and part disbursements, as to as ride-sharing of in simple high. omnichannel an an solutions become EBC Consumers through the relationships, as number disbursements want in brands XXXX,

to to continue the cross-border our double-digit XXXX. Turning strength with we transaction in see capabilities, cross-border growth recovery from

for including XXXX, into to continue breadth Looking the into forward disbursements of areas, we depth deeper and expand will enterprise omnichannel clients. our services to key cross-border and push priority

quarter Payments the segment. X% and Network Organic Moving full the year. and X% in grew for the to revenue

general strength active we saw accounts, of issuer levels. ahead now purpose pre-pandemic in notable the business, Within

innovative network the risk Market-leading average like solutions, card from segment strength reducing and and churn. in Our volumes business digital growth provide debit enhancing transaction both above are continues CardHub growth. solutions revenue debit to and SpendLabs

unmatched only presence our is In are expanded enhance and fact, greatly card risk stronger more and account originally notably for SpendLabs had but into solutions. our processing fraud, product cards to to yet demonstrating of not distribution platform. CardHub the of fit along offer power with ability also and debit more processing competitiveness drive contributing for to digital serve we banking offerings, processing network FIs our Fiserv anticipated solutions, with market than again card debit and harness this surrounds the offering These our opportunities credit mid-market to and our

see Alliance top our large XXXX wins XXXX, Genesis strengthen and XX the our offerings credit from Atlanticus XXXX, strengthen of and three continued ramp expect and to to SpendLabs digital CardHub Looking issuers, Data, including Zelle. issuer momentum with in and we

our processing segment. of quarter XXXX card growth our in suite such Fiserv line assets. finished output across X%. XX on also to competitive takeaway cross-selling Not the winning as Moving is but core account seeing than of agreement, solutions. Bank. with names an and Southern wins, banking up Valley processing, will year digital billion with a we are core core in be The offerings Bank with to We revenue in with strong organic posting more sales, out moving demonstrated Great institution Bank financial technology processing, of Southern to in Great With Bank, closing success new the fourth marquee clients. including this surrounds, $X Dollar account takeaways This expectations X%, in was complete Fiserv competitive capabilities pan and only

to already sales such It We digital We higher-growth solutions Sales choose that, market. with Great with to increased continuing into success banking digital Bank finished and entities surrounds surround digital institution digits NYCB's in solutions online XXXX, and asset of platform. the logos. future. to driven strategic is wins as continue clear Zelle our Hub, to Flagstar as are the $XX and our First in the XXXX deepen integrated win Sales to of billion power with financial Fiserv are our of combined in penetration existing strong Card billion Clients partner clients year in the our $X grew include help technology the modern and Mobiliti, clients focus of mobile new segment. to merger existing Western. the their Interstate XXX Key merger winning the fully double SpendLabs. by

announced banking including our well including and clients bank-as-a-service quickly a We as will embedded launch finance. loans, agreement momentum solutions, banking deploy deposits, Finxact, this new acquire enable modular to bank, services, digital accelerate will to cards through which as

is already and World best for Advantage APIs AllData Awards data Connect, in development category Communicator market have we the of business made award EPI an the our big the accept groups recognizing to for the strides are and intelligent leadership. our to for at platform In awards. portal innovation our aggregation the proud finance API at XXXX, We API XXXX

is and powerful with of a and mobile clients inability online serve experience along XXXX market-leading which array and to personalized our banking our into better banking our digital of and cores, position to the combination platform Fintech, industry-leading broader existing flexible us customers. beyond, Looking banking launch modern highly will clients enables

discussion our pass detail Now, to let Bob on the for me more financial results.

Bob Hau

Frank, each our and morning, segments. detail of I'll everyone. cover good you, on some Thank

for for you're we and our year, clients strong If are I'm feel our value XXXX slide on a with beyond, performance We shareholders. both positioned the our about well the starting great achieve full and following and slides, with X. along our and quarter sustained to

As up Total last growth Frank organic grew is X% growth for projecting XXXX, the over basis to segment, segments revenue three X% are points which XX% company XX%. Acceptance XXX all revenue average years. was above said, our Merchant by to the we the across which led in quarter, with XXX growth

in year, year revenue strong margin was the adjusted year, revenue quarter. full XX% total by to adjusted which also Merchant billion. company XX.X%. prior Fourth income grew grew XX% very full also to a at the the to adjusted in organic the XX%. $X.X line the XX% revenue For billion, over company segment, was Acceptance XX% up And grew for grew $XX.X and adjusted operating quarter led Total operating billion $X with

