FI - Earnings call transcript Q1 2024

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Operator

Welcome to the Fiserv First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Julie Chariell, Senior Vice President of Investor Relations at Fiserv.

Julie Chariell

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

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

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

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

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

an X As serve quarter a a new to reminder, of the segments explanation of filed see X-K I'll this starting we Merchant with Frank. reports in Form the clients. our the year, first recast into the Fiserv XXXX for and and segment. XXXX Solutions current now And segments: how over to the turn that, on our March Solutions Financial and Please call align XXXX, of with on reports new XX,

Frank Bisignano

Thank to to start discuss with you, quarter joining us delivered strong first a you today thank adjusted results and year. strong Julie. first our Fiserv a quarter for the all And our share adjusted XX.X% expansion. up $X.XX, per which revenue basis points. X% XX%, XXX margin increased earnings and growth operating operating Adjusted reflects was of growth of revenue continued and margin

is adjusted XX% earnings which $X.XX a prior half quarter. outlook stronger healthy to is We margin $X.XX expectation range growth $X.XX, XX% XX% performance of first growth. had line This of us range organic outlook the consistent toward XXXX of XX% top with from our growth, This raise our to to growth organic leads QX the share first to in coupled higher our in the to growth. full per to XX% of of revenue of year $X.XX with

margin improvement. expand XXX We prior our points of XXX at basis outlook year least for now margin adjusted basis least operating compared points expect at to this to

know, reflect Financial client-centric you roughly business with and the Merchant half beginning segment. to best in today. As realized Solutions is business of half This X the with we in model reported engage our other clients the solutions how segment Solutions in now this our quarter, our segments,

Through retain business providing key our operating approach while this to variety solutions our capability. fundamental delivering change, we of for clients' systems a of value-added processes, enhanced run

but recurring business revenue margin and offerings. and incremental higher a model cloud-based services software our within performed with of and our business the Both margin combines scale well still high Our growth expectations. and processing consistent higher segments

revenue basis. ability our macro with reflects growing organic XX% QX Merchant performance value-added and grew an an to by adjusted more on and This new solutions. outperformance a drive XX% clients, grew Solutions' on revenue retaining basis. adding adjusted environment clients providing along X% solid and and in them Financial existing organically Solutions X% with

on April a the At Index from Small X.X% The X spending early Fiserv in is consumer short-term The quarter, showed went The macro spend up tracking in the shows million the is to of resilient. also was first QX read resilient amusement, that growth mostly a U.S. spend the in of merchants X.X% dine-out XX% in Business and at rose remaining U.S. nondiscretionary slightly level, point average. hotels, QX spending ahead the based small remains activity categories, These on consumer QX. the index and spending that metrics to roughly rentals. upon

environment broader the to Turning banking. for

the year. services backdrop, for and highlights number potentially interest that business are rates provide. of interest income, signs we Fiserv's of clients' a and given we seen there of an QX having on With on high the While there pressure in our this macro have spending lending, for tighter not net impact essential the some are remainder IT

XXXX activity In achieving November billion continue targets Day, revenue our set reach operating Solutions, we in expand margin. towards first $XX we Merchant including in reinforced to our quarter Investor as the in to progress adjusted

X the this discuss that outlook. support of Let's drivers

to in and continues track consecutive business growth revenue small the and boasted lead expected a remains XXXX. solutions. penetration billion on by SaaS scale market merchant XX% of merchant supported new and the $X.X revenue XX% in Clover Clover to First, of quarter value-added in second reach adds growth, a

a launching we larger our Second, a new professional the kiosk software solutions In restaurant expect the this the Around half called begin year. to vertical. system first and Clover rolled we In Clover new products we ordering of kitchen for we'll rolling multiple device are the the quarter, Compact. second offering services for vertical. out display midyear, year, be out the additional

in last Third, partner is joint our continues [indiscernible] from to the are Deutsche seeing Clover our markets leads from Fiserv. differentiate remaining demand Demand pent-up venture Bank. international Germany the in and we portion year, acquired are progress joint of the bank for where with In strong for our we Clover. venture Netherlands, building

