FI - Earnings call transcript Q2 2024

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Operator

Welcome to the Fiserv Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded. At this time, I will 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 are call GAAP discussed performance otherwise the year-over-year explanation for of along this references of the measures. measures to non-GAAP financial nearest these to a reconciliation materials comparisons. stated, those Unless measures

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

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

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

turn I'll now the And call over Frank. to

Frank Bisignano

and you of us Julie, closer you, earnings organic joining Thank bring second year another adjusted thank growth. double-digit us discuss today share to to that revenue for results quarter and all per

results adjusted points XXX and growth was revenue was across XX%. second up X% with operating $X.XX, of and strong Adjusted earnings rose Organic share operating driven businesses, by basis healthy quarter XX%, adjusted growth to growth margin XX.X%. expansion. our delivered revenue continued per further revenue Fiserv margin

clients, plus point important our such to quarter, up Verizon as business revenue, gaming, Clover revenue during accelerated and can with to Apple, in care. in organic including wins marquee in multiple health and XX%, Financial government many X%, new growth Solutions clients the We including highlights petro, verticals

via repurchases. last over Our and free share cash flow we to was the quarter XX months, the shareholders $X.X $X $X billion billion and in returned billion

and anniversary Data. the celebrating the are we of Fiserv along the month, anniversary First of This Fiserv, with merger between XXth fifth

services, choice breadth the debit systems full we core back has would that's all unparalleled in clients scaled what in with exactly supporting see together a and then digital integration global happened. of of a partner find when value technology, Fiserv modernized Today, kinds reach. can of merchant vision will cloud we become and account was combination the with and solutions, that acquiring, bank payments brought Our XXXX credit issuer platforms

synergies technology over increased cost our and revenue realized this investment we in innovation. we As time,

established deliver Our all large purpose to has small, and been verticals. kinds, and spanning solutions clients local of and new, all to global,

ourselves With accelerated run, the our base is the optimize moment. leading for X deliver diverse we Singular a of now find now, demonstrating proper business Fiserv past growth and at amount ourselves years. better products then breadth ability across our able in and and disrupting this of and grow to to clients of a

is After X of new some years ways, old innovation, in what's again.

retain Let of to our of ways in X me as customers. engaging are new add how their clients and examples share traditional own businesses some our

small this their in its acquiring, customers to way thousands for more clients who choosing and banks First, We Clover. benefit merchant processing Fiserv leading already have nearly business small- including adding so. merchant can XXX are who to institutions still financial grow solutions, doing and services and offer service as medium-sized a with business from

As we signed agreement example, banking of which QX, is COCC, client-owned Online technology. provider in Computer with Center an as Connecticut known a a merchant

of support access on XXX The of our own merchants. the their and platform services COCC now of in banks acquiring have community unions hundreds credit to thousands

Central to banks business takes center cost appeals bill to a consumer revenue digital that from it payments, small the and Flow turns Second. a of payment In and pay within capability. presentment Cash generator bill best with

multibillion-dollar remains the Cash with this few solution. the pipeline X since we in of we quarter signed second months the more Central flow will X banks total for quarter, a full. a and cash go In essential deals Flow live introduced

model. from answering direct go that offerings the finding as are We biller pay this path, consumer well, the institutions financial down are they bill their revitalizing competition as

bank such Citizens, win First consumer bill pay billion in top U.S. more was assets, X with a QX. XX $XXX than

over bank on XX of provider largest the our free is services check Fiserv with reminder, million bill users a a As consumer platform. pay

acquiring They across provide they other distinct institution demonstrate revenue-generating merchant for opportunities banking and value Cash a Flow our our clients. solutions issuing financial includes because businesses, Both also products which businesses. compelling are proposition Central and for small

integrating new solution. online small as our software improve with payment seen Next, that solutions mobile experienced integration, revenue traditional enhance digital to these third, businesses. merchants or are And surrounds turning to we functionality XD, banking data are we've their enterprise and from and

SnapPay, platform a mid-market and bill platform; integrated BXB our been later. which enterprise Analytics, increasingly omnichannel clients; where solutions. who and These and large- leading The our support we are to Solutions, presentment discuss I'll bit have QSR Gift Data include migrating value-added our integrating multiple retail merchants ERP

as invest to momentum. as paybacks, continue for which by selected unattended In We the provider vending payment for were such we platform our quarter, our in second gaining major such dedicated new devices platform. instance, new for a of exchange solutions PayFac machines is

pay will integrate our across example for with of in be That X card serving transaction with pay continue is clients One as the points, And solutions. loyalty to points is redeemed enable a our can where Wallet One residing ApplePay with we the issuer our Apple currency. partnership of new solutions on X the Apple. segments. checkout, next-generation accounts new functionality at our important