XX% margin For the basis year, $X.X operating to XX.X%. points billion, full increased income XXX operating and adjusted expanded to adjusted

scaled margin of expand growth for growth. revenue above to to XXX a last or X% driven while to This and make basis points investments continued an meaningful we a organic focus strong business, by more X% incremental XXXX on is all productivity, expect on organic We year. continue

for that $X.X earlier Frank, in which of our disciplined proud as action goal billion synergy quarter XX% XX% adjusted in billion is adjusted announce execution addition, earnings are earnings In cost to you we to $X.XX. year a of grew quarter our resulting per And from Fourth XX, share result a cash XX% December from flow the Free was to to share $X.XX. drive quarter the heard reached we per last $X.X value. up XXX%. quarter fourth through conversion increased

strong year, driven of capital, For flow well cash as $X.X income increases by as billion working and capital full a infrastructure growth conversion net technology innovation to was the free and XX% in to revenue of offices. our organic investment and in our acquisitions space integration collaboration clients, associates we our for as for investment return create with estate real to and world-class

our in products New XX% hub will innovation end particularly in between year. estate and free real of net income. technology expect we and be services and North to to we tail technology flow growth this and occupy investments conversion XXXX, the and For cash Investments Jersey which new XXX% infrastructure later of accelerate Central,

X. for XX% XXXX. volume results to grew in was Acceptance looking for segment and growth the a our XX% in the Now segment Merchant XX% starting and XX% the strong the very Organic on and Global and Slide XX% respectively. transactions XX% and in year quarter revenue quarter

their further including our this a of clients, Global partnership Building in strength in to client our Clover growth, seen we of off quarter globally very Clover business, positioning in UBS integrating a the end for client Transactions discussed fourth Excluding Gaming notable and with XX% chain and a enterprise a arenas ended quarter with driven Bypass an product for year exit XX% by best opportunities with to These $XXX quarter, processing and New in acquired quarter as the the GPV client to billion a the and of upon the wins supermarket ago. XX% as year-over-year serve clients improvement XX% in [indiscernible] the and saw platform XX% strengthen to XXX the Carat mobile success the growth and the strong wins University XXXX. Wegmans, respectively. arena impact year, regional offering build relationships highlight end. merchant basis. XX% our volume quarter on we Papaya of omnichannel with growth one years and grew the including higher exciting location last XX% versus we opposed annualized of We've with the quarter, in home momentum the for York. wins expanded sports our or global our with continues merchant comparable transaction stores leading of XX locations such and

ISVs the broaden international through Our are our takeaways. We we XXX [indiscernible] several and banking of an merchant processing of UnionPay and Bank International CAGR. ISV in in partnership We across volume one total wins competitive payments, year bringing the this XX world's quarter including with across region. for as to global on payment as that acceptance both footprint grew ISVs a with to XX% expanded had winning well UnionPay year-over-year sign its signed the to the Connect Clover and XX% quarter footprint notable the this are for largest International Fiserv's quarter cards networks FirstCaribbean Caribbean new

Bank on increased in processing executed Adjusted income we merchant Additionally, for quarter an agreement with million National Acceptance segment XX, margin adjusted operating XX% XXX $XXX basis up Through by driven Australia in the and the operating to operating XX% Australia. was adjusted strength. improved to points XX.X%. operating $X to top in points XX and grew billion margin continued to XX.X%, December basis line adjusted income

of of we'll basis may Before the I third outlook as a anticipate for have in alliance the than sale a we portion have the to a our fully contemplated merchant impact you partner. noticed our filing, is XX-Q back adjusted in our company and This less segment, revenue XXXX. point XX quarter on merchant leave in book

We expect to current the the in quarter. close transaction

Turning to in quarter, and segment year X%. in payments organic of slide The posted revenue of eight. a growth network resulting X% full growth the

came and Solutions, growth underway manifested with $XX announced billion an over our win mandates over new financial fourth credit Federal million our Day, as as million the a offering quarter, in transactions as average debit a the card organic in the of Investor $XXX The since. provide the agreement institution well X of bill Within payments XXXX well Within segment pay and with continued to outperformed are December we quarter. Randolph-Brooks Credit quarter, grew capabilities. slightly processing strength assets we members the credit Issuer our segment institutions at in awarded Union, in Credit and card other XX% an on-boarding business revenue with For notable was services, rate. services our for the in digital under headwind.

