FI - Earnings call transcript Q4 2024

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

Operator

Welcome to the Fiserv Fourth 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 and Chief Executive Officer; Bob Hau, our Chief Financial Officer; and Mike Lyons, our new President and next CEO. Welcome to the call, Mike. you have to great here. It's

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

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

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

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

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

Frank Bisignano

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

at all we year high one We conference, We XXXX set commitments. another Fiserv very back of. we wrapped are at our and expectations investor successful that proud those and exceeded up

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

flow share $X.X we billion, $X.X to shareholders billion via Our and cash repurchase free was XXXX. in returned

and Financial we and Throughout value-added solutions merchants, Solutions. construct advantage on of We and of offering, growing product large multiple the e-commerce advanced modern the Merchant our offerings unified added year, clients, unique assets the strong this and strategies that portfolio. traditional both across gateway take strength company of enterprise with

navigate X winning clients. and financial complexity services we of their the hardware continuing institutions extended merchant more SMBs released services acquiring the running software, to We've growth new focused laid strong We for as foundation we on help solutions business Clover, countries. At offerings, businesses. built small and added to new our

development compelling biggest expensive. solution from looking of of integrated CashFlow CashFlow full this problem. fall. of ineffective Central particular, business completed offering flow, more small challenges. one for. We to as in part offering remains been the grow cash even SMBs single Demand the high. Managing our our have is the in to FI's easy-to-use system, It's this Central is new will suite, time-consuming and

for can suite a span our that offer The no clients ecosystems, financial competitor that and products a this today. solutions and no and SMB single competitor single merchant has solution combination

insights. merchant and management capital, a provide solutions, operations we payments, software. VAS, and business employee, ecosystem, and Clover the From solutions, Clover including vertical customer for localized small hardware index software

platform, management, Optus SpendTrack ecosystem, business provide banking. Central, From SMB and business digital full It this this available management will issuance, be our financial late for card our is small for be and CashFlow with banking The already year. we expense Zelle hundreds live implementation will digital which an quarter Clover core for suite of with XD, for FIs. on directly account integrated banking

clients, as of Finxact, Lastly, strategies, new in and our and technology embedded existing in for FIs finance well we Picks a larger Zelle, modernization as payments simplified migration with FI enablement to core our be continue And which real-time partner FinOut. for include and pioneers. choice

work extremely a off Thursday trademark Mike urgency, the Monday. capped to in efficiently he That's Fiserv next here it focus our kind style, Fiserv. naming we and announced following We that did with bring and at with president on our this of Lyons the the all work determination CEO, of an swiftly, results. and progress and we high-quality started We

what I since the have because only that with committed the operational years. and I've will execution working we because but not know under he to continue over seen the of that you excellence speed of Mike the I years, few for leadership. experienced last It's have and last Mike's started, XX this

partner, tirelessly of and Fiserv ensure long-standing been a and working the bank. P&C, have full he and the from strongest largest I team us joined and to Since Mike leadership Mike smooth one a know, you started, As transition.

Let a me hand Mike say over it to few to words.

Michael Lyons

here. in including to as for it a she at thrilled client a known I'm different I've business, large a wife's hats, time BofA P&C, of long and be number Fiserv an a my banker, and at a Frank. small Thanks, client to investor, for innovation, where for has is our clients track been amazing shareholders. operating for and our the and create with to efficiency, company ability customer years Clover and an growth, add a fullest. Fiserv value an outstanding utilizes importantly, value its proven

here only distribution the and my breadth and ask a our in to talent job, ideas quality the technology work The opportunities. stronger. and upon. the After excitement ethic partners, the of the the of couldn't and has for I clients just on and grown products, platform build better week and being a team,

laid in strongly leadership out financial I now, our smooth opportunity XXXX. and in clients. a late plan offers priority of on Right our our believe #X keeping meeting as that it to significant transition, growth and that Frank merchant ensure is institution by everyone team needs executing the plan the laser-focused

all adjusted the months. a matched discuss I by is this forward has of opportunity XX-year only growth to coming impressive track Fiserv the very look that front lies us. EPS record of in double-digit to meeting in that you

to the future its the company. worked the front we've and seat And lead I've had the last to mentioned, thank row Frank into Fiserv we build effectively thank leaders year. country. a Board of And I closely and him for watching for this opportunity both Frank XX Fiserv for next all together our and course, As service years. his incredible Frank

Frank Bisignano

Thanks, Mike.