account cards then maintain We're payments capability those accept technical breadth and balances, on given to and and a file balances. accounts natural our the partner point the as convert reconcile points of our

a card. ApplePay in purchase after have consumers option using to loans a the checkout. presents credit provided making for is a been installments purchase set that credit a second that a consumer installments cards. differentiating of choice when the on is in pay the on Our This with as a is only installment purchase pay feature for This with solution and new to

move flow, drive point and spending Having a conversion, installment loan giving digital feature the wallet of the the choice the point from will cart checkout we can consumer at Apple, sale this this into card With at greater purchase. functionality power. of usage

now its across unique parties all buy directly It pay the here: with the issuer digital involved issuing partners provider, wallet later their products. the consumer, is card our compete credit using also reach in enables and the existing merchant. more Fiserv to

effect this be across ahead network So ecosystem. we we win-win see to multiple opportunities enable a as the

our So in let's opportunity range. to earnings strong unique conviction we're outlook to our the an outlook our increase turn in per performance set, share on $X.XX, the for $X.XX the $X.XX adjusted Based business. raising quarter to across of and

revenue of XX% Our for the to performance XXth EPS at would growth. unchanged double-digit consecutive organic is outlook represent growth. This XX% year XXXX adjusted

Fiserv Solutions, of April growth Merchant our rose with segment June. from of X% to the In growth, posted sales X.X% the small in to Business Index, slowed slightly pace the Turning highlights. volume which for as we business, Small QX growth volume ahead starting

why can multiple this and different reasons are differ verticals. There presence our U.S.-only global our across growth from index, including weightings

half year Clover, for of we new very have rollouts. second product For a the active

the launch and kitchen plan table In We cost services restaurant X management. be software operations, new target to quarter, spot casual our rolling features target that other management, our additional retail. in software out and inventory sweet we'll the enhanced dining, fourth verticals, in offerings

very pleased look order forward and restaurant with are opportunities. our new sales of initial to hardware We kiosks, X now we

restaurant this Flex a rolled opportunity next, which important a First for and pay coming clients, Clover via is our order smaller new broader table with month, the us the giving an and at merchants; handheld Compact, Pocket market solution out in we Clover August.

in and our then are are ahead September expansion. Mexico set in the Pilots Brazil international go-live And in August and we in with launch. of to Australia pace on XXXX

more now In We the our ongoing X the have of of Hub, solutions. layer merchant Hub portfolio in value-added XXX for the easy adoption driver with retailers business, live including extend position the in that vertical. Commerce enterprise large key petro our to QX, leading growing Commerce clients on this several is signed allows orchestration and integration

and quarter, the guidance strong X% range. organic high end to in business. drive strong posted banking growth union credit continue growth business. our clients delivered growth the while segment in Solutions We above digital XXXX of revenue Financial core in Our our payments our faster at organic our banking

had the Bank an after business chose acquire example of this are by adding to second account Bank assets bank to clients Fiserv billion In latest we as in case, intent the a core well. We another new $XX winning Valley processing Sun create quarter, transaction. M&A in January. HomeStreet In

loan the in provide health technology and lenders issuers issuing, education. and accounts leading government we and the care, issuers of to some and manage world's for In credit

very we're and a activity have financing to won device for agreements device relationship the manage resiliency long-standing on multiple trusted outsourcing solutions. their foundation support June, to a of Fiserv's pleased the In Verizon Optus strategic and that flexibility, on of agreement chose platform payment Fiserv with our spans optionality Verizon platform.

issuer into processing another loan is verticals. and of example extending adjacent This our capability

the equipment fact, a we manufacturer financing our dealer First platform. Vision won offer with deal another to through loans short-term across industrial In using globe network point-of-sale

to Bob discuss to turn performance I'll financials. on that, it and With over more our

Robert Hau

and Thank everyone. morning, good you, Frank,

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

Our the quarter performance and strong to second our showcased sustain revenue ability expansion. margin growth in

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

adjusted grew the of $X.X basis operating For billion versus margin an resulting prior billion, increase year, grew X% XX% adjusted year. of of to operating XXX revenue in the $X.X XX.X%, and to points an half the first adjusted income

X points segments. with grew revenue QX. contribution our total to in quarter quarter, organic strength Organic both The XX% the X in down transitory was in growth Argentina points in from from the

of revenue grew first year, In X months the organic the XX%.

guidance to up XX%. earnings to Second XX% year, compared the per prior $X.XX was quarter year XX% previous $X.XX of share and above adjusted full in

first billion increased for and was in our to $X of year. the flow the Year-to-date, the half $X.X share the Free compared adjusted billion prior for $X per quarter earnings to $X.XX year. XX% cash

We much the timing tax for credit due higher flows the flow this be to of cash second of half in to year expect green cash program. free the

to Starting quarter Slide in the was the Merchant X. on by growth segment and Solutions Turning Organic year-to-date. revenue performance XX% in XX% segment.