for a have momentum well completed another and BBVA competitive M&A Data. of We for Alliance win. competitive continues. is underway on-boarding the consolidation Atlanticus, an Genesis, On-boarding This and takeaway; takeaway

for our PXP clients and on XX% multiple offerings up Zelle fronts. the Consumer count In with XX% mentioned UnionPay agreements continued, content of demand wins we demonstrate card also processing merchant clients quarter. wins long-term both up to Zelle International. ability addition These in I issuing earlier, with and transactions the live the number National Australia to on in serve Bank saw our and was

and Finally, within we our from the two market what in health enterprise-wide extend broadening has chosen Blue of the traditionally offering. client bill demonstrating process vertical, Shield our strength pay, plan utilities of to digital of part their high-growth relationship care notable health has in and the with focused leading the a as this fourth have telecom in of segment been transformation. California, wins Fiserv base California, quarter

was health nationally given for margin Adjusted robust plan second to year. the was Additionally, for care in their our points to technology segment through tough QX comps. XX improve highest QX $XXX was Fiserv CareSource, the operating to experience XX.X% only quarter income of to adjusted recorded a operating member million last the the competitively segment, down second margin X% up margin basis operating recognized platform. and selected non-profit

$X.X billion to points For operating the and XX.X%. margin was was XX X% income full year, adjusted adjusted up to up basis operating

and Financial segment. outlook revenue Technology full medium-term Turning in to organic this the quarter grew our The at within for X% slide segment X. for fourth year the

in over QX, the grew Mobile in to of quarter marketplace. processing takeaways. deposits Our the in grew were quarter the margin points In core fourth year, X% in which to operating bringing year-to-date in XX half X% basis wins X% account and last more core year digital in Adjusted banking to income than capabilities and Adjusted segment new up operating the digital while increased million self-service was clients quarter $X.X up continue the over ATM solution year. we prior the added offerings to XX $XXX XX% win us billion. to deposits XX the XX.X%.

The adjusted and expanded our expectations. the XXX was the The to and line tax XX% loss full with rate operating the margin year, $XXX quarter For both effective in was basis quarter points expectations. year operating in with million full our XX.X%. corporate for adjusted line in adjusted

we approximately was $XXX XX%, platform. rate cloud-native includes across disciplined capabilities tax We benefited through bringing and items. We our We in strategy, scaled sheet, acquisition our deploy be our repurchases, acquisitions driving few demonstration acquire of invested to another acquisitions. in pursuing we M&A expect further banking of value transactions high-value share XXXX's strengthened seven best XXXX capital XXXX Integrity as allocation NetPay of million And shareholders our effective Frank XXXX. tax up to our slightly from planning solutions. discrete developer balance are approximately mentioned, to strong that through announced fortifying through a investment growth which the organic and returning Finxact, Payments, to as a BentoBox, to portfolio total our positioned completed of

Additionally, we returned X.X $X.X billion $X million this the quarter including billion to for shareholders through share fourth year, repurchase in shares.

repurchase outstanding call the more me we And turn since XX With December merged. that X.X shares let million have to billion a full was ratio on adjusted than total The to decreased back times, EBITDA to finally, authorization XXst. Frank. debt We $XX down nearly debt turn remaining. of

Frank Bisignano

another accomplished results double-digit growth. the we've Bob. very adjusted growth quarter proud of adjusted I'm revenue Thanks double-digit with of EPS and

believe adjusted growth and will breadth performance, a we XX% the to organic per of well X% to Given revenue growth our $X.XX XX% as $X.XX. share history earnings range strong of to X% operational to our deliver we and of as portfolio depth

business revenue our of within each our outlook. the to expect We deliver growth of medium-term range organic segments

I the an and the Clover, several particular Finally, growth in with in segment you focused of for will the invite merchant key on as driver investor business participate acceptance we emphasis call on weeks, hosting to be a next our company. a

to we financial continue and In associates on addition delivering to results, communities. on our our focus our

the where associate and community consecutive Gender-Equality agenda, our talent. approach to designed themselves. deliver we incorporate Fiserv In responsibility named remains year, and the was January Our time sixth of recognition. marking philanthropic XXXX top engagement on our Bloomberg to to our inclusion invest thoughtful our Diversity social year for and ESG speak results a strategic to Index, for of this corporate the current of the decisions is and efforts