Now full the fourth discuss numbers. turn to over and the year, highlights call I'd quarter the Bob I'll cover then to from like and some to

contractors full banking single large banking delivery and its issuing scale institutions are key services quarter, connections most a our them last complete we finance win our a from use and Embedded to between is the of merchant, to and unique. And case financial growing DoorDash within story, announced with Fiserv businesses makes The Fiserv part address combined. offer from ability the here assets app. first

Our and a quality, pipeline accounts cross of have with here. are the been true number since Finxact onboarded of a grow. finance as We've us real-time announcement, embedded other our phone speed and to continue October opportunities differentiators and already capability and and ledger executing cards for significant

a choice Central, position cloud-based Clover, HR now full payroll as our to millions serve QX Together, with solutions. and of a as business includes and it and our with we reinforced partner management payables signing runs small that management integrated small accounts with business them point-of-sale the platform, platform; receivables strategic and its of businesses industry-leading CashFlow and ADP We solution key a ADP. partnership we'll bring of

to small will Clover, Central. to Clover flow ADP will integrated The payroll. solution of on or initiated to solution Essentially, than in the into referrals their are businesses, QX, mutual paying customers, will be whether client managing In payroll easier respective solution money as they ADP we of fully resell and work our the bills selling ever coming for teams integrated and offerings it months. manage our out and businesses make to CashFlow integrated the deliver

referral in needs, reinvesting financial address new quarters, business, us acceleration for institutions as acquiring For of old the seen we've is again, few as you've To me partners. merchants. recount their the especially our financial in merchant outsignings Right are SMB heard institutions merchant how spot. acquiring of sweet last

in We're New we including XXXX, In added we further partners, than XX% bank. FI merchant York-based $XX X,XXX as opportunity financial partners bank XXXX, did within our a with to NBT, billion existing approaching significant drive more institutions penetration partners.

full including integrated offer can Fiserv deeper deliver solutions, acquiring to we'll Clover. this The customer help position. better grow SMB noninterest financial leads FIs and they a higher can solutions, an knowledge While with tools onboard digitally. retain gives SMB's FIs SMB generate breadth clients a and product, into With only merchant readily find full deposit This suite and and others ability of view them fees. year, couple and merchant

wins key of dozen of Brewers. and wins. our businesses the the each increased Boston Garden, and Solutions, Clover speed and Celtic experience. We the home with other kiosks several placed Clover in had stands' Garden In Merchant multiple improved TD venue Milwaukee Sport have QX. a another over with TD We in sales nudged Bruins, of that self-checkout One in

operator hotel-based is the a restaurants large the This hotel on for Restaurant, package. chose hotel X,XXX and from to U.S. website fourth solutions Clover in for BentoBox sign chain the e-commerce custom digital their major At Bento

to as while add QX, a by clients space, continue orchestration signed Hub, protection. enterprise to our up to businesses petrol our company Bank value-added a enterprise Pay sign for to API-based and add solutions. layer the fraud TransArmor suite product offering, our In data AT&T decided service Commerce on that connects large and In

their support is increasingly the importance business decisions, to AI are payment and cross-platform deliver business security recognizing Fiserv sets drive overall data data to Merchants to uniquely positioned intelligence, needs. and of

an that supports government a now our authorization further wallets, for relationship and Technologies, driving broad solutions enterprise devices, solutions, strategic and new including signed are integrated We mitigation software as into We more Tyler solutions include our expansion added provider. to Clover, digital of with such full governments omnichannel state processing optimization.

as and increasingly ramped quarter. processing fully PayPal relationship We for their signed providers Latin we And and are payment E-commerce Fiserv America coming well. with U.S. in PayPal to fourth a when the VAS.

rewards an mortgage fintech they've and payments landed embedded providing operations debit for Housing optimization Payment. focused card loyalty on we'll built, will Hub, firm also a add be international platform, the Lead acquiring and Commerce present We Financial, the that remittances not routing

And driver dedicated Android costs Tap to significantly as use their services and enabling finally, the Hub. as maintenance. deploy Curb our Mobility, hardware run will and reduce app drivers first mobility payment Commerce terminals, They be company, decided their to Pay, This accepted client to devices migrate taxing leading for in-taxi that well. to will devices to Android

client strategic in demand reached to and and omnichannel leading for all point-of-sale opportunity sizes in e-commerce, signed develop to response market banks. advanced verticals. in processing Spain of and to Spain in of payments Fiserv We systems country's agreement Unicaja, solutions In a EMEA, the a tools a merchants including with growing of first work from all one in together

be in and traction Card Flex the Spain Riu in their with There U.S. and Canada. where will Present January in was providing Hotels, Clover hotels a across acquiring further we terminals

Solutions the core several our banking In segment, saw of we Financial wins.