Argentina. organic For transitory growth would have XX-point the inflation Without a XX%. from benefit, quarter, and benefit interest this in above-average been includes this

of inflation from offsetting which of Argentine included adjusted on On Slide the X, Fiserv again interest Merchant and with revenue. excess segment and headwind a the impacts revenue, we've total devaluation, summary along impact currency

after headwind was The December a a in peso year-to-date. growth quarter results for XX from last the revenue and sharp the in late XX% Solutions X% year. quarterly devaluation currency Merchant Adjusted Argentine percentage point largely include

to Similar higher in revenue to QX, the QX. growth and interest inflation headwind than tailwind much was adjusted currency the

second and growth a between Moving higher volume and XX%. on to growth and penetration spread business, The the organic volume and in revenue Clover lines. value-based Small was shift XX% XX% in mix revenue an of of quarter reflect the continued channel revenue growth value-added to quarter grew business respectively. adjusted payment the continues annualized XX%, solutions, pricing.

XX% in decline VAS prior years, the half. at sequentially see SaaS the from driven to typically constant QX we QX, an a new coming stayed with seasonal and Capital in and was improvement by penetration growth VAS second package several should from expand where QX. Clover in Clover offerings penetration

Overall, and we and was of quarter higher remain pace the in targets. growth and transactions driven Enterprise on respectively, XXXX X% by adjusted growth meet organic VAS our to revenue penetration. XX% X%,

inflation As enterprise growth Argentina. at transitory business, includes client with in and interest pleased small Hub. We're organic with growth in excess pace of uptake and Commerce some benefit the from

the their Daily of which from popular are increasingly to in allows solutions. levels X.Xx bank of clients pay up account from bank, Commerce transactions consumers Three are by pay enhance to and Hub ACH at sale. QX are most via payment point the connecting

Online grow merchants pay via increasingly payment digital EBT, use programs; and offering which and employees payouts, lets to benefit merchants vendors. government which by

Finally, adjusted quarter revenue processing, X%, in X% respectively. and by and the declined organic

our and experienced where up This medium and business for similar and adjusted back-end partners merchant for to guidance their term. processing large clients revenue are relationship. in Year-to-date, own the our in processing both A revenue represents revenue the volumes flat we adjusted QX. they few the do processing over organic X% declines

the merchant some to outside Turning U.S. highlights

rise consumer easing, First, region. in begins the across to EMEA, and general inflation is as is confidence tone the improving business of

are services we quarter our that capability wins finding differentiator had and good in renewals business a win. that the is We competitive a our follow-on to for region with and professional right new reinforces

to to our We current of H&M Paribas, in Group, Also partnership the with footprint acquiring the world as us on banks strategic of highlighting their in second expanded clients. relationship partner it and point value the BNP multinational sale, one building largest its clothing the allowing existing Germany, into Europe, leading in Mexico merchant extend in bring our we retail for strategic Germany. retailer selected

business key and deliver in and We joint program solutions, partner transformation new to we merchant including cash for a a advance merchant Lloyds the dynamic are acquiring venture. Clover, Banking existing one tailored U.K. Fiserv, also on currency merchant will grow working conversion add Together, Group, major of leading relationships. our for with and banks the Cardinet,

Germany selected Bank, Absa, been to value-added of by We solutions. with railway Railway the provide National also and largest relationship financial Deutsche and in largest We've the services extended terminals, diversified Africa's network companies Company one the world of of one groups. services, our

or full countries. transactions process integrates will monitoring. merchant e-commerce We acquiring back solutions, as service, X will fraud portal, real-time allow be FX our to and African which omnipay solution multiple merchant including payment gateway, onboarding, implementing in office, open value-added a

recently XX store with most Central us to Eastern value-added finally, solution largest we've over Merchant the And merchant based to Advance, region. more growing innovative stores. acquiring grown than our this chain in convenience XX,XXX We've adding client, relationship a extended with Poland in the for Cash in Polska, products and Europe provide

America. bill with In extension volume of our of their begun has XX% pay Brazil, to Latin over QX. growth cash to sequential to locations the relationship Moving ramp in

XX In This addition, live of in went acquisition up capability as XXXX Brazil. the with came will our to service opportunities growth of over platform activity merchants. instant open November to and for from a SLED payment act new our pilot payment in provider through we

and Argentina. in to doubled transactions more continue QX, in million Argentina. we levels, instant transactions number Brazil QX and XX% transactions grow from Brazil, reached our we we Overall, up than in payment of our In XXX

aggregation the $XXX merchants, basis New pilot Zealand, the In operating in as XX.X%. adjusted to e-commerce-only to as Asia income retail Merchant omnichannel market new hospitality Adjusted million merchant in services the quarter, live well primarily partners went margin PayFac. XX% and segments with Fiserv. to our target up a for in Pacific, with acquiring plan We segment Solutions in points merchants operating we and increased XXX

income with XX.X%. to increased to operating $X.X XX% adjusted Year-to-date, margin of billion operating points basis adjusted XXX

merchant anticipation revenue below XXX the quarter, the XXX points income included last income, operating anticipation noted from operating would from line. margins adjusted interest were interest year-to-date. basis expanded As and If the quarter expense is have operating recorded for cost in

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

Growth other bank we grew strong at Zelle clients Zelle, by assets business the X% transactions and revenue Digital adjusted to largest payments our at the prospects. in Looking the lines. quarter. yet of continue organic one and be Bank, First each on and pipeline with signed in large in includes XX%, Horizon $XX billion

to loan by demand We In signed the we nearly driven grew internationally FedNow, issuing, America. adjusted to X%, QX, signed FIs clients for FedNow and In revenue our continue strong in XXX. in XX to and North and quarter. total integration. see from and account respectively, bringing growth new X% RTP organic accounts

Employment including we've funding that win vertical the growth highlighting programs X $X to cards Another California has large enrolled MoneyNetwork over convert nearly million where our government, Department, been prepaid Development billion. of we and is continue which

an the which won extend double-digit the local Arizona, should Carolina San the electronic the a major including mandate several growth market. city merchant won Texas, business, of North We've our help of agency, federal we deals side Francisco. funds and also QX, state with In in on and transfer U.S.

to the implementing the expect first will we program begin revenue to majority XXXX are card the large output vast QX target live. services. with Though start circle we phase continuing strides prior go in when wins, make of with Meanwhile, of accounts the

investing won a has first our of we In in the Brazil. X% the U.S., next new client Banking the and to the operating respectively, organic in meaningful revenue out our FirstVision platform we generation platform. and outside adjusted been roll QX, X%, international on presence and FirstVision, Issuing growing and have grew quarter.

grew revenue Excluding organic periodic revenue, the in quarter. X%

a allows customers decided Finxact. Finxact services and $X financial robust, We integration of completed embedded existing opportunities to pipeline merchants finance this bank and Commerce embed remains that Commercial experiences. robust a their Finxact suite core for X Bank, path Metropolitan to an with had has to the checkout a including including our wins Hub. build quarter, of shopping billion we across enterprise This client and Fiserv The migration

Second Financial a operating and for up strong segment operating quarter quarter second X% consistent margin $X.X adjusted income the XX.X%. very to billion, was Solutions was year, at with adjusted last

Year-to-date, adjusted $X.X operating income XX operating to billion, points margin for the segment XX%. was up with X% to adjusted up basis

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

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

at to ratio adjusted target Our leverage within debt was our X.Xx EBITDA steady range.

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

Turning X. to Slide

XX%. As in $X.XX EPS from per forecasted a Frank in acceleration our are earnings $X.XX, an year from share said adjusted XX% to growth to earlier, $X.XX adjusted we to range full XX% up to of $X.XX to raising XX% outlook to

points are basis organic our raising operating to adjusted our points. compared than at outlook XXX to maintaining more for We expansion to growth basis margin XXXX of estimate least revenue and XX% XX% XXX

average the is region. and excess decline in measures. X QX, Argentine faster-than-expected overall the return good our more our during historic both news in Argentina. growth for guidance from stability business assumes points we in This But saw and Previously, organic of interest to contribution inflation rapid

Based we on will points. extra of interest economists now However, revenue from year. benefit assume X X from now latest and year, this the consensus, the excess inflation be points contribution down this less

guidance we business. testament business shifts from year and of our hallmark diverse adaptability the affecting a of reiterating This our global resourceful are to for exogenous comes capability base, management growth despite organic team Fiserv Nevertheless, product that our the become today. It a model a is previous reach. portfolio, client has broad

benefit inflation quarter with the revenue, we and additional revenue offset other across growth of lower in company. interest quarter, and another anticipation the This Argentina

Argentina, from for transitory in inflation outlook less of at Our full company XX% the XX% year growth to total to growth, XX% interest our XXXX. organic benefit and normalized XX% X-point puts

guidance factors our line continued exchange declining This currency The which growth and and Argentina is tailwind be of foreign headwind remains excess X% continue in XX% medium-term to inflation normalize. X.X%, from revenue to with to anticipate will to assumes impact a adjusted relative to though macro from forecasted interest. from stronger, we the

up with free flow. cash Wrapping

of First, flow a the the This how provide reevaluated We reporting. cash will activity statement in Capital investing the is the the change have note cash increase I'd additional for LatAm change advance significant our transparency our to like cash We the with flow to quarter. merchant and our flow our presentation activities in greater second the section consistent disclosure activity. statement beginning given moved a anticipation in investors. these Clover and come peers cash to to

longer for flow of outflows merchant are $X.X activities, from originally increasing billion included XXXX billion, since affected move flow our so advances guidance outlook. $XXX cash those accordingly outlook free our we cash to year by our expected are $X.X cash our when free no in set million full flows since from operating adjusting we This we cash amounts

remarks. Frank call some With me the back turn that, closing to let for

Frank Bisignano

generate massive proposition an beyond within and be the extracting us that data. creation and value The can Thanks, that's opportunity Bob. the important There's of post-merger term. another daily is driver medium in amounts data growth significant we for from intelligence Fiserv,

the harness Fiserv our and merchant actionable drive the AI activity internal before naturally long and institution today, transactions AI. clients. a account and in fields topic a the we external team assembled and experts them gave processing mandate ago, marketplace years to the of hot data it and science Three through to data is was We intelligence captured us, for financial of of all

doing has our solutions, quite Fiserv expands and There are banking multifaceted it's to client-facing time, in X to This advantages makes apply merchant data: in level an activity. available granular data powerful which antifraud the for real transaction in with internally solution we that are issuing its this plans it's that and fall.

market timely inclusion month the published is after millions the Fiserv at to real-time the businesses monthly. just a of geography applications its of the released such noncard days consumer and of by look data spending detailed industry and X assessment of Business trends checks. grade first at data Small cash Fiserv a Our end, spending features It and as small maximizes with

AI efficiently to recognizing decision-making working data journeys to understand add we also next take process to the invest and Fiserv in own support are data. their to We're as help clients they level. their and intelligence can Clients that

our and that and a the on data clients scale, of platforms and power still It's already and opportunity investment. with significant largest of stages testing solution the in our major delivering given integrated of breadth our intelligence value-added we're solutions, several is our unmatched the early the but platform. We're Clover

like product our XX,XXX to report to strong behalf our every and innovation leadership we seeing shareholders. strive work more led for today. on clearly partners our and commitment you're in day day-to-day the hard and us of employees and vision clients, achieve to our I'd the execution. thank steadfast It's results Finally, their than excellence on to Together,

Thank your for today. And you time line the for please questions. operator, open now

Operator

go Togut we'll of ISI. first line Instructions] to the [Operator question, Evercore Our from David

David Togut

us year of broader I of for half and new the services into the update and this your for Clover the retail. market and in and expectations kind you expansion family, into initiatives launch you new Brazil in of kind Brazil. friends of in expansion international Mexico? are and product appreciate But vertical on Frank, called the update on what the XXXX? launches out post market some Could terms back also

Frank Bisignano

Yes.

Australia about penetration, and we when at all, we're doing of talked look I Mexico, Brazil. on think, have global you first what

in it August I a as as treat You XXXX. see I'll a and family. should August Mexico in full expect like friend ramp would and pilot. a Brazil

X our things the ago the with things But business competitor. probably remember, in we've the Brazil, X, years startup a tremendous we've done into a business from done growing

So perform to business we it that have in market as growth that would projections Brazil. our for expect

the built there. We've Mexico. business

Brazil watch We That's you is August them a grow business. Once We similar. continue very you'll to the what quarter why build we're out build see friends obviously, Australia. and Mexico that in effect coming in about that and through full and family 'XX. really We fourth then Australia great feel together. again, position and our and feel in going to do in

You'll in friends as family, very, wins very and see us have to that that in highly we in Clover larger are September a motivated and of also 'XX. expectations market there have partner

So year. this think ton it you'll out growth I get a of don't of

the bills on are again you in later in We'll expectations but those year full our update force. 'XX,

We partners that, all of and who the wanted have we market that. see demand for

So for that question. thanks

Fiserv the actually celebration now, really right the is this talked your But anniversary on retirement and the having and what we're that David, is we're I a about anniversary we think I from morning Evercore. I merger. which Xth of when up realized celebrating call got XXth got the of

on have fortunate CEOs, XX that's me, And before those you years because time for right, know I'm together. who shoulders everything been stand to to is you covered count of so X here, came I cherished if information we Fiserv the that my and

on specifically I done you thank being came retirement CEOs years but Evercore. and for Thanks me Thank industry. can't all XX here really account Data, your think the from today. And us the in to post KKR, with the right I for before I'm that of you think everything I First career celebration your for work. for you've then the And

David Togut

much, a tradition create lot value. with means tremendous shareholder Bob me. working predecessors, you, continue And that I to you Thank to really in enjoy Frank, of really your you so Julie. and the

So I'll your to great progress continue with watch interest.

Robert Hau

David. Congratulations,

Operator

the go Tien-Tsin of line Huang we'll to from Next, JPMorgan.

Tien-Tsin Huang

on was remember say, David calls a I can't have it. or that Togut to going First didn't I Fiserv Data

specifics for that. guys, you echo that question you upside My the yes, was of bit So little just us on sources on raised, I outlook just the a the more margin there? give can

processing wanted a bank clarify side. And due to I a if some declines attrition? there's the was to I side. merchant to related losses? on clarification bank in heard that that then some just comment just Was volume-specific the or that

Robert Hau

Yes. Thanks, Tien-Tsin.

First, row original margin actually for margin a really in on driven remarks, now our raised points. prepared outlook the XXX factors. basis quarter the guide heard greater points than X February greater than in in That's you we back XXX outlook, second basis as by our was

just average we through to is see and more scale add good company drops the it the One and volume better growth. as of continue we revenue, to company because the company have than average rates

productivity. second one, The ongoing of course, is

continue basis. We on ongoing an

continue productivity earlier, to Frank said progress achieving As and we organization. towards everything see measure increased across the

on a productivity And continue to to margin basis. so multiple the combination plus allows of year year, very strong organic growth, expand this XX% to us XX%

processing merchant on then merchant clients our for contracts. the side, the where know, us business you processing And is as the line own

processing wholesale out volume it's many ISOs. we And contracts clients, saw quarter. second providing cases, back-end what so for we is those in some of the those banks in be are process decline the to And

plus the on of the Of year-to-date basis, for year, and are that's ongoing going a course, line in up X% forward. line roughly we expectation half this with first flat business that in our it's

Operator

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

Jason Kupferberg

see revenue likely ongoing more leap in did slowdown was than enterprise here. the of about can transaction the curious volume probably year. some growth. QX, see some to explained We there to performance ask I small just underlying by be growth, metrics, business Great just

lower you CrowdStrike? you of and So the I softness, verticals seen about terms versus July bit was was in anything give from so hoping Visa you've hurricane of you related just of or what softness higher could far income saw where to unpack little a those last some we it can in consumers? heard little us bit then And a certain night on income

Robert Hau

second Yes, quarter, in slowing our variables a saw and of business April in we Jason. of the lines. May line business and both There's obviously enterprise were lots of expectations. the with and the fact, bit in Generally, a through those, both small

that, slower, in came a expectations. was little but emphasize July with bit line I would our in that

it's to transitory for Merchant XX% growth Argentina. So in partly of why acceleration XX% in year the our organic maintaining easing and fact, segment benefit rate in full despite at it we're to XX% XX% that down to Holding

the business a term. think outside at thing is good rate expected the a way, the of performing better more in which, is growth generally, economy, good long interest than So benefit, is that for normalized previously we by Argentine or had we and the slowing and transitory inflation

by how encouraged how the has going overall that's we're business so And and responded.

Frank Bisignano

I'd couple the ahead We we and outperformed. we're it if Obviously, believe -- you we track it. ability macro as our One, we and numbers right at fact the proud we in July, to verticals our don't the FSBI very, July a you of what of looked that exactly our because about at line QX, look see of think international slightly mirror June. FSBI general presence talked we how look with growth Maybe in created but comments. very make other we've slowness it of really was we had see and when that now, at

a point and portfolio, our and think and label and which across as this volume look But of credit also covers book total within make outlook, see slowing range the I also, purpose. secondary I'd around our revenue. private originations you our retail expectation you across also general all

longer are volume-only a shop. We no

the at how both the level of masks, SMB it proceed. at of to really level lots design was enterprise have the and and We

globally, feeling and inclusive We ability our about have of grow that's the great U.S. merchants to

very, hedge total, the our when So scope, and very expectations at falls I strong. and is performance portfolio think our size And that all business set. the in look into you

Operator

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

Timothy Chiodo

live just I on clients Cash want Flow mentioned. Central here, to go about to large given hit you X

down In talk I also about also interchange combination potentially. could fees the X terms fees, it's then bit recognized a be of monetization, segments? a then break how the believe hoping the was little revenue will across And I that of a and subscription including more? bit you transaction revenue some little

Frank Bisignano

on and both comments, to SMB our here channels. refer very, our our so I'll here, have FIs be in I very Maybe Yes. And it elevate direct want it but other we to clarity just prior pure we strategy clear. on with

First of the in our products and large fashion is tremendously strong. market wins that for in pipeline institutional wins those are all, the

market that long-term new talk right and what a platform ability on now to going institutions, and So be Flow love the we're information, -- Central, that yes, is Remember, growth we're about this but then financial banking that ISV to bundle in and the to also product they're we SMB digital right? buy I to us about and buy Cash have to this bundle, include the to our will that to also. talk heavily Clover integrate product is the continuing engine like heard a think And ability Cash which our an Flow going SMB it, Clover, bring bring grow XXX number. also Central, when as XD, will banks it winning call channels Yes, buying we I go, also you're bringing to our you bundle, plan as we

So but a Cash it's strategy. product, the you that I will itself standout by on strategy an you to and economics Flow -- Central through integrated which focus is the want walk SMB Bob

I to banking, a deliver think digital the cash and deliver SMB one in something to kind Clover we're deliver flow like essential deliver ability this spend, card of ARAP set.

X through revenue generate it. We've shots got banks loving are are that it. helping banks Our

to I strategy our So portfolio. question without want minimize long-term for a which articulating the strategy, growth don't the total is

Robert Hau

before large up as X I'd signing from it's live. for feel say, Frank them. on institutions generator points they We're the excitement Tim, gone out, and we have, financial demand revenue a the And encouraged good we've about those quite very banks

about again, Central, likely expense very encouraged the revenue charge and the which obviously, charge base themselves client, us, an the generate Cash for them. bill it's but it's and their an important for flow, to do of pay which business good revenue and so subscription, solution, their fee item business to closer bring for actually themselves, and consumer It very the is client typically consumers, small transactions to for us, clients for that them Flow opposite both a us as allows so opportunity feeling is pay generated banks very, small not very on our the

Operator

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

David Koning

you so X% quarters Nice market is job. that higher in this in is revenue. guess better there that's or getting And you're I the the grew new ex doing segment subunit, we banking data. Is the level can since question, about sustainable? that That's specifically? you've the X see the my something periodic given best And something or -- more

Frank Bisignano

I that. a generation merchant and in services tremendous financial demand that's out for business my And this and CFC didn't that. of cover I which both beyond demand. demand, our the comments Yes. realize see We include Maybe have capability, large institutions. about I'd

is which XD, the to goes It in winning marketplace.

us You fintech about heard wins. talk

have things Our look clients think with area on Fintech and of been where opportunity. a you our and with which we've we've years and we do in tracker, tremendous has our when been I commitments at a from recent have the rate. our to ourselves service of XXX% the published which done ago delivery commitment allows surveys clients couple that are point a could might you that delivery growing us synchronization differentiated on

I ourselves. distinguished think have really, really those

relationship difference making will Our strong. is is management a model continue. and Demand

it's talked back that ability variables So us that to those about gives I grower our about be we the on all confidence think

Operator

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

Darrin Peller

Flow accelerating of If is Solutions 'XX little implementations. we're just a Day. a talked again and that given into forces going it about know then and Obviously, 'XX Central have from strength in seeing. other I it growth just give Zelle understand us hone update segment, But you've at some and today? Cash Financial broad into through like we you just help more driving where could bit then your of the Investor on the strong is And and the

and that is what still are what see happening drivers you that? Just the major affecting

Robert Hau

Yes, Darrin.

expectation X%. for to -- segment we're our Year-to-date, X% outlook is excuse for X%. the Financial or X% me, Solutions So at X% to year this

So full year we're of outlook. the midpoint right that at

our and into Financial outlook X% the X%. we We as medium-term point go 'XX, to for 'XX to anticipate Solutions a segment increases

by and So Cash what and exactly right midpoint And year, 'XX the out, into we're benefits we accelerate halfway to to driven of the at this called X% you really expect through that the that's XXXX. X% continuing in online; meet broad of growth Flow of to our digital capabilities solutions XD, banking solution; a Central take demands that the hold suite financial Finxact; and coming our client of we have and year, base.

back on Desjardins, all XXXX we first as Verizon into feel are us go We lift. large like about and a the where quite good about year client the issuing live side, the Target you We wins beyond, 'XX. us and Investor giving in and things will also see heard Day half several what at in going November of that we and and 'XX have talk