launch of and over prepare we Asia QX and are year. Argentina, it to X-star in as the to merchants adding in In properties Mexico In having the signing Grand Hyatt Pac, continue Malaysia. hospitality we in leadership, our Brazil Singapore to build in the reach Clover on market to XX success we high-end second half

for as We continue the the up we prepare region. to in launch APAC Clover distribution ramp

added have partners already onto our ISO PayFac QX, and which KPay, partners, platform. in more onboarded XX over XX,XXX We including merchants and we

penetration QX, Australia, seeing the expect on ERP newer mid-market with and continue with for XXXX. payments business, global Clover SnapPay continues in a In a our penetration Clover opportunity emerge reached that our offering are growth and Fourth, capital Hong product, feature a to Clover integrates We XX% BXB rapid we solutions. rise. value-added solutions in seamlessly vast launch merchants enterprise Kong in mass full Singapore to In deposit. SaaS, popular

state additional SnapPay Texas XX% digitize to in activity. QX, over [indiscernible] for poised and for up XXXX, year. the continued this signed growth an revenue After collection we revenue in is with wins had of SnapPay strength Energy government

into also clients. reach SnapPay, more opening our reseller major even to agreement We the first into for mid-market opportunity

and add include the success to festivals. putting as across devices NFL and relationships courses enterprise in merchant the Clover new on SMB Fifth, we and stadiums in XXXX, sport in thousands new venues, market. the new that are Building and well Venues of continue MLB, XX the we saw to Clover markets. amphitheaters, golf over added finally, as NCAA large-scale home teams

and space in QX social business, in is serve enterprise X merchants, X signed a around a and breadth a volume of markets our XX%. presence gaming opportunity gaming, billion the now In We top X. as growing growing XX which address social by and industries such new in we wide this including more clients $XX of

allows seeing are of good In ways enterprise a to we unified These are just single the omnichannel platform. set the plan layer for clients count orchestration targets sales, commerce our We that operate some to we've QX, XXX. Commerce achieve X Hub a uptake of surpassed client XXXX.

display. demand innovation in new wins traditional to on for X Financial full and modernization posted We the for fintech QX. Turning segment, cases is Solutions and use

expect as progress capability and XXXX, finance Although the banking this cloud-based contribution flexibility a in be to significant revenue embedded core reinforces and platform. Fintech's we do not

all at X. Let's deeper a look take

Brazil, bank First, from into Fintech digital for core will plan. new be the current U.S.-based Fiserv a Banco platform a

on upgrade businesses Fintech the access with platform. their client that a consolidate Fintech to volumes and payments deal Second, decided ecosystem. Fintech the won the manager helps This program

of current they our sponsors solutions finance This clients we'll a find ties merchant signed institution to embedded Benzac services. Fiserv be as deeper with build for aggregator Third, SMB clients. financial Fiserv these clients opportunity their into as working lending

that a Fourth of U.S. to major part and demonstrating time. won its the for much by opportunity of bring capability government Fiserv landscape our will business. larger become growing and can parts broader financial other encouraged in deal today processor its modernization pull as across agency services and to finally, Fintech core account the It's it plan over clients' the we're which is clear a the pipeline bigger Fintech

credit to on card it as credit following partnered Robinhood of We XX, the program acquisition Turning is issuance. which its launches processing. built Fiserv with gold

its X financial of M&A with presenting our clearer. on United leadership We onto examples risk grows card our and These how Finance back more that more be House Ali institution as Bank, we'll of portfolio is our technology platform. acquisition and also relationship opportunities are migrating of extended the Kuwait

digital core and in our clients other payment solutions, account demand among strong. financial Lastly, institutions remain

Zelle, second signed and access RTP, these of examples is of institutions where One payment the leading the this still XXX PXP financial real-time is more in to reported largest provide remain QX. rails. emerging fastest integrator systems XX% transaction we've and the FedNow example that's where we to platform growing third-party than growth A

CashFlow long-term And biggest is perhaps medium- Central. to our opportunity

we've U.S. Citizens And banks to that product in this small this including announced large February are The business summer. payable, available Bolton receivable X Bank. sold marketing Our solution will banks, we accounts and Bank as resellers. month, it to be account currently and Bank already