Independent South core, approximately billion XX the assets now State add of billion plans recent acquisition premier Florida-based our bank, to to following platform a on Bank, $XX Bank. regional

relationship U.S. firm, to competitors new a as Loan, prominent core more in a with accounts our analysis than billion and in [indiscernible]. with Third of clearly other next-generation building. Modernization continues performed global production all & the headquartered consulting momentum is $XX clients has DNA Savings asset This combined. Finxact Federal bank by well According in

for In Inter to Banco App just Brazil-based debit DoorDash, one investing a we we the powered reason real-time bank money of in accounts market to payments Super few to XX And loyalty access support for just cash months. months, movement, and win. personnel sponsor enabled DoorDash Speed is points we and international back. important U.S. and delivery

FirstRand digital Finxact was its growth by ongoing Group and transformation objectives. power chosen to

of largest with in native, cloud one will become banks enhanced assets, real-time to the FirstRand in data. platform offers is institution the our billion over Africa, access outside banking of that to and the select first financial $XXX

a total had for of Central we XX XX since strong a clients very CashFlow QX, signing banking launched.

Harris starting QX Affinity BMO CashFlow XD. to and Credit Union, CheckFree National is Florida. pull Some Central and included including of other the through City biggest Bank product UMB sales, Bank in of Federal Bank,

clients with important for was to many continuing on development be our uptake based and strong platforms. products success integrate to designed of year of on XXXX adopt a new early easy and Overall, leading signs

guidance at cash beaten we strong margin, the on transitory execution, XX%, organic Compared final exclude while expectations XXXX, adjusted Argentina, revenue had EPS have growth. out year based organic If XX% growth a met adjusted our results operating free to we healthy sustainable of with total level. factors XXXX flow company on was and revenue start and the company total in full from laid

for decline For XX year shareholders average value a worth returned outstanding $X.X form repurchases we nearly share billion XXXX, the year. shares the million in full shares, X% the in to to or of contributing

investor conference we path sharing are our November down XXXX. set that plan in a we the continues Today, at

the basis Argentina's of operating cash contribution points stabilizes. XX% EPS adjusted greater organic growth guiding assumes expansion, as of XXX guidance roughly margin free are growth, XX% This and transitory than flow. we factors zero to $X.X XXXX, from economy For revenue XX% XX% adjusted billion to

and revenue natural recurring model, and positioned to products, of earnings flow, we operating ongoing lead well extend deliver double-digit new adjusted investment share continuing in value, to With and cash consecutive growth. are XXth our healthy efficiencies, our year leverage, XX% shareholder our

the full quarter year numbers guidance. So XXXX I'll turn details with to over the Bob XXXX, and some that, cover behind it and to the for

Robert Hau

Thank you, Frank, and good morning, everyone.

and I'll total and following in along Slide fourth and year, financial on metrics the the performance with on on segment you're cover our our starting full quarter If slides, detail company X. trends

a reported The off featured you free look and if or interest fourth basis, strong quarter or you and Argentina. inflation margin the flow. whether even of in also transitory an capped the on revenue exclude at growth, cash year ongoing organic benefit expansion significant numbers as improved The quarter of

grew while adjusted driven the reflects and X%, growth by revenue strong spread growth Solutions. The company segment double-digit growth these XX%, in Total was Merchant mid-single-digit rates organic growth Financial between currency translation. in

in effects inflation program been have growth would Turista total Dólar in excess of quarter. company the Excluding organic and the transitory XX% Argentina, revenue the

for income share growth of the versus Total was XXX XX%. basis prior an $X.XX, on points earnings XX%. operating an up quarter Adjusted year company adjusted XX.X%, per adjusted of operating the margin increase reached

For Total consecutive organic through revenue the XX%, the devaluation representing growth adjusted of and September X% strength was the an basis, on revenue $XX.X of QX. peso adjusted of growth. in double-digit company between year, Argentine Most fourth our dollar came sharp revenue broader from grew full and growth billion. the rates organic difference organic to year

you For year. raised would quarter to at the the per range, guidance the top year, were exclude been for year. we Argentina, the growth revenue $X.XX our which XX% earnings in was share items last transitory if full of end Adjusted organic every have

impact We and very from the $X.X free the capital payables included flow around $X.X kicked improvement QX. flow was in positive was we processes cash off both and year. and working for Free a improved This that than billion quarter a the expected. cash billion for project benefit strong receivables, sooner

improvement sustained future. this to be the We in expect

and performance starting segment segment, year. on Solutions our quarter was Organic full the to XX% in Turning the XX% revenue for the Slide X. Merchant in by growth

for Argentina, and Dólar program and inflation the the Turista excess Excluding transitory the growth in effects quarter the have XX% XX% of would in organic been year.