Corporate consecutive year, Rights place Equality work been best second to has Campaign Human Fiserv the equality for a XXXX the For in LGBTQ+ designated Index. Foundation's

relentlessly for Families groups Syracuse X,XXX XXXX, positive to the us our matching And in donations to our proud community the along by and thanking philanthropic our of look will in for all With Military fourth quarter Fiserv national $XX the associates businesses drive. practices to I million line and XXth million of in the you hard-working more Institute Employers to initiatives. five communities allocated better programs we help serve its world help Veterans of Military category. year XX,XXX-plus and open list, businesses I to on the associated was quarter, operator, commitment for Fiserv on QX, in XXXX, for campaign, and associate of our number of ranked and Continuing COVID-XX season affected Since tool I and globally. University. questions. over employees. $XX pertinent clients top from we the doing contributed is year, working an corporate have LGBTQ+ am fifth community the had the Now the giving forward row and policies, and extension minority-owned impact ranked corporate to four by around support number with that, pandemic one our have Best benefits during CEI close designed XXXX Times to partnership shareholders. Fiserv donations In at in and small in Vets please initiatives our this announced with a the businesses, affiliated benchmarking

Operator

from Instructions] [Operator would ahead. from MoffettNathanson. We you. open Thank like Please question for now Our to comes lines Ellis go first Lisa phone questions. the

Lisa Ellis

to question a bit range. guys. little for stuff it the for a in to return Merchant here. to expecting know just Acceptance XXXX. hoping I Good outlook on morning your mentioned had with I you drill you're Hey, good medium-term

I that's X% to think XX%.

Acceptance get Merchant and of out in little expecting looking double-digit the maybe you in then you're drill on out back of for outlook? in your looking you to for And what to then bit into Clover you're international you are to out big what growth? could drivers XXXX give you Thank So, a of as you. look business two confidence that there

Frank Bisignano

to driving So, XX%. first yes to of all business And yes X% we're double-digit.

I on think happen there's it a well portfolio can whether believe Dacia very will strong have multipronged and all in effort that specifically here. in Clover, will our the of visibility And both be of obviously top then growth it US business, this in the Carat. performing partnership And in we of outside very continue year. assets very, it on the out in the regions very, global you US are deployment in ISV see have during also. that partnership be we a the we lot that whether and the then to course the drilling. us see how Caixa you happen expansion layer extending But And

So, you growth. see expect to should Clover

business and should e-com strong trajectory you expect growth. fuel also should ISB see trajectory to to continue our we as and continue to But expansion. with Carat in to the ISV international invest You Clover see geographic and along expect

Lisa Ellis

you. Thank Terrific.

Frank Bisignano

Thank Lisa. you,

Operator

ahead. go Next Tien-tsin line from we'll Please go to JPMorgan. the of Huang

Tien-tsin Huang

for know Really ask margin investing I as X% this plus to the to productivity. Yes. Where to the X% growth to you do aggressively? organic well on just happy want segments. the have year. outlook revenue to I integrations more see you are some implementations for and much. get so Thanks there

would be So, any terrific. Thank color there you.

Bob Hau

Frank can I'll Tien-tsin in. start and Yes, jump

all see in you'll segments. them continued one each three investments trajectory. a of of our growth have think different I Obviously, slightly

continued payments. Lisa's talked medium-term As of solutions digital to bringing perform X% our on to all about expanding really Frank for board our the And us to for we you're to all where of expect to seeing for X% X% new to in segment on us integrate capabilities outlook our clients for mobile across growth range and the the meet want three focus just FinTech XX% X% out segments to the merchant our X% the they in comment answering solutions. obviously drive

my new You incorporated Bank, heard the wins Australia UnionPay with in them. that and payments about had talk two individual with prepared merchant National me remarks both in contracts and

to invest in continue we'll building those out capabilities. so And

in acquisition SpendLabs. Ondot capability to around our digital continue We with our invest CardHub with

Our solution a focus ability we earlier banking continue be with capability. bank cloud-native will expand we will Finxact digital that And ours marketplace. solution our online once out banking a this obviously, we the launched in solution year, close to as build of that