Central expect financials me also seeing. product this walk turn to you to call through we year. The now we later should by are is let to the to the And are and detail. great a You encouraged start, off over CashFlow Bob through see in Clover what distributed more

Robert Hau

and Frank, you, good everyone. Thank morning,

and cover segment I'll total financial Slide on along with on metrics If company and trends our you're on performance, detail additional starting following slides, X. our

continue demonstrated our performance margin quarter and drive line growth to to top deliver expansion. First ability

operating to XX% operating $X.X to billion, company XXX total adjusted X% in quarter adjusted an points First $X.X grew year. margin of the prior XX.X%, grew and versus resulting adjusted of increase basis revenue billion income and

to was of historical our you haven't comparisons. you encourage reporting. our filing XX And a review already, March as for recast revenue adjusted from I our X-K As if part segment reminder, realigned

only postage The postage. adjusted prior prior represents significant to recast change the our account years pass-through In of numbers postage revenue from the our activity. adjusted output for include in majority we to pass-through reporting, a our which revenue small the business, our all

as We output adjusting are well. non the postage revenue now pass-through out

grew adjusted the organic which our XX% reporting. and Solutions lowered The organic an XX% better aligns was a of particular periods up change revenue. strength revenue, in Merchant Financial and our slightly with internal revenue recast the Solutions with revenue X% ongoing organic On basis, quarter, prior growth in in steady for

earnings XX% to First share prior to year. the quarter $X.XX $X.XX increased compared adjusted per in

QX earnings XX% flow per in share for quarter grew full $XXX for year. million. adjusted level Free cash the Our anticipated above the XX% to well was the growth

apply with line headwind during in tax credit it in last normally seen of this we payments. we expect described second to of tax with half call, our we this While payments the and timing is expectations tailwind in year when lower flow the to what cash the become timing half a this earnings number second cash our quarter's for lower the is quarter, This credit given program. the in consistent is green than

$X.X continue the for to billion expect year. flow We to cash free generate in

in have growth a Without revenue Turning by to Organic segment. quarter. the on in in interest above-average benefit, Merchant was This performance from Solutions XX-point includes organic been by transitory Starting growth excess segment would the benefit and X. Argentina. XX%. Slide XX% driven revenue this inflation

On for XX we've offsetting Merchant the includes total percentage headwind the growth Argentine impact headwind currency point a Slide the X, of segment Adjusted Merchant currency adjusted devaluation Argentine was the impact of inflation peso a It Solutions and excess revenue impacts added XX% Fiserv late year. the of revenue. in December and which quarter. interest on revenue from last devaluation, and and from in the summary largely

levels, headwind foreign XXXX, happen normal tailwind. well. would currency which If medium We Unlike to back term. in from as anticipate headwind exchange than the was and the inflation fall currency the and the ease interest in higher expect we QX interest inflation to 'XX much in

organic to growth XX% Moving the was was volume growth XX%, revenue business lines. and growth revenue and business respectively. Small Small X%. business adjusted

the few a organic revenue Argentina interest adjusted mentioned, As revenue. inflation boosting to growth, over while currency I excess headwind devaluation last the is and the from quarters, in is

annualized the Clover driven pricing. of an basic in volume SaaS shift spread payment was VAS volume growth penetration XX% XX% in by grew our plans. and continued QX on solutions, of Clover value-added meet The and XX%. penetration revenue revenue between target Clover some a first from revenue higher growth reflects mix quarter, our Rapid from to reached XX% and Deposit Capital, XXXX. QX, The in pace by up increase and channel XX%

penetration. capital there And a examples advance X%, organic some transaction products, plans, several allows Enterprise basic working the tools, transactions are Clover value-added and access available with virtual to is and developer by revenue solutions growth invoicing reports. while just VAS These terminal, of package respectively, SaaS for from short-term our includes daily car instantly e-commerce Deposit merchants was XX% growth money Rapid higher are standard fee. driven sales adjusted of program. Clover XX% Clover. and Capital the and

some interest shift inflation business benefit by impacted from small Argentina, excess includes inclusion this products and lower the year. as start was As to X transitory also in growth in of but part our the growth in business, of organic segmentation

by and Finally, revenue processing X% adjusted organic and respectively. grew XX%,

our remains mentioned existing relationship. the processing expansion represents strong. an client in will for our the driven they with quarter The established in revenue increase fee termination partners past, ongoing this into This merger knew a where canceled a where impact planned As not processing own we the relationship who this client from new was geographies. back-end geographies by