the have respectively, X, Turista Small Dólar contribution temporary revenue and included interest we segment Slide growth the which for merchant program, with On payments of company along headwind the currency summary Argentine and excess the inflation both volume in a offsetting from again quarter adjusted organic of revenue XX%, XX% from adjusted the and business devaluation, impacts X%. on was revenue. and and

in pricing reporting. quarter small This QX XXXX XX% the on revenue with and solutions, of volume Clover in full value-added revenue and some $X.X reached in strong Clover billion annualized nearly payment year our spread in business growth hardware targeted line XX% grew sales. actions both value-based XX%. reflects growth

acquiring and XXXX, out VAS its along investing in ISO X in continued Clover traction, year, In package. the and Capital Clover products channel merchant points reaching growth SaaS rolled of gained bank we our X partners by of particularly hardware that driven businesses. continued path in the among per roughly enhanced penetration QX, in growth new XX%

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

from enterprise client, ramping in small in quarter. the large business, the reflects a processing growth which a earnest growth direct also to in Enterprise from benefit organic a fourth QX. Above-average PayFac transitory Argentina with started a included As customer in of

Argentina. the growth of growth of organic transitory quarter client as last the the For XX% as the effects enterprise full and adjusted mentioned year, large we XX% from from well impact PayFac includes ramping

XX% QX add security, than can take Commerce X variety positive BaaS and that momentum analytics, single daily solutions, clients Hub portfolio. XXXX. a its data clients and found Hub over and tenfold continued Hub year, this a routing continue X Hub XXX more integration, Commerce transactions of Bank by average, non-Commerce of including with and up Commerce proportions. products access since roughly fraud API Through to on to we Pay or after We optimization, clients

per For attach Hub is solutions clients, higher, largest Commerce product even our X approaching merchant.

client. processing quarter the X%, relocation organic in of direct PayFac as Enterprise declined reflecting large our a Finally, segment the to revenue partially by

declined flat revenue X%, year, the over full of with Processing expectation term. our medium the For organic growth consistent roughly

expanded in points and basis Adjusted Merchant XX% XXX increased the segment Merchant for XX% income in the to operating the adjusted XX% margin operating year. Solutions XXXX. for quarter

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

X% midpoint Turning to grew the Slide of for of year quarter outlook revenue X% to full and on X X%. Financial at segment. full Solutions the in Organic year, the X% the our

at Digital business by organic Looking the quarter lines. the X% and in year. and adjusted X% the grew each for Payments revenue

bring and XX% the a digital we Warning Growth Early the value pays. clear are option a in offering, at year, as revenue wallet offer Financial strong to newest supporting pays and the This of example Wallet the for Merchant on Fiserv Pays both can the Clover Solutions. is reached Enterprise customers enable Services to and Zelle now integrate banks of We payment platforms. merchant integration and a our

also to to the XXX Many We or Now FedNow for our process. payments, network. FI on in demand seamlessly, existing of real-time enable our for with see integration nearly continue clients with integration thanks our our

organic and with mostly our trend the grew of X% for in in revenue and plastic and X% each the adjusted expectations. X% year. payments quarter organic volume. reflects for and Below the in year, issuing, Banking, In QX growth the the timing quarter in X% grew revenue line

operating the XXX reaching XX% the year, segment improvement. adjusted quarter Adjusted margin a Financial the for up for X% operating was full with for income XX.X%, year Solutions and point basis

in Total on slightly debt tax details XXXX benefits up full XX. green credit discussion our was for lower $XX.X some was of remaining program. billion December on on XX.X% outstanding with than the year. expected came adjusted The let rate effective tax financials. Now wrap me the This our

lower a adjusted in in the X.Xx to ratio bit to line edged targeted debt EBITDA leverage range. with our fourth quarter, Our

$X.X the shares $X.X XX quarter, repurchase had year X% to the for million billion. to at X end shares in a cash our During Average result, for we full million we declined bringing outstanding and year. repurchased return billion, nearly for of authorized shareholders XXXX total remaining as shares the the

to growth. Page $XX.XX $XX.XX, share We're XXXX adjusted our XX% earnings adjusted guidance a full XX% assuming representing range EPS XX. to of year Turning per to to

XXXX, our Our consistent organic from the is at target revenue range end growth last organic guidance in to XX% Argentina of with our the XX% growth year. medium-term transitory of high and contributions excluding

we compared assuming spread. interest is recent contribution and as growth inflation no from X.X% the the strength. U.S. XXXX adjusted excess environment the current is Argentina, to foreign exchange historical in of to in closer will currency end the similar slip are macro average XXXX This program Dólar in XXXX. X% quarter from an peso in revenue forecasted Given in much first impact XXXX. The or in Turista a Since organic devaluation bring and is to to Argentine to expected dollar XXXX growth the

expansion margin we points of XXXX, XXX target ahead operating of our flow prior through is annually free and basis at points expect cash adjusted at outlook billion. our of least basis Our about XXX least $X.X to

Drilling mostly target, strong outlook. $X.X an reach of in revenue XX% as for our XX% including in XX% XXXX, down revenue the by driven segment, in growth organic by to growth billion Clover, see we penetration increase Solutions, vast Merchant to we

verticals X XXXX Mexico by services to geographies: advanced new goals with and and achieve X our in new Australia. Brazil, new functionality of rollouts; ability and and opportunities supported is these restaurant, retail; focused for X Our features hardware we

be modest certain PayFac line, onetime levels average the below Enterprise to We of processing more win. slightly small we benefits Argentina growth to revenues anniversary XXXX. associated the above average normal transitory driven segment expect with see and large strategic by the in segment we as Clover. positive of the should In grow in some following end business line clients the shifts

Argentina year tougher first We to prominently will first second as quarter see last an are in transitory higher of the and benefits impact year. in and compares of more this they of the the reduction the quarter second contributions

adopters of CashFlow parts with revenue embedded Target several growth to and in to as Solutions, migrations X% we X%. business anticipate live with All new we Financial are In XD go and this Central. finance early issuing, organic expected DoorDash, revenue of of with contribute, Finxact Verizon clients,

nature and The growth, digital issuing grow line. given of of slightly ahead a business segment or while the slower at lines payments banking bit than business the should grows average, the

of I we to year. the instructive this guidance, think reasons Several quarterly consider this. be give the don't quarterly towards it's growth Overall, weighted half to the cadence we While for expect year. second

gain from had and we've time new rollouts in XXXX software will First, the to suite. CashFlow late Central Clover product vertical the expect in over traction that market multiple we SMB

and several take had and we go generate will to time Second, that Verizon including in Target expected late revenue, to implement in important wins new live March September.

with in countries pilots fourth new go-to-market X full-scale getting entered we just this efforts the quarter Third, year. underway and

LatAm of lastly, contribution first growth the transitory difficult in a was tough is XXXX. in the highest Turista from and the processing [indiscernible] Argentina year-over-year half And a XXXX, term particularly creating comparison in half from items revenue Dólar XXXX. QX client of onetime first comparisons for

see we full strong confidence growth, organic than half second have revenue drivers the growth. year our while half and So of first visibility we in has better

margin basis higher some to forecasting we year. Lastly, cash expansion on interest are due contribute for Below and of are XXXX and the refinancing to and in ongoing expense the operating a total that least to XXX Both at guidance. adjusted in we Financial see expected points advances. company the this growth Solutions line, Merchant

roughly cash rate spending expect be our ahead should flow. program and tax with XX.X%, effective adjusted share continue we to free repurchase Our of

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

Frank Bisignano

Chamber and U.S. know response guide of Thanks, impacts valuable you Commerce aid of QX, Milton, business the are who Bob. insights in investments partnered In businesses. know small on small recovery. with Helen Hurricane us we providing that of and Foundation passionate Those we the about to

all Small efforts similar undertaking speak, are Angeles Business Los the we Fiserv Index. We on captured the as in in based data

businesses. support this all including created relief fund small We And have offering $XX future address employees the also readily disasters, ground to and to have assistance to million clients our needed. a on and as we clients, of people

to years, named in Last we specifically in This moved is week, proud in Admired last the have innovation, value, Companies. and and quality a was Most are World’s management. investment We're our the higher and I areas product XX and Fiserv X again consistently service highly of which long-term rank to of our of on inextricably are XXth believe measures, quality other gratified ranking, linked.

In single company. that or value the or earned of can even reality, a ranking recognitions multiple we've true our capture

also me technology, assets You've set, of vast clients and unparalleled speak innovative the heard diverse about and unique Fiserv, combination our solutions. and scale, of distribution, deep merchant broad bench presence, product FI global

and of have our proud the as around we sitting very of had I'm the clients, partners investors our the me associates, and the privilege I delivered returns to assets, talent these well Fiserv strong Management and Committee grateful Board, as and to have their years. over with team on who the support, down

Ultimately, down X comes thing. Fiserv's to success

I you to the and construction me endure the be company financial CEO would heard commitments. transcend CEOs. December told short over can that every day and X, over and again, a period working in great of we say time I'd of meet On that it You've a name

later, commitment full to we've give I'll delivered. side Now by you pending with side my Mike can that see working nomination. outcome the X of my months be you

questions. the open please for operator, line now So

Operator

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

Tien-Tsin Huang

Mike, to him have have a ask glad question call, on to of I for the course.

the from an as thought What surprised as you a different course, of your did about what to Fiserv client partner? and you investor maybe what join to at was you to looking I'm it curious your and company? as Just diligence response

Michael Lyons

an My as years, significant company level, I many we you said, work question. company, the Great and back for And client. flow earnings a and hear visible the the at been with long at a see a as did today, performing It's Thanks all Pays. It's to can you. with high as Yes. very, partner, revenue, cash an very as relationship from with both goes obviously Zelle growth. unbelievable and as time. a then investor

lot surprises. a there weren't So of

It's going a in And plan I focus understand to miss side really a make the both There's is strategic plan. we we've don't last I the since big of of it. internally exciting in sure understand of and week, the the the list growth have the terrific been opportunities of that business franchise. the I believe long with and we execution beat priorities. firmly place. that team, business. financial our on merchant a side the hard on

potential X set that scope appreciation opportunities it's that's across platforms on we here. a the ability there's probably -- have, that still probably of the last and had opportunity and The unparalleled international that, I've of an potential the also the in to if surprise. early, is days, cross-sell X anything full of I gotten What was

talent into and of especially on only a had incredibly by been the then I've innovation, impressed days, I deeper And again, innovation. it's the amount spend but the -- X over team have people chance to time focused organization, the with

them XX,XXX excitement have of about most their future. reached talked You for out who the engineers, and expressed

evolving we've And And and is XX XX unparalleled. even X our exciting or an got had and days help navigate have ability to or over world the last X against client payments both incredible meetings, them clients.

have we I So stuff, as obviously, high-level more said [indiscernible]. go

Operator

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

Darrin Peller

but congrats. I Mike, growth been we'll welcome. been sustainability with outstanding. mean, And it's start of a while, Clover, I guess just has the off

next I kind enough that of targets. you nuanced needs that keep which it what know line blocks at afloat remind at into you to building can even of the to more comps, against year, that And trend level, meet so your expect be when the us just look

to in new the then just direct sales sustainability? once blocks markets, what going to build And you and just thinking of is how terms that have that cross-sell, the of new when considering So revisit maybe in international again the contribute?

Michael Lyons

enthused start I Maybe then -- the Brazil. I take about I in of spent from the right? efforts. and business has with told how all, so Brazil was in with it, back and Brazil. to Yes. launch so I [indiscernible] I'll I on President the small He was like way time President going guess, my doubt, was I'd then you no

all So you coming go Mexico, online. Brazil, Australia,

think time. She the got in the She's Black ADP we ago, partnership, spent year We opportunity. opportunity. leader. a a I saw fabulous the maria saw

when think to to about back about -- a of a kind We You front X,XXX it's I talk saying, bringing think hell opportunity talk That's the of with book. a us and that nearly let's mean the you of what continue. about but these other to attach love ADP's book gives book, management, this back expense suite CashFlow old FI it partners, integrated back we're want we -- XD, unbelievable book. SpendEnd, about right? all -- tools, it was I Central, new. just

the heavyweight -- the on top ABV, night, we say whether Mike XX champion I. always it's at world partner great We we're and with partnership, were choice, it's bank the last as think I whether

So increase demand FI And every partner. think we're partner, in to tools I super high. building FI is penetration every

Central, at rolling you we X bringing the management, a And out software management, products. website we're did that then out, things look it great capital. CashFlow rolled in, new more all employee besides We new more more

and that's and we're break we're gas how of kind this, love and So it. on all no baby, playing it

but all there's Mike make the to Mikey. That's just break, make We're me. merger Everybody is statement. the than team. will fully going -- to a better pandemic here. and and pivots be loves crushing better make than including I not for so I it. not no rethinking, no reasons, integrated a XX gas, save going He's going like I me statement. on not it, And everywhere. a I'll he's

Operator

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

Timothy Chiodo

and Financial Mike And certainly mentioned of congratulations well. DoorDash, Solutions pipeline year, you to as so opportunities. finance contract and acceleration a other supports big in the On this

a you bit little that. could that acquisition about hoping So and the how I talk that plays PayFare into was

smaller pipeline. but previously, RFPs, brings I in for and about that revenue, on management it help the of might Fiserv have capabilities around and not talk with means your with program now only Maybe particularly also that program the managers some clients those you gather comments you this those help existing was working light you third-party just what in-house. of

Robert Hau

rapidly very we just That's accelerating Bob. you're Yes, up quite feel ramp for our position Tim, question. mark. going few full well. landing DoorDash a great about with months. Thanks a it's getting to on and in the the Obviously, right And

Program management additional and PayFare embedded do of add good around clients. we finance We a bring parties. closed, DoorDash with us capability and transaction the That capability we in-house. is to is that partner the aspect. a to certainly will that like with It's of program overall yet We overall that some part that's some combination with have. feel third not but

great within client to that's really shop what another think And continue think wholly to need, for there's We feel grow company assets why to clients. space in all we finance available own us us. if DoorDash that a the an those you we're about has position embedded serve think and our really like don't would we see selected why that

Operator

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

Harshita Rawat

GPV your network. growth? can Bob, growth you continuation comments in the trends? decelerated December a bit. quarter? Are you in Clover kind in some what And separately, We've and also Mike. the Congratulations, seeing by saw fourth the you acceleration little It upon talk seen U.S. about can volume expand then of January you of

can and you growth us there. So U.S. on the comment for versus dynamics unpack maybe international if

Robert Hau

our off certainly obviously, Sure. line in into categories. quarter, to we as that about I well discretionary the also. and from breadth do lot serving A nondiscretionary benefit spending of well having remain that, the as And first experiences. in capability, talking X folks would resilient. overall expectations Consumer start days obviously, from good participate consumer of We standpoint. an say to with continues a what, we're

as So very generally and broad about our that verticals see world, on on we distribution much ability leveraging and the we to bit. good Obviously, nicely a lower. serve. seen and we've of XXXX, a on channel going continue quite going outlook ease just a consumer talk variety Or spend going grow feel that our see FX 'XX prepared in in is remarks [indiscernible] you in to

volume play of a FX. into it course, That, We for don't does volume. adjust that That is reported number.

that and inflation that the in to We to now talking as dynamic saw levels. down looking and also it that rate returned has more not XXXX, we in Argentina in interest adjust for about normal XXXX don't forward

continuing the to Thanks, the get going. and bottom we good similar we where quarter feel in fourth with are. So Harshita. saw excited year line, is trends January about

Operator

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

David Koning

in and that et does Verizon, When target about kind that fall I to that in product maybe And Solutions up? issuer And bit. guess little? then year. my in a a cetera, that? strong Great I reaccelerate QX, Financial QX, guess, talked revenue of that's little it why within Yes. Is XXXX slowed is does hit -- was really question because that slowed, Solutions, pick when you like issuer that Financial was

Robert Hau

that's some issuer probably that in Renton quarter, I and fourth the attribute you overall space. the the that's Overall, And saw environment. Yes. plastic volume think saw slowdown space, reports, business would tied to credit I where our particularly slower in

we see in September. late Verizon that project large the coming we've fruition past For in talking on very is Target come product, next come in XXXX, And will other in, Desjardin, first late to for March. quarter, in that about been will year, actually the XXXX.

late second year, So the benefit ramps [indiscernible] the it half obviously, that we'll quarter. as of into see and fourth as Verizon an uptick the March, us throughout will

Operator

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

Dan Dolev

year. Great Frank. results. Great Congrats again,

network maybe from So would can pay. partnership? Walmart this little using observations we and strategically to the exciting, very Like conversations there things, about all your people the envision really do a these Any FedNow you change bit way be actually talk Now early and how helpful. your

Frank Bisignano

XXXX, other at and and tremendous I thinking mean Walmart, partnership. And multiple in about data providers a had I was first macro. the things. the got point, take that Let's we've

on doing more we I service on -- what's Walmart and talk financial believe continue at one going GV hear mean about them. able are which We running Finxact, to us on. with their Finxact I look you us of that

client on. You there see as First Rand a coming

So sits we in we extent extraordinary relationship. that a relationship. have Remember, team to an have I continue an that's mean of that right? Venting,

executive of understand We owned We payments all inside and out meet it. obviously might with meet understand who our also. Walmart -- clients I charge the of leadership the time. have my in one

side-by-side working in with their we're things partnering way before with client generally the strategic certainly, we're of really And a line with our our them rollout. focused pens generally initiatives Walmart to clients. or selling on any on a clients. We're have And to they clients up our Fintech, initiatives are space

I So them about say a can't enough I mean as client.

client from we our somewhere mean I'd bank in bank But or it the base small a -- could community base no, unparalleled, go right? could and is to client say good community America. I be a even

them. structure we relationship why have a We in XX-year we do, we It's believe Walmart's we lots management. with have strongly a of partner relationship. them. why of coverage And

And a So can't initiative, mean, asking. -- superior about Thanks client. I for and and partner. we relationship. one They meet great client. and it's want they about are service. strong about client. they I -- product deserve it's fabulous don't one Great not they're also But it's not superior a And

Operator

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

Jason Kupferberg

Frank. Congrats, wanted Clover. ask Mike. Congrats, I to on

the maybe that down that Bob, And bit. widen Just, revenue was And may then talked the mentioned you I spread contribution hardware VAS out you sales. little a on XXXX? in volume to you between could spread did growth. those the any the pricing how the the know break and I X? It evolve about thoughts penetration, among hoping

Robert Hau

Jason. Thanks, Sure.

new where standpoint. a saw expand. XXXX, we I We'll we uptick we Hardware, nice think cetera, improve, in you see points VAS drive Clover the participated that expected that ranking of certainly in into Pocket, had just are helping fact Kiosk, all the Flex growth from penetration. that rolled the pieces VAS the very given is the in XX% where XXXX, year. a X hardware. a X Good that previous list to space, actually hardware, over continuing et continue overall, we out in

from more also forward. giving mix an Clover from a capability. is standpoint, great investing more the in us going seeing We're direct institution that overall uptick opportunity in clients financial And then

Operator

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

James Faucette

excited to offerings. Mike quickly the to new with to We're with financial of should out? these see about financial watching a for be your the and for those. Congrats and should new But the And what businesses we expenses go-to-market Frank. ask support lot operating to lot like how to think on attractive what implications about wanted of wondering as those, small for seems pretty start go-to-market partners engage we your further kind points about proof of a partners I are? roll It engage offerings. potential

Frank Bisignano

sales our we to think, obviously, force, We And Yes. when our force. all add we're lay we right? sales adding to to out, this Jim, love

that's So positive. a real

world-class have also We distribution.

structured very, a and deal true. to to tried So been get our very with partners our ability way product we out, have that's

channel coming as distribution really much new. say, -- what's to we just partners, and we a it back We're Clover, got how right? right? Like had distribution also distribution across that a with at feet to distribution is like add Start year. was And old board. to people, capability, we're capability of more adding street this more digital using than sales. our more going Obviously, on the have year the we distribution last So sales

whether partners it's technical but to sounds of lot bank good on right? of technically things And help very these revenue want a it's is job, incident. doing because integration. a it's We're -- that, deep So to more all ultimately, like A ADP there I a have our CashFlow it is integrated. lot lot, Central, think or for

ADP, growth, about to All about to think Central think ADP, them. So is partners, you Clover deeply you when it street. on products. love We're feet these Bank sharing Everybody when think adding revenue would integrated. incented CashFlow revenue these the partners you about the our because grow are agreement. growth, technically it's

really technically new integrated So there, than nothing before. except ever more

Operator

our come Ramsey And will final from from question El-Assal of line Barclay?

Ramsey El-Assal

actually in material subscription us it become volume, latest fee? fee, thoughts, just to you, P&L? give to when nice Will you gain CashFlow price Frank contributor it understand to thing? over us the momentum Central. you bps Could model phone. on enough XXXX? And will the fixed be I Mike, about also of your wanted do the to Bob, a sort felt ask help there? Is How or And economic meet the on

Frank Bisignano

mean Meaningful and revenue. in a of well, meaningful. at a going company are the how be variability to clients expect $XX-plus on half billion this second people But has year, be of we to looking online lot in

it's more has meaningful, thinks about durability. 'XX, in not long-term 'XX. like But way sustainability, a sit [indiscernible] meaningful you think I this a

that, -- is that grow believe we're And under ability we're he's And continuing a like I TAM to because a all when can most ago. I, as opportunities. you Mike our the because talk. long We hood X around day. the doing we And targets to and -- this said to of time add we long total and as what with for to sit just him in time much out consume, we of ago company part laid continue as this can we

look we're heard at from opportunity. an the management and through that's It's the sat on that's on words -- half. So we have all-day think that plans hope Mike, consider why of land I it, language, post numbers in come my the up in you'll not to own when I -- opportunities, to then go you Xst to when second growth the Monday, always And he specific see think run opportunity, in to so we I -- helpful. meeting we're his right, you and And and meaningful, 'XX. post. numbers starting would it's question, limited business in -- I on last a the able to many drivers. and

So for attention your thank today. you

day. But can of I'm earlier, Mike me I'm it saying let I'll not. I team. side Have a to side. now. talk by And be but all I to to hope They are great our you. say call like until I IR like won't You Bye. say, and that here

Operator

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

Fiserv (FI) 5 Feb 252024 Q4 Earnings call transcript