Fiserv Inc at Mizuho Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : So yeah, maybe let's just start with some questions for you. You know, we're hearing in mid-June. What do you think the consumer looks like today? Like what's your view of the macro environment and the health of the US consumer versus, say, a couple of months ago?

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Thank you. So good news I guess. And let's maybe shift gears quickly to Clover. I mean, this has been a master stroke on your end. Nobody really believed it, I've been covering First Data for a long time. I remember in 2016, people were making fun of it, today it's considered -- it's considered literally the best in class share gain or US point of sale, you see it everywhere. I saw it in Europe by the way, I was in Europe a couple of weeks ago, I saw it everywhere in Germany, et cetera. What gives you the confidence that Clover's growth is sustainable. It's been amazing. And particularly in the context of achieving your medium-term target of north of $4.5 billion Clover revenue by 2026.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Yeah. Yeah.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : I remember that breakfast very vividly, basically every hedge fund centre delegate goes to your office. And I think the stock was up 5%. It's (multiple speakers) confident out of that breakfast in terms of than we were this literally changed my perception of Fiserv. It was a good move.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : (multiple speakers) covering pest control a little bit. You know the bugs that keep up multiples. If you don't read the journal and you don't --

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : At the end of the day--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : I think it's (multiple speakers)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : We did every -- now there -- yeah, this is -- yeah, we did everything anymore, but in Uniform Rental and whatever, right. So this was -- it's definitely much more focused now and we made our choice to stick with payments. So yeah, maybe just to talk (multiple speakers)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Well, Sean does because Sean and I work together. And so does Ryan. Ryan--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : People. Pest control and day school. What else do we cover?

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : No, it's okay.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : No, we've had some fun covering those names in Aramark. We covered like every dysfunctional company (laughter)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : They can. No, no, no. Now we cover -- my -- this is -- it's -- you know you have a good when you worked at a different Japanese Bank and now we're working at a very good one. So you now have (multiple speakers) very good now. So maybe just really quick you mentioned distribution, Frank. This is obviously one of the biggest strengths of Fiserv. You've got epic distribution capabilities. Maybe -- I don't think the audience appreciates what makes the distribution so effective and how big of an advantage it is when you're competing with good quality products like toast, but just they lack the distribution that you have.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : That's a nice way.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : And yes, and it works and it's (multiple speakers)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : What are (multiple speakers)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : And no, it's been amazing. And maybe just the last one on this topic quickly on you've been -- you've mentioned recently that you want to get into new verticals. What are the most interesting verticals outside of restaurants that you can think of for Clover?

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Yeah, so more to come from vertical. Maybe one more question and we'll open to Q&A because I think we started -- the clock was still standing so.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Thank you. So I want to --

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : (laughter) For me, you're number one, so don't worry (multiple speakers)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Always.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Always, always. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 1:15PM, FI.N - Fiserv Inc at Mizuho Technology Conference Like the -- if I think about the main -- one of the main pushbacks have been Argentina, it's about 6% of merchant, I think. And there has been some -- I would say there's -- if investors are picking on something, they're picking on Argentina inflation. Maybe we can -- you can shed some light on like where we are in terms of that. What is -- how important that business is for Fiserv? And how does inflation play (multiple speakers) the growth there because that's what where (multiple speakers)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : So the presence and the share gains in Argentina are more important than transitory. There's (multiple speakers)-- without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 1:15PM, FI.N - Fiserv Inc at Mizuho Technology Conference

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Let's go there, let's go there.

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Obviously, a hedge fund [darling] that the Argentina inflation, I would say, like our conversations with [local] investors. They see through that so you kind of know what people are paying for. Maybe just really quickly the question for Frank from the audience, anyone has anything?

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Where is the -- maybe question -- maybe last question on my end. There's nothing for Frank, just on capital allocation, like where is -- you've made the partnership with Melio from Israel, B2B Corporate Payments, is a big focus like where does -- where is the -- where do you see Fiserv in two to three years in terms of the big focus now that you've basically won retail and merchant service? It's very clear (multiple speakers)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Good. Well. Frank, thank you (multiple speakers)--

Question: Dan Dolev - Mizuho Securities USA LLC - Analyst : Yeah, of course.