Excluding Argentina. be X% revenue Overall, anticipate revenue flat continue This the we business declined in line to roughly revenue, revenue no term. from the processing adjusted quarter. periodic over the to medium processing has

adjusted below to were If points line. up the million In with would still accordance segment interest with Solutions increased income, anticipation operating operating anticipation quarter. Adjusted XX.X%. the adjusted for the a basis in included from operating expense expanded have strong to the revenue recorded XXX points margins operating operating margin from the Merchant in income merchant GAAP, cost income basis is quarter XX% XXX in $XXX interest very

on grew revenue Solutions year to with in X%. the X% Organic Turning line segment. of X in quarter, to which the Slide outlook Financial our X% is full

of revenue organic to unemployment from Looking continue disability grew and program. we and Dell at to revenue recipients transactions by clip XX% X% Issuing and demand Digital launch and of under and California network factors, by respectively, Employment driven and lines. healthy adjusted for at clients several respectively, the at X%, X%. a RTP organic and money integration. cards XX%, each payments including strong the grow adjusted Development continue the FedNow Department business and see number to benefit clients grew

and X%, Banking, X% revenue declined organic and adjusted respectively.

periodic banking X%. fee organic and license revenue, termination Excluding revenue grew

points X% the by for Solutions from driven XXX segment scale income was leverage and operating operating Financial efficiency. was to adjusted margin $X up cost quarter and basis First operating billion up to adjusted growth revenue XX.X%

conference IT November, the the Fiserv in are Data As the activity merger, powerful payments we investor segments at success single functionality. the X following provider our particularly of our cross only Fiserv we of highlighted bank and is First because between merchant,

merchant in in share a in more we've social me a traditional and networks, a had important media choice had we PayFac, both Let In will II. to cross with quarter, along examples wins the debit Excel, X which Fiserv Star ConocoPhillips, under of QX. X company be where our wins able Reg including from merchant benefit

merchants online and hand-in-hand route Fiserv revenue to Traditional other and of using drive sales wins our at business digital debit networks solution merchant line in often our These only with payments sale. acquiring offers. wins transactions efficiently go and that car are value-added point the

[indiscernible] financial of with Open clients. to payments institution be banking found used of to the bank by as and a these Pay The examples. through Bank acquired facilitate typically accounts transfers, merchants and transactions we the Banking Open Mastercard data as where example agreement open data facilitators our by can as facilitate just Visa second we signed underwrite our verify organizations open access by U.S. Banking and single Platt data a they and into planning QX, to wellness loans API entered financial A clients is in banking solutions provide a for such In Solutions few and data as

of government surpassed past financial and wins about Revenue we're Third, in announced $XXX across merchant continued the momentum in we segments. over vertical the million. our large clients our a excited sector, year, recently have this from number government and

financials. in was with in line tax adjusted the in with operating XX.X%. tax adjusted The expect loss continue our The some rate XXXX Now $XXX quarter effective tax rate details approximately largely the the we on rate let below year was is QX year. effective corporate the to for up remaining the XX% traditionally full full be to and quarter, expectations. The million the me rate, adjusted wrap

Total on debt March $XX.X billion outstanding XX. was

slightly And leverage we approximately within to rate debt debt to ratio variable X% increased in our EBITDA targeted of X.Xx Our range. instruments. adjusted our have

shares we authorized months billion, quarter. of our $X.X repurchased million for to quarter, XX XX.X had return million the We shares bringing for at repurchase shareholders total During $X.X cash remaining last the end the for billion. to XX the

continue XXXX, and capital allocation repurchases share long-standing sheet, by balance Our complementary strong strategy innovative in defined will acquisitions. a and

growth we As Frank year. we growth revenue earlier, are XXXX for organic organic to rate said continue of revenue outlook. into the to our expect year, XX% full XX% quarter One the maintaining

the tailwind and further Argentina business While interest strong. overall our balance inflation the the of in unclear, eased faster remains moves remain expected, we while year from than

year, outlook the full XX% over This per at than $X.XX points. This points, EPS outlook XXXX. is to to performance the for some XXX would of we $X.XX represent of call double-digit that, now back expansion turn $X.XX, to previous to me adjusted from our basis more margin With basis XXX our operating in growth. adjusted be up least For let year adjusted earnings share consecutive a XXXX to expect the for increase at of Frank XXth midpoint, remarks. our which XX% closing translates growth

Frank Bisignano

way society, it, that people, fourth responsibility communities in advanced pillars: published Thanks, is highlight week, In doing we X as we good sustainable the systems. and invest business. Last social champion we on Bob. and execute business good report. responsible for empower our In summary, our strategic corporate we believe practices

We leadership the organization, are levels representation positions. including to of diverse committed at all

where live small communities engage work, and including institutions. We depository continue minority we to with businesses and

of overall as sustainability. of we our in invest to part governance importance the strong strategy continue recognize and We

this our merging our Later year, business For First gas XXth our and in year a celebrating includes Fiserv: since with for important will time, Data. X the we milestones year fifth goal. first CSR be greenhouse reduction report

to what means of reflect occasions, a age. it these on do On certain come naturally

XX resilient we've line old well to Fiserv, commitments, means our capitalized deliver sustain For bottom and means also savvy scale, years done experienced just to growth. proven, and and and It that. top on strong

are We that doing as well.

lot Five significant merger, But a to you young means by investment. the a X-year-old we're company. created fresh consider also when the change like foundation a support

have therefore, used means continued longer-term that's cash top services and invest ahead, bottom people innovation. driving growth. in by to opportunity Five strong further growth And our and at higher Fiserv. see also products, We we and fueled line a

combined XX, exactly and X to The with what distinguished proven that's innovatoin, and drive both growth a of doing. the opportunistic Fiserv position of we're strength in lead puts

All our now of employees. to this the they is line for shareholders thank possible because would like do XX,XXX clients for of And what please open operator, each questions. your Thank today. time over for them I other. our you for and

Operator

[Operator Instructions] Togut Our first from ISI. question Evercore from David comes

David Togut

a see you sustained accelerating at Clover to sustain Argentina the attach VAS Great opportunities? When Clover whole, as higher the entry, vast year revenue volume payment at to low XXs with picture and range can high look expansion market growth and Brazil XX% revenue the you growth for at rates. XXs growth look in this growth for when

Frank Bisignano

to to is and be merchants areas into our number So been before. basic merchants we the We've quite David. draw products the right? merchants, the for all able some unveiling embedded create have, that on new time, we new initiatives, those of we go and increase while of philosophy then deliver been market new haven't on generating to Thanks, Yes. focused we new continuing more have, business products,

of ago feel we about what years about in laid very, a out and what So talked November. very we couple good we

can of here, kind have of cylinders all say. Clover of traction to parts company expect us we what which above to out a on CAGR also as our be Thank should you. be, you You but to needed the other see bunch is the

Operator

JPMorgan. question comes from Huang Our from next Tien-Tsin

Tien-Tsin Huang

from here mix that operating is maybe much versus fee Just of in course, favorable the is I factor a How margin. XX increase of other know surprises, processing. Argentina, is there. term always the the bps and

with quarter increase. or on the to out the any the curious the call second respect then half Just for margin? second And

Robert Hau

Yes. Tien-Tsin, it's Bob.

by now describing progress volume of think margin on Obviously, and basis the improvement, at the in the that previously productivity. as in continued The it really termination growth fee is expansion grand is XX XXX more in than driven really to from the full on outlook processing I volume quarter. leverage, our a company least scheme. you're year overall and productivity. in points matters overall, points well strong moving basis continued as small leverage the the a terms But this line for has overall focus margin bit relatively company's processing XXX continued

Frank Bisignano

add, just productivity. next at new when in a and the to service dollar this running is we improved revenue Yes. our And the in about by technology deliver think of ability product around really better investment development, cost incremental investing I'd company,

type We're rest do see just tip but of of at that year. can very be AI and way of this the those lives. our the to allow our So And we will for items clearly of it. that, us more

Operator

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

David Koning

And just job bit a maybe on Digital Great quarter. slowed again. this the financial segment.

think kind or the if to X% and growth that from few you've and if part? I benefit that that accelerate room II, if last Reg was incremental still benefited in or to has just quarters. fully X% that X% of it about Wondering

Robert Hau

David.

that uptick continued business, more in just II whether we've continued debit that's the in there's I'd say good be seeing more progress On I our by And II, just our seeing what what Reg probably opportunity think to network We're or really it's seen, remains ahead means. business. than still Reg truly driven that progress.

than I tough read terms quarterly other QX anything of prior and fluctuations wouldn't slowdown, In against into it year. comp a a

David Koning

quick. just so I more you. And grew grew Got fast, can XX%. Clover XX%, SMB if do one

to that growing growing faster, just assume which is But too? is non-Argentina keep non-Clover non-Clover Argentina. how the maybe room I And So is doing? is well, actually for

Robert Hau

there. the non-Argentina small to SMB Clover, But obviously, good seeing and growth we're good across opportunity has That X% Obviously, continue you see non-Clover, business. Bottom Clover pull tongue growth line my diagrams we certainly there. cheek Venn from entire real the up growth, saw see, business here. and in is let's

small prepared Clover, On there, Argentina. Argentina heavily the talk there growth of is from impact really organic the growth. States remarks the United driven about heard growth a There segments, you in side, XX% but the the on overall impact non-Clover there. from Argentine is by the piece us certainly

We and in bit later previous -- interest a little continue a bit than was It into a we we the quarter, easing expected the inflation than faster anticipated is lower in that to year. first see i.e., what merchant in Argentina we in a we last above QX that. little the indicated call, from the impact for year the earnings bit XX% about business. full in came expect

We of ease well. we later supporting the into expect them acquiring That overall, adding Clover certainly want to merchant But to take growing that solutions. is the business. It's wherever just part non-Clover continue the opportunity. small impacts and and businesses, see year. it's they non-Clover not quite about to

economy. The government to in government Obviously, the with That program is economy to first Argentine has Argentine saw the [indiscernible] it's to program add, has the help quarter that benefit some is that currency ease -- on use encourage denominated credit of better-than-expected foreign cards credit saw the the Bank have the thing into an would year that This people impact other I to term lift in of the we a foreign-based denominated sponsored the and The the Central in they're may pick seeing discretion up expect balance a improve. their of dollar the foreign by a quarter. a at cards, first and we Argentina. is the we currency heard

the and not So transitory small we're seeing into growth some kind anticipate of I of future, this business XX% organic impact a would quarter. that certainly

Operator

line Next, the we'll go Timothy to Chiodo from UBS. of

Timothy Chiodo

points. you the there's well, adding on about between Looking growth think, the direct from small a just mentioned. the pretty volume hardware as it XX% that you mix, implies at XX% the growth pricing, gap VAS hit and basis I XXX there over and revenue component It

stay context So to hardware wanted volume about it those in other some you pricing should slightly the the growth maybe should could How billion. sort direct high contributors we of a volume see the to path we way if to Or and different I teens higher to growth. $X.X And expect should think contributing? on the is, just Clover we ask range? expect provide

Robert Hau

elements number to a of So that question.

in Clover that very billion set it, kind a order goal out call hit revenue total we XX%, by XXXX, high we the growth. to of $X.X achieve need XX% First, a

As part indicated vast of achieve current of we we've the XX% XX%. expect to quarter QX that from goal, penetration at

over big stuff probably be of with the you. factors. quarter, to a about it we've as merchants, the part a sell This what's growing current part a it. on couple actually depending in will I what that's going between exactly will certainly to It's continue is as recipe secret. revenue the market, those VAS. revenue billion merchants and what's progress on The your $X.X of To additional in not VAS. grow secret And there part talked big to VAS this those merchants. think point, the see. the new the important past. the next the inflation, we big the So so Clover price volume delta going of $X.X in has and more X on certainly, importance, And was and of years towards always that's Thank of overall driven left, third with is We kind gave of we that we sequence billion. in march of order that but is

Operator

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

Jason Kupferberg

had a merchant. just I on two-part question

upside in to provide going going fell you the you're transaction the to comments. timing second QX, which And to and year. as of not an The have the this April an could first part just Frank, total segment I is quarter? think bit a continue just April of growth that on is uptick you a if actually volume relative forward. be little then bit the considering for I'm sure that Easter indicated viewed do how and surprise

far parts curious so performed just which have in April better versus QX. of So might merchant

Frank Bisignano

take part, the I'll take first Bob, second.

Robert Hau

Yes.

for So that way given question transactions the enterprise small at it's growth Merchant the and driver the not my volume revenue we at for segment a business of Solutions in X remarks, small for first part volume and is enterprise. revenue of is our and small and business the now volume we're we felt revenue for growth is, enterprise X% driver is XX%, reporting prepared the in lines, Transaction not a transactions, activity a business that gave business driver.

providing that So really important. key are was the driving we the the metrics thought business

Frank Bisignano

committed And how small an [indiscernible] buckets a on it clarity, want that's to you're but to it amount the a of to throughout I increase. I is the consider the the thinking And necessarily early see going it be the small U.S. whole world, we quarter where we what I have in going vast be about around tracking, always just occurred. in indicator to a if volume it. about both we the on play, Obviously, put talk small to not feel nondiscretionary is is, and growth, you able

Operator

from We'll Dolev Dan Mizuho. go to

Dan Dolev

just context conversions be results. are Clover quick have any that Great question the some should conversion there give And PayEasy. on on we other contribution? a and maybe us Can I you expecting? roughly to timing about

Frank Bisignano

our that merchants. us we SMB have allowed in hub which That Clover allowed CommerceHub e-commerce that and about way CommerceHub, multiyear a to us within built -- question. through PayEasy, to operating future was and a that it then deliver way of build think VAS were out also new The in retired great some both project that's The base. that volume, that -- completed, Yes. the already pays out brought migrated existed we processing and was built out system way to

forward. books you're So CommerceHub from standpoint. us for on strategic we users XXX -- And a feel great talking platform going enterprise seeing the on side, that the we're a about and about closing conversion

Operator

the of line Ramsey Barclays. . Next, El-Assal we'll to go from

Ramsey El-Assal

to a little more seeing there. now feels side appetite and like It wanted M&A seeing? And industry. maybe out Fintech what's are a in for on of ask deal? what the there's about sellers doing sort I you're What opportunity urgency of your you right the

Frank Bisignano

rail don't the I are. and urgency as Well, what valuation as about much parts on sellers' know valuations understanding

a very, think very acquired, and deploy I cash a which grown. investing generate job to talked have ability done about, in we've assets we capital ability our we Now great good the business the in integrated model, our flow, to and really we've

is we're And say I acquire appetite our properties so I'd always trafficking. mean always high. to

our want to our structure on we very, think, it fits side the holding our client base, merchant both within product side. the distribute FI on very other clear which I that to the and think tight the on hand, I fits vast ability be and strategy, within to the is

believe always pretty appropriately sure track think possible. our we're we're we're that make engaged and to got to in so I as a like thinking through using highly shareholders' as far. good and I in we've record that working selective dollars it, And So

Robert Hau

step I we're think further I'll carry appetite. your is on one Ramsey, terms strong hungry. not good, in appetite, but analogy question of the Appetite

of mall to stuff, go lot home get of sure making but could the that on a shopping our is ahead realize that deals and it. not buy store need we to you hungry. do we grocery you're tremendous or value brings the what and have on sheet strike good a and And shareholders certainly and go seeing while you activity, before to you of So didn't we're you all when we hungry, balance lot our value stuff. you we're capacity We're see

Operator

Blair. from of to line William we'll Next, Christopher Kennedy go the

Cristopher Kennedy

we So opportunity a DNA some systems to Fintech value-added operating targets Carat, Clover. such Optus? as the think good the about for other Is have there solutions way for or the for of

Frank Bisignano

right? across broader what think integration Advanced we products what rates, more Defense flow guide cash fraud centrally. is I are, think the mills the you a from think even have we in think they're our to how go goals like articulated we clearly board bring in I could And we around standpoint right? them, embedded in about Well, growth about but even our things not our

about that, You obviously have through talk heard that space, then both and attached in and us product. our distribution own a really hangs banking to SMB the

the back time, said gift of to think information we've for We've of long sold an into over we've services better around clarity and. selling data with should value-added enterprise forms different our we probably a sold some product I time. it. that, clients. Having come been

go really, used about going on at the we're the a digital is their in you but is sell really circle macro at can we look in that to those The the revenue to from comes our hang the think comes we off same and way enterprise really the have are own true a I So that back it enterprise to large level core growth core. credit merchant. when all right, business services value-added

So also. I reporting lines actually you reality, some business at think look our economics and when in how those report, of we value-added are we services in

I think business and go we show little lines. about more, a encompassed the I'll our it it's economics think but how in So

Operator

Jamie the to go from Friedman we'll Next, Susquehanna. of line

James Friedman

is, disclosures. I but wanted not the about is you Again, I like said is wrong. category. segmentation it thought solutions if wanted what transcript I the if mention to ask generally, you there? that, to the a if where that Like $XXX helpful. could you in financial and Frank, And if that to heard is I specifically? appreciate And issuing to up possible, I are yet, how mess government? into I going But wanted million out ask it really I it's unpack because rolls segment? this correct -- government. market with is apologize incremental And The I you

Frank Bisignano

market don't it. we from start to large go And go and you why would to that I everywhere how vertical, very -- a government government. So call federal. government on been how is to focused We've local and as state on

heard to at out times, government government thought on And demonstrated any At play given from org, small don't right? the coverage but I can why started, think their the on in government, day, the fine. called which in dedicated and we right? core be can space, and to the your the very products merchant we X talk very, question, have times, -- sales right, about businesses billion traffic it was The have as the acquiring. it almost segments. So so of force transcending I have it our any know our opportunities transaction to answers model, And if anywhere $X.X that to delivered a we it those you want about where was to you it just great, vertical, we us segment we team money about to our had we really heard. is the both fortunate and that because because it government, bid acquiring. think this we've win. merchant we client that's however very transcends have been our been in great always network, job delivering And dedicated it. team transcends growth, And which cover And is love feedback, have the sole we a a And

Operator

And from our will question Stanley. Faucette final come James from Morgan

James Faucette

a you it dated only about you're key get aspects competitively there help market? like how market? the other but are improve to you're what to in I'm about? of wondering where things I that with thinking win if you idea success that. thinking is can the not mean And positioning in part its in love any seems if have should or competitors rates, But us market your seeing your sense other of understand we Clover be versus the of service continuing

Frank Bisignano

quarter little Clovers whole clear grower you've delivered as be expands in possible of I right? try venues, a probe market as Well, It's thousands because SMB Clover a we XX% today. further about and heard the the to to the this. on

hard have restaurant, on do feel ability work very about but We swing very, and we there. have our to finish are talked very to the

then platform remember, NISV have as us ability services. talk like you vertical us demand And great continue see distribute You'll go more along it's a brought that expertise, with deeper through to horizontal the about, the retail, our heard in channels in outside to channel. we we too. professional U.S., And

is we at XX% the add to more Obviously, growth, too. And spans software, an business So I of through it's that think mark. acquisition continue new has SMB. it which landscape demonstrated the open platform

started you outside have world like all we we and than we and the to And the house the patents so world. [indiscernible] the commensal complete X,XXX X So I'd house -- where engineers to together across going were that across that with so inside put and and more operating software us rolling and remind engineers now when we're

you. attention day. reach team to with Good. Thank Please And further to out I'd today. a great everyone IR for like any their thank questions, have and our

Operator

the call. Please Thank Fiserv you participating XXXX of disconnect all day. in Earnings have Conference at and Quarter rest great for That a concludes First time, your today's this Call.

Fiserv (FI) 23 Apr 242024 Q1 Earnings call transcript