Frank Bisignano

Maybe I'd things. say other one or two

We have you've wins amount heard visibility of about. to tremendous the due talk us

are sales could have for growth. and making, in the future had You momentum we investments very, about that's I see we that, very cycle, all future growth. also or the think

being we're is front to us, talking lot and going are to term products in the how what's very build. building we right But about X%, pure visibility have to in we're of we also So X% medium of towards to here future offensive integrating a the it. the

spending, our not really year's so this it's is about for future revenue think you revenue. year's And against when

Tien-tsin Huang

you Thank the guys. details for you. Yep. Thank

Frank Bisignano

Tien-tsin. Thanks,

Operator

Jason to of Kupferberg from Bank America. we'll ahead. Next, of line go Please the go

Jason Kupferberg

generally guys. Good issuer felt some but And Thanks. pretty by merchant in may easy see you too? maybe morning, on the particularly Wanted QX? be just color us thinking in and January, impacts you might little you about know to a growth December Omicron what bit revenue into on Thank should comps give have quarter side how you. we I then that first segment? in processing how have there translates just

Frank Bisignano

it, across basically affect credit, want add? and a about the view Bob, saw We had inside I'll US, and effect. definitely the mean, could that, anything December, I the But spending think into January when nothing definitely you and through start, even felt dividend systemic came it spilled I'd it Bob an to fill-in. has as general than in more it US I – issue you there. as it say. that, we outside you short-term

Bob Hau

think starting dealing restrictions in No, closed US, in little the regions. kind we're restrictions Jason, number particularly how of Obviously, region-by-region. with out Ireland. a a lifted January those I still various globe December, bit left. country-wide Omicron. the the got starting We're we light. in of a see Europe Europe, Germany And see to UK, consistent is program. has It's to It's not to

we so the be progress four we expect as of that expect X% do X% range. each I quarters quarter. things within the And to to improve to through

that's that. January well with quarter So I have impact could lighter, think QX there But being don't quarter well that a little be above any we there. below some bit to and another

Jason Kupferberg

color. great guys. Okay, you, Thank

Operator

go Dave we'll from to Koning go line of Please ahead. Next, Baird. the

Dave Koning

Yeah. guys. year. Nice Hey,

Frank Bisignano

Thanks. Dave. Hey,

Dave Koning

Yeah. Thanks. Hey.

So a couple of guess I questions.

on and of all, organic kind XXXX. full payments, be year X.X% First like of X% would saying about you're X% looked to XXXX it

kind think XXXX I'm what would the – through deceleration? So accelerate of offset probably to just factors, accelerating like kind to decelerating debit and of in what decelerates, then propel debit should thinking I growth but the

Frank Bisignano

Yeah.

some We the December second from dynamic. have the it half see We going of that credit debit. part that live lift wins January XXXX. the of was started certainly in nice seen some of Again to issuer really deceleration

on some Atlanticus those to from XXXX in lift us and XXXX give a that and the early full So yet board we've lift. with here year got of will in good nice ADS

digital our CardHub debit our bill that the the business opportunity real is and see about into clients we an help I contract bring more perform that think we of state-of-the-art stem impact will new and solution the broadly, credit business there. some XXXX. both services issuing And as So contract headwind our fulsome having and wins we that with a certainly improvement new dealt implementations and wins very in will capability or on in some The we pay credit talked nicely.

Dave Koning

the kind Got a down It you last segment has. of acceptance book. secondly much you. the QX. normalized just are looking X% know in X% back maybe also sequentially the we -- don't But looks years in mentioned is pretty And impact X%, Thanks. down And back. X% selling were to was that how kind I like of I mostly sequentially? like few

Frank Bisignano

Yeah.

almost We're take book, to closed expect quarter. we first through we sale place of it It halfway do the quarter. soon. So isn't back the yet expect but this the

the it's to adjusted -- for it will the for modest than XX company year. the year, a So revenue impact points basis a less modest be to the

pretty line. I you're any terms impact But from a don't not in largely QX. the of given seasonality I it's yet closed. that in go expect QX QX -- to So to difference think QX you small particularly as

Dave Koning

guys. Thanks you. Got

Operator

to of go James line Morgan ahead. go we'll Stanley. the Please Faucette from Next

James Faucette

with and slow-in you very quickly in have markets. pace to seem especially up I debt at Great. topics. you Is acquisitions recently. on wondering the And color valuations stepped we've capital public seen you much. that opportunities that incremental ask around in creating acquisitions your can for buybacks Thank of least between allocation I'm capital the allocation Thanks. to those on acquisitions And Just or get to flexible and dynamic sense and think? be do you wanted how love reduction?

Frank Bisignano

very, integrating watch we properties I we've very we we at mean invested. of growth I and further mean, talked where with grow deploy accentuate further them feel we here. our have think appropriate Two, to very, we're Also ability back rate. them, integrate nurture that invest the and And that confident had capital accelerate. And we've accelerate to all in good properties. I them. faded Yeah. million We these in acquired and early, properties about $XXX then doing -- also

a was across core. bring things complementary whether of product that you think should I So our are expect ability segment, our ahead all restaurant it's about strategically a time, whether to thought these it

Our companies utilize the in mean, and look office. succeeding able of acquire at deployed, completely then scale. ability and our to founder-led I OnDot clients' is already without it integrated an them you some and that's to be scale across these

we feel how thought about middle against So deploying appropriate And was that deploy strong to business of year to Obviously, you billion. way ability in think it very ability of $X.X that's to model shareholders us should capital the good capital. return we the in to about We good also about our feel because use. our to or had a acquisitions. us, money the the where they're all, And is. platform's scale repurchasing, fashion, we their

it's So, approach. I very a think, balanced

Bob Hau

deployed Frank. M&A That's We across on either/or, billion billion, we've shareholders. it isn't highest kind fourth the board. we done capital million or We including quarter. as put on from It that XXXX, repurchase. isn't to James, emphasis last an In returned share M&A. just point the of in an $X.X a the spent so $XXX to repurchased $X Fiserv, $X.X an billion

since the continue our leverage to and times, We same time, invest down merger. turn year we X.X organically. to full that And turn X.X the a really all at in lowered done

is it variety flow deploying free is cash the in and what So a different of ways. portfolio about across really significant

James Faucette

Thank much, great. guys. That’s so you

Bob Hau

James. you, Thank

Operator

of to Suisse. Credit Please go Timothy line we'll Chiodo go ahead. the from Next

Timothy Chiodo

question. about a lot across a of taking to Thanks the the for line few inflationary the top Great. want I impacts to segments. talk

valorem within segment, And the basis proportion that bit points, the maybe Thanks hardware maybe acceptance on comes is for there's fintech, then revenue. a via of with of that us much the could ad pricing the there just that But little fees into or how you rest touch just a remind cents-per-transaction the worked the of of banking. on revenue, core Within lot. escalators obviously, other? also could on CPI-based a contracts or all you

Frank Bisignano

Tim. Sure,

later you hit I to question that relevance of them. sure all make to So

partners have merchant variety we of as point a foremost, as of of of you element it's certainly methods of distribution our and channel a a First through different direct our through generation other mix revenue is, as variety or different or whether the course that driven business, for And driven. venture. out, joint a well channels, volume a transaction in

higher a is on transactions, lift is merchant up XX% get and volume activity pricing the goes Inflation is feel on can good a the the we'll to transaction-based. market. about So volume lots which we us. XXXX us the that dynamic our pricing will And based volume Ultimately, about natural give of revenue of that ways higher volume as be based, activity volume in roughly of XX% revenue business lift about that. in comes that different on

Fintech good to you in. segment, XXXX, go have the be in clauses us contracts I If those a of turn CPI probably certainly the in it's level the CPI the increases of it's the you percentage a the fintech a of or fintech that have account portion CPI portions don't a -- of index top our -- excuse will as but segment for head, lift my highest we and for that processing it. in have me off core

Timothy Chiodo

split Thank those Really you Great. sharing for that. much within so acceptance. appreciate

Operator

go Wolfe to line Next ahead. the Darrin Peller go Research. of we'll Please from

Darrin Peller

it's the intensity putting into we color have, not growth a versus which the business? one what breakdown the strong it guys. the investments the follow-up. the XXX% with interesting thanks just about cash next not free few thought term, of weeks preview strong range really Can us the begs stay we been? on Merchant on But capabilities. I is good get feel the I of median you hosting deployment on you're billion of and call to your $XX Obviously, Thanks the next just the capital free touch this kind growth was whether are XX% few should I'd cash comfort of probably $XX given Clover. more and billion question color give Hey, over or that what -- just guys the that? it just on also can is has that? whether love on it process or thought your of kind for anticipated. goal and historic guys. this capital think little you in sustainability to in quick still to And we how on then more and years, then Is the And Any business conversion of

Frank Bisignano

is growth when better the with about think concept on being start for give too. a get Yes. talked Why first? good cover to per created that don't real value you you really all The to revenue you impact both. to the we that the to at the understand each we We client the rate. look e-com said Clover's merchant And about average business you

here when power platforms. of have So could long-term you both ramp what that it, you in look see we the at of and those

want office about rate it's about to we're be in to that long-term a of delivering here. conversion part if answering for had us -- I ultimately integrated talked think the all hasn't about a growth. in doing, what think accelerated number We acquire $XX delivering That at the changing as first. changed So all would you we deploy. experience just it's last capital at And not designed about products, solutions billion and I client's changed

which greater has approach addressable a So in us as many it. cases given functionality, we're market total we also building

is and terms scale us size offensive The its the that completely base, beauty of client and this leaning opportunity its it's in and when the complementary scale more us of two the avails So into we Bob? the actually is platform client in and size imagine opportunity. really we assets that base about growth. companies and to and together than the nature of put ability invest

Bob Hau

$XXX than increased are we we traditionally think by and speed did two XXXX spending integrating Darrin, have with that million we guess in is part to moving the the Yes, acquisitions. I $XX pieces is have the a new One $XX I is on for our in driven faster three we add that XXXX I'd things. one really around

part we So, And that first a acquired our had We a moving to few within is software mobile a months, integrated of capability as showing solution started speed. integrate. some a where in truly OnDot and XXXX. classic the have it we it sell example of traditionally faster actually banking in integrated it offering. we a taken bundle might We're might integrate longer as really a much bit but at the into

capital we're the swing that. of Fiserv about And piece talk across with heard the you associated a spending. up what respond after of First years spending we're want is this to That's employees really need some real the back on are to out third the prepared enhance spaces in that home. infrastructure then our merger as world-class think our building we collaboration. couple remarks office and been what doing building organization and estate infrastructure. into we to That's now technology Data Secondly, us technology on the working from collaboration of finishing bring

be will Jersey and that new year. in occupied North New built Central, the hub You later our year out technology hub heard and us earlier -- technology in this announced innovation

shift you'll that at going the with this cash the forward. kind and technology real off Data merger free see tail a of we in end First associated this infrastructure spend, flow some and see So, Fiserv of year will estate of

Darrin Peller

That’s really helpful. Thanks guys.

Operator

ahead. Please Thank Evercore from ISI. comes David our And you. from go Togut last question

David Togut

Good Thanks. morning.

walk bridging margin operating the Just revenue. question you on impacts structure through on expansion guidance the to earlier adjusted for cost and inflation Could impact on into what's of your inflationary built the XXXX?

Frank Bisignano

we guide. war look talent a within accounted world in I inflation. say, in would Well, the there's And definitely all, and model our you that first there's we've an on of live when Yes. definitely for

We the to a getting we've maniacally been talent, and these attract create outcomes drive that the that and the in continue very us best focused talent, on retain best continue that innovation environments to how forward. work are manner driving gives

Bob--? know You

Bob Hau

but invest also number saying allows leverage Yes, scale continue I growth that topline improve X% provides with to company. our one the us business operating on to operating margin nice punctuate some X% that will in to

opportunities record for years synergy, continue long have productivity. to we We or also strong integration but have that's savings last a of The good track couple of called been productivity. real

have that As least of at comfortable XXXX. basis that points margin improvement feel such we in we'll XXX

David Togut

plus, is which conversion XXX% the XX% XXX% normal And cash saw XXXX as we flow free to forward target for the Understood. to historically? the then new going opposed

Frank Bisignano

ready not would I spend that that given at to estate and update I about expect the XXXX. say this – spend, of that. that technology down as not we beyond. and drift talked infrastructure earlier, point, talked some that XXXX But real we're exit about Obviously I to No, I

David Togut

you. Thank

Frank Bisignano

much. very you Thank Great.

Shub Mukherjee

our All to a for time feel out and have reach team attention Please to right. great today. Thanks Thanks any everyone your with questions, day. their free for today. IR

Frank Bisignano

you. Thank

Operator

call. in at disconnect conference That Fiserv of this participating concludes your earnings time, a Please day. great conference. for quarter fourth the all you have and today's Thank XXXX rest

Fiserv (FI) 8 Feb 222021 Q4 Earnings call transcript