Operator

Next, Dolev to Mizuho of we'll Dan go the Securities. from line

Dan Dolev

really the, sort in I Bob, just back the I and and merchant yesterday. pretty impressive despite at mean, like go Frank macro. to tone muted wanted to more nice say, results results. more Visa guidance I'd of

the anything So there year? there again, can maybe the in we idiosyncratic of is terms wins, a is little guide anything And is is the for guide cetera, you or you for there? what needs maybe suspect like maintained else the provide or et fact which to it in congrats. just happen Like bridge -- what that

Robert Hau

Dan. Thanks, Yes.

order top XX% to at we of XX% do grow end. total overall, to company growth in XX% that the to first at the slightly organically segment of organic half that, maintaining So year. our XX% the Merchant ahead to expect We're

talked and the the we remarks little of inflation bit interest. a Good prepared transitory growth. benefit easing about in Overall, our of

slides in down. that You has our number come see that,

we're full very things selling full previous was Merchant is well. our Clover that, outlook, and the Solutions, expectation now a year And maintaining yet X-point that's for strength the XX-point would provide that Our benefit year to benefit. like of

expect our business. benefit We on an our continue in tail America Latin Hub go our see increase Value-added an definitely from that your a that of So of anticipation end of remarks well solutions, quarter, both as in good the maybe away coming large clients. as activity enterprise to our little done from prepared this the idiosyncratic about at saw small additional third Commerce view we talked in this uptake in to point enterprise business in and quarter. quarter bit that

one I And of we business. and the client it's breadth our respond anticipating and channels. changes to the growth, are base respond that the depth changes of been capability hallmarks across growth XX set our our the the think years this We incredibly of business, our is Fiserv marketplace. be XXth year we've and our of consecutive generally, We of XXXX will in in double-digit resilient. macroeconomic environment, distribution product of But the EPS in that over

Operator

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

James Faucette

customers competitive cetera? could value Clover Clover if and from analyst But from how through talked and standpoint And you a lot and can the about sales to maintaining cycle to those existing you're the a forward you meeting feeling bit talk et on where solutions, a back I'm growth. your Clover at and about little how the book if one a a wondering are go customers to that little -- is, see bit reevaluating there that and they of get want growth. in using I your back back we November Clover more contribute questions going

Frank Bisignano

book, the to feeling about Thank been but like we're you. book between restaurants it. between services, mean product we're directly that strategy activity we're really, headed front from so the like thinking the Obviously, Clover into we refine know ISV, see international, where a to between verticals, be back continuing about our set to we're Thanks, continuing vast. that our build to how much opportunity Good that there'll we've like good hear day Jim. I we and back you. and come really say

of feel versus we have versus agent really book. what portfolios benefit at looking from about Obviously, we everything. it's are an performed. And really, across rates And our it at attrition total our are trading how look direct We good trading the outperformer portfolios ISO from it's attrition the ISV book. in versus how

there. investment to value-added in vertical up and our expertise ramp continuing services We're

So of track. commitments we've then we rates on X, $XX of and about X really X billion, billion feels made X, merchant and being the and and a $XX and business that really, tight all set think

and X global engineers with X and say now we patents got started franchise. have Clover to always I Obviously, a we

it in why Obviously, it's financial we is sights. our to lots of also key things have have So in our But great other straight we the institutions. portfolio. XXX

expect journey ask institution, if continue but haven't over that double-digit would on me, at should you expect or to of ever a I commitment time that down And a year. grow a you guided this us angel we to period every number made

So don't if that's Jim. I helpful, know

Operator

El-Assal final we'll And Barclays. for our to from Ramsey the line of question, go

Ramsey El-Assal

public I acquiring private company in wanted on more does the the that I appetite And that you towards an to guys to seem of side, have given about side for to ask public valuation set the kind move would the peers, opportunity multiples than M&A. tilt lower specifically, Frank? you guess much on be direction,

Frank Bisignano

traded always think first it's I had -- but say, we I been Yes, acquired I about deployment don't we at going acquired. philosophy, tried-to-true I think there's have wish think not like to -- nothing well performing say, all, we've and which that I of public more about frequently we geez, wish private, I capital that

for now institutions, and So them products think moving merchants, about our bring financial keep with we I the financial value ISVs, think have distribution our talk our creation. it's still to that's embedded I really us. finance value, today, all to it's an at Remember, that we didn't but ability our best about engine about long-term is

in our it's do public and how to we private as where being creation, looking shareholders. at really much So value humanly possible. versus And involved as not our clients it bring is everything thinking I'm

think So of that we I are. would kind that's be where --

their with I'd the reach and IR future. out talking like in great them a for thank to have day, and we've to got everybody you great further forward to look today. a Obviously, team, attention to any so I questions,

Operator

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

Fiserv (FI) 24 Jul 242024 Q2 Earnings call transcript