FI - Earnings call transcript Q3 2024

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Operator

Welcome to the Fiserv Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded.

I would now 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 a 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 uncertainties. number a statements Forward-looking results of materially to from

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

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

Frank Bisignano

us Thank thank you, Julie, you and all for joining today.

share quarter at is the we advantage. solutions this position increasingly merchant of morning, strategic and financial As it our third intersection is our clear that a results

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

cash share flow via $X.X returned shareholders to $X.X quarter $X.X billion and and in billion year-to-date, the we free repurchase. Our billion was

Businesses and to here and, our and Fiserv set interconnected, increasingly data, unmatched software, assets experience scale play in of across moving of given key a course, financial technology are has institutions role and money.

examples month. two in past are just the Here

and DoorDash and app, as The cards wages access enables poised Within a finance we services. a announced solution get First, full they rewards this offer best-in-class debit deposit economy as morning accounts, range can instant began contractors implementing to a be application company. financial for with comprehensive embedded its we single well to a more. of DoorDash, solution delivery gig to

out capability transactions Fiserv solution a Finxact the from reason rounded as Fiserv A and Our why was banking requisite a the client ledger sponsor. real-time was chosen. key manages

NOW emerging capability capacity Network. This sale concept be for where in proprietary our to Fiserv, next Pay A time enabled Bank real capability adding Second, the offers proof consumers. and maximize of payments merchants pay point available widely at Network. such the handling of via a a we number bank and year more over transaction are for we choice NOW real-time Walmart, for completed advantages will by with our of by consumers, merchants growing

teamed their we Walmart partner helping fulfill as Walmart up Clover a nonprofits with helping and businesses. Additionally, business of small business goal for platform, better a run businesses its to as management referral

XXXX In partner Clover product testament named as but a providers Inc. list, which for position recognizes best the and Magazine to our Power strength its related separate choice, Partners today, a of SMBs. BXB

value-added It XX%, Let and many highlights another me penetration the XX%, quarter. the At share of Solutions Clover, segment, point XX%. QX. up of revenue the growth grew with quarter a percentage organic was of in up revenue some strong reached from Merchant services

In friends in first live Latin with as in Australia America, Brazil September. in December. coming Asia went and family Clover pilots Clover the with full we in expanded launch the Mexico we pilots our In scale Pacific, planned, and

center, across control monitor their transaction which and and allows business locations, commerce and We enterprise performance merchants in also segments enabled the view. single operating to a regions analyze

few Central a quarter X%. strong client growth next solution of and organic we build-out gearing had The in of first another Solutions, months. Financial up revenue in our CashFlow September, implement the In posted at completed we was to

to our digital banking to experience for And new we migrate continue digital solution. clients XD,

over and real-time integrate payments, ecosystem, including solutions expect per Clover CashFlow a into on effect unique average Central, time. As we this revenue multiplying to user we more, see digital the additional XD

Costco and Fiserv's that acceptance wins marketplace a to partnership expanded offerings. services for major stored power provide the marquee digital integrated with demonstrate value-added of a wallet. of merchant chosen e-com value launch quarter and We to our another was longstanding It were

service warehouse. retailers' the in customers new shopping are experiences, online payment the or whether redemption The enables reward and

sign to solutions. on other We continue enterprise our to merchants value-added

to Another consumer longtime Data-as-a-Service wallet enterprise And client, loyalty Exxon, integrated used from solution implementation extract is in time to offering. because days. and cloud, payments, months vendor, can from insights for on signed data. the a it This runs reduce we

companies, Also Smart in large efficiency. as by the technology a QX, Ahold includes for Lee, Routing a services. multiple of debit global selected retailer Shop privately Pay portfolio operator whose & of U.S., Bank Fiserv provider Alex Delhaize, in chose food our Stop cost owned the

included our Credit well and signings Union in accelerated all Golden as two signings banks the unions. QX. institutions X credit We financial sizes of Credit of acquirer were These as of partners. Union First referral merchant as larger America

to we with expanded X continue our regions, chain our strong see We client Europe. grocery Netto, in momentum. a In major partnership

XXX value-added dynamic will We speed including to addition stores thousands Poland. provide supplying back PIN several conversion, in pads customer cash solutions, their and services, to currency accelerate in transaction new encryption across of

in in a strategic by was Hero This one foodpanda's primary as and Fiserv online, of companies positioning In local Hong digital spans world's over services payment wallets, Asia-Pac, foodpanda, multiple and of chosen processing annual partnership across Singapore subsidiary Fiserv markets Asia. the provide Delivery spend. delivery leading and Kong, $X acquirer to billion in mobile

mobile Clover's the Clover This soccer through one fast ISV easy payments accept the of services, Bombonera one We region. stadiums in codes, the our ways: in in the experience QR awareness for through X devices. there and launched To add in kiosks is the chose concession largest optimize of the partner, teams at fan platform and to the stadium, top and handheld self-service Clover league. to presence home can Sport to country's Argentina.

Financial since our Solutions exchange. BXB in a biller months, Central its first total will past bill signed using segment. union the ago. banks of CheckFree support for CashFlow the faster directory the X Four year a on including we to initiative on the Moving for credit announced be to AvidXchange mid-market payment XX

converting to DNA with Credit bid several other across states. integrating Farm competitive solutions. value-added Mid-America, their a a We'll portfolio reaches that won we September, loan cooperative and In be X

card PNC AI-enabled Defense in fraud Advance business. for signed up for our enhanced product issuing detection their

real-time India latest on our XX the to credit offering, real-time go as launching issuer account-to-account system. we And a was leader corporate UPI, on offers on Bank well with in processing issuers live build India Finance card including credit our as fraud as market and stack management India's retail payment full a the card Small loyalty, successfully a hub, Equitas here and continue capability X new to with product of platform. our India largest

Conference our of our In Solutions Merchant September, we hosted America revenue pipeline Client Annual Forum. group of attendees across the Financial North X,XXX and and new business nearly prospects institutional nearly XX% at XX% segments and This clients XXXX. our Fiserv represent through of

in partnerships, center, pipeline generated our opportunities information over days of XXX expanded growth relationships our sessions and stage thousands the of client of our strong technology X XX product and demos in enthusiasm well-attended our the After strengthened booths and meetings, and setting continued offerings, experience across future. for we for

the complex they managing form bundle. suite prefer of this many our a easy-to-use The a SMB system. and navigate that their that businesses to highlights One year products have businesses, for premise medium-sized small- landscape and was of is single behind this

Financial our partnerships, that Merchant the to have chain. across expert and of solutions products our products Solutions bundle with is SMB and segments, value entire opportunity cut the financial the SMB across clients Fiserv solutions the span own integration both and unique our the business our win Since we for With only technology the of through ecosystem.

business for and platform, business our horizontal VAS, Clover index the we process software, solutions provide gift insights. small and localized POS acceptance merchant including Clover and From ecosystem, vertical and capital, loyalty processing, the

financial management business at fundamental provide our is we SMBs. ecosystem, Central because success CashFlow From cash requirement a for

for expense business management track and card and core banking issuance, banking. We Zelle for also small provide management, Optus digital business spend for account

on While we they platform. of each will leading integrated be next now, these year, our sell separately

will bundle Experience For as FIs, environment platform. or banking such Digital digital Fiserv's the into integrate XD SMB

For small Dashboard Clover sold and all SMB into the Clover through will bundle be channels. businesses, integrate the

financial to to I win. as is compete want from for Based quarter. FIs said breadth again. view clients and SMB's old SMB I across and noninterest and generate back opportunity Merchant-related can What's something our back SMB financial to Lastly, innovations an grow institutions better Fiserv on and a services bundle, retain knowledge are full and come this With deposit they it gives product, fees. the new deeper position. of an last into

ongoing couple growth next to capabilities engagement, onboard the We integrated and tools and we and help lot contributing to customer year. capability this with FIs by start leads expect our bundle readily to SMB them interest generated of a Showcasing merchant SMB digitally.

guidance. our to Turning

$X.XX. guidance For XX% $X.XX XX% to the the earnings organic per and to to from year, raising revenue rest XX% to to XX% are share our we for adjusted of raising growth

we initiatives vision all a investment X across that's to today, rolling how into replicate. pleased strong with clearly to look one I As Fiserv I the put new out, ago hard years we're motion position the am has brought and

verticals partners, to The services our results and enterprise executing continue to extend real-time This portfolio, many in ways, new on internationally systems, to to grow and mandates ecosystem, issuing payments, our merchants, for we geographies, expand and core we of show as use will X data each continue add distribution banking modernize corporate are more. that and financial enable institutions. merchants add more

ecosystems services, many solutions next serve are leadership only the as breadth intersection this and management, merchants firmly of provider both established, card combinations. acquiring and and of With issuers between both we foundation and that and other spending the digital merchants product and the at growth fintechs, scale, financial With technological across banking and data cash answers steady moving institutions. and needs fintechs, to the we wallets and serving generation

U.S. is others. DoorDash, This and Bank, is a vision. Apple, Walmart, not our initiatives in today with Palantir here It

Of course, stages. these early are in their integrated opportunities

the longer as will excited measure we about and of are sustainable our success today, over Fiserv be medium growth them As for strong, term.

on financial now, Bob to for performance. And over it turn more detail our I'll

Robert Hau

and Thank you, morning, good Frank, everyone.

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

to strong margin demonstrated Third capability quarter again our growth and maintain revenue expansion.

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

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

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

last organic growth into QX than X.X mentioned call, earnings total less during of in quarter's point turista contributed quarter. and As Dólar company extended the

last provided to was to adjusted high guidance the the compared earnings year. our share share quarter year, the earnings end XX%. XX% prior per $X.XX $X.XX $X.XX XX% of full in per adjusted of to compared Year-to-date, Third to our on XX%, in up increased prior quarter year $X.XX

for flow and $X.X billion. cash flow the cash $X.X billion, free year-to-date was Free quarter was

in timing due to for in prior cash credit calls, mentioned this cash expected As the the came first year related to lighter after half green program. earnings higher through be a of second half much we in refund tax the flow quarter. free flows The the of third

by from the Organic on X-point Argentina above-average segment, includes performance growth and benefit in XX-point XX% benefit in revenue the XX% to was the Turning Solutions and in in year-to-date. X. year-to-date. Merchant Slide This a quarter inflation segment quarter starting a

did to X rates this growth the The turista of high, Merchant historical back in interest to X contribute remains Dólar in eased to not late Argentina and contributed excess inflation in quarter therefore growth percentage point year-to-date. quarter. are points quarter second averages continuation revenue nearly and While organic and

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

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

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

new XXXX factor manage Kitchen System, the hardware restaurants XX-inch to form this brought Clover orders an year outstanding market year, we been launches. has for KDS demand. XL, and Earlier or in larger that efficiency improve Display to a

and wait help restaurant towards revenue the most an tickets. QX, oriented and version which launched thinner And increasing the we which XX% retail. new of lighter, solution ordering, and introduced staff Compact, entry-level launched drive expansion in Clover opportunities. and We XX% that wait the TAM new we reducing create also device called Flex self-service handheld allows the recently, VAS Flex will average Kiosk, In a Pocket, is for times

volume Now growth the than and macro levels. pace. business similar in respectively, of slower moving Small is XX% spending comfortable on the According external volume lines. X%, consumer variety overall was quarter adjusted appears X%. was This to a but a to payment and growth of business QX last organic stable year, revenue to growth growth at indicators,

attributable Fiserv's our likely to presence Fiserv and index year-over-year small The growing business heavily food X.X% performance slightly results, small XXXX. business been QX was of is which of difference different compared growth a international weighted have such and sales to more of ahead faster. our for and volume business. categories, is services, to nondiscretionary QX mix X.X% X.X% which for showed as

in point growth to annualized Clover of XX% and payment in grew volume VAS growth the increased driven X SaaS sequentially Clover penetration Capital QX, on revenue quarter third by by XX% package. XX%. Clover in an the

will services. With $X.X XXXX retail Clover VAS plans progress, remain revenue billion rolling achieve QX, in track we vertical new and we of to In for XX%. targets out and this on be software our of penetration

organic was XX% growth by adjusted VAS and penetration. XX%, Enterprise the transactions XX% higher quarter revenue respectively, and of and in growth driven

Argentina. includes As with small benefit growth in organic some in business, transitory enterprise

growth a is to continues client. processing Above a QX direct reflects in Hub ongoing and of now enterprise customer to Xx and versus traction a QX. from business to PayFac compared the when ramping the average large almost transactions Xx daily Commerce see processing

the Much more gives And Hub. existing Hub forward. sell growth clients opportunity to to the And they migrating of clients increasingly the Commerce now to are platform going enhanced fact us from the Commerce connected comes are that the solutions. on transaction VAS

decreased certain organic merchant were where processing represents the the growth This own revenue both processing Finally, with the and revenue our processing Year-to-date, declined consistent partners X%. organic quarter and revenue ISO X%, bank adjusted in back-end business do for by we while flat, relationship. they adjusted our expectation.

Solutions million increased quarter, XXX XX% income the Merchant points basis up Adjusted adjusted segment $X.X increased operating $XXX XX.X%. with operating XX% Year-to-date, XX.X%. to margin XXX margin to operating points income in adjusted to in to operating the basis with billion, up adjusted

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

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

each business the XX%. be at in by Growth the payments continue Digital to at transactions Looking lines. organic and X% strong Zelle revenue grew adjusted quarter. in

We continue RTP such and payments as clients to digital FedNow see demand products for from integrations.

product Bank billion for XX last we last interest our National X X bringing financial the integrated total Counties high wins we to continues Central, months, the institutions, Amarillo announcement. see ARAP in X the X from since to total, CashFlow solution In institutions. nearly $XX In and months, signed Bank. Tri SMBs, had

quarter, care. and X% grew health revenue adjusted various across X%, and and driven organic verticals, demand including respectively, issuing, government by In in the

HSA health quarter, HealthEquity the to our processing Optus, the accounts converted we card vertical. FSA leadership and During care issuing in card solidifying platform, our the remaining

Digital, credit our COCC to Banking Last now Experience XD, will on of organic XXX adjusted and In or about relationship the X% we quarter. banking COCC, the online solution. the provider and and mobile XD as signing Center, client-owned quarter, merchant a include third we solution. grew expanded known Computer agreement banking which in banks with available revenue is Connecticut our unions quarter, to a which technology. community On-Line is be spoke

strong billion, with segment at X% segment operating the operating operating $X.X operating to for adjusted adjusted up Year-to-date, points came the billion, XX.X%. X% income Financial for basis $X.X adjusted margin XX.X%. up XX was Third and to Solutions was quarter up in income margin adjusted to

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

be We expect slightly rate the year full to XX%. below

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

down X.Xx the quarter our ratio EBITDA Our debt from with in adjusted in leverage in target second third to X.Xx to range. line quarter, the went

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

Turning to X. Slide

a in forecasted share our XX% per to range and XX% to $X.XX from earlier, is year Frank full are acceleration growth midpoint As at an $X.XX, This raising of a $X.XX from to raise also outlook to from XX% $X.XX. adjusted to $X.XX guidance. earnings guidance $X.XX said XX%. up we to EPS the from is This our adjusted original prior

XX% growth raising We organic our XX% from to outlook to XX% are revenue XXXX XX%. to

raising Additionally, basis from to points our we least basis at points. more are outlook XXX adjusted expansion margin than XXX

Lastly, free updating above we our third $X.X and from in cash driven about $X.X guidance quarter by cash are strong flow billion, to the billion flow free the year-to-date.

Given excess quarter, of continue through Solutions. for points the of but the points turista we fourth now inflation interest and benefit the company program see continuing for year. the easing environment current to into end We Argentina, X the assume X Dólar this the Merchant total from and year in

Dólar total inflation and and Our company full benefit organic turista. of interest year outlook point transitory XX% over X of from a Argentina growth in X-point just XX% to includes from growth

transitory our of X% the be these XX%. XX% growth to of guidance XXXX upper factors, to would XX%, Excluding revenue medium-term at combined organic end

the adjusted to impact X.X% foreign anticipate stronger, inflation to and and continue to exchange remains though forecasted from excess will revenue a The growth we headwind currency tailwind interest. from relative declining be

have we last been items past you the on that the many month. about month, over progress asking made in of X Finally,

have financials impact our of is disruptive to scale do they change not ability and an our demonstrate in business way a navigate business, not opportunity. While to on outsized given that these ongoing our open our the in always

First, reported, venture, X, take Merchant joint portion will Wells expect business. Fargo April as or owned XXXX, of previously cash we of XX% at time ownership Fargo Wells assets Services, on our the our to for we receive which

to to merchants, related new Well's Fiserv other processing services provide and continue along services. will existing with

growth see As adjusted X% no outlook XX% to we XX% to this from a transaction. our revenue adjusted EPS growth to of result, and medium-term XX% change

processing merchant fifth our extended business services we Fiserv, PNC enterprise back and for a Secondly, Clover venture dates processing XXXX, with from supporting small to and The to the relationship growing PNC time. joint expect with and clients here. have presence from we hardware

optionality And Georgia approved apply purpose limited merchant anticipated in to operational to is be acquirer acceptance is third, of for from sponsorship bank a the application the state approval purpose that networks for charter. card This enables direct the our acquiring. Fiserv XXXX. for charter special a and merchant state for allows This into

It's banks becoming Fiserv open important is not deposits do. not a traditional take to write that clarify loans or bank. will as Fiserv branches,

that. itself activities. no intention fact, traditional not doing in And charter banking in these have does permit We the

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

Frank Bisignano

company. Thanks, but corporate they are minutes who represent Bob. these responsibility are I'd a investment few we because parameters, our initiatives, discuss not like social take a to as to because

and Helene Hurricanes Fiserv of Milton people devastating businesses, clients. millions including many and were for

to areas. Our Red Cross we as quickly always, is supplies action, support delivered the the to sent personally response, and affected to take and

our to of partnership disaster the and businesses, its investment our provided Business Fiserv recovery of impact part for Foundation the Index Commerce the support small with Small the U.S. preparedness hurricanes. efforts of with and on we data As Chamber Chamber

guide insights these and small levels to and recovery. create and that used educate efforts targeted to, leading boost business inform disasters on support are being policymakers philanthropic up response granular and investments commerce during after stakeholders, These natural

a as Disability Fiserv quarter, the of for row. in by veteran-friendly score a XXX the each recognized year top third Index and company Veterans Equality in Also Magazine on achieved a the was U.S.

institutions, large-scale that first us with Fiserv its the receive all organization Association, presented provider minority depository this Bankers honor. trade award, to Corporate National represents Excellence tech The a making

strategy. and Finally, sustainability building advance we continue green to design our

New Jersey previously. platinum lead recently status innovation lead status centers, headquarters Milwaukee achieved Dublin, achieved our gold which following Ireland Our and

These financial of are many you how the and dedication of intend just work today there. showed just strong up us is Rankings top quarters. to our story hard some straight importantly, in about for our it IDC the up performance how at the in put we year, a and But FinTech examples heard. This show second stay most

the produced I'd like has our of tackling scale our years building employees than and significant thank and since and financial trust, That's achieving experience of ecosystems. XX to X merger and across for contributions unmatched to their these day-to-day strong the merchant more for XX,XXX results. blocking consistently and years achievements investment through innovation that

for now please the open lines operator, So questions.

Operator

[Operator JPMorgan. comes from Instructions] Tien-Tsin Our first from question Huang

Tien-Tsin Huang

accelerate I you want nicely enterprise. than transaction to more the ask put there. growth on did that up It

Bob, heard, retail there part it relationship, to a then conversion mentioned there I So it. transitory was a of was you've and PayFac like. sounds

So maybe think level fourth just good what's we sustainable go can that? as you And about quarter? through a the

Robert Hau

transactions. Transaction Yes. QX. you're see increase matches over in actually right. in so It's the up saw quarter we was did QX. we in XX% year. up the what That Tien-Tsin, X% saw from in an growth prior We

we clients. We definitely variation, new see particularly some on bring when

in third a really And We'll it fourth quite enterprise volume. as my full prepared And ramp a did continue levels." have quarter as quarter. bit I've remarks, can normal then to the full Some of space "more little large this said return get capability in will or them see be in begin to of that we to large. in PayFac they

it. We obviously about an year-to-date on overall for XX% at impact saw well basis. adjusted good has average we company an Overall, the on that feel in very a of which, from the basis, adjusted great also business again, Argentina organic ahead that growth, line,

Operator

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

Darrin Peller

how the you're overall, between to signs is and packaging Frank, cross-sell. alluded you more strong segments. business remarks and showing I And with, know, together start just really more of really we that prepared in Could your

you examples shaping accelerating specific that just of segment where the conviction your Financial if of Solutions very up. the reiterate could into And you Maybe around 'XX. then just see some

I from to to X%. think you going said X% to X% X%

and Just seeing. what the reiterate you're what why driving and forces

Frank Bisignano

to So X very set to -- years like quick this assets ago. that strategic put one of were FI. that think place about go merchant the I always right? of I back the it say construction together was we And I'd complementary a company, can to in and is highly believe

be of Just our to strategic on in FI of to that. put end merchant the total, in choice partner front ability the Clover deliver and

power owning to And a of what through client then further, bring there's of debit our network and to institutions across the largest base and merchants. ability our

go And of assets a the and terms take then and integrate technically bundle ability the of about growth further us future you the and all right? to we the step now, initiatives them in have SMB talking

merchants on there with Apple the it. of think issuers of and Walmart and the is together Pay then then and front with see You example you see see us crossroads a FIs, and line of I the another leaving us spot, ability the and can great us place

DoorDash great example is I of think a it. right?

so look international and on at up showing us." every deliver take the to on Commerce our financial at that now capability together a look runs okay, and work Clover you expansion, Finxact, actually you you you ledger Dashers. in the Hub core the about, enterprise as And in go, you Finxact headless to "Okay, be put a a And you famous got you're here then think for institution a bringing segment. XD when And

institutions local largest through I with bank, union and to of the the think community the from bring take that, company a financial way construction top the all you then or assets on of So a we the to it. credit

you the power seeing right. saw then there, if people the of I'm firsthand. were it. So brought X,XXX think I And forum. we And you to you're And too, franchise

So job And we think do why always that's a the we long for too. such better, we see we think growth our can sustainable term.

Operator

Next, the line to we'll Bernstein. Rawat Harshita of from go

Harshita Rawat

rate, capabilities, and Frank, there's talk especially given odd about capabilities, signature grow. of to the U.S.? in -- some [ been how less happening can STAR STAR ] is about the Accel, changes you talk Maybe positioned

Frank Bisignano

Yes.

for So window one up. for wanted I that transactions the believe to benefit, we about opens And the for is think always right, to we compete things client of our benefit. client capability think that our

STAR We ]. strategic the is and Accel sit asset is believe merchants on of that clearly capability at financial institutions. and strong [ to crossroads a PIN

to We signature we dual choices level. and compete for And transactions do We capability. at the have every our have capability. give merchants issuers messaging

right? believe strategy, The it, the is support We one to our strategy of opportunity. base. is that's So client too, steady this

You're going And have you'll our rise in and continue transactions, volume institutions. share not to this our help see our both of to to an repertoire meteoric merchants continue but to asset we'll gains. see financial

Operator

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

Jason Kupferberg

of was little Clover. on I a a couple here. Just growth questions down Volume revenue growth bit. ticked know steady

Just any on those thoughts for QX expectations metrics?

I a think the quarter. volume next comps get little also bit revenue harder,

trajectory launches some to near-term a launches, know we be about got new there. product I it. should how get support you've thinking to sense wanted just of So country

Robert Hau

Yes, Jason.

continue of volume see we growth yes, out and good to Clover our So solution. overall revenue

us are to where billion a we about that, we've be $X.X by It's for know, a quarter. gets you growth to exactly got the on we basis. where XX% compound a where target As we're That achieve needed were rate year-to-date XXXX.

continuing that as good. to part year. value-added last remains that point revenue. it add isn't was to is X key as obviously services XX% A It ticked of Overall up of volume strong

last year. very is strong of Some that

going this We So also good is bit But bit. again quarter. last see into where future. saw continue "difficult that we still a consumer right what the strong, of we We certainly the that while a a spending feel little about that eased still has spending quarter. saw comp," and but now

Operator

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

David Koning

for segment, question, to teens of of XX% SMB many my growth the kind guess, you kind in I quarters, XX%. had

for This in X%, a being high quarter row. Clover in the was many despite XXs quarters

And kind how outside talk So that to we Or maybe of maybe should kind expect just should reaccelerate we then going forward? Clover? of what's happening -- of through that.

Robert Hau

Yes.

down benefit there's saw where So to the meaningfully quarter beginning of going Argentina last year good easing second quarter tailwind has -- on. XX%, XX% -- both volume And this SMB to revenue. eased quite a impacts excuse X things or, our certainly now all in SMB segments, year, that we in X%. of Obviously, actually down of number of segment, even, since Merchant me, a first but to portion

the that between a The play SMB mix strong. strength see And kind Argentina. in -- quite down is next anticipation thing bit large of has a is shifting particular We between does differential enterprise. We've other into that the quarters. or and of out benefit differential out been couple enterprises seen there of

what's into to I difficult happen that several to in tell the you, gotten right continuing the future. bit and Argentina it think exactly to or we ease. that see I'll going last over tailwind predict excess A quarters, pretty we've

presentation to may You a actually charts, have to continues returned has more in historic in tailwind, although levels. noticed or interest normal our back easing be but inflation meaningfully, our

subsiding tailwind that so And is quite meaningfully.

of And revenue course, quarter. adjusted continues be a real the to get in basis, headwind an to if FX us for you

the segment, FX. adjusted a Merchant to segment negative our from For -- for impact impact the we -- XX-point revenue saw

SMB, and of out play those in both non-Clover. in Clover all So

Operator

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

Timothy Chiodo

next year accelerate, year, to for guidance to also which want revisit I slightly X% revenue to X% to year. next the from X% is to X% so this Financial set Solutions

of about appears very list we to When long good a the bullets. reasons, think be clear there

streams So CashFlow Central. And target incremental there's I course, then, Desjardins, to there's go revenue live there's the Verizon. the are expected all with year. those of their of next business, there's believe

So hoping reacceleration a confidence maybe could of particular -- that little I on for talk bit just year. the any maybe those and/or projects in about that you you have was next on elaborate or touch

Frank Bisignano

Yes.

couple client see added we our heard where we and about client the of pipe, ago opportunity were amount you greatly our talk think the I So to weeks at interest me the grow added a of only conference reinforced base.

That what unexpected. a were not the year-to-date was the That grower on we're expected we was outcome. Today, in quarter. for basis, exactly a as X% we

you now, Finxact growing continue add. I about think think to will when and that clients repertoire, right is the

being this which another year. bundle, [ we're every-other-week embedded about fundamental, You SMB deep saw my in what which language, simple look over a bundle creating am at use has ], as with doing for us finance reviews Then right? in I talk DoorDash I you that's

online that the So we'll that of on numbers. be the within my pipeline, will be conviction bringing and depth

outside we the We But to that And opportunity within and shows continue merchant opportunities, up within banking is reality nature the this along because see banking in is company. that -- and before have segment part then and construct -- of but talk and merchant of we do the P&L. bringing even we'll more the than merchant did FI, segment. the we the the U.S. about other that also

one data And We institutions, believe them. to other that you be our I've the with in, position data and their banks, engine. opportunity we're our we smaller and long-term And to touched around on financial for AI our bringing one. add medium-sized what AI natural need I'd items said to that's

forecast number today. in But the not have data and in We and that's data in the Now a demand, the industry, best don't we have drives we a box. have AI.

such say, have just we a we're do. posting in I it I these every has the the think can it base as all we that could would conviction of X fact what day, So of and we And do that behind better, engines us about business.

that's sure X-year regularly. at it produce on to why look, I able margin look at we've you work if Even what never-ending going not been but So margin there, we're done and saying I'm have our have. level we've we to the expansion,

Operator

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

Dan Dolev

an these and look see of Frank, update you on sellers. give us in they traction Clover great Clover the Go micro and of that solutions Compact, new a bit strategy like initial products? on for you maybe Can terms little

Frank Bisignano

Yes.

as client base, think vibrating about those We own our playing to We in ability client that about space. way. I see in to want you our base see So more. products expand just augmentation Compact food TAM definitely our talk right? for also products the the We

but top bringing them, distribution. different Obviously, about we're you we're to early, of VAS outside where, also we're U.S., right, cases, going a that those on have channel have going but to may of products And they market. catering still the we many different forms will software international, think be in be to and should yes,

little So also current product can it a a a base scale terms at software too. work mobile that them client merchants, little to bit more gets us augmenting but of have more times, for down coming our in

Operator

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

James Faucette

bit wanted question, the this seems ecosystem I expansion and Dan's a it to ties there's that's at bundle, the to into of within capability and follow but ways SMB little like to Clover a up new on happening lot then market. looking go

Clover thinking billion those we those and of But thinking to been to gave we within some and things of your there's mix should the that customers how targets be -- $X.X you in any about be of get type or some know play that terms the target. about change book in should will thinking for I How sets like roles if and target? back

Frank Bisignano

only that's like Yes. one James. there's job, five. all Good allowed, but I question know,

but Let lot try me We in the ton than more some of market R&D that, and we're the it, getting they're have love this there's you company shop. new what's really to don't inside in historically, talk thoughts. of of about ways, IR going for me to team first it, a on to always the always not when a that apt all, R&D

So this has space always idea to there. more us capability the SMB been about bringing

it LFIs in But it and labs, to partners and I and deliver there. a We all. up this partners then acquisition out end our to put grow us think be way other can XD. spend can you and Clover you Mobiliti future and We saying let's boy, up." channel new and integrate helping beyond Oh back we XD it to signed think can of product. Ondot became acquisition start go then if "We could about yourself, embedding

space a capability. to are SMB of we the because of partner why in who for ultimately That's people choice partner our want

to up capability. it So in a may you think you more for now I station, be think back switching yes, swept a FDXXX beyond got Clover book much have there's that, there your broader out reason a about because there

if churn seeing about merchant you. you're talked of think Thank impact the rate, of of None because which happened, than size capability might the we But our the a it have device ever to than book, kind would to natural more we back newer. Clover full of opportunity this actually set. going of more from I older an

on there. track right you're think the I

Operator

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

Ramsey El-Assal

country enter how does region expansion, rate? a or long the peak from to new take market the On to you time it Clover ramp run international when reach you

new kind some of we already should -- a should pauses sort to steady sort we of in while build up and going out also where here? expect you've the in? you And expect you markets a rhythm spool of launched Or are for of countries

Frank Bisignano

Yes.

So a I'm funny guy.

I to more. rate keep going driving get think never just run to going we're to peak because we're

there the I'll So I that's country down on. -- a ago. you of Mexico. journey kind if Brazil to and us right, for in in December the it kick-off launching of years like remember Argentina, But X pick be want and Brazil, we're the it, on call launch

So a full market. first to of it's to get all, build

As Brazil, we than launch revenue it, and we immediately. opportunity more merchants capture we perfect expect it today to in example, more do

have to peak, scale we ability it to great partners. Now our

America, motivated. that's a were he you if head Caixa very Well, with is think would sitting distribution. of I huge our Latin say

to They are them that now Now distribute. ready and trained. to we're right doing get going

Central, and But or but but to level, a multiyear not nowhere some it rate multiyear X the year's number codes from So will if a be years a I near towns, much get build it adoption it's affects in we think all want able growth see is about ZIP so CashFlow ramp, Brazil you in multiyear as ramp. Brazil next then where at weren't 'XX, because and now. it, like to

participation. the for our today. And reach to IR day. with Please So and I'd team thank any like great to questions, a have your everybody attention out further thanks for

Operator

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

Fiserv (FI) 22 Oct 242024 Q3 Earnings call